Commerce 2024 JAMB
Questions
Commerce 2024
- Commerce is defined as the study of how A. man utilizes the resources in his physical environment
- man produces, distributes and consumes his goods and services
- man buys, sells and distributes goods and services
- raw materials are changed into finished goods.
- Use the data belowto answer questions 9 and10. MBV Enterprises
Balance Sheet as at 31st December, 1992
N | Assets | N |
60,000
5,250 65, 250 6, 600 58,650 9,730 |
Fixed Assets Fittings
Vehicles |
9,200
7, 500 |
Current Assets Stock in hand Debtors
Cash at Bank Cash in hand |
8,800
15,500 21,000
6,380 |
|
68,380 |
Liabilities N Capital
Balance as at
- The type of activity which turns processed raw materials into consumer and industrial goodsis described as
- extractive B. manufacturing
- constructive D. processing
- The production process that combines two or more raw materials into one end product is
- conditioning B. blending
C.merging D. synthesis.
- A demonstration of social responsibility by a business
Jan. 1,1992
Add Net Profit Less Drawings
Current Liabilities Creditors
16,700
51,680 68,380
is the payment of
- taxes to government
- dividends to shareholders
- interest on loans
- premium forinsurance.
- A distinguishing characteristic of a limited liability company is thatit
- is a collection of many sole proprietors
- is a multiple partnership
- can sue and be sued
- has limited resources.
- Which of the following takes place when firms producing at different stages in the same industry combine?
- Conglomeration B. Verticalintegration C. Horizontal integration D.Cartel.
- Which of the following groups is paid first when a firm liquidates?
- Perference shareholders.
- Debenture holders
- Ordinary shareholders.
- Cummulative preferenceshareholders.
- Compulsory dissolution of a business can arise from A. an agreement by the owners
- a declaration by a court of law
- the termination ofitslife
- an unfavourableeconomic climate.
- What is the circulating capital of the sole proprietor? A. N27, 380 B. N34,980
- N36,180 D. N51,680
10 What is the working capital as at December 31, 1992? A. N65, 250 B. N60, 000
- N48,650 D. N41,950
- A company earned a total revenue of N108 million with a total cost of N91 million in 1991. Ifit paid 45% tax on its gross profit for that year, determine its net profit. A. N24.65 million. B. N17.00 million.
- N9.35 million. D. N7.65 million.
- What are fixtures and fittings in a balance sheet? A. Liquid capital B. Current assets
- Fixed assets D. Working capital
- Government impose import dutiesfor the following reasonsEXCEPT
- to raise revenue for other services
- to act as as a retaliatory measure against other governments
- to discourage the redistribution ofincome at home D. to protect home industries from external competition.
- Sole enterprise may flourish best in
- a mining business B. a retailing business C. an oil exploration business
- a car assembly business
- The use of coin-operated machines to sell goods is a form of
- personal selling B. retailing
- wholesaling D. mail-orderselling.
- What is the major function of the wholesaler? A. Buying from small-scale producers and selling to exporters.
- Buying in bulk and selling in small quantities C. Granting of credit facilitiesto retailers
- Providing information to manufacturers on marketsituation.
- The rate at which a country’s exports exchange for its imports iscalled
- balance of payments B. balance oftrade
- termsof payment D. terms of trade.
- The different between the total payments for imports and the receiptsfrom exports within a given period isreferred to as
- balance of payments B. balance of trade
- comparative cost advantage D. comparative advantage
- A pro forma invoice is NOT required when A. quoting for the supply of goods
- goods are sent on approval
- dealing regularly with a customer
- final prices are uncertain.
- Which of the following statements is TRUE about sea transport?
- All ships have specific routes to ply.
- All ships must be insured at everyjourney
- All ships are insured separately from the crew D. All ships normally arrive at their destination with goods.
- The postal organization which preceded in Nigerian Postal Service is
- Post and Telecommunications
- Post and Telephone
- Post and Teleprinter D. Post and Telegraph.
- Goods discharged from ships on which import duties have not been paid are kept in the
- ordinary warehouse B. public warehouse C. private warehouse D. bonded warehouse.
- A sole proprietor insured his goods worth N200,000 for halfthe value.There was a fire incident in which goods valued at N80, 000 were destroyed. The value of compensation expected from the insurer is
- N40,000 B. N80,000
- N100,000 D. N200,000
- One of the effects of the devaluation of the Naira is that the
- goodsthat can be imported with the Naira have become cheaper
- value of other currencies relative to the Naira have become cheaper
- goodsthat can be exported from Nigeria have become costlier
- importsthat can be bought with the Naira have become costlier.
- Drawing two parallel lines across a cheque meansthat is has to be paid into the account of the
- payee B. drawer
- drawee D. payer.
- The financial institution established to boost Nigeria’s trade with the rest of the world is called
- Nigrian Deposit InsuranceCorporation
- Nigeria Economist ReconstructionFund
- Nigerian Industrial DevelopmentBank
- Nigerian Export-ImportBank.
- Which of the following is both direct and indirect credit enterprises?
- Co-operative and thriftssociety.
- Retail co-operative society.
- Consumer co-operative society.
- Wholesaler co-operative society.
- The business in the stock exchange is characterized essentially by
- dealing. B. brokerage
- speculations D. transactions.
- The Second-Tier Securities Market is
- an apendage to the Nigerian Stock Exchange
- a member ofthe Nigeria Stock Exchange
- meant for the shares of the quoted private companies D. a regulating arm ofthe Nigeria Stock Exchange
- The elements ofthemarketing mix are
- product, promotion, place and price.
- personal selling, advertising andresearch.
- promotion, production, place and price.
- procurement, price, product andplace.
- Which of the following items has the shortest effect on the consumer?
- Fashion. B. Innovation.C. Fad D. Attribute.
- Which ofthe following is a form ofsales promotion? A. Advertising on radio. B. Offering free samples. C. Distributing printed materials.
- Advertising on Television.
- One advantage of personal selling over all other elements of promotion isthat
- it can provide instant feedback
- it is very cheap in terms of cost per contract
- it does not need to use massmedia
- sales people are well trained.
- Which of the following must be present in an agency by agreement?
- Intentions. B. Will.
- Consent. D. Authority.
- An agreement to sell is distinguishable from a sale because in the former, the transfer of goods is
- not anticipated. B. not discussed.
- deferred. D. immediate.
- Mr. Amusa says to Mr Bello ‘I will sell you this hat for N30’. And Mr Belloreplied ‘I will payN29’. The contract is
- an offer and acceptance B. an implied contract. C. a complete simple contract.
- an offer but no acceptance.
- Nationalization of an industrymeansthat its ownership becomes that of
- government. B. shareholders.
- taxpayers. D. indigenes.
- The Comprehensive Import Supervision Scheme wasset up by the federal government in orderto
- reverse Nigeria’s unfavourable balance.
- promote fair trade between Nigeria and other countries. C. counteract all fraudulent business deals of Nigerians with other nationals.
- ensure that imports into Nigeria are of the correct quality, value and quantity.
- Which of the following has powersto order withdrawal of a particular food item from circulation?
- Standards Organisation ofNigeria.
- Federal High Courtsin Nigeria.
- Food and Drugs Department ofthe Federal Ministry of Health.
- Local government health inspectors.
- Which of the following maxims negatesthe principle of collective bargaining?
- Individual employees have weak bargaining base. B. Individual employees attain strength when they come together in a union.
- Only members ofthe union can benefit from
agreements negotiated by the union.
- Collective bargaining covers the vast majority of employees, whether union members or not.
- NACCIMA standsfor
- Nigerian-American Centre for CultureIndustries, Mines and Arts
- Nigerian Association for Culture, Civics,Industries, Minerals and Arts
- National Agency for Culture, Civilization, Investments, Manufacturing and Agriculture
- Nigerian Association ofChambers ofCommerce, Industries, Mines and Agriculture.
- For the establisment of a powerful consumers’ association in Nigeria to exist, there must be
- financial and moral support from the public.
- honest and committed leadership.
- allocation of goods from theproducers.
- freedom from externalinfluence.
- Which of the following is the most important business resources?
- Money. B. Management
- Materials D. Manpower.
- The harmonious relationshipamong the various units in an organization is ensured through
- co-ordination B. motivation
- planning. D. leadership.
- The principle of span of control stipulatsthat A. an employee should report to only one superior B. managers must demand accountability from their subordinates
C.resources have to be economized within thevarious divisions
D.the number of employees reporting to one superior should be kept to a workablemaximum.
- Which ofthe following makes other functions of business its appendages?
- Production. B. Marketing.
- Finance. D. Personnel.
- The use of computers in modern banking industry is a reflection of
- competitive development B. scientific development C. economic development
- technological development
- When an oil exploring and mining company builds a health centre in one of the communities where it operates, such a company is
- currying favour from localpeople
- finding a way to spend excessprofits
- fulfilling part ofitssocial responsibility
- investing its idlefunds.
49 The West African Clearing House became legally operational on
- 1stJuly, 1976 B. 25th June, 1975
- 14th March, 1975 D. 3rdMay,1974
- The Lake Chad Basin Commission wasfounded to enable member states.
- expand the volume of water in the Lake for fishing activity
- increase navigational activities on the lake
- dam the lake for electricity and agricultural purposes. D. co-ordinate their efforts in managing the use of the lake’s resources.
Commerce 1995
- What are the factors with which commercial undertak ings can be distinguished?
I Size ofthe undertakings.II Profits generated. III Forms of ownership.IV Location of the undertak ings.
- I and II only. B. I and III only.
- II and III only. D. III and IVonly.
- The development of commercial activitiesin Nigeria was facilitated largelyby
- a good transport system
- the indigenization decree
- a convenient medium of exchange.
- a high level ofproduction.
- In which of the following sets of occupations can an industrial worker befound?
- Extraction, commerce and construction
- Manufacturing, extraction andbanking.
- Construction, quarrying and insurance.
- Manufacturing, extraction andconstruction.
- Construction activitiesinclude the building of houses and roads as well as
- bricklaying B. shoemaking
- blacksmithing D. car assembling.
- If a partnership deed is silent on how profits are to be shared, partners share profits
- in the ratio of the value of business secured by each partner for the partnership
- in the ratio of partners’ capital contributions
- in an equal proportion, irrespective of partners’ capital contributions
- according to duties performed by each partner.
- Which ofthe following information is contained in the Articles of Association of a limited liability company? A. Rights and obligations of directors
- Objectives of the company.
- Amount of sharecapital.
- Limitation ofliability ofshareholders.
- The merger of two companies producing the same type of productsis an example of
- vertical integration B. horizontal integration C. lateralmerger D. an acquisition.
