Commerce JAMB Past Questions PDF

m t.co Commerce gis 1 994 - 2 0 0 4 ool JAMB sch Past...

m t.co Commerce gis 1 994 - 2 0 0 4 ool JAMB sch Past y w.m Questions ww Download MySchoolGist JAMB CBT Software from https://www.myschoolgist.com/cbt/  Commerce 1994 1. Commerce is defined as the study of how 9. Use the data below to answer questions 9 and 10. A. man utilizes the resources in his physical MBV Enterprises environment Balance Sheet as at 31st December, 1992 B. man produces, distributes and consumes his goods and services Liabilities N Assets N N C. man buys, sells and distributes goods and Capital Fixed Assets services Balance as at Fittings 9,200 D. raw materials are changed into finished goods. Jan. 1,1992 60,000 Vehicles 7, 500 16,700 2. The type of activity which turns processed raw Add Net Profit 5,250 materials into consumer and industrial goods is 65, 250 m described as Less Drawings 6, 600 A. extractive B. manufacturing 58,650 C. constructive D. processing Current Assets Stock in hand 8,800 t.co 3. The production process that combines two or more raw Debtors 15,500 materials into one end product is Current Liabilities Cash at Bank 21,000 A. conditioning B. blending Creditors 9,730 Cash in hand 6,380 51,680 C. merging D. synthesis. 68,380 68,380 4. A demonstration of social responsibility by a business gis is the payment of 9. What is the circulating capital of the sole proprietor? A. taxes to government A. N27, 380 B. N34, 980 B. dividends to shareholders C. N36, 180 D. N51, 680 C. interest on loans D. premium for insurance. ool 10 What is the working capital as at December 31, 1992? A. N65, 250 B. N60, 000 5. A distinguishing characteristic of a limited liability C. N48, 650 D. N41, 950 company is that it A. is a collection of many sole proprietors 11. A company earned a total revenue of N108 million with B. is a multiple partnership a total cost of N91 million in 1991. If it paid 45% tax on sch C. can sue and be sued its gross profit for that year, determine its net profit. D. has limited resources. A. N24.65 million. B. N17.00 million. C. N9.35 million. D. N7.65 million. 6. Which of the following takes place when firms producing at different stages in the same industry 12. What are fixtures and fittings in a balance sheet? combine? y A. Liquid capital B. Current assets A. Conglomeration B. Vertical integration C. Fixed assets D. Working capital w.m C. Horizontal integration D. Cartel. 13. Government impose import duties for the following 7. Which of the following groups is paid first when a firm reasons EXCEPT liquidates? A. to raise revenue for other services A. Perference shareholders. B. to act as as a retaliatory measure against other B. Debenture holders governments C. Ordinary shareholders. C. to discourage the redistribution of income at home D. Cummulative preference shareholders. D. to protect home industries from external competition. ww 8. Compulsory dissolution of a business can arise from 14. Sole enterprise may flourish best in A. an agreement by the owners A. a mining business B. a retailing business B. a declaration by a court of law C. an oil exploration business C. the termination of its life D. a car assembly business D. an unfavourable economic climate. 15. The use of coin-operated machines to sell goods is a form of A. personal selling B. retailing C. wholesaling D. mail-order selling. 16. What is the major function of the wholesaler? A. Buying from small-scale producers and selling to exporters. Download MySchoolGist JAMB CBT Software from https://www.myschoolgist.com/cbt/  B. Buying in bulk and selling in small quantities A. Nigrian Deposit Insurance Corporation C. Granting of credit facilities to retailers B. Nigeria Economist Reconstruction Fund D. Providing information to manufacturers on C. Nigerian Industrial Development Bank market situation. D. Nigerian Export-Import Bank. 17. The rate at which a country’s exports exchange for its 27. Which of the following is both direct and indirect credit imports is called enterprises? A. balance of payments B. balance of trade A. Co-operative and thrifts society. C. terms of payment D. terms of trade. B. Retail co-operative society. C. Consumer co-operative society. 18. The different between the total payments for imports and D. Wholesaler co-operative society. the receipts from exports within a given period is referred to as 28. The business in the stock exchange is characterized A. balance of payments B. balance of trade essentially by C. comparative cost advantage D. comparative advantage A. dealing. B. brokerage m C. speculations D. transactions. 19. A pro forma invoice is NOT required when A. quoting for the supply of goods 29. The Second-Tier Securities Market is B. goods are sent on approval A. an apendage to the Nigerian Stock Exchange t.co C. dealing regularly with a customer B. a member of the Nigeria Stock Exchange D. final prices are uncertain. C. meant for the shares of the quoted private companies D. a regulating arm of the Nigeria Stock Exchange 20. Which of the following statements is TRUE about sea transport? 30. The elements of the marketing mix are A. All ships have specific routes to ply. A. product, promotion, place and price. gis B. All ships must be insured at every journey B. personal selling, advertising and research. C. All ships are insured separately from the crew C. promotion, production, place and price. D. All ships normally arrive at their destination with D. procurement, price, product and place. goods. 31. Which of the following items has the shortest effect on 21. ool The postal organization which preceded in Nigerian Postal the consumer? Service is A. Fashion. B. Innovation.C. Fad D. Attribute. A. Post and Telecommunications B. Post and Telephone 32. Which of the following is a form of sales promotion? C. Post and Teleprinter D. Post and Telegraph. A. Advertising on radio. B. Offering free samples. sch C. Distributing printed materials. 