JAMB UTME - Commerce - 1999
Question 1 Report
An abridged version of a company's income statement for 11993 contains the following information:
Turnover N286.5
Cost of goods sold N147.5
Overhead and other expenses N85.5
Taxes due for the year N26.9
What was the company's profit before tax for 1993?
Answer Details
To calculate the company's profit before tax for 1993, we need to subtract the cost of goods sold and overhead and other expenses from the turnover. Turnover - (Cost of goods sold + Overhead and other expenses) = Profit before tax Substituting the values from the question: N286.5 - (N147.5 + N85.5) = N53.5 million Therefore, the company's profit before tax for 1993 was N53.5 million.
Question 2 Report
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
Answer Details
The restriction on Kamaldeen's right to recover the hire-purchased goods implies that he cannot take back the goods from Emeka, even if Emeka has defaulted in payment. This restriction is an instance of a limitation on Kamaldeen's right to terminate the agreement. In a hire-purchase agreement, until the hirer has paid the full price of the goods, the ownership remains with the owner, and the hirer has only a right to use the goods. Therefore, Kamaldeen cannot recover the goods unless Emeka has paid the full price, as the goods are still his property. This restriction is in place to protect the rights of the hirer, who may have paid a substantial amount towards the purchase of the goods, and also to prevent unscrupulous owners from repossessing goods at will.
Question 3 Report
A company which issues a promissory note in lieu of payment for goods purchased
Answer Details
A company which issues a promissory note in lieu of payment for goods purchased is bound to redeem the note for cash on due date. A promissory note is a written promise by one party to pay a sum of money to another party on demand or at a specified future date. When a company issues a promissory note as a means of payment for goods purchased, it is essentially promising to pay the amount owed by the due date. Therefore, the company is obligated to redeem the note and pay the amount owed in cash on the due date specified on the promissory note.
Question 4 Report
Kabir receives two quotations. Ade quotes N 100 less 20% trade discount and 20% cash discount while Benson N100 less 30%trade discount and 10% cash discount. If Kabir wants to take advantage and cash discount, then
Answer Details
To take advantage of the cash discount, Kabir should choose the supplier who offers a higher cash discount. In this case, Ade offers a 20% cash discount while Benson offers a 10% cash discount. Therefore, Kabir should choose Ade as the supplier.
Question 5 Report
The principle of subrogation states that
Answer Details
The principle of subrogation in insurance means that an insurance company has the right to take over the rights and claims of the insured person after paying the claim. This means that the insurance company can stand in place of the insured person to deal with the third party, who may have caused the loss or damage, in order to recover the amount paid as claim. In other words, the insurance company can sue the third party for the amount of the claim paid to the insured person. This principle helps the insurance company to reduce their losses and also ensures that the insured person is not paid more than the actual loss suffered.
Question 6 Report
Q,act as an agent of P, lawfully and reasonably incur the amount of N350 as expenses.If Q comes to P, for payment , this is an instance of P'S duty to
Answer Details
In this scenario, Q has acted as an agent for P and has incurred expenses of N350 that are lawful and reasonable. If Q comes to P for payment, it becomes P's duty to indemnify Q. This means that P is obligated to compensate Q for any losses, damages or expenses that were incurred while acting on P's behalf. Therefore, in this scenario, P must compensate or reimburse Q for the expenses incurred.
Question 7 Report
Use the information below to answer questions 3 and 4.
Aboki Plc, became the insolvent and decided to wind up to meet the legitimate claims of its creditors.
Babalawee was called in to manage the dissolution.
After paying the debts of aboki Plc, the balance goes to?
Answer Details
After paying the debts of Aboki Plc, the balance goes to the shareholders. This is because shareholders are the owners of the company, and they have a residual claim on the company's assets after all debts and other obligations have been settled. Babalawee, as the manager of the dissolution process, is responsible for ensuring that the company's assets are liquidated and the proceeds are used to settle the claims of creditors. Once this has been done, any remaining balance will be distributed among the shareholders according to their shareholding in the company.