- One ofthe implications ofthe incorporation of a company is that
- it is more difficult for the company to raise loans B. the company can sue but cannot be sued
- the company’s property becomes distinguished from that of itsmember
- its members become liable for all the debts of the company.
- The main advantage of a sole trader is the freedom to A. employ anyone helikes
- seek advice from any source C. take quick decisions D. plough all the profits back into the business.
- In the case of voluntary liquidation of a business, the receiver is appointed by the
- creditors B. debtors
- directors D. shareholders.
- When a companyusesmore of loansthan equity to finance its business, the company is said to be
- bankrupt B. solvent
- highly geared D. in a strong liquid position.
- The nominal value of a share as specified in the Memoradium of Association and the share certificate is the
- disconted value B. stock value
- face value D. parvalue
- A public limited company can raise long-term loans through
- the capital market B. the money market
- bank overdrafts D. discount houses.
- Factoring is a trade debt term used when the agent buys all the trade debts ofthe
- importers B. exporters
- nations D. customers
- The financial index which compares current assets directly with current liabilitiesis known as current
- turnover B. capital
- ratio D. balance
- Rights issue means the
- issue of shares to the directors of a company on favourable terms
- issue of shares by a company only to the founders of the company
- right of shareholders to vote on any issue
- issue of shares to shareholders on favourable terms.
- Profit that is expressed as a percentage of the cost of goods sold is referred to as
- margin B. mark-up
- gain percent D. grossprofit.
- Given: N
Opening stock 40,000
Purchases 115,000
Closing stock 60,000
Sales 250,000
What is the cost of goods sold?
- N155,000 B. N95,000
- N50,000 D. N30,000
- In the channel of distribution, which of the following sets is entirelymade up ofmiddlemen?
- Wholesalers, retailers and agents.
- Manufacturers, consumers andretailers.
- Wholesalers, agent and consumers.
- Retailers, manufacturers and wholesalers.
- Goods imported into a country for the purpose of re exporting attracts a rebate knownas
- customs draw back B. exportroyalty
- incentive D. export rebate.
- Most foreign trade transactions are paid for through the use of
- Central Bank cheques
- bank drafts drawn bycommercial banks on their foreign branches
- irrevocable and confirmed letters of credit
- letters of credit authenticated by the embassies ofthe respective countries.
- RRFas a scheme introduced by theCentralBank ofNigeria means
- Recording and RediscountingFacility
- Refinancing and RecordingFacility
- Refinancing and RediscountingFacility
- Refinancing and ReinvestingFacility.
- Which of the following gives the correct order in which the listed documents are used?
- Debit note, order, delivery note, invoice and state ment
- Order, delivery note, invoice, debit note and state ment
- Statement, order, invoice, delivery note and state ment
- Invoice, order, statement, debit note and delivery note.
- Freight note is a document
- used by government to transport goods from one country to another
- issued by a shipping company giving details of charges
- used for payment for imported goods.
- given by an importer to pay for goods at a future period.
- An invoice ofN600 ismarked 5%1 month, 212%3 months’ and ‘1% 5 months’. If a customer pays in the second month of purchase, how much will he remit to the seller? A. N570. 00 B. N585. 00
- N594.00 D. N600.00
- Spot market goods are those which are available for A. immediate delivery B. short-term delivery C. long-term delivery D. end of year delivery
- The main advantage of road transport is that it is A. convenient and flexible B. cheap and direct C. commonand fast D. safe and available.
- The practice by which an insurance company accepts a very large riskand later shares it with other insurance companies are called
- subrogation B. contribution
- re-insurance D. indemnity.
- The insurance policy which provides full cover against all risks at sea is known as
- Policywith Particular Average
- PolicyFree of ParticularAverage
- Marine FreightInsurance
- Marine Voyage Policy Insurance.
- Berne Union is also knownas
- International Credit Union
- International Documentary Credit Union
- International Union ofCredit and Investment Insurers D. Export Credit GuaranteeScheme.
- Which of the following sets of items was used for exchange in Nigeria before money was introduced? A. Cowries, iron rods, brass rods and copperwires. B. Iron rods, copper rods, manilla and cowries. C. Cowries, manilla, brass rods and copperwires. D. Copper wires, brass wires, cowries, and iron rods.
- A major liability of a commercial bank arisesfrom A. customers’ deposits B. loans and advances C. overdrafts D. staff allowances.
- A bank statement is a document
- ordering a bank to pay on demand a stated sum of money
- containing records ofreceipts, payments and balance on an account
- used for paying money into a bank account
- used for regular withdrawal ofmoeny from a savings account.
- Which of the following is NOT a function of the stock
exchange market?
- Providing long-term loansto large scale enterprises. B. Encouraging people to buy shares and thereby providing capital forinvestment.
- Providing means of assessing the value of a firms’ assets.
- Enablingfirmstowind-up quicklyin timesofdifficulties.
- The marketing approach bywhich a firm caries out a detailed analysis of itself, the consumers and its competitors is known as
- market analysis B. marketing mixanalysis
- marketing opportunities analysis D. market survey.
- The breaking down of a market into separate and identifiable elements each with its own special product requirementsis known as market
- differentiation B. Segmentation
- penetration D. identification.
- Taking a new product to a particular part of a country to test the reaction of consumers to the product is referred to as
- sales promotion B. sampling
- merchandizing D. advertising.
- A manufacturer can make his product distinguishable from those of other competitors by
- providing catalogues for his wholesalers
- aggressive sales promotion
- branding and packaging theproduct
- selling the product at a much lower price.
- Which ofthe following are forms ofsales promotion? A. Advertising, personal selling and publicity.
- Advertising, marketskimming and publicity.
- Personal selling, packaging andpublicity.
- Advertising, packaging and publicity.
- A disadvantage of personal selling is that it
- increases a company’s operating costs.
- decreases a company’s operating costs.
- increases a company’s number of customers
- reduces a company’s area of patronage.
- Chinyere agreed to make a dressfor Halima with September 20, 1995 as the delivery date. If the dress was not ready on that date, Halimacould
- sue Chinyere for damages
- sue Chinyere for specific performance
- seize another gown from Chinyere’sshop
- regard the contract between them asterminated.
- Consumer sovereignty means that the consumer is A. a citizen B. always independent
- always wrong D. always right.
- When an industry or company is nationalized, the state becomes
- the majorityshareholder
- the minority shareholder C. the only shareholder D. an equal shareholder with other individuals.
- The Federal Government made efforts at rendering public enterprises more efficient and profit-oriented
through the process of
- privatization B. commercialization
- indigenization D. nationalization
- Which of the following organizations represents those who engage labour inNigeria?
- Nigerian LabourCongress
- Nigerian Employers ConsultativeAssociation. C. Manufacturers Association ofNigeria.
- Nigerian Union ofLocal Government Employees.
- The practice of assessing employees for payment or advancement according to their observed achievement is called
- employee ranking B. merit rating
- job grading D. employeeevaluation.
- Motivation is an essential element in management because it
- leads to the improvement ofstaff welfare
- encourages individuals to work towards achieving the organisation’s objectives
- reducesfriction among employeesin the process of achieving the organization’s objectives
- helpsto eliminate industrial disharmony.
- The direct authority of a superior over hissurbordinate is known as
- staff authority B. line authority
- line and staff authority D. lateral authority
- Afirm’s organisational structure would change if A. one of the major partnersdies
- there is excessivecompetition
- there isseasonal variation in demand
- the scope of business operation changes.
- The secretariat ofthe Niger Basin Commission islocated at
- Ouagadougou, Burkina Faso
- Abuja, Nigeria
- Niamey, Niger
- Bamako, Mali
Commerce 1997
- Which of the following are the components of commerce?
I Trading and advertising
II Warehousing and transportation
III Packaging and branding
IV Insurance and banking.
- I and II B. I and III
- I, II and IV D. II, III and IV
- A royal charter was granted to the Royal Niger Company to do business in Nigeriain
- December, 1888 B. May,1887
- July, 1886 D. August,1885.
- Transportation, retailing and wholesaling industriesrely heavily on
- banking B. insurance
- manufacturing D. railway.
- An example ofindirect service is rendered by A. civil servants B. familydoctors
- household servants D. entertainers.
- The objectives of a business are determined by the A. workers B. government
- society D. promoters.
- Partnerships are most suitable where
- the partners are family friends
- professional are involved
- members can easily raise enough capital
- government regulations arefavourable.
Use the conversation below to answer questions 7 and 8. MUSA: Taiwo, why you are in business?
TAIWO: To optimize profit, provide quality products
and discharge my social responsibilities.What of you? MUSA: I am in business to minimize cost, provide products at low prices and as you said, discharge my social responsibilities. What of you, Okon and Kalu? OKON:I am in business to cater for the need of the consumers at all costs.
KALU:I am in businessto make profit, provide quality products at reasonable prices and establish a
good reputation for myself.
- The businessman that may end up not discharging his social responsibility is
- Musa B. Okon
- Taiwo D. Kalu
- The business with the best objectives is
- Okon B. Taiwo
- Kalu D. Musa
- The business organization in which shareholders have equal votes is
- sole proprietorship B. partnership
- co-operative D. limited liability company.
- The major objective of corporate mergers is to A. minimize the effects oftaxation
- increase financial advantage
- facilitate profitmaximization
- enhance economies ofscale.
- When it becomes necessary to liquidate a company, the first step to be taken is the appointment of
- a receiver B. anauditor
- an accountant D. a liquidator.
- In which ofthe following circumstancesis a court order
NOT necessary for the winding up of a company? A. Suspension of business for one year.
- Special resolution ofmembers.
- Reduction in the number ofmembers below the legal minimum.
- Inability to payits debts.
- One type of investment that has a variable income is A. debentures B. preferred shares C. government bonds D. ordinaryshares.
- A term which indicate that a share istemporarily suspended is
- ex-dividend B. cum-dividend
- bond D. stock.
- Leasing is the right to use assets for an agreed period in return for
- profit B. interest
- wages D. rents.
- The form of business financing which involves pledging of a specific asset is
- debenture B. mortgage
- loan D. bond.
- The total amount that a company is allowed to raise according to its memoradum of association is known as A. issued capital B. authorized capital C. called-up capital D. paid-up capital
- A public limited liability company having a nominal capital made up of200 000 ordinary shares of50k each decided to issue 50% of it to the public
What is the authorized capital?
- N40 000 B. N50 000
- N100000 D. N200 000
- The turnover of a firm may be affected by A. the demand for its product
- the cost of its goods sold
- its closing stock D. its net assets.
- The cost of transporting goods to customers is called A. carriage inward B. carriage forward
- carriage paid D. carriage outward.
- The main aim ofselling directly to consumers by manufacturers isto
- discourage the activities of middlemen
- make contact withconsumers
- eliminate transportation cost
- maximizethe profitmargin.
