NECO SSCE - Commerce - 2001 (Objective)

Question 1 Report

Under what form of life insurance policy is premium paid over an agreed number of years and the sum assured is paid either at the end of that specified time or when the policy holder dies, whichever comes first?

annuity

deterred annuity

endowment Correct answer

term

whole life

Answer Details

Read lesson note on Commerce (JAMB)

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Commerce

Trade

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Question 2 Report

Production means

changing the form of a good at any stage from the raw material to the finished products

increasing economic welfare of people by producing more goods and services

moving goods from one place to another for proper use

the amount of satisfaction derived from the consumption of goods and services

the provision of goods and services which are capable of satisfying human wants Correct answer

Answer Details

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Production

Occupation

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Question 3 Report

What is NOT a right of the consumer?

a healthy environment

be heard

to be informed

get value for money spent

save money on food and drugs Correct answer

Answer Details

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Commerce (JAMB)

Read lesson note on Occupation (JAMB)

Purchase And Sale Of Goods

Commerce

Occupation

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Question 4 Report

What is NOT a suitable reason for the growth in large retail business?

distribution of wealth through expansion of retail outlets because there is great profit

improved transportation system which makes people able to move about easily to buy goods

low cost per unit of goods resulting from economics of large scale

people’s willingness to migrate from rural areas to towns for white collar jobs Correct answer

rise in standards of living of people resulting from improved wages/salaries

Answer Details

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Commerce (JAMB)

Purchase And Sale Of Goods

Commerce

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Question 5 Report

What is NOT an advantage of direct distribution of goods to the consumer by the manufacturer?

closer contact market trends, etc.

decrease in bad debts

greater intensiveness of the sales campaign Correct answer

no trading discounts need be allowed

sales are more accurately and efficiently made to the consumer

Answer Details

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Question 6 Report

What is a statement of account? It is a/an

note to inform the customer of an addition to his business transaction

original letter sent to customer asking them to settle their bills

statement of acceptance of credit facilities to a customer

summary of customer’s transactions for a given period Correct answer

summation of goods sold to a customer for a particular item

Answer Details

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Question 7 Report

Which term means that for the price quoted, transporting the goods is ‘free’ up to the time it is placed on board a carrier?

carriage paid (Cge. Pd.)

cost on delivery (C.O.D.)

ex-ship

free on board (F.O.B.) Correct answer

free on rail (F.O.R.)

Answer Details

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Trade

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Question 8 Report

Which is NOT a public corporation?

National Electric Power Authority

National Examinations Council Correct answer

Nigerian Airways

Nigerian Railway

Ports Authority

Answer Details

Read lesson note on Advertising (WAEC)

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Read lesson note on Occupation (WAEC)

Advertising

Production

Occupation

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Question 9 Report

A syndicate is an/a

association formed by the joining together of firms which were previously independent

association of firms at the same stage of production, formed for the purpose of keeping up prices Correct answer

association of firms for the regulation of output and prices

combination of firm which carry on the same kind of business such as retailing

company that controls one or more other companies by holding majority of their shares

Answer Details

Read lesson note on Commerce (JAMB)

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Commerce

Production

Occupation

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Question 10 Report

What is the disadvantage of foreign trade?

encourages dumping Correct answer

encourages specialization

facilitate transfer of technology

makes available products that can not be produced by a country

widens the world market

Answer Details

Read lesson note on Trade (WAEC)

Read lesson note on Production (JAMB)

Trade

Production

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Question 11 Report

What is NOT an advantage of indigenization?

lt enhances the development of private initiative

lt ensures that important social services are provided at affordable cost Correct answer

lt ensures that Nigerians control and run the business enter-prize of their country

It fosters and accelerates the pace of industrial development

There is a saving in foreign exchange

Answer Details

Read lesson note on Commerce (JAMB)

Read lesson note on Production (JAMB)

Read lesson note on Occupation (JAMB)