Question 8 Report
The forum for the selling and of buying of securities of small and medium companies is called
Answer Details
Question 9 Report
Which of the following is not a veritable source of funds to a public limited company?
Answer Details
The option that is not a veritable source of funds to a public limited company is "government financial grant". Government financial grant is a non-repayable fund given to support specific activities or projects of a company, but it is not a reliable or sustainable source of funds for a public limited company. The other options listed: advances and loan from banks, internally generated funds, and funds from the sale of shares are more reliable and sustainable sources of funds for a public limited company. Advances and loans from banks are usually obtained with an agreement to repay with interest. Internally generated funds come from the company's operations and profits, and funds from the sale of shares come from selling ownership shares to investors.
Question 10 Report
Modern business philosophy emphasizes
Answer Details
Modern business philosophy emphasizes customer satisfaction. This means that businesses focus on creating products and services that meet the needs and wants of their customers. By doing so, they can build loyal customers who are more likely to continue buying from them and recommend them to others. Customer satisfaction can lead to increased sales and revenue for the business, as well as a positive reputation and brand image. Ultimately, the goal of modern businesses is to create long-term relationships with their customers by prioritizing their needs and providing them with high-quality products and services.
Question 11 Report
The organizational structure above represents
Answer Details
The organizational structure above represents a "line and staff structure". In this type of structure, there is a clear distinction between the line managers who are responsible for the core business functions, and the staff managers who provide support and advice to the line managers. The line managers have the authority to make decisions and direct the activities of their subordinates, while the staff managers have the expertise and knowledge to assist the line managers in achieving their goals. The staff managers do not have direct authority over the line employees, but they play an important role in ensuring that the organization functions effectively and efficiently.
Question 12 Report
Use the document below to answer the question.
Okon Etim Esin is the
Answer Details
Question 13 Report
The rate at which a central bank discount first class bills is called the
Answer Details
The rate at which a central bank discounts first class bills is called the bank rate. The bank rate is the interest rate at which a central bank lends money to commercial banks within the country. It is often considered a benchmark rate as it influences other interest rates in the economy. The bank rate is an important monetary policy tool used by central banks to regulate the money supply in the economy.
Question 14 Report
In every simple contract, the price which is paid to purchase a promise is called
Answer Details
In every simple contract, the price which is paid to purchase a promise is called consideration. Consideration is a legal term used to describe something of value (often money) that is given in exchange for a promise or performance. It is an essential element of a contract because it represents the bargained-for exchange between the parties. In other words, it is the benefit that each party receives or expects to receive from the contract.
Question 15 Report
Commerce makes it possible for man to live in a
Question 16 Report
The line function in a typical manufacturing enterprise is normally performed by the
Answer Details
The line function in a typical manufacturing enterprise is normally performed by the marketing department. The marketing department is responsible for promoting and selling the products of the company. They conduct market research to identify customer needs, create marketing strategies to reach the target market, and develop advertising campaigns to promote the company's products. The marketing department plays a critical role in generating revenue for the company and ensuring that the products are in demand in the market.
Question 17 Report
Which of the following group of countries are members of the Niger Basin Commission?
Answer Details
The correct answer is "The republic of Guinea, Burkina Faso and Nigeria." The Niger Basin Commission is an intergovernmental organization that was created to promote cooperation among member countries in the management of shared water resources in the Niger River Basin. The member countries of the commission include countries that share the Niger River Basin. Therefore, the correct option is the one that lists countries that share the Niger River Basin and are members of the commission. Among the options provided, only the Republic of Guinea, Burkina Faso, and Nigeria are countries that share the Niger River Basin and are members of the Niger Basin Commission.
Question 18 Report
The primary motive behind an individual engaging in production is to?
