Business Management 2005 WASSCE-Past Questions and Answers-WAEC

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General Overview

WASSCE 2005 business management question by Educareguide is the preferred management ebook for many students. It has assists students to gain admission to business management University of their choice. Indeed, if there is any business management classes you should attend to gain a business and management degree, then this website is your preferred choice.

Though business management past questions and answers pdf will soon be available for download. Nevertheless, this business management studies material is very important in your ambition to pass any business management schools exam, including the WAEC BM paper. Certainly, excelling in business management programs will be much easier when studying for your degree in business. 

Furthermore, business management colleges that award business management  certificates are always delightful to admit students who study business management subjects lists. Truly, our site helps you with strategies on how to pass your business management examination. Secondly, we have materials on business management major topics, sub-topics, etc.

Therefore, our site is very helpful to Senior High School – SHS Students across the West African sub-region and the globe. Notably, some of these countries are Nigeria, Ghana, Sierra Leone, The Gambia and Liberia.  Also, students in Europe use our business management study manual for exam success. Specifically for this paper, check the questions and the answers just below.

 

The Nature of the Examination – Business Management 2005 WASSCE

There are two Papers in the examination, (and these are Paper 1 and Paper 2).Paper 1 is an Objective Test and Paper 2 is a written theory paper. There are 50 questions in the Paper 1. Finally, there are 10 questions in the Paper 2. The 10 questions is made up of 1 Case Study and 9 other questions.They are asked to tests the student’s general understanding of the various topics under business management. I must emphasize that, in order to pass your WASSCE questions with good answers, you need to practice critical thinking. This is because, some of the questions are tricky.

 

The Summary of the Paper – Business Management 2005 WASSCE

The WASSCE Business management Paper for 2005 can summarized below:

  • 2005WASSCE Business Management Paper One
  • 2005WASSCE Business Management Paper Two

 

Business Management 2005 WASSCE – Past Questions and Answers Paper 1

 

Let me show you how to find the answers to the Business Management Questions – Paper 1. To clarify that, when you read a question, just click on this symbol (˅) that follows the question. After doing so, the answer will drop down for you. In fact, it is a very simple task. However, for the purposes of evaluating yourself, you may want to answer the before reviewing the suggested answer (or solution)

 

  1. A person who is engaged in the formation of a company is known as   
      C   is the answer -Business Management 2005 WASSCE   
    1. an organizer.
    2. an initiator.
    3. a promoter.
    4. a director.

 

  1. The right to give orders and the power to exact obedience is referred to as   
      A   is the answer -Business Management 2005 WASSCE   
    1. authority
    2. power
    3. command
    4. responsibility

 

  1. The first process of rational decision-making is to   
      A   is the answer -Business Management 2005 WASSCE   
    1. identify and define the problem.
    2. gather information.
    3. select and implement the best alternative.
    4. analyse the problem.

 

  1. The process of determining the objectives of an organization and then guiding resources towards the successful achievement of those objectives is referred to as   
      B   is the answer -Business Management 2005 WASSCE   
    1. controlling
    2. administration
    3. directing
    4. management

 

  1. The association of two or more persons for the purpose of carrying on any business for profit is a   
      C   is the answer -Business Management 2005 WASSCE   
    1. co-operative society.
    2. limited liability partnership.
    3. company
    4. public corporation.

 

  1. Small-scale businesses fail as a result of   
      B   is the answer -Business Management 2005 WASSCE   
    1. high degree of bureaucracy.
    2. lack of managerial skills.
    3. the possibility of corruption and embezzlement.
    4. poor service to the public.

 

  1. Management as a science deals with   
      A   is the answer -Business Management 2005 WASSCE   
    1. collecting facts and data.
    2. planning and controlling.
    3. organizing and commanding.
    4. handling organizational issues.

 

  1. Many entrepreneurs decide to enter into sole proprietorship because of one of the following:   
      C   is the answer -Business Management 2005 WASSCE   
    1. the nature of the business.
    2. collective decision-making.
    3. profit motive.
    4. risk-sharing.

