Capital, Credit, and Insurance

BlueWave Marine Plc has an authorized share capital of $2,000,000$ ordinary shares of $₦5$ each. The company issued $80\%$ of its authorized shares to the public and subsequently called up $₦4$ per share. All shareholders paid the call in full except for holders of $50,000$ shares who defaulted on the payment. What is the total paid-up capital of the company in Naira?

An enterprise presents the following financial balances at the end of its trading year:

- Premises and Machinery: $\text{₦}1,850,000$
- Stock (Inventory): $\text{₦}410,000$
- Trade Debtors: $\text{₦}240,000$
- Cash at Bank: $\text{₦}150,000$
- Trade Creditors: $\text{₦}270,000$
- Accrued Expenses: $\text{₦}130,000$
- Long-term Loan: $\text{₦}600,000$

What is the Capital Employed of the enterprise in Naira ($\text{₦}$)?

The financial extract of Chief Adebayo's enterprise at the end of the trading year shows the following balances:

- Fixtures and Fittings: $\text{₦}650,000$
- Motor Vehicles: $\text{₦}1,200,000$
- Inventory: $\text{₦}350,000$
- Trade Debtors: $\text{₦}180,000$
- Cash at Bank: $\text{₦}120,000$
- Trade Creditors: $\text{₦}220,000$
- Accrued Expenses: $\text{₦}30,000$

What is the capital employed of the business?

Match each credit instrument or form of credit listed in Column A with its corresponding legal feature or operational description in Column B.

A merchant receives a written, unconditional promise signed by a debtor, undertaking to pay a specified sum of money on demand or at a fixed future date to a named payee. Which instrument of credit does this document represent?

In commercial practice, various credit arrangements dictate when legal ownership of goods transfers and what rights sellers retain. Match each credit trading scheme on the left with its corresponding legal ownership feature and seller remedy on the right.

An electronics retailer sells a refrigerator to a buyer who pays an initial deposit and agrees to settle the remaining balance in monthly installments. Under the terms of the agreement, legal ownership of the refrigerator passes to the buyer immediately upon delivery, and the seller retains only the right to sue for any unpaid debt in the event of default. Which credit transaction scheme is illustrated in this scenario?

Match each basic principle of insurance on the left with its correct legal definition or application on the right.

A logistics company's delivery truck was damaged in a road accident caused entirely by a reckless third-party driver. The insurance company fully indemnified the logistics company for the repair costs of $1,200,000$ Naira and subsequently sued the reckless driver to recover the money paid. Which principle of insurance entitles the insurer to take legal action against the third party in place of the insured?

Under the legal principle of proximate cause in insurance, an insurer is liable for loss or damage if the direct, dominant, and efficient cause that set the chain of events in motion is an insured peril, even if an intermediate event in the sequence was not specifically named in the policy.

A commercial firm secures an insurance policy to safeguard its business against pecuniary losses arising from fraud, embezzlement, or dishonest acts committed by its cash-handling employees. Which type of insurance policy has the firm acquired?

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

An official of a marine insurance company carefully examines the risk details of a cargo vessel, evaluates the potential financial exposure, determines the appropriate premium rate, and decides the terms under which coverage will be granted. Which insurance process or concept is being performed by this official?

Match each insurance risk management concept in Column A with its corresponding operational description in Column B.

A major manufacturing firm in Lagos seeks to expand its operations by obtaining a substantial loan from a commercial bank. To approve the loan facility, the bank demands assurance that the firm's assets are protected against unexpected catastrophic events such as fire or industrial accidents. How does insurance primarily assist the firm in fulfilling this credit requirement?

A logistics firm enters into an agreement to acquire a delivery van with a cash price of $₦8,000,000$. The contract requires an initial deposit of $₦2,000,000$ followed by 10 monthly installments of $₦700,000$ each, stipulating that legal title remains with the vendor until the final installment is paid. After paying the deposit and 6 monthly installments, the firm defaults. Under commercial law governing credit transactions, which of the following accurately describes the vendor's legal enforcement rights?

A commercial enterprise seeking to cover a massive ₦10 billion offshore energy asset enters into an agreement where Crescent Assurance Plc acts as the lead insurer, taking 40% of the risk, while two other insurance companies directly execute the same policy for 30% each. Which risk-sharing mechanism is being practiced, and how does it fundamentally differ from reinsurance?

Match each basic principle of insurance listed on the left with its corresponding legal application or description on the right.

A commercial bakery acquires a heavy-duty industrial generator under a hire purchase agreement. The cash price of the generator is $₦3,200,000$. The agreement requires an initial deposit of $25\%$ of the cash price, with the remaining balance paid in $10$ equal monthly installments of $₦270,000$ each. What is the total hire purchase interest charged on this transaction in Naira?

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