Commerce: Jamb Questions

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Commerce
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JAMB
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Commerce 1994
1. Commerce is defined as the study of how 9. Use the data below to answer questions 9 and 10.
A. man utilizes the resources in his physical MBV Enterprises
environment Balance Sheet as at 31st December, 1992
B. man produces, distributes and consumes his
goods and services
Liabilities N Assets N N
C. man buys, sells and distributes goods and
Capital Fixed Assets
services
Balance as at Fittings 9,200
D. raw materials are changed into finished goods.
Jan. 1,1992 60,000 Vehicles 7, 500 16,700
2. The type of activity which turns processed raw Add Net Profit 5,250
materials into consumer and industrial goods is 65, 250
described as Less Drawings 6, 600
A. extractive B. manufacturing 58,650
C. constructive D. processing Current Assets
Stock in hand 8,800
3. The production process that combines two or more raw Debtors 15,500
materials into one end product is Current Liabilities Cash at Bank 21,000
A. conditioning B. blending Creditors 9,730 Cash in hand 6,380 51,680
C. merging D. synthesis. 68,380 68,380
4. A demonstration of social responsibility by a business
is the payment of 9. What is the circulating capital of the sole proprietor?
A. taxes to government A. N27, 380 B. N34, 980
B. dividends to shareholders C. N36, 180 D. N51, 680
C. interest on loans
D. premium for insurance. 10 What is the working capital as at December 31, 1992?
A. N65, 250 B. N60, 000
5. A distinguishing characteristic of a limited liability C. N48, 650 D. N41, 950
company is that it
A. is a collection of many sole proprietors 11. A company earned a total revenue of N108 million with
B. is a multiple partnership a total cost of N91 million in 1991. If it paid 45% tax on
C. can sue and be sued its gross profit for that year, determine its net profit.
D. has limited resources. A. N24.65 million. B. N17.00 million.
C. N9.35 million. D. N7.65 million.
6. Which of the following takes place when firms
producing at different stages in the same industry 12. What are fixtures and fittings in a balance sheet?
combine? A. Liquid capital B. Current assets
A. Conglomeration B. Vertical integration C. Fixed assets D. Working capital
C. Horizontal integration D. Cartel.
13. Government impose import duties for the following
7. Which of the following groups is paid first when a firm reasons EXCEPT
liquidates? A. to raise revenue for other services
A. Perference shareholders. B. to act as as a retaliatory measure against other
B. Debenture holders governments
C. Ordinary shareholders. C. to discourage the redistribution of income at home
D. Cummulative preference shareholders. D. to protect home industries from external competition.
8. Compulsory dissolution of a business can arise from 14. Sole enterprise may flourish best in
A. an agreement by the owners A. a mining business B. a retailing business
B. a declaration by a court of law C. an oil exploration business
C. the termination of its life D. a car assembly business
D. an unfavourable economic climate.
15. The use of coin-operated machines to sell goods is a
form of
A. personal selling B. retailing
C. wholesaling D. mail-order selling.
16. What is the major function of the wholesaler?