 

  1. Decentralization in organization refers to   
      C   is the answer -Business Management 2005 WASSCE   
    1. a type of committee made up of senior management personnel such as managing directors.
    2. proper arrangement of offices to ensure free movement of employees.
    3. disposal of authority and power to ensure effective utilization of an organization’s resources.
    4. the recommendations to management on affairs of government.

 

  1. Flat organizations have few authority levels and tend to be centralized with   
      B   is the answer -Business Management 2005 WASSCE   
    1. narrow spans of control.
    2. wide spans of control.
    3. long chains of command.
    4. proper delegation of authority.

 

  1. Which of the following involves the assignment of duties by managers to their subordinates?   
      C   is the answer -Business Management 2005 WASSCE   
    1. Controlling
    2. Planning
    3. Organizing
    4. Directing

 

  1. In everyday business activities, the supervisor who issues instructions as to what should be done, how it should be done and when it should be done is   
      D   is the answer -Business Management 2005 WASSCE   
    1. controlling
    2. supervising
    3. organizing
    4. directing

 

  1. The purpose of continuous stock-taking is to   
      B   is the answer -Business Management 2005 WASSCE   
    1. avoid individuals interfering with counting.
    2. avoid closing down for stock-taking.
    3. hold large stocks.
    4. avoid laziness among workers.

 

  1. When a business organization donates a bus to a school during a speech and prize-giving ceremony, what gesture is being demonstrated?   
      C   is the answer -Business Management 2005 WASSCE   
    1. Generosity
    2. Wealth to the public
    3. Social responsibility
    4. patriotism

 

  1. What channel of communication is used when the Head of Human Resource Management communicates with the Head of Finance in an organization?   
      C   is the answer -Business Management 2005 WASSCE   
    1. Vertical channel
    2. Diagonal channel
    3. Horizontal channel
    4. External channel

 

  1. Communication is effective when   
      A   is the answer -Business Management 2005 WASSCE   
    1. the information conveyed is fully understood by the recipient.
    2. there is coincidence of thought by both parties.
    3. the managing director gives orders to subordinates.
    4. the message contained in the communication is backed by law.

 

  1. The actual risk which is being insured against and for which indemnity is secured is referred to as   
      A   is the answer -Business Management 2005 WASSCE   
    1. proximate cause
    2. indemnity
    3. subrogation
    4. insurable interest.

 

  1. Which of the following is not a source of government revenue?   
      A   is the answer -Business Management 2005 WASSCE   
    1. Factoring
    2. Taxation
    3. Corporate profit
    4. Borrowing

 

  1. Which of these management functions refers to the creation of an environment which will induce employees to contribute to organizational and group goals?   
      C   is the answer -Business Management 2005 WASSCE   
    1. Organizing
    2. Controlling
    3. Directing
    4. Planning

 

  1. The situation where a manager is to select one course of action from two or more alternatives is known as   
      C   is the answer -Business Management 2005 WASSCE   
    1. motivating
    2. controlling
    3. decision-making
    4. performance

 

  1. Who is a del-credere agent?   
      A   is the answer -Business Management 2005 WASSCE   
    1. One who bears responsibility for the liability of a third person whom he brings into contractual relationship with the principal.
    2. A mercantile agent who takes possession of goods, sells them, and also has a claim for lien over the goods in his possession.
    3. An agent who sells goods by auction where the public is invited through notice.
    4. An agent who is engaged to make commercial negotiations for a commission referred to as brokerage.

 

  1. The tax that is imposed on locally manufactured goods is   
      D   is the answer -Business Management 2005 WASSCE   
    1. customs duty.
    2. capital gains tax.
    3. income tax.
    4. excise tax.