- In foreign trade, document of title is known as A. bill oflading, B. bill at sight
- certificate oforigin D. declaration form.
- Excise duties are paid on goods thatare
- imported into the country
- manufactured within the country
- exported to other countries
- kept in bonded warehouses.
- Stevedores as a term in foreign trade means men who A. inspect goods in shipsB. import goods by ships
- collect duties in ships D. load and unload ships
- A close indent is an instruction to an agent to A. order goods from a particularmanufacturer
- order goodsfrom anymanufacturer
- sell goods to any firm
- sell goodsto a certain firm.
- The basic distinction between cash discount and trade discount is that while trade discount is
- for a period of 30 days, cash discount isfor a period of 3 months
- given by a wholesaler, cash discount is given bya bank
- a reduction in the cataloque price of an article, cash discount is a reduction in the invoice value
- a reduction in value of sales, cash discount is a reduction in price of goods.
- The cost that arisesfrom failure to load or unload a ship at theport within a stipulated period is known as
- excess charges B. demurrage charges
- premium charges D. trade charges.
- The mode of transportation that is noted for ontime dependability and low cost per unit on goods carried is A. pipeline B. air
- rail D. road.
- A person who undertakes any risk in insurance business is known as
- a broker B. an underwriter
- an insurer D. anactuary.
- The main purpose of insurance isto
- encourage business to survive and grow
- ensure that facilities are available for operations C. accept risks and extend credits to policy holders D. spread individual losses over all covered participants.
- Bank giro is a system where
- Commercial banks can give loansto all customers B. a central bank opens accounts for commercial banks C. a customer uses a cheque to pay several bills D. a customer closes his account by writing a cheque.
- Commercial banks are referred to as departmental stores of banking because they
- have many branches B. have many customers C. are found in the cities D. offer many types of services.
- A market where new shares are traded is known as A. primarymarket B. stock exchange
- secondarymarket D. money market.
- When a firm speaks ofstock appreciation, it refers to A. changes in the value of its stock resulting from price movements
- increase in the price of its shares quoted on the stock exchange
- an unexpected increase in the demand for itsstocks D. the value of its stocks in thestock exchange. 35. The process of creating more market for a product is called
- advertising B. marketing
- promotion D. consumerism.
- When a vendor supplies newspapers from house to house and across the streets, the element of marketing mix involvedis
- product B. price
- promotion D. place
- The main advantage of using cinema as an advertising medium isthat it is
- cheap B. accurate
- accessible D. informative.
- When old customers stick to the old place to buy goods and services, it is known as
- goodwill B. personalfactor
- window shopping D. patronage.
- The most important piece of legislation governing business and commercial activities in Nigeria currently is the
- Companies Decree,1968
- TradeDispute Decree, 1976
- Companies and Allied Matters Decree, 1990
- Banks and Other Financial Institutions Decree, 1991.
- One of the criteria for differentiating consumer markets from industrial ones is the
- type of demand B. type ofsupply
- nature of the servicesrendered
- price of the goods.
- The over-riding objective of the food and drug act in Nigeria is toprevent the
- importation of food and drugs that can be locally manufactured
- consumption of food and drugs not tested by the ministries ofhealth
- adulteration of food and drugs sold in the country D. manufacturers of food and drugs from charging excessive prices.
- The activities of consumers association in Nigeriahave not been effective because
- the consumers are toomany
- the government is not favourably disposed towards consumerism
- there is poor enlightenment about consumerrights D. the consumers have no medium for expressing their feelings.
- The least of the advantages of indigenization isthat A. the standard of living of the indigenes is improved B. the economy is controlled by the nationals
- entrepreneural skill isdeveloped
- foreigners’ domination isavoided.
- The main objective of a trade association can best be described as promoting and protecting
- the products B. commoninterest
- themarket D. customer’s interest.
- The management function of evaluating whether objectives are being achieved is
- planning B. directing
- organizing D. controlling.
- In a business organization, the annual operation plan or budget is a form of
- casual plan B. medium-term plan
- long-term plan D. short-term plan.
- A key advantage of delegation is that
- workers are prepared for higher responsibilities B. the manager has less work to do
- the manager spends less time on planning
- the organizing growslarger in size.
- Social responsibility of business requires enterprises to A. hold annual social parties for thepublic
- draw their workers only from the immediate
environment
- address themselves to issues relating to the society. D. set up social welfare centresin their areas ofoperation.
- The existing system of governance and the administrative sub-divisions of a country which affect the operationsof business in the country is described as
- economic environment B. legal environment
- political environment D. social environment.
50 Sudden technological changes can have the effect of making
- a company’s management style ineffective
- a company’s product obsolete
- the control mechanism difficult to implement
- the motivational factors in the company difficult to monitor.
Commerce 1998
- Which of the following contributed least to the evolution of commercial activitiesin Nigeria?
- Development of banks
- Development oftransportation.
- Development of traders’unions.
- Development ofcurrencies.
- One of the factors which critically determines the choice of occupation is
- training B. skill
- aptitude D. interest.
- Extractive industries may also be denominated as A. direct industries B. servicing industries C. primary industries D. indirect industries.
- The primary objective of a business organization isto A. cater for the needs of its owners
- work towards makingreturns
- assist the government to serve the citizens D. improve the standard ofliving ofits proprietors.
- Services which are of absolute monopoly can best be provided by
- private companies B. limited liability companies C. public companies
- public enterprises.
- One advantage the co-operative society has over the
Use the information below to answer questions 13 and 14 SONU Enterprises
Balances Sheet as at 31/3/98
N N
ordinary company isthat the
- latter paystax while the former does not B. former attracts more capital than the latter C. membership ofthe former is usuallymore than that of the latter
- former, unlike the latter, haslimited liabilities.
Capital 6,000.00 Net profit 2,000.00 Drawings (137.50) Creditors 1,000.00 Accruals 187.50
Plant/Machinery 2,300.00 Motor van 2,000.00 Stock 1,250.00 Debtors 480.00
Bank 3,000.00 Cash 20.00
Use the information below to answer questions 7 and 8
Mr Obi is a manager ofObiAgriculturalVenture. Hemakes all the decisions and takes all profits from the business. He had agreed with Alhaji Musa (a farmer) to pool their resources together and expand their business. They
invites Mr. Abayomi (a cotton grower) to join them. Mr Abayomi agreed on the condition that his liability in the newfirm will be limited to hisinvestment in it. They thus registered Obi, Musa &Abayomi Agricultural Ventures.
- It can be deduced from the above that Obi AgriculturalVentures is a
- sole proprietorship B. generalpartnership C. limited partnership D. joint venture.
- Which of the statements below is true of Mr Abayomi? A. He can assign his shares to another without consent of other partners
- Hecannot take part in themanagement ofthe business. C. His actions as a limited partner can bind the firm. D. His death will authomatically dissolve the partnership.
- A source of capital to private limited companiesisshares issued to
- the public B. selected persons
- members oftheBoard of Directors
- Dedicated members ofstaff.
- Which ofthe following is an example of a conglomerate? A. National Electric PowerAuthority
- United Africa Company Nigeria Plc
- The Nigerian RailwayCorporation.
- First Bank Nigeria Plc.
- Which of the following statements is true of preferred stockholders?
- They have no voting rights at annual general meetings B. They have first claim to company assets before creditors
- They have first claim to company assets after all debts have been settled.
- They share dividends equally with common
stockholders.
- A provision in the charter of a company which gives holders of common stock the first option to purchase additional issues ofthe firms’ common stock is the
- pre emptive right B. shareholdersright
- ex-dividend right D. oversubscription right.
9,050.00 9,050.00
- What is the currentratio?
- 4:1 B. 4.5:1 C. 5:1 D. 25.5:1
14 What is the acidratio?
- 2.95:1 B. 4.25:1 C. 4.75:1 D.5.55:1
- The form of capital which is easily transferred into the form desired is knownas
- working capital B. liquidcapital
- circulating capital D. capitalemployed.
- If a firm’sturnover is N15,000 and the cost of goods sold is N10,000, what isthe percentage of gross profit on sales? A. 23.3% B. 33.3% C. 50.0% D.66.6%
- A machine which enables sales without the physical presence of a sales attendant is a
- computer machine B. vendingmachine C. telexmachine D. faxmachine
- What document is required when a country imposes and valorem import duties on goods?
- A mail transfer B. A shipping note
- A bill oflading D. A consularinvoice.
- Entrepot trade issaid to have taken place when goods are A. held at the port pending payment of custom duty B. sold in the shipunder special regulation
- imported and thenre-exported
- kept for further processing before sales.
- When a price is quoted at F.O.B.it meansthat the price A. excludes loading charges incurred in bringing the goods to the dock
- excludes all necessary shipping charges payablefor insurance
C.includes all charges payable on shipping a consignment to the port of destination
- includes charges payable for loading goods onto the ship.
- Emeka ordered goodsfor hisretailshop. The manufacturer sells the goods at retail price of N500 but would give it to Emeka at N400. What kind of discount did he get? A. Cash discount B. Trade discount
- Quantity discount D. Seasonal discount
- Nigerian Postal Services (NIPOST) facilitates commerce in all the following ways except through
- cash on delivery service B. recorded delivery service C. express service D. free on board service.
- The document with which a manufacturing enterprise releases stock of raw materials to the factory for production is called
- stock release form B. goods received note C. store issues voucher D. materials release note.
- The two main categories under which marine losses fall intoare
- particular loss and average loss
- actual loss and general loss
- total loss and partial loss
- voyage policy loss and time policy loss.
- Insurance companies operate on the principle ofindemnity. This means that an insured person or firm collects A. only half of the losssuffered
- double the value of the loss suffered
- the total sum of the premiums paid prior to the loss D. damage claims equal to the loss suffered.
- The most important difference between community banks and peoples’ bank is that the
- latter is owned solely by government while the former are not
B.former cater for rural dwellers while the latter catersfor both rural and urban dwellers
- former are service oriented while the latter is profit oriented
- latter advances loans to the public while the former advance loans to rural dwellers only.
- The assets, liabilities and general management of a distressed bank may be taken over by
- International Bank for Reconstruction and
Development
- Nigerian Industrial DevelopmentBank
- Nigerian Deposit InsuranceCorporation
- Nigerian Bank for Commerce and Industry.
- The type of securities that the stock exchange deals with are
- warrants, currency notes, money orders and postal orders
- cheques, bank drafts, warrants and promissory notes C. bonds ivory, treasury bills, debentures and warrants D. stocks, shares, bonds and warrants.
- I. Companies must be registered as private limited liability companies
- Companies must have lessthan 100 shareholders. III.No shareholder may have more than 75%of issued share capital.
What of the above are reqirements for admission into the second-tier securities market?
