JAMB UTME - Commerce - 1994
Question 2 Report
Sole enterprise may flourish best in
Answer Details
A sole enterprise is a business that is owned and operated by a single individual. It may flourish best in a retailing business because it typically involves a small-scale operation that can be easily managed by a single individual. In contrast, businesses such as mining, oil exploration, and car assembly require substantial investment, equipment, and technical expertise, which may be difficult for a sole proprietor to manage alone. A retail business, on the other hand, can be started with relatively low capital investment and can be managed effectively by a single individual with appropriate business skills. Therefore, a retail business is most suitable for a sole proprietorship.
Question 3 Report
Which of the following takes place when firms producing at different stages in the same industry combine?
Answer Details
When firms producing at different stages in the same industry combine, it is called vertical integration. This means that the companies involved in different stages of the production process, from raw materials to final product, merge together to form a single, vertically integrated company. For example, a company that produces steel might vertically integrate by acquiring a company that mines iron ore, so that they have more control over their supply chain and can potentially increase efficiency and profits.
Question 4 Report
The business in the stock exchange is characterized essentially by
Answer Details
The business in the stock exchange is characterized essentially by dealing. This refers to the buying and selling of securities, such as stocks and bonds, between buyers and sellers. The stock exchange provides a platform for these deals to take place, with brokers acting as intermediaries to facilitate the transactions. While speculation is often associated with stock trading, it is not the only or essential characteristic of the business. The fundamental activity of the stock exchange is dealing.
Question 5 Report
What are fixtures and fittings in a balance sheet?
Answer Details
Fixtures and fittings are categorized as fixed assets in a balance sheet. Fixed assets are long-term tangible assets that are not expected to be converted into cash within a year. Fixtures are items that are permanently attached to a building, such as light fixtures, plumbing, and heating systems. Fittings, on the other hand, are movable items that are attached to a building or its walls for decorative or practical purposes, such as curtains, shelves, and cabinets. These assets are recorded in the balance sheet at their original cost and are subject to depreciation over their useful life. The value of these assets is important to investors and creditors in assessing the long-term value and financial stability of a company.
Question 6 Report
Mr Amusa says to Mr Bello 'i will sell you this hat for N30'. And Mr Bello replied 'i will pay N29'. The contract is
Answer Details
The contract is an offer and acceptance. Mr Amusa made an offer to sell the hat to Mr Bello for N30, and Mr Bello responded with a counter-offer to pay N29. Although the counter-offer was not an acceptance of the original offer, it is considered a new offer. If Mr Amusa agrees to sell the hat for N29, then a contract is formed through the process of offer and acceptance.
Question 7 Report
Goods discharged from ships on which import duties have not been paid are kept in the
Answer Details
Goods discharged from ships on which import duties have not been paid are kept in bonded warehouses. These are secure facilities authorized by the government where goods that are not yet cleared by customs are stored. The goods remain in the custody of the customs department until the necessary duties are paid, and the goods are released for distribution. Bonded warehouses are used to facilitate trade by allowing the storage of imported goods without the immediate payment of duties, thus allowing for the efficient movement of goods through the supply chain.
Question 8 Report
A pro forma invoice is NOT required when
Answer Details
A pro forma invoice is a preliminary bill of sale sent to buyers before the shipment of goods or the delivery of services. It is used to declare the value of goods for customs and to facilitate payment. Based on this, a pro forma invoice is not required when dealing regularly with a customer. In such cases, the buyer and seller have already established a relationship, and the buyer is familiar with the seller's products and pricing. Therefore, a formal pro forma invoice may not be necessary for the transaction.
Question 9 Report
The use of coin-operated machines to sell goods is a form of
Answer Details
The use of coin-operated machines to sell goods is a form of retailing. This type of retailing is also known as vending machine retailing. In this process, customers insert coins or bills into a machine, select the desired product, and the machine dispenses the product automatically. This method of retailing is often used for the sale of snacks, beverages, and small items such as newspapers and cigarettes. It eliminates the need for a salesperson and allows for 24/7 availability of products.
Question 10 Report
Which of the following groups is paid first when a firm liquidates?
Answer Details
preference shareholders is a term used in venture capital contracts to specify which investors get paid first and how much they get paid in the event of a liquidation event such as the sale of the company.
Question 11 Report
Which of the following is the most important business resource?
Answer Details
All of the options listed are important business resources, but if we have to choose one that is the most important, it would be manpower. Manpower refers to the people who work for a business and utilize other resources like money, materials, and management skills to produce goods or services. Without skilled and dedicated employees, a business cannot function effectively even if it has plenty of money, materials, or management resources. Therefore, manpower is considered the most important resource for any business.
