JAMB