47 questions. Try each one, then open the answer to check yourself and read the explanation.
The wealth of a nation depends on the volume of its
Answer: B (commercial activities)
The more trade and its aids flourish, the more goods and income a country produces and exchanges.
Which of the following can be used to differentiate skilled and unskilled labour?
Answer: A (Education and training)
Skilled workers have received special education or training; unskilled workers have not.
A doctor who attends to patients at home after his official duty is
Answer: B (a direct service worker)
When he treats patients privately and is paid by them, he gives personal (direct) services.
Manufacturing and constructive activities are classified under
Answer: C (secondary production)
Manufacturing and construction turn raw materials into finished goods, which is secondary production.
The rewards of rents, wages, interests and profits accrue from
Answer: C (land, labour, capital and entrepreneur respectively)
Land earns rent, labour earns wages, capital earns interest and the entrepreneur earns profit.
The factor of production that is subject to depreciation is
Answer: A (capital)
Capital goods such as machines wear out with use, so they depreciate.
Division of labour ultimately leads to
Answer: C (specialization)
Breaking work into separate tasks lets each worker concentrate on one task, which is specialisation.
A worker who processes rice is engaged in
Answer: D (manufacturing activity.)
Processing paddy into packaged rice changes its form, which is manufacturing.
After-sales service is a function usually rendered by
Answer: A (a retailer)
The retailer deals directly with the final consumer, so he provides services such as delivery, installation and repairs after a sale.
A trend in retailing which enables consumers to have free access to different products is
Answer: C (self-service)
In self-service shops customers pick goods from the shelves themselves.
The activity which entails buying of goods in bulk and selling in small quantities to retailers is
Answer: B (wholesaling)
A wholesaler buys in bulk from producers and breaks bulk for retailers.
The comparison of a country's visible and invisible exports and imports expressed in monetary term is
Answer: A (balance of payment)
Balance of trade covers goods only. Once services (invisibles) are included, the record is the balance of payments.
The document that gives an importer a freehand to obtain goods from any manufacturer is
Answer: C (an open indent)
An open indent leaves the agent free to buy from any supplier; a closed indent names the manufacturer.
Entrepot trade usually occurs in
Answer: C (importing goods to be re-exported)
Entrepot trade is importing goods in order to re-export them to other countries.
The document issued to a port authority when goods are deposited is a
Answer: D (dock warrant.)
A dock warrant is the receipt for goods stored in the dock warehouse and gives title to them.
The details of the goods required by the purchaser is outlined in
Answer: B (an indent)
An indent is an order from an importer that describes the goods he wants: quantity, quality, price and delivery.
Selling goods in foreign countries at prices below their marginal cost is
Answer: A (dumping)
Dumping is selling exports abroad at prices below their cost or home price.
A process of creating more market for a product is through
Answer: C (advertising)
Advertising informs and persuades more people to buy, which widens the market for a product.
One of the merits of television as a medium of advertising is that it
Answer: C (has more sensory stimulation)
Television combines sound, pictures and movement, so it appeals to more of the senses.
The best mode of ensuring that items posted get to the named addressee is through
Answer: B (registered mail)
Registered mail is signed for at each stage and compensation is paid if it is lost.
A businessman who undertakes the hull insurance policy is aiming at
Answer: D (covering damages to the body of the ship.)
The hull is the body of the ship, so hull insurance covers damage to the ship.
An agent who brings a customer into business contact with his principal is known as
Answer: D (a broker.)
A broker brings buyers and sellers together for a commission without holding the goods.
A major hindrance to tourism growth in Nigeria is
Answer: B (lack of tourism master plan)
Without a master plan, tourism sites and services are developed in a scattered, poorly funded way.
The warehouse that is owned and controlled by the government is a
Answer: B (public warehouse)
Public warehouses are owned by government (or its agencies) and rented out to users.
One of the main features of a partnership is
Answer: B (lack of corporate existence)
An ordinary partnership is not a separate legal person from its partners.
An arrangement by independent firms to share the market of their products on quota basis is referred to as
Answer: D (cartel.)
A cartel is an association of independent firms that fix output quotas or prices.
An illegal arrangement by manufacturers to control the price or condition of sale of a product is
Answer: A (ring)
A ring is a secret agreement among sellers to fix prices or terms of sale, which the law forbids.
A public company with an authorized capital of N60,000, issued 36,000 shares at 150k each. What is its capital?
Answer: C (₦54,000)
Capital raised = 36 000 × ₦1.50 = ₦54 000.
One of the functions of NACCIMA is
Answer: C (disseminating information to members on matters relating to tariffs)
NACCIMA collects and passes on trade information, such as tariffs and trade policy, to its member chambers.
A characteristic of money which ensures that its value is not lost is
Answer: D (relative scarcity.)
If money were plentiful it would lose value; being relatively scarce keeps its value.
A pre-requisite for admission into the Second-Tier Securities Market is for a company to
Answer: D (make 10% of its equity share available to the public for subscription.)
A company on the Second-Tier Securities Market needs to offer at least 10% of its equity to the public.
Which of the following is a matter of personal preference on the part of a superior officer?
Answer: C (Delegation of authority)
A superior chooses whether and how much authority to hand to subordinates; the others are fixed principles.
The conversion of raw materials into finished goods leads to the creation of
Answer: A (form utility)
Changing the form of materials makes them more useful: form utility.
The main concern of marketing concept is to
Answer: B (identify consumer needs and satisfy them)
The marketing concept finds out what consumers want and produces to satisfy it.
The best pricing strategy for a company that produces warm clothing is
Answer: D (product line pricing.)
A firm making a range of warm clothes sets different price levels for the items in its line (product line pricing).
The deliberate and sustained efforts of an organization towards the creation of goodwill for its products and services is through
Answer: A (public relations)
Public relations is the planned, continuous effort to build goodwill with the public.
The label on a product such as 'pampers' is a type of
Answer: A (trademark)
'Pampers' is a registered name that identifies one maker's product, i.e. a trademark.
An opportunity to reject a binding contract at will by a third party is said to be a
Answer: C (voidable contract)
A voidable contract is binding until the party who has the right chooses to reject it.
An agency contract must involve
Answer: D (a principal and an agent.)
Agency is the relationship in which an agent acts for a principal.
The difference between trademark and patent right is that the latter
Answer: C (confers monopoly on a product)
A patent gives the inventor the sole right to make and sell his invention for some years, a legal monopoly.
Which of the following is a function of consumerism?
Answer: A (Protecting consumers' rights)
Consumerism is the movement that protects the rights and interests of consumers.
A printed copy of processed information from the computer is the
Answer: D (hard copy.)
Output printed on paper is a hard copy; output on screen or disk is a soft copy.
The central working system of a computer used for data processing is the
Answer: A (memory unit)
The CPU with its memory unit is the central system where data is held and processed; the monitor, floppy drive and hard drive are peripherals.
The major problem confronting Cyber Cafe operators is
Answer: C (high operating costs)
Cyber cafés pay a lot for power (generators), bandwidth and equipment, so high running costs are their major problem.
A device that enables the downloading of information from the internet is the
Answer: C (modem)
A modem connects the computer to the internet so that data can be downloaded.
In e-banking, ATM means
Answer: D (Automated Teller Machine.)
ATM stands for Automated Teller Machine.
One way by which a business can discharge its social responsibility to its community is to
Answer: D (build public health centres.)
Health centres benefit the whole community, not just the firm's staff or customers.