JAMB 2024 COMMERCE QUESTION

Commerce 2024 JAMB 

Questions

Commerce 2024 

1. Commerce is defined as the study of how A. man utilizes the resources in his physical  environment 
2. man produces, distributes and consumes his  goods and services 
3. man buys, sells and distributes goods and services 
4. raw materials are changed into finished goods. 
5. 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  

2. The type of activity which turns processed raw  materials into consumer and industrial goodsis  described as 
3. extractive B. manufacturing 
4. constructive D. processing 
5. The production process that combines two or more raw  materials into one end product is 
6. conditioning B. blending 

C.merging D. synthesis. 

4. 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 

1. taxes to government 
2. dividends to shareholders 
3. interest on loans 
4. premium forinsurance. 
5. A distinguishing characteristic of a limited liability  company is thatit 
6. is a collection of many sole proprietors 
7. is a multiple partnership 
8. can sue and be sued 
9. has limited resources. 
10. Which of the following takes place when firms  producing at different stages in the same industry  combine? 
11. Conglomeration B. Verticalintegration C. Horizontal integration D.Cartel. 
12. Which of the following groups is paid first when a firm  liquidates? 
13. Perference shareholders. 
14. Debenture holders 
15. Ordinary shareholders. 
16. Cummulative preferenceshareholders. 
17. Compulsory dissolution of a business can arise from A. an agreement by the owners 
18. a declaration by a court of law 
19. the termination ofitslife 
20. an unfavourableeconomic climate. 
21. What is the circulating capital of the sole proprietor?  A. N27, 380 B. N34,980 
22. N36,180 D. N51,680 

10 What is the working capital as at December 31, 1992?  A. N65, 250 B. N60, 000 

1. N48,650 D. N41,950 
2. 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. 
3. N9.35 million. D. N7.65 million. 
4. What are fixtures and fittings in a balance sheet? A. Liquid capital B. Current assets 
5. Fixed assets D. Working capital 
6. Government impose import dutiesfor the following  reasonsEXCEPT 
7. to raise revenue for other services 
8. to act as as a retaliatory measure against other  governments 
9. to discourage the redistribution ofincome at home D. to protect home industries from external competition. 
10. Sole enterprise may flourish best in 
11. a mining business B. a retailing business C. an oil exploration business 
12. a car assembly business 
13. The use of coin-operated machines to sell goods is a  form of 
14. personal selling B. retailing 
15. wholesaling D. mail-orderselling. 
16. What is the major function of the wholesaler? A. Buying from small-scale producers and selling  to exporters.
17. Buying in bulk and selling in small quantities C. Granting of credit facilitiesto retailers 
18. Providing information to manufacturers on  marketsituation. 
19. The rate at which a country’s exports exchange for its  imports iscalled 
20. balance of payments B. balance oftrade 
21. termsof payment D. terms of trade. 
22. The different between the total payments for imports and  the receiptsfrom exports within a given period isreferred  to as 
23. balance of payments B. balance of trade 
24. comparative cost advantage D. comparative advantage 
25. A pro forma invoice is NOT required when A. quoting for the supply of goods 
26. goods are sent on approval 
27. dealing regularly with a customer 
28. final prices are uncertain. 
29. Which of the following statements is TRUE about sea  transport? 
30. All ships have specific routes to ply. 
31. All ships must be insured at everyjourney 
32. All ships are insured separately from the crew D. All ships normally arrive at their destination with  goods. 
33. The postal organization which preceded in Nigerian Postal  Service is 
34. Post and Telecommunications 
35. Post and Telephone 
36. Post and Teleprinter D. Post and Telegraph. 
37. Goods discharged from ships on which import duties have  not been paid are kept in the 
38. ordinary warehouse B. public warehouse C. private warehouse D. bonded warehouse. 
39. 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 
40. N40,000 B. N80,000 
41. N100,000 D. N200,000 
42. One of the effects of the devaluation of the Naira is that  the 
43. goodsthat can be imported with the Naira have become  cheaper 
44. value of other currencies relative to the Naira have  become cheaper 
45. goodsthat can be exported from Nigeria have become  costlier 
46. importsthat can be bought with the Naira have become  costlier. 
47. Drawing two parallel lines across a cheque meansthat is  has to be paid into the account of the 
48. payee B. drawer 
49. drawee D. payer. 
50. The financial institution established to boost Nigeria’s  trade with the rest of the world is called 
51. Nigrian Deposit InsuranceCorporation 
52. Nigeria Economist ReconstructionFund 
53. Nigerian Industrial DevelopmentBank 
54. Nigerian Export-ImportBank. 
55. Which of the following is both direct and indirect credit  enterprises? 
56. Co-operative and thriftssociety. 
57. Retail co-operative society. 
58. Consumer co-operative society. 
59. Wholesaler co-operative society. 
60. The business in the stock exchange is characterized  essentially by 
61. dealing. B. brokerage 
62. speculations D. transactions. 
63. The Second-Tier Securities Market is 
64. an apendage to the Nigerian Stock Exchange 
65. a member ofthe Nigeria Stock Exchange 
66. meant for the shares of the quoted private companies D. a regulating arm ofthe Nigeria Stock Exchange 
67. The elements ofthemarketing mix are 
68. product, promotion, place and price. 
69. personal selling, advertising andresearch. 
70. promotion, production, place and price. 
71. procurement, price, product andplace. 
72. Which of the following items has the shortest effect on  the consumer? 
73. Fashion. B. Innovation.C. Fad D. Attribute. 
74. Which ofthe following is a form ofsales promotion? A. Advertising on radio. B. Offering free samples. C. Distributing printed materials. 
75. Advertising on Television. 
76. One advantage of personal selling over all other elements  of promotion isthat 
77. it can provide instant feedback 
78. it is very cheap in terms of cost per contract 
79. it does not need to use massmedia 
80. sales people are well trained. 
81. Which of the following must be present in an agency by  agreement? 
82. Intentions. B. Will. 
83. Consent. D. Authority. 
84. An agreement to sell is distinguishable from a sale because  in the former, the transfer of goods is 
85. not anticipated. B. not discussed. 
86. deferred. D. immediate. 
87. Mr. Amusa says to Mr Bello ‘I will sell you this hat for  N30’. And Mr Belloreplied ‘I will payN29’. The contract  is 
88. an offer and acceptance B. an implied contract. C. a complete simple contract. 
89. an offer but no acceptance. 
90. Nationalization of an industrymeansthat its ownership  becomes that of 
91. government. B. shareholders. 
92. taxpayers. D. indigenes.
93. The Comprehensive Import Supervision Scheme wasset  up by the federal government in orderto 
94. reverse Nigeria’s unfavourable balance. 
95. promote fair trade between Nigeria and other countries. C. counteract all fraudulent business deals of Nigerians  with other nationals. 
96. ensure that imports into Nigeria are of the correct  quality, value and quantity. 
97. Which of the following has powersto order withdrawal of  a particular food item from circulation? 
98. Standards Organisation ofNigeria. 
99. Federal High Courtsin Nigeria. 
100. Food and Drugs Department ofthe Federal Ministry of  Health. 
101. Local government health inspectors. 
102. Which of the following maxims negatesthe principle of  collective bargaining? 
103. Individual employees have weak bargaining base. B. Individual employees attain strength when they come  together in a union. 
104. Only members ofthe union can benefit from  

agreements negotiated by the union. 

1. Collective bargaining covers the vast majority of  employees, whether union members or not. 
2. NACCIMA standsfor 
3. Nigerian-American Centre for CultureIndustries,  Mines and Arts 
4. Nigerian Association for Culture, Civics,Industries,  Minerals and Arts 
5. National Agency for Culture, Civilization, Investments,  Manufacturing and Agriculture 
6. Nigerian Association ofChambers ofCommerce,  Industries, Mines and Agriculture. 
7. For the establisment of a powerful consumers’ association  in Nigeria to exist, there must be 
8. financial and moral support from the public. 
9. honest and committed leadership. 
10. allocation of goods from theproducers. 
11. freedom from externalinfluence. 
12. Which of the following is the most important business  resources? 
13. Money. B. Management 
14. Materials D. Manpower. 
15. The harmonious relationshipamong the various units in  an organization is ensured through 
16. co-ordination B. motivation 
17. planning. D. leadership. 
18. 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. 

46. Which ofthe following makes other functions of business  its appendages? 
47. Production. B. Marketing. 
48. Finance. D. Personnel. 
49. The use of computers in modern banking industry is a  reflection of 
50. competitive development B. scientific development C. economic development 
51. technological development 
52. When an oil exploring and mining company builds a health  centre in one of the communities where it operates, such  a company is 
53. currying favour from localpeople 
54. finding a way to spend excessprofits 
55. fulfilling part ofitssocial responsibility 
56. investing its idlefunds. 

49 The West African Clearing House became legally  operational on 

1. 1stJuly, 1976 B. 25th June, 1975 
2. 14th March, 1975 D. 3rdMay,1974 
3. The Lake Chad Basin Commission wasfounded to enable  member states. 
4. expand the volume of water in the Lake for fishing  activity 
5. increase navigational activities on the lake 
6. dam the lake for electricity and agricultural purposes. D. co-ordinate their efforts in managing the use of the  lake’s resources. 
   

Commerce 1995 

1. 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. 