Question 12 Report
Which of the following makes other functions of business its appendages?
Answer Details
Marketing makes other functions of business its appendages. Marketing is a function of business that is concerned with promoting and selling products or services. It involves activities such as market research, advertising, and sales. Marketing helps to create demand for products and services, which in turn drives production and finance activities. Personnel management is also important for the success of marketing activities, as it involves hiring and training staff to effectively carry out marketing strategies. Thus, while all functions of business are important, marketing can be considered as the driving force behind the success of other functions.
Question 13 Report
Which of the following items has the shortest effect on the consumer
Answer Details
Question 14 Report
Which of the following statements is TRUE about sea transport?
Question 15 Report
The comprehensive import supervision scheme was set up by the federal government in order to
Answer Details
The Comprehensive Import Supervision Scheme (CISS) was set up by the Federal Government of Nigeria to ensure that imports into Nigeria are of the correct quality, value and quantity. The scheme aims to protect the health and safety of Nigerians by preventing the importation of substandard and fake goods. The CISS also helps to generate revenue for the government by ensuring that imports are correctly valued for duty purposes, thus preventing under-invoicing and evasion of customs duties. Additionally, the scheme promotes fair trade between Nigeria and other countries by preventing dumping of goods in Nigeria.
Question 16 Report
The type of activity which turns processed raw materials into consumer and industrial goods is described as
Answer Details
The type of activity which turns processed raw materials into consumer and industrial goods is known as manufacturing. Manufacturing involves the use of machinery, tools, and labor to transform raw materials into finished goods that are ready for use or sale. This process can include assembly, fabrication, processing, and packaging of products. The manufacturing sector is an essential part of the economy and contributes to economic growth by creating jobs, increasing exports, and promoting technological innovation.
Question 17 Report
Drawing two parallel lines across a cheque means that it has to be paid into the account of the
Answer Details
Drawing two parallel lines across a cheque is known as "crossing a cheque." It means that the cheque has to be paid into the account of the payee, rather than being paid in cash. Crossing a cheque provides an extra layer of security to prevent fraud and theft of the cheque. Once a cheque is crossed, it can only be deposited into the account of the payee and cannot be cashed over the counter. This ensures that the money goes directly to the intended recipient and cannot be stolen by anyone else.
Question 18 Report
The lake Chad Basin commission was founded to enable member states
Answer Details
The Lake Chad Basin Commission was founded to enable member states to co-ordinate their efforts in managing the use of the lake's resources. The lake Chad Basin Commission is an intergovernmental organization consisting of member states Chad, Cameroon, Niger, Nigeria, and the Central African Republic. The commission was established in 1964 to promote the sustainable development of the Lake Chad Basin and to ensure the fair and equitable use of its resources, including water, fisheries, and grazing lands. The commission is responsible for the management of the lake and the preservation of its ecosystems, and it works to promote regional cooperation and integration among its member states.
Question 19 Report
For establishment of a powerful consumers' association in Nigeria to exist, there must be
Answer Details
Question 22 Report
A company earned a total revenue of ₦108 million with a total cost of ₦91 million in 1991. If it paid 45% tax on its gross profit for that year, determine its net profit
Answer Details
Question 23 Report
Which of the following is both direct and indirect credit enterprise?
Answer Details
A co-operative and thrift society is both a direct and indirect credit enterprise. Explanation: A co-operative and thrift society is a type of financial institution where members pool their resources to provide credit to each other. This makes it a direct credit enterprise because members can obtain loans directly from the society. At the same time, the society can also invest the pooled resources in other ventures, which can generate income that can be used to provide additional credit to members. This makes it an indirect credit enterprise. Therefore, a co-operative and thrift society is both direct and indirect credit enterprise.
Question 24 Report
The harmonious relationship among the various units in an organization is ensured through
Answer Details
Question 25 Report
The financial institution established to boost Nigeria's trade with the rest of the world is called
Answer Details
The financial institution established to boost Nigeria's trade with the rest of the world is called the Nigerian Export-Import Bank. This bank was set up by the Nigerian government in 1991 to promote and finance exports and imports in Nigeria. Its primary objective is to improve the country's balance of trade, support the diversification of the economy, and create employment opportunities by providing financing and credit facilities to exporters and importers in the country.