Question 19 Report
The document that indicate instant payment of cash for goods whenever the are delivered is
Answer Details
Question 20 Report
A company has an authorized capital of 40 million shares at N1 per share, out of which 32 million shares have been issued and fully paid-up. The remaining 8 million shares have
Answer Details
The remaining 8 million shares have not yet been issued. This means that they have not been made available for sale to potential buyers, and therefore, no money has been raised from the sale of these shares. The company still has the option to issue these shares in the future, either to raise more capital or to use them as part of employee compensation packages or for other purposes. However, until these shares are officially issued and sold, they do not have any value or ownership rights attached to them.
Question 21 Report
Musa obtains wool from his sheep, spins and transforms it into cloth which he sells to consumers. This is a form of
Answer Details
Musa's business model involves taking raw materials, such as wool from his sheep, and processing them into a finished product, such as cloth, which he then sells to consumers. This type of business model is known as vertical integration, which involves controlling different stages of the supply chain, from raw materials to finished goods. In this case, Musa is integrating backward, as he is bringing production of raw materials in-house by raising his own sheep and obtaining wool from them.
Question 22 Report
The term ‘5 Net 7’ on an invoice means that?
Answer Details
The term '5 Net 7' on an invoice means that a 5% discount will be allowed on the price charged if payment is made within seven days. This is a common payment term used in business transactions. The number before the word 'Net' refers to the percentage of discount while the number after the word 'Net' indicates the number of days within which payment should be made to qualify for the discount. So, in this case, the buyer will receive a 5% discount if payment is made within 7 days from the invoice date.
Question 23 Report
The overriding advantage of home trade over foreign trade is
Answer Details
The overriding advantage of home trade over foreign trade is the accessibility of the seller to the buyer. This means that both the seller and buyer are located within the same country, thus making it easier for them to communicate and conduct business transactions. This proximity also makes it possible for them to quickly resolve issues that may arise during the course of the transaction. In contrast, foreign trade involves buying and selling goods and services between countries, which can be more complicated due to differences in language, currency, culture, laws, and regulations. This can lead to the need for more documentation, longer transaction times, and increased costs.
Question 24 Report
(i)Money and machines (ii) Materials and Money (iii)Market and Man.
Which combination of the above are basic requirement as business resource?
Question 25 Report
The main role of advertising is to
Answer Details
The main role of advertising is to convince prospective buyers to buy a product or service. Advertising aims to persuade potential customers to choose a particular product over others by highlighting its benefits and unique features. It is intended to create awareness, generate interest, and ultimately drive sales. Advertising may also inform people about where to obtain goods and services, but its primary objective is to persuade people to make a purchase. Additionally, advertising may capture the attention of people through creative and engaging advertisements, but this is usually done in service of convincing them to buy the product being advertised.
Question 26 Report
A distinction between Comprehensive insurance and Thrid party Insurance is that the latter covers damages
Answer Details
Comprehensive insurance and Third-party insurance are two types of insurance policies for vehicles. Comprehensive insurance provides coverage for both the insured vehicle and the third party involved in an accident, while Third-party insurance provides coverage only for damages caused by the insured vehicle to the third party involved in an accident. Therefore, the distinction between Comprehensive insurance and Third-party insurance is that Third-party insurance covers damages caused by the insured vehicle to the third party involved in the accident, whereas Comprehensive insurance covers damages to both the insured vehicle and the third party involved in the accident.
Question 27 Report
One major disadvantage of a cartel is that it
Answer Details
A cartel is a group of firms that agree to coordinate their actions in order to maximize their joint profits. One major disadvantage of a cartel is that it eliminates competition among its members. This leads to a reduction in the incentives for the member firms to improve their productive efficiency and innovate. In addition, the cartel may engage in rent-seeking behavior, such as lobbying for government protection, which can lead to inefficiencies and waste. Therefore, the main disadvantage of a cartel is that it reduces competition and innovation, which can lead to negative outcomes for consumers and the economy as a whole.
Question 29 Report
Which of the following document permit an importer to inspect his goods before the arrival of the bill of lading?
