2022 Commerce

  1. An article used as a means of exchange in the early days of trade in West Africa was
  • A. cedis
  • B. cowrie
  • C. dalasi
  • D. naira
  1. The provision of services is classified under
  • A. batch production
  • B. flow production
  • C. secondary production
  • D. tertiary production
  1. The growth of commerce is not enhanced by
  • A. development of modern forms of production
  • B. government participation in business
  • C. high population growth
  • D. low per capita income
  1. One of the products of the construction industry is a
  • A. piece of cloth
  • B. bag of cement
  • C. television
  • D. chair
  1. The service of a retailer is part of production because it
  • A. creates a link between consumers and producers
  • B. enables finished goods to reach consumers
  • C. increases consumers standard of living
  • D. is a commercial occupation
  1. The resources put together to create goods and services are
  • A. working capital
  • B. producer goods
  • C. factors of production
  • D. consumer goods
  1. Which of the following organizations provide essential goods and services at low cost to citizens?
  • A. Thrift societies
  • B. Public enterprises
  • C. Private companies
  • D. Cooperative societies
  1. A group of sellers who pool their resources to buy goods in large quantities and sell to its members is a
  • A. wholesaler cooperative society
  • B. thrift and credit society
  • C. consumer cooperative society
  • D. chamber of commerce
  1. Average stock is derived by adding
  • A. closing stock to purchase divided by 2
  • B. closing stock to opening stock
  • C. opening stock to closing stock divided by 2
  • D. opening stock to purchases
  1. A retail business that sells goods by post, using catalogue is a
  • A. chain store
  • B. department store
  • C. mail order firm
  • D. shopping mail
  1. Which of the following documents would a shareholder inspect to know his voting rights?
  • A. Articles of Association
  • B. Certificate of Incorporation
  • C. Certificate of Trading
  • D. Memorandum of Association
  1. An internal source of finance to an enterpreneur is
  • A. trade
  • B. retained earning
  • C. overdraft
  • D. debenture
  1. Use the information below to answer questions 13 and 14

 

#

Sales

50,000.00

Debtors

10,000.00

Cash in hand

5,000.00

Opening stock

30,000.00

Creditors

8,000

  • A. #35,000.00
  • B. #20,000.00
  • C. #5,000.00
  • D. #14,000.00
  1. Use the information below to answer questions 13 and 14

 

 