22. Goods discharged from ships on which import duties have D. Advertising on Television. not been paid are kept in the A. ordinary warehouse B. public warehouse 33. One advantage of personal selling over all other elements C. private warehouse D. bonded warehouse. of promotion is that A. it can provide instant feedback y 23. A sole proprietor insured his goods worth N200,000 for B. it is very cheap in terms of cost per contract half the value.There was a fire incident in which goods C. it does not need to use mass media w.m valued at N80, 000 were destroyed. The value of D. sales people are well trained. compensation expected from the insurer is A. N40,000 B. N80,000 34. Which of the following must be present in an agency by C. N100,000 D. N200,000 agreement? A. Intentions. B. Will. 24. One of the effects of the devaluation of the Naira is that C. Consent. D. Authority. the 35. An agreement to sell is distinguishable from a sale because ww A. goods that can be imported with the Naira have become cheaper in the former, the transfer of goods is B. value of other currencies relative to the Naira have A. not anticipated. B. not discussed. become cheaper C. deferred. D. immediate. C. goods that can be exported from Nigeria have become 36. Mr. Amusa says to Mr Bello ‘I will sell you this hat for costlier N30’. And Mr Bello replied ‘I will pay N29’. The contract D. imports that can be bought with the Naira have become is costlier. A. an offer and acceptance B. an implied contract. 25. Drawing two parallel lines across a cheque means that is C. a complete simple contract. has to be paid into the account of the D. an offer but no acceptance. A. payee B. drawer 37. Nationalization of an industry means that its ownership C. drawee D. payer. becomes that of 26. The financial institution established to boost Nigeria’s A. government. B. shareholders. trade with the rest of the world is called C. taxpayers. D. indigenes. Download MySchoolGist JAMB CBT Software from https://www.myschoolgist.com/cbt/  38. The Comprehensive Import Supervision Scheme was set 44. The harmonious relationship among the various units in up by the federal government in order to an organization is ensured through A. reverse Nigeria’s unfavourable balance. A. co-ordination B. motivation B. promote fair trade between Nigeria and other countries. C. planning. D. leadership. C. counteract all fraudulent business deals of Nigerians with other nationals. 45. The principle of span of control stipulats that D. ensure that imports into Nigeria are of the correct A. an employee should report to only one superior quality, value and quantity. B. managers must demand accountability from their subordinates 39. Which of the following has powers to order withdrawal of C. resources have to be economized within the various a particular food item from circulation? divisions A. Standards Organisation of Nigeria. D. the number of employees reporting to one superior B. Federal High Courts in Nigeria. should be kept to a workable maximum. C. Food and Drugs Department of the Federal Ministry of m Health. 46. Which of the following makes other functions of business D. Local government health inspectors. its appendages? A. Production. B. Marketing. 40. Which of the following maxims negates the principle of t.co C. Finance. D. Personnel. collective bargaining? A. Individual employees have weak bargaining base. 47. The use of computers in modern banking industry is a B. Individual employees attain strength when they come reflection of together in a union. A. competitive development B. scientific development C. Only members of the union can benefit from C. economic development agreements negotiated by the union. D. technological development gis D. Collective bargaining covers the vast majority of employees, whether union members or not. 48. When an oil exploring and mining company builds a health centre in one of the communities where it operates, such 41. NACCIMA stands for a company is Mines and Arts ool A. Nigerian-American Centre for Culture Industries, A. currying favour from local people B. finding a way to spend excess profits B. Nigerian Association for Culture, Civics, Industries, C. fulfilling part of its social responsibility Minerals and Arts D. investing its idle funds. C. National Agency for Culture, Civilization, Investments, Manufacturing and Agriculture 49 The West African Clearing House became legally sch D. Nigerian Association of Chambers of Commerce, operational on Industries, Mines and Agriculture. A. 1st July, 1976 B. 25th June, 1975 C. 14th March, 1975 D. 3rd May,1974 42. For the establisment of a powerful consumers’ association in Nigeria to exist, there must be 50. The Lake Chad Basin Commission was founded to enable y A. financial and moral support from the public. member states. B. honest and committed leadership. w.m C. allocation of goods from the producers. A. expand the volume of water in the Lake for fishing D. freedom from external influence. activity B. increase navigational activities on the lake 43. Which of the following is the most important business C. dam the lake for electricity and agricultural purposes. resources? D. co-ordinate their efforts in managing the use of the A. Money. B. Management lake’s resources. C. Materials D. Manpower. ww Commerce 1995 1. What are the factors with which commercial undertak 2. The development of commercial activities in Nigeria was ings can be distinguished? facilitated largely by I Size of the undertakings.II Profits generated. A. a good transport system III Forms of ownership.IV Location of the undertak B. the indigenization decree ings. C. a convenient medium of exchange. D. a high level of production. A. I and II only. B. I and III only. C. II and III only. D. III and IV only. Download MySchoolGist JAMB CBT Software from https://www.myschoolgist.com/cbt/  C. bank overdrafts D. discount houses. 3. In which of the following sets of occupations can an 14. Factoring is a trade debt term used when the agent buys industrial worker be found? all the trade debts of the A. Extraction, commerce and construction A. importers B. exporters B. Manufacturing, extraction and banking. C. nations D. customers C. Construction, quarrying and insurance. 15. The financial index which compares current assets directly D. Manufacturing, extraction and construction. with current liabilities is known as current A. turnover B. capital 4. Construction activities include the building of houses and C. ratio D. balance roads as well as A. bricklaying B. shoemaking 16. Rights issue means the C. blacksmithing D. car assembling. A. issue of shares to the directors of a company on favourable terms 5. If a partnership deed is silent on how profits are to be B. issue of shares by a company only to the founders of shared, partners share profits m the company A. in the ratio of the value of business secured by each C. right of shareholders to vote on any issue partner for the partnership D. issue of shares to shareholders on favourable terms. B. in the ratio of partners’ capital contributions t.co C. in an equal proportion, irrespective of partners’ capital 17. Profit that is expressed as a percentage of the cost of contributions goods sold is referred to as D. according to duties performed by each partner. A. margin B. mark-up C. gain percent D. gross profit. 