 

  1. Which of the following insurance policies covers the duration for a ship on the high seas?   
      A   is the answer -Business Management 2005 WASSCE   
    1. Voyage policy
    2. Time policy
    3. Cargo policy
    4. Ship owner’s liability

 

  1. Which of the following enables an employee to develop himself for higher output?   
      A   is the answer -Business Management 2005 WASSCE   
    1. Undergoing in-service training
    2. Staving on after close of work
    3. Assuming higher responsibilities
    4. Showing greater loyalty

 

  1. The process by which department and branches are allowed to take decisions and implement them is known as   
      B   is the answer -Business Management 2005 WASSCE   
    1. delegation
    2. decentralization
    3. departmentalization
    4. centralization

 

  1. Shareholders are the owners of a   
      A   is the answer -Business Management 2005 WASSCE   
    1. company
    2. sole proprietorship.
    3. co-operative society.
    4. limited liability partnership.

 

  1. Which of the following is not a function performed by a computer?   
      A   is the answer -Business Management 2005 WASSCE   
    1. Generating data
    2. Sorting data
    3. Receiving data
    4. Retrieving data

 

  1. The process of introducing a new employee to an organization and its activities is called   
      A   is the answer -Business Management 2005 WASSCE   
    1. induction training.
    2. apprenticeship training.
    3. supervisory training.
    4. employee training.

 

  1. he summary or synopsis of all the basic tasks to be performed on a job is referred to as   
      A   is the answer -Business Management 2005 WASSCE   
    1. job description.
    2. job analysis.
    3. job evaluation.
    4. job specification.

 

  1. Which of the following is not a function of Human Resource Management?   
      D   is the answer -Business Management 2005 WASSCE   
    1. Training and development
    2. Selection and recruitment
    3. Welfare and safety
    4. Paying wages and salaries

 

  1. Which of the following best describes job specification?   
      A   is the answer -Business Management 2005 WASSCE   
    1. The qualifications that the job holder must possess
    2. Definition of the job and the duties therein
    3. Responsibilities involved in the performance of the job
    4. The general working conditions

 

  1. Trading between two countries is known as   
      C   is the answer -Business Management 2005 WASSCE   
    1. retail trade.
    2. wholesale trade.
    3. international trade.
    4. bulk trade.

 

  1. One of the following is an effect of inflation:   
      C   is the answer -Business Management 2005 WASSCE   
    1. Goods and services are easily obtained.
    2. The market is flooded with more goods than are needed.
    3. Quality is sacrificed for quantity.
    4. Traders enjoy government subsidies.

 

  1. An open cheque is one which   
      A   is the answer -Business Management 2005 WASSCE   
    1. is drawn without any special instruction.
    2. cannot be cashed across the counter.
    3. does not show the drawer’s signature.
    4. is cashed through an account.

 

  1. Which of these functions is not performed by a marketing manager?   
      D   is the answer -Business Management 2005 WASSCE   
    1. Conducting market research
    2. Determining what to produce
    3. Advertising products
    4. Recruiting for the marketing department

 

  1. Which of the following is not a feature of the final selection process?   
      D   is the answer -Business Management 2005 WASSCE   
    1. Follow-up
    2. Medical examination
    3. Background investigation
    4. Aptitude test

 

  1. A seller’s market is a market situation where   
      D   is the answer -Business Management 2005 WASSCE   
    1. sellers always want to maximize profits.
    2. supply is always greater than demand.
    3. demand is always equal to supply.
    4. demand is always greater than supply.

 

  1. The selection of advertising media is based on the   
      D   is the answer -Business Management 2005 WASSCE   
    1. company’s location.
    2. competence of staff.
    3. demand for the product.
    4. market dispersal.

 

  1. Who is said to be the last link in the channel of distribution?   
      B   is the answer -Business Management 2005 WASSCE   
    1. Wholesaler
    2. Retailer
    3. Consumer
    4. Manufacturer

 

  1. What is branding?   
      A   is the answer -Business Management 2005 WASSCE   
    1. Means by which almost similar products are differentiated
    2. Marketing practice which gives protection and durability to products-
    3. Grouping which is made up of different types of customers and consumers
    4. The practice of looking at the business through the eyes of the consumer

 

  1. The practice of dividing a total market into distinct groups of buyers and sellers with different characteristics is known as   
      B   is the answer -Business Management 2005 WASSCE   
    1. market targeting.
    2. market segmentation.
    3. market positioning.
    4. market segregation.

