Commerce 2005 Jamb Examination

In a CIF (Cost, Insurance, and Freight) contract, risk passes to the buyer once the goods are shipped, but ownership or property does not pass until the shipping documents are transferred, ensuring legal transfer of title.

A partnership can be legally dissolved under certain conditions such as the bankruptcy of one partner or the business. Bankruptcy terminates the legal entity and ends the partnership.

In a sole proprietorship, the owner bears unlimited liability, meaning personal assets can be used to settle business debts. This is a major disadvantage compared to corporations.

Production fundamentally involves transformation—converting raw materials into finished goods or services that satisfy human needs.

During a merger, the acquired firm often receives a premium—an amount above the market value—to compensate for its assets and goodwill.

Occupations are generally classified into industry, commerce, and services based on the type of economic activity carried out. Industry involves production, commerce deals with trade, and services include activities that satisfy human needs without producing tangible goods.

The Nigerian Telecommunications Limited (NITEL) is a public corporation owned and operated by the government to provide telecommunication services to the public.

An engineer working for the government provides an indirect service to the public. Though the engineer does not directly serve the consumer, the work supports services and infrastructure that benefit society.

The advertising process informs potential customers about the availability of goods and services using various media such as newspapers, radio, TV, and online platforms.

Foreign trade requires specific documents to facilitate transactions. Key documents include: invoice, shipping note, bill of lading and freight note, which handle orders, payment, shipment, and record of goods.