Commerce

Production

Occupation

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Question 12 Report

What is NOT a lecture of a co-operative society?

banks easily lend money to them

it is a corporate body with a right to sue and be sued Correct answer

members have to buy shares to form the initial capital

members have equal opportunity in the control of the society

there is no liability after shareholding is fully paid

Answer Details

Read lesson note on Commerce (JAMB)

Read lesson note on Occupation (WAEC)

Commerce

Occupation

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Question 13 Report

What is NOT the function of an entrepreneur?

bearing risks

deciding on tax to pay Correct answer

deciding what to produce

organizing other factors

providing initial capital

Answer Details

Read lesson note on Legal Aspects Of Business (JAMB)

Read lesson note on Financing Business (JAMB)

Read lesson note on Production (WAEC)

Read lesson note on Occupation (WAEC)

Legal Aspects Of Business

Financing Business

Production

Occupation

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Question 14 Report

In which service will a sole trader NOT be found?

business consultant

electrician

decorator

National Electric Power Authority Correct answer

surveyor

Answer Details

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Question 15 Report

What is the rate of turnover of Amura Ajita’s business?

5 Correct answer

5.3

5.4

5.7

Answer Details

Read lesson note on Commerce (JAMB)

Commerce

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Question 16 Report

National income is

excess on balance of payment

excess on balance of trade

income gotten from international trade

money value of goods and services produced in a given period Correct answer

revenue available to the government

Answer Details

Read lesson note on Government Policies Relating To Business (WAEC)

Read lesson note on Business Environment And Social Responsibility (JAMB)

Read lesson note on Commerce (JAMB)

Government Policies Relating To Business

Business Environment And Social Responsibility

Commerce

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Question 17 Report

What is NOT a principle of an insurance contract?

contribution

indemnity

insurable interest

premium Correct answer

subrogation

Answer Details

Read lesson note on Legal Aspect Of Business (WAEC)

Legal Aspect Of Business

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Question 18 Report

What is NOT a source of capital for a business?

borrowing from somewhere

issuing of dividend warrant Correct answer

retained profit

issuing of shares

personal savings

Answer Details

Read lesson note on Financing Business (JAMB)

Read lesson note on Business Capital And Profits (WAEC)

Financing Business

Business Capital And Profits

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Question 19 Report

The term ‘caveat emptor’ means ‘let the

account be settled’

buyer beware’ Correct answer

debtor be careful’

manufacturer beware'

seller beware'

Answer Details

Read lesson note on Purchase And Sale Of Goods (JAMB)

Purchase And Sale Of Goods

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Question 20 Report

In the stock exchange what is the day when the parties to a transaction decide whether the bargain should be completed held over until the next settlement?

account Correct answer

contango

making- up

name

ticket

Answer Details

Read lesson note on Stock Exchange (JAMB)

Stock Exchange

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Question 21 Report

lf the price of a good falls and the demand for that good also fall, then that good is .......

a normal good

an inferior good

a supper good

an expensive good

none Correct answer

Answer Details

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Commerce (JAMB)

Purchase And Sale Of Goods

Commerce

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Question 22 Report

The bringing of ownership and management of a former private industry under the control of the government is called

corporation

industrialization

nationalization Correct answer

participation

privatization

Answer Details

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Question 23 Report

What is NOT a characteristic of a Private Limited Liability Company?

a shareholder is not free to transfer his shares to someone without the permission of others

its shares cannot be offered to the public through the stock market

the liability of shareholders is not limited to the amount of shams taken up

the minimum and maximum number of shareholders is seven and infinity respectively Correct answer

the minimum and maximum number of shareholders is two and fifty respectively

Answer Details

Read lesson note on Legal Aspects Of Business (JAMB)

Legal Aspects Of Business

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Question 24 Report

Dealing on the Stock Exchange may be either

‘for cash or ‘for hire’

‘for jobber’ or 'for broker’