1. I and II only. B. I and III only. 
2. II and III only. D. III and IVonly. 
3. The development of commercial activitiesin Nigeria was  facilitated largelyby 
4. a good transport system 
5. the indigenization decree 
6. a convenient medium of exchange. 
7. a high level ofproduction.
8. In which of the following sets of occupations can an  industrial worker befound? 
9. Extraction, commerce and construction 
10. Manufacturing, extraction andbanking. 
11. Construction, quarrying and insurance. 
12. Manufacturing, extraction andconstruction. 
13. Construction activitiesinclude the building of houses and  roads as well as 
14. bricklaying B. shoemaking 
15. blacksmithing D. car assembling. 
16. If a partnership deed is silent on how profits are to be  shared, partners share profits 
17. in the ratio of the value of business secured by each  partner for the partnership 
18. in the ratio of partners’ capital contributions 
19. in an equal proportion, irrespective of partners’ capital  contributions 
20. according to duties performed by each partner. 
21. Which ofthe following information is contained in the  Articles of Association of a limited liability company? A. Rights and obligations of directors 
22. Objectives of the company. 
23. Amount of sharecapital. 
24. Limitation ofliability ofshareholders. 
25. The merger of two companies producing the same type of  productsis an example of 
26. vertical integration B. horizontal integration C. lateralmerger D. an acquisition. 
27. One ofthe implications ofthe incorporation of a company  is that 
28. it is more difficult for the company to raise loans B. the company can sue but cannot be sued 
29. the company’s property becomes distinguished from  that of itsmember 
30. its members become liable for all the debts of the  company. 
31. The main advantage of a sole trader is the freedom to A. employ anyone helikes 
32. seek advice from any source C. take quick decisions D. plough all the profits back into the business. 
33. In the case of voluntary liquidation of a business, the  receiver is appointed by the 
34. creditors B. debtors 
35. directors D. shareholders. 
36. When a companyusesmore of loansthan equity to finance  its business, the company is said to be 
37. bankrupt B. solvent 
38. highly geared D. in a strong liquid position. 
39. The nominal value of a share as specified in the  Memoradium of Association and the share certificate is  the 
40. disconted value B. stock value 
41. face value D. parvalue 
42. A public limited company can raise long-term loans  through 
43. the capital market B. the money market 
44. bank overdrafts D. discount houses. 
45. Factoring is a trade debt term used when the agent buys  all the trade debts ofthe 
46. importers B. exporters 
47. nations D. customers 
48. The financial index which compares current assets directly  with current liabilitiesis known as current 
49. turnover B. capital 
50. ratio D. balance 
51. Rights issue means the 
52. issue of shares to the directors of a company on  favourable terms 
53. issue of shares by a company only to the founders of  the company 
54. right of shareholders to vote on any issue 
55. issue of shares to shareholders on favourable terms. 
56. Profit that is expressed as a percentage of the cost of  goods sold is referred to as 
57. margin B. mark-up 
58. gain percent D. grossprofit. 
59. Given: N 

Opening stock 40,000 

Purchases 115,000 

Closing stock 60,000 

Sales 250,000 

What is the cost of goods sold?  

1. N155,000 B. N95,000 
2. N50,000 D. N30,000 
3. In the channel of distribution, which of the following sets  is entirelymade up ofmiddlemen? 
4. Wholesalers, retailers and agents. 
5. Manufacturers, consumers andretailers. 
6. Wholesalers, agent and consumers. 
7. Retailers, manufacturers and wholesalers. 
8. Goods imported into a country for the purpose of re exporting attracts a rebate knownas 
9. customs draw back B. exportroyalty 
10. incentive D. export rebate. 
11. Most foreign trade transactions are paid for through the  use of 
12. Central Bank cheques 
13. bank drafts drawn bycommercial banks on their  foreign branches 
14. irrevocable and confirmed letters of credit 
15. letters of credit authenticated by the embassies ofthe  respective countries. 
16. RRFas a scheme introduced by theCentralBank ofNigeria  means 
17. Recording and RediscountingFacility 
18. Refinancing and RecordingFacility 
19. Refinancing and RediscountingFacility 
20. Refinancing and ReinvestingFacility. 
21. Which of the following gives the correct order in which  the listed documents are used? 
22. Debit note, order, delivery note, invoice and state  ment 
23. Order, delivery note, invoice, debit note and state  ment
24. Statement, order, invoice, delivery note and state  ment 
25. Invoice, order, statement, debit note and delivery  note. 
26. Freight note is a document 
27. used by government to transport goods from one  country to another 
28. issued by a shipping company giving details of  charges 
29. used for payment for imported goods. 
30. given by an importer to pay for goods at a future  period. 
31. 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 
32. N594.00 D. N600.00 
33. 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 
34. 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. 
35. The practice by which an insurance company accepts a  very large riskand later shares it with other insurance  companies are called 
36. subrogation B. contribution 
37. re-insurance D. indemnity. 
38. The insurance policy which provides full cover against  all risks at sea is known as 
39. Policywith Particular Average 
40. PolicyFree of ParticularAverage 
41. Marine FreightInsurance 
42. Marine Voyage Policy Insurance. 
43. Berne Union is also knownas 
44. International Credit Union 
45. International Documentary Credit Union 
46. International Union ofCredit and Investment Insurers D. Export Credit GuaranteeScheme. 
47. 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. 
48. A major liability of a commercial bank arisesfrom A. customers’ deposits B. loans and advances C. overdrafts D. staff allowances. 
49. A bank statement is a document 
50. ordering a bank to pay on demand a stated sum of  money 
51. containing records ofreceipts, payments and balance  on an account 
52. used for paying money into a bank account 
53. used for regular withdrawal ofmoeny from a savings  account. 
54. Which of the following is NOT a function of the stock 

exchange market? 

1. Providing long-term loansto large scale enterprises. B. Encouraging people to buy shares and thereby  providing capital forinvestment. 
2. Providing means of assessing the value of a firms’  assets. 
3. Enablingfirmstowind-up quicklyin timesofdifficulties. 
4. The marketing approach bywhich a firm caries out a  detailed analysis of itself, the consumers and its  competitors is known as 
5. market analysis B. marketing mixanalysis 
6. marketing opportunities analysis D. market survey. 
7. The breaking down of a market into separate and  identifiable elements each with its own special product  requirementsis known as market 
8. differentiation B. Segmentation 
9. penetration D. identification. 
10. Taking a new product to a particular part of a country to  test the reaction of consumers to the product is referred  to as 
11. sales promotion B. sampling 
12. merchandizing D. advertising. 
13. A manufacturer can make his product distinguishable from  those of other competitors by 
14. providing catalogues for his wholesalers 
15. aggressive sales promotion 
16. branding and packaging theproduct 
17. selling the product at a much lower price. 
18. Which ofthe following are forms ofsales promotion? A. Advertising, personal selling and publicity. 
19. Advertising, marketskimming and publicity. 
20. Personal selling, packaging andpublicity. 
21. Advertising, packaging and publicity. 
22. A disadvantage of personal selling is that it 
23. increases a company’s operating costs. 
24. decreases a company’s operating costs. 
25. increases a company’s number of customers 
26. reduces a company’s area of patronage. 
27. 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 
28. sue Chinyere for damages 
29. sue Chinyere for specific performance 
30. seize another gown from Chinyere’sshop 
31. regard the contract between them asterminated. 
32. Consumer sovereignty means that the consumer is A. a citizen B. always independent 
33. always wrong D. always right. 
34. When an industry or company is nationalized, the state  becomes 
35. the majorityshareholder 
36. the minority shareholder C. the only shareholder D. an equal shareholder with other individuals. 
37. The Federal Government made efforts at rendering  public enterprises more efficient and profit-oriented

through the process of 

1. privatization B. commercialization 
2. indigenization D. nationalization 
3. Which of the following organizations represents those  who engage labour inNigeria? 
4. Nigerian LabourCongress 
5. Nigerian Employers ConsultativeAssociation. C. Manufacturers Association ofNigeria. 
6. Nigerian Union ofLocal Government Employees. 
7. The practice of assessing employees for payment or  advancement according to their observed achievement  is called 
8. employee ranking B. merit rating 
9. job grading D. employeeevaluation. 
10. Motivation is an essential element in management  because it 
11. leads to the improvement ofstaff welfare 
12. encourages individuals to work towards achieving  the organisation’s objectives 
13. reducesfriction among employeesin the process of  achieving the organization’s objectives 
14. helpsto eliminate industrial disharmony. 
15. The direct authority of a superior over hissurbordinate is  known as 
16. staff authority B. line authority 
17. line and staff authority D. lateral authority 
18. Afirm’s organisational structure would change if A. one of the major partnersdies 
19. there is excessivecompetition 
20. there isseasonal variation in demand 
21. the scope of business operation changes. 
22. The secretariat ofthe Niger Basin Commission islocated  at 
23. Ouagadougou, Burkina Faso 
24. Abuja, Nigeria 
25. Niamey, Niger 
26. Bamako, Mali 
    

Commerce 1997 

1. 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. 

1. I and II B. I and III 
2. I, II and IV D. II, III and IV 
3. A royal charter was granted to the Royal Niger Company  to do business in Nigeriain 
4. December, 1888 B. May,1887 
5. July, 1886 D. August,1885. 
6. Transportation, retailing and wholesaling industriesrely  heavily on 
7. banking B. insurance 
8. manufacturing D. railway. 
9. An example ofindirect service is rendered by A. civil servants B. familydoctors 
10. household servants D. entertainers. 
11. The objectives of a business are determined by the A. workers B. government 
12. society D. promoters. 
13. Partnerships are most suitable where 
14. the partners are family friends 
15. professional are involved 
16. members can easily raise enough capital 
17. 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. 

7. The businessman that may end up not discharging his  social responsibility is 
8. Musa B. Okon 
9. Taiwo D. Kalu 
10. The business with the best objectives is 
11. Okon B. Taiwo 
12. Kalu D. Musa 
13. The business organization in which shareholders have  equal votes is 
14. sole proprietorship B. partnership 
15. co-operative D. limited liability company. 
16. The major objective of corporate mergers is to A. minimize the effects oftaxation 
17. increase financial advantage 
18. facilitate profitmaximization 
19. enhance economies ofscale. 
20. When it becomes necessary to liquidate a company, the  first step to be taken is the appointment of 
21. a receiver B. anauditor 
22. an accountant D. a liquidator. 
23. In which ofthe following circumstancesis a court order

NOT necessary for the winding up of a company? A. Suspension of business for one year. 

1. Special resolution ofmembers. 
2. Reduction in the number ofmembers below the legal  minimum. 
3. Inability to payits debts. 
4. One type of investment that has a variable income is A. debentures B. preferred shares C. government bonds D. ordinaryshares. 
5. A term which indicate that a share istemporarily  suspended is 
6. ex-dividend B. cum-dividend 
7. bond D. stock. 
8. Leasing is the right to use assets for an agreed period in  return for 
9. profit B. interest 
10. wages D. rents. 
11. The form of business financing which involves pledging  of a specific asset is 
12. debenture B. mortgage 
13. loan D. bond. 
14. 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 
15. 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? 

