JAMB Commerce 2000 past questions and answers

The major factors that facilitate merchandising are

1. A.communication, advertising and banking
2. B.trading, warehousing and production
3. C.management, insurance and advertising
4. D.banking, insurance and transportation.

Production involves

1. A.making goods available where and when needed
2. B.changing the form of goods, moving and making them available as needed
3. C.the manufacturing of goods and provision of services
4. D.the assembling of all necessary parts to produce a finished product.

The application of division of labour should generally bring about

1. A.increase in the quantity of goods and services
2. B.increase in the variety of goods and services
3. C.cheapness of goods and services
4. D.cost efficiency in the production of goods and services.

The term Plc implies that the shares are available

1. A.to the public at the company
2. B.privately on the stock exchange
3. C.publicly on the stock exchange
4. D.publicly in commercial banks.

Which of these is both merit and demerit in partnership?

1. A.The number of partners
2. B.Its unlimited nature
3. C.The bearing of risk
4. D.The withdrawal of a major partner.

The measure of independence available to the individual business units that come together is the main difference between

1. A.vertical and horizontal integration
2. B.mergers and acquisitions
3. C.consortium and amalgamation
4. D.trust and cartel.

Government policies relating to the establishment and operations of businesses are targeted at

1. A.increasing the profits of business owners
2. B.the general improvement of the economy
3. C.even spread of facilities and employment
4. D.diversification and expansion of businesses.

On liquidation of a public limited liability company, the residual owners are the

1. A.creditors
2. B.ordinary shareholders
3. C.preference shareholders
4. D.debenture holders.

Bank overdraft as a short term source of fund is

1. A.an overdrawn account
2. B.granted to a newly opened account
3. C.repayable after more than a year
4. D.a current liability.

Use the information below to answer questions 10 and 11.
Amina Enterprises Balance Sheet as at 30/3/99
Liabilities (₦): Share capital 400,000; Reserve fund 200,000; Creditors 110,000; Bills payable 50,000; Undistributed profits 45,000; Wages due 5,000
Assets (₦): Land 200,000; Buildings 150,000; Machinery 200,000; Implements 20,000; Office fittings 5,000; Raw materials 100,000; Finished goods 50,000; Debtors 20,000; Bills receiveable 15,000; Cash at bank 45,000; Cash at hand 5,000
What is the total fixed capital?

1. A.₦550,000
2. B.₦570,000
3. C.₦575,000
4. D.₦675,000.

Use the information below to answer questions 10 and 11.
Amina Enterprises Balance Sheet as at 30/3/99
Liabilities (₦): Share capital 400,000; Reserve fund 200,000; Creditors 110,000; Bills payable 50,000; Undistributed profits 45,000; Wages due 5,000
Assets (₦): Land 200,000; Buildings 150,000; Machinery 200,000; Implements 20,000; Office fittings 5,000; Raw materials 100,000; Finished goods 50,000; Debtors 20,000; Bills receiveable 15,000; Cash at bank 45,000; Cash at hand 5,000
Determine the circulating capital

1. A.₦250,000
2. B.₦245,000
3. C.₦235,000
4. D.₦225,000

The share capital value that forms part of the balance sheet total is the

1. A.paid-up share capital
2. B.called-up share capital
3. C.authorized share capital
4. D.issued share capital.

The main factors militating against the rapid growth of trade in Nigeria are

1. A.inadequate transportation network and huge capital outlay
2. B.lack of motivation and government attitude towards trade
3. C.lack of good transportation network and insecurity of investments
4. D.huge capital outlay and government attitude to trade.

The current trends in retailing competition in Nigeria are

1. A.advertising and sales promotion strategies
2. B.branding, enterprising and differentiation of goods and services
3. C.self-service, after-sales services and branding strategies
4. D.after-sales services and sales promotion strategies.

The function of a merchant wholesaler is to

1. A.buy in bulk, store and sell to retailers as desired
2. B.possess title to the goods, store and sell to retailers
3. C.bring buyers and sellers together
4. D.find markets for producers' finished goods.

An invoice can be described as a

1. A.contractual agreement for the sale of goods
2. B.document specifying quantity, description, prices and total value of purchases
3. C.receipt containing necessary information about the goods
4. D.letter specifying the contractual sales of goods between two parties.

Ocean liners are subdivided into

1. A.passenger liners and cargo liners
2. B.coastal liners and cargo liners
3. C.cargo liners and tramp liners
4. D.passenger liners and tramp liners.

Tourists with no fixed address in a town may receive their letters from the post office through a

1. A.recorded delivery
2. B.poste restante
3. C.parcel post
4. D.postmaster.

The insurance principle that requires full disclosure of information on the insured is known as

1. A.indemnity
2. B.uberrimae fidei
3. C.subrogation
4. D.caveat emptor.

Mr. Olatunde took up a fire insurance on a property valued at ₦1000 and the amount insured is ₦800. The property caught fire causing a loss of ₦400. If the insurance was taken with the clause 'with average', what is the amount to be paid by the insurance company?

1. A.₦320
2. B.₦420
3. C.₦460
4. D.₦560.

The Central Bank differs from commercial banks because it

1. A.renders service to customers
2. B.carries out foreign exchange transactions
3. C.issues currencies
4. D.discounts bills.

