JAMB Commerce 1999 past questions and answers

The conversion of raw materials into finished products creates

1. A.marginal utility
2. B.place utility
3. C.form utility
4. D.time utility.

Commerce makes it possible for man to live in a

1. A.complex and organized society
2. B.society characterized by subsistence
3. C.society characterized by dependency
4. D.simple and organized society.

Use the information below to answer questions 3 and 4.
Aboki Plc became insolvent and decided to wind up to meet the legitimate claims of its creditors. Babalawee was called in to manage the dissolution.
After paying the debts of Aboki Plc, the balance goes to

1. A.Aboki Plc
2. B.Babalawee
3. C.shareholders
4. D.creditors.

Use the information below to answer questions 3 and 4.
Aboki Plc became insolvent and decided to wind up to meet the legitimate claims of its creditors. Babalawee was called in to manage the dissolution.
Babalawee is

1. A.a claimant
2. B.a manager
3. C.an assessor
4. D.a receiver.

A common requirement for public and private limited companies in Nigeria is that

1. A.a shareholder cannot transfer his shares to someone else without permission from other shareholders
2. B.their annual accounts are made available to the Corporate Affairs Commission
3. C.shares can be offered for sale on the stock exchange
4. D.shares can be offered for sale through an issuing house.

The primary motive behind an individual engaging in production is to

1. A.fully engage all the factors of production
2. B.make available goods and services
3. C.meet projected profits
4. D.meet basic human needs.

Musa obtains wool from his sheep, spins and transforms it into cloth which he sells to consumers. This is a form of

1. A.vertical integration
2. B.horizontal integration
3. C.forward integration
4. D.backward integration.

A company has an authorized capital of 40 million shares at ₦1 per share, out of which 32 million shares have been issued and fully paid-up. The remaining 8 million shares have

1. A.been issued but have not been paid-up
2. B.been applied for but not issued
3. C.not been paid-up
4. D.not yet been issued.

An abridged version of a company's income statement for 1993 contains the following information:
(₦m)
Turnover 286.5
Cost of goods sold 147.5
Overhead and other expenses 85.5
Taxes due for the year 26.9
What was the company's profit before tax for 1993?

1. A.₦26.9 million.
2. B.₦53.5 million.
3. C.₦139.2 million.
4. D.₦286.5 million.

A business whose owners enjoy loan facilities on the basis of personal goodwill is a

1. A.commercial bank
2. B.thrift society
3. C.co-operative society
4. D.community bank.

Which of the following is not a veritable source of funds to a public limited liability company?

1. A.government financial grants
2. B.advances and loans from banks
3. C.internally generated funds
4. D.funds from the sale of shares.

Use the document below to answer questions 12 and 13.
₦200,000.00 Liverpool, U.K, June 2, 1995.
Three months after date, pay to or to the order of Mr. Okon Etim Esin
Two hundred thousand ..................... Naira
Payable at First Bank Plc,
Lagos
No. 5 Due Sept. 2, 1995
Imo Edit Enoh
Liverpool.
Okon Etim Esin is the

1. A.debtor
2. B.creditor
3. C.exporter
4. D.importer.

Use the document below to answer questions 12 and 13.
₦200,000.00 Liverpool, U.K, June 2, 1995.
Three months after date, pay to or to the order of Mr. Okon Etim Esin
Two hundred thousand ..................... Naira
Payable at First Bank Plc,
Lagos
No. 5 Due Sept. 2, 1995
Imo Edit Enoh
Liverpool.
The document represents a

1. A.bill of exchange
2. B.cheque
3. C.money order
4. D.promissory note.

The term '5 Net 7' on an invoice means that

1. A.5% discount will be allowed on the price charged if payment is made within seven days
2. B.5% discount will be allowed on the price charged if payment is made after seven days
3. C.5% surcharge will be made unless payment is made within seven days
4. D.5% discount will be allowed on the price charged only if the goods are bought within seven days.

Kabir receives two quotations. Ade quotes ₦100 less 20% trade discount and 20% cash discount, while Benson quotes ₦100 less 30% trade discount and 10% cash discount. If Kabir wants to take advantage of trade and cash discount, then

1. A.the materials should be supplied by Ade
2. B.the materials should be supplied by both of them
3. C.the materials should be supplied by Benson
4. D.Benson should be asked to reduce his trade discount.

A company which issues a promissory note in lieu of payment for goods purchased

1. A.can refuse to pay on due date since it is only a promise
2. B.is bound to redeem the note for cash on due date
3. C.is not bound to renew the note before payment
4. D.can return the goods purchased and refuse to pay.

Kamaldeen is a seller in a hire-purchase agreement with Emeka. By law, Kamaldeen cannot recover the hire purchased goods. This is an instance of a restriction on

1. A.Emeka's right to terminate the agreement
2. B.Kamaldeen's right to re-hire the goods
3. C.Emeka's right to breach the agreement
4. D.Kamaldeen's right to terminate the agreement.

The main documents sent to an importer of goods by the exporter are

1. A.invoice, consular invoice, certificate of origin, freight note, indent and insurance policy
2. B.indent, bill of lading, certificate of origin, invoice and bill of exchange
3. C.certificate of origin, bill of exchange, invoice, insurance policy, indent and bill of lading
4. D.bill of lading, invoice, insurance policy, consular invoice, certificate of origin and bill of exchange.

Which of the following documents permits an importer to inspect his goods before the arrival of the bill of lading?

1. A.Bill of sight
2. B.Import invoice
3. C.Consular invoice
4. D.Bill of exchange.

The overriding advantage of home trade over foreign trade is

1. A.accessibility of seller to buyer
2. B.absence of many documents
3. C.ease in language of transaction
4. D.ease in form of payment.

