Your results on Commerce 2010 are shown below

1. A bonded warehouse is a place for keeping

• contraband goods
• dutiable goods
• tax free goods
• smuggled goods

2. Which of the following can quote its shares on the stock exchange?

• Partnership
• Sole proprietorship
• Co-operative society
• Public Limited Company

3. If a businessman wants to insure against dishonesty of the cashier, he will take

• a burglary policy
• an employerâ€s liability cover
• a fidelity guarantee cover
• a consequential loss policy

4. Which of the following describes the reason for international trade?

• Balance of payment
• Comparative cost advantage
• Absolute cost advantage
• Balance of trade

5. Small scale retailers continue to survive in spite of serious competition from large scale retailers because they

• buy from many manufacturers
• maintain personal relationship with customers
• stock only one line of goods in their stalls
• do not separate business money from personal money

6. Which of the following factors is not to be considered in starting a retail trade?

• Size of the business
• Nature of business
• Amount of capital required
• Level of tax payable

7. The import of foreign-produced goods to be re-exported is known as

• domestic trade
• wholesale trade
• entrepot trade
• counter trade

8. One roof containing a number of shops is a

• tied ship
• mail order firm
• department store
• chain store

9. The selling of articles from place to place on foot is

• mail order
• itinerant trading
• barter
• self service

10. A company whose shares are not easily transferable is a

• private limited company
• public limited company
• public corporation
• company limited by guarantee

11. Which of the following must be stated in the article of association?

• The objects of the company
• The registered office address of the company
• The method of issue and transfer of shares
• Statement that liabilities are limited

12. Which of the following insurance principles states that a person must be in a position to suffer financially in the event of a loss?

• Proximate cause
• Indemnity
• Insurable interest
• Subrogation

13. Catalogues are mostly used by

• chain stores
• department stores
• mail order firms
• supermarkets

14. The main function of a thrift and credit cooperative society is to

• encourage members to buy cheaply
• enable members get the highest profit
• help members get legal redress
• encourage members to save

15. The exchange of goods for goods in home trade is known as

• entrepot trade
• trade by barter
• commodity trade
• distributive trade

16. Which of the following is the safest way of sending important documents through the post?

• Registered mail
• Parcel post
• Letter post
• Express mail

17. Which of the following is not true of the stock exchange?

• It is a commodity market
• It provides market for trading on shares
• Government and companies raise fund through it
• It provides professional advice on investment

18. A cheque issued in January 1997 which the holder failed to present for payment until September 1997 is called a

• crossed cheque
• travellerâ€s cheque
• post-dated cheque
• stale cheque

19. When the buyer of an existing share is to receive the pending dividend, the price is

• cum div
• ex-div
• at par
• at a discount

20. What is the name of the service where a bank makes regular payment on behalf of its customers?

• Direct debit
• Credit transfer
• Standing order
• Bank draft

21. The enterprise whose main objective is to provide the public with essential services is known as

• cooperative society
• partnership
• private company
• public corporation

22. Which of the following is a more suitable medium for advertising a new tractor?

• Radio
• Poster
• Neon sign
• Trade fair

23. Which of the following is an advertising function?

• Packaging
• Persuading
• Grading
• Segmenting

24. The document of title to goods being shipped abroad is known as

• consignment note
• ships manifest
• bill of entry
• bill of lading

25. The practice whereby customers purchase goods without being attended to by shop assistants is

• pre sales service
• after sales service
• self service
• impulse buying

26. In which of the following organizations are members entitled to one vote, irrespective of the number of shares held?

• Public corporation
• Partnership
• Limited company
• Co-operative society

27. Mobile Shopping involves selling

• from motor van
• at a particular spot in the city
• in multiple shops only
• from vending machine

28. The provision of adequate number of berths by which ships can load and off-load is the function of the

• Department of Customs & Excise
• Ports Authority
• Shipping and Forwarding Agent
• National Shipping Line

29. Which of the following is not a disadvantage of a one-man-business?

• Unlimited liability of owner
• Life of business limited to life of owner
• Personal control of business
• Difficulty in raising additional capital

30. Unlimited liability in business implies that the

• risk of the owner is limited only to the amount invested
• debts are paid with subventions
• property of the owners should not be used to secure loans
• owners private property can be used to settle the business debts.

31. Sole proprietorship is a form of business owned by

• an individual
• two or more persons
• a registered business subsidiary
• the government

32. Which of these qualities guarantees the keeping of money for a long period?

• Acceptability
• Divisibility
• Durability
• Homogeneity

33. Which of the following is not a source of fund for sole proprietorship?

• Personal savings
• Borrowing from friends and relatives
• Borrowing from financial institution
• Government bonds

34. Which of the following is not an advantage of partnership?

• Diversified managerial talents
• Greater financial resources
• Freedom to terminate business
• Account is not made public

35. Which of the following is used for a single payment of many people at the same time through a bank instead of writing separate cheques?

• Debit transfer
• Credit transfer
• Certified cheque
• Crossed cheque

36. The Legal document that gives an individual power to protect his own piece of invention is called

• copy right
• license
• patent right
• trade mark

37. A mortgage bank is primarily concerned with financing the acquisition of

• motor vehicle
• research equipment
• computer machine
• dwelling houses

38. The work of actuaries is to

• underwrite insurance risks
• calculate insurance premiums
• settle insurance claims
• assess profits for insurance companies

39. Government financial grants is a source of capital to a

• partnership
• public limited company
• public corporation
• co-operative society

40. Which of the following is not a feature of a co-operative society?

• Owners are the customers
• Capital can be repaid to a member
• Votes are according to shares held
• Dividend is based on patronage

41. The practice of selling a product below the cost price to attract customers to a shop is known as

• hedging
• loss leader
• skimming
• under-invoicing.

42. Which of the following is not contained in a deed of partnership?

• Names and addresses of partners
• Ratio for sharing profits and losses
• Investment of each partner
• Rate of taxation

43. The publication of facts on a firm’s product is called

• merchandizing
• exhibition
• feature articles
• mass advertizing

44. Which of the following is not a function of a retailer?

• Providing after sales service
• Stocking variety of goods
• Selling in small units to the consumers
• Financing manufacturers

45. A firm on the stock exchange which agrees to buy shares not bought after a public offer is

• a broker
• a stag
• a jobber
• an underwriter

46. Which of the following ancillary services makes it possible for goods to be where they are required?

• Communication
• Banking
• Transportation
• Insurance

47. Use the following information below to answer questions 47and 49.

Ojo bought a bicycle for N20,000, and repaired it at a cost of N5,000. He then sold the bicycle for N30,000.

What was his net profit?

• N35,000
• N25,000
• N15,000
• N5,000

48. What is the percentage of expenses over cost?

• 50%
• 33%
• 25%
• 17%

49. What is the cost of goods sold?

• N30,000
• N25,000
• N20,000
• N15,000

50. Which of the following mode of transport involves the use of tramps?

• Land transport
• Sea transport
• Air transport
• Pipeline

ANSWERS

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