JAMB Commerce 1994 past questions and answers

Commerce is defined as the study of how

1. A.man utilizes the resources in his physical environment
2. B.man produces, distributes and consumes his goods and services
3. C.man buys, sells and distributes goods and services
4. D.raw materials are changed into finished goods.

The type of activity which turns processed raw materials into consumer and industrial goods is described as

1. A.extractive
2. B.manufacturing
3. C.constructive
4. D.processing.

The production process that combines two or more raw materials into one end product is

1. A.conditioning
2. B.blending
3. C.merging
4. D.synthesis

A demonstration of social responsibility by a business is the payment of

1. A.taxes to government
2. B.dividends to shareholders
3. C.interest on loans
4. D.premium for insurance.

A distinguishing characteristic of a limited liability company is that it

1. A.is a collection of many sole proprietors
2. B.is a multiple partnership
3. C.can sue and be sued
4. D.has limited resources.

Which of the following takes place when firms producing at different stages in the same industry combine?

1. A.conglomeration
2. B.vertical integration
3. C.horizontal integration
4. D.cartel.

Which of the following groups is paid first when a firm liquidates?

1. A.Preference shareholders
2. B.Debenture holders
3. C.Ordinary shareholders
4. D.Cumulative preference shareholders.

Compulsory dissolution of a business can arise from

1. A.an agreement by the owners
2. B.a declaration by a court of law
3. C.the termination of its life
4. D.an unfavourable economic climate.

Use the balance sheet of MBV Enterprises as at 31st December, 1992 shown to answer this question. What is the circulating capital of the sole proprietor?

1. A.₦27 380
2. B.₦34 980
3. C.₦36 180
4. D.₦51 680

Use the balance sheet of MBV Enterprises as at 31st December, 1992 shown to answer this question. What is the working capital as at December 31, 1992?

1. A.₦65 250
2. B.₦60 000
3. C.₦48 650
4. D.₦41 950

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.

1. A.₦24.65million
2. B.₦17.00million
3. C.₦9.35million
4. D.₦7.65million.

What are fixtures and fittings in a balance sheet?

1. A.liquid capital
2. B.current assets
3. C.fixed assets
4. D.working capital

Governments impose import duties for the following reasons EXCEPT

1. A.to raise revenue for other services
2. B.to act as a retaliatory measure against other governments
3. C.to discourage the redistribution of income at home
4. D.to protect home industries from external competition.

Sole enterprise may flourish best in

1. A.a mining business
2. B.a retailing business
3. C.an oil exploration business
4. D.a car assembly business.

The use of coin-operated machines to sell goods is a form of

1. A.personal selling
2. B.retailing
3. C.wholesaling
4. D.mail-order selling.

What is the major function of the wholesaler?

1. A.buying from small-scale producers and selling to exporters
2. B.buying in bulk and selling in small quantities
3. C.granting of credit facilities to retailers
4. D.providing information to manufacturers on market situation.

The rate at which a country's exports exchange for its imports is called

1. A.balance of payments
2. B.balance of trade
3. C.terms of payment
4. D.terms of trade.

The difference between the total payments for imports and the receipts from exports within a given period is referred to as

1. A.balance of payments
2. B.balance of trade
3. C.comparative cost advantage
4. D.comparative advantage.

A pro forma invoice is NOT required when

1. A.quoting for the supply of goods
2. B.goods are sent on approval
3. C.dealing regularly with a customer
4. D.final prices are uncertain.

Which of the following statements is TRUE about sea transport?

1. A.all ships have specific routes to ply.
2. B.all ships must be insured at every journey
3. C.all ships are insured separately from the crew
4. D.all ships normally arrive at their destination with goods.

The postal organization which preceded the Nigerian Postal Service is

1. A.Post and Telecommunications
2. B.Post and Telephone
3. C.Post and Teleprinter
4. D.Post and Telegraph.

Goods discharged from ships on which import duties have not been paid are kept in the

1. A.ordinary warehouse
2. B.public warehouse
3. C.private warehouse
4. D.bonded warehouse.

A sole proprietor insured his goods worth ₦200 000 for half the value. There was a fire incident in which goods valued ₦80 000 were destroyed. The value of compensation expected from the insurer is

1. A.₦40 000
2. B.₦80 000
3. C.₦100 000
4. D.₦200 000.

One of the effects of the devaluation of the Naira is that the

1. A.goods that can be imported with the naira have become cheaper
2. B.value of other currencies relative to the naira have become cheaper
3. C.goods that can be exported from Nigeria have become costlier
4. D.imports that can be bought with the naira have become costlier.

Drawing two parallel lines across a cheque means that it has to be paid into the account of the

1. A.payee
2. B.drawer
3. C.drawee
4. D.payer.

The financial institution established to boost Nigeria's trade with the rest of the world is called

1. A.Nigerian Deposit Insurance Corporation
2. B.Nigerian Economic Reconstruction Fund
3. C.Nigerian Industrial Development Bank
4. D.Nigerian Export-Import Bank.