A. Buying from small-scale producers and selling
to exporters.
B. Buying in bulk and selling in small quantities A. Nigrian Deposit Insurance Corporation
C. Granting of credit facilities to retailers B. Nigeria Economist Reconstruction Fund
D. Providing information to manufacturers on C. Nigerian Industrial Development Bank
market situation. D. Nigerian Export-Import Bank.
17. The rate at which a country’s exports exchange for its 27. Which of the following is both direct and indirect credit
imports is called enterprises?
A. balance of payments B. balance of trade A. Co-operative and thrifts society.
C. terms of payment D. terms of trade. B. Retail co-operative society.
C. Consumer co-operative society.
18. The different between the total payments for imports and D. Wholesaler co-operative society.
the receipts from exports within a given period is referred
to as 28. The business in the stock exchange is characterized
A. balance of payments B. balance of trade essentially by
C. comparative cost advantage D. comparative advantage A. dealing. B. brokerage
C. speculations D. transactions.
19. A pro forma invoice is NOT required when
A. quoting for the supply of goods 29. The Second-Tier Securities Market is
B. goods are sent on approval A. an apendage to the Nigerian Stock Exchange
C. dealing regularly with a customer B. a member of the Nigeria Stock Exchange
D. final prices are uncertain. C. meant for the shares of the quoted private companies
D. a regulating arm of the Nigeria Stock Exchange
20. Which of the following statements is TRUE about sea
transport? 30. The elements of the marketing mix are
A. All ships have specific routes to ply. A. product, promotion, place and price.
B. All ships must be insured at every journey B. personal selling, advertising and research.
C. All ships are insured separately from the crew C. promotion, production, place and price.
D. All ships normally arrive at their destination with D. procurement, price, product and place.
goods.
31. Which of the following items has the shortest effect on
21. The postal organization which preceded in Nigerian Postal the consumer?
Service is A. Fashion. B. Innovation.C. Fad D. Attribute.
A. Post and Telecommunications
B. Post and Telephone 32. Which of the following is a form of sales promotion?
C. Post and Teleprinter D. Post and Telegraph. A. Advertising on radio. B. Offering free samples.
C. Distributing printed materials.
22. Goods discharged from ships on which import duties have D. Advertising on Television.
not been paid are kept in the
A. ordinary warehouse B. public warehouse 33. One advantage of personal selling over all other elements
C. private warehouse D. bonded warehouse. of promotion is that
A. it can provide instant feedback
23. A sole proprietor insured his goods worth N200,000 for B. it is very cheap in terms of cost per contract
half the value.There was a fire incident in which goods C. it does not need to use mass media
valued at N80, 000 were destroyed. The value of D. sales people are well trained.
compensation expected from the insurer is
A. N40,000 B. N80,000 34. Which of the following must be present in an agency by
C. N100,000 D. N200,000 agreement?
A. Intentions. B. Will.
24. One of the effects of the devaluation of the Naira is that C. Consent. D. Authority.
the
A. goods that can be imported with the Naira have become 35. An agreement to sell is distinguishable from a sale because
cheaper in the former, the transfer of goods is
B. value of other currencies relative to the Naira have A. not anticipated. B. not discussed.
become cheaper C. deferred. D. immediate.
C. goods that can be exported from Nigeria have become 36. Mr. Amusa says to Mr Bello ‘I will sell you this hat for
costlier N30’. And Mr Bello replied ‘I will pay N29’. The contract
D. imports that can be bought with the Naira have become is
costlier. A. an offer and acceptance B. an implied contract.
25. Drawing two parallel lines across a cheque means that is C. a complete simple contract.
has to be paid into the account of the D. an offer but no acceptance.
A. payee B. drawer 37. Nationalization of an industry means that its ownership
C. drawee D. payer. becomes that of
26. The financial institution established to boost Nigeria’s A. government. B. shareholders.
trade with the rest of the world is called C. taxpayers. D. indigenes.
38. The Comprehensive Import Supervision Scheme was set 44. The harmonious relationship among the various units in
up by the federal government in order to an organization is ensured through
A. reverse Nigeria’s unfavourable balance. A. co-ordination B. motivation
B. promote fair trade between Nigeria and other countries. C. planning. D. leadership.
C. counteract all fraudulent business deals of Nigerians
with other nationals. 45. The principle of span of control stipulats that
D. ensure that imports into Nigeria are of the correct A. an employee should report to only one superior
quality, value and quantity. B. managers must demand accountability from their
subordinates
39. Which of the following has powers to order withdrawal of C. resources have to be economized within the various
a particular food item from circulation? divisions
A. Standards Organisation of Nigeria. D. the number of employees reporting to one superior
B. Federal High Courts in Nigeria. should be kept to a workable maximum.
C. Food and Drugs Department of the Federal Ministry of
Health. 46. Which of the following makes other functions of business
D. Local government health inspectors. its appendages?
A. Production. B. Marketing.
40. Which of the following maxims negates the principle of C. Finance. D. Personnel.
collective bargaining?
A. Individual employees have weak bargaining base. 47. The use of computers in modern banking industry is a
B. Individual employees attain strength when they come reflection of
together in a union. A. competitive development B. scientific development
C. Only members of the union can benefit from C. economic development
agreements negotiated by the union. D. technological development
D. Collective bargaining covers the vast majority of
employees, whether union members or not. 48. When an oil exploring and mining company builds a health
centre in one of the communities where it operates, such
41. NACCIMA stands for a company is
A. Nigerian-American Centre for Culture Industries, A. currying favour from local people
Mines and Arts B. finding a way to spend excess profits
B. Nigerian Association for Culture, Civics, Industries, C. fulfilling part of its social responsibility
Minerals and Arts D. investing its idle funds.
C. National Agency for Culture, Civilization, Investments,
Manufacturing and Agriculture 49 The West African Clearing House became legally
D. Nigerian Association of Chambers of Commerce, operational on
Industries, Mines and Agriculture. A. 1st July, 1976 B. 25th June, 1975
C. 14th March, 1975 D. 3rd May,1974
42. For the establisment of a powerful consumers’ association
in Nigeria to exist, there must be 50. The Lake Chad Basin Commission was founded to enable
A. financial and moral support from the public. member states.
B. honest and committed leadership.
C. allocation of goods from the producers. A. expand the volume of water in the Lake for fishing
D. freedom from external influence. activity
B. increase navigational activities on the lake
43. Which of the following is the most important business C. dam the lake for electricity and agricultural purposes.
resources? D. co-ordinate their efforts in managing the use of the
A. Money. B. Management lake’s resources.
C. Materials D. Manpower.
Commerce 1995
1. What are the factors with which commercial undertak
2. The development of commercial activities in Nigeria was
ings can be distinguished?
facilitated largely by
I Size of the undertakings.II Profits generated. A. a good transport system
III Forms of ownership.IV Location of the undertak B. the indigenization decree
ings. C. a convenient medium of exchange.
D. a high level of production.
A. I and II only. B. I and III only.
C. II and III only. D. III and IV only.
C. bank overdrafts D. discount houses.
3. In which of the following sets of occupations can an
14. Factoring is a trade debt term used when the agent buys
industrial worker be found?
all the trade debts of the
A. Extraction, commerce and construction A. importers B. exporters
B. Manufacturing, extraction and banking. C. nations D. customers
C. Construction, quarrying and insurance.
15. The financial index which compares current assets directly
D. Manufacturing, extraction and construction.
with current liabilities is known as current
A. turnover B. capital
4. Construction activities include the building of houses and
C. ratio D. balance
roads as well as
A. bricklaying B. shoemaking 16. Rights issue means the
C. blacksmithing D. car assembling. A. issue of shares to the directors of a company on
favourable terms
5. If a partnership deed is silent on how profits are to be
B. issue of shares by a company only to the founders of
shared, partners share profits
the company
A. in the ratio of the value of business secured by each
C. right of shareholders to vote on any issue
partner for the partnership
D. issue of shares to shareholders on favourable terms.
B. in the ratio of partners’ capital contributions
C. in an equal proportion, irrespective of partners’ capital 17. Profit that is expressed as a percentage of the cost of
contributions goods sold is referred to as
D. according to duties performed by each partner. A. margin B. mark-up
C. gain percent D. gross profit.
6. Which of the following information is contained in the
Articles of Association of a limited liability company? 18. Given: N
A. Rights and obligations of directors Opening stock 40,000
B. Objectives of the company. Purchases 115,000
C. Amount of share capital. Closing stock 60,000
D. Limitation of liability of shareholders. Sales 250,000
7. The merger of two companies producing the same type of What is the cost of goods sold?
products is an example of A. N155,000 B. N95,000
A. vertical integration B. horizontal integration C. N50,000 D. N30,000
C. lateral merger D. an acquisition.
19. In the channel of distribution, which of the following sets
8. One of the implications of the incorporation of a company is entirely made up of middlemen?
is that A. Wholesalers, retailers and agents.
B. Manufacturers, consumers and retailers.
A. it is more difficult for the company to raise loans
C. Wholesalers, agent and consumers.
B. the company can sue but cannot be sued
D. Retailers, manufacturers and wholesalers.
C. the company’s property becomes distinguished from
that of its member 20. Goods imported into a country for the purpose of re-
D. its members become liable for all the debts of the exporting attracts a rebate known as
company. A. customs draw back B. export royalty
C. incentive D. export rebate.
9. The main advantage of a sole trader is the freedom to
A. employ anyone he likes 21. Most foreign trade transactions are paid for through the
B. seek advice from any source C. take quick decisions use of
D. plough all the profits back into the business. A. Central Bank cheques
B. bank drafts drawn by commercial banks on their
10. In the case of voluntary liquidation of a business, the foreign branches
receiver is appointed by the C. irrevocable and confirmed letters of credit
A. creditors B. debtors D. letters of credit authenticated by the embassies of the
C. directors D. shareholders. respective countries.
11. When a company uses more of loans than equity to finance 22. RRF as a scheme introduced by the Central Bank of Nigeria
its business, the company is said to be means
A. bankrupt B. solvent A. Recording and Rediscounting Facility
C. highly geared D. in a strong liquid position. B. Refinancing and Recording Facility
12. The nominal value of a share as specified in the C. Refinancing and Rediscounting Facility
Memoradium of Association and the share certificate is D. Refinancing and Reinvesting Facility.
the 23. Which of the following gives the correct order in which
A. disconted value B. stock value the listed documents are used?
C. face value D. par value A. Debit note, order, delivery note, invoice and state
13. A public limited company can raise long-term loans ment
through B. Order, delivery note, invoice, debit note and state
A. the capital market B. the money market ment
C. Statement, order, invoice, delivery note and state exchange market?
ment
A. Providing long-term loans to large scale enterprises.
D. Invoice, order, statement, debit note and delivery
B. Encouraging people to buy shares and thereby
note.
providing capital for investment.
24. Freight note is a document C. Providing means of assessing the value of a firms’
A. used by government to transport goods from one assets.
country to another D. Enabling firms to wind-up quickly in times of difficulties.
B. issued by a shipping company giving details of
35. The marketing approach by which a firm caries out a
charges
detailed analysis of itself, the consumers and its
C. used for payment for imported goods.
competitors is known as
D. given by an importer to pay for goods at a future
A. market analysis B. marketing mix analysis
period.
C. marketing opportunities analysis D. market survey.
25. An invoice of N600 is marked 5% 1 month, 212% 3 months’
36. The breaking down of a market into separate and
and ‘1% 5 months’. If a customer pays in the second
identifiable elements each with its own special product
month of purchase, how much will he remit to the seller?
requirements is known as market
A. N570. 00 B. N585. 00
A. differentiation B. Segmentation
C. N594. 00 D. N600.00
C. penetration D. identification.
26. Spot market goods are those which are available for
37. Taking a new product to a particular part of a country to
A. immediate delivery B. short-term delivery
test the reaction of consumers to the product is referred
C. long-term delivery D. end of year delivery
to as
27. The main advantage of road transport is that it is A. sales promotion B. sampling
A. convenient and flexible B. cheap and direct C. merchandizing D. advertising.
C. common and fast D. safe and available.
38. A manufacturer can make his product distinguishable from
28. The practice by which an insurance company accepts a those of other competitors by
very large riskand later shares it with other insurance A. providing catalogues for his wholesalers
companies are called B. aggressive sales promotion
A. subrogation B. contribution C. branding and packaging the product
C. re-insurance D. indemnity. D. selling the product at a much lower price.
29. The insurance policy which provides full cover against 39. Which of the following are forms of sales promotion?
all risks at sea is known as A. Advertising, personal selling and publicity.
A. Policy with Particular Average B. Advertising, market skimming and publicity.
B. Policy Free of Particular Average C. Personal selling, packaging and publicity.
C. Marine Freight Insurance D. Advertising, packaging and publicity.
D. Marine Voyage Policy Insurance.
40. A disadvantage of personal selling is that it
30. Berne Union is also known as
A. increases a company’s operating costs.
A. International Credit Union
B. decreases a company’s operating costs.
B. International Documentary Credit Union
C. increases a company’s number of customers
C. International Union of Credit and Investment Insurers
D. reduces a company’s area of patronage.
D. Export Credit Guarantee Scheme.
41. Chinyere agreed to make a dress for Halima with September
31. Which of the following sets of items was used for
20, 1995 as the delivery date. If the dress was not ready on
exchange in Nigeria before money was introduced?
that date, Halima could
A. Cowries, iron rods, brass rods and copper wires.
A. sue Chinyere for damages
B. Iron rods, copper rods, manilla and cowries.
B. sue Chinyere for specific performance
C. Cowries, manilla, brass rods and copper wires.
C. seize another gown from Chinyere’s shop
D. Copper wires, brass wires, cowries, and iron rods.
D. regard the contract between them as terminated.
32. A major liability of a commercial bank arises from
42. Consumer sovereignty means that the consumer is
A. customers’ deposits B. loans and advances
A. a citizen B. always independent
C. overdrafts D. staff allowances.
C. always wrong D. always right.
33. A bank statement is a document
43. When an industry or company is nationalized, the state
A. ordering a bank to pay on demand a stated sum of
becomes
money
A. the majority shareholder
B. containing records of receipts, payments and balance
B. the minority shareholder C. the only shareholder
on an account
D. an equal shareholder with other individuals.
C. used for paying money into a bank account
D. used for regular withdrawal of moeny from a savings
44. The Federal Government made efforts at rendering
account.
public enterprises more efficient and profit-oriented
34. Which of the following is NOT a function of the stock
through the process of C. reduces friction among employees in the process of
A. privatization B. commercialization achieving the organization’s objectives
C. indigenizationD. nationalization D. helps to eliminate industrial disharmony.
45. Which of the following organizations represents those 48. The direct authority of a superior over his surbordinate is
who engage labour in Nigeria? known as
A. Nigerian Labour Congress A. staff authority B. line authority
B. Nigerian Employers Consultative Association. C. line and staff authority D. lateral authority
C. Manufacturers Association of Nigeria.
49. A firm’s organisational structure would change if
D. Nigerian Union of Local Government Employees.
A. one of the major partners dies
46. The practice of assessing employees for payment or B. there is excessive competition
advancement according to their observed achievement C. there is seasonal variation in demand
is called D. the scope of business operation changes.
A. employee ranking B. merit rating
50. The secretariat of the Niger Basin Commission is located
C. job grading D. employee evaluation.
at
47. Motivation is an essential element in management
A. Ouagadougou, Burkina Faso
because it
B. Abuja, Nigeria
A. leads to the improvement of staff welfare
C. Niamey, Niger
B. encourages individuals to work towards achieving
D. Bamako, Mali
the organisation’s objectives
Commerce 1997
1. Which of the following are the components of and discharge my social responsibilities.What of you?
commerce? MUSA: I am in business to minimize cost, provide
I Trading and advertising products at low prices and as you said, discharge my
II Warehousing and transportation social responsibilities. What of you, Okon and Kalu?
III Packaging and branding OKON:I am in business to cater for the need of the
IV Insurance and banking. consumers at all costs.
KALU:I am in business to make profit, provide quality
A. I and II B. I and III
products at reasonable prices and establish a
C. I, II and IV D. II, III and IV
good reputation for myself.
2. A royal charter was granted to the Royal Niger Company
7. The businessman that may end up not discharging his
to do business in Nigeria in
social responsibility is
A. December, 1888 B. May, 1887
A. Musa B. Okon
C. July, 1886 D. August, 1885.
C. Taiwo D. Kalu
3. Transportation, retailing and wholesaling industries rely
8. The business with the best objectives is
heavily on
A. Okon B. Taiwo
A. banking B. insurance
C. Kalu D. Musa
C. manufacturing D. railway.
9. The business organization in which shareholders have
4. An example of indirect service is rendered by equal votes is
A. civil servants B. family doctors A. sole proprietorship B. partnership
C. household servants D. entertainers. C. co-operative D. limited liability company.
5. The objectives of a business are determined by the 10. The major objective of corporate mergers is to
A. workers B. government A. minimize the effects of taxation
C. society D. promoters. B. increase financial advantage
C. facilitate profit maximization
6. Partnerships are most suitable where
D. enhance economies of scale.
A. the partners are family friends
B. professional are involved 11. When it becomes necessary to liquidate a company, the
C. members can easily raise enough capital first step to be taken is the appointment of
D. government regulations are favourable. A. a receiver B. an auditor
C. an accountant D. a liquidator.
Use the conversation below to answer questions 7 and 8.
MUSA: Taiwo, why you are in business? 12. In which of the following circumstances is a court order
TAIWO: To optimize profit, provide quality products
NOT necessary for the winding up of a company? C. collect duties in ships D. load and unload ships
A. Suspension of business for one year.
25. A close indent is an instruction to an agent to
B. Special resolution of members.
A. order goods from a particular manufacturer
C. Reduction in the number of members below the legal
B. order goods from any manufacturer
minimum.
C. sell goods to any firm
D. Inability to pay its debts.
D. sell goods to a certain firm.
13. One type of investment that has a variable income is
26. The basic distinction between cash discount and trade
A. debentures B. preferred shares
discount is that while trade discount is
C. government bonds D. ordinary shares.
A. for a period of 30 days, cash discount is for a period of
14. A term which indicate that a share is temporarily 3 months
suspended is B. given by a wholesaler, cash discount is given by a
A. ex-dividend B. cum-dividend bank
C. bond D. stock. C. a reduction in the cataloque price of an article, cash
discount is a reduction in the invoice value
15. Leasing is the right to use assets for an agreed period in
D. a reduction in value of sales, cash discount is a
return for
reduction in price of goods.
A. profit B. interest
C. wages D. rents. 27. The cost that arises from failure to load or unload a ship at
the port within a stipulated period is known as
16. The form of business financing which involves pledging
A. excess charges B. demurrage charges
of a specific asset is
C. premium charges D. trade charges.
A. debenture B. mortgage
C. loan D. bond. 28. The mode of transportation that is noted for ontime
dependability and low cost per unit on goods carried is
17. The total amount that a company is allowed to raise
A. pipeline B. air
according to its memoradum of association is known as
C. rail D. road.
A. issued capital B. authorized capital
C. called-up capital D. paid-up capital 29. A person who undertakes any risk in insurance business
is known as
18. A public limited liability company having a nominal capital
A. a broker B. an underwriter
made up of 200 000 ordinary shares of 50k each decided to
C. an insurer D. an actuary.
issue 50% of it to the public
What is the authorized capital? 30. The main purpose of insurance is to
A. encourage business to survive and grow
A. N40 000 B. N50 000
B. ensure that facilities are available for operations
C. N100 000 D. N200 000
C. accept risks and extend credits to policy holders
19. The turnover of a firm may be affected by D. spread individual losses over all covered participants.
