WAEC 2008 Commerce Questions and Answers

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1. ï»¿Commerce can be defined as the

  • exchange of goods and services
  • distribution and exchange of goods and services
  • distribution of services at home
  • export of services.

2. Which of the following is not a function of commerce?

  • Facilitates mass production of goods
  • Assists in raising capital
  • Creates goods and services
  • Offers employment.

3. Production is defined as

  • an industrial activity
  • creation of utilities
  • the exchange of goods and services
  • changing of raw materials into finished goods

4. Babou Penn, a fisherman, says he has all necessary materials to go to sea today, except the captain of his boat. Captain here as a factor of production, refers to

  • entrepreneur
  • capital
  • labour
  • land

5. Farmers and all other workers concerned with getting raw materials from the earth are engaged in

  • commercial occupation
  • manufacturing occupation
  • constructive occupation
  • extractive occupation

6. The process of making goods attractive and easy to handle is

  • branding
  • merchandising
  • packaging
  • labelling

7. The charges imposed by the government on locally manufactured goods is called

  • customs duties
  • excise duties
  • tarrifs
  • quota

8. A grocer invoiced a carton of fish valued at N2,500 for N2,000 only. To correct the error, which of the following documents would be sent to the buyer?

  • Credit note for N500.00
  • Debit note for N500.00
  • Credit note for N2.500.00
  • Debit note for N2.500.00

9. The exchange of goods and services among many countries is

  • multilateral trade
  • bilateral trade
  • counter trade
  • entrepot trade

10. If a ship overstays its stipulated time at a port, it pays a charge known as

  • arbitrage
  • demurrage
  • dock due
  • toll

11. A transaction where the buyer of a commodity becomes its legal owner after the payment of the last instalment is

  • a credit sale
  • factoring
  • hire purchase
  • leasing

12. An agreement whereby the seller transfers or agrees to transfer the property in goods for a monetary consideration is a

  • contract of sale
  • hire purchase
  • conditional sale
  • party selling

13. The main purpose of sending delivery notes along with goods is to

  • enable the goods to be checked on arrival
  • enable the buyer to pay the correct delivery charges
  • ensure the safe delivery of the goods
  • prevent the goods from being stolen in transit.

14. A shop that sells only the products of a particular manufacturer is known as

  • mobile shop
  • unit shop
  • tied shop
  • small shop

15. Which of the following statements cannot be found in a partnership deed?

  • Names of partners
  • Nature of business
  • Payment of tax
  • Interest on capital.

16. Product differentiation is achieved by

  • packaging and branding
  • packing and grading
  • market segmentation
  • outdoor advertising

17. Which of the following services is not offered to retailers by wholesalers?

  • Keeping them informed of the demands of consumers
  • Keeping them informed of new products
  • Offering a wide range of products
  • Granting credit

18. The buying and selling of goods and services within a country is called

  • counter trade
  • entrepot trade
  • foreign trade
  • home trade

19. The relationship between partners is stipulated in the

  • Memorandum of Association
  • Article of Association
  • Partnership Deed
  • Certificate of Incorporation

20. Which of the following cannot be used to regulate importation?

  • Import quota
  • Import licence
  • Imposition of embargo
  • Increase of excise duty

21. A firm that accepts, sells and delivers goods by post is a

  • supermarket
  • multiple store
  • department store
  • mail order business

22. Okoni & Co. law chamber is an example of a

  • sole proprietorship
  • partnership
  • co-operative society
  • public limited company

23. A refund of the duty collected on goods imported into a country which are later re-exported is called

  • excise duty
  • ad valorem tax
  • customs drawback
  • demurrage

24. Which of the following is mostly used by a mail order business to sell goods?

  • Posters
  • Catalogues
  • Journals
  • Magazines

25. Information requested from a bank concerning the credit worthiness of a new customer to a business is

  • private enquiry
  • status enquiry
  • general enquiry
  • letter of enquiry

26. The document which gives legal authority to a company to operate as a legal entity is

  • Memorandum of Association
  • Article of Association
  • Share Certificate
  • Certificate of Incorporation

27. A business that is independent of its owners is a

  • sole proprietorship
  • partnership
  • limited liability company
  • co-operative society