6. Which of the following information is contained in the Articles of Association of a limited liability company? 18. Given: N A. Rights and obligations of directors Opening stock 40,000 gis B. Objectives of the company. Purchases 115,000 C. Amount of share capital. Closing stock 60,000 D. Limitation of liability of shareholders. Sales 250,000 7. The merger of two companies producing the same type of What is the cost of goods sold? products is an example of ool A. N155,000 B. N95,000 A. vertical integration B. horizontal integration C. N50,000 D. N30,000 C. lateral merger D. an acquisition. 19. In the channel of distribution, which of the following sets 8. One of the implications of the incorporation of a company is entirely made up of middlemen? sch is that A. Wholesalers, retailers and agents. B. Manufacturers, consumers and retailers. A. it is more difficult for the company to raise loans C. Wholesalers, agent and consumers. B. the company can sue but cannot be sued D. Retailers, manufacturers and wholesalers. C. the company’s property becomes distinguished from that of its member 20. Goods imported into a country for the purpose of re- y D. its members become liable for all the debts of the exporting attracts a rebate known as company. A. customs draw back B. export royalty w.m C. incentive D. export rebate. 9. The main advantage of a sole trader is the freedom to A. employ anyone he likes 21. Most foreign trade transactions are paid for through the B. seek advice from any source C. take quick decisions use of D. plough all the profits back into the business. A. Central Bank cheques B. bank drafts drawn by commercial banks on their 10. In the case of voluntary liquidation of a business, the foreign branches receiver is appointed by the C. irrevocable and confirmed letters of credit ww A. creditors B. debtors D. letters of credit authenticated by the embassies of the C. directors D. shareholders. respective countries. 11. When a company uses more of loans than equity to finance 22. RRF as a scheme introduced by the Central Bank of Nigeria its business, the company is said to be means A. bankrupt B. solvent A. Recording and Rediscounting Facility C. highly geared D. in a strong liquid position. B. Refinancing and Recording Facility 12. The nominal value of a share as specified in the C. Refinancing and Rediscounting Facility Memoradium of Association and the share certificate is D. Refinancing and Reinvesting Facility. the 23. Which of the following gives the correct order in which A. disconted value B. stock value the listed documents are used? C. face value D. par value A. Debit note, order, delivery note, invoice and state 13. A public limited company can raise long-term loans ment through B. Order, delivery note, invoice, debit note and state A. the capital market B. the money market ment Download MySchoolGist JAMB CBT Software from https://www.myschoolgist.com/cbt/  C. Statement, order, invoice, delivery note and state exchange market? ment A. Providing long-term loans to large scale enterprises. D. Invoice, order, statement, debit note and delivery B. Encouraging people to buy shares and thereby note. providing capital for investment. 24. Freight note is a document C. Providing means of assessing the value of a firms’ A. used by government to transport goods from one assets. country to another D. Enabling firms to wind-up quickly in times of difficulties. B. issued by a shipping company giving details of 35. The marketing approach by which a firm caries out a charges detailed analysis of itself, the consumers and its C. used for payment for imported goods. competitors is known as D. given by an importer to pay for goods at a future A. market analysis B. marketing mix analysis period. C. marketing opportunities analysis D. market survey. 25. An invoice of N600 is marked 5% 1 month, 212% 3 months’ 36. The breaking down of a market into separate and m and ‘1% 5 months’. If a customer pays in the second identifiable elements each with its own special product month of purchase, how much will he remit to the seller? requirements is known as market A. N570. 00 B. N585. 00 A. differentiation B. Segmentation C. N594. 00 D. N600.00 t.co C. penetration D. identification. 26. Spot market goods are those which are available for 37. Taking a new product to a particular part of a country to A. immediate delivery B. short-term delivery test the reaction of consumers to the product is referred C. long-term delivery D. end of year delivery to as 27. The main advantage of road transport is that it is A. sales promotion B. sampling A. convenient and flexible B. cheap and direct C. merchandizing D. advertising. gis C. common and fast D. safe and available. 38. A manufacturer can make his product distinguishable from 28. The practice by which an insurance company accepts a those of other competitors by very large riskand later shares it with other insurance A. providing catalogues for his wholesalers companies are called B. aggressive sales promotion A. subrogation ool B. contribution C. branding and packaging the product C. re-insurance D. indemnity. D. selling the product at a much lower price. 29. The insurance policy which provides full cover against 39. Which of the following are forms of sales promotion? all risks at sea is known as A. Advertising, personal selling and publicity. sch A. Policy with Particular Average B. Advertising, market skimming and publicity. B. Policy Free of Particular Average C. Personal selling, packaging and publicity. C. Marine Freight Insurance D. Advertising, packaging and publicity. D. Marine Voyage Policy Insurance. 40. A disadvantage of personal selling is that it 30. Berne Union is also known as A. increases a company’s operating costs. y A. International Credit Union B. decreases a company’s operating costs. B. International Documentary Credit Union w.m C. increases a company’s number of customers C. International Union of Credit and Investment Insurers D. reduces a company’s area of patronage. D. Export Credit Guarantee Scheme. 41. Chinyere agreed to make a dress for Halima with September 31. Which of the following sets of items was used for 20, 1995 as the delivery date. If the dress was not ready on exchange in Nigeria before money was introduced? that date, Halima could A. Cowries, iron rods, brass rods and copper wires. A. sue Chinyere for damages B. Iron rods, copper rods, manilla and cowries. B. sue Chinyere for specific performance C. Cowries, manilla, brass rods and copper wires. ww C. seize another gown from Chinyere’s shop D. Copper wires, brass wires, cowries, and iron rods. D. regard the contract between them as terminated. 