2021 Commerce

  1. The principle of span of control stipulates that?
  • A. The number of employees reporting to one superior should be kept to a workable maximum
  • B. An employee should report to only one superior
  • C. Managers must demand accountability from their subordinates
  • D. Resources have to be economized within the various divisions
  1. The main advantage of a sole trader is the freedom to?
  • A. employ anyone he likes
  • B. take quick decision
  • C. seek advise from any source
  • D. plough all the profits
  1. The major objective of corporate mergers is to?
  • A. minimize the effect of taxation
  • B. increase financial advantage
  • C. enhance economies of sale
  • D. facilitate profit maximization
  1. A provision in the charter of a company which gives holders of common stock the first option to purchase additional issues of the firm’s common stock is the
  • A. pre-emptive right
  • B. over-subscription right
  • C. ex-dividend right
  • D. shareholders right
  1. The conversion of raw materials into finished products creates
  • A. form utility
  • B. time utility
  • C. marginal utility
  • D. place utility
  1. A form of money that has gone out of use is
  • A. paper money
  • B. commodity money
  • C. foreign money
  • D. bank money
  1. The activities aimed at finding customers needs and satisfaction can be described as
  • A. conceptual marketing
  • B. macro-marketing
  • C. socio-marketing
  • D. micro-marketing
  1. Given:
    I. Retail
    II. Export
    III. Transport
    IV. Import
    V. Insurance
    VI. Banking and finance
    VII. Wholesale
    VIII. Communication. 

Which of the above are aids to trade?

  • A. III, V, VI and VIII
  • B. I, II, III and VI
  • C. I, III, V, and VI
  • D. II, V, VI and VII
  1. Communication process involves the transmission of a message over a selected channel to the 
  • A. encoder
  • B. receiver
  • C. audience
  • D. sender
  1. The instruments of credit include
  • A. billboards and postal stamps
  • B. payment vouchers and statement of account
  • C. bills of exchange and salary voucher
  • D. bills of exchange and promissory notes
  1. The type of communication from a superior to a subordinate in an organization is referred to as 
  • A. downward communication
  • B. upward communication
  • C. lateral communication
  • D. horizontal communication
  1. The excess of the assets over the liabilities of a business is called 
  • A. capital employed
  • B. net worth
  • C. working capital
  • D. initial capital
  1. Use the information below to answer this question

A B C Balance Sheet as at 31/12/2004

The total sum of financing short term projects is

  • A. ₦ 30,000
  • B. ₦200,000
  • C. ₦70,000
  • D. ₦40,000
  1. Use the information below to answer this question

A B C Balance Sheet as at 31/12/2004

What is the capital employed?

  • A. ₦ 340,000
  • B. ₦ 200,000
  • C. ₦ 300,000
  • D. ₦ 170,000
  1. A distinctive advantage of GSM is its
  • A. cost
  • B. stability
  • C. coverage
  • D. mobility
  1. The major determinant of fire insurance premium is the 
  • A. usefulness of the property to the owner
  • B. type and structure of the property to be insured
  • C. owner of the property to be insured
  • D. extent of fire damage anticipated
  1. An activity that involves derivation of raw materials from land and sea is
  • A. agriculture
  • B. farming
  • C. extraction
  • D. construction
  1. A person who buys new issues with a view of reselling at a higher price in the near future is referred to as a
  • A. bear
  • B. bull
  • C. dealer
  • D. stag
  1. The primary memory component of a computer is the 
  • A. console
  • B. cache
  • C. compliers
  • D. assemblers
  1. The transmission of the telephone services from one country to another is facilitated by
  • A. international facility
  • B. internet services
  • C. interconnectivity
  • D. communication satellite
  1. The best mode of ensuring that items posted get to the named addresses is through
  • A. recorded delivery
  • B. certificate of posting
  • C. registered mail
  • D. express mail
  1. An agency contract must involve
  • A. a principal and a consumer
  • B. a principal and an agent
  • C. a principal and a producer
  • D. a principal and a third party
  1. Inbound tourism occurs when
  • A. residents of a country travel within it
  • B. non-residents of a country travel to other countries
  • C. residents of a country travel to other countries
  • D. non-residents of a country travel within it
  1. When two or more companies agree to execute a project too large for one to handle, this is referred to as
  • A. an amalgamation
  • B. a cartel
  • C. a consortium
  • D. a merger
  1. The main objective of a trade association is to
  • A. protect its members against litigation
  • B. protect its members against victimization
  • C. boost the trade of its members
  • secure credit for its members
  1. A person who in consideration for an extra commission takes responsibility for goods sold on credit and in case of default is a 
  • A. commission agent
  • B. factor
  • C. broker
  • D. del credere agent

27.

If Mr. P takes a fire insurance policy with average clause, his compensation will be

  • A. ₦7,500
  • B. ₦5,000
  • C. ₦70,000
  • D. ₦75,000
  1.  

What insurance principle has Mr. R violated if he decides to overstate the actual value of his property?

  • A. insurable interest
  • B. uberrimae fidei
  • C. subrogation
  • D. indemnity
  1. Hire purchase is advantageous to the seller in that 
  • A. it elevates his living standard
  • B. people pay on installment
  • C. his turnover will increase
  • D. it enhances high level of patronage
  1. A form of money with face value which is greater than the value of the metal contents is 
  • A. bank notes
  • B. legal tender
  • C. commodity money
  • D. token money
  1. A proforma invoice is not required when
  • A. quoting for the supply of good
  • B. dealing regularly with a customer
  • C. goods are sent on approval
  • D. final prices are uncertain
  1. The art of soap making is an example of
  • A. tertiary occupation
  • B. construction occupation
  • C. primary occupation
  • D. secondary occupation
  1. The payment made periodically in respect of an insurance policy entered into is known as
  • A. surrender
  • B. bond
  • C. premium
  • D. commission
  1. Services rendered to the public is provided by 
  • A. domestic servants
  • B. civil servants
  • C. government
  • D. professionals
  1. Which of the following countries are members of the Lake Chad Basin Commission?
  • A. Niger and Cameroon
  • B. Benin and Nigeria
  • C. Nigeria and Mali
  • D. Chad and Benin
  1. The macro-environmental forces and trends which are a constraint on business operations are referred to as
  • A. internal factors
  • B. external factors
  • C. economic factors
  • D. technical factors
  1. Which of the following has power to order withdrawal of a particular food item from circulation?
  • A. Federal High Courts in Nigeria
  • B. Standard Organization of Nigeria
  • C. Local Government Health Inspectors
  • D. Food and Drugs Department of the Federal Ministry of Health
  1. Chibuzor agreed to make a dress for Hauwa with September 20, 1995 as the delivery date, if the dress was not ready on that date, Hauwa could
  • A. sue chibuzor for specific performance
  • B. seize another gown from chibuzor’s shop
  • C. regard the contract between then as terminated
  • D. sue chibuzor for damage
  1. Departmentalization is an aspect of 
  • A. directing
  • B. organizing
  • C. planning
  • D. controlling
  1. The function of a merchant wholesaler is to
  • A. find markets for producers’ finished goods
  • B. bring buyers and sellers together
  • C. possess title to the goods, store and sell to retailers
  • D. buy in bulk, store and sell to retailers as desired

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