A. the demand for its product
31. Bank giro is a system where
B. the cost of its goods sold
A. Commercial banks can give loans to all customers
C. its closing stock D. its net assets.
B. a central bank opens accounts for commercial banks
20. The cost of transporting goods to customers is called C. a customer uses a cheque to pay several bills
A. carriage inward B. carriage forward D. a customer closes his account by writing a cheque.
C. carriage paid D. carriage outward.
32. Commercial banks are referred to as departmental stores
21. The main aim of selling directly to consumers by of banking because they
manufacturers is to A. have many branches B. have many customers
A. discourage the activities of middlemen C. are found in the cities D. offer many types of services.
B. make contact with consumers
33. A market where new shares are traded is known as
C. eliminate transportation cost
A. primary market B. stock exchange
D. maximize the profit margin.
C. secondary market D. money market.
22. In foreign trade, document of title is known as
34. When a firm speaks of stock appreciation, it refers to
A. bill of lading, B. bill at sight
A. changes in the value of its stock resulting from price
C. certificate of origin D. declaration form.
movements
23. Excise duties are paid on goods that are B. increase in the price of its shares quoted on the stock
A. imported into the country exchange
B. manufactured within the country C. an unexpected increase in the demand for its stocks
C. exported to other countries D. the value of its stocks in the stock exchange.
D. kept in bonded warehouses. 35. The process of creating more market for a product is
called
24. Stevedores as a term in foreign trade means men who A. advertising B. marketing
A. inspect goods in shipsB. import goods by ships C. promotion D. consumerism.
36. When a vendor supplies newspapers from house to
house and across the streets, the element of marketing 43. The least of the advantages of indigenization is that
mix involved is A. the standard of living of the indigenes is improved
A. product B. price B. the economy is controlled by the nationals
C. promotion D. place C. entrepreneural skill is developed
D. foreigners’ domination is avoided.
37. The main advantage of using cinema as an advertising
medium is that it is 44. The main objective of a trade association can best be
A. cheap B. accurate described as promoting and protecting
C. accessible D. informative. A. the products B. common interest
C. the market D. customer’s interest.
38. When old customers stick to the old place to buy goods
and services, it is known as 45. The management function of evaluating whether
A. goodwill B. personal factor objectives are being achieved is
C. window shopping D. patronage. A. planning B. directing
C. organizing D. controlling.
39. The most important piece of legislation governing
business and commercial activities in Nigeria currently is 46. In a business organization, the annual operation plan or
the budget is a form of
A. Companies Decree, 1968 A. casual plan B. medium-term plan
B. Trade Dispute Decree, 1976 C. long-term plan D. short-term plan.
C. Companies and Allied Matters Decree, 1990
47. A key advantage of delegation is that
D. Banks and Other Financial Institutions Decree, 1991.
A. workers are prepared for higher responsibilities
40. One of the criteria for differentiating consumer markets B. the manager has less work to do
from industrial ones is the C. the manager spends less time on planning
A. type of demand B. type of supply D. the organizing grows larger in size.
C. nature of the services rendered
48. Social responsibility of business requires enterprises to
D. price of the goods.
A. hold annual social parties for the public
41. The over-riding objective of the food and drug act in B. draw their workers only from the immediate
Nigeria is to prevent the environment
A. importation of food and drugs that can be locally C. address themselves to issues relating to the society.
manufactured D. set up social welfare centres in their areas of operation.
B. consumption of food and drugs not tested by the
49. The existing system of governance and the administrative
ministries of health
sub-divisions of a country which affect the operations of
C. adulteration of food and drugs sold in the country
business in the country is described as
D. manufacturers of food and drugs from charging
A. economic environment B. legal environment
excessive prices.
C. political environment D. social environment.
42. The activities of consumers association in Nigeria have
50 Sudden technological changes can have the effect of
not been effective because
making
A. the consumers are too many
A. a company’s management style ineffective
B. the government is not favourably disposed towards
B. a company’s product obsolete
consumerism
C. the control mechanism difficult to implement
C. there is poor enlightenment about consumer rights
D. the motivational factors in the company difficult to
D. the consumers have no medium for expressing their
monitor.
feelings.
Commerce 1998
3. Extractive industries may also be denominated as
1. Which of the following contributed least to the evolution
A. direct industries B. servicing industries
of commercial activities in Nigeria?
C. primary industries D. indirect industries.
A. Development of banks
B. Development of transportation. 4. The primary objective of a business organization is to
C. Development of traders’ unions. A. cater for the needs of its owners
D. Development of currencies. B. work towards making returns
C. assist the government to serve the citizens
2. One of the factors which critically determines the choice
D. improve the standard of living of its proprietors.
of occupation is
A. training B. skill 5. Services which are of absolute monopoly can best be
C. aptitude D. interest. provided by
A. private companies B. limited liability Use the information below to answer questions 13 and 14
companies C. public companies SONU Enterprises
D. public enterprises. Balances Sheet as at 31/3/98
N N
6. One advantage the co-operative society has over the
Capital 6,000.00 Plant/Machinery 2,300.00
ordinary company is that the
Net profit 2,000.00 Motor van 2,000.00
A. latter pays tax while the former does not
Drawings (137.50) Stock 1,250.00
B. former attracts more capital than the latter
Creditors 1,000.00 Debtors 480.00
C. membership of the former is usually more than that of
Accruals 187.50 Bank 3,000.00
the latter
Cash 20.00
D. former, unlike the latter, has limited liabilities.
9,050.00 9,050.00
Use the information below to answer questions 7 and 8
13. What is the current ratio?
Mr Obi is a manager of Obi Agricultural Venture. He makes A. 4:1 B. 4.5:1 C. 5:1 D. 25.5:1
all the decisions and takes all profits from the business.
14 What is the acid ratio?
He had agreed with Alhaji Musa (a farmer) to pool their
A. 2.95:1 B. 4.25:1 C. 4.75:1 D. 5.55:1
resources together and expand their business. They
invites Mr. Abayomi (a cotton grower) to join them. Mr 15. The form of capital which is easily transferred into the
Abayomi agreed on the condition that his liability in the form desired is known as
new firm will be limited to his investment in it. They thus A. working capital B. liquid capital
registered Obi, Musa & Abayomi Agricultural Ventures. C. circulating capital D. capital employed.
7. It can be deduced from the above that Obi 16. If a firm’s turnover is N15,000 and the cost of goods sold
AgriculturalVentures is a is N10,000, what is the percentage of gross profit on sales?
A. sole proprietorship B. general partnership A. 23.3% B. 33.3% C. 50.0% D. 66.6%
C. limited partnership D. joint venture.
17. A machine which enables sales without the physical
presence of a sales attendant is a
8. Which of the statements below is true of Mr Abayomi?
A. computer machine B. vending machine
A. He can assign his shares to another without consent
C. telex machine D. fax machine
of other partners
B. He cannot take part in the management of the business.
18. What document is required when a country imposes and
C. His actions as a limited partner can bind the firm.
valorem import duties on goods?
D. His death will authomatically dissolve the partnership.
A. A mail transfer B. A shipping note
C. A bill of lading D. A consular invoice.
9. A source of capital to private limited companies is shares
issued to 19. Entrepot trade is said to have taken place when goods are
A. the public B. selected persons A. held at the port pending payment of custom duty
C. members of the Board of Directors B. sold in the ship under special regulation
D. Dedicated members of staff. C. imported and then re-exported
D. kept for further processing before sales.
10. Which of the following is an example of a conglomerate?
A. National Electric Power Authority 20. When a price is quoted at F.O.B.it means that the price
B. United Africa Company Nigeria Plc A. excludes loading charges incurred in bringing the
C. The Nigerian Railway Corporation. goods to the dock
D. First Bank Nigeria Plc. B. excludes all necessary shipping charges payable for
insurance
11. Which of the following statements is true of preferred
C. includes all charges payable on shipping a consignment
stockholders?
to the port of destination
A. They have no voting rights at annual general meetings
D. includes charges payable for loading goods onto the
B. They have first claim to company assets before
ship.
creditors
C. They have first claim to company assets after all debts 21. Emeka ordered goods for his retail shop. The manufacturer
have been settled. sells the goods at retail price of N500 but would give it to
D. They share dividends equally with common Emeka at N400. What kind of discount did he get?
stockholders. A. Cash discount B. Trade discount
C. Quantity discount D. Seasonal discount
12. A provision in the charter of a company which gives
holders of common stock the first option to purchase 22. Nigerian Postal Services (NIPOST) facilitates commerce
additional issues of the firms’ common stock is the in all the following ways except through
A. cash on delivery service B. recorded delivery
A. pre emptive right B. shareholders right
service C. express service D. free on board service.
C. ex-dividend right D. oversubscription right.
23. The document with which a manufacturing enterprise
releases stock of raw materials to the factory for
production is called
A. stock release form B. goods received note
32. The oral presentation in a conversation with one or
C. store issues voucher D. materials release note.
more prospective buyers for all purpose of making sales
24. The two main categories under which marine losses is
fall into are A. branding of goods B. personal selling
A. particular loss and average loss C. packaging D. publicity.
B. actual loss and general loss
33. Personnel activities that promote the general image of an
C. total loss and partial loss
organisation are part of
D. voyage policy loss and time policy loss.
A. advertising B. sales promotion
25. Insurance companies operate on the principle of indemnity. C. public relations D. business correspondence.
This means that an insured person or firm collects
34. An agent must not make any secret profits in the
A. only half of the loss suffered
performance of his duties but can only be rewarded by
B. double the value of the loss suffered
his principal through
C. the total sum of the premiums paid prior to the loss
A. remuneration and indemnity
D. damage claims equal to the loss suffered.
B. payment of commission and salary
26. The most important difference between community banks C. granting of business concessions
and peoples’ bank is that the D. forwarding of business links.
A. latter is owned solely by government while the former
35. Sabo and Gambo entered into a contract for the sale of
are not
two baskets of tomatoes belonging to Gambo before the
B. former cater for rural dwellers while the latter caters for
date pf delivery and without any default by Gambo, the
both rural and urban dwellers
tomatoes were stolen.This is an example of termination of
C. former are service oriented while the latter is profit
contract by
oriented
A. breach B. performance
D. latter advances loans to the public while the former
C. fault D. frustration.
advance loans to rural dwellers only.
36. A minor is not permitted to enter into a valid contract
27. The assets, liabilities and general management of a
because he
distressed bank may be taken over by
A. cannot pay the consideration
A. International Bank for Reconstruction and
B. is too young to interprete the law
Development
C. is young in the eye of the law
B. Nigerian Industrial Development Bank
D. may not be able to write the contract.
C. Nigerian Deposit Insurance Corporation
D. Nigerian Bank for Commerce and Industry. 37. A person who is cheated in a business transaction can
28. The type of securities that the stock exchange deals with seek legal remedy
are A. even if the agreement is verbal and the amount involved
A. warrants, currency notes, money orders and postal is large
orders B. only if the business is a sole proprietorship whose
B. cheques, bank drafts, warrants and promissory notes owner is known
C. bonds ivory, treasury bills, debentures and warrants C. regardless of the form of business organization
D. stocks, shares, bonds and warrants. D. only if the transaction is docmented in contract.
29. I. Companies must be registered as private limited liability
38. The most essential element of a product is the
companies
A. price B. utility
II. Companies must have less than 100 shareholders.
C. design D. colour
III. No shareholder may have more than 75% of issued
share capital. 39. Which of the following is a disadvantage of
What of the above are reqirements for admission into the nationalization?
second-tier securities market? A. It promotes poor economic planning
A. I and II only B. I and III only B. The cost of services is not determined by market forces.
C. I, II and III D. II and III only. C. It may lead to rationalization or resources
D. The development of local skills and technologies is
30. An underlying principles in the marketing of goods is
retarded.
that firms should
A. train their personnel B. be consumer oriented 40. An example of a consumer protection agency is the
C. advertise the goods D. sell through outlets. A. Nigerian Bar Association
B. Nigerian Medical Association
31. Product X was introduced into the market at N4.00 with
C. Federal Environmental Protection
its cost of production at N3.90 while competing
D. Manufacturers Association of Nigeria.
products are selling at N4.50. What pricing policy are
producers of X adopting? 41. The body that organizes, promotes and participates in
A. Market skimming B. Market penetration local and foreign trade fairs is the
C. Product live promotion
A. Ministry of Commercial and Tourism
D. Above the market pricing.
B. Ministry of Finance C. Chambers of Commerce
D. Export Promotion Council. 46.
EXTERNAL INTERNAL EXTERNAL
42. The Continental West African Conference is a ENVIRONMENT ENVIRONMENT ENVIRONMENT
A. group of aWest African countries trading in the
same products Which of the following sequences can best fit into the
B. conference to foster unity among the West African structure above?
countries A. People control ideas
C. group of shipping lines operating on the same West B. Material production ideas
African route C. Finance marketing product.
D. trust with shareholders from all West African D. Materia production product.
countries.
47. When a business enterprises provides free service to its
43. The main function of thrift, credit and loans environment, the services is said to be a
co-operative societies is to A. civic responsibility B. philanthropic
A. educate their members C. consideration D. social responsibility.
B. collect money from their members
C. disburse money to their members 48. Inventory control is an aspect of
D. raise investment finance among their members. A. operations research B. materials management
C. the organizing functions D. span of control.
44. Management is described as
A. getting things done through people 49. The reduction of import duties among the member
B. implementation of business decisions countries of ECOWAS is an example of
C. the number of levels in an organization A. preference duties B. preferential treatment
D. the people in authority in an organization C. preference tariffs D. preferential excise
45. Under normal circumstance, a business enterprise can 50. In a common market, member countries agree basically to
be ideally structured A. place bans on other countries’ products
A. by products, function or territories B. wage war against other countries
B. around the personalities in the enterprise C. establish common barriers against countries outside
C. on the rulling of the management the market
D. on the basis of an order from stockholders. D. negotiate with countries outside the market for
favourable terms of trade
Commerce 1999
1. The conversion of raw materials into finished products one else without permission from other shareholders
creates B. their annual accounts are made avaible to the
A. marginal utility B. place utility corporate affairs commission
C. form utility D. time utility C. shares can be offrred for sale on the stock exchange
2. Commerce makes it possible for man to live in a D. Shares can be offered for sales through an issuing
A. complex and organized society house.
B. society characterized by subsistency 6. The primary motive behind an individual engaging in
C. society characterized by dependency production is to
D. simple and organized society. A. fully engage all the factors of production
Use the information below to answer questions 3 and 4. B. make available goods and services
C. meet projected profits.
Aboki Plc became insolvent and decided to wind up to D. meet basic human needs.
meet the legitimate claims of its creditors. Babalawee
was called in to manage the dissolution. 7. Musa obtains wool from his sheep, spins and transforms
it into cloth which he sells to consumers. This is a form of
3. After paying the debts of Aboki Plc, the balance goes to A. vertical integration B. horizontal integration
A. Aboki Plc B. Babalawee C. forward integration D. backward integration.
C. shareholders D. creditors.
8. A company has an authorized capital of 40 million at N1
4. Babalawee is a per share, out of which 32 million shares have been
A. a claimant B. a manager issued and fully paid-up.The remaining 8 million shares
C. an assessor D. a receiver. have
A. been issued but have not been paid up
5. A common requirement for public and private limited B. been applied for but not issued
companies in Nigeria is that C. not been paid-up D. not yet been issued.
A. a shareholder cannot transfer his shares to some
9. An abridged version of a company’s income statement payment for goods purchased
for 1993 contains the following information: A. can refuse to pay on due date since it is only a
promise.
N(million)
B. is bound to redeem the not for cash on due date
Turnover 286.5
C. is not bound to renew the note before payment
Cost of goods sold 147.5
D. can return the goods purchased and refuse to pay.
Overhead and other expenses 85.5
Taxes due for the year 26.9
17. Kamaldeen is a seller in a hire-purchase agreement with
What was the company’s profit before taxes for 1993? Emeka. By law, Kamaldeen cannot recover the hire
A. N26.9 million B. N53.5 million purchased goods. This is an instance of a restriction on
C. N139.2 million D. N286.5 million
A. Emeka’s right to terminate the agreement
10. A business whose owners enjoy loan facilities on the B. Kamaldeen’s right to re-hire the goods
basis of personal goodwill is a C. Emeka’s right to breach the agreement
A. commercial bank B. thrift society D. Kamaldeen’s right to terminate the agreement.
C. co-operative society D. community bank
18. The main documents sent to an importer of goods by the
11. Which of the following is not a veritable source of funds exporter are
to a public limited liability company? A. invoice, consular invoice, certificate of origin, freight
A. Government financial grants note, indent and insurance policy.
B. Advances and loans from banks. B. indent, bill of lading, certificate of origin, invoice and
C. Internally generated funds. bill of exchange
D. Funds from the sale of shares. C. certificate of origin, bill of exchange, invoice, insurance
policy, indent and bill of lading
Use the document below to answer questions 12 and 13.
D. bill of lading, invoice, insurance policy, consular
N200,000.00 Liverpool, U.K, June 2, 1995 invoice, certificate of origin and bill of exchange.
Three months after date, pay to or to the order of 19. The document that indicates instant payment of cash for
Mr. Okon Etim Esin goods whenever they are delivered is
A. credit note B. proforma invoice
Two hundared thousand ............................................Naira
C. debit note D. statement of account.
Payable at First Bank, Plc.
20. Which of the following documents permits an importer to
Lagos Imo Edit Enoh inspect his goods before the arrival of the bill of lading?
No 5Due Sept., 2 1995 Liverpool. A. Bill of sight B. Import invoice
C. Consular invoice D. Bill of exchange
12. Okon Etim Esin is the
A. debtor B. creditor C. exporter D. importer 21. The overriding advantage of home trade over foreign trade
is
13. The document represents a A. accessibility of seller to buyer
A. bill of exchange B. cheque B. absence of many documents
C. money order D. promissory note C. ease in language of transaction
14. The term 5 Net 7’ on an invoice means that D. ease in form of payment.
A. 5% discount will be allowed on the price charged if 22. A distinction between Comprehensive Insurance and
payment is made within seven days Third Party Insurance is that the latter covers damages
B. 5% discount will be allowed on the price charged if A. caused by the insured vehicle
payment is made after seven days B. to the insured vehicle
C. 5% surcharge will be made unless payment is made C. caused by the other vehicle
within seven days D. to the driver of the insured vehicle.
D. 5% discount will be allowed on the price charged only
if the goods are bought within seven days. 23. The rate at which a central bank discounts first class bills
is called the
15. Kabir receives two quotations. Ade quotes N100 less A. fixed rate B. bill rate
20% trade discount, while Benson quotes N100 less 30% C. bank rate D. interest rate
trade discount and 10% cash discount. If Kabir wants to
take advantage of trade and cash discount, then 24. The principle of subrogation states that
A. an insured person should be indemnified to the
A. the materials should be supplied by Ade tune of the amount insured
B. the materials should be supplied by both of them B. an insurance company can stand in place of the
C. the materials should be supplied by Benson insured in dealing with third party
D. Benson should be asked to reduce his trade C. only a person who likely to suffer loss should take
discount. out an insurance cover
16 A company which issues a promissory note in lieu of