32. A major liability of a commercial bank arises from 42. Consumer sovereignty means that the consumer is A. customers’ deposits B. loans and advances A. a citizen B. always independent C. overdrafts D. staff allowances. C. always wrong D. always right. 33. A bank statement is a document 43. When an industry or company is nationalized, the state A. ordering a bank to pay on demand a stated sum of becomes money A. the majority shareholder B. containing records of receipts, payments and balance B. the minority shareholder C. the only shareholder on an account D. an equal shareholder with other individuals. C. used for paying money into a bank account D. used for regular withdrawal of moeny from a savings 44. The Federal Government made efforts at rendering account. public enterprises more efficient and profit-oriented 34. Which of the following is NOT a function of the stock Download MySchoolGist JAMB CBT Software from https://www.myschoolgist.com/cbt/  through the process of C. reduces friction among employees in the process of A. privatization B. commercialization achieving the organization’s objectives C. indigenizationD. nationalization D. helps to eliminate industrial disharmony. 45. Which of the following organizations represents those 48. The direct authority of a superior over his surbordinate is who engage labour in Nigeria? known as A. Nigerian Labour Congress A. staff authority B. line authority B. Nigerian Employers Consultative Association. C. line and staff authority D. lateral authority C. Manufacturers Association of Nigeria. 49. A firm’s organisational structure would change if D. Nigerian Union of Local Government Employees. A. one of the major partners dies 46. The practice of assessing employees for payment or B. there is excessive competition advancement according to their observed achievement C. there is seasonal variation in demand is called D. the scope of business operation changes. A. employee ranking B. merit rating 50. The secretariat of the Niger Basin Commission is located m C. job grading D. employee evaluation. at 47. Motivation is an essential element in management A. Ouagadougou, Burkina Faso because it B. Abuja, Nigeria t.co A. leads to the improvement of staff welfare C. Niamey, Niger B. encourages individuals to work towards achieving D. Bamako, Mali the organisation’s objectives gis Commerce 1997 1. Which of the following are the components of and discharge my social responsibilities.What of you? commerce? ool MUSA: I am in business to minimize cost, provide I Trading and advertising products at low prices and as you said, discharge my II Warehousing and transportation social responsibilities. What of you, Okon and Kalu? III Packaging and branding OKON:I am in business to cater for the need of the IV Insurance and banking. consumers at all costs. sch KALU:I am in business to make profit, provide quality A. I and II B. I and III products at reasonable prices and establish a C. I, II and IV D. II, III and IV good reputation for myself. 2. A royal charter was granted to the Royal Niger Company 7. The businessman that may end up not discharging his to do business in Nigeria in social responsibility is A. December, 1888 B. May, 1887 y A. Musa B. Okon C. July, 1886 D. August, 1885. C. Taiwo D. Kalu w.m 3. Transportation, retailing and wholesaling industries rely 8. The business with the best objectives is heavily on A. Okon B. Taiwo A. banking B. insurance C. Kalu D. Musa C. manufacturing D. railway. 9. The business organization in which shareholders have 4. An example of indirect service is rendered by equal votes is A. civil servants B. family doctors A. sole proprietorship B. partnership ww C. household servants D. entertainers. C. co-operative D. limited liability company. 5. The objectives of a business are determined by the 10. The major objective of corporate mergers is to A. workers B. government A. minimize the effects of taxation C. society D. promoters. B. increase financial advantage C. facilitate profit maximization 6. Partnerships are most suitable where D. enhance economies of scale. A. the partners are family friends B. professional are involved 11. When it becomes necessary to liquidate a company, the C. members can easily raise enough capital first step to be taken is the appointment of D. government regulations are favourable. A. a receiver B. an auditor C. an accountant D. a liquidator. Use the conversation below to answer questions 7 and 8. MUSA: Taiwo, why you are in business? 12. In which of the following circumstances is a court order TAIWO: To optimize profit, provide quality products Download MySchoolGist JAMB CBT Software from https://www.myschoolgist.com/cbt/  NOT necessary for the winding up of a company? C. collect duties in ships D. load and unload ships A. Suspension of business for one year. 25. A close indent is an instruction to an agent to B. Special resolution of members. A. order goods from a particular manufacturer C. Reduction in the number of members below the legal B. order goods from any manufacturer minimum. C. sell goods to any firm D. Inability to pay its debts. D. sell goods to a certain firm. 13. One type of investment that has a variable income is 26. The basic distinction between cash discount and trade A. debentures B. preferred shares discount is that while trade discount is C. government bonds D. ordinary shares. A. for a period of 30 days, cash discount is for a period of 14. A term which indicate that a share is temporarily 3 months suspended is B. given by a wholesaler, cash discount is given by a A. ex-dividend B. cum-dividend bank C. bond D. stock. C. a reduction in the cataloque price of an article, cash m discount is a reduction in the invoice value 15. Leasing is the right to use assets for an agreed period in D. a reduction in value of sales, cash discount is a return for reduction in price of goods. A. profit B. interest t.co C. wages D. rents. 27. The cost that arises from failure to load or unload a ship at the port within a stipulated period is known as 16. The form of business financing which involves pledging A. excess charges B. demurrage charges of a specific asset is C. premium charges D. trade charges. A. debenture B. mortgage C. loan D. bond. 28. The mode of transportation that is noted for ontime dependability and low cost per unit on goods carried is gis 17. The total amount that a company is allowed to raise A. pipeline B. air according to its memoradum of association is known as C. rail D. road. A. issued capital B. authorized capital C. called-up capital D. paid-up capital 29. A person who undertakes any risk in insurance business is known as 18. ool A public limited liability company having a nominal capital A. a broker B. an underwriter made up of 200 000 ordinary shares of 50k each decided to C. an insurer D. an actuary. issue 50% of it to the public What is the authorized capital? 