1. N40 000 B. N50 000 
2. N100000 D. N200 000 
3. The turnover of a firm may be affected by A. the demand for its product 
4. the cost of its goods sold 
5. its closing stock D. its net assets. 
6. The cost of transporting goods to customers is called A. carriage inward B. carriage forward 
7. carriage paid D. carriage outward. 
8. The main aim ofselling directly to consumers by  manufacturers isto 
9. discourage the activities of middlemen 
10. make contact withconsumers 
11. eliminate transportation cost 
12. maximizethe profitmargin. 
13. In foreign trade, document of title is known as A. bill oflading, B. bill at sight 
14. certificate oforigin D. declaration form. 
15. Excise duties are paid on goods thatare 
16. imported into the country 
17. manufactured within the country 
18. exported to other countries 
19. kept in bonded warehouses. 
20. Stevedores as a term in foreign trade means men who A. inspect goods in shipsB. import goods by ships 
21. collect duties in ships D. load and unload ships 
22. A close indent is an instruction to an agent to A. order goods from a particularmanufacturer 
23. order goodsfrom anymanufacturer 
24. sell goods to any firm 
25. sell goodsto a certain firm. 
26. The basic distinction between cash discount and trade  discount is that while trade discount is 
27. for a period of 30 days, cash discount isfor a period of  3 months 
28. given by a wholesaler, cash discount is given bya  bank 
29. a reduction in the cataloque price of an article, cash  discount is a reduction in the invoice value 
30. a reduction in value of sales, cash discount is a  reduction in price of goods. 
31. The cost that arisesfrom failure to load or unload a ship at  theport within a stipulated period is known as 
32. excess charges B. demurrage charges 
33. premium charges D. trade charges. 
34. The mode of transportation that is noted for ontime  dependability and low cost per unit on goods carried is A. pipeline B. air 
35. rail D. road. 
36. A person who undertakes any risk in insurance business  is known as 
37. a broker B. an underwriter 
38. an insurer D. anactuary. 
39. The main purpose of insurance isto 
40. encourage business to survive and grow 
41. ensure that facilities are available for operations C. accept risks and extend credits to policy holders D. spread individual losses over all covered participants. 
42. Bank giro is a system where 
43. 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. 
44. Commercial banks are referred to as departmental stores  of banking because they 
45. have many branches B. have many customers C. are found in the cities D. offer many types of services. 
46. A market where new shares are traded is known as A. primarymarket B. stock exchange 
47. secondarymarket D. money market. 
48. When a firm speaks ofstock appreciation, it refers to A. changes in the value of its stock resulting from price  movements 
49. increase in the price of its shares quoted on the stock  exchange 
50. 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 
51. advertising B. marketing 
52. promotion D. consumerism.
53. When a vendor supplies newspapers from house to  house and across the streets, the element of marketing  mix involvedis 
54. product B. price 
55. promotion D. place 
56. The main advantage of using cinema as an advertising  medium isthat it is 
57. cheap B. accurate 
58. accessible D. informative. 
59. When old customers stick to the old place to buy goods  and services, it is known as 
60. goodwill B. personalfactor 
61. window shopping D. patronage. 
62. The most important piece of legislation governing  business and commercial activities in Nigeria currently is  the 
63. Companies Decree,1968 
64. TradeDispute Decree, 1976 
65. Companies and Allied Matters Decree, 1990 
66. Banks and Other Financial Institutions Decree, 1991. 
67. One of the criteria for differentiating consumer markets  from industrial ones is the 
68. type of demand B. type ofsupply 
69. nature of the servicesrendered 
70. price of the goods. 
71. The over-riding objective of the food and drug act in  Nigeria is toprevent the 
72. importation of food and drugs that can be locally  manufactured 
73. consumption of food and drugs not tested by the  ministries ofhealth 
74. adulteration of food and drugs sold in the country D. manufacturers of food and drugs from charging  excessive prices. 
75. The activities of consumers association in Nigeriahave  not been effective because 
76. the consumers are toomany 
77. the government is not favourably disposed towards  consumerism 
78. there is poor enlightenment about consumerrights D. the consumers have no medium for expressing their  feelings. 
79. 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 
80. entrepreneural skill isdeveloped 
81. foreigners’ domination isavoided. 
82. The main objective of a trade association can best be  described as promoting and protecting 
83. the products B. commoninterest 
84. themarket D. customer’s interest. 
85. The management function of evaluating whether  objectives are being achieved is 
86. planning B. directing 
87. organizing D. controlling. 
88. In a business organization, the annual operation plan or  budget is a form of 
89. casual plan B. medium-term plan 
90. long-term plan D. short-term plan. 
91. A key advantage of delegation is that 
92. workers are prepared for higher responsibilities B. the manager has less work to do 
93. the manager spends less time on planning 
94. the organizing growslarger in size. 
95. Social responsibility of business requires enterprises to A. hold annual social parties for thepublic 
96. draw their workers only from the immediate  

environment 

1. address themselves to issues relating to the society. D. set up social welfare centresin their areas ofoperation. 
2. The existing system of governance and the administrative  sub-divisions of a country which affect the operationsof  business in the country is described as 
3. economic environment B. legal environment 
4. political environment D. social environment. 

50 Sudden technological changes can have the effect of  making 

1. a company’s management style ineffective 
2. a company’s product obsolete 
3. the control mechanism difficult to implement 
4. the motivational factors in the company difficult to  monitor. 
   

Commerce 1998 

1. Which of the following contributed least to the evolution  of commercial activitiesin Nigeria? 
2. Development of banks 
3. Development oftransportation. 
4. Development of traders’unions. 
5. Development ofcurrencies. 
6. One of the factors which critically determines the choice  of occupation is 
7. training B. skill 
8. aptitude D. interest. 
9. Extractive industries may also be denominated as A. direct industries B. servicing industries C. primary industries D. indirect industries. 
10. The primary objective of a business organization isto A. cater for the needs of its owners 
11. work towards makingreturns 
12. assist the government to serve the citizens D. improve the standard ofliving ofits proprietors. 
13. Services which are of absolute monopoly can best be  provided by
14. private companies B. limited liability  companies C. public companies 
15. public enterprises. 
16. 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 

1. 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 
2. 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. 

7. It can be deduced from the above that Obi  AgriculturalVentures is a 
8. sole proprietorship B. generalpartnership C. limited partnership D. joint venture. 
9. Which of the statements below is true of Mr Abayomi? A. He can assign his shares to another without consent  of other partners 
10. 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. 
11. A source of capital to private limited companiesisshares  issued to 
12. the public B. selected persons 
13. members oftheBoard of Directors 
14. Dedicated members ofstaff. 
15. Which ofthe following is an example of a conglomerate? A. National Electric PowerAuthority 
16. United Africa Company Nigeria Plc 
17. The Nigerian RailwayCorporation. 
18. First Bank Nigeria Plc. 
19. Which of the following statements is true of preferred  stockholders? 
20. They have no voting rights at annual general meetings B. They have first claim to company assets before  creditors 
21. They have first claim to company assets after all debts  have been settled. 
22. They share dividends equally with common  

stockholders. 

12. 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 
13. pre emptive right B. shareholdersright 
14. ex-dividend right D. oversubscription right. 

9,050.00 9,050.00 

13. What is the currentratio? 
14. 4:1 B. 4.5:1 C. 5:1 D. 25.5:1 

14 What is the acidratio? 

2. 2.95:1 B. 4.25:1 C. 4.75:1 D.5.55:1 
3. The form of capital which is easily transferred into the  form desired is knownas 
4. working capital B. liquidcapital 
5. circulating capital D. capitalemployed. 
6. 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% 
7. A machine which enables sales without the physical  presence of a sales attendant is a 
8. computer machine B. vendingmachine C. telexmachine D. faxmachine 
9. What document is required when a country imposes and  valorem import duties on goods? 
10. A mail transfer B. A shipping note 
11. A bill oflading D. A consularinvoice. 
12. 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 
13. imported and thenre-exported 
14. kept for further processing before sales. 
15. 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 
16. excludes all necessary shipping charges payablefor  insurance 

C.includes all charges payable on shipping a consignment  to the port of destination 

1. includes charges payable for loading goods onto the  ship. 
2. 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 
3. Quantity discount D. Seasonal discount 
4. Nigerian Postal Services (NIPOST) facilitates commerce  in all the following ways except through 
5. cash on delivery service B. recorded delivery  service C. express service D. free on board service. 
6. The document with which a manufacturing enterprise  releases stock of raw materials to the factory for  production is called
7. stock release form B. goods received note C. store issues voucher D. materials release note. 
8. The two main categories under which marine losses  fall intoare 
9. particular loss and average loss 
10. actual loss and general loss 
11. total loss and partial loss 
12. voyage policy loss and time policy loss. 
13. Insurance companies operate on the principle ofindemnity.  This means that an insured person or firm collects A. only half of the losssuffered 
14. double the value of the loss suffered 
15. the total sum of the premiums paid prior to the loss D. damage claims equal to the loss suffered. 
16. The most important difference between community banks  and peoples’ bank is that the 
17. 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 

1. former are service oriented while the latter is profit  oriented 
2. latter advances loans to the public while the former  advance loans to rural dwellers only. 
3. The assets, liabilities and general management of a  distressed bank may be taken over by 
4. International Bank for Reconstruction and  

Development 

1. Nigerian Industrial DevelopmentBank 
2. Nigerian Deposit InsuranceCorporation 
3. Nigerian Bank for Commerce and Industry. 
4. The type of securities that the stock exchange deals with  are 
5. warrants, currency notes, money orders and postal  orders 
6. cheques, bank drafts, warrants and promissory notes C. bonds ivory, treasury bills, debentures and warrants D. stocks, shares, bonds and warrants. 
7. I. Companies must be registered as private limited liability  companies 
8. 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? 

1. I and II only B. I and IIIonly 
2. I, II and III D. II and III only. 
3. An underlying principles in the marketing of goods is  that firmsshould 
4. train their personnel B. be consumer oriented C. advertise the goods D. sell through outlets. 
5. 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? 