- I and II only B. I and IIIonly
- I, II and III D. II and III only.
- An underlying principles in the marketing of goods is that firmsshould
- train their personnel B. be consumer oriented C. advertise the goods D. sell through outlets.
- Product X wasintroduced into the market at N4.00 with its cost of production at N3.90 while competing
products are selling at N4.50. What pricing policy are producers of X adopting?
- Marketskimming B. Marketpenetration C. Product live promotion
- Above the market pricing.
- The oral presentation in a conversation with one or more prospective buyersfor all purpose of making sales is
- branding of goods B. personalselling
- packaging D. publicity.
- Personnel activitiesthat promote the general image of an organisation are part of
- advertising B. sales promotion
- public relations D. business correspondence.
- An agent must not make any secret profits in the performance of his duties but can only be rewarded by his principal through
- remuneration and indemnity
- payment of commission andsalary
- granting of business concessions
- forwarding of businesslinks.
- Sabo and Gambo entered into a contract for the sale of two baskets of tomatoes belonging to Gambo before the date pf delivery and without any default by Gambo, the tomatoeswere stolen.Thisis an example of termination of contract by
- breach B. performance
- fault D. frustration.
- A minor is not permitted to enter into a valid contract because he
- cannot pay the consideration
- is too young to interprete thelaw
- is young in the eye of the law
- may not be able to write the contract.
- A person who is cheated in a business transaction can seek legalremedy
- even ifthe agreement is verbal and the amount involved is large
- only if the business is a sole proprietorship whose owner is known
- regardless ofthe form of business organization D. only if the transaction is docmented in contract.
- The most essential element of a product isthe A. price B. utility
- design D. colour
- Which of the following is a disadvantage of nationalization?
- It promotes poor economicplanning
- The cost ofservicesis not determined bymarket forces. C. It may lead to rationalization or resources
D.The development oflocal skills and technologies is retarded.
- An example of a consumer protection agency is the A. Nigerian BarAssociation
- Nigerian Medical Association
- Federal Environmental Protection
- ManufacturersAssociation of Nigeria.
- The body that organizes, promotes and participates in local and foreign trade fairs isthe
- Ministry ofCommercial andTourism
- Ministry of Finance C. Chambers ofCommerce D. Export Promotion Council.
- The Continental WestAfrican Conference is a
EXTERNAL INTERNAL ENVIRONMENT ENVIRONMENT
EXTERNAL
ENVIRONMENT
- group of aWest African countries trading in the same products
- conference to foster unity among the West African countries
C.group ofshipping lines operating on the same West African route
- trust with shareholdersfrom all WestAfrican countries.
- The main function ofthrift, credit and loans co-operative societies is to
- educate theirmembers
- collectmoney from their members
- disburse money to their members
- raise investment finance among their members.
- Management is described as
- getting things done through people
- implementation of business decisions
- the number oflevelsin an organization
- the people in authority in an organization
- Under normal circumstance, a business enterprise can be ideally structured
- by products, function or territories
- around the personalities in the enterprise
- on the rulling of the management
- on the basis of an order fromstockholders.
Which of the following sequences can best fit into the structure above?
- People control ideas
- Material production ideas
- Finance marketing product.
- Materia production product.
- When a business enterprises provides free service to its environment, the services is said to be a
- civic responsibility B. philanthropic
- consideration D. socialresponsibility.
- Inventory control is an aspect of
- operations research B. materialsmanagement C. the organizing functions D. span of control.
- The reduction of import duties among the member countries of ECOWAS is an example of
- preference duties B. preferentialtreatment C. preference tariffs D. preferential excise
- In a common market, member countries agree basicallyto A. place bans on other countries’ products
- wage war against other countries
- establish common barriers against countries outside the market
- negotiate with countries outside themarket for favourable terms oftrade
Commerce 1999
- The conversion of raw materials into finished products creates
- marginal utility B. place utility
- form utility D. time utility
- Commerce makesit possible for man to live in a A. complex and organizedsociety
- society characterized by subsistency
- society characterized by dependency
- simple and organizedsociety.
Use the information below to answer questions 3 and4.
Aboki Plc became insolvent and decided to wind up to meet the legitimate claims of its creditors. Babalawee was called in to manage the dissolution.
- After paying the debts of Aboki Plc, the balance goes to A. Aboki Plc B. Babalawee
- shareholders D. creditors.
- Babalawee is a
- a claimant B. a manager
- an assessor D. a receiver.
- A common requirement for public and private limited companiesin Nigeria isthat
- a shareholder cannot transfer his shares to some
one else without permission from other shareholders B. their annual accounts are made avaible tothe corporate affairs commission
- shares can be offrred for sale on the stock exchange D. Shares can be offered for sales through an issuing house.
- The primary motive behind an individual engaging in production is to
- fully engage all the factors of production
- make available goods andservices
- meet projected profits.
- meet basic human needs.
- Musa obtains wool from his sheep, spins andtransforms it into cloth which he sellsto consumers. Thisis a form of A. vertical integration B. horizontal integration C. forward integration D. backwardintegration.
- A company has an authorized capital of40 million at N1 per share, out of which 32 million shares have been issued and fullypaid-up.The remaining 8 million shares have
- been issued but have not been paid up
- been applied for but not issued
- not been paid-up D. not yet been issued.
- An abridged version of a company’s incomestatement for 1993 containsthe following information:
N(million)
Turnover 286.5
Cost of goods sold 147.5
Overhead and other expenses 85.5
Taxes due for the year 26.9
What was the company’s profit before taxes for 1993? A. N26.9million B. N53.5million
- N139.2million D. N286.5 million
- A business whose owners enjoy loan facilities on the basis of personal goodwill is a
- commercial bank B. thriftsociety
- co-operative society D. community bank
- Which of the following is not a veritable source of funds to a public limited liability company?
- Government financialgrants
- Advances and loans from banks.
- Internally generatedfunds.
- Funds from the sale ofshares.
Use the document below to answer questions 12 and 13. N200,000.00 Liverpool, U.K, June 2, 1995
Three months after date, pay to or to the order of Mr. Okon Etim Esin
Twohundared thousand……………………………………….. Naira Payable at First Bank, Plc.
payment for goods purchased
- can refuse to pay on due date since it is only a promise.
- is bound to redeem the not for cash on due date C. is not bound to renew the note before payment D. can return the goods purchased and refuse to pay.
- Kamaldeen is a seller in a hire-purchase agreement with Emeka. By law, Kamaldeen cannot recover the hire purchased goods. This is an instance of a restriction on
- Emeka’sright to terminate the agreement
- Kamaldeen’sright to re-hire the goods
- Emeka’s right to breach the agreement
- Kamaldeen’sright to terminate the agreement.
- The main documents sent to an importer of goods by the exporter are
- invoice, consular invoice, certificate of origin, freight note, indent and insurance policy.
- indent, bill of lading, certificate of origin, invoice and bill of exchange
- certificate of origin, bill of exchange, invoice, insurance policy, indent and bill oflading
- bill oflading, invoice, insurance policy, consular invoice, certificate of origin and bill of exchange.
- The document that indicates instant payment of cash for goods whenever they are delivered is
- credit note B. proformainvoice
- debit note D. statement of account.
- Which ofthe following documents permits an importer to
Lagos
No 5DueSept., 2 1995 12. Okon Etim Esin isthe
Imo Edit Enoh Liverpool.
inspect his goods before the arrival of the bill oflading? A. Bill ofsight B. Importinvoice
- Consular invoice D. Bill of exchange
- The overriding advantage ofhome trade over foreign trade
- debtor B. creditor C. exporter D. importer
- The document represents a
- bill of exchange B. cheque
- money order D. promissory note
- The term 5 Net 7’ on an invoice meansthat A. 5% discount will be allowed on the price charged if payment is made within seven days
- 5% discount will be allowed on the price chargedif payment is made after seven days
- 5% surcharge will be made unless payment is made within seven days
- 5% discount will be allowed on the price charged only if the goods are bought within seven days.
- Kabir receives two quotations. Ade quotes N100 less 20% trade discount, whileBenson quotes N100 less 30% trade discount and 10% cash discount. If Kabir wantsto take advantage of trade and cash discount, then
- the materials should be supplied byAde
- the materials should be supplied by both ofthem C. the materials should be supplied byBenson
- Benson should be asked to reduce his trade discount.
16 A company which issues a promissory note in lieu of
is
- accessibility of seller to buyer
- absence of many documents
- ease in language oftransaction
- easein form of payment.
- A distinction between Comprehensive Insurance and Third Party Insurance is that the latter covers damages A. caused by the insured vehicle
- to the insured vehicle
- caused by the other vehicle
- to the driver of the insured vehicle.
- The rate at which a central bank discountsfirst class bills is called the
- fixed rate B. billrate
- bank rate D. interestrate
- The principle of subrogation states that A. an insured person should be indemnified to the tune of the amount insured
- an insurance company can stand in place of the insured in dealing with third party
- only a person who likely to suffer loss shouldtake out an insurance cover
- there must be a close connection between the actual loss suffered and risk insured.
- Tolu purchased goods from Yemisi and is to pay custom duties before collection. The goods are likely to be collected from
- a manufacturer’swarehouse
- a bonded warehouse C. an importer’s warehouse D. a wholesaler’s warehouse.
- The three major functional units which the modern computer has are
- the input, the processor and the output units B. the black box, output and inputunits
- BASIC, COBOLand output units.
- BASIC, the processor andPASCAL.
- I foreign investment. II Long-term lending III. Short term lending IV. Foreign exchange reserve V. Short-term borrowing. Which combination of the above include capital account in international trade?
- I, III and IV B. II, III andIV
- II and V D. I and II
- The elimination of faultsin a computer program is called A. console B. debug C. dump D. loop.
- Aliyu bought 100 share at the stock market through a stockbroker. He was told the price of each share was N3 cum. div . This means that Aliyu
- is entitled always to a cummulative dividendon the shares
- is entitled to the next dividend accruing from the shares
- will not be entitled to the next dividend due to the shares
- still owes N3 on the shareswhich will be subtracted from the dividends.
- The forum for the selling and buying ofsecurities ofsmall and medium companiesis called
- Second Tier Foreign Exchange Market
- Foreign ExchangeMarket
- Securities and ExchangeCommission
- Secon Tier SecurityMarket.
- A wholesale dealer in securities is known as A. A stockbroker B. speculator
- jobber D. stag
- Modern business philosophy emphasizes A. quality products B. customersatisfaction C. sales volume D. public relations.
- The main role of advertising isto
- convince prospective buyers to buy
- show the actualshape, form and colour ofthe products C. inform people where to obtain goods and service. D. capture the attention of people.