30. The main purpose of insurance is to A. encourage business to survive and grow A. N40 000 B. N50 000 sch B. ensure that facilities are available for operations C. N100 000 D. N200 000 C. accept risks and extend credits to policy holders 19. The turnover of a firm may be affected by D. spread individual losses over all covered participants. A. the demand for its product 31. Bank giro is a system where B. the cost of its goods sold A. Commercial banks can give loans to all customers C. its closing stock D. its net assets. y B. a central bank opens accounts for commercial banks 20. The cost of transporting goods to customers is called C. a customer uses a cheque to pay several bills w.m A. carriage inward B. carriage forward D. a customer closes his account by writing a cheque. C. carriage paid D. carriage outward. 32. Commercial banks are referred to as departmental stores 21. The main aim of selling directly to consumers by of banking because they manufacturers is to A. have many branches B. have many customers A. discourage the activities of middlemen C. are found in the cities D. offer many types of services. B. make contact with consumers 33. A market where new shares are traded is known as C. eliminate transportation cost ww A. primary market B. stock exchange D. maximize the profit margin. C. secondary market D. money market. 22. In foreign trade, document of title is known as 34. When a firm speaks of stock appreciation, it refers to A. bill of lading, B. bill at sight A. changes in the value of its stock resulting from price C. certificate of origin D. declaration form. movements 23. Excise duties are paid on goods that are B. increase in the price of its shares quoted on the stock A. imported into the country exchange B. manufactured within the country C. an unexpected increase in the demand for its stocks C. exported to other countries D. the value of its stocks in the stock exchange. D. kept in bonded warehouses. 35. The process of creating more market for a product is called 24. Stevedores as a term in foreign trade means men who A. advertising B. marketing A. inspect goods in shipsB. import goods by ships C. promotion D. consumerism. Download MySchoolGist JAMB CBT Software from https://www.myschoolgist.com/cbt/  36. When a vendor supplies newspapers from house to house and across the streets, the element of marketing 43. The least of the advantages of indigenization is that mix involved is A. the standard of living of the indigenes is improved A. product B. price B. the economy is controlled by the nationals C. promotion D. place C. entrepreneural skill is developed D. foreigners’ domination is avoided. 37. The main advantage of using cinema as an advertising medium is that it is 44. The main objective of a trade association can best be A. cheap B. accurate described as promoting and protecting C. accessible D. informative. A. the products B. common interest C. the market D. customer’s interest. 38. When old customers stick to the old place to buy goods and services, it is known as 45. The management function of evaluating whether A. goodwill B. personal factor objectives are being achieved is C. window shopping D. patronage. A. planning B. directing m C. organizing D. controlling. 39. The most important piece of legislation governing business and commercial activities in Nigeria currently is 46. In a business organization, the annual operation plan or the budget is a form of t.co A. Companies Decree, 1968 A. casual plan B. medium-term plan B. Trade Dispute Decree, 1976 C. long-term plan D. short-term plan. C. Companies and Allied Matters Decree, 1990 47. A key advantage of delegation is that D. Banks and Other Financial Institutions Decree, 1991. A. workers are prepared for higher responsibilities 40. One of the criteria for differentiating consumer markets B. the manager has less work to do from industrial ones is the C. the manager spends less time on planning gis A. type of demand B. type of supply D. the organizing grows larger in size. C. nature of the services rendered 48. Social responsibility of business requires enterprises to D. price of the goods. A. hold annual social parties for the public 41. The over-riding objective of the food and drug act in B. draw their workers only from the immediate Nigeria is to prevent the ool environment A. importation of food and drugs that can be locally C. address themselves to issues relating to the society. manufactured D. set up social welfare centres in their areas of operation. B. consumption of food and drugs not tested by the 49. The existing system of governance and the administrative ministries of health sch sub-divisions of a country which affect the operations of C. adulteration of food and drugs sold in the country business in the country is described as D. manufacturers of food and drugs from charging A. economic environment B. legal environment excessive prices. C. political environment D. social environment. 42. The activities of consumers association in Nigeria have 50 Sudden technological changes can have the effect of not been effective because y making A. the consumers are too many A. a company’s management style ineffective w.m B. the government is not favourably disposed towards B. a company’s product obsolete consumerism C. the control mechanism difficult to implement C. there is poor enlightenment about consumer rights D. the motivational factors in the company difficult to D. the consumers have no medium for expressing their monitor. feelings. ww Commerce 1998 3. Extractive industries may also be denominated as 1. Which of the following contributed least to the evolution A. direct industries B. servicing industries of commercial activities in Nigeria? C. primary industries D. indirect industries. A. Development of banks B. Development of transportation. 