28. The amount paid regularly by the assured to the insurer is

  • dividend
  • premium
  • interest
  • indemnity

29. Net profit is calculated as

  • sales less purchases
  • sales less expenses
  • gross profit less expenses
  • gross profit less purchases

30. Which of the following carries specialized goods?

  • Liner
  • Tramp
  • Ferry
  • Tanker

31. In sea transport, vessels that operate on fixed routes and schedules are called

  • ferries
  • yachts
  • liners
  • tramps

32. Which of the following advertising media combines the advantages of both sight and sound?

  • Television
  • Radio
  • Neon sign
  • Billboard

33. One disadvantage of advertising to the consumer is that it

  • brings confusion on the choice of goods
  • increases demand
  • persuades the public to buy what they need
  • decreases the cost of goods.

34. Which of the following is not a sales promotion method?

  • Demonstration
  • Exhibition
  • Free sample
  • Newspaper

Question was not answered

35. Working capital is

  • current assets less total liabilities
  • total assets less total liabilities
  • current liabilities plus current assets
  • current assets less current liabilities.

36. A cheque dated 30th July, 2004 but presented for payment on 28th February, 2005 is

  • post-dated
  • crossed
  • opened
  • stale

37. Use the following information below to answer questions 37 to 39. This extract is from Eniola Computer Services, Aba. N Sales 200,000.00 Stock 1/1/2004 25,000.00 Stock 31/12/2004 15,000.00 Purchases 145,000.00 Returns inwards 20,000.00 Sales and distribution 13,000.00 Wages and salaries 8,000.00. The average stock is

  • N60,000.00
  • N35,000.00
  • N30,000.00
  • N25,000.00

38. The gross profit is

  • N65,000.00
  • N55,000.00
  • N30,000.00
  • N20.000.00

39. The cost of goods sold is

  • N135.000.00
  • N115,000.00
  • N60.000.00
  • N35,000.00

40. Which of the following receives dividend based on patronage?

  • Preference shareholder
  • Co-operative society member
  • Cumulative preference shareholder
  • Debenture holder

41. If a customer opens a deposit account with a bank, he will

  • receive a crossed cheque book
  • be given a tally
  • be given a loan
  • receive interest.

42. A chamber of commerce normally consist of

  • officials of the trade unions of commercial workers
  • all the people engaged in one aspect of trading and manufacturing
  • all the workers in one branch of commerce
  • the people who represent a cross-section of business interests in a town

43. A group of musicians can come together to form a

  • chamber of commerce
  • public corporation
  • trade association
  • trade union

44. Which of the following is not an advantage of marketing?

  • Creation of demand
  • Ensuring effective distribution of goods
  • Implementing government regulations
  • Application of marketing techniques

45. One disadvantage of indigenization is that it

  • discourages foreign control of an economy
  • encourages local retention of profits
  • encourages the participation of indigenes in economic development
  • discourages foreign investment.

46. 46. The takeover by government of Sanking Sillah and Sons Ltd is referred to as

  • privatization
  • indigenization
  • commercialization
  • nationalization

47. Which of the following economic unions is made up of countries in West Africa only?

  • ACP
  • ECOWAS
  • NATO
  • ADB

48. People who sell shares in anticipation of a fall in their value are called

  • bears
  • bulls
  • brokers
  • jobbers

49. Which of the following is not a favourable condition under which personal selling can be practised?

  • When advertising entails relatively high costs
  • When the market is concentrated
  • When the market is dispersed
  • When personal touch is needed

50. A shareholder who holds 100,000 shares of 50 butts each is given a dividend of 10 per cent less 2 per cent tax. What is his net return?

  • D10,000.00
  • D9,800.00
  • D5.000.00
  • D4,900.00.

ANSWERS

  1. B
  2. B
  3. B
  4. C
  5. D
  6. C
  7. B
  8. B
  9. A
  10. B
  11. C
  12. A
  13. A
  14. C
  15. C
  16. A
  17. A
  18. D
  19. C
  20. D
  21. D
  22. A
  23. C
  24. B
  25. B
  26. D
  27. C
  28. B
  29. C
  30. A
  31. A
  32. A
  33. A
  34. D
  35. D
  36. D
  37. C
  38. A
  39. A
  40. D
  41. D
  42. D
  43. D
  44. C
  45. D
  46. D
  47. B
  48. A
  49. B
  50. D

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