A distinction between Comprehensive Insurance and Third Party Insurance is that the latter covers damages

1. A.caused by the insured vehicle
2. B.to the insured vehicle
3. C.caused by the other vehicle
4. D.to the driver of the insured vehicle.

The rate at which a central bank discounts first class bills is called the

1. A.fixed rate
2. B.bill rate
3. C.bank rate
4. D.interest rate.

The principle of subrogation states that

1. A.an insured person should be indemnified to the tune of the amount insured
2. B.an insurance company can stand in place of the insured in dealing with third party
3. C.only a person who is likely to suffer loss should take out an insurance cover
4. D.there must be a close connection between the actual loss suffered and risk insured.

Tolu purchased goods from Yemisi and is to pay custom duties before collection. The goods are likely to be collected from

1. A.a manufacturer's warehouse
2. B.a bonded warehouse
3. C.an importer's warehouse
4. D.a wholesaler's warehouse.

The three major functional units which the modern computer has are

1. A.the input, the processor and the output units
2. B.the black box, output and input units
3. C.BASIC, COBOL and output units
4. D.BASIC, the processor and PASCAL.

I. Foreign investment II. Long-term lending III. Short-term lending IV. Foreign exchange reserve V. Short-term borrowing. Which combination of the above include capital account in international trade?

1. A.I, III and IV
2. B.II, III and IV
3. C.II and V
4. D.I and II.

The elimination of faults in a computer programme is called

1. A.console
2. B.debug
3. C.dump
4. D.loop.

Aliyu bought 100 shares at the stock market through a stockbroker. He was told the price of each share was ₦3 cum. div. This means that Aliyu

1. A.is entitled always to a cumulative dividend on the shares
2. B.is entitled to the next dividend accruing from the shares
3. C.will not be entitled to the next dividend due to the shares
4. D.still owes ₦3 on the shares which will be subtracted from the dividends.

The forum for the selling and buying of securities of small and medium companies is called,

1. A.Second Tier Foreign Exchange Market
2. B.Foreign Exchange Market
3. C.Securities and Exchange Commission
4. D.Second Tier Security Market.

A wholesale dealer in securities is known as a

1. A.stockbroker
2. B.speculator
3. C.jobber
4. D.stag.

Modern business philosophy emphasizes

1. A.quality products
2. B.customer satisfaction
3. C.sales volume
4. D.public relations.

The main role of advertising is to

1. A.convince prospective buyers to buy
2. B.show the actual shape, form and colour of the products
3. C.inform people where to obtain goods and services
4. D.capture the attention of people.

The concept of limiting the types, sizes and other characteristics of a product line without sacrificing utility or durability is called

1. A.simplification
2. B.standardization
3. C.specialization
4. D.satisficing.

The focal point of all marketing efforts is the

1. A.seller
2. B.profit
3. C.product
4. D.buyer.

Adigun displays goods of different makes on shelves in his supermarket. This is an example of

1. A.invitation to treat
2. B.offer to sell
3. C.offer to purchase
4. D.invitation to sell.

The process of bringing a company under exclusive state ownership and control is known as

1. A.nationalization
2. B.commercialization
3. C.indigenization
4. D.privatization.

Q, acting as the agent of P, lawfully and reasonably incurs the amount of ₦350 as expenses. If Q comes to P for payment, this is an instance of P's duty to

1. A.remunerate Q
2. B.repay Q
3. C.indemnify Q
4. D.settle Q.

In a hire purchase agreement between Argungu Ltd and Maikudi, Argungu Ltd inserted the provision that it can enter Maikudi's premises at any time and remove the hired vehicle for any breach. This provision is

1. A.lawful to both
2. B.unlawful to both
3. C.beneficial to both
4. D.detrimental to both.

In every simple contract, the price which is paid to purchase a promise is called

1. A.offeree
2. B.acceptance
3. C.consideration
4. D.representation.

One major disadvantage of a cartel is that it

1. A.maximizes productive efficiency
2. B.brings the merging firms under control
3. C.maximizes profits from operation
4. D.eliminates competition and waste.

Staff position in an organization borders on

1. A.authority
2. B.advice
3. C.responsibility
4. D.control.

The line function in a typical manufacturing enterprise is normally performed by the

1. A.public relations department
2. B.estate or properties department
3. C.marketing department
4. D.legal department.

I. Money and machines II. Materials and money III. Market and Man IV. Materials and man. Which combination of the above are basic requirements as business resource?

1. A.I and II
2. B.II and III
3. C.I and IV
4. D.II and IV.

Under what management function would the motivation of employees fall?

1. A.Staffing
2. B.Controlling
3. C.Organizing
4. D.Directing.

The main thrust of government policy of evolving good business environment in Nigeria is the need

1. A.to attract local and foreign investors
2. B.for more export commodities
3. C.for consumer oriented products
4. D.to have viable local markets.

Which of these sets of external environmental factors affect a business operation?

1. A.Competition, industry and product
2. B.Competition, labour and political
3. C.Political, cultural and labour
4. D.Economic, social and legal.

The right of the public to protection against questionable products and marketing practices is

1. A.an economic aspect of the business
2. B.a social responsibility of the business
3. C.a legal aspect of the business
4. D.a political aspect of the business.

Which of the following group of countries are members of the Niger Basin Commission?

1. A.The Republic of Guinea, Burkina Faso and Nigeria
2. B.Ghana, Liberia and the Republic of Benin
3. C.Mali, Liberia and Nigeria
4. D.Ghana, Burkina Faso and Chad.

The proposed monetary integration within ECOWAS sub-region has the overriding benefit of

1. A.improved exchange
2. B.enhanced trade
3. C.enhanced development
4. D.improved relations.