2024 - JAMB Commerce Past Questions and Answers - page 1

An overdraft is a short-term loan facility offered by a bank to a current account holder. It allows the account holder to withdraw more money than they have in their account, up to a certain limit. This provides immediate access to funds to cover short-term financial needs. Shares, debentures, and leasing are typically sources of long-term capital.

The relationship between a country's visible imports (goods) and exports (goods) is known as the balance of trade.

Balance of trade: This specifically refers to the difference in value between a country's imports and exports of goods over a specific period.

Counter trade: This is a broad term for international trade where goods or services are exchanged for other goods or services, rather than for currency.

International trade: This is the general exchange of goods and services across international borders.

Balance of payments: This is a broader measure that includes not only visible trade (goods) but also invisible trade (services, investments, etc.) and financial transactions.

A tramp steamer (or simply a "tramp") is a ship that does not operate on a fixed schedule or route. Instead, it travels wherever it can find cargo to carry.

Fishing is the act of taking fish or other aquatic animals from a body of water. This activity involves extracting natural resources from the environment. Extractive industries are those that involve the removal of raw materials from the earth or water. Therefore, fishing falls under the extractive industry.

The principles of insurance are fundamental guidelines that govern the operation of insurance contracts. Let's analyze each option:

A. Insurable interest: This is a core principle. The insured must have a financial or economic interest in the subject matter of the insurance.

B. Particular average: This term relates to marine insurance and refers to a partial loss to the cargo or vessel, typically due to a peril of the sea. It is a concept within marine insurance, not a general principle of insurance.

C. Utmost good faith (uberrimae fidei): This is a crucial principle. Both the insurer and the insured must act honestly and disclose all material facts.

D. Subrogation: This is also a principle. It gives the insurer the right to step into the shoes of the insured and pursue any legal claims the insured has against a third party who caused the loss.

Magazines preselect their readership based on their content. For example, a magazine about fashion will primarily attract readers interested in fashion. Newspapers, billboards, and handbills have broader reach and don't specifically target readers based on the content's nature.

Commercial law encompasses the rules and regulations that govern business transactions. These laws cover various aspects of business operations, including contracts, sales, and other related activities.

A contract is considered terminated by performance when all parties involved have fulfilled their respective obligations as outlined in the contract.

An invoice is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. It informs the buyer of what they need to pay.

The principle of indemnity aims to restore the insured to the same financial position they were in before the loss. This principle is not always applied to all types of insurance.

Life insurance: This is a type of insurance that is usually excluded from the principle of indemnity because the value of a human life cannot be precisely determined and restored. The payout in life insurance is a pre-agreed amount.

Fire, Marine, and Fidelity Guarantee insurance policies are usually subject to the principle of indemnity.