1. Marketskimming B. Marketpenetration C. Product live promotion 
2. Above the market pricing. 
3. The oral presentation in a conversation with one or  more prospective buyersfor all purpose of making sales  is 
4. branding of goods B. personalselling 
5. packaging D. publicity. 
6. Personnel activitiesthat promote the general image of an  organisation are part of 
7. advertising B. sales promotion 
8. public relations D. business correspondence. 
9. An agent must not make any secret profits in the  performance of his duties but can only be rewarded by  his principal through 
10. remuneration and indemnity 
11. payment of commission andsalary 
12. granting of business concessions 
13. forwarding of businesslinks. 
14. 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 
15. breach B. performance 
16. fault D. frustration. 
17. A minor is not permitted to enter into a valid contract  because he 
18. cannot pay the consideration 
19. is too young to interprete thelaw 
20. is young in the eye of the law 
21. may not be able to write the contract. 
22. A person who is cheated in a business transaction can  seek legalremedy 
23. even ifthe agreement is verbal and the amount involved  is large 
24. only if the business is a sole proprietorship whose  owner is known 
25. regardless ofthe form of business organization D. only if the transaction is docmented in contract. 
26. The most essential element of a product isthe A. price B. utility 
27. design D. colour 
28. Which of the following is a disadvantage of  nationalization? 
29. It promotes poor economicplanning 
30. The cost ofservicesis not determined bymarket forces. C. It may lead to rationalization or resources 

D.The development oflocal skills and technologies is  retarded. 

40. An example of a consumer protection agency is the A. Nigerian BarAssociation 
41. Nigerian Medical Association 
42. Federal Environmental Protection 
43. ManufacturersAssociation of Nigeria. 
44. The body that organizes, promotes and participates in  local and foreign trade fairs isthe 
45. Ministry ofCommercial andTourism
    
46. Ministry of Finance C. Chambers ofCommerce D. Export Promotion Council. 
47. The Continental WestAfrican Conference is a 

EXTERNAL INTERNAL  ENVIRONMENT ENVIRONMENT 

EXTERNAL  

ENVIRONMENT 

1. group of aWest African countries trading in the same products 
2. conference to foster unity among the West African  countries 

C.group ofshipping lines operating on the same West  African route 

1. trust with shareholdersfrom all WestAfrican  countries. 
2. The main function ofthrift, credit and loans  co-operative societies is to 
3. educate theirmembers 
4. collectmoney from their members 
5. disburse money to their members 
6. raise investment finance among their members. 
7. Management is described as 
8. getting things done through people 
9. implementation of business decisions 
10. the number oflevelsin an organization 
11. the people in authority in an organization 
12. Under normal circumstance, a business enterprise can  be ideally structured 
13. by products, function or territories 
14. around the personalities in the enterprise 
15. on the rulling of the management 
16. on the basis of an order fromstockholders. 

Which of the following sequences can best fit into the  structure above? 

1. People control ideas 
2. Material production ideas 
3. Finance marketing product. 
4. Materia production product. 
5. When a business enterprises provides free service to its  environment, the services is said to be a 
6. civic responsibility B. philanthropic 
7. consideration D. socialresponsibility. 
8. Inventory control is an aspect of 
9. operations research B. materialsmanagement C. the organizing functions D. span of control. 
10. The reduction of import duties among the member  countries of ECOWAS is an example of 
11. preference duties B. preferentialtreatment C. preference tariffs D. preferential excise 
12. In a common market, member countries agree basicallyto A. place bans on other countries’ products 
13. wage war against other countries 
14. establish common barriers against countries outside  the market 
15. negotiate with countries outside themarket for  favourable terms oftrade 
    

Commerce 1999 

1. The conversion of raw materials into finished products  creates 
2. marginal utility B. place utility 
3. form utility D. time utility 
4. Commerce makesit possible for man to live in a A. complex and organizedsociety 
5. society characterized by subsistency 
6. society characterized by dependency 
7. 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. 

3. After paying the debts of Aboki Plc, the balance goes to A. Aboki Plc B. Babalawee 
4. shareholders D. creditors. 
5. Babalawee is a 
6. a claimant B. a manager 
7. an assessor D. a receiver. 
8. A common requirement for public and private limited  companiesin Nigeria isthat 
9. 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 

1. shares can be offrred for sale on the stock exchange D. Shares can be offered for sales through an issuing  house. 
2. The primary motive behind an individual engaging in  production is to 
3. fully engage all the factors of production 
4. make available goods andservices 
5. meet projected profits. 
6. meet basic human needs. 
7. 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. 
8. 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 
9. been issued but have not been paid up 
10. been applied for but not issued 
11. not been paid-up D. not yet been issued.
12. 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 

139. N139.2million D. N286.5 million 
140. A business whose owners enjoy loan facilities on the  basis of personal goodwill is a 
141. commercial bank B. thriftsociety 
142. co-operative society D. community bank 
143. Which of the following is not a veritable source of funds  to a public limited liability company? 
144. Government financialgrants 
145. Advances and loans from banks. 
146. Internally generatedfunds. 
147. 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 

1. can refuse to pay on due date since it is only a  promise. 
2. 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. 
3. 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 
4. Emeka’sright to terminate the agreement 
5. Kamaldeen’sright to re-hire the goods 
6. Emeka’s right to breach the agreement 
7. Kamaldeen’sright to terminate the agreement. 
8. The main documents sent to an importer of goods by the  exporter are 
9. invoice, consular invoice, certificate of origin, freight  note, indent and insurance policy. 
10. indent, bill of lading, certificate of origin, invoice and  bill of exchange 
11. certificate of origin, bill of exchange, invoice, insurance  policy, indent and bill oflading 
12. bill oflading, invoice, insurance policy, consular  invoice, certificate of origin and bill of exchange. 
13. The document that indicates instant payment of cash for  goods whenever they are delivered is 
14. credit note B. proformainvoice 
15. debit note D. statement of account. 
16. 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 

1. Consular invoice D. Bill of exchange 
2. The overriding advantage ofhome trade over foreign trade  
   
3. debtor B. creditor C. exporter D. importer 
4. The document represents a 
5. bill of exchange B. cheque 
6. money order D. promissory note 
7. 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 
8. 5% discount will be allowed on the price chargedif  payment is made after seven days 
9. 5% surcharge will be made unless payment is made  within seven days 
10. 5% discount will be allowed on the price charged only  if the goods are bought within seven days. 
11. 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 
12. the materials should be supplied byAde 
13. the materials should be supplied by both ofthem C. the materials should be supplied byBenson 
14. Benson should be asked to reduce his trade  discount. 

16 A company which issues a promissory note in lieu of 

is 

1. accessibility of seller to buyer 
2. absence of many documents 
3. ease in language oftransaction 
4. easein form of payment. 
5. A distinction between Comprehensive Insurance and  Third Party Insurance is that the latter covers damages A. caused by the insured vehicle 
6. to the insured vehicle 
7. caused by the other vehicle 
8. to the driver of the insured vehicle. 
9. The rate at which a central bank discountsfirst class bills  is called the 
10. fixed rate B. billrate 
11. bank rate D. interestrate 
12. The principle of subrogation states that A. an insured person should be indemnified to the  tune of the amount insured 
13. an insurance company can stand in place of the  insured in dealing with third party 
14. only a person who likely to suffer loss shouldtake  out an insurance cover 
15. there must be a close connection between the actual  loss suffered and risk insured. 
16. Tolu purchased goods from Yemisi and is to pay  custom duties before collection. The goods are likely to  be collected from 
17. a manufacturer’swarehouse 
18. a bonded warehouse C. an importer’s warehouse D. a wholesaler’s warehouse. 
19. The three major functional units which the modern  computer has are 
20. the input, the processor and the output units B. the black box, output and inputunits 
21. BASIC, COBOLand output units. 
22. BASIC, the processor andPASCAL. 
23. 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? 
24. I, III and IV B. II, III andIV 
25. II and V D. I and II 
26. The elimination of faultsin a computer program is called A. console B. debug C. dump D. loop. 
27. 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 
28. is entitled always to a cummulative dividendon the  shares 
29. is entitled to the next dividend accruing from the  shares 
30. will not be entitled to the next dividend due to the  shares 
31. still owes N3 on the shareswhich will be subtracted  from the dividends. 
32. The forum for the selling and buying ofsecurities ofsmall  and medium companiesis called 
33. Second Tier Foreign Exchange Market 
34. Foreign ExchangeMarket 
35. Securities and ExchangeCommission 
36. Secon Tier SecurityMarket. 
37. A wholesale dealer in securities is known as A. A stockbroker B. speculator 
38. jobber D. stag 
39. Modern business philosophy emphasizes A. quality products B. customersatisfaction C. sales volume D. public relations. 
40. The main role of advertising isto 
41. convince prospective buyers to buy 
42. show the actualshape, form and colour ofthe products C. inform people where to obtain goods and service. D. capture the attention of people. 
43. The concept of limiting the types, sizes and other  characteristics of a product line without  

sacrificing utility or durability is called 

1. simplification B. standardization 
2. specialization D. satisfiying. 
3. The focal point of all marketing efforts isthe 
4. seller B. profit 
5. product D. buyer. 
6. Adigun displays goods of different makes on shelves  in his supermarket. Thisis an exmple of 
7. invitation to treat B. offer tosell 
8. offer to purchase D. invitation to sell. 
9. The process of bringing a company under exclusive state  ownership and control is known as 
10. nationalization B. commercialization 
11. indigenization D. privatization. 
12. 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 
13. remunerate Q B. repayQ 
14. indemnifyQ D. settleQ 
15. 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 
16. lawful to both B. unlawful to both 
17. beneficialto both D. detrimental to both. 
18. In every simple contract, the price which is paid to  purchase a promise is called 
19. offeree B. acceptance 
20. consideration D. representation 
21. One major disadvantage of a cartel isthat it A. maximizes productiveefficiency 
22. bringsthe merging firms under control 
23. maximizes profitsfromoperation 
24. eliminates competition andwaste. 
25. Staff position in an organization borderson A. authority B. advice 
26. responsibility D. control. 
27. The line function in a typical manufacturing enterprise is  normally performed bythe 
28. public relationsdepartment 
29. estate or properties department 
30. marketing department 
31. legal department. 
32. 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? 

1. I and II B. II and III 
2. I and IV D. II and IV. 
3. Under what management function would the motivation  of employeesfall? 
4. Staffing B. Controlling 
5. Organizing D. Directing. 
6. The main thrust of government policy of evolving good  business environment in Nigeria is the need 
7. to attract local and foreign investors 
8. for more exportcommodities 
9. for consumer oriented products 
10. to have viable local markets. 
11. Which of these sets of external environmentalfactors

affect a business operation? 

