The wholesaler performs the following function except
Breaking the bulk
Offering credit facilities to the consumers
Financing manufacturers
Buying in bulk from manufacturers
Correct answer is B
Wholesaler performs the functions of collection and storage of goods, distribution, financing and risk taking. Wholesalers do not offer credit facilities to the consumers.
In order to stabilize oil price in the world market, there is the need for OPEC members to
Always have budget deficit
Encourage competition among themselves
Adhere to production quotas
Fix the price of non-oil products
Correct answer is C
One way OPEC members can work towards stabilizing prices of oil in the market is by obeying production quota set by the organisation. A production quota is a goal for the production of a good. By obeying the various quota set by the organisation, the market can be controlled and prices stabilized.
Quotas can be set high to encourage production, or can be set low and used to restrict production to support a certain price level.
Which of the following is obtainable in a perfect market?
P = MR > AR
MP = MC > P
MR < P
P = MR = MC
Correct answer is D
In a perfectly competitive market, the firm's demand curve is the firm's marginal revenue curve. The firm maximizes profits by producing where MR = MC.
A country's balance of payment is deficit when
A country's payment for imports of visible goods are greater than her receipts from exports of visible goods
The total receipts from her exports of visible and invisible goods are greater than her payments for visible and invisible imports
It can record a surplus on current account of her balance of payment accounts
The total payment for visible and invisible imports are greater than the total receipts from her exports of visible and invisible goods
Correct answer is D
A balance of payments deficit means the country imports more goods, services, and capital than they export. These goods and services could be visible or invisible.
One advantage of the Sole Proprietorship over other forms of business organization is that it can
Make very high profits
Employ many workers
Keeps its affair private
Produce on a very large high scale
Correct answer is C
Sole proprietorships have several advantages over other business entities. They are easy to form, and the owners enjoy sole control of the business profits. This system of business organization also enjoy privacy. Since it is a one man owned business, Its affairs remain private and are not mandated by law to publish its business transactions publicly.