A bank form used to transfer money from personal to creditor's account is called

1. A.debit transfer form
2. B.credit transfer form
3. C.customer transfer form
4. D.bank transfer form.

The computer using linear integrated circuit technology coupled with quantification of data in terms of length and distance is known as

1. A.digital computer
2. B.analogue computer
3. C.mainframe computer
4. D.hybrid computer.

A printer that burns the print image onto the photosensitive drum is called

1. A.dot matrix printer
2. B.daisy wheel printer
3. C.laser printer
4. D.thermal printer.

A console is a device used in

1. A.moving an indicator on the screen
2. B.communicating between operator and programme
3. C.holding magnetic tape reel
4. D.forming characters by heating sensitive ribbon.

A form of money that has gone out of use is

1. A.paper money
2. B.bank money
3. C.commodity money
4. D.foreign money.

The major condition for obtaining loan in thrift, credit and loans cooperative societies is

1. A.provision of collateral security
2. B.a high level of education
3. C.possession of a large business
4. D.an approved project plan.

The Stock Exchange helps to provide capital for industrial projects because it

1. A.determines value of shares, stocks and other securities
2. B.assists government in implementing its monetary policies
3. C.assists companies to change their securities into cash
4. D.renders agency services to organisations and governments.

A shortcoming of the Second-tier Foreign Exchange Market in Nigeria is that it

1. A.serves as a mechanism for evaluating an unrealistic exchange rate for the naira
2. B.creates unhealthy competition amongst users of foreign exchange
3. C.contributes to destabilizing national resource allocation
4. D.contributes to flooding the market with foreign essential commodities.

The chart above represents the

1. A.product mix relationship
2. B.marketing mix relationship
3. C.promotion mix relationship
4. D.advertising mix relationship.

A group of specialized functions of marketing is

1. A.buying, selling, storing and information
2. B.buying, selling, advertising and packaging
3. C.buying, selling, labelling and promotion
4. D.buying, selling, skimming and pricing.

The type of advertising that seeks to persuade consumers to buy a particular product is

1. A.informative advertising
2. B.competitive advertising
3. C.persuasive advertising
4. D.mass and specific advertising.

The practice whereby soft drink manufacturers give away caps, bags and other items when consumers buy their product is a form of

1. A.marketing strategy
2. B.publicity
3. C.advertising
4. D.sales promotion.

The most important advantage of personal selling is that it

1. A.allows sellers to perceive buyers' needs
2. B.allows sellers to sell their goods quickly
3. C.takes place easily on the highways
4. D.takes place without the permission of government.

The role of public relations is principally to

1. A.sustain good relationship
2. B.create good image
3. C.carry out publicity
4. D.advertise a firm's products.

The basic elements of a valid contract are

1. A.offer, acceptance, consideration and witness
2. B.offer, intention, acceptance and legality
3. C.offer, acceptance, intention, capacity and legality
4. D.offer, acceptance, capacity, legality and consideration.

A bus driver operating between Lagos and Jos pledged the owner's credit in Benin in order to have the engine repaired and the bill sent to the owner. This is a case of

1. A.del credere agency
2. B.agency by necessity
3. C.agency by ratification
4. D.agency by estoppel.

After registration, a certificate of trading is usually issued to a

1. A.partnershp
2. B.public company
3. C.private company
4. D.sole proprietorship.

An aspect of the law which allows an exclusive right for a limited number of years is a

1. A.copyright
2. B.trade mark
3. C.ratification
4. D.patent.

The first known legislation to protect consumer rights in Nigeria is the

1. A.Usury Laws
2. B.Hire Purchase Act
3. C.Sale of Goods Act
4. D.Food and Drugs Act.

The main difference between nationalization and indigenization is in terms of

1. A.shareholding
2. B.profit
3. C.technology
4. D.efficiency.

The primary objectives of a trade association is to

1. A.undertake research work on behalf of members
2. B.establish easy link with government
3. C.exchange information and negotiate as a preasure group
4. D.operate as a group against other groups.

A chamber of commerce is an association made up of

1. A.entrepreneurs
2. B.manufacturers
3. C.merchants
4. D.importers.

The composite functions of management are

1. A.planning, supervising, communicating
2. B.planning, controlling, organising and directing
3. C.coordinating, supervising, staffing and communicating
4. D.directing, supervising, motivating and controlling.

The organizational structure above represents

1. A.line and functional structure
2. B.line and staff structure
3. C.functional structure
4. D.line structure.

The three components of staffing are

1. A.recruitment, selection and placement
2. B.recruitment, interview and appointment
3. C.recruitment, test and placement
4. D.recruitment, procurement and appointment

The legal aspect of business is designed to

1. A.protect business organizations and consumers
2. B.safeguard consumers from undue business practices
3. C.protect infant industries from collapse
4. D.encourage free exchanges among businesses.

In an organisation, civic consideration arises from

1. A.the profit derived from the environment
2. B.its operations within the environment
3. C.its social negative impacts on the community
4. D.the fact that it is registered in that locality

The instrument establishing the Economic Community of West African States in 1975 is

1. A.a decree
2. B.an act
3. C.a treaty
4. D.constitution

One of the functions of the Niger Basin Commission is to

1. A.ensure equal treatment of African nations
2. B.foster closer co-operation among West African nations
3. C.map out regulations that will guide all forms of navigation
4. D.guarantee freedom of navigation for all West African nations.