1. Competition, industry and product 
2. Competition, labour andpolitical 
3. Political, cultural andlabour 
4. Economic, social andlegal. 
5. The right of the public to protection against question  able products and marketing practices is 
6. an economic aspect of the business 
7. a social responsibility of the business 
8. a legal aspect of the business 
9. a political aspect of the business. 
10. Which ofthe following group of countries are members  ofthe Niger Basin Commission? 
11. The Republic of Guinea, Burkina Faso and Nigeria B. Ghana, Liberia and the Republic ofBenin. 
12. Mali, Liberia and Nigeria. 
13. Ghana, Burkina Faso andChad. 
14. The proposed monetary integration within ECOWAS  sub- region has the overriding benefit of 
15. improved exchange B. enhanced trade 
16. enhanced development D. improved relations. 
    

Commerce 2000 

1. Government policiesrelating to the establishment and  

Amina Enterprises  

Balance Sheet as at 30/3/99 

operations of businessess are targeted at 

1. even spread of facilitiesand employment 
2. the general improvement of the economy 
3. increasing the profits of business owners D. Diversification and expansion of businesses. 
4. The share capital value that forms part of the balance  sheet total is the 
5. issued share capital 
6. called-up capitalshare capital 
7. authorised share capital 
8. paid-up share capital 
9. Bank overdraft as a short term source of fund is 
10. a currentliability 
11. granted to a newly opened account 
12. repayable after more than a year 
13. an overdrawn account 
14. The measure of independence available to the individual  buisness units that come together is the main difference  between 
15. vertical and horizontal integration 
16. merges and acquisitions 
17. trust and cartel 
18. consortium and amalgamation 
19. The major factorsthat facilitate merchadising are 
20. communication, advertising andbanking B. Trading. Warehousing and production 
21. Banking, insurance and transportation 
22. 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 

6. What isthe total fixed capital? 
7. N675,000 B. N575,000  
8. N570,000 D. N550,000 
9. Determine the circulating capital 
10. N250,000 B. N245,000  
11. N235,000 D. N225,000 
12. The term PLC impliesthat the shares are availble A. publicly on the stock exhange 
13. privately on the stock exchnage 
14. to the public at the comapny 
15. publicly in commercialbanks 
16. The application of division of labour should generally  bring about 
17. increase in the variety of goods and services B. increase in the quantity of goods and services C. cheapness of goods and services 
18. cost effiiciency in the production of goods and  services 
19. On liquidation of a public limited liability company, the  residual owners arethe 
20. Creditors B. debenture holders C. preference shareholders 
21. ordinary share holders
    
22. 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 

12. Which of these is both merit and demerit in partnership? A. The bearing ofrisk 
13. Its unlimited nature 
14. The number ofpartners 
15. The withdrawal of a major partner 
16. A printer that burns the print images onto the  photosensitive drum is called 
17. dot matrix printer B. laser printer C. daisy wheel printer D. thermal printer 
18. The insurance principle that requires full disclosure of  information on the insured is known as 
19. indemnify B. Caveat emptor C. Subrogation D. uberimae fidei 
20. A bank form used to transfer money from personal  to creditor’s account is called 
21. credit transfer form B. debit transferform C. customer transfer form 
22. bank transfer form 
23. A console is a device used in 
24. moving an indicator on the screen 
25. forming charcters by hearing sensitive ribbon C. holding magnetic tapereel 
26. communicating between operator and  

program 

17. The fucntion of a merchant wholesaler isto A. buy in bulk, store and sell to retailers as  desired 
18. bring buyers and sellers together 
19. Possess title to the good store and sell to  retailers 
20. find markets for producers 
21. The computer using linear integrated circuit  technology coupled with quantification of data  in terms of length and distance is known as 
22. The main factors militating against therapid  growth oftrade in Nigeria are 
23. Inadequate transportation network and huge  capital outlay 
24. Lack of good transportation network and  

insecurity of investments 

1. Lack of motivation and government  

attitude towards trade 

1. Huge capital outlay and government  

attitude to trade 

22. 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 
23. N420 D. N320 
24. The Central Bank differsfrom commercial banks  becasue it 
25. renders services to customers 
26. carries out foreign exchange transactions C. issues currencies 
27. discounts bills 
28. 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 
29. An invoice can be described as a 
30. contractual agreemnt for the sale of goods B. receipts containing necessary information  about the goods 
31. document specifying quantity, description,  prices and total value of purchases 
32. letter specifying the contractul sales of goods  between two parties. 
    
34. digital computer B. hybrid computer 
35. mainframe computer 
36. Analogue computer 
37. Ocean liners are subdivided into 

Price 

Product CustomerPlace 

Promotion 

1. 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 

1. marketing mixrelationship 
2. productmix 
3. promotion mix relationship 
4. advertising mixrelationship 
5. The role of public relations is principally to A. sustain good relationship 
6. advertise a firm’sproduct 
7. 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 
8. Marketing Strategy B. publicity 
9. Sales promotion D. Advertising 
10. A group ofspecialized functions of marketing is A. buying, selling, advertising and packaging B. buying, selling, storing andinformation 
11. buying, selling labelling and promotion 
12. buying,selling, skimming and pricing 
13. The major condition for obtaining loan in thrift  credit and loans cooperative societies is 
14. provision of collateral security 
15. a high level of eductaion 
16. an approved project plan 
17. possession of a large business. 
18. The type of advertising that seeks to persuade  consumers to buy a particular product is 
19. informative advertising 
20. mass and sopecific advertising 
21. Persuasive advertising 
22. competitive advertising 
23. The most important advantage of personal selling  is that it 
24. allows sellers to perceive buyer’s needs 
25. takes place easily on the highways 
26. allows sellers to sell their goods quickly 
27. takes place without the permission of  

governemnt 

33. The stock exchange helps to provide capitalfor  industrial projects becasue it 
34. determnines value of shares, stocks and  

other securities 

1. assists companies to change their securi  

ties into cash 

1. assists goverment in implementingits  

monetarypolicies 

1. renders agency servcives to organisations  and governments 
2. A form of money that has gone out of use is A. commoditymoney B. bank money 
3. paper money D. foreign money 
4. A shortcoming of the second-tierforeign exchange  market in Nigeria isthat it 
5. serves as a mechanism for evaluation an unrealistic exchange rate ofthe naira 
6. contribute to flooding the market with 

foreign essential commondities 

1. contributes to destablizing nationalre 

source 

1. creates unhealthy competition amongst users of foreign exchnage 
2. The instument establishing the Economic Community of  WestAfrican state in 1975 is 
3. a decree B. a treaty 
4. an act D. a constitution 37. The composite functions of management are a. planning, supervising, communicationand directing 
5. coordinating, supervising, staffing and communicating 
6. planning, controlling, organising and  

directing 

1. directing, supervising, motivatingand  controlling. 
2. The three components of staffing are 
3. recruitment, interview and appointment 
4. recruitment, selection andplacement 
5. recruitment, test andplacement 
6. recruitment, procurement andappointment 
7. The primaryobjective of a trade association is to A. exchange information and negotiate as apres  sure group 
8. establish easy link withgovernment 
9. undertake research work on behalf ofmembers D. Operates as a group against other groups 
10. 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 

1. foster close co-operation among West  

African nations 

1. guaranteed freedom of navigationfor all  West African nations 
2. The legal aspect of business is designed to 
3. protect infact industriesfrom collapse 
4. safeguard consumers from undue business  practices 
5. protect business organisation and consumers D. encourage free exchange among businesses 
6. General Manager 

Marketing Personnel Production Financial Secretary Foreman Foreman 

Workers Workers Workers 

The organisational structure above represents 

1. line and functionalstructure 
2. functional structure 
3. line and staffstructured 
4. line structure 
5. An aspect of the law which allows an exclusive right for a limited number of yearsis a 
6. patent B. trademark 
7. ratification D. copyright 
8. The basis elements of a valid contract are A. offer, acceptance, consideration and witness
9. offer, acceptance, capacity, legality and consider  ation 
10. offer, acceptance, intention, capacity and legality D. offer, intention, acceptance and legality 
11. In an organisation, civic consideration arisesfrom A. its social negative impacts on the community B. its operations within the environment 
12. the profit derived from the environemnt D. the fact that it is registered in that locality 
13. The main difference between nationalization and indigenization in terms of 
14. efficiency B. profit C. Technology D. shareholding 47. After registration, a certificate of trading is usually  issued to 
15. Partnership B. Private 
16. Public company D. Soleproprietorship 
17. 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 
18. agency by necessity B. del credere agency C. agency by ratifictaion D. agency by estsoppel 
19. A chamber of commerce is any association made  up of 
20. merchants B. manufacturers 
21. entrepreneurs D. importers 
22. The first known legislation to protect consumer  right in Nigeria isthe 
23. Usualy laws B. Sale of goods act. C. Hire purchase act D. Food and drugs act. 
    