 

  1. Under which condition can a cheque be said to be stale? The   
      C   is the answer -Business Management 2005 WASSCE   
    1. cheque has a huge face value.
    2. drawer dies before the date of maturity.
    3. date on the cheque has lapsed for more than six months.
    4. cheque is post-dated.

 

  1. Which of the following is a source of recruitment of staff?   
      D   is the answer -Business Management 2005 WASSCE   
    1. Open market place
    2. Libraries
    3. Forex bureaux
    4. Universities and schools

 

  1. In promoting an employee, which of the following is considered?   
      A   is the answer -Business Management 2005 WASSCE   
    1. Qualification and ability
    2. Regularity and appearance
    3. Loyalty and friendliness
    4. Availability and desirability

 

  1. One basic aim of marketing is   
      C   is the answer -Business Management 2005 WASSCE   
    1. profit-making.
    2. provision of vital information.
    3. good customer-trader relations.
    4. effective communication.

 

  1. A strategy to cope with competition by selling the same products to different buyers at different prices is referred to as   
      B   is the answer -Business Management 2005 WASSCE   
    1. skimming pricing.
    2. price discrimination.
    3. penetration pricing.
    4. psychological pricing.

 

  1. The process of making goods and services available to the consumer in the most efficient and profitable manner is referred to as   
      B   is the answer -Business Management 2005 WASSCE   
    1. production
    2. marketing
    3. transportation
    4. advertising

 

  1. Which of the following is not a function of marketing?   
      B   is the answer -Business Management 2005 WASSCE   
    1. Transportation
    2. Search for credit facilities
    3. Dissemination of information
    4. Product identification

 

  1. Goods are moved from the producers to the final consumers through   
      A   is the answer -Business Management 2005 WASSCE   
    1. channels of distribution.
    2. promotional activities.
    3. ancillary services.
    4. appropriate pricing.

 

  1. Which of the following is the first step in the staffing process?   
      D   is the answer -Business Management 2005 WASSCE   
    1. Selection
    2. Recruitment
    3. Job analysis
    4. Human resources planning

 

I’m sure you are going to evaluate your performance with regards to the objective questions above. Let me emphasize again that the answers to the objective questions can be found by clicking on the symbol (˅) just after the question.

Now let’s proceed to the Paper 2:

 

Business Management 2005 WASSCE -Past Questions and Answers- Paper 2

 

This paper a case study and nine other theory questions. Please read the case carefully before attempting the questions. As I have always,said, this Business Management questions and answers needs critical reading and understanding of the questions, most especially, the case. As I have always said, it is better to first answer the questions on your own before referring to the answer from the drop-down symbol.

Let me show you how to find the answers to the Business Management Questions – Paper 1, Section B. When you read a question, just click on this symbol (˅) beside it, and the answer will drop down for you. It is a very simple task.

 

CASE STUDY

Read the following case and answer the questions that follow:   

TWO BROTHERS COMPANY LIMITED

John had been in the employ of Two Brothers Company Limited for thirteen years. He started as an Accounts Clerk and, by dint of hard work and dedication, rose through the ranks to become a Principal Accounting Officer. Just a month after his last promotion, the Chief Accountant was dismissed for misappropriating funds. John was appointed to act as Chief Accountant. He held on to this position successfully for two years

In the middle of his third year as Acting Chief Accountant, the company advertised the position. Believing that he qualified for the post, John applied. However, the company went in for Sammy, a fresh university graduate with a professional accounting certificate. Sammy was put en probation for one year and asked to understudy John, to take over if he was confirmed. In the probationary period, Sammy introduced the newest method of preparing final accounts. It was tried and found acceptable.

The probationary period passed but no letter of confirmation was issued to Sammy even though he had performed his job creditably. Sammy saw himself as confirmed and asked John to hand over to him but John would not, insisting that the directive should come from management.