D. there must be a close connection between the actual A. seller B. profit
loss suffered and risk insured. C. product D. buyer.
25. Tolu purchased goods from Yemisi and is to pay 36. Adigun displays goods of different makes on shelves
custom duties before collection. The goods are likely to in his supermarket. This is an exmple of
be collected from A. invitation to treat B. offer to sell
A. a manufacturer’s warehouse C. offer to purchase D. invitation to sell.
B. a bonded warehouse C. an importer’s warehouse
37. The process of bringing a company under exclusive state
D. a wholesaler’s warehouse.
ownership and control is known as
26. The three major functional units which the modern A. nationalization B. commercialization
computer has are C. indigenization D. privatization.
A. the input, the processor and the output units
38. Q acting as the agent of P, lawfully and reasonably incurs
B. the black box, output and input units
the amount of N350 as expenses. If Q comes to P for
C. BASIC, COBOL and output units.
payment, this is an instance of P’s duty to
D. BASIC, the processor and PASCAL.
A. remunerate Q B. repay Q
27. I foreign investment. II Long-term lending III. Short-
C. indemnify Q D. settle Q
term lending IV. Foreign exchange reserve V. Short-term
borrowing. Which combination of the above include 39. In a hire purchase agreement between Argungu Ltd and
capital account in international trade? Maikudi, Argungun Ltd inserted the provision that it can
A. I, III and IV B. II, III and IV enter Maikudi’s premises at any time and remove the hired
C. II and V D. I and II vehicle for any breach.This provision is
A. lawful to both B. unlawful to both
28. The elimination of faults in a computer program is called
C. beneficial to both D. detrimental to both.
A. console B. debug C. dump D. loop.
29. Aliyu bought 100 share at the stock market through a 40. In every simple contract, the price which is paid to
stockbroker. He was told the price of each share was N3 purchase a promise is called
cum. div . This means that Aliyu A. offeree B. acceptance
A. is entitled always to a cummulative dividend on the C. consideration D. representation
shares
41. One major disadvantage of a cartel is that it
B. is entitled to the next dividend accruing from the
A. maximizes productive efficiency
shares
B. brings the merging firms under control
C. will not be entitled to the next dividend due to the
C. maximizes profits from operation
shares
D. eliminates competition and waste.
D. still owes N3 on the shares which will be subtracted
from the dividends. 42. Staff position in an organization borders on
A. authority B. advice
30. The forum for the selling and buying of securities of small
C. responsibility D. control.
and medium companies is called
A. Second Tier Foreign Exchange Market 43. The line function in a typical manufacturing enterprise is
B. Foreign Exchange Market normally performed by the
C. Securities and Exchange Commission A. public relations department
D. Secon Tier Security Market. B. estate or properties department
C. marketing department
31. A wholesale dealer in securities is known as
D. legal department.
A. A stockbroker B. speculator
C. jobber D. stag 44. I Money and machine II. Materials and money. III
Market and I Man IV. Materials and Man.
32. Modern business philosophy emphasizes
Which combination of the above are basic requirements
A. quality products B. customer satisfaction
as business resources?
C. sales volume D. public relations.
A. I and II B. II and III
33. The main role of advertising is to C. I and IV D. II and IV.
A. convince prospective buyers to buy
45. Under what management function would the motivation
B. show the actual shape, form and colour of the products
of employees fall?
C. inform people where to obtain goods and service.
A. Staffing B. Controlling
D. capture the attention of people.
C. Organizing D. Directing.
34. The concept of limiting the types, sizes and other
46. The main thrust of government policy of evolving good
characteristics of a product line without
business environment in Nigeria is the need
sacrificing utility or durability is called
A. to attract local and foreign investors
A. simplification B. standardization
B. for more export commodities
C. specialization D. satisfiying.
C. for consumer oriented products
35. The focal point of all marketing efforts is the D. to have viable local markets.
47. Which of these sets of external environmental factors
affect a business operation? 49. Which of the following group of countries are members
A. Competition, industry and product of the Niger Basin Commission?
B. Competition, labour and political A. The Republic of Guinea, Burkina Faso and Nigeria
C. Political, cultural and labour B. Ghana, Liberia and the Republic of Benin.
D. Economic, social and legal. C. Mali, Liberia and Nigeria.
48. The right of the public to protection against question D. Ghana, Burkina Faso and Chad.
able products and marketing practices is 50. The proposed monetary integration within ECOWAS
A. an economic aspect of the business sub- region has the overriding benefit of
B. a social responsibility of the business A. improved exchange B. enhanced trade
C. a legal aspect of the business C. enhanced development D. improved relations.
D. a political aspect of the business.
Commerce 2000
Amina Enterprises
1. Government policies relating to the establishment and Balance Sheet as at 30/3/99
operations of businessess are targeted at Liabilities N Assets N
Share capital 400,000 Land 200,000
A. even spread of facilities and employment Reserve fund 200,000 Buildings 150, 000
B. the general improvement of the economy Creditors 110,000 Machinery 200,000
C. increasing the profits of business owners Bills payable 50,000 Implements 20,000
D. Diversification and expansion of businesses. Undistributed
Profits 45,000 Office fittings 5,000
2. The share capital value that forms part of the balance Wages due 5,000 Raw materials 100,000
sheet total is the Finished goods 50,000
Debtors 20,000
A. issued share capital Bills receivable 15,000
B. called-up capital share capital Cash at bank 45,000
C. authorised share capital Cash at hand 5,000
D. paid-up share capital
6. What is the total fixed capital?
3. Bank overdraft as a short term source of fund is A. N675,000 B. N575,000
C. N570,000 D. N550,000
A. a current liability
B. granted to a newly opened account 7. Determine the circulating capital
C. repayable after more than a year A. N250,000 B. N245,000
D. an overdrawn account C. N235,000 D. N225,000
4. The measure of independence available to the individual 8. The term PLC implies that the shares are availble
buisness units that come together is the main difference A. publicly on the stock exhange
between B. privately on the stock exchnage
C. to the public at the comapny
A. vertical and horizontal integration D. publicly in commercial banks
B. merges and acquisitions
C. trust and cartel 9. The application of division of labour should generally
D. consortium and amalgamation bring about
A. increase in the variety of goods and services
5. The major factors that facilitate merchadising are B. increase in the quantity of goods and services
C. cheapness of goods and services
A. communication, advertising and banking D. cost effiiciency in the production of goods and
B. Trading. Warehousing and production services
C. Banking, insurance and transportation
D. Management, insurance and advertising
10. On liquidation of a public limited liability company, the
Use the information below to answer questions 6 and 7 residual owners are the
A. Creditors B. debenture holders
C. preference shareholders
D. ordinary share holders
11. Prodcution involves 20. The current trends in retailing competion in Nigeria
A. changing the form of goods, moving and are
making them available as needed A. self service, after sales service and
B. making goods available where and when branding strategies
needed B. branding, enterprising and differentiation
C. the manufacturing of goods and provisions of of goods and services
services C. advertising and sales promotion strategies
D. the assembling of all necessary parts to D. after sales services and sales promotion
produce a finished product strategies
12. Which of these is both merit and demerit in partnership? 21. The main factors militating against the rapid
A. The bearing of risk growth of trade in Nigeria are
B. Its unlimited nature A. Inadequate transportation network and huge
C. The number of partners capital outlay
D. The withdrawal of a major partner B. Lack of good transportation network and
insecurity of investments
13. A printer that burns the print images onto the C. Lack of motivation and government
photosensitive drum is called attitude towards trade
A. dot matrix printer B. laser printer D. Huge capital outlay and government
C. daisy wheel printer D. thermal printer attitude to trade
14. The insurance principle that requires full disclosure of 22. Mr. Olatunde took up a fire insurance on a property
information on the insured is known as valued at N1000 and the amount insured is N800. The
A. indemnify B. Caveat emptor property caught fire causing a loss of N400. If the
C. Subrogation D. uberimae fidei insurance was taken with the clause “with average’
what is the amount to be paid by the insurance company
15. A bank form used to transfer money from personal A. N560 B. N460
to creditor’s account is called C. N420 D. N320
A. credit transfer form B. debit transfer form
C. customer transfer form 23. The Central Bank differs from commercial banks
D. bank transfer form becasue it
A. renders services to customers
16. A console is a device used in B. carries out foreign exchange transactions
A. moving an indicator on the screen C. issues currencies
B. forming charcters by hearing sensitive ribbon D. discounts bills
C. holding magnetic tape reel
D. communicating between operator and 24. Tourists with no fixed address in a town may
program receive their letters from the post office through a
A. post restante B. recorded delivery
17. The fucntion of a merchant wholesaler is to C. parcel post D. postmaster
A. buy in bulk, store and sell to retailers as
desired 25. An invoice can be described as a
B. bring buyers and sellers together A. contractual agreemnt for the sale of goods
C. Possess title to the good store and sell to B. receipts containing necessary information
retailers about the goods
D. find markets for producers C. document specifying quantity, description,
prices and total value of purchases
18. The computer using linear integrated circuit D. letter specifying the contractul sales of goods
technology coupled with quantification of data between two parties.
in terms of length and distance is known as
A. digital computer B. hybrid computer 26. Product
C. mainframe computer
D. Analogue computer Price Customer Promotion
19. Ocean liners are subdivided into Place