Answer Details
Question 30 Report
Aliyu bought 100 shares at the stock market through a stockbroker. He was told the price each share was N3 cum. div. This means that Aliyu
Answer Details
"Cum. Div." is an abbreviation used in the stock market to indicate that the buyer of the shares will be entitled to receive any dividends declared and paid for that financial year. In this case, Aliyu bought 100 shares at the stock market for N3 per share cum. div., meaning that he purchased the shares with the right to receive any dividends declared and paid for that financial year. Therefore, the correct option is: Aliyu is entitled to the next dividends due to the shares.
Question 31 Report
The three major function unit which the modern computer has are
Answer Details
The three major functional units of a modern computer are the input unit, the processor unit, and the output unit. - Input Unit: The input unit is responsible for receiving data and instructions from external sources such as the keyboard, mouse, scanner, and microphone. - Processor Unit: The processor unit (also called the central processing unit or CPU) is the brain of the computer. It is responsible for processing data and instructions, performing arithmetic and logical operations, and making decisions. - Output Unit: The output unit is responsible for presenting information to the user or sending it to external devices such as the monitor, printer, or speakers.
Question 32 Report
The elimination of fault in a computer programme is called?
Answer Details
The elimination of faults or errors in a computer programme is called debugging. This process involves identifying and correcting any errors, glitches or bugs that may prevent the program from running smoothly or producing the desired results. The goal of debugging is to ensure that the program operates correctly and efficiently, and to minimize any negative impact on system performance.
Question 33 Report
A common requirement for public and private limited companies in Nigeria is that
Answer Details
The common requirement for public and private limited companies in Nigeria is that their annual accounts are made available to the Corporate Affairs Commission (CAC). This means that the companies are required to submit their financial statements to the CAC for regulatory and legal purposes. The financial statements must provide a comprehensive report on the financial performance of the company, including its income, expenses, assets, and liabilities, among others. This requirement ensures transparency and accountability in the operations of the companies, and helps to protect the interests of stakeholders, including shareholders, creditors, and the public.
Question 34 Report
The process of bringing a company under exclusive state ownership and control is know as
Answer Details
Nationalization is the process of bringing a company or industry under exclusive state ownership and control. This means that the government takes ownership of the company or industry, and it is run by government officials instead of private individuals or organizations. Nationalization can occur for a variety of reasons, such as to increase government revenue, to provide essential services to the public, or to protect national interests.
Question 35 Report
A business whose owners enjoys loan facilities on the basis of personal goodwill is a?
Answer Details
Question 36 Report
Use this information to answer the question below.
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.
Babalawee is ___________?
Answer Details
Question 37 Report
The main document sent to an importer of goods by the exporter are?
Answer Details
The main document sent to an importer of goods by the exporter include: - Invoice: This document shows the details of the goods being shipped, such as quantity, unit price, total value, payment terms, etc. - Bill of Lading: This is a document issued by the carrier or its agent acknowledging the receipt of goods for shipment. It serves as a contract of carriage, a receipt of goods, and a document of title. - Certificate of Origin: This document indicates the country in which the goods were produced or manufactured. It may be required for customs clearance, quota control, or other trade purposes. - Insurance Policy: This document provides coverage for loss or damage to the goods during transit. - Bill of Exchange: This is a document that orders the importer to pay the exporter a certain amount of money at a certain time. Therefore, the correct option is "bill of lading, invoice, insurance policy, consular invoice, certificate of origin, and bill of exchange."
Question 38 Report
The conversion of raw material into finished products creates
Answer Details
The conversion of raw material into finished products creates form utility. Form utility is the process of adding value to a product by changing its form or shape to make it more useful to consumers. In other words, form utility is the creation of a finished product from raw materials or components that have no use or value until they are transformed. This process involves design, manufacturing, and assembly, and is intended to create a product that is more valuable and useful to customers than the individual components used to create it.
Question 39 Report
The main thrust of government policy of evolving good business environment in Nigeria is the need
Answer Details
The main thrust of the Nigerian government's policy to create a good business environment is to attract both local and foreign investors. This is because investors play a crucial role in boosting the economy and creating employment opportunities. By providing a good business environment, the government hopes to encourage investors to invest in Nigeria, which will in turn contribute to economic growth and development. Additionally, with more investment comes the potential for more export commodities, viable local markets, and consumer-oriented products.