4. The primary objective of a business organization is to C. Development of traders’ unions. A. cater for the needs of its owners D. Development of currencies. B. work towards making returns C. assist the government to serve the citizens 2. One of the factors which critically determines the choice D. improve the standard of living of its proprietors. of occupation is A. training B. skill 5. Services which are of absolute monopoly can best be C. aptitude D. interest. provided by Download MySchoolGist JAMB CBT Software from https://www.myschoolgist.com/cbt/  A. private companies B. limited liability Use the information below to answer questions 13 and 14 companies C. public companies SONU Enterprises D. public enterprises. Balances Sheet as at 31/3/98 N N 6. One advantage the co-operative society has over the Capital 6,000.00 Plant/Machinery 2,300.00 ordinary company is that the Net profit 2,000.00 Motor van 2,000.00 A. latter pays tax while the former does not Drawings (137.50) Stock 1,250.00 B. former attracts more capital than the latter Creditors 1,000.00 Debtors 480.00 C. membership of the former is usually more than that of Accruals 187.50 Bank 3,000.00 the latter Cash 20.00 D. former, unlike the latter, has limited liabilities. 9,050.00 9,050.00 Use the information below to answer questions 7 and 8 13. What is the current ratio? Mr Obi is a manager of Obi Agricultural Venture. He makes A. 4:1 B. 4.5:1 C. 5:1 D. 25.5:1 all the decisions and takes all profits from the business. m 14 What is the acid ratio? He had agreed with Alhaji Musa (a farmer) to pool their A. 2.95:1 B. 4.25:1 C. 4.75:1 D. 5.55:1 resources together and expand their business. They invites Mr. Abayomi (a cotton grower) to join them. Mr 15. The form of capital which is easily transferred into the t.co Abayomi agreed on the condition that his liability in the form desired is known as new firm will be limited to his investment in it. They thus A. working capital B. liquid capital registered Obi, Musa & Abayomi Agricultural Ventures. C. circulating capital D. capital employed. 7. It can be deduced from the above that Obi 16. If a firm’s turnover is N15,000 and the cost of goods sold AgriculturalVentures is a is N10,000, what is the percentage of gross profit on sales? A. sole proprietorship B. general partnership A. 23.3% B. 33.3% C. 50.0% D. 66.6% gis C. limited partnership D. joint venture. 17. A machine which enables sales without the physical presence of a sales attendant is a 8. Which of the statements below is true of Mr Abayomi? A. computer machine B. vending machine A. He can assign his shares to another without consent C. telex machine D. fax machine of other partners ool B. He cannot take part in the management of the business. 18. What document is required when a country imposes and C. His actions as a limited partner can bind the firm. valorem import duties on goods? D. His death will authomatically dissolve the partnership. A. A mail transfer B. A shipping note C. A bill of lading D. A consular invoice. sch 9. A source of capital to private limited companies is shares issued to 19. Entrepot trade is said to have taken place when goods are A. the public B. selected persons A. held at the port pending payment of custom duty C. members of the Board of Directors B. sold in the ship under special regulation D. Dedicated members of staff. C. imported and then re-exported D. kept for further processing before sales. y 10. Which of the following is an example of a conglomerate? A. National Electric Power Authority 20. When a price is quoted at F.O.B.it means that the price w.m B. United Africa Company Nigeria Plc A. excludes loading charges incurred in bringing the C. The Nigerian Railway Corporation. goods to the dock D. First Bank Nigeria Plc. B. excludes all necessary shipping charges payable for insurance 11. Which of the following statements is true of preferred C. includes all charges payable on shipping a consignment stockholders? to the port of destination A. They have no voting rights at annual general meetings D. includes charges payable for loading goods onto the B. They have first claim to company assets before ww ship. creditors C. They have first claim to company assets after all debts 21. Emeka ordered goods for his retail shop. The manufacturer have been settled. sells the goods at retail price of N500 but would give it to D. They share dividends equally with common Emeka at N400. What kind of discount did he get? stockholders. A. Cash discount B. Trade discount C. Quantity discount D. Seasonal discount 12. A provision in the charter of a company which gives holders of common stock the first option to purchase 22. Nigerian Postal Services (NIPOST) facilitates commerce additional issues of the firms’ common stock is the in all the following ways except through A. cash on delivery service B. recorded delivery A. pre emptive right B. shareholders right service C. express service D. free on board service. C. ex-dividend right D. oversubscription right. 23. The document with which a manufacturing enterprise releases stock of raw materials to the factory for production is called Download MySchoolGist JAMB CBT Software from https://www.myschoolgist.com/cbt/  A. stock release form B. goods received note 32. The oral presentation in a conversation with one or C. store issues voucher D. materials release note. more prospective buyers for all purpose of making sales 24. The two main categories under which marine losses is fall into are A. branding of goods B. personal selling A. particular loss and average loss C. packaging D. publicity. B. actual loss and general loss 33. Personnel activities that promote the general image of an C. total loss and partial loss organisation are part of D. voyage policy loss and time policy loss. A. advertising B. sales promotion 25. Insurance companies operate on the principle of indemnity. C. public relations D. business correspondence. This means that an insured person or firm collects 34. An agent must not make any secret profits in the A. only half of the loss suffered performance of his duties but can only be rewarded by B. double the value of the loss suffered his principal through C. the total sum of the premiums paid prior to the loss A. remuneration and indemnity m D. damage claims equal to the loss suffered. B. payment of commission and salary 26. The most important difference between community banks C. granting of business concessions and peoples’ bank is that the D. forwarding of business links. t.co A. latter is owned solely by government while the former 35. Sabo and Gambo entered into a contract for the sale of are not two baskets of tomatoes belonging to Gambo before the B. former cater for rural dwellers while the latter caters for date pf delivery and without any default by Gambo, the both rural and urban dwellers tomatoes were stolen.This is an example of termination of C. former are service oriented while the latter is profit contract by oriented A. breach B. performance gis D. latter advances loans to the public while the former C. fault D. frustration. advance loans to rural dwellers only. 36. A minor is not permitted to enter into a valid contract 27. The assets, liabilities and general management of a because he distressed bank may be taken over by A. cannot pay the consideration ool A. International Bank for Reconstruction and B. is too young to interprete the law Development C. is young in the eye of the law B. Nigerian Industrial Development Bank D. may not be able to write the contract. C. Nigerian Deposit Insurance Corporation D. Nigerian Bank for Commerce and Industry. 