Commerce 2001 

1. The pivot on which the wheel of commerce rotates is A. tarriff B. trade 
2. taxation D. price 
3. A distinguishing characteristics of labour isthat it is A. constant B. expensive 
4. mobile D. cheap 
5. Land as a factor of production does not vary in A. quantity B. nature 
6. quality D. cost. 
7. Whhich of the following services does a lawyer render? 
8. industrial services B. direct  services, C. indirect services 
9. commercialservices 
10. The partner that only contributes part of the capital  used in the formation and running of a businessis known  as 
11. a passive partner B. an activepartner 
12. a dormant partner D. a nominal partner 
13. One major advantage of a credit and thrift cooperatives  is that 
14. it can approach governemnt for a loan 
15. it encourages saving habits  
16. there are no legal restrictions 
17. each member has a vote during meetings, 
18. A form of ownership which exploits the strengths of one partners to remedy the weaknesses of the other  is a 
19. joint partnership B. cooperative C. corporation D. joint venture. 
20. At the collapse of a business enterprises, the person  appointed to dispose of the assets is called 
21. a broker B. an auctioneer 
22. a liquidator D. anauditor 
23. Entrusting the management of a comapny to the courts  to enable the settlement of the company’s 

oblilgations is an indication of 

1. distress B. closure 
2. bankrupcy D. liquidation 
3. The financial instrument for borrowing in which  collateral is usually more than the amount borrowed is A. trust certificate B. detachable warrant 
4. mortgage bond D. convertible securities
5. I. Personal saving 
6. Retained Earnings 

III Acrued Taxes 

Which of the items above constitute internal sources of  financing for companies 

1. I & II B. I &III 
2. II & III D. I, II & III 
3. The difference between total current assets and total  current liabilities of a business isknown as 
4. 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 

13. The capital employedis 
14. N1,000 B. N1,370 
15. N140 D. N50 
16. The capital owned is 
17. N2,740 B. N1,350 
18. N1,150 D. N570 
19. One of the reasons why wholesaling must continue  is that 
20. the taxpaid by wholesalers on their profit  enhances national revenue 
21. by creating artificial scarcity, the wholesaler is  enhancing competion in the economy, 
22. the wholesaler provides technical advice to the  retailer 
23. the gap between manufacturers and retailer is  reduced by wholesalers 
24. A merchant wholesaler isreferred to as: 
25. del-credere agent B. a broker, 
26. rack jobber D. a factor 
27. A proforma invoice issent to inform a buyer  about the : 
28. quantity of goods B. prices of goods, C. designation of goods D. quality of goods 
29. The balance of payments of countries is 
30. a record of imports and exports 
31. a systematic record of transactions among  countries at a giventime 
32. the current and the capital accounts and their  payments 
33. the trade relationships and payments among 

nations 

19. The major procedures in the purchase and sale of  goods are enquiry 
20. quotation, order and invoice 
21. placement order andinvoice 
22. bargain, order and invoice 
23. 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. 

20. The trade discount receivebale by Mr. Bacusis: A. N4,500 B. N7,500  
21. N10,500 D. N12,000 
22. If Mr. Bacusfulfil his promise, he will be entitled to  a cash discount of 
23. N2,760 B. N3,000 
24. N6,500 D. N9,500 
25. 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 
26. Warehousing is a productive function because it  increases the 
27. quantity of goods B. utility of goods C. quality of goods D. price of goods 
28. A factor neccessary for siting a warehouse is nearness  nearness to: 
29. raw materials B. labour 
30. Capital. D. consumers. 
31. Pooling of risk in insurance meansthat 
32. 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 
33. The indemnification of Ama by his insurance  cecompany after a fire disaster meansthat he: 
34. has been guaranteed by the insurance company B. will be cleared of any fault by the insurance  company 
35. has been by the insurance company 
36. will be covered to the limit of the amount in  the policy 
37. The major difference between insurance and assurance is  that while insurance 
38. takes care of the uncertainty, assurance takes  care ofrisks 
39. takes care of risks, assurance takes care of  uncertainty
40. hinges on possibilities, assurance is based on  possibilities 
41. is about indemnity, assurance is about life in  the future 
42. A documenatry bill will normally be acompanied by A. salesinvoice, bill oflading and insurance  certificate 
43. clean bill, bill oflading and insurance cerificate C. bill oflading, consular invoice and  

insurance certificate 

1. consular invoice, FOBcertificate and bill of  lading. 
2. Which of the following best describes the classifi  cation of computers 
3. mini -computer,speed andsize 
4. micro-computer cost and liabilities 
5. mini-computer,microcomputer and work station, D. Amini-computer, hybrid and digital 
6. The temporary working area of the central procession  unit is calledthe 
7. C-DROM B. C-D RAM 
8. ROM D.RAM. 
9. The significance of money to moderneconomic  systems is that it 
10. is used as a means of payment 
11. promotes specialization and exchange 
12. measures value and promotes exchange. D. causes  inflation and deflation in the economy 
13. One major charcteristic of credit unions and thrift  societies is that 
14. the legal processes involved in theirformation  are rigid. 
15. membership is compulsory to peoplein the same  line of business 
16. the contribution of every member dependson the  member’s ability. 
17. a minimum of ten people in the same line of  business can form the union. 
18. 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. 

34. The main factors that determines the value of a stock on  the Stock exchangea re dividend and 
35. the psychology of the market 
36. capital gain 
37. capital appreciation 
38. warrantpayment. 
39. One of the main objectives of the second-tier securities market in Nigeria is to 
40. achieve a realistic exchnage rate for the Naira B. eliminate currencydealing in the blackmarket C. assist companies to raise capital 
41. attract investment flow. 
42. The activities aimed at finding out customers’ need  and satisfaction can be described as 
43. socio-marketing 
44. macro-marketing, 
45. micro-marketing 
46. conceptual marketing. 
47. The most effective type of advertising for branded  product is 
48. 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. 

38. Which of these companies are more engaged in  public relations activities? 
39. I & II B. I & III 
40. II & IV D. III & IV 
41. 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 

40. Who are parties to the contract of renting the room. A. Musa and Jacob B. Musa and Audu 
41. Adamu and Musa D. Audu and Jacob. 
42. Who is the offeree in this contract? 
43. Musa B. Audu 
44. Adamu D. Jacob 
45. The maximum number ofshareholdersin a public  liability comapny is 
46. 20 B. 50 
47. 100 D. Unlimited 
48. One way by which government reduces the  repatriation of capital isthrough 
49. nationalization B. divestiture 
50. indigenization D. naturalization. 
51. One of the major functions of a chamber of  commerce isto: 
52. promote and protect trade, industry and agriculture b. advise members on regulations of other countries C. settle disputes that arise out of trade 
53. publish books and periodicals desired by members 
54. Departmentalization is an aspectof 
55. planning B. organising 
56. directing D. controlling. 
57. A functional organisational structure is where:
58. staff performing the same fucntions are  

grouped together 

1. departments performing similar functions are  gouped together. 
2. activities of similar nature are grouped  

together 

1. the staff performing similar functions are  grouped together 
2. In the line type of organizational structure A. the lines of authority are vertical 
3. there is the application of division of labour C. specialization is carried to a maximum degree D. The llines of authority are horizontally. 
4. Proper disposal of waste by business firms is one way  of discharging their 
5. responsibility to government 
6. environmental responsibility. 
7. community responsibility 
8. responsibility to customers. 
9. One of the obstacles to achieving the objectives of  ECOWAS is 
10. lack of common currency B. colonial linkages, C. sovereigntyof states D. language differences. 
11. One of the main objectives of establishing theNiger  River Basin Commission wasto : 
12. embark on a comprehensive survey of the  available water resources 
13. carry out research for the development offresh  water fisheries, 
14. develop infrastructure to facilitate economic  activties 
15. promote trade among member-statesto  improve standard ofliving. 
16. Awarding scholarships and sponsoring sports by  a business organization are example of 
    

Commerce 2002 

1. The most important factor that delayed the development  of commerce in Nigeria was 
2. the inefficient means of communication 
3. that there were few entrepreneurs 
4. the unavailabity of infrastructural facilities 
5. that there were few developed markets 
6. Secondary production has to do with changing the A. shape of raw materials through  

construction operation 

1. physical form of raw materials into finished  goods 
2. utility of rawmaterial by an engineering  

process 

1. nature of raw materials through  

manufacturing 

3. The major responsibility ofan entrepreneur is A. employing all factors of production in the  

business 

1. coordinating and determining the  

proportion of what to produce 

1. planning and organizing all activities in the  business 
2. directing and controlling all the affairsof  

the business 

4. Which of the following best describe the scope of  commerce? 
5. All forms of commercial exchanges and the  manufacturing industry 
6. buying and selling and the construction  

industry 

1. all occupational exchanges relating to  

industries and commercialactivities 

1. buying and selling as well as the extraction  of natural resources. 
2. Capital as a factor of production can be used as A. money that is regarded as asset 
3. goods that are useful in business 
4. input for further production 
5. service that provide satisfaction 
6. The agency that currently oversee the privatization  and commercialization processes in Nigeria is the A.  securities and exchangecommission 
7. technical committee on privatizationand  

commercialization 

1. Nigeria stock exchange D. bureau ofpublic  enterprises 
2. 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 
3. bankruptcy B. frustration 
4. fraudulence D. breach of contract 
5. Which of the following countries are member of the  lakeChad Basin Commission? 
6. Nigeria B. Benin and Nigeria 
7. Chad andBenin 
8. Nigeria and Mali 
9. A core investor in the current phase ofprivatization in  Nigeria is onewho 
10. can afford to buy most of the shares of the  enterprises 
11. will be at the core of the enterprises 
12. can mobilize foreign currencyequivalent  

to the value of the enterprises 

1. has the technical know-how of the  

enterprises. 

10. The agency in Nigeria which ensure that products  conform to government quality specification is the A.  standard organization ofNigeria 
11. Nigeria consumer’s association 
12. manufactures association ofNigeria 
13. Nigeria chamber ofcommerce
14. advertising strategy 
15. economic responsibility 
16. marketing strategy 
17. social responsibility 
18. The commercialization of public enterprises is  aimed at 
19. increasing efficiency and making the 

enterprises self-sufficient 

1. advertising and promoting the goods and  services of the enterprise 
2. increased assistance and patronage of the  enterprises by the public 
3. selling the goods and services of the 

enterprises 

13. An author is exclusive right to his published and  unpublished works is known as 
14. authors right B. constitutional right C. patent right D. copyright 
15. Under an endowment policy, the money handed  over to the insured at the expiration ofthe stipulated  time or at death isthe 
16. indemnity B. surrender value 
17. lump sum benefit D. insurance premium 
18. The machine used for sending telex message is  known as a 
19. radar B. faxmachine 
20. Dictaphone D.teleprinter 
21. Which of these insurance principlesrequires a close  connection between the actual loss suffered and  the risk insured? 
22. Indemnity B. proximate cause C. contribution D. subrogation 
23. The unit through which the results of a processed  data are displayed is the 
24. logic unit B. display unit 
25. control unit D. output unit 
26. Which of the following is used to inform the  addressee that a registered parcel is ready for  collection? 
27. Express label B. counterfoil 
28. telegram D. Slip 
29. The type of computer commonly found in offices  is 
30. laptop B. desktop 
31. the hybrid computer 
32. the main frame computer 
33. The mode of transporting crude oil to the ports for  export purposes is by A. tanker B. rail C. road D.  pipeline 
34. The temporary insurance certificate issued to the  insured before drawing up a policy isa 
35. cover note B. testimonial 
36. time policy D. proposal form 
37. The bulls and bearsin the Stock Exchange market  help tominimize 
38. the number of shares and bonds sold 
39. price increases of securities 
40. flunctuations in the prices of securities 
41. the elasticity of the prices of securities 
42. Debentures differ from shares in that A. they are secured on the company’s assets B. ownership is open to thepublic 
43. they form part ofthe capital ofthe business D. rewards are usually paid out of profit. 
44. The Stock Exchange is a market where A. long-term securities are sold 
45. all types of securities are sold 
46. short term securities are sold 
47. medium-term securities are sold 
48. A retail cooperative society aims at 
49. hoarding manufactured goods 
50. cutting off the profits of middlemen 
51. lending money to member at low interests D. encouraging members to savemoney 
52. A bill of exchange already accepted can be  discounted by the holder in 
53. theCentral Bank B. at least twobanks C. his bank D. any bank 
54. The document issued by the seller which gives  details of the goods he sells is known as 
55. catalogue B. tender 
56. price list D. invoice 
57. 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? 

