Capital, Credit, and Insurance

Apex Trading PLC has an authorized share capital of $500,000$ ordinary shares of $₦2$ each. The directors issued $60\%$ of these shares to the public. The company subsequently called up $₦1.50$ per issued share. However, shareholders holding $20,000$ shares defaulted on paying a final call of $₦0.50$ per share. Additionally, the company's financial records show $₦150,000$ in $10\%$ debentures, current assets of $₦320,000$, and current liabilities of $₦140,000$. What is the total paid-up share capital of the company in Naira?

Which credit instrument is issued by an importer's bank to guarantee payment to an exporter upon the presentation of specified shipping documents?

In marine cargo insurance, a partial loss deliberately caused by sacrificing part of the cargo or incurring extraordinary expenditure to preserve the vessel and cargo from a common maritime danger is classified as a Particular Average loss, which is borne solely by the owner of that specific cargo.

The financial records of Prime Ventures Ltd. show the following balances at the end of its financial year:

Based on the table above, what is the Net Working Capital of Prime Ventures Ltd.?

Which type of insurance policy is exempt from the principle of indemnity, allowing the full sum assured to be paid upon the occurrence of the event?

A manufacturing firm needs immediate financing to settle its monthly utility bills and acquire raw materials for current operations. Which source of capital is most appropriate for meeting this short-term requirement?

A merchant's business records show capital employed of $\text{₦}2,200,000$, fixed assets of $\text{₦}1,500,000$, a long-term loan of $\text{₦}400,000$, current liabilities of $\text{₦}250,000$, trade debtors of $\text{₦}300,000$, and cash at bank of $\text{₦}150,000$. What is the value of the merchant's closing inventory (stock) in Naira?

A trading firm recorded current assets of ₦450,000, current liabilities of ₦180,000, fixed assets of ₦850,000, and long-term liabilities of ₦200,000. What is the working capital of the firm in Naira?

The financial records of Kalu Trading Enterprises at the end of a trading period show the following balances:

- Fixed Assets: $\text{₦}800,000$
- Stock (Inventory): $\text{₦}250,000$
- Trade Debtors: $\text{₦}150,000$
- Cash at Bank: $\text{₦}100,000$
- Trade Creditors: $\text{₦}180,000$
- Bank Overdraft: $\text{₦}70,000$

What is the capital employed of the business?

Kensington Logistics Ltd. has an authorized capital of $1,000,000$ ordinary shares of $₦50$ each. The board of directors issued $70\%$ of these shares to subscribers. The company requested payment of $₦30$ per share, but the actual amounts remitted by shareholders total $₦25$ per share to date. What is the total value of the company's uncalled capital?

Match each credit transaction scheme listed on the left with its defining legal ownership characteristic on the right.

A customer acquires a commercial generator under a credit sale agreement, taking immediate delivery and agreeing to pay in six equal monthly instalments. After paying the second instalment, the customer sells the generator to an innocent third party and defaults on all subsequent payments to the original vendor. What legal remedy is available to the original vendor?

Match each type of insurance policy on the left with its correct description or coverage on the right.

A business owner acquires a piece of industrial equipment under a hire purchase agreement. The cash price of the equipment is $₦2,500,000$. The contract requires an initial deposit of $25\%$ of the cash price, with the remaining balance subject to simple interest of $12\%$ per annum calculated over a term of $2$ years. If the principal balance and total interest are repaid in equal monthly installments over the $2$-year period, what is the amount of each monthly installment in Naira?

Apex Insurance Plc issues a comprehensive policy covering a multi-billion naira industrial facility. To protect itself from catastrophic loss, Apex Insurance transfers a portion of this insured risk to another insurance firm. Which insurance concept is illustrated by this business arrangement?

Chief Ojo secured a ₦50,000,000 life assurance policy with Insurer X and another ₦50,000,000 life assurance policy with Insurer Y. At the same time, he insured his luxury yacht, valued at ₦50,000,000, for fire damage with Insurer X for ₦50,000,000 and with Insurer Y for ₦50,000,000. Following an accidental fire that caused the total destruction of the yacht and resulted in Chief Ojo's death, his estate submitted claims for both policy types to both insurers. Which of the following correctly describes the legal entitlement of Chief Ojo's estate under insurance principles?

A commercial property valued at $\text{N}500\text{ million}$ is covered under an agreement where three independent insurance companies—Firm X, Firm Y, and Firm Z—contract directly with the policyholder in a single policy to bear $50\%$, $30\%$, and $20\%$ of any indemnity liability respectively. Following a fire outbreak causing a total loss of $\text{N}100\text{ million}$, the policyholder submits a full claim of $\text{N}100\text{ million}$ solely against Firm Y.

Which of the following statements correctly describes Firm Y's legal liability and the nature of this risk-sharing arrangement?

In commercial insurance, while Fire and Marine policies strictly operate as contracts of indemnity where compensation is limited to the actual financial loss sustained up to the policy limit, Life Assurance policies are exempt from the principle of indemnity because human life cannot be assigned an exact pecuniary value.

Match each type or source of business capital listed on the left with its correct defining characteristic or feature on the right.

A public limited company intends to raise long-term capital to finance the construction of a new factory branch. To avoid diluting the ownership and voting control of existing equity holders, which source of capital is most appropriate for the company to issue?