37. A person who is cheated in a business transaction can sch 28. The type of securities that the stock exchange deals with seek legal remedy are A. even if the agreement is verbal and the amount involved A. warrants, currency notes, money orders and postal is large orders B. only if the business is a sole proprietorship whose B. cheques, bank drafts, warrants and promissory notes owner is known C. bonds ivory, treasury bills, debentures and warrants C. regardless of the form of business organization y D. stocks, shares, bonds and warrants. D. only if the transaction is docmented in contract. w.m 29. I. Companies must be registered as private limited liability 38. The most essential element of a product is the companies A. price B. utility II. Companies must have less than 100 shareholders. C. design D. colour III. No shareholder may have more than 75% of issued share capital. 39. Which of the following is a disadvantage of What of the above are reqirements for admission into the nationalization? second-tier securities market? A. It promotes poor economic planning ww A. I and II only B. I and III only B. The cost of services is not determined by market forces. C. I, II and III D. II and III only. C. It may lead to rationalization or resources D. The development of local skills and technologies is 30. An underlying principles in the marketing of goods is retarded. that firms should A. train their personnel B. be consumer oriented 40. An example of a consumer protection agency is the C. advertise the goods D. sell through outlets. A. Nigerian Bar Association B. Nigerian Medical Association 31. Product X was introduced into the market at N4.00 with C. Federal Environmental Protection its cost of production at N3.90 while competing D. Manufacturers Association of Nigeria. products are selling at N4.50. What pricing policy are producers of X adopting? 41. The body that organizes, promotes and participates in A. Market skimming B. Market penetration local and foreign trade fairs is the C. Product live promotion A. Ministry of Commercial and Tourism D. Above the market pricing. Download MySchoolGist JAMB CBT Software from https://www.myschoolgist.com/cbt/  B. Ministry of Finance C. Chambers of Commerce D. Export Promotion Council. 46. EXTERNAL INTERNAL EXTERNAL 42. The Continental West African Conference is a ENVIRONMENT ENVIRONMENT ENVIRONMENT A. group of aWest African countries trading in the same products Which of the following sequences can best fit into the B. conference to foster unity among the West African structure above? countries A. People control ideas C. group of shipping lines operating on the same West B. Material production ideas African route C. Finance marketing product. D. trust with shareholders from all West African D. Materia production product. countries. 47. When a business enterprises provides free service to its 43. The main function of thrift, credit and loans environment, the services is said to be a co-operative societies is to A. civic responsibility B. philanthropic m A. educate their members C. consideration D. social responsibility. B. collect money from their members C. disburse money to their members 48. Inventory control is an aspect of D. raise investment finance among their members. A. operations research B. materials management t.co C. the organizing functions D. span of control. 44. Management is described as A. getting things done through people 49. The reduction of import duties among the member B. implementation of business decisions countries of ECOWAS is an example of C. the number of levels in an organization A. preference duties B. preferential treatment D. the people in authority in an organization C. preference tariffs D. preferential excise gis 45. Under normal circumstance, a business enterprise can 50. In a common market, member countries agree basically to be ideally structured A. place bans on other countries’ products A. by products, function or territories B. wage war against other countries B. around the personalities in the enterprise C. establish common barriers against countries outside ool C. on the rulling of the management the market D. negotiate with countries outside the market for D. on the basis of an order from stockholders. favourable terms of trade Commerce 1999 sch 1. The conversion of raw materials into finished products one else without permission from other shareholders creates B. their annual accounts are made avaible to the A. marginal utility B. place utility corporate affairs commission y C. form utility D. time utility C. shares can be offrred for sale on the stock exchange 2. Commerce makes it possible for man to live in a D. Shares can be offered for sales through an issuing w.m A. complex and organized society house. B. society characterized by subsistency 6. The primary motive behind an individual engaging in C. society characterized by dependency production is to D. simple and organized society. A. fully engage all the factors of production Use the information below to answer questions 3 and 4. B. make available goods and services C. meet projected profits. Aboki Plc became insolvent and decided to wind up to D. meet basic human needs. ww meet the legitimate claims of its creditors. Babalawee was called in to manage the dissolution. 7. Musa obtains wool from his sheep, spins and transforms it into cloth which he sells to consumers. This is a form of 3. After paying the debts of Aboki Plc, the balance goes to A. vertical integration B. horizontal integration A. Aboki Plc B. Babalawee C. forward integration D. backward integration. C. shareholders D. creditors. 