1. I,II, III and VIII B.III,V,VI andVIII 
2. I,II, III and VI D.II,V,VI andVII 
3. The organizational structure that relates the  positions of specialists to the line managers is  called 
4. line structure 
5. staff structure 
6. line and staffstructure 
7. .functional structure 
8. A wholesaler who possesses the title to the goods  he sell is known as 
9. a merchant wholesaler 
10. a multiplewholesaler 
11. a generalwholesaler 
12. an agent wholesaler 
13. An important principle of a good organizational  structure is 
14. ideal standard B. span of control
15. clarity ofmission 
16. adequacy of resources 
17. A company that is registered with the Corporate  Affairs Commission only without being enlisted  on the stock exchange is a 
18. public liabilitycompany 
19. joint ventures company 
20. limited company 
21. registered company 
22. A contract for the sale of goods involves the A. producer, the seller and the buyer of goods B. offering of goods to customers 
23. transfer of title to goods for money 
24. exchange of goods 
25. The total of the share capital which a company  would be allowed to issue is know as 
26. called-up capital B. paid up capital C. nominal capital D. issued capital 
27. The process of mobilizing, engaging and maintaining workers to work for an organization is  referred to as 
28. staffing B. selection 
29. recruitment D. employment 
30. Recognized members of the Stock Exchange who  buy and sell securities on their own behalf are  known as 
31. bull B. jobbers 
32. broker D. stagers 
33. Which of the following involves foreign trade? A. Supermarkets B. chain stores 
34. departmental stores D. commodity market 
35. Which of the following is a function of employers’  association? 
36. Undertaking research on behalf of employees B. promotion ofthrift in workers 
37. promotion of workerswelfare 
38. dissemination of information through  

sponsored journals 

39. Which of the following industries is normally  located near the source of its rawmaterials? 
40. Footwear B. cement factory 
41. textile industry D. automobile assembly 
42. One of themost important functions of marketing  is 
43. encouraging research activities to meet  needs 
44. creating classes of merchants among  businessman 
45. the extension of markets for businesses D. providing finances to businesses 
46. Securities on which the buyers are not issued with  certificates arecalled 
47. authorized securities 
48. inscribed securities 
49. bearer securities 
50. registered securities 
51. In product pricing, which of these elementsneeds  more consideration that others? 
52. the demand for the product 
53. the demography of the buyers of the 

product 

1. the economic conditions in the market 
2. the cost of producing the product. 
3. The principal objectives of the Central Bank of  Nigeria can be classified broadlyinto 
4. banker’s bank, lender of last resort and  issuance of currency 

B service, currency management and  

financial intermediation 

1. banking services, foreign exchange  

operations and open market operations 

1. service monetary policy and  

developmental functions. 

44. The letters E and OE standsfor 
45. errors of exception 
46. errors and omissions excepted 
47. estimated and order error 
48. end of error 
49. An important issue for consideration in the product  element ofthe marketing mix isthe 
50. adequate promotion of the product 
51. channel of distribution of the product C. price of the product 
52. planning and development of the product 
53. A group of companies is acollection of A. subsidiaries and their holding company B. firms 
54. associates and their holding company 
55. industries 
56. Which of the following is an example of trade  associations? 
57. European Union 
58. National Marketing Unity 
59. Organization of AfricanUnity 
60. National Farmer’sCouncil 
61. Which of the following determines the quality of  the goods that a retailer sells? 
62. The mode of contract of sales 
63. the type ofmanufacturer 
64. the regulations regarding sales in the area D.  the location of his shop 
65. An advantage of hire purchase to the  

consumer is the 

1. economics of scale in production
2. possession of goods before payment C. increase in turnover and profits D. low interest rate chargeable 
3. The founders shares are usually referred  to as deferred shares because the holders A. are entitled to cumulative dividends 
4. receive their dividends after other  share holders 
5. receive their dividends before other  shareholders. 
6. Are not entitled to any dividends. 
   

Commerce 2003 

1. An example of service rendering trade association is A. Nigerian BarAssociation 
2. Association of Nigerian Miners 
3. Cocoa Farmers Association 
4. Manufacturers Association of Nigerian 
5. An obstacle to international trade is 
6. Trade imbalance betweencountries 
7. Availabilityoflocal market 
8. Quantity and quality oflabour 
9. Cost of finance 
10. The right of ownership with respect to goodsor property  is 
11. right of occupancy B. proxy 
12. title 
13. certificate of occupancy 
14. The main motive of chambers of commerce and trade  association isto 
15. assist the government in achieving its  objectives 
16. protect the interest of consumers 
17. maximizeprofit 
18. protect and promote the interests ofmembers 
19. A pattern that shows the kinds of participants involved  in the production distribution and ultimate use of a  product is referred to as 
20. selection B. strategy C. structure D. synergy 
21. Goods that are manufactured or acquired by the seller  after the contract of sale are 
22. Specialty goods B. Future goods 
23. 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. 

7. What was the amount paid by Ojo? 
8. N382,500 B. N425,000 
9. N363,375 D. N61,625 
10. How much was the trade discount? 
11. N42,500 B. N27,500 
12. N22,500 D. N20,000 
13. The basic function of the Nigerian Ports Authority is to A. Ensure that the right calibre of personnel is  employed at the ports 
14. Coordinate and regulate the activities of shipping  lines 
15. Facilitate and control the movement of goodsand  services into and out of the country 
16. Coordinate the activities of all the seaports in the  country 
17. The concept that refers to the sale, transfer or exchange  of goods and services is 
18. Industry B. Trade 
19. Tariff D. Marketing 
20. A guarantee given by one person or party to another in  which the integrity of the person is assured is 
21. Fidelity B. Term assurance C. Subrogation D. Indemnity. 
22. A firm that adapts itself to delivering the desired  satisfaction more and effectively and efficiently than  its competitors is said to be practicing. 
23. Price concept B. D i s t r i b u t i on  concept 
24. Product concept D. M a r k e t i n g  concept 
25. The payment made periodically in respect of an  insurance policy entered into is known as 
26. Bond B. Commission 
27. Premium D. Surrender value 
28. An example ofservice rendered by NIPOST is A. Electronic mail B. Telephone 
29. Mail D. Delivery 
30. The focal point of marketing is 
31. The competitor E. The buyer 
32. Profit-making G. Sales
33. The type of marine insurance which covers either damage  or loss to the vessel and such as caused by it to other  vessels is 
34. Bull insurance B. Time insurance 
35. Freight insurance D. Cargo insurance 
36. The management function that makes the difference in  intensity of behaviour is 
37. Coordinating B. Controlling 
38. Motivation D. Planning 
39. One of the function of seaports is the provision of A. Berthing and landingfacilities 
40. Loading and offloadingfacilities 
41. Control room for relaying radiomessages D. Ware houses for storage of cargo. 
42. The process of dividing task into jobs and departments  and of delegating authority is know as 
43. Staffing B. Leading 
44. Directing D. Organizing 
45. Communication process involves the transmission of a  message over a selected channel to the 
46. Receiver B. Audience 
47. Sender D. Encoder 
48. Stimulation of demand is a kind of communication in  marketing which connotes 
49. Personal selling B. Sales promotion C. Advertising D. Merchandising 
50. A functional structure is an organizational structure in  which 
51. Abstract rules are applied 
52. Equity prevails 
53. A Specialist enforces his directives 
54. There is nohierarchy 
55. Entrepreneurship mainlyinvolves 
56. Risk-taking B. Initiating 
57. Skilled manpower 
58. Knowledge 
59. In the event ofthe liquidation of a company, the first to  be settled are: 
60. Debenture holders 
61. Members of the board 
62. Preference shareholders 
63. Ordinary shareholders 
64. The business organization established mainly for the  purpose of carrying out specific assignments for a  specific duration is a 
65. Joint venture B. Cooperative society 
66. Partnership D. Company 
67. Which ofthese factors ofproduction is relatively fixed in  supply? 
68. Capital B. Entrepreneur C. Human resources D. Natural resources 
69. The location of a business is mostly influenced by A. Market outlet 
70. Management decision 
71. Capital D. Environment 
72. The evolution of commerce in Nigeria is traceable to  the 
73. Period of barter economy as human needs became  limitless 
74. 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 
75. Primitive stage of existence of human beings. 
76. One of the requirements necessary for setting up a  business is 
77. Registration B. Advertisement C. Knowledge of the business 
78. Documentation 
79. The assembling of products into usable form is known  as 
80. Construction B. Manufacturing 
81. Formation D. Creation 
82. The government’s policy thrust on the business  environment isto 
83. Promote exports B. Attract investors C. Be self-sufficient D. Increase production 
84. Social responsibility is the ability of an organization to A. Tackle the socio-economic problem of its  community 
85. Meet the needs of its community 
86. Contribute to sustaining and developing its  community 
87. Operate without disrupting the very essence of  the environment 
88. The act of a person employing another to enter into a  contract on his behalf is known as 
89. Business B. Sale of goods 
90. Bilateral agreement D. Agency 
91. The ECOBANK is the initiative of 
92. Somewell-meeting Nigerian shareholders B. The federal government of Nigeria 
93. West African states to foster trade 
94. The lagos state government to enhance  capitalmobilization. 
95. Privatization is concernedwith 
96. Capital ownership between the public and the  government 
97. The dilution of ownership among the public C. The individual ownership ofcompanies D. Government ownership ofcompanies 
98. Electronic computers differ from human beings in that  they process data and minimize errors in a
99. Faster and more accurate manner 
100. More organizedmanner 
101. Faster but less accurate manner 
102. Slower but more accurate manner 
103. A major benefit derivable from the privatization and  commercialization of public enterprisesin Nigeria is A. Increase in wages 
104. Employment generation 
105. Information technology 
106. Revenue generation 
107. The device which interprets and carries out the  instructions presented to it by the computer program  is known as 
108. Software B. Micro-processor 
109. The body charged with the responsibility to register  shares for subscription on the stock market in Nigeria  is the 
110. Securities and exchangecommission 
111. Nigerian stock-exchange 
112. Nigerian deposit insurance corporation 
113. Central bank ofNigeria 
114. An essential factor for evaluating the different sources  of funds for a business is the. 
115. Decree establishing the business 
116. Ownership structure of the business 
117. Size and the type of the bank 
118. Burden of cost and repayment  

Liabilities N Assets N 

1. Mouse D. Hard-disk 
2. 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 

40. 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?
    