Meanwhile, neither of them would take instructions from the other, resulting in friction and delays. Things worsened to the extent that John had to lodge a formal complaint with management. On receipt of this, management called a meeting to resolve the impasse. Before this could be done, however, Sammy put in his resignation and left.  

 

1.   (a) Why did Sammy see himself as confirmed even though he had not received a letter to that effect from management?

Solved Question:   

Sammy saw himself as confirmed because he served his probation period creditably without any complaints leveled against him. Thus by the labour Act, 2003(Act 651), he automatically becomes confirmed whether his employees confirm him or not.  

1.   (b) What should management have done to avoid the tension that developed between Sammy and John?

Solved Question:   

Management should have written to both of them, confirming Sammy’s appointment and instructing/ directing John to handover to him.  

1.   (c) What should Sammy have done at the end of his probation when management failed to communicate with him?

Solved Question:   

Sammy should have written to management reminding them that he had ended his probation.  

1.   (d) State two benefits each the company would derive from:

  • appointing John as the Chief Accountant
  • appointing Sammy as the Chief Accountant

Solved Question:   

    1.  appointing John as the Chief Accountant
  • He is more familiar with the job, the people, the culture and business. He may require little or no training.
  • In terms of recruitment, less cost will be incurred.
  • It is cheaper, quicker, less risky, and less time consuming.
  • It will boost the morale of employees and encourage them to work hard.
       ii.  appointing Sammy as the Chief Accountant
  • The company will benefit from new knowledge and new ideas.
  • The company will benefit from the services of a qualified and suitable person.  

1.   (e) Which management personnel would normally have the responsibility of confirming the appointment of the Chief Accountant?

Solved Question:   

The Chief Executive Officer/ The Managing Director.  

1.   (f) Explain two demerits of filling a vacancy with someone from outside an organization.

Solved Question:   

  • It is costly and time consuming.
  • It leads to low morale especially where there are qualified people within the organisation.
  • Lack of familiarity with organizational culture.  

 

2.   (a) What is a Certificate of Incorporation?

Solved Question:   

Certificate of Incorporation is a certificate issued by the Registrar of Companies to certify that the company has be born legally and can start operations. Thus, upon receiving this certificate, the new company has come into existence, and assumes the state of a legal entity capable of suing and be sued. It states that a company has been properly registered and is thereby entitled to trade. It serves as a “birth certificate” of a company.  

2.   (b) Explain any four benefits that may accrue to a Public Limited Liability Company when it is incorporated.

Solved Question:   

  • It is recognized as a legal entity separate from the individuals who own it. Therefore, it can sue and be sued. (By registering under the Company Act with legal formality, a company protects its shareholders and directors.)
  • When a company is incorporated, it can raise large amounts of capital through the issue of shares and debentures. Also, they can borrow from financial institutions, e.g., Banks.
  • The continual existence of the business is assured. This means that, the business is permanent and the death of managers or shareholders does not affect its continuity.
  • There is separation between ownership and management. As a result,  it possible for people with resources (capital) and little knowledge and people with vast business expertise but insufficient capital to carry on business.
  • Transferability of shares: shareholders may turn their shares into cash. That is possible by transferring the ownership of the shares at the stock exchange market.
  • Limited liability: the owners enjoy limited liability Status.  For this reason, shareholders cannot be called upon to bear the debts of the company.  

 

3.   (a) What is communication ?

Solved Question:   

Communication is defined as the process of conveying information, ideas and feelings among individuals and groups to create common understanding.  

3.   (b) State and explain the stages involved in the communication process.

Solved Question:   

Communication process refers to the steps through which an idea goes from its concept to the time it reaches the receiver and a feedback is received.