Which of the following is both direct and indirect credit enterprise?

1. A.co-operative and thrift society
2. B.retail co-operative society
3. C.consumer co-operative society
4. D.wholesaler co-operative society.

The business in the stock exchange is characterized essentially by

1. A.dealing
2. B.brokerage
3. C.speculations
4. D.transactions.

The Second-Tier Securities Market is

1. A.an appendage to the Nigerian Stock Exchange
2. B.a member of the Nigerian Stock Exchange
3. C.meant for the shares of the quoted private companies
4. D.a regulating arm of the Nigerian Stock Exchange.

The elements of the marketing mix are

1. A.product, promotion, place and price
2. B.personal selling, advertising and research
3. C.promotion, production, place and price
4. D.procurement, price, product and place.

Which of the following items has the shortest effect on the consumer?

1. A.fashion
2. B.innovation
3. C.fad
4. D.attribute.

Which of the following is a form of sales promotion?

1. A.advertising on radio
2. B.offering free samples
3. C.distributing printed materials
4. D.advertising on television.

One advantage of personal selling over all other elements of promotion is that

1. A.it can provide instant feedback
2. B.it is very cheap in terms of cost per contact
3. C.it does not need to use mass media
4. D.sales people are well trained.

Which of the following must be present in an agency by agreement?

1. A.intentions
2. B.will
3. C.consent
4. D.authority.

An agreement to sell is distinguishable from a sale because in the former, the transfer of goods is

1. A.not anticipated
2. B.not discussed
3. C.deferred
4. D.immediate.

Mr. Amusa says to Mr. Bello 'I will sell you this hat for ₦30'. And Mr. Bello replied 'I will pay ₦29'. The contract is

1. A.an offer and acceptance
2. B.an implied contract
3. C.a complete simple contract
4. D.an offer but no acceptance.

Nationalization of an industry means that its ownership becomes that of

1. A.government
2. B.shareholders
3. C.taxpayers
4. D.indigenes.

The Comprehensive Import Supervision Scheme was set up by the federal government in order to

1. A.reverse Nigeria's unfavourable balance of trade
2. B.promote fair trade between Nigeria and other countries
3. C.counteract all fraudulent business deals of Nigerians with other nationals
4. D.ensue that imports into Nigeria are of the correct quality, value and quantity.

Which of the following has powers to order withdrawal of a particular food item from circulation?

1. A.Standard Organization of Nigeria
2. B.Federal High Courts in Nigeria
3. C.Food and Drugs Department of the Federal Ministry of Health.
4. D.Local government health inspectors.

Which of the following maxims negates the principle of collective bargaining?

1. A.individual employees have weak bargaining base
2. B.individual employees attain strength when they come together in a union
3. C.only members of the union can benefit from agreements negotiated by the union
4. D.collective bargaining covers the vast majority of employees, whether union members or not.

NACCIMA stands for

1. A.Nigerian-American Centre for Culture, Industries, Mines and Arts
2. B.Nigerian Association for Culture, Civics, Industries, Minerals and Arts
3. C.National Agency for Culture, Civilization, Investments, Manufacturing and Agriculture
4. D.Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture.

For the establishment of a powerful consumers' association in Nigeria to exist, there must be

1. A.financial and moral support from the public
2. B.honest and committed leadership
3. C.allocation of goods from the producers
4. D.freedom from external influence.

Which of the following is the most important business resource?

1. A.money
2. B.management
3. C.materials
4. D.manpower.

The harmonious relationship among the various units in an organization is ensured through

1. A.co-ordination
2. B.motivation
3. C.planning
4. D.leadership.

The principle of span of control stipulates that

1. A.an employee should report to only one superior
2. B.managers must demand accountability from their subordinates
3. C.resources have to be economized within the various divisions
4. D.the number of employees reporting to one superior should be kept to a workable maximum.

Which of the following makes other functions of business its appendages?

1. A.production
2. B.marketing
3. C.finance
4. D.personnel.

The use of computers in modern banking industry is a reflection of

1. A.competitive development
2. B.scientific development
3. C.economic development
4. D.technological development.

When an oil exploring and mining company builds a health centre in one of the communities where it operates, such a company is

1. A.currying favour from local people
2. B.finding a way to spend excess profits
3. C.fulfilling part of its social responsibility
4. D.investing its idle funds.

The West African Clearing House became legally operational on

1. A.1st July, 1976
2. B.25th June, 1975
3. C.14th March, 1975
4. D.3rd May, 1974.

The Lake Chad Basin Commission was founded to enable member states

1. A.expand the volume of water in the lake for fishing activity
2. B.increase navigational activities on the lake
3. C.dam the lake for electricity and agricultural purposes
4. D.co-ordinate their efforts in managing the use of the lake's resources