- The concept of limiting the types, sizes and other characteristics of a product line without
sacrificing utility or durability is called
- simplification B. standardization
- specialization D. satisfiying.
- The focal point of all marketing efforts isthe
- seller B. profit
- product D. buyer.
- Adigun displays goods of different makes on shelves in his supermarket. Thisis an exmple of
- invitation to treat B. offer tosell
- offer to purchase D. invitation to sell.
- The process of bringing a company under exclusive state ownership and control is known as
- nationalization B. commercialization
- indigenization D. privatization.
- Q acting asthe agent ofP, lawfullyand reasonably incurs the amount of N350 as expenses. If Q comes to P for payment, this is an instance of P’s duty to
- remunerate Q B. repayQ
- indemnifyQ D. settleQ
- In a hire purchase agreement between Argungu Ltd and Maikudi, Argungun Ltd inserted the provision that it can enter Maikudi’s premises at any time and remove the hired vehicle for any breach.This provision is
- lawful to both B. unlawful to both
- beneficialto both D. detrimental to both.
- In every simple contract, the price which is paid to purchase a promise is called
- offeree B. acceptance
- consideration D. representation
- One major disadvantage of a cartel isthat it A. maximizes productiveefficiency
- bringsthe merging firms under control
- maximizes profitsfromoperation
- eliminates competition andwaste.
- Staff position in an organization borderson A. authority B. advice
- responsibility D. control.
- The line function in a typical manufacturing enterprise is normally performed bythe
- public relationsdepartment
- estate or properties department
- marketing department
- legal department.
- I Money and machine II. Materials and money. III Market and I Man IV. Materials and Man.
Which combination of the above are basic requirements as business resources?
- I and II B. II and III
- I and IV D. II and IV.
- Under what management function would the motivation of employeesfall?
- Staffing B. Controlling
- Organizing D. Directing.
- The main thrust of government policy of evolving good business environment in Nigeria is the need
- to attract local and foreign investors
- for more exportcommodities
- for consumer oriented products
- to have viable local markets.
- Which of these sets of external environmentalfactors
affect a business operation?
- Competition, industry and product
- Competition, labour andpolitical
- Political, cultural andlabour
- Economic, social andlegal.
- The right of the public to protection against question able products and marketing practices is
- an economic aspect of the business
- a social responsibility of the business
- a legal aspect of the business
- a political aspect of the business.
- Which ofthe following group of countries are members ofthe Niger Basin Commission?
- The Republic of Guinea, Burkina Faso and Nigeria B. Ghana, Liberia and the Republic ofBenin.
- Mali, Liberia and Nigeria.
- Ghana, Burkina Faso andChad.
- The proposed monetary integration within ECOWAS sub- region has the overriding benefit of
- improved exchange B. enhanced trade
- enhanced development D. improved relations.
Commerce 2000
- Government policiesrelating to the establishment and
Amina Enterprises
Balance Sheet as at 30/3/99
operations of businessess are targeted at
- even spread of facilitiesand employment
- the general improvement of the economy
- increasing the profits of business owners D. Diversification and expansion of businesses.
- The share capital value that forms part of the balance sheet total is the
- issued share capital
- called-up capitalshare capital
- authorised share capital
- paid-up share capital
- Bank overdraft as a short term source of fund is
- a currentliability
- granted to a newly opened account
- repayable after more than a year
- an overdrawn account
- The measure of independence available to the individual buisness units that come together is the main difference between
- vertical and horizontal integration
- merges and acquisitions
- trust and cartel
- consortium and amalgamation
- The major factorsthat facilitate merchadising are
- communication, advertising andbanking B. Trading. Warehousing and production
- Banking, insurance and transportation
- Management, insurance and advertising Use the information below to answer questions 6 and 7
Liabilities N Assets N
Share capital 400,000 Land 200,000 Reserve fund 200,000 Buildings 150,000 Creditors 110,000 Machinery 200,000 Bills payable 50,000 Implements 20,000
Undistributed
Profits 45,000 Office fittings 5,000 Wages due 5,000 Rawmaterials 100,000 Finished goods 50,000
Debtors 20,000
Bills receivable 15,000
Cash at bank 45,000
Cash at hand 5,000
- What isthe total fixed capital?
- N675,000 B. N575,000
- N570,000 D. N550,000
- Determine the circulating capital
- N250,000 B. N245,000
- N235,000 D. N225,000
- The term PLC impliesthat the shares are availble A. publicly on the stock exhange
- privately on the stock exchnage
- to the public at the comapny
- publicly in commercialbanks
- The application of division of labour should generally bring about
- increase in the variety of goods and services B. increase in the quantity of goods and services C. cheapness of goods and services
- cost effiiciency in the production of goods and services
- On liquidation of a public limited liability company, the residual owners arethe
- Creditors B. debenture holders C. preference shareholders
- ordinary share holders
- Prodcution involves 20. The current trends in retailing competion in Nigeria A. changing the form of goods, movingand 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
- Which of these is both merit and demerit in partnership? A. The bearing ofrisk
- Its unlimited nature
- The number ofpartners
- The withdrawal of a major partner
- A printer that burns the print images onto the photosensitive drum is called
- dot matrix printer B. laser printer C. daisy wheel printer D. thermal printer
- The insurance principle that requires full disclosure of information on the insured is known as
- indemnify B. Caveat emptor C. Subrogation D. uberimae fidei
- A bank form used to transfer money from personal to creditor’s account is called
- credit transfer form B. debit transferform C. customer transfer form
- bank transfer form
- A console is a device used in
- moving an indicator on the screen
- forming charcters by hearing sensitive ribbon C. holding magnetic tapereel
- communicating between operator and
program
- The fucntion of a merchant wholesaler isto A. buy in bulk, store and sell to retailers as desired
- bring buyers and sellers together
- Possess title to the good store and sell to retailers
- find markets for producers
- The computer using linear integrated circuit technology coupled with quantification of data in terms of length and distance is known as
- The main factors militating against therapid growth oftrade in Nigeria are
- Inadequate transportation network and huge capital outlay
- Lack of good transportation network and
insecurity of investments
- Lack of motivation and government
attitude towards trade
- Huge capital outlay and government
attitude to trade
- Mr. Olatunde took up a fire insurance on a property valued at N1000 and the amount insured is N800. The property caught fire causing a loss of N400. If the insurance was taken with the clause “with average’ what is the amount to be paid by the insurance company A. N560 B. N460
- N420 D. N320
- The Central Bank differsfrom commercial banks becasue it
- renders services to customers
- carries out foreign exchange transactions C. issues currencies
- discounts bills
- Tourists with no fixed address in a town may receive their letters from the post office through a A. post restante B. recorded delivery C. parcel post D. postmaster
- An invoice can be described as a
- contractual agreemnt for the sale of goods B. receipts containing necessary information about the goods
- document specifying quantity, description, prices and total value of purchases
- letter specifying the contractul sales of goods between two parties.
- digital computer B. hybrid computer
- mainframe computer
- Analogue computer
- Ocean liners are subdivided into
Price
Product CustomerPlace
Promotion
- cargo liners and tramp liners B. coastal liners and cargo liners C. passenger liners and cargo liners D. passenger liners and tramp liners
The chart above represents the
- marketing mixrelationship
- productmix
- promotion mix relationship
- advertising mixrelationship
- The role of public relations is principally to A. sustain good relationship
- advertise a firm’sproduct
- carry out publicity D. create good image 28. The pratice whereby soft drink manufacturers give away caps, bags and other items when consumers buy their product is a form of
- Marketing Strategy B. publicity
- Sales promotion D. Advertising
- A group ofspecialized functions of marketing is A. buying, selling, advertising and packaging B. buying, selling, storing andinformation
- buying, selling labelling and promotion
- buying,selling, skimming and pricing
- The major condition for obtaining loan in thrift credit and loans cooperative societies is
- provision of collateral security
- a high level of eductaion
- an approved project plan
- possession of a large business.
- The type of advertising that seeks to persuade consumers to buy a particular product is
- informative advertising
- mass and sopecific advertising
- Persuasive advertising
- competitive advertising
- The most important advantage of personal selling is that it
- allows sellers to perceive buyer’s needs
- takes place easily on the highways
- allows sellers to sell their goods quickly
- takes place without the permission of
governemnt
- The stock exchange helps to provide capitalfor industrial projects becasue it
- determnines value of shares, stocks and
other securities
- assists companies to change their securi
ties into cash
- assists goverment in implementingits
monetarypolicies
- renders agency servcives to organisations and governments
- A form of money that has gone out of use is A. commoditymoney B. bank money
- paper money D. foreign money
- A shortcoming of the second-tierforeign exchange market in Nigeria isthat it
- serves as a mechanism for evaluation an unrealistic exchange rate ofthe naira
- contribute to flooding the market with
foreign essential commondities
- contributes to destablizing nationalre
source
- creates unhealthy competition amongst users of foreign exchnage
- The instument establishing the Economic Community of WestAfrican state in 1975 is
- a decree B. a treaty
- an act D. a constitution 37. The composite functions of management are a. planning, supervising, communicationand directing
- coordinating, supervising, staffing and communicating
- planning, controlling, organising and
directing
- directing, supervising, motivatingand controlling.
- The three components of staffing are
- recruitment, interview and appointment
- recruitment, selection andplacement
- recruitment, test andplacement
- recruitment, procurement andappointment
- The primaryobjective of a trade association is to A. exchange information and negotiate as apres sure group
- establish easy link withgovernment
- undertake research work on behalf ofmembers D. Operates as a group against other groups
- One of the functions ofthe Niger Basin Commission isto A. ensure eqaul treatment of African Nations B. map out regulations that will guide all
forms ofnavigation
- foster close co-operation among West
African nations
- guaranteed freedom of navigationfor all West African nations
- The legal aspect of business is designed to
- protect infact industriesfrom collapse
- safeguard consumers from undue business practices
- protect business organisation and consumers D. encourage free exchange among businesses
- General Manager
Marketing Personnel Production Financial Secretary Foreman Foreman
Workers Workers Workers
The organisational structure above represents
- line and functionalstructure
- functional structure
- line and staffstructured
- line structure
- An aspect of the law which allows an exclusive right for a limited number of yearsis a
- patent B. trademark
- ratification D. copyright
- The basis elements of a valid contract are A. offer, acceptance, consideration and witness
- offer, acceptance, capacity, legality and consider ation
- offer, acceptance, intention, capacity and legality D. offer, intention, acceptance and legality
- In an organisation, civic consideration arisesfrom A. its social negative impacts on the community B. its operations within the environment
- the profit derived from the environemnt D. the fact that it is registered in that locality
- The main difference between nationalization and indigenization in terms of
- efficiency B. profit C. Technology D. shareholding 47. After registration, a certificate of trading is usually issued to
- Partnership B. Private
- Public company D. Soleproprietorship
- A bus driver operating between Lagos and Jos pledged the owner’s credit in Benin in order to have the engine repaired and the bill sent to the owner. This is a case of
- agency by necessity B. del credere agency C. agency by ratifictaion D. agency by estsoppel
- A chamber of commerce is any association made up of
- merchants B. manufacturers
- entrepreneurs D. importers
- The first known legislation to protect consumer right in Nigeria isthe
- Usualy laws B. Sale of goods act. C. Hire purchase act D. Food and drugs act.