The communication process include:-

  • Idea Generation:- the sender conceives an idea or thought. This becomes the
    intended content of the message that the sender wants to transmit to the receiver.
  • Encoding: he prepares the message in an appropriate language. He selects
    appropriate words, expressions, or symbols designed to send the message.
  • Transmission/sending: this is done by the sender. At this stage the encoded message leaves the sender. The sender sends the message through an appropriate channel that links the sender to the receiver,eg. Written, oral, memo, TV etc. Two or more channels may be combined.
  • Receiver: the receiver receives the message through the medium. If it is misunderstood, there is no communication.
  • Decoding: the receiver converts the message into thought. He interprets the
    He extracts the intended meaning of the message. For the message to receive the desired attention, the receiver must be in the right mood to receive it.
  • Feedback:- This is also called the reply or reaction. Feedback helps the sender or encoder to know whether communication has actually taken place; and whether the receiver really understands the content of the message. Feedback is therefore the receiver’s reaction or reply (response) to the sender indicating that he has understood clearly what has been communicated.
  • Noise:- This is an obstacle or a barrier that reduces the effectiveness of the
    information sent. It makes it difficult for the receiver to receive the message as intended by the sender.  

 

4.   (a) What is an organization chart ?

Solved Question:   

An organization chart is a diagram of an organization’s structure showing the functions, departments and positions in an organisation and how they inter-relate./It is the diagrammatic representation of the various positions, functions and levels in an organisation and how they interact or relate to each other for decision making in the organisation.  

4.   (b) State five ways in which an organizational structure is important.

Solved Question:   

  • It establishes a framework in which individuals and groups interact and work together to achieve organizational objectives,
  • It also establishes the network of relationship so that authority, responsibility and communication can be controlled.
  • It also spells out the formal communication channels in an organization. It shows. the directions in which communication flows in the organization that is vertical, horizontal and diagonal channels.
  • The organizational structure provides a framework for determining who is a superior and who is a subordinate in the organization.
  • It helps to co-ordinate the objectives and activities of separate units (or departments) so that overall objectives are achieved.
  • It is a basic framework in which management decision-making occurs.
  • It helps to delegate duties and assign responsibilities for the successful accomplishment of organisational objectives.  

 

5.   (a) Identify and explain four major forms of production.

Solved Question:   

  • Extractive or primary production: This is a form of production concerned with extracting raw materials also known as free gifts of nature from the land, seas and rivers and transform them to satisfy human needs and wants. It takes the form of farming, mining, logging, fishing, drilling, etc.
  • Manufacturing or Secondary production:- It is concerned with transforming or converting raw materials produced by those in the extractive industry into finished products or more useful forms through various processing stages. Examples of manufacturing production in Ghana include Takoradi Flour Mills Limited, Nestle Ghana Limited, etc.
  • Construction:- The construction industry are concerned with changing the form or shape of things. They put together what has been produced by the manufacturing sector. It involves the building of roads, bridges, houses, etc. using products such as cement, bricks and steel produced by the manufacturing sector.
  • Commercial Services:- Commercial services is a form of production which facilitate the efficient operation of the other forms of production. They facilitate exchange, distribution and consumption of goods and services. Activities such as warehousing, transportation, advertising, banking, insurance, retailing, wholesaling, etc. come under this form of production.
  • Direct services/personal services: these involve the rendering of services to the public by professionals such as doctors, nurses, lawyers, teachers, drivers, cooks etc. without any intermediary or middleman. They therefore refer to those services from which consumers enjoy direct benefit.  

5.   (b) State six functions that are performed by the retailer in a distribution channel.

Solved Question:   

The retailer should be retained in the channel of distribution because of the following reasons;

  • Breaking bulk:-retailers save their customers money by buying in bulk from
    wholesalers and breaking them into convenient sizes and shapes. They therefore make goods available at reasonable prices.
  • Financing :retailers finance their customers by giving them credit. Reliable customers enjoy the product before paying.
  • Warehousing: retailers hold inventories, thereby reducing the inventory costs and risks of wholesalers and suppliers.
  • Selling and promoting –the retailer help the wholesaler or manufacturer to- reach many small customers at a low cost. The retailer has more contaCt$ and is cfrten better trusted by the buyer than the wholesaler or manufacturer.
  • Market information The retailer plays an important role by collecting market information from the customers to the manufacturer. He gives information about competitors, new products and price developments.
  • Buying and assortment building:The retailer can select items and build assortment needed by his customers, thus saving the consumers much work. That is stocks variety of goods needed by consumers.
  • The retailer transport products to the point of sale.
  • The retailer repackages, standardizes and grades products to meet the needs and convenience of the consumer.  