Question 26 Report
The postal organization which preceded the Nigerian Postal Service is
Answer Details
The postal organization which preceded the Nigerian Postal Service is the "Post and Telegraph". This organization was responsible for providing postal and telegraph services in Nigeria before it was replaced by the Nigerian Postal Service (NIPOST) in 1985. The Post and Telegraph was established in the late 19th century during the colonial era, and it played a significant role in the communication and postal services of the country at that time.
Question 27 Report
NACCIMA stands for
Answer Details
NACCIMA stands for Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture. It is a non-profit, voluntary business organization that represents the interests of the Nigerian private sector, particularly in the areas of commerce, industry, mining, and agriculture. Its goal is to promote and protect the growth and development of Nigerian businesses and industries.
Question 28 Report
An agreement to sell is distinguishable from sale because in the former, the transfer of goods is
Answer Details
An agreement to sell is different from a sale because in the former, the transfer of goods is deferred, while in the latter, it is immediate. An agreement to sell is a contract between a buyer and a seller, which outlines the terms and conditions of the sale of goods. However, the actual transfer of ownership and possession of the goods will take place at a future date, or after certain conditions have been met, such as the payment of the purchase price. In a sale, on the other hand, the transfer of ownership and possession of the goods takes place immediately, and the buyer becomes the owner of the goods.
Question 29 Report
The difference between the total payments for imports and the receipts from exports within a given period is referred to as
Question 30 Report
A sole proprietor insured his goods worth N200,000 for half the value. There was a fire accident in which goods valued N80,000 were destroyed. The value of compensation expected from the insurer is
Answer Details
Question 31 Report
What is the major function of the wholesaler?
Answer Details
The major function of the wholesaler is to buy goods in large quantities from manufacturers or producers and sell them in smaller quantities to retailers. They act as intermediaries between manufacturers or producers and retailers, ensuring that goods are made available at the right time and in the right quantities to meet the needs of retailers. Wholesalers also provide valuable services to retailers such as storage, transportation, financing, and market information. By buying in bulk, wholesalers are able to negotiate better prices from manufacturers or producers, which helps to reduce the cost of goods for retailers and ultimately for consumers.
Question 32 Report
The element of the marketing mix are
Answer Details
The elements of the marketing mix are the four Ps: product, price, promotion, and place. 1. Product: Refers to the goods or services that a company offers to its customers. This includes the design, packaging, branding, and features of the product. 2. Price: Refers to the cost that a customer pays for a product. This includes discounts, credit terms, and other pricing strategies. 3. Promotion: Refers to the methods used to communicate with customers and create awareness of the product. This includes advertising, personal selling, public relations, and sales promotion. 4. Place: Refers to the distribution channels used to make the product available to customers. This includes the location, logistics, and channels used to deliver the product to customers.
Question 33 Report
Which of the following is a form of sales promotion
Answer Details
A form of sales promotion is offering free samples. This is a marketing technique where a company provides customers with a small quantity of their product for free, to encourage them to try it out and possibly make a purchase. It can also help to increase brand awareness and generate interest in the product.
Question 34 Report
One advantage of personal selling over all other elements of promotion is that
Answer Details
Personal selling is a marketing strategy where a salesperson interacts with a potential customer, providing them with information about a product or service, and persuading them to make a purchase. One advantage of personal selling over all other elements of promotion is that it can provide instant feedback. The salesperson can receive immediate feedback from the customer, such as objections or concerns, and address them on the spot. This helps to build a relationship between the customer and the salesperson, as well as improve the effectiveness of the sales pitch.
Question 35 Report
The rate at which a country's exports exchange for its imports is called
Answer Details
The rate at which a country's exports exchange for its imports is called the "terms of trade". In other words, it refers to the ratio between the prices of a country's exports and the prices of its imports. If a country's terms of trade improve, it means that the prices it receives for its exports have increased relative to the prices it pays for its imports, which is generally considered favorable. On the other hand, if a country's terms of trade worsen, it means that the prices it receives for its exports have decreased relative to the prices it pays for its imports, which is generally considered unfavorable.
Question 36 Report
A demonstration of social responsibility by a business is the payment of
Answer Details
A demonstration of social responsibility by a business is the payment of taxes to government. When a business pays taxes to the government, it is fulfilling its obligation as a responsible corporate citizen. The taxes paid by businesses help to fund public goods and services, such as roads, schools, hospitals, and security, which are necessary for the well-being and development of the society. By paying taxes, businesses contribute to the economic growth and stability of the country, and help to promote social welfare. Therefore, the payment of taxes is often seen as an indicator of a business's commitment to its social responsibilities.
Question 37 Report
Which of the following has power to order withdrawal of a particular food item from circulation?