'for cash' or 'for account

‘for cash’ or‘ for credit’ Correct answer

‘for bull’ or ‘ for bear’

Answer Details

Read lesson note on Stock Exchange (JAMB)

Stock Exchange

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Question 25 Report

The feature of a supermarket is

having central control from head-office

sales common household goods Correct answer

sales of goods without owning shops

similarity in shops’ frontages

that there are many shops under a roof

Answer Details

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Commerce (JAMB)

Read lesson note on Aids-to-Trade (JAMB)

Purchase And Sale Of Goods

Commerce

Aids-to-Trade

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Question 26 Report

A voluntary body formed by members of a particular branch of trade or industry to represent the interests of members is known as

co-operative society

industrial association

manufacturers’ association

trade and industry practitioners

trade association Correct answer

Answer Details

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Question 27 Report

ln stock exchange, the buyer is NOT entitled to the dividend when the stock is quoted

clean

cum-dividend

double barrelled

ex-dividend Correct answer

firm

Answer Details

Read lesson note on Stock Exchange (JAMB)

Stock Exchange

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Question 28 Report

Which union is formed by the workers of firms of similar line of business to cater for their interests?

co-operative

employees

firms

trade Correct answer

welfare

Answer Details

Read lesson note on Trade (WAEC)

Read lesson note on Commerce (JAMB)

Read lesson note on Occupation (WAEC)

Trade

Commerce

Occupation

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Question 29 Report

.
C.
ln which business is profit shared amongst the shareholders on the basis of patronage?

co-operative society Correct answer

joint stock company

partnership

public company

sole proprietorship

Answer Details

Read lesson note on Business Capital And Profits (WAEC)

Read lesson note on Occupation (JAMB)

Business Capital And Profits

Occupation

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Question 30 Report

The Articles of Association of a company do NOT contain

a method of dealing with any alterations in the amount of capital Correct answer

a method of sharing profits and the payment of dividends

a procedure for calling general meeting/method of voting

the amount of the authorized capital, showing its division into shares

the issue, transfer and forfeiture of shares

Answer Details

Read lesson note on Legal Aspects Of Business (JAMB)

Read lesson note on Legal Aspect Of Business (WAEC)

Legal Aspects Of Business

Legal Aspect Of Business

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Question 31 Report

What is the OBJECT of a co-operative society?

diversify the members’ produce tor international purpose

gain freedom in marketing the members’ produce

indulge in large scale production and earn huge profits

popularize government policies among the members

provide an agency for meeting the economic needs of members Correct answer

Answer Details

Read lesson note on Commerce (JAMB)

Read lesson note on Occupation (WAEC)

Commerce

Occupation

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Question 32 Report

What is NOT a function of the chambers of commerce? They

arbitrate and settle disputes among members

collect and pass important information to all members and the general public

consult and co-operate with government on matters of trade and industry

make members aware of government policies concerning customs and regulations Correct answer

serve as media for the expression of the opinions of employers on matters relating to employment

Answer Details

Read lesson note on Trade (WAEC)

Read lesson note on Commerce (JAMB)

Read lesson note on Production (JAMB)

Read lesson note on Occupation (JAMB)

Trade

Commerce

Production

Occupation

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Question 33 Report

ln partnership business, the maximum number of persons for its formation is

five

fifteen

ten

twenty Correct answer

twenty five

Answer Details

Read lesson note on Occupation (JAMB)

Occupation

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Question 34 Report

What is an aim of a trade association?

protection of members’ interests Correct answer

watching government legislation which may affect members interests

encouraging the introduction of standard grades and sizes of goods

making arrangements for the settlement of disputes

exchanging information and creating uniformity in methods of dealing

Answer Details

Read lesson note on Trade Associations (WAEC)

Read lesson note on Commerce (JAMB)

Trade Associations

Commerce

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Question 35 Report

What is NOT an advantage of combinations (monopolies)?