A. cargo liners and tramp liners The chart above represents the
B. coastal liners and cargo liners A. marketing mix relationship
C. passenger liners and cargo liners B. product mix
D. passenger liners and tramp liners C. promotion mix relationship
D. advertising mix relationship
27. The role of public relations is principally to

A. sustain good relationship
B. advertise a firm’s product A. a decree B. a treaty
C. carry out publicity D. create good image C. an act D. a constitution
28. The pratice whereby soft drink manufacturers give away 37. The composite functions of management are
caps, bags and other items when consumers buy their a. planning, supervising, communication and
product is a form of directing
A. Marketing Strategy B. publicity b. coordinating, supervising, staffing and
C. Sales promotion D. Advertising communicating
c. planning, controlling, organising and
29. A group of specialized functions of marketing is directing
A. buying, selling, advertising and packaging d. directing, supervising, motivating and
B. buying, selling, storing and information controlling.
C. buying, selling labelling and promotion
D. buying, selling, skimming and pricing 38. The three components of staffing are
30. The major condition for obtaining loan in thrift a. recruitment, interview and appointment
credit and loans cooperative societies is b. recruitment, selection and placement
A. provision of collateral security c. recruitment, test and placement
B. a high level of eductaion d. recruitment, procurement and appointment
C. an approved project plan
D. possession of a large business. 39. The primary objective of a trade association is to
A. exchange information and negotiate as a pres
31. The type of advertising that seeks to persuade sure group
consumers to buy a particular product is B. establish easy link with government
A. informative advertising C. undertake research work on behalf of members
B. mass and sopecific advertising D. Operates as a group against other groups
C. Persuasive advertising
D. competitive advertising 40. One of the functions of the Niger Basin Commission is to
A. ensure eqaul treatment of African Nations
32. The most important advantage of personal selling B. map out regulations that will guide all
is that it forms of navigation
A. allows sellers to perceive buyer’s needs C. foster close co-operation among West
B. takes place easily on the highways African nations
C. allows sellers to sell their goods quickly D. guaranteed freedom of navigation for all
D. takes place without the permission of West African nations
governemnt
41. The legal aspect of business is designed to
33. The stock exchange helps to provide capital for
industrial projects becasue it
A. protect infact industries from collapse
A. determnines value of shares, stocks and
B. safeguard consumers from undue business
other securities
practices
B. assists companies to change their securi
C. protect business organisation and consumers
ties into cash
D. encourage free exchange among businesses
C. assists goverment in implementing its
monetary policies
42. General Manager
D. renders agency servcives to organisations
and governments
Marketing Personnel Production Financial Secretary
34. A form of money that has gone out of use is
A. commodity money B. bank money Foreman Foreman
C. paper money D. foreign money
35. A shortcoming of the second-tier foreign exchange Work ers Work ers
Work ers
market in Nigeria is that it
A. serves as a mechanism for evaluation an The organisational structure above represents
unrealistic exchange rate of the naira a. line and functional structure
B. contribute to flooding the market with b. functional structure
foreign essential commondities c. line and staff structured
C. contributes to destablizing national re d. line structure
source 43. An aspect of the law which allows an exclusive
D. creates unhealthy competition amongst right for a limited number of years is a
users of foreign exchnage A. patent B. trade mark
C. ratification D. copyright
36. The instument establishing the Economic Community of
West African state in 1975 is 44. The basis elements of a valid contract are
A. offer, acceptance, consideration and witness
B. offer, acceptance, capacity, legality and consider 48. A bus driver operating between Lagos and Jos
ation pledged the owner’s credit in Benin in order to have the
C. offer, acceptance, intention, capacity and legality engine repaired and the bill sent to the owner. This is a
D. offer, intention, acceptance and legality case of
A. agency by necessity B. del credere agency
45. In an organisation, civic consideration arises from C. agency by ratifictaion D. agency by estsoppel
A. its social negative impacts on the community
B. its operations within the environment 49. A chamber of commerce is any association made
C. the profit derived from the environemnt up of
D. the fact that it is registered in that locality A. merchants B. manufacturers
C. entrepreneurs D. importers
46. The main difference between nationalization and
indigenization in terms of 50. The first known legislation to protect consumer
A. efficiency B. profit right in Nigeria is the
C. Technology D. shareholding A. Usualy laws B. Sale of goods act.
47. After registration, a certificate of trading is usually C. Hire purchase act D. Food and drugs act.
issued to
A. Partnership B. Private
C. Public company D. Sole proprietorship
Commerce 2001
1. The pivot on which the wheel of commerce rotates is 7. A form of ownership which exploits the strengths
A. tarriff B. trade of one partners to remedy the weaknesses of the other
C. taxation D. price is a
A. joint partnership B. cooperative
2. A distinguishing characteristics of labour is that it is C. corporation D. joint venture.
A. constant B. expensive
C. mobile D. cheap 8. At the collapse of a business enterprises, the person
appointed to dispose of the assets is called
3. Land as a factor of production does not vary in A. a broker B. an auctioneer
A. quantity B. nature C. a liquidator D. an auditor
C. quality D. cost.
9. Entrusting the management of a comapny to the courts
4. Whhich of the following services does a lawyer to enable the settlement of the company’s
render? oblilgations is an indication of
A. industrial services B. direct A. distress B. closure
services, C. indirect services C. bankrupcy D. liquidation
D. commercial services
10. The financial instrument for borrowing in which
5. The partner that only contributes part of the capital collateral is usually more than the amount borrowed is
used in the formation and running of a business is known A. trust certificate B. detachable warrant
as C. mortgage bond D. convertible securities
A. a passive partner B. an active partner
C. a dormant partner D. a nominal partner
6. One major advantage of a credit and thrift cooperatives

