Question

5. Adamu, a wholesaler in Lagos, who deals in frozen foods, has customers in the northern parts of the country.
(a) State four factors that would affect the choice of the mode of transporting goods to his customers.
(b) List and explain four transportation documents he would use in the course of delivering the goods to his customers.

Accepted Answer

(a) The cost of transporting the goods (the major determining factor); the nature of the goods being transported; the available facility (whether road or rail); government policy, which may also determine the mode of transportation.
(b) Waybill: the document that contains the details of the goods being transported, issued by the seller to the carrier of the goods. Free on Board (FOB): terms of a sales document stating which party is liable for transportation costs, which party is in control of the movement of the goods, and when the title passes to the buyer. Carrier certificate: a document issued by the carrier to acknowledge the goods carried. Sales invoice: the invoice for the goods being transported, which must be handed to the carrier to be delivered to the buyer.

WAEC Marketing 2022 Theory — Question 5

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