Question 40 Report
Adigun displays goods of different makes on shelves in his supermarket. This is an example of
Answer Details
Adigun displaying goods of different makes on shelves in his supermarket is an example of an invitation to treat. An invitation to treat is a preliminary step in a contract negotiation where one party invites the other party to make an offer. In this case, Adigun is not making an offer to sell the goods, but rather inviting customers to consider buying the goods by displaying them in the supermarket. The customer is free to choose whether or not to make an offer to buy the goods at a certain price.
Question 41 Report
In a hire purchase agreement between Argungu Ltd and Maikudi, Argungu Ltd inserted provision that it can enter Maikudi’s premises at any time and remove the hired vehicle for any breach. This provision is
Question 43 Report
The proposed monetary integration within ECOWAS sub-region has the overriding benefit of a
Answer Details
The proposed monetary integration within ECOWAS sub-region has the overriding benefit of enhanced trade. Monetary integration involves the adoption of a common currency among countries in a region. This would remove exchange rate uncertainties and reduce transaction costs, making it easier and cheaper for businesses to trade within the region. This, in turn, would lead to increased trade, investment, and economic growth within the region. Therefore, the proposed monetary integration within the ECOWAS sub-region would lead to an improvement in trade between member countries, and ultimately contribute to the development of the sub-region.
Question 44 Report
A wholesaler dealer in securities is known as a
Answer Details
A wholesaler dealer in securities is known as a jobber. A jobber is a middleman who buys securities in large quantities from the issuing company or stock exchange, and then sells them to stockbrokers, other traders or individuals in smaller quantities. They typically deal in large blocks of securities and make their profit by buying at a lower price and selling at a higher price. Unlike a stockbroker who acts as an agent on behalf of their clients, a jobber is a principal in the transaction and takes the risk of holding the securities until they can be sold.
Question 45 Report
Which of these sets of external environmental factors affects a business operation?
Answer Details
External environmental factors can have a significant impact on the success or failure of a business operation. The set of external environmental factors that affects a business operation are Economic, social and legal factors. Economic factors such as inflation, interest rates, and exchange rates can affect the cost of goods, customer spending power, and overall economic growth. Social factors like demographics, consumer preferences, and cultural trends can influence the demand for products and services. Legal factors such as regulations, taxes, and government policies can affect the operations and profitability of businesses. All of these factors need to be considered and managed effectively by a business to ensure its success.
Question 46 Report
The focal point of the marketing efforts is the`
Answer Details
The focal point of the marketing efforts is the buyer. This means that the marketing efforts are centered around understanding the needs and wants of the buyer, creating products or services that meet those needs, and promoting them effectively to the target market. The goal is to build a strong relationship with the buyer, which will lead to increased sales, brand loyalty, and ultimately, greater profits for the seller.
Question 47 Report
Under what management function would the motivation employees fall?
Answer Details
Question 48 Report
Tolu purchase goods from Yemisi and is to pay custom duties before collection. The goods are likely to be collected from.
Answer Details
If Tolu has to pay customs duties before collecting the goods, it means that the goods have been imported into the country and have not yet been cleared by the customs authorities. Therefore, the goods are likely to be stored in a bonded warehouse. A bonded warehouse is a secure warehouse approved by customs authorities for storage of imported goods until the necessary customs duties and taxes have been paid, and the goods have been cleared for delivery to the importer or his agent.
Question 49 Report
The concept of limiting types, sizes and other characteristics of a product line without sacrificing utility or durability is called
Answer Details
The concept being described is called standardization. Standardization involves setting a limit on the number of types, sizes, and other features of a product line in order to streamline production and reduce costs without sacrificing the usefulness or durability of the product. This allows for more efficient manufacturing, as well as making it easier for customers to understand and compare products within the line.
Question 50 Report
The right of the public to protection against questionable products and marketing practices is
Answer Details