#

Sales

50,000.00

Debtors

10,000.00

Cash in hand

5,000.00

Opening stock

30,000.00

Creditors

8,000.00

Purchases

16,000.00

Overdraft

12,000.00

Closing stock

10,000.00

  • A. #35,000.00
  • B. #20,000.00
  • C. #15,000.00
  • D. #14,000.00
  1. A partner who contributes only his name to the formation of a partnership is
  • A. a nominal partner
  • B. a limited partner
  • C. a general partner
  • D. an active partner
  1. Which of the following groups would advocate for the supply of constant electricity to households?
  • A. Consumer’s association
  • B. Credit union
  • C. Employer’s association
  • D. Labour union
  1. A retail store that sells a single product from a particular manufacturer is a
  • A. tied shop
  • B. shopping mail
  • C. hypermarket
  • D. chain store
  1. A country’s visible balance of payment is made up of
  • A. interest on loans to foreign countries
  • B. profit from investment abroad
  • C. earnings from goods exported
  • D. dividend earned from companies
  1. The quality of money which makes it possible to buy goods in small quantities is
  • A. portability
  • B. homogeneity
  • C. divisibility
  • D. durability
  1. One of the functions of commercial banks that cannot be performed by central banks is
  • A. collection of old notes
  • B. collection of deposits from the public
  • C. issuance of treasury bills
  • D. printing of bank notes
  1. A document that instructs an agent to buy goods from a named firm is
  • A. proforma invoice
  • B. open indent
  • B. consular invoice
  • D. closed indent
  1. The incentive given to a buyer to encourage prompt payment is
  • A. cash discount
  • B. seasonal discount
  • C. quantity discount
  • D. trade discount
  1. The principle which prevents an insured from receiving a claim that is more than the value of the loss, if the property is insured by more than one company is
  • A. indemnity
  • B. contribution
  • C. proximate cause
  • D. uberrimae fidei
  1. Dealers in stock exchange such as bulls, bears and stags are categorized as
  • A. actuaries
  • B. promoters
  • C. speculators
  • D. underwriter
  1. Which of the following is not a characteristic of a commercial bank?
  • A. Established as limited liability company
  • B. Established by individuals or organizations
  • C. Established to issue bank notes
  • D. Established with the view of making profit
  1. Central banks sell treasury bills to the public to
  • A. increase cash in the banking system
  • B. raise revenue for commerical banks
  • C. raise revenue for private investors
  • D. reduce cash in circulation
  1. A document used to ensure correct payment of duty at the importing country is
  • A. documentary credit
  • B. consular invoice
  • C. certificate of origin
  • D. bill of lading
  1. A cheque is specially crossed if
  • A. the name of the account holder is written between two parallel lines drawn across it
  • B. it could be paid over the counter
  • C. the name of the bank is written between two parallel lines drawn across it
  • D. only two parallel lines are drawn across it
  1. One of the functions of a trade association is to
  • A. pay members salaries
  • B. promote members’ welfare
  • C. provide loans to members
  • D. provide employment for members
  1. When a share with a nominal value of #50 is quoted at #70, it is being sold
  • A. cum div
  • B. ex-div
  • C. at a discount
  • D. at a premium
  1. Sea vessels that do not operate on regular times and routes are
  • A. tramps
  • B. ocean liners
  • C. container ships
  • D. ferries
  1. Payment made to a carrier for transportation of goods is
  • A. freight
  • B. fee
  • C. fare
  • D. duty
  1. An advantage of rail transport is that it
  • A. is less expensive to maintain
  • B. is not prone to delays
  • C. carries bulky and heavy goods
  • D. enhances door-to-door delivery
  1. The commission on a postal order is
  • A. tariff
  • B. poundage
  • C. brokerage
  • D. fee
  1. Consumers could be encouraged to purchase a company’s product through
  • A. research
  • B. planning
  • C. distribution
  • D. advertisement
  1. The marketing concept emphasizes
  • A. sales of goods directly to customers
  • B. use of promotional tools to stimulate sale
  • C. mass production of goods
  • D. consumer’s satisfaction at a profit
  1. An undertaking to repair a customer’s vehicle for a certain period after it has been sold is
  • A. after-sales service
  • B. marketing mix
  • C. market segmentation
  • D. sales promotion
  1. Which of the following is not a right of a consumer?
  • A. Right to a fair hearing
  • B. Right to buy on credit
  • C. Right to obtain replacement
  • D. Right to safe product
  1. Advertisement which is geared towards a particular audience is
  • A. direct advertising
  • B. indirect advertising
  • C. mass advertising
  • D. persuasive advertising
  1. The law by which a seller transfers the property in goods to a buyer at an agreed price is the
  • A. Weights and Measure Act
  • B. Trade Description Act
  • C. Sale of Goods Act
  • D. Foods and Drugs Act
  1. Commerce is defined as
  • A. buying and selling of goods and services only
  • B. all activities in the distribution and exchange of goods and services
  • C. all activities involved in the production of goods and services
  • D. transporting and warehousing of goods only
  1. The type of occupation that a broker belongs to is
  • A. commercial
  • B. construction
  • C. extraction
  • D. manufacturing
  1. A form of money which was not used in the early days of trade is
  • A. tobacco
  • B. metal bars
  • C. cowries
  • C. coins
  1. Which of the following activities is not an example of the extractive industry?
  • A. weaving
  • B. quarrying
  • C. hunting
  • D. fishing
  1. A business unit in which savings of members are lent to others is a
  • A. consumer cooperative society
  • B. producer cooperative society
  • C. credit and thrift society
  • D. wholesale cooperative society
  1. The document issued by a public company allowing it to commence business is the
  • A. Articles of Association
  • B. Certificate of Incorporation
  • C. Memorandum of Association
  • D. Certificate of Trading
  1. Which of the following is not a function of a consumer association?
  • A. Ensuring that consumers buy quality goods
  • B. Educating consumers on their rights
  • C. Penalizing importers of fake goods
  • D. Ensuring that fair prices are charged
  1. An association formed by computer distributors to safeguard and promote their interest is a
  • A. chamber of commerce
  • B. cooperative society
  • C. trade association
  • D. trade union
  1. The issue of prospectus by a company is an invitation to members of the public to
  • A. subscribe to the company’s shares
  • B. attend the company’s Annual general Meeting
  • C. buy the company’s products
  • D. attend the company’s board meeting
  1. Examples of current assets are
  • A. cash and trade debtors
  • B. cash and trade creditors
  • C. trade debtors, trade creditors and cash
  • D. trade creditors and trade debtors

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