 

6.   State and explain six types of insurance policies which may be taken by a manufacturing company.

Solved Question:   

  • Fire Insurance:- This is taken to protect the insured against loss arising from destruction by fire to property such as homes, fixtures and fittings, offices and factories. In this context, the compensation paid enables the insured to re-equip or rebuild the damaged items. The insured sometimes pays more under this policy to cover him when as a result of fire, work has come to a stop, therefore depriving him of revenues.
  • Goods in transit:- This policy is normally taken to cover the movement of goods and services from one place to another. Movement of goods and services are associated with certain risks which sometimes lead to great losses. Businessmen take up this policy to cover goods which are in transit against damage and deterioration. This is common in marine insurance.
  • Employer’s liability Insurance: This insurance policy is taken by employers to cover them against risks during the course of employment, The accident sustained at work resulting from employer’s negligence is what this policy covers. Employers take up this policy as an indemnity against injuries or diseases that employees may suffer as a result of negligence on the part of the employer or other employees.
  • Theft or Burglary Insurance: This policy covers loss or damage to personal property or business premises resulting from stealing.
  • Fidelity Guarantee: This protects an employer against loss resulting from fraud, dishonesty or other vice on the part of employees. It therefore covers employees like sales representatives, accountants, cashiers and other employees who are in sensitive positions. The policy cover a number of employees especially those who handle lump sum against specified risks.
  • Group Policy: Under this policy, an organisation undertakes to assure the life of its workers as a means of providing enough funds to pay for their benefits or end of service awards.
  • Consequential Insurance Policy: it covers all losses of profits which may be
    incurred after fire accident before normal operations are resumed.  

 

 7.   Explain the main features of a product as it goes through the various stages of the Product Life Cycle.

Solved Question:   

  • Introduction Stage: – This stage starts when the new product is first distributed and made available for purchase. The company incurs high cost of production, profits are also negative or low because of the low sales and high distribution and promotional expenses. Promotion spending is high to inform consumers about the new product and get them to try it. There are also few competitors at this stage. Customers aren’t looking for the product. They don’t even know about it.
  • Growth Stage: – From the birth stage, the new product emerges into the growth stage, which usually brings gradual reduction in cost and an increase in sales and profit returns. Competition usually starts to set into the market. Increased promotional activities and growth rate may reduce as a result of competition.
  • Maturity Stage: – There is keen/aggressive competition at this stage as many competitors enter the market. Sale continues to rise but more slowly. Demand reaches its maximum level. Profits decline as promotion costs climb. Prices soften further as competitors begin to cut prices to attract business.
  • Decline Stage: – Sales decline permanently. New/improved products may have entered the market. Demand falls, hence sales and profit also fall. Profits may plunge into zero or they may drop to a low level and continue there for some time. The product may die out of the market or may be withdrawn from the market. Many customers leave the market and products with strong customers’ franchise may make profit.  

 

8.   (a) What is an agency relationship?

Solved Question:   

An agent is a person appointed by a named principal to bring him into contractual relationship with third parties. Agency relationship is thus the contractual relationship that exists between an agent and a principal. Or it is the legal relationship by which one person, the principal, empowers another, the agent, to act on his behalf and agrees to be bound by the agent’s as if they were his own.  

8.   (b) State and explain any four duties of an agent towards his principal.

Solved Question:   

  • Non-delegation: – The agent must perform the work or duties personally. He has no right to delegate his duties to a sub-agent without the authority of his principal.
  • Secret profits: – The agent must not make any secret profit out of the performance of his duties as an agent or beyond the commission or the remuneration paid by his principal.
  • Render account: – The agent must pay to his principal all monies received. He is required to keep proper accounts and to produce them on demand.
  • Conflict of interest:- The agent must not allow his own interest to conflict with his obligations to his principal. The agent should not compete with his principal.
  • Due Diligence: – Generally the agent must exercise due diligence in the performance of his duties and to apply any special skill which he professes to have.
  • Non disclosure of confidential information: the agent should not disclose any confidential information to harm the principal’s business.
  • Obey instructions: the agent has a duty to obey the principal’s lawful/ reasonable instructions.  