bender opportunity to expand operations

fall in the cost of selling Correct answer

pool of specialized managerial skills

centralized management

danger of over-capitalization

Answer Details

Read lesson note on Production (JAMB)

Read lesson note on Occupation (JAMB)

Production

Occupation

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Question 36 Report

The reward of capital as a factor of production is

dividend

interest Correct answer

profit

rent

wages

Answer Details

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Question 37 Report

The word ‘Commerce’ means

buying and selling of goods and services

exchange and distribution of goods and services Correct answer

life-blood of every nation

production of utilities

trade and all the services which assist trade

Answer Details

Read lesson note on Commerce (JAMB)

Commerce

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Question 38 Report

What is NOT a concern of the Food and Drug Department of the Federal Ministry of Health?

co-operating with the appropriate agencies to bring about effective price control Correct answer

educating the consumers on drug abuse

encouraging consumers to eat a more sensible and balanced diet and avoid fatty foods

requiring drug manufacturers to provide printed prescription for certain drugs

requiring drug manufacturers to test the safety and effectiveness of drugs before marketing

Answer Details

Read lesson note on Legal Aspects Of Business (JAMB)

Legal Aspects Of Business

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Question 39 Report

The affairs of the co-operative society are in the hands of the

Board of directors

Board of trustees

Executive members Correct answer

Registrar of Co-operatives

Shareholders

Answer Details

Read lesson note on Occupation (JAMB)

Occupation

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Question 40 Report

What is NOT a function of a retailer?

granting credit to consumers

guiding the consumers in making their choices

insuring goods for consumers Correct answer

paying personal attention to consumers

providing goods wanted by the consumers

Answer Details

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Question 41 Report

What is NOT an instrument of credit?

bills of exchange

cheque

money order

postal order

source document Correct answer

Answer Details

Read lesson note on Money (JAMB)

Money

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Question 42 Report

.......... is NOT a principle of insurance

utmost good faith

particular average Correct answer

indemnity

subrogation

insurable interest

Answer Details

Read lesson note on Legal Aspect Of Business (WAEC)

Legal Aspect Of Business

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Question 43 Report

What is NOT a supplementary service of banks?

agents for payment Correct answer

custody of valuables

dealing in foreign exchange

investments

referees

Answer Details

Read lesson note on Financing Business (JAMB)

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Commerce (JAMB)

Read lesson note on Trade (JAMB)

Read lesson note on Stock Exchange (JAMB)

Financing Business

Purchase And Sale Of Goods

Commerce

Trade

Stock Exchange

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Question 44 Report

What best explains the principle of subrogation in insurable?

Both parties of the insurance contract must deal openly and honestly with each other and disclose all relevant facts

The right that a person has to stand in the place of another and enjoy all the rights and remedies of that other person Correct answer

There must be a close connection between the risk insured against and the cause of the loss

The insurer who insures the same risk with more than one insurer can only recover to the extent of the loss and nothing more, in the occurrence of the event

The insured discloses all the material facts which would affect the premium which the insurer charges

Answer Details

Read lesson note on Legal Aspect Of Business (WAEC)

Legal Aspect Of Business

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Question 45 Report

Which of NOT a class of preference shares?

cumulative

debenture Correct answer

. non-cumulative

participating

redeemable

Answer Details

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Question 46 Report

What is NOT a means of Central Bank’s controlling the credit policy of commercial banks?

banker's bank

bank rate

cash /liquidity ratio

funding operations Correct answer

open market operations

Answer Details

Read lesson note on Financing Business (JAMB)

Read lesson note on Commerce (JAMB)

Read lesson note on Production (JAMB)

Read lesson note on Money (JAMB)

Financing Business

Commerce

Production

Money

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Question 47 Report

A document which makes it obligatory on the part of the seller to supply the goods or services if the inquirer accepts the conditions stated therein is called Alan

inquiry

order Correct answer

invoice

quotation

receipt

Answer Details

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Commerce (JAMB)

Purchase And Sale Of Goods

Commerce

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