is that
A. it can approach governemnt for a loan
B. it encourages saving habits
C. there are no legal restrictions
D. each member has a vote during meetings,
11. I. Personal saving nations
II. Retained Earnings
III Acrued Taxes 19. The major procedures in the purchase and sale of
goods are enquiry
Which of the items above constitute internal sources of A. quotation, order and invoice
financing for companies B. placement order and invoice
C. bargain, order and invoice
A. I & II B. I & III D. order, sale and invoice.
C. II & III D. I, II & III Use the information below to answer questions 20 and 12
12. The difference between total current assets and total Mr. Awala is a retailer of a single product. He sells at the standard
current liabilities of a business is known as price. He gives a trade discount of 5%, quantity discount of 3%
A. quick ratio B. liquidity ratiio for a volume above 1000 units and a cash discount of 2/10 net 30.
C. working capital D. circulating capital The existing selling price of the product is N100 per unit. Mr.
Bacus purchased 1,500 units of the product on credit and promised
Use the balance sheet below to answer questions 13 and 14. to pay Mr. Awala in cash in the first 10 days after purchase.
20. The trade discount receivebale by Mr. Bacus is:

Mama Trading Company A. N4,500 B. N7,500
N N C. N10,500 D. N12,000
Liabilities Aseets
Capital 140 Fixed 1000 21. If Mr. Bacus fulfil his promise, he will be entitled to
Opening capital 350 Current a cash discount of
Add Net profit 80 Debt 200 A. N2,760 B. N3,000
Curent liabilities 800 Bank 70 C. N6,500 D. N9,500
Cash 50
1,370 1,370 22. Bank Giro is a method of settling debt from a:
A. customer to a bank B. bank to a customer
13. The capital employed is C. customer to another D. bank to another
A. N1,000 B. N1,370
C. N140 D. N50 23. Warehousing is a productive function because it
increases the
14. The capital owned is A. quantity of goods B. utility of goods
A. N2,740 B. N1,350 C. quality of goods D. price of goods
C. N1,150 D. N570
24. A factor neccessary for siting a warehouse is nearness
15. One of the reasons why wholesaling must continue nearness to:
is that A. raw materials B. labour
A. the tax paid by wholesalers on their profit C. Capital. D. consumers.
enhances national revenue
B. by creating artificial scarcity, the wholesaler is 25. Pooling of risk in insurance means that
enhancing competion in the economy, A. compenstaions are paid out of a common fund
C. the wholesaler provides technical advice to the B. two people can pool their risks to be insured
retailer C. two insurance companies can buy two policies
D. the gap between manufacturers and retailer is D. insurance companies should encourage taking
reduced by wholesalers risks
16. A merchant wholesaler is referred to as: 26. The indemnification of Ama by his insurance
A. del-credere agent B. a broker, cecompany after a fire disaster means that he:
C. rack jobber D. a factor A. has been guaranteed by the insurance company
B. will be cleared of any fault by the insurance
17. A proforma invoice is sent to inform a buyer company
about the : C. has been by the insurance company
A. quantity of goods B. prices of goods, D. will be covered to the limit of the amount in
C. designation of goods D. quality of goods the policy
18. The balance of payments of countries is 27. The major difference between insurance and assurance is
A. a record of imports and exports that while insurance
B. a systematic record of transactions among A. takes care of the uncertainty, assurance takes
countries at a given time care of risks
C. the current and the capital accounts and their B. takes care of risks, assurance takes care of
payments uncertainty
D. the trade relationships and payments among
C. hinges on possibilities, assurance is based on 36. The activities aimed at finding out customers’ need
possibilities and satisfaction can be described as
D. is about indemnity, assurance is about life in A. socio-marketing
the future B. macro-marketing,
C. micro-marketing
28. A documenatry bill will normally be acompanied by D. conceptual marketing.
A. sales invoice, bill of lading and insurance
certificate 37. The most effective type of advertising for branded
B. clean bill, bill of lading and insurance cerificate product is
C. bill of lading, consular invoice and A. direct advertising B. indirect advertising
insurance certificate C. informative advertising D. competitive advetising.
D. consular invoice, FOB certificate and bill of
lading. Use the information below to answer questions 38 and 39
Comapnies I, II, III and IV produce and sell electronic videos. C
29. Which of the following best describes the classifi company I sells its video for N14,000 each and offers advice on
cation of computers how to fix and operate them. Company II sells at N14,000 and its
A. mini -computer,speed and size representatives go to install at no additional cost. Company III
B. micro-computer cost and liabilities sells at N15,000 and offers credit sales at N15,500 per video
C. mini-computer, microcomputer and work station, while Company IV sells at N15,000 each.
D. A mini-computer, hybrid and digital
38. Which of these companies are more engaged in
30. The temporary working area of the central procession public relations activities?
unit is called the A. I & II B. I & III
A. C-D ROM B. C-D RAM C. II & IV D. III & IV
C. ROM D. RAM.
39. Which of these companies offer after sales services?
31. The significance of money to modern economic A. IV B. III C. II D. I
systems is that it
A. is used as a means of payment Use the information below to answer questions 40 and 41
B. promotes specialization and exchange
C. measures value and promotes exchange. D. causes Musa rented a room to Adamu for N1,500 and N1,000 part-
inflation and deflation in the economy payment was made. Adamu brought Audu and Jacob his friends
to stay in the room. The two friends later pay the balance of
32. One major charcteristic of credit unions and thrift N500 to Musa
societies is that
A. the legal processes involved in their formation 40. Who are parties to the contract of renting the room.
are rigid. A. Musa and Jacob B. Musa and Audu
B. membership is compulsory to peoplein the same C. Adamu and Musa D. Audu and Jacob.
line of business
C. the contribution of every member depends on the 41. Who is the offeree in this contract?
member’s ability. A. Musa B. Audu
D. a minimum of ten people in the same line of C. Adamu D. Jacob
business can form the union.
42. The maximum number of shareholders in a public
33. The Nigerian Stock Exchange publishes a daily liability comapny is
official list that gives full information on the A. 20 B. 50
A method of transactions agreed to by members, C. 100 D. Unlimited
B. number of participating members in a day
43. One way by which government reduces the
C. changes in the prices and earning of securities
repatriation of capital is through
D. changes in the official rules set by the market.
A. nationalization B. divestiture
34. The main factors that determines the value of a stock on C. indigenization D. naturalization.
the Stock exchangea re dividend and
44. One of the major functions of a chamber of
A. the psychology of the market
commerce is to:
B. capital gain
a. promote and protect trade, industry and agriculture
C. capital appreciation
b. advise members on regulations of other countries
D. warrantpayment.
C. settle disputes that arise out of trade
35. One of the main objectives of the second-tier D. publish books and periodicals desired by members
securities market in Nigeria is to
45. Departmentalization is an aspect of
A. achieve a realistic exchnage rate for the Naira
A. planning B. organising
B. eliminate currency dealing in the black market
C. directing D. controlling.
C. assist companies to raise capital
D. attract investment flow. 46. A functional organisational structure is where:
A. staff performing the same fucntions are C. community responsibility
grouped together D. responsibility to customers.
B. departments performing similar functions are
49. One of the obstacles to achieving the objectives of
gouped together.
ECOWAS is
C. activities of similar nature are grouped
A. lack of common currency B. colonial linkages,
together
C. sovereignty of states D. language differences.
D. the staff performing similar functions are
grouped together 50. One of the main objectives of establishing theNiger
River Basin Commission was to :
47. In the line type of organizational structure
A. embark on a comprehensive survey of the
A. the lines of authority are vertical
available water resources
B. there is the application of division of labour
B. carry out research for the development of fresh
C. specialization is carried to a maximum degree
water fisheries,
D. The llines of authority are horizontally.
C. develop infrastructure to facilitate economic
activties
48. Proper disposal of waste by business firms is one way
D. promote trade among member-states to
of discharging their
improve standard of living.
A. responsibility to government
11. Awarding scholarships and sponsoring sports by
B. environmental responsibility.
a business organization are example of
Commerce 2002
1. The most important factor that delayed the development C. input for further production
of commerce in Nigeria was D. service that provide satisfaction
A. the inefficient means of communication
B. that there were few entrepreneurs 6. The agency that currently oversee the privatization
C. the unavailabity of infrastructural facilities and commercialization processes in Nigeria is the A.
D. that there were few developed markets securities and exchange commission
B. technical committee on privatization and
2. Secondary production has to do with changing the commercialization
A. shape of raw materials through C. Nigeria stock exchange D. bureau of public
construction operation enterprises
B. physical form of raw materials into finished
goods 7. Okeze contracted to sell TV sets to Ojo, unknown to
C. utility of raw material by an engineering them, the sets were stolen in transit. This contract my
process be terminated on the grounds of
D. nature of raw materials through A. bankruptcy B. frustration
manufacturing C. fraudulence D. breach of contract
3. The major responsibility of an entrepreneur is 8. Which of the following countries are member of the
A. employing all factors of production in the lake Chad Basin Commission?
business A. Nigeria B. Benin and Nigeria
B. coordinating and determining the C. Chad and Benin
proportion of what to produce D. Nigeria and Mali
C. planning and organizing all activities in the
business 9. A core investor in the current phase of privatization in
D. directing and controlling all the affairs of Nigeria is one who
the business A. can afford to buy most of the shares of the
enterprises
4. Which of the following best describe the scope of B. will be at the core of the enterprises
commerce? C. can mobilize foreign currency equivalent
A. All forms of commercial exchanges and the to the value of the enterprises
manufacturing industry D. has the technical know-how of the
B. buying and selling and the construction enterprises.
industry
C. all occupational exchanges relating to 10. The agency in Nigeria which ensure that products
industries and commercial activities conform to government quality specification is the A.
D. buying and selling as well as the extraction standard organization of Nigeria
of natural resources. B. Nigeria consumer’s association
C. manufactures association of Nigeria
5. Capital as a factor of production can be used as D. Nigeria chamber of commerce
A. money that is regarded as asset
B. goods that are useful in business
A. advertising strategy A. cover note B. testimonial
B. economic responsibility C. time policy D. proposal form
C. marketing strategy
D. social responsibility 22. The bulls and bears in the Stock Exchange market
help to minimize
12. The commercialization of public enterprises is A. the number of shares and bonds sold
aimed at B. price increases of securities
A. increasing efficiency and making the C. flunctuations in the prices of securities
enterprises self-sufficient D. the elasticity of the prices of securities
B. advertising and promoting the goods and
services of the enterprise 23. Debentures differ from shares in that
C. increased assistance and patronage of the A. they are secured on the company’s assets
enterprises by the public B. ownership is open to the public
D. selling the goods and services of the C. they form part of the capital of the business
enterprises D. rewards are usually paid out of profit.
13. An author is exclusive right to his published and 24. The Stock Exchange is a market where
unpublished works is known as A. long-term securities are sold
A. authors right B. constitutional right B. all types of securities are sold
C. patent right D. copyright C. short term securities are sold
D. medium-term securities are sold
14. Under an endowment policy, the money handed
over to the insured at the expiration of the stipulated 25. A retail cooperative society aims at
time or at death is the A. hoarding manufactured goods
A. indemnity B. surrender value B. cutting off the profits of middlemen
C. lump sum benefit D. insurance premium C. lending money to member at low interests
D. encouraging members to save money
15. The machine used for sending telex message is
known as a 26. A bill of exchange already accepted can be
A. radar B. fax machine discounted by the holder in
C. Dictaphone D. teleprinter A. the Central Bank B. at least two banks
C. his bank D. any bank
16. Which of these insurance principles requires a close
connection between the actual loss suffered and 27. The document issued by the seller which gives
the risk insured? details of the goods he sells is known as
A. Indemnity B. proximate cause A. catalogue B. tender
C. contribution D. subrogation C. price list D. invoice
17. The unit through which the results of a processed 28. Given: I Retail, II export, III Transport, IV import, V
data are displayed is the Insurance, VI banking and finance insurance VII
A. logic unit B. display unit wholesale VIII communication.
C. control unit D. output unit Which of the above are aids to trade?
A. I, II, III and VIII B. III, V, VI and VIII
18. Which of the following is used to inform the C. I, II, III and VI D. II, V, VI and VII
addressee that a registered parcel is ready for
collection? 29. The organizational structure that relates the
A. Express label B. counterfoil positions of specialists to the line managers is
C. telegram D. Slip called
A. line structure
19. The type of computer commonly found in offices B. staff structure
is C. line and staff structure
A. laptop B. desktop D. .functional structure
C. the hybrid computer
D. the main frame computer 30. A wholesaler who possesses the title to the goods
he sell is known as
20. The mode of transporting crude oil to the ports for A. a merchant wholesaler
export purposes is by A. tanker B. rail C. road D. B. a multiple wholesaler
pipeline C. a general wholesaler
D. an agent wholesaler
21. The temporary insurance certificate issued to the
insured before drawing up a policy is a 31. An important principle of a good organizational
structure is
A. ideal standard B. span of control
C. clarity of mission B. inscribed securities
D. adequacy of resources C. bearer securities
D. registered securities
32. A company that is registered with the Corporate
Affairs Commission only without being enlisted 42. In product pricing, which of these elements needs
on the stock exchange is a more consideration that others?
A. public liability company A. the demand for the product
B. joint ventures company B. the demography of the buyers of the
C. limited company product
D. registered company C. the economic conditions in the market
D. the cost of producing the product.
33. A contract for the sale of goods involves the
A. producer, the seller and the buyer of goods 43. The principal objectives of the Central Bank of
B. offering of goods to customers Nigeria can be classified broadly into
C. transfer of title to goods for money A. banker’s bank, lender of last resort and
D. exchange of goods issuance of currency
B service, currency management and
34. The total of the share capital which a company financial intermediation
would be allowed to issue is know as C. banking services, foreign exchange
A. called-up capital B. paid up capital operations and open market operations
C. nominal capital D. issued capital D. service monetary policy and
developmental functions.
35. The process of mobilizing, engaging and
maintaining workers to work for an organization is 44. The letters E and OE stands for
referred to as A. errors of exception
A. staffing B. selection B. errors and omissions excepted
C. recruitment D. employment C. estimated and order error
D. end of error
36. Recognized members of the Stock Exchange who
buy and sell securities on their own behalf are 45. An important issue for consideration in the product
known as element of the marketing mix is the
A. bull B. jobbers A. adequate promotion of the product
C. broker D. stagers B. channel of distribution of the product
C. price of the product
37. Which of the following involves foreign trade? D. planning and development of the product
A. Supermarkets B. chain stores
C. departmental stores D. commodity market 46. A group of companies is a collection of
A. subsidiaries and their holding company
38. Which of the following is a function of employers’ B. firms
association? C. associates and their holding company
A. Undertaking research on behalf of employees D. industries
B. promotion of thrift in workers
C. promotion of workers welfare 47. Which of the following is an example of trade
D. dissemination of information through associations?
sponsored journals A. European Union
B. National Marketing Unity
39. Which of the following industries is normally C. Organization of African Unity
located near the source of its raw materials? D. National Farmer’s Council
A. Footwear B. cement factory
C. textile industry D. automobile assembly 48. Which of the following determines the quality of
the goods that a retailer sells?
40. One of the most important functions of marketing A. The mode of contract of sales
is B. the type of manufacturer
A. encouraging research activities to meet C. the regulations regarding sales in the area D.
needs the location of his shop
B. creating classes of merchants among
businessman 49. An advantage of hire purchase to the
C. the extension of markets for businesses consumer is the
D. providing finances to businesses A. economics of scale in production
41. Securities on which the buyers are not issued with