 

9.   (a) Decision-making is the core of planning. Define decision-making in business.

Solved Question:   

Decision-making may be defined as an act of selecting one course of action from two or more alternative courses of action for the accomplishment of a desired goal/ objective. . Decision is therefore choice whereby individuals form judgment about a situation or a circumstance. It is an attitude about what should or should not be done.  

9.   (b) Describe the steps involved in the decision-making process.

Solved Question:   

The following are the main stages of decision-making:

  • Identification and definition of the problem(s)
  • Analysis of the problem
  • Gathering of information
  • Finding alternative solutions to the problem(s)
  • Evaluation of alternatives
  • Choosing and implementing the most appropriate solution
  • Measurement of the final result.
The above points could be explained below:
  • Identification and definition of the Problem: Identifying and defining the problem is already half of the solution. Once a problem is identified and defined, steps can then be taken to solve it. Accurate definition and identification of the nature, cause or causes of the problem is therefore very important.
  • Analysing of the Problem: After identifying and defining the problem, the next stage is to critically analyse the problem. This stage makes it possible to determine the dimension of the problem and the resources needed to solve it.
  • Gathering of Information: The third stage is the collection of data and other important information to solve the problem. It is important to find as many facts and figures about the situation as possible.
  • Find Alternative Solutions: There is rarely one solution to a problem. The information and data obtained at the information gathering stage should aid the Manager to develop alternative solutions to the problem.
  • Evaluation of Alternatives: This stage involves the evaluation of the different
    alternative solutions to the problem. These solutions must have their advantages and disadvantages clearly evaluated. When the business executive has done this evaluation, he then compares the alternatives on a cost benefit basis.
  • Choosing and Implementing the Appropriate Solution: When alternatives have been critically evaluated, the next stage is to choose the best solution the one with the greatest advantages and least disadvantages and implement it.
  • Measurement of the Final Result: It is important for managers to measure the final result to see if desirable outcomes are obtained. If the outcomes are not desirable, there is the need for managers to recognise and review their poor decisions in order:
  • To take corrective action
  • To learn from the decision and improve their decision making generally.  

 

10.   (a) What is computer software ?

Solved Question:   

Computer software refers to programmes that are designed to perform specific tasks or functions. It is the intangible part of the computer and contains commands, procedures, set of instructions, data and programmes that direct the computer hardware to perform specific task or function.  

10.   (b) Mention three computer input devices and two output devices, showing one function of each device.

Solved Question:   

Input devices include:-
  • Keyboard:- Used to type all kinds of letters, numbers, symbols etc. indicated on it into the computer. / It is used to enter data and instructions in to the computer.
  • Mouse:- The cursor is a small device operated from the mouse which moves on the screen of the computer and selects operations, activates, commands, creates/changes images on the screen by pressing/clicking buttons on the mouse.
  • Scanner:- Pictures, words and objects are transferred digitally into the computer by the scanner.
Output Devices include:
  • Monitor:- Displays characters and graphics on a television-like screen.
  • Printers:- A device used in printing out information on paper. They help us to get hard copies of our documents.
  • Modems: They are input-output devices that allow computers to transfer data between each other i. e it allows computers to communicate with each other.  

10.   (c) State three problems associated with the use of computer in a business organization.

Solved Question:   

  • Large capital is required to be invested in the purchase and installation of a
    It also involves high maintenance and repair cost.
  • There is scarcity of qualified computer experts with the requisite training to operate
    the computer effectively and efficiently.
  • Computers render some clerical staff redundant. Displacement of clerical staff
    leads to fear and resentment among staff and therefore low morale.
  • In the event of computer breakdown, work slows down and backlog of work is
    created which could take time to get done.
  • Virus infection may lead to loss of information or data.  

 

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