41. That there are varieties of products 
42. That the right quality of goods and services  is sold 
43. Increase in production capacity 
44. Increase in the level of consumer awareness 
45. The most widely used computer language that focuses  on solving science-oriented problems is 
46. FORTRAN B. BASIC 
47. ADA D. COBOL 42. Banks are engaged in the business of buying and selling of 
48. Bills ofexchange 
49. Investment of credit 
50. Intangible products 
51. Land 
52. A source of short-term finance to companies is A. Share capital B. Debentures C. Retained earnings D.  

Corporate tax 

300. N250,000 B. N300.000 C. N420,000 D. 

N200,000. 

47. Find the currentratio 
48. 1.53:1 B. 1.85:1 
49. 0.87:1 D. 0.50:1 
50. Money can simply be referred to asa 
51. Medium ofexchange 
52. Means for the settlement of debts 
53. Durable asset for doing business 
54. Standard of value 
55. A type of long-term loan granted to companies with fixed  interest as well as with redeemable and irredeemable  features is referred to as 
56. A debenture B. A bond 
57. A termloan D. An overdraft 
58. Public debt management is one of the function of a A. Merchant bank B. Central bank C. Commercial bank D. Development bank. 
    

Commerce 2004 

1. Ships that sail across the ocean and operate on scheduled timetables are 
2. ferries B. ocean liners 
3. tramp steamers D. coastal liners. 
4. Non-insurable risksinclude 
5. gambling B. damage to property 
6. death D. marineproblems. 
7. The program that makes up the operating system in a  computer is 
8. microprogram B. system flowchart C. system software D. syntax. 
9. When an organization studies a market that is  underserved by others and creates a product or service  for the segment, it is engagedin 
10. market integration B. marketpositioning C. market orchestration 
11. product differentiation. 
12. Coverage against unexpected events is called A. insurance B. assurance 
13. warranty ,” D. reinsurance. 
14. An insured risk which occurs accidentally as a resultof  defects in a ship is 
15. a voyage policy B. a total loss 
16. an emergency D. a particularaverage. 
17. Communication enhances business activities by A. facilitating interaction between producers and  consumers 
18. facilitating interaction among mediahouses C. ensuring the movement of goods from the  producer to the consumer 
19. keeping the goods safe until they are needed. 
20. In business, the computer is very important especially  in 
21. fmancial management B. marketingmanagement C. educational management D. information management. 
22. What is the most important use of promotionin  marketing? 
23. Persuasion. B. Conviction. C. Information. D. Education. 
24. The current highest decision-making body on  privatization and commercialization of public enterprises  in Nigeria isthe 
25. National Council onPrivatization 
26. Securities and ExchangeCommission 
27. Nigeria Investment PromotionCommission D. Bureau of Public Enterprises. 
28. The members ofthe Niger Basin Commission include A. Guinea, Ghana and Niger Republic 
29. Burkina Faso, Guinea and Nigeria 
30. The Gambia, Benin Republic and Chad Republic D. Nigeria, theGambia and Cameroun. 
31. Business environment refersto all elements that are A. outside an organization but relevant to its  operations 
32. inside an organization but irrelevant toits  operations 
33. internal to an organization and relevant toits  operations 
34. external to an organization but indirectly related  to its operations. 
35. Consumer rightsinclude the right to 
36. credit B. free samples of aproduct 
37. redress D. a share ofprofits. 
38. One important requirement for the membership ofthe  ECOWASis 
39. In Nigeria, the body that ensures that its members  operate according to their professional ethics is the A. SON B. NPF 
40. MAN D. NAFDAC. 
41. A transporter who had to sell some perishable goods  without the prior authority of the owner becomes an  agent by 
42. conduct B. necessity 
43. ratification D. estoppel. 
44. Poor sewage disposal, oil spill and indiscriminate refuse  dumping all leadto 
45. land pollution B. water pollution 
46. land and water pollution D. air and water pollution. 
47. One ofthe advantages of commercialization is that it A. encourages entrepreneurship 
48. increasesthe salaries of workers 
49. motivates government to establish more businesses D. gives workers on-the-jobtraining. 
50. A common element in all contractsis 
51. offer B. consideration 
52. acceptance D. agreement. 
53. Sources of finance to a business include personal  savings, shares, debentures and 
54. loans from IMF B. bank overdrafts 
55. central bank loans D. money from political parties. 
56. Charges for loans paid by commercial banks to the  Central Bank of Nigeria are called 
57. bank rates B. credit charges C. interest rates D. bank charges. 
58. In the primary market, new shares are issued through A. personal selling, publicity and advertising 
59. 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. 
60. The instruments of credit include 
61. billboards and postal stamps 
62. payment vouchers and statement of account C. bills of exchange and promissorynotes 
63. bills of exchange and salaryvouchers. 
64. The shares of a company listed on the stock exchange  for sale are referred to as 
65. registered shares B. deferred shares 
66. issued shares D. quoted shares. 
67. What is the role ofthe capital market in the privatization  exercise inNigeria? 
68. Selling the shares and stocks of the companies  to beprivatized. 
69. Encouraging private companies to participate in  the exercise. 
70. Negotiating with individuals who want to buy  public companies. 
    
71. integrity B. independence D. Advertising for government. C. landmass D. population.
    
72. In international trade, documentary credit is also known as A. credit note B. letters ofcredit 
73. bankers’ drafts D. letter of hypothecation. 
74. A specialized institution in Nigeria that deals”in capital  investments in the form of stocks, shares, bonds and  debentures is the 
75. Securities and ExchangeCommission 
76. commoditymarket 
77. Nigerian StockExchange 
78. CentralBank ofNigeria. 
79. A group of assets which a business acquires with the  intention of reselling them are referred to as 
80. current assets B. investment assets 
81. fixed assets D. intangible assets. 
82. Authorized share capital is also known as A. called-up share capital B. paid-up sharecapital C. registered share capital D. issued share capital. 
83. An action taken by a company outside its object clause  is regarded as 
84. ultra vires B. a trespass 
85. uberrima fides D. caveat emptor. 
86. The strategy adopted by a flrIn that ceases to operate  at one or more locations because of inactivity is A. rejuvenation B. focus 
87. diversification D. consolidation. 
88. A written partnership contract is knownas A. an invoice B. a deed 
89. a prospectus D. a proposal. 
90. The merger of a textile mill, a cement company and a  tannery is referred to as 
91. 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 

34. As the branches indicate, iv is 
35. facilitating exhnages among individuals and  firms 
36. assistaing trade through banking and  

insurance 

1. enhancing business relationships 
2. The acronym PLC is used to identify a 
3. comapnylimited by shares 
4. private company limited byshares 
5. public companylimited by shares 
6. company limited by guarantee 
7. Commerce includes all the occupations concerned with A. sales B. production 
8. marketing D. distribution 
9. Factors of production can be described as the A. resources required for the provision of goods  and services 
10. skillsinvolved in deciding and directing the flow  of goods 
11. monetary tools employed by government to  ensure stable production 
12. elements involved in the process offormulating  policies on production 
13. Flucntuations in the supply of goods may be eliminated  if the distribution system maintains 
14. modern technology B. a team ofretailers C. warehouse services D. sufficient midlemen 
15. Loan schemes by thrift ocieties are 
16. mortage schemes B. conventionalschemes C. mutual schemes D. unconventionalschemes 
17. An internal demand for goods to be purchased or  drawn from stockis 
18. a quotation B. a requisition C. a tender D. an order 
19. The term 4 net 7 on an invoice meansthat A. 4% surcharge will be made unless payment is  made within seven days 
20. 4% discount will be allowed on the price charged  only if the goods are bought within seven days 
21. 4% discount will be allowed on the price charged  if payment is made after seven days 
22. 4% discount will be allowed on the price charge  if payment is made withinseven days. 
23. An order sent by an importer to an overseas supplier  stating the details of goods reqired is known as 
    
24. commerce B. exchange A. export invoice B. ship’s manifest C. finance D. construction C. an indent D. bill of lading 
    
25. What does v represent? 
26. Aids to trade B. Advertising C. Manufacturing D. Industry 
27. The most important of computer is A. helping people to improve thier profits 
28. Organising trade fairs in Nigeria isthe responsibility of A. National Directorate ofEmployment 
29. Federal Ministry ofCommerce 
30. Trade Association 
31. Chamnbers ofCommerce
32. International trade takes place as a result of A. niformity in costs ofproduction 
33. inequitable distcribution of natural resources C. parity in the level ofindustrialization 
34. similarities in climaticconditions 
35. The use of vending machinesin retailing is hindered in  a developing economy owing to 
36. industrial policy and harmony 
37. low level of education 
38. ineffective communication system 
39. lack of steady power supply 
40. Manufcturers’ Association of Nigeria contributes to  development by advising the government on 
41. industrial policy and harmony 
42. budget and budgetary control 
43. budget and industrial policy 
44. environmental protection policy 
45. Discounts offered by firmsto midlemen for bulk  purchases are 
46. trade discounts B. sales bonanza C. cash discounts D. seasonal discounts 
47. Goods are of merchantable quality if they A. conform to description 
48. are of equalweight 
49. are of the samequality 
50. conform to buyers’ purpose