certificates are called
A. authorized securities
B. possession of goods before payment B. receive their dividends after other
C. increase in turnover and profits share holders
D. low interest rate chargeable C. receive their dividends before other
shareholders.
50. The founders shares are usually referred D. Are not entitled to any dividends.
to as deferred shares because the holders
A. are entitled to cumulative dividends
Commerce 2003
1. An example of service rendering trade association is 7. What was the amount paid by Ojo?
A. Nigerian Bar Association A. N382,500 B. N425,000
B. Association of Nigerian Miners C. N363,375 D. N61,625
C. Cocoa Farmers Association
D. Manufacturers Association of Nigerian 8. How much was the trade discount?
A. N42,500 B. N27,500
2. An obstacle to international trade is C. N22,500 D. N20,000
A. Trade imbalance between countries
B. Availability of local market 9. The basic function of the Nigerian Ports Authority is to
C. Quantity and quality of labour A. Ensure that the right calibre of personnel is
D. Cost of finance employed at the ports
B. Coordinate and regulate the activities of shipping
lines
3. The right of ownership with respect to goods or property C. Facilitate and control the movement of goods and
is services into and out of the country
A. right of occupancy B. proxy D. Coordinate the activities of all the seaports in the
C. title country
D. certificate of occupancy
10. The concept that refers to the sale, transfer or exchange
4. The main motive of chambers of commerce and trade of goods and services is
association is to A. Industry B. Trade
A. assist the government in achieving its C. Tariff D. Marketing
objectives
B. protect the interest of consumers 11. A guarantee given by one person or party to another in
C. maximize profit which the integrity of the person is assured is
D. protect and promote the interests of members A. Fidelity B. Term assurance
C. Subrogation D. Indemnity.
5. A pattern that shows the kinds of participants involved
in the production distribution and ultimate use of a 12. A firm that adapts itself to delivering the desired
product is referred to as satisfaction more and effectively and efficiently than
A. selection B. strategy its competitors is said to be practicing.
C. structure D. synergy A. Price concept B. Distribution
concept
6. Goods that are manufactured or acquired by the seller C. Product concept D. Marketing
after the contract of sale are concept
A. Specialty goods B. Future goods
C. Specific goods D. General goods 13. The payment made periodically in respect of an
insurance policy entered into is known as
Use the information below to answer question 7 and 8 A. Bond B. Commission
C. Premium D. Surrender value
Ojo purchased the following items from Sani at the specified
14. An example of service rendered by NIPOST is
prices on credit; 200 cartons of mild at N1000 per carton, 150
A. Electronic mail B. Telephone
bags of sugar at N500 per bag, 50 bags of rice at N3000 per
C. Mail D. Delivery
bag. Sani allowed 10% trade discount and 50% cash discount
if payment is made within the agreed period. Ojo paid within the 15. The focal point of marketing is
agreed period. A. The competitor E. The buyer
F. Profit-making G. Sales
16. The type of marine insurance which covers either damage 27. The location of a business is mostly influenced by
or loss to the vessel and such as caused by it to other A. Market outlet
vessels is B. Management decision
A. Bull insurance B. Time insurance C. Capital D. Environment
C. Freight insurance D. Cargo insurance
28. The evolution of commerce in Nigeria is traceable to
17. The management function that makes the difference in the
intensity of behaviour is A. Period of barter economy as human needs became
A. Coordinating B. Controlling limitless
C. Motivation D. Planning B. Desire by human beings to satisfy their needs
through the services of other people in the society
18. One of the function of seaports is the provision of C. Development of human civilization and the desire
A. Berthing and landing facilities to meet their needs
B. Loading and offloading facilities D. Primitive stage of existence of human beings.
C. Control room for relaying radio messages
D. Ware houses for storage of cargo. 29. One of the requirements necessary for setting up a
business is
19. The process of dividing task into jobs and departments A. Registration B. Advertisement
and of delegating authority is know as C. Knowledge of the business
A. Staffing B. Leading D. Documentation
C. Directing D. Organizing
30. The assembling of products into usable form is known
20. Communication process involves the transmission of a as
message over a selected channel to the A. Construction B. Manufacturing
A. Receiver B. Audience C. Formation D. Creation
C. Sender D. Encoder 31. The government’s policy thrust on the business
environment is to
21. Stimulation of demand is a kind of communication in A. Promote exports B. Attract investors
marketing which connotes C. Be self-sufficient D. Increase production
A. Personal selling B. Sales promotion
C. Advertising D. Merchandising 32. Social responsibility is the ability of an organization to
A. Tackle the socio-economic problem of its
22. A functional structure is an organizational structure in community
which B. Meet the needs of its community
A. Abstract rules are applied C. Contribute to sustaining and developing its
B. Equity prevails community
C. A Specialist enforces his directives D. Operate without disrupting the very essence of
D. There is no hierarchy the environment
23. Entrepreneurship mainly involves 33. The act of a person employing another to enter into a
A. Risk-taking B. Initiating contract on his behalf is known as
C. Skilled manpower A. Business B. Sale of goods
D. Knowledge C. Bilateral agreement D. Agency
24. In the event of the liquidation of a company, the first to 34. The ECOBANK is the initiative of
be settled are: A. Some well-meeting Nigerian shareholders
A. Debenture holders B. The federal government of Nigeria
B. Members of the board C. West African states to foster trade
C. Preference shareholders D. The lagos state government to enhance
D. Ordinary shareholders capital mobilization.
25. The business organization established mainly for the 35. Privatization is concerned with
purpose of carrying out specific assignments for a A. Capital ownership between the public and the
specific duration is a government
A. Joint venture B. Cooperative society B. The dilution of ownership among the public
C. Partnership D. Company C. The individual ownership of companies
D. Government ownership of companies
26. Which of these factors of production is relatively fixed in
supply? 36. Electronic computers differ from human beings in that
A. Capital B. Entrepreneur they process data and minimize errors in a
C. Human resources D. Natural resources
A. Faster and more accurate manner 44. The body charged with the responsibility to register
B. More organized manner shares for subscription on the stock market in Nigeria
C. Faster but less accurate manner is the
D. Slower but more accurate manner A. Securities and exchange commission
B. Nigerian stock-exchange
37. A major benefit derivable from the privatization and C. Nigerian deposit insurance corporation
commercialization of public enterprises in Nigeria is D. Central bank of Nigeria
A. Increase in wages
B. Employment generation 45. An essential factor for evaluating the different sources
C. Information technology of funds for a business is the.
D. Revenue generation A. Decree establishing the business
B. Ownership structure of the business
38. The device which interprets and carries out the
C. Size and the type of the bank
instructions presented to it by the computer program
D. Burden of cost and repayment
is known as
A. Software B. Micro-processor
Liabilities N Assets N
C. Mouse D. Hard-disk
Paid-up capital 200,000 Buildings 50,000
39. The market structure, business conditions and financial Retained earnings 50,000 Plant &
systems in Nigeria constitute the Creditors 50,000 Machinery 35,000
A. Economic environment Bills payable 50,000 Debtors 50,000
B. Political environment Dividends payable 70,000 Fixtures 20,000
C. Cultural environment Stocks 145,000
D. Technological environment Banks 120,000
420,000 420,000
40. The protection of consumers against exploitation by
manufacturers is to ensure
46. What is the owner’s equity?
A. That there are varieties of products
A. N250,000 B. N300.000
B. That the right quality of goods and services
C. N420,000 D.
is sold
N200,000.
C. Increase in production capacity
D. Increase in the level of consumer awareness
47. Find the current ratio
41. The most widely used computer language that focuses A. 1.53:1 B. 1.85:1
on solving science-oriented problems is C. 0.87:1 D. 0.50:1
A. FORTRAN B. BASIC
C. ADA D. COBOL 48. Money can simply be referred to as a
42. Banks are engaged in the business of buying and A. Medium of exchange
selling of B. Means for the settlement of debts
A. Bills of exchange C. Durable asset for doing business
B. Investment of credit D. Standard of value
C. Intangible products
D. Land 49. A type of long-term loan granted to companies with fixed
interest as well as with redeemable and irredeemable
43. A source of short-term finance to companies is
features is referred to as
A. Share capital B. Debentures
A. A debenture B. A bond
C. Retained earnings D.
C. A term loan D. An overdraft
Corporate tax
50. Public debt management is one of the function of a
A. Merchant bank B. Central bank
C. Commercial bank D. Development bank.
Commerce 2004
1. Ships that sail across the ocean and operate on 3. The program that makes up the operating system in a
scheduled timetables are computer is
A. ferries B. ocean liners A. microprogram B. system flowchart
C. tramp steamers D. coastal liners. C. system software D. syntax.
2. Non-insurable risks include 4. When an organization studies a market that is