Answer Details
The Food and Drug Department of the Federal Ministry of health has the power to order the withdrawal of a particular food item from circulation. This is because the Food and Drug Department is responsible for ensuring that food products in Nigeria are safe for consumption. If they discover that a particular food item is not safe for consumption, they can issue a recall order to remove it from circulation and prevent any further harm to the public. The other options listed, such as the Standard Organisation of Nigeria, Federal High courts, and local government health inspector, may have certain roles in regulating food safety but they do not have the power to order the withdrawal of a specific food item from circulation.
Question 39 Report
The use of computer in modern banking industry is a reflection of
Answer Details
The use of computers in modern banking is a reflection of technological development. Technological advancements have made it possible for banks to automate their processes and improve their efficiency. The use of computers in banking has led to the introduction of new products and services such as online banking, mobile banking, and ATM services. These services have made banking more convenient for customers and have also made it possible for banks to reach a wider customer base. In addition, the use of computers has also improved the security of banking transactions and made it easier for banks to manage their operations. Overall, the use of computers in modern banking is a reflection of the technological advancements that have revolutionized the banking industry.
Question 40 Report
A distinguishing characteristics of a limited liability company is that it
Answer Details
A distinguishing characteristic of a limited liability company (LLC) is that it can sue and be sued. An LLC is a type of business structure in which the owners, known as members, have limited liability for the company's debts and obligations. This means that the personal assets of the members are generally protected from the company's liabilities. However, the LLC itself can be sued or sue other parties, which provides a layer of protection for the members while allowing the business to operate as a legal entity.
Question 41 Report
Answer Details
Compulsory dissolution of a business can arise from a declaration by a court of law. This means that a court of law has ordered the business to be dissolved for various reasons, such as illegal activities or failure to comply with legal requirements. This is different from a voluntary dissolution, where the owners of the business agree to dissolve the business themselves. The termination of a business's life and an unfavourable economic climate can also lead to a business being dissolved, but they are not considered compulsory dissolution as they are not initiated by a legal authority.
Question 43 Report
The production process that combines two or more raw materials into one end product is
Answer Details
The production process that combines two or more raw materials into one end product is called "blending." In blending, the raw materials are mixed together in specific proportions to create a final product with desirable characteristics. Blending is commonly used in industries such as food processing, chemical manufacturing, and pharmaceuticals. For example, in food processing, ingredients such as flour, sugar, and spices are blended together to create a baking mix, while in chemical manufacturing, different chemicals are blended together to create a desired compound.
Question 44 Report
When an oil exploring and mining company builds a health center in one of the communities where it operates, such a company is
Answer Details
When an oil exploring and mining company builds a health center in one of the communities where it operates, such a company is fulfilling part of its social responsibility. Social responsibility refers to a company's obligation to act in ways that benefit society as a whole, not just its own interests. Building a health center is an example of a company contributing to the social welfare of a community where it operates. By doing so, the company is showing that it cares about the well-being of the people it is affecting through its operations.
Question 46 Report
One of the effects of the devaluation of the Naira is that the
Answer Details
When the Naira is devalued, it means that the value of the Nigerian currency has decreased relative to other currencies. This means that if you were to exchange one Naira for another currency, you would get less of that currency than you would have gotten before the devaluation. As a result, imports that can be bought with the Naira become costlier, because you need to spend more Naira to purchase the same amount of foreign goods. Therefore, the correct option is: "imports that can be bought with the naira have become costlier".
Question 47 Report
Governments impose import duties for the following reasons EXCEPT
Answer Details
Governments impose import duties for several reasons, including raising revenue for other services, acting as a retaliatory measure against other governments, and protecting home industries from external competition. The option that does not apply is "to discourage the redistribution of income at home." Import duties are not typically used to discourage income redistribution within a country.
Question 49 Report
Nationalization of an industry means that its ownership becomes that of
Answer Details
Nationalization of an industry means that the ownership of the industry is transferred from private individuals or organizations to the government of the country. In other words, the government takes over the control and management of the industry, which was previously in private hands. This could be done for various reasons, such as to protect national interests, to regulate the industry, or to ensure equitable distribution of resources. So, the correct answer is "government".
Question 50 Report
Which of the following maxims negate the principle of collective bargaining?
Answer Details
The maxim that negates the principle of collective bargaining is "only members of the union can benefit from agreements negotiated by the union." This statement suggests that non-union members do not have access to the benefits that are negotiated through collective bargaining, which goes against the principle of collective bargaining where all employees, regardless of union membership, are meant to benefit from the agreements made by the union.