8. A company has an authorized capital of 40 million at N1 4. Babalawee is a per share, out of which 32 million shares have been A. a claimant B. a manager issued and fully paid-up.The remaining 8 million shares C. an assessor D. a receiver. have A. been issued but have not been paid up 5. A common requirement for public and private limited B. been applied for but not issued companies in Nigeria is that C. not been paid-up D. not yet been issued. A. a shareholder cannot transfer his shares to some Download MySchoolGist JAMB CBT Software from https://www.myschoolgist.com/cbt/  9. An abridged version of a company’s income statement payment for goods purchased for 1993 contains the following information: A. can refuse to pay on due date since it is only a promise. N(million) B. is bound to redeem the not for cash on due date Turnover 286.5 C. is not bound to renew the note before payment Cost of goods sold 147.5 D. can return the goods purchased and refuse to pay. Overhead and other expenses 85.5 Taxes due for the year 26.9 17. Kamaldeen is a seller in a hire-purchase agreement with What was the company’s profit before taxes for 1993? Emeka. By law, Kamaldeen cannot recover the hire A. N26.9 million B. N53.5 million purchased goods. This is an instance of a restriction on C. N139.2 million D. N286.5 million A. Emeka’s right to terminate the agreement 10. A business whose owners enjoy loan facilities on the B. Kamaldeen’s right to re-hire the goods basis of personal goodwill is a C. Emeka’s right to breach the agreement A. commercial bank B. thrift society D. Kamaldeen’s right to terminate the agreement. m C. co-operative society D. community bank 18. The main documents sent to an importer of goods by the 11. Which of the following is not a veritable source of funds exporter are to a public limited liability company? A. invoice, consular invoice, certificate of origin, freight t.co A. Government financial grants note, indent and insurance policy. B. Advances and loans from banks. B. indent, bill of lading, certificate of origin, invoice and C. Internally generated funds. bill of exchange D. Funds from the sale of shares. C. certificate of origin, bill of exchange, invoice, insurance policy, indent and bill of lading Use the document below to answer questions 12 and 13. D. bill of lading, invoice, insurance policy, consular gis N200,000.00 Liverpool, U.K, June 2, 1995 invoice, certificate of origin and bill of exchange. Three months after date, pay to or to the order of 19. The document that indicates instant payment of cash for Mr. Okon Etim Esin goods whenever they are delivered is A. credit note B. proforma invoice ool Two hundared thousand............................................Naira C. debit note D. statement of account. Payable at First Bank, Plc. 20. Which of the following documents permits an importer to Lagos Imo Edit Enoh inspect his goods before the arrival of the bill of lading? No 5Due Sept., 2 1995 Liverpool. A. Bill of sight B. Import invoice sch C. Consular invoice D. Bill of exchange 12. Okon Etim Esin is the A. debtor B. creditor C. exporter D. importer 21. The overriding advantage of home trade over foreign trade is 13. The document represents a A. accessibility of seller to buyer A. bill of exchange B. cheque B. absence of many documents y C. money order D. promissory note C. ease in language of transaction w.m 14. The term 5 Net 7’ on an invoice means that D. ease in form of payment. A. 5% discount will be allowed on the price charged if 22. A distinction between Comprehensive Insurance and payment is made within seven days Third Party Insurance is that the latter covers damages B. 5% discount will be allowed on the price charged if A. caused by the insured vehicle payment is made after seven days B. to the insured vehicle C. 5% surcharge will be made unless payment is made C. caused by the other vehicle within seven days D. to the driver of the insured vehicle. ww D. 5% discount will be allowed on the price charged only if the goods are bought within seven days. 23. The rate at which a central bank discounts first class bills is called the 15. Kabir receives two quotations. Ade quotes N100 less A. fixed rate B. bill rate 20% trade discount, while Benson quotes N100 less 30% C. bank rate D. interest rate trade discount and 10% cash discount. If Kabir wants to take advantage of trade and cash discount, then 24. The principle of subrogation states that A. an insured person should be indemnified to the A. the materials should be supplied by Ade tune of the amount insured B. the materials should be supplied by both of them B. an insurance company can stand in place of the C. the materials should be supplied by Benson insured in dealing with third party D. Benson should be asked to reduce his trade C. only a person who likely to suffer loss should take discount. out an insurance cover 16 A company which issues a promissory note in lieu of Download MySchoolGist JAMB CBT Software from https://www.myschoolgist.com/cbt/  D. there must be a close connection between the actual A. seller B. profit loss suffered and risk insured. C. product D. buyer. 25. Tolu purchased goods from Yemisi and is to pay 36. Adigun displays goods of different makes on shelves custom duties before collection. The goods are likely to in his supermarket. This is an exmple of be collected from A. invitation to treat B. offer to sell A. a manufacturer’s warehouse C. offer to purchase D. invitation to sell. B. a bonded warehouse C. an importer’s warehouse 37. The process of bringing a company under exclusive state D. a wholesaler’s warehouse. ownership and control is known as 26. The three major functional units which the modern A. nationalization B. commercialization computer has are C. indigenization D. privatization. A. the input, the processor and the output units 38. Q acting as the agent of P, lawfully and reasonably incurs B. the black box, output and input units the amount of N350 as expenses. If Q comes to P for C. BASIC, COBOL and output units. payment, this is an instance of P’s duty to m D. BASIC, the processor and PASCAL. A. remunerate Q B. repay Q 27. I foreign investment. II Long-term lending III. Short- C. indemnify Q D. settle Q term lending IV. Foreign exchange reserve V. Short-term t.co borrowing. Which combination of the above include 39. In a hire purchase agreement between Argungu Ltd and capital account in international trade? Maikudi, Argungun Ltd inserted the provision that it can A. I, III and IV B. II, III and IV enter Maikudi’s premises at any time and remove the hired C. II and V D. I and II vehicle for any breach.This provision is A. lawful to both B. unlawful to both 28. The elimination of faults in a computer program is called C. beneficial to both D. detrimental to both. A. console B. debug C. dump D. loop. gis 29. Aliyu bought 100 share at the stock market through a 40. In every simple contract, the price which is paid to stockbroker. He was told the price of each share was N3 purchase a promise is called cum. div. This means that Aliyu A. offeree B. acceptance A. is entitled alwa