A. gambling B. damage to property underserved by others and creates a product or service
C. death D. marine problems. for the segment, it is engaged in
A. market integration B. market positioning
C. market orchestration 15. In Nigeria, the body that ensures that its members
D. product differentiation. operate according to their professional ethics is the
A. SON B. NPF
5. Coverage against unexpected events is called C. MAN D. NAFDAC.
A. insurance B. assurance
C. warranty ," D. reinsurance. 16. A transporter who had to sell some perishable goods
without the prior authority of the owner becomes an
6. An insured risk which occurs accidentally as a result of agent by
defects in a ship is A. conduct B. necessity
A. a voyage policy B. a total loss C. ratification D. estoppel.
C. an emergency D. a particular average.
17. Poor sewage disposal, oil spill and indiscriminate refuse
7. Communication enhances business activities by dumping all lead to
A. facilitating interaction between producers and A. land pollution B. water pollution
consumers C. land and water pollution D. air and water pollution.
B. facilitating interaction among media houses
C. ensuring the movement of goods from the 18. One of the advantages of commercialization is that it
producer to the consumer A. encourages entrepreneurship
D. keeping the goods safe until they are needed. B. increases the salaries of workers
C. motivates government to establish more businesses
8. In business, the computer is very important especially D. gives workers on-the-job training.
in
A. fmancial management B. marketing management 19. A common element in all contracts is
C. educational management D. information management. A. offer B. consideration
C. acceptance D. agreement.
9. What is the most important use of promotion in
marketing? 20. Sources of finance to a business include personal
A. Persuasion. B. Conviction. savings, shares, debentures and
C. Information. D. Education. A. loans from IMF B. bank overdrafts
C. central bank loans D. money from political parties.
10. The current highest decision-making body on
privatization and commercialization of public enterprises 21. Charges for loans paid by commercial banks to the
in Nigeria is the Central Bank of Nigeria are called
A. National Council on Privatization A. bank rates B. credit charges
B. Securities and Exchange Commission C. interest rates D. bank charges.
C. Nigeria Investment Promotion Commission
22. In the primary market, new shares are issued through
D. Bureau of Public Enterprises.
A. personal selling, publicity and advertising
B. a prospectus, an offer for sale and a bill of exchange
11. The members of the Niger Basin Commission include
C. advertising, a prospectus and a bill of exchange
A. Guinea, Ghana and Niger Republic
D. a prospectus, an offer for sale and placing.
B. Burkina Faso, Guinea and Nigeria
C. The Gambia, Benin Republic and Chad Republic
23. The instruments of credit include
D. Nigeria, the Gambia and Cameroun.
A. billboards and postal stamps
B. payment vouchers and statement of account
12. Business environment refers to all elements that are
C. bills of exchange and promissory notes
A. outside an organization but relevant to its
D. bills of exchange and salary vouchers.
operations
B. inside an organization but irrelevant to its
24. The shares of a company listed on the stock exchange
operations
for sale are referred to as
C. internal to an organization and relevant to its
A. registered shares B. deferred shares
operations
C. issued shares D. quoted shares.
D. external to an organization but indirectly related
to its operations. 25. What is the role of the capital market in the privatization
exercise in Nigeria?
13. Consumer rights include the right to A. Selling the shares and stocks of the companies
A. credit B. free samples of a product to be privatized.
C. redress D. a share of profits. B. Encouraging private companies to participate in
the exercise.
14. One important requirement for the membership of the C. Negotiating with individuals who want to buy
ECOWAS is public companies.
A. integrity B. independence D. Advertising for government.
C. landmass D. population.
26. In international trade, documentary credit is also known as B. facilitating exhnages among individuals and
A. credit note B. letters of credit firms
C. bankers' drafts D. letter of hypothecation. C. assistaing trade through banking and
insurance
27. A specialized institution in Nigeria that deals"in capital D. enhancing business relationships
investments in the form of stocks, shares, bonds and
debentures is the 37. The acronym PLC is used to identify a
A. Securities and Exchange Commission A. comapny limited by shares
B. commodity market B. private company limited by shares
C. Nigerian Stock Exchange C. public company limited by shares
D. Central Bank of Nigeria. D. company limited by guarantee
28. A group of assets which a business acquires with the 38. Commerce includes all the occupations concerned with
intention of reselling them are referred to as A. sales B. production
A. current assets B. investment assets C. marketing D. distribution
C. fixed assets D. intangible assets.
39. Factors of production can be described as the
29. Authorized share capital is also known as A. resources required for the provision of goods
A. called-up share capital B. paid-up share capital and services
C. registered share capital D. issued share capital. B. skills involved in deciding and directing the flow
of goods
30. An action taken by a company outside its object clause C. monetary tools employed by government to
is regarded as ensure stable production
A. ultra vires B. a trespass D. elements involved in the process of formulating
C. uberrima fides D. caveat emptor. policies on production
31. The strategy adopted by a flrIn that ceases to operate 40. Flucntuations in the supply of goods may be eliminated
at one or more locations because of inactivity is if the distribution system maintains
A. rejuvenation B. focus A. modern technology B. a team of retailers
C. diversification D. consolidation. C. warehouse services D. sufficient midlemen
32. A written partnership contract is known as 41. Loan schemes by thrift ocieties are
A. an invoice B. a deed A. mortage schemes B. conventional schemes
C. a prospectus D. a proposal. C. mutual schemes D. unconventional schemes
33. The merger of a textile mill, a cement company and a 42. An internal demand for goods to be purchased or
tannery is referred to as drawn from stock is
A. conglomerate merger B. horizontal merger A. a quotation B. a requisition
C. lateral merger D. vertical merger. C. a tender D. an order
Use the diagram below to answer questions 34 and 35. 43. The term 4 net 7 on an invoice means that
Occupation A. 4% surcharge will be made unless payment is
made within seven days
B. 4% discount will be allowed on the price charged
i Services only if the goods are bought within seven days
ii
C. 4% discount will be allowed on the price charged
if payment is made after seven days
iv v Public vi D. 4% discount will be allowed on the price charge
Extraction Trade
if payment is made within seven days.
iii
44. An order sent by an importer to an overseas supplier
34. As the branches indicate, iv is stating the details of goods reqired is known as
A. commerce B. exchange A. export invoice B. ship’s manifest
C. finance D. construction C. an indent D. bill of lading
35. What does v represent? 45. Organising trade fairs in Nigeria is the responsibility of
A. Aids to trade B. Advertising A. National Directorate of Employment
C. Manufacturing D. Industry B. Federal Ministry of Commerce
C. Trade Association
36. The most important of computer is D. Chamnbers of Commerce
A. helping people to improve thier profits
A. industrial policy and harmony
46. International trade takes place as a result of B. budget and budgetary control
A. niformity in costs of production C. budget and industrial policy
B. inequitable distcribution of natural resources D. environmental protection policy
C. parity in the level of industrialization
D. similarities in climatic conditions 49. Discounts offered by firms to midlemen for bulk
purchases are
47. The use of vending machines in retailing is hindered in A. trade discounts B. sales bonanza
a developing economy owing to C. cash discounts D. seasonal discounts
A. industrial policy and harmony
B. low level of education 50. Goods are of merchantable quality if they
C. ineffective communication system A. conform to description
D. lack of steady power supply B. are of equal weight
C. are of the same quality
48. Manufcturers’ Association of Nigeria contributes to D. conform to buyers’ purpose
development by advising the government on

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16. What is the major function of the wholesaler?

16 A company which issues a promissory note in lieu of

19. Ocean liners are subdivided into Place

27. The role of public relations is principally to

6. One major advantage of a credit and thrift cooperatives

20. The trade discount receivebale by Mr. Bacus is:

41. Securities on which the buyers are not issued with

2. Non-insurable risks include 4. When an organization studies a market that is

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