Commerce 2001
- The pivot on which the wheel of commerce rotates is A. tarriff B. trade
- taxation D. price
- A distinguishing characteristics of labour isthat it is A. constant B. expensive
- mobile D. cheap
- Land as a factor of production does not vary in A. quantity B. nature
- quality D. cost.
- Whhich of the following services does a lawyer render?
- industrial services B. direct services, C. indirect services
- commercialservices
- The partner that only contributes part of the capital used in the formation and running of a businessis known as
- a passive partner B. an activepartner
- a dormant partner D. a nominal partner
- One major advantage of a credit and thrift cooperatives is that
- it can approach governemnt for a loan
- it encourages saving habits
- there are no legal restrictions
- each member has a vote during meetings,
- A form of ownership which exploits the strengths of one partners to remedy the weaknesses of the other is a
- joint partnership B. cooperative C. corporation D. joint venture.
- At the collapse of a business enterprises, the person appointed to dispose of the assets is called
- a broker B. an auctioneer
- a liquidator D. anauditor
- Entrusting the management of a comapny to the courts to enable the settlement of the company’s
oblilgations is an indication of
- distress B. closure
- bankrupcy D. liquidation
- The financial instrument for borrowing in which collateral is usually more than the amount borrowed is A. trust certificate B. detachable warrant
- mortgage bond D. convertible securities
- I. Personal saving
- Retained Earnings
III Acrued Taxes
Which of the items above constitute internal sources of financing for companies
- I & II B. I &III
- II & III D. I, II & III
- The difference between total current assets and total current liabilities of a business isknown as
- quick ratio B. liquidityratiio C. working capital D. circulating capital
Use the balance sheet below to answer questions 13 and 14.
Mama Trading Company
N N
Liabilities Aseets
Capital 140 Fixed 1000 Openingcapital 350 Current
AddNetprofit 80 Debt 200 Curent liabilities 800 Bank 70 Cash 50
1,370 1,370
- The capital employedis
- N1,000 B. N1,370
- N140 D. N50
- The capital owned is
- N2,740 B. N1,350
- N1,150 D. N570
- One of the reasons why wholesaling must continue is that
- the taxpaid by wholesalers on their profit enhances national revenue
- by creating artificial scarcity, the wholesaler is enhancing competion in the economy,
- the wholesaler provides technical advice to the retailer
- the gap between manufacturers and retailer is reduced by wholesalers
- A merchant wholesaler isreferred to as:
- del-credere agent B. a broker,
- rack jobber D. a factor
- A proforma invoice issent to inform a buyer about the :
- quantity of goods B. prices of goods, C. designation of goods D. quality of goods
- The balance of payments of countries is
- a record of imports and exports
- a systematic record of transactions among countries at a giventime
- the current and the capital accounts and their payments
- the trade relationships and payments among
nations
- The major procedures in the purchase and sale of goods are enquiry
- quotation, order and invoice
- placement order andinvoice
- bargain, order and invoice
- order, sale andinvoice.
Use the information below to answer questions 20 and 12
Mr.Awala is a retailer of a single product. He sells at the standard price. He gives a trade discount of 5%, quantity discount of3% for a volume above 1000 units and a cash discount of 2/10 net 30. The existing selling price of the product is N100 per unit. Mr. Bacus purchased 1,500 units ofthe product on credit and promised to pay Mr. Awala in cash in the first 10 days after purchase.
- The trade discount receivebale by Mr. Bacusis: A. N4,500 B. N7,500
- N10,500 D. N12,000
- If Mr. Bacusfulfil his promise, he will be entitled to a cash discount of
- N2,760 B. N3,000
- N6,500 D. N9,500
- Bank Giro is a method ofsettling debt from a: A. customer to a bank B. bank to a customer C. customer to another D. bank to another
- Warehousing is a productive function because it increases the
- quantity of goods B. utility of goods C. quality of goods D. price of goods
- A factor neccessary for siting a warehouse is nearness nearness to:
- raw materials B. labour
- Capital. D. consumers.
- Pooling of risk in insurance meansthat
- compenstaions are paid out of a common fund B. two people can pool their risks to be insured C. two insurance companies can buy two policies D. insurance companies should encourage taking risks
- The indemnification of Ama by his insurance cecompany after a fire disaster meansthat he:
- has been guaranteed by the insurance company B. will be cleared of any fault by the insurance company
- has been by the insurance company
- will be covered to the limit of the amount in the policy
- The major difference between insurance and assurance is that while insurance
- takes care of the uncertainty, assurance takes care ofrisks
- takes care of risks, assurance takes care of uncertainty
- hinges on possibilities, assurance is based on possibilities
- is about indemnity, assurance is about life in the future
- A documenatry bill will normally be acompanied by A. salesinvoice, bill oflading and insurance certificate
- clean bill, bill oflading and insurance cerificate C. bill oflading, consular invoice and
insurance certificate
- consular invoice, FOBcertificate and bill of lading.
- Which of the following best describes the classifi cation of computers
- mini -computer,speed andsize
- micro-computer cost and liabilities
- mini-computer,microcomputer and work station, D. Amini-computer, hybrid and digital
- The temporary working area of the central procession unit is calledthe
- C-DROM B. C-D RAM
- ROM D.RAM.
- The significance of money to moderneconomic systems is that it
- is used as a means of payment
- promotes specialization and exchange
- measures value and promotes exchange. D. causes inflation and deflation in the economy
- One major charcteristic of credit unions and thrift societies is that
- the legal processes involved in theirformation are rigid.
- membership is compulsory to peoplein the same line of business
- the contribution of every member dependson the member’s ability.
- a minimum of ten people in the same line of business can form the union.
- The Nigerian Stock Exchange publishes a daily official list that gives full information on the
A method of transactions agreed to by members, B. number of participating membersin a day C. changes in the prices and earning of securities D. changes in theofficial rules set by the market.
- The main factors that determines the value of a stock on the Stock exchangea re dividend and
- the psychology of the market
- capital gain
- capital appreciation
- warrantpayment.
- One of the main objectives of the second-tier securities market in Nigeria is to
- achieve a realistic exchnage rate for the Naira B. eliminate currencydealing in the blackmarket C. assist companies to raise capital
- attract investment flow.
- The activities aimed at finding out customers’ need and satisfaction can be described as
- socio-marketing
- macro-marketing,
- micro-marketing
- conceptual marketing.
- The most effective type of advertising for branded product is
- direct advertising B. indirect advertising C. informative advertising D. competitive advetising.
Use the information below to answer questions 38 and 39 ComapniesI, II, III and IV produce and sell electronic videos. C company I sells its video for N14,000 each and offers advice on how to fix and operate them. Company IIsells at N14,000 and its representatives go to install at no additional cost. Company III sells at N15,000 and offers credit sales at N15,500 per video whileCompany IV sells at N15,000 each.
- Which of these companies are more engaged in public relations activities?
- I & II B. I & III
- II & IV D. III & IV
- Which of these companies offer after salesservices? A.IV B.III C.II D. I
Use the information below to answer questions 40 and 41
Musa rented a room to Adamu for N1,500 and N1,000 part payment was made. Adamu brought Audu and Jacob hisfriends to stay in the room. The two friends later pay the balance of N500 to Musa
- Who are parties to the contract of renting the room. A. Musa and Jacob B. Musa and Audu
- Adamu and Musa D. Audu and Jacob.
- Who is the offeree in this contract?
- Musa B. Audu
- Adamu D. Jacob
- The maximum number ofshareholdersin a public liability comapny is
- 20 B. 50
- 100 D. Unlimited
- One way by which government reduces the repatriation of capital isthrough
- nationalization B. divestiture
- indigenization D. naturalization.
- One of the major functions of a chamber of commerce isto:
- promote and protect trade, industry and agriculture b. advise members on regulations of other countries C. settle disputes that arise out of trade
- publish books and periodicals desired by members
- Departmentalization is an aspectof
- planning B. organising
- directing D. controlling.
- A functional organisational structure is where:
- staff performing the same fucntions are
grouped together
- departments performing similar functions are gouped together.
- activities of similar nature are grouped
together
- the staff performing similar functions are grouped together
- In the line type of organizational structure A. the lines of authority are vertical
- there is the application of division of labour C. specialization is carried to a maximum degree D. The llines of authority are horizontally.
- Proper disposal of waste by business firms is one way of discharging their
- responsibility to government
- environmental responsibility.
- community responsibility
- responsibility to customers.
- One of the obstacles to achieving the objectives of ECOWAS is
- lack of common currency B. colonial linkages, C. sovereigntyof states D. language differences.
- One of the main objectives of establishing theNiger River Basin Commission wasto :
- embark on a comprehensive survey of the available water resources
- carry out research for the development offresh water fisheries,
- develop infrastructure to facilitate economic activties
- promote trade among member-statesto improve standard ofliving.
- Awarding scholarships and sponsoring sports by a business organization are example of
Commerce 2002
- The most important factor that delayed the development of commerce in Nigeria was
- the inefficient means of communication
- that there were few entrepreneurs
- the unavailabity of infrastructural facilities
- that there were few developed markets
- Secondary production has to do with changing the A. shape of raw materials through
construction operation
- physical form of raw materials into finished goods
- utility of rawmaterial by an engineering
process
- nature of raw materials through
manufacturing
- The major responsibility ofan entrepreneur is A. employing all factors of production in the
business
- coordinating and determining the
proportion of what to produce
- planning and organizing all activities in the business
- directing and controlling all the affairsof
the business
- Which of the following best describe the scope of commerce?
- All forms of commercial exchanges and the manufacturing industry
- buying and selling and the construction
industry
- all occupational exchanges relating to
industries and commercialactivities
- buying and selling as well as the extraction of natural resources.
- Capital as a factor of production can be used as A. money that is regarded as asset
- goods that are useful in business
- input for further production
- service that provide satisfaction
- The agency that currently oversee the privatization and commercialization processes in Nigeria is the A. securities and exchangecommission
- technical committee on privatizationand
commercialization
- Nigeria stock exchange D. bureau ofpublic enterprises
- Okeze contracted to sell TV sets to Ojo, unknown to them, the sets were stolen in transit. This contract my be terminated on the grounds of
- bankruptcy B. frustration
- fraudulence D. breach of contract
- Which of the following countries are member of the lakeChad Basin Commission?
- Nigeria B. Benin and Nigeria
- Chad andBenin
- Nigeria and Mali
- A core investor in the current phase ofprivatization in Nigeria is onewho
- can afford to buy most of the shares of the enterprises
- will be at the core of the enterprises
- can mobilize foreign currencyequivalent
to the value of the enterprises
- has the technical know-how of the
enterprises.
- The agency in Nigeria which ensure that products conform to government quality specification is the A. standard organization ofNigeria
- Nigeria consumer’s association
- manufactures association ofNigeria
- Nigeria chamber ofcommerce
- advertising strategy
- economic responsibility
- marketing strategy
- social responsibility
- The commercialization of public enterprises is aimed at
- increasing efficiency and making the
enterprises self-sufficient
- advertising and promoting the goods and services of the enterprise
- increased assistance and patronage of the enterprises by the public
- selling the goods and services of the
enterprises
- An author is exclusive right to his published and unpublished works is known as
- authors right B. constitutional right C. patent right D. copyright
- Under an endowment policy, the money handed over to the insured at the expiration ofthe stipulated time or at death isthe
- indemnity B. surrender value
- lump sum benefit D. insurance premium
- The machine used for sending telex message is known as a
- radar B. faxmachine
- Dictaphone D.teleprinter
- Which of these insurance principlesrequires a close connection between the actual loss suffered and the risk insured?
- Indemnity B. proximate cause C. contribution D. subrogation
- The unit through which the results of a processed data are displayed is the
- logic unit B. display unit
- control unit D. output unit
- Which of the following is used to inform the addressee that a registered parcel is ready for collection?
- Express label B. counterfoil
- telegram D. Slip
- The type of computer commonly found in offices is
- laptop B. desktop
- the hybrid computer
- the main frame computer
- The mode of transporting crude oil to the ports for export purposes is by A. tanker B. rail C. road D. pipeline
- The temporary insurance certificate issued to the insured before drawing up a policy isa
- cover note B. testimonial
- time policy D. proposal form
- The bulls and bearsin the Stock Exchange market help tominimize
- the number of shares and bonds sold
- price increases of securities
- flunctuations in the prices of securities
- the elasticity of the prices of securities
- Debentures differ from shares in that A. they are secured on the company’s assets B. ownership is open to thepublic
- they form part ofthe capital ofthe business D. rewards are usually paid out of profit.
- The Stock Exchange is a market where A. long-term securities are sold
- all types of securities are sold
- short term securities are sold
- medium-term securities are sold
- A retail cooperative society aims at
- hoarding manufactured goods
- cutting off the profits of middlemen
- lending money to member at low interests D. encouraging members to savemoney
- A bill of exchange already accepted can be discounted by the holder in
- theCentral Bank B. at least twobanks C. his bank D. any bank
- The document issued by the seller which gives details of the goods he sells is known as
- catalogue B. tender
- price list D. invoice
- Given: I Retail,II export, IIITransport, IV import, V Insurance, VI banking and finance insurance VII wholesale VIIIcommunication.
Which of the above are aids to trade?
- I,II, III and VIII B.III,V,VI andVIII
- I,II, III and VI D.II,V,VI andVII
- The organizational structure that relates the positions of specialists to the line managers is called
- line structure
- staff structure
- line and staffstructure
- .functional structure
- A wholesaler who possesses the title to the goods he sell is known as
- a merchant wholesaler
- a multiplewholesaler
- a generalwholesaler
- an agent wholesaler
- An important principle of a good organizational structure is
- ideal standard B. span of control
- clarity ofmission
- adequacy of resources
- A company that is registered with the Corporate Affairs Commission only without being enlisted on the stock exchange is a
- public liabilitycompany
- joint ventures company
- limited company
- registered company
- A contract for the sale of goods involves the A. producer, the seller and the buyer of goods B. offering of goods to customers
- transfer of title to goods for money
- exchange of goods
- The total of the share capital which a company would be allowed to issue is know as
- called-up capital B. paid up capital C. nominal capital D. issued capital
- The process of mobilizing, engaging and maintaining workers to work for an organization is referred to as
- staffing B. selection
- recruitment D. employment
- Recognized members of the Stock Exchange who buy and sell securities on their own behalf are known as
- bull B. jobbers
- broker D. stagers
- Which of the following involves foreign trade? A. Supermarkets B. chain stores
- departmental stores D. commodity market
- Which of the following is a function of employers’ association?
- Undertaking research on behalf of employees B. promotion ofthrift in workers
- promotion of workerswelfare
- dissemination of information through
sponsored journals
- Which of the following industries is normally located near the source of its rawmaterials?
- Footwear B. cement factory
- textile industry D. automobile assembly
- One of themost important functions of marketing is
- encouraging research activities to meet needs
- creating classes of merchants among businessman
- the extension of markets for businesses D. providing finances to businesses
- Securities on which the buyers are not issued with certificates arecalled
- authorized securities
- inscribed securities
- bearer securities
- registered securities
- In product pricing, which of these elementsneeds more consideration that others?
- the demand for the product
- the demography of the buyers of the
product
- the economic conditions in the market
- the cost of producing the product.
- The principal objectives of the Central Bank of Nigeria can be classified broadlyinto
- banker’s bank, lender of last resort and issuance of currency
B service, currency management and
financial intermediation
- banking services, foreign exchange
operations and open market operations
- service monetary policy and
developmental functions.
- The letters E and OE standsfor
- errors of exception
- errors and omissions excepted
- estimated and order error
- end of error
- An important issue for consideration in the product element ofthe marketing mix isthe
- adequate promotion of the product
- channel of distribution of the product C. price of the product
- planning and development of the product
- A group of companies is acollection of A. subsidiaries and their holding company B. firms
- associates and their holding company
- industries
- Which of the following is an example of trade associations?
- European Union
- National Marketing Unity
- Organization of AfricanUnity
- National Farmer’sCouncil
- Which of the following determines the quality of the goods that a retailer sells?
- The mode of contract of sales
- the type ofmanufacturer
- the regulations regarding sales in the area D. the location of his shop
- An advantage of hire purchase to the
consumer is the
- economics of scale in production
- possession of goods before payment C. increase in turnover and profits D. low interest rate chargeable
- The founders shares are usually referred to as deferred shares because the holders A. are entitled to cumulative dividends
- receive their dividends after other share holders
- receive their dividends before other shareholders.
- Are not entitled to any dividends.
Commerce 2003
- An example of service rendering trade association is A. Nigerian BarAssociation
- Association of Nigerian Miners
- Cocoa Farmers Association
- Manufacturers Association of Nigerian
- An obstacle to international trade is
- Trade imbalance betweencountries
- Availabilityoflocal market
- Quantity and quality oflabour
- Cost of finance
- The right of ownership with respect to goodsor property is
- right of occupancy B. proxy
- title
- certificate of occupancy
- The main motive of chambers of commerce and trade association isto
- assist the government in achieving its objectives
- protect the interest of consumers
- maximizeprofit
- protect and promote the interests ofmembers
- A pattern that shows the kinds of participants involved in the production distribution and ultimate use of a product is referred to as
- selection B. strategy C. structure D. synergy
- Goods that are manufactured or acquired by the seller after the contract of sale are
- Specialty goods B. Future goods
- Specific goods D. General goods Use the information below to answer question 7 and 8
Ojo purchased the following items from Sani at the specified prices on credit; 200 cartons of mild at N1000 per carton, 150 bags of sugar at N500 per bag, 50 bags of rice at N3000 per bag. Sani allowed 10% trade discount and 50% cash discount if payment is made withinthe agreed period.Ojopaid within the agreedperiod.
- What was the amount paid by Ojo?
- N382,500 B. N425,000
- N363,375 D. N61,625
- How much was the trade discount?
- N42,500 B. N27,500
- N22,500 D. N20,000
- The basic function of the Nigerian Ports Authority is to A. Ensure that the right calibre of personnel is employed at the ports
- Coordinate and regulate the activities of shipping lines
- Facilitate and control the movement of goodsand services into and out of the country
- Coordinate the activities of all the seaports in the country
- The concept that refers to the sale, transfer or exchange of goods and services is
- Industry B. Trade
- Tariff D. Marketing
- A guarantee given by one person or party to another in which the integrity of the person is assured is
- Fidelity B. Term assurance C. Subrogation D. Indemnity.
- A firm that adapts itself to delivering the desired satisfaction more and effectively and efficiently than its competitors is said to be practicing.
- Price concept B. D i s t r i b u t i on concept
- Product concept D. M a r k e t i n g concept
- The payment made periodically in respect of an insurance policy entered into is known as
- Bond B. Commission
- Premium D. Surrender value
- An example ofservice rendered by NIPOST is A. Electronic mail B. Telephone
- Mail D. Delivery
- The focal point of marketing is
- The competitor E. The buyer
- Profit-making G. Sales
- The type of marine insurance which covers either damage or loss to the vessel and such as caused by it to other vessels is
- Bull insurance B. Time insurance
- Freight insurance D. Cargo insurance
- The management function that makes the difference in intensity of behaviour is
- Coordinating B. Controlling
- Motivation D. Planning
- One of the function of seaports is the provision of A. Berthing and landingfacilities
- Loading and offloadingfacilities
- Control room for relaying radiomessages D. Ware houses for storage of cargo.
- The process of dividing task into jobs and departments and of delegating authority is know as
- Staffing B. Leading
- Directing D. Organizing
- Communication process involves the transmission of a message over a selected channel to the
- Receiver B. Audience
- Sender D. Encoder
- Stimulation of demand is a kind of communication in marketing which connotes
- Personal selling B. Sales promotion C. Advertising D. Merchandising
- A functional structure is an organizational structure in which
- Abstract rules are applied
- Equity prevails
- A Specialist enforces his directives
- There is nohierarchy
- Entrepreneurship mainlyinvolves
- Risk-taking B. Initiating
- Skilled manpower
- Knowledge
- In the event ofthe liquidation of a company, the first to be settled are:
- Debenture holders
- Members of the board
- Preference shareholders
- Ordinary shareholders
- The business organization established mainly for the purpose of carrying out specific assignments for a specific duration is a
- Joint venture B. Cooperative society
- Partnership D. Company
- Which ofthese factors ofproduction is relatively fixed in supply?
- Capital B. Entrepreneur C. Human resources D. Natural resources
- The location of a business is mostly influenced by A. Market outlet
- Management decision
- Capital D. Environment
- The evolution of commerce in Nigeria is traceable to the
- Period of barter economy as human needs became limitless
- Desire by human beings to satisfy their needs through the services of other people in the society C. Development of human civilization and the desire to meet their needs
- Primitive stage of existence of human beings.
- One of the requirements necessary for setting up a business is
- Registration B. Advertisement C. Knowledge of the business
- Documentation
- The assembling of products into usable form is known as
- Construction B. Manufacturing
- Formation D. Creation
- The government’s policy thrust on the business environment isto
- Promote exports B. Attract investors C. Be self-sufficient D. Increase production
- Social responsibility is the ability of an organization to A. Tackle the socio-economic problem of its community
- Meet the needs of its community
- Contribute to sustaining and developing its community
- Operate without disrupting the very essence of the environment
- The act of a person employing another to enter into a contract on his behalf is known as
- Business B. Sale of goods
- Bilateral agreement D. Agency
- The ECOBANK is the initiative of
- Somewell-meeting Nigerian shareholders B. The federal government of Nigeria
- West African states to foster trade
- The lagos state government to enhance capitalmobilization.
- Privatization is concernedwith
- Capital ownership between the public and the government
- The dilution of ownership among the public C. The individual ownership ofcompanies D. Government ownership ofcompanies
- Electronic computers differ from human beings in that they process data and minimize errors in a
- Faster and more accurate manner
- More organizedmanner
- Faster but less accurate manner
- Slower but more accurate manner
- A major benefit derivable from the privatization and commercialization of public enterprisesin Nigeria is A. Increase in wages
- Employment generation
- Information technology
- Revenue generation
- The device which interprets and carries out the instructions presented to it by the computer program is known as
- Software B. Micro-processor
- The body charged with the responsibility to register shares for subscription on the stock market in Nigeria is the
- Securities and exchangecommission
- Nigerian stock-exchange
- Nigerian deposit insurance corporation
- Central bank ofNigeria
- An essential factor for evaluating the different sources of funds for a business is the.
- Decree establishing the business
- Ownership structure of the business
- Size and the type of the bank
- Burden of cost and repayment
Liabilities N Assets N
- Mouse D. Hard-disk
- The market structure, business conditions and financial
Paid-up capital Retained earnings
200,000 50,000
Buildings Plant &
50,000
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
- Technological environment Banks 120,000 40. The protection of consumers against exploitation by 420,000 420,000 manufacturers is to ensure 46. What is the owner’s equity?
- That there are varieties of products
- That the right quality of goods and services is sold
- Increase in production capacity
- Increase in the level of consumer awareness
- The most widely used computer language that focuses on solving science-oriented problems is
- FORTRAN B. BASIC
- ADA D. COBOL 42. Banks are engaged in the business of buying and selling of
- Bills ofexchange
- Investment of credit
- Intangible products
- Land
- A source of short-term finance to companies is A. Share capital B. Debentures C. Retained earnings D.
Corporate tax
- N250,000 B. N300.000 C. N420,000 D.
N200,000.
- Find the currentratio
- 1.53:1 B. 1.85:1
- 0.87:1 D. 0.50:1
- Money can simply be referred to asa
- Medium ofexchange
- Means for the settlement of debts
- Durable asset for doing business
- Standard of value
- A type of long-term loan granted to companies with fixed interest as well as with redeemable and irredeemable features is referred to as
- A debenture B. A bond
- A termloan D. An overdraft
- Public debt management is one of the function of a A. Merchant bank B. Central bank C. Commercial bank D. Development bank.
Commerce 2004
- Ships that sail across the ocean and operate on scheduled timetables are
- ferries B. ocean liners
- tramp steamers D. coastal liners.
- Non-insurable risksinclude
- gambling B. damage to property
- death D. marineproblems.
- The program that makes up the operating system in a computer is
- microprogram B. system flowchart C. system software D. syntax.
- When an organization studies a market that is underserved by others and creates a product or service for the segment, it is engagedin
- market integration B. marketpositioning C. market orchestration
- product differentiation.
- Coverage against unexpected events is called A. insurance B. assurance
- warranty ,” D. reinsurance.
- An insured risk which occurs accidentally as a resultof defects in a ship is
- a voyage policy B. a total loss
- an emergency D. a particularaverage.
- Communication enhances business activities by A. facilitating interaction between producers and consumers
- facilitating interaction among mediahouses C. ensuring the movement of goods from the producer to the consumer
- keeping the goods safe until they are needed.
- In business, the computer is very important especially in
- fmancial management B. marketingmanagement C. educational management D. information management.
- What is the most important use of promotionin marketing?
- Persuasion. B. Conviction. C. Information. D. Education.
- The current highest decision-making body on privatization and commercialization of public enterprises in Nigeria isthe
- National Council onPrivatization
- Securities and ExchangeCommission
- Nigeria Investment PromotionCommission D. Bureau of Public Enterprises.
- The members ofthe Niger Basin Commission include A. Guinea, Ghana and Niger Republic
- Burkina Faso, Guinea and Nigeria
- The Gambia, Benin Republic and Chad Republic D. Nigeria, theGambia and Cameroun.
- Business environment refersto all elements that are A. outside an organization but relevant to its operations
- inside an organization but irrelevant toits operations
- internal to an organization and relevant toits operations
- external to an organization but indirectly related to its operations.
- Consumer rightsinclude the right to
- credit B. free samples of aproduct
- redress D. a share ofprofits.
- One important requirement for the membership ofthe ECOWASis
- In Nigeria, the body that ensures that its members operate according to their professional ethics is the A. SON B. NPF
- MAN D. NAFDAC.
- A transporter who had to sell some perishable goods without the prior authority of the owner becomes an agent by
- conduct B. necessity
- ratification D. estoppel.
- Poor sewage disposal, oil spill and indiscriminate refuse dumping all leadto
- land pollution B. water pollution
- land and water pollution D. air and water pollution.
- One ofthe advantages of commercialization is that it A. encourages entrepreneurship
- increasesthe salaries of workers
- motivates government to establish more businesses D. gives workers on-the-jobtraining.
- A common element in all contractsis
- offer B. consideration
- acceptance D. agreement.
- Sources of finance to a business include personal savings, shares, debentures and
- loans from IMF B. bank overdrafts
- central bank loans D. money from political parties.
- Charges for loans paid by commercial banks to the Central Bank of Nigeria are called
- bank rates B. credit charges C. interest rates D. bank charges.
- In the primary market, new shares are issued through A. personal selling, publicity and advertising
- a prospectus, an offer for sale and a bill of exchange C. advertising, a prospectus and a bill of exchange D. a prospectus, an offer for sale and placing.
- The instruments of credit include
- billboards and postal stamps
- payment vouchers and statement of account C. bills of exchange and promissorynotes
- bills of exchange and salaryvouchers.
- The shares of a company listed on the stock exchange for sale are referred to as
- registered shares B. deferred shares
- issued shares D. quoted shares.
- What is the role ofthe capital market in the privatization exercise inNigeria?
- Selling the shares and stocks of the companies to beprivatized.
- Encouraging private companies to participate in the exercise.
- Negotiating with individuals who want to buy public companies.
- integrity B. independence D. Advertising for government. C. landmass D. population.
- In international trade, documentary credit is also known as A. credit note B. letters ofcredit
- bankers’ drafts D. letter of hypothecation.
- A specialized institution in Nigeria that deals”in capital investments in the form of stocks, shares, bonds and debentures is the
- Securities and ExchangeCommission
- commoditymarket
- Nigerian StockExchange
- CentralBank ofNigeria.
- A group of assets which a business acquires with the intention of reselling them are referred to as
- current assets B. investment assets
- fixed assets D. intangible assets.
- Authorized share capital is also known as A. called-up share capital B. paid-up sharecapital C. registered share capital D. issued share capital.
- An action taken by a company outside its object clause is regarded as
- ultra vires B. a trespass
- uberrima fides D. caveat emptor.
- The strategy adopted by a flrIn that ceases to operate at one or more locations because of inactivity is A. rejuvenation B. focus
- diversification D. consolidation.
- A written partnership contract is knownas A. an invoice B. a deed
- a prospectus D. a proposal.
- The merger of a textile mill, a cement company and a tannery is referred to as
- conglomerate merger B. horizontalmerger C. lateral merger D. verticalmerger.
Use the diagram below to answer questions 34 and 35. Occupation
Services
iii
Trade vi
Extraction iv v Public
iii
- As the branches indicate, iv is
- facilitating exhnages among individuals and firms
- assistaing trade through banking and
insurance
- enhancing business relationships
- The acronym PLC is used to identify a
- comapnylimited by shares
- private company limited byshares
- public companylimited by shares
- company limited by guarantee
- Commerce includes all the occupations concerned with A. sales B. production
- marketing D. distribution
- Factors of production can be described as the A. resources required for the provision of goods and services
- skillsinvolved in deciding and directing the flow of goods
- monetary tools employed by government to ensure stable production
- elements involved in the process offormulating policies on production
- Flucntuations in the supply of goods may be eliminated if the distribution system maintains
- modern technology B. a team ofretailers C. warehouse services D. sufficient midlemen
- Loan schemes by thrift ocieties are
- mortage schemes B. conventionalschemes C. mutual schemes D. unconventionalschemes
- An internal demand for goods to be purchased or drawn from stockis
- a quotation B. a requisition C. a tender D. an order
- The term 4 net 7 on an invoice meansthat A. 4% surcharge will be made unless payment is made within seven days
- 4% discount will be allowed on the price charged only if the goods are bought within seven days
- 4% discount will be allowed on the price charged if payment is made after seven days
- 4% discount will be allowed on the price charge if payment is made withinseven days.
- An order sent by an importer to an overseas supplier stating the details of goods reqired is known as
- commerce B. exchange A. export invoice B. ship’s manifest C. finance D. construction C. an indent D. bill of lading
- What does v represent?
- Aids to trade B. Advertising C. Manufacturing D. Industry
- The most important of computer is A. helping people to improve thier profits
- Organising trade fairs in Nigeria isthe responsibility of A. National Directorate ofEmployment
- Federal Ministry ofCommerce
- Trade Association
- Chamnbers ofCommerce
- International trade takes place as a result of A. niformity in costs ofproduction
- inequitable distcribution of natural resources C. parity in the level ofindustrialization
- similarities in climaticconditions
- The use of vending machinesin retailing is hindered in a developing economy owing to
- industrial policy and harmony
- low level of education
- ineffective communication system
- lack of steady power supply
- Manufcturers’ Association of Nigeria contributes to development by advising the government on
- industrial policy and harmony
- budget and budgetary control
- budget and industrial policy
- environmental protection policy
- Discounts offered by firmsto midlemen for bulk purchases are
- trade discounts B. sales bonanza C. cash discounts D. seasonal discounts
- Goods are of merchantable quality if they A. conform to description
- are of equalweight
- are of the samequality
- conform to buyers’ purpose