Differences between whole life policy and endowment policy.
Whole life policy | Endowment policy | |
(a) | Compensation is paid after the death if insured. | Compensation is paid after the expiry of agreed period. |
(b) | Premiums are paid throughout the life of the insured. | Premiums are paid only during the agreed period. |
(c) | Benefits goes to the beneficiaries. | Benefits go to the insured unless death occurs before expiry of agreed period. |
(d) | Aims at financial security to the beneficiaries. | Aims on financial security of the assured and dependants. |
The uses of the following documents in international trade.
(i) Bill of lading.
- It enables the holder to take possession of goods. It entitles the holder to take possession to goods imported.
- Can use it as a document for future reference.
- Can use the bill of lading to countercheck his goods on arrival.
- Can use it to get money for clearing, once the goods have come.
- Can use it as a proof of business transaction.
- Can use the bill to claim compensation in case all the goods indicated do not reach him.
- It acts as evidence that goods have been received by the ship owner.
- It is negotiable document in that the importer can transfer ownership of the goods by indicating and signing on it.
(ii) Indent
- It used to assist the exporter of agent to know where to buy goods.
- It used to assist the agent to select on exporters.
Factors to consider when identifying a business opportunity.
- Objectives of the business.
- Availability of skills to operate the business.
- Availability of markets.
- Technology.
- Availability of raw materials.
- Government policy.
- Amount of capital required.
- Level of competition.
- Difficulties in marketing.
- Possibility of expansion.
- Impact of the business on the environment.
- Security.
- Level of infrastructure development
Circumstances which may necessitate the government to nationalize some industries.
- When it want to protect the consumer against private monopoly.
- If there has been wasteful competition by several private companies.
- If the private company was irregularly acquired by private investors from the government.
- If the activity carried out by the private company should have national benefit but not individual benefit e.g. mining.
- If the firm has relied on government subsidy for so long.
- Where there is need to prevent foreign dominion in the key sector of the economy.
- When the government want to provide essential services at affordable prices.
- When the government desires to create job opportunities.
- If the business is dealing with sensitive goods which cannot be left in the hands of private sector due to security reasons.
Importance of the following financial ratios to a business.
(i) Margin.
- Helps in setting of selling price.
- Can be used in calculation of profits or losses.
- Used in determining sale for a given period of time
(ii) Rate of stock turnover.
- Used to determine the fast and slow moving stock.
- May be used to compute gross profit or loss
Advantages of using television as an advertising media.
- Combines sound, words and motion pictures which make advertising appeal.
- Show most product features.
- Educate customers on the usage of products.
- They are entertaining and hard to ignore.
- Appreciated by both literate and illiterate.
- Advertisement may be aired as frequently as required.
- Advertisement may be modified as need arises
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