2014 - JAMB Commerce Past Questions and Answers - page 3

The correct answer is forward integration. * **Forward integration** occurs when a company expands its operations by acquiring or merging with a business that is closer to the end-user or consumer. In this scenario, a manufacturing business merging with a marketing firm is an example of moving "forward" in the supply chain, towards the consumer. * **Backward integration** would be the opposite (e.g., a manufacturing business acquiring a supplier of raw materials). * A **consortium** is a group of companies that come together to achieve a common goal, often a large project. * A **syndicate** is a group of individuals or organizations combined to promote some common interest.

An irredeemable bond is a type of bond that does not have a maturity date. This means the principal (capital) is never repaid. Instead, the issuer pays interest to the bondholder indefinitely.

The question describes the calculation of net profit. * **Net Profit** is derived by subtracting all business expenses from the sum of gross profit and other sources of income. * Option A correctly states that the difference between gross profit and trade expenses determines net profit. Trade expenses are a category of expenses that are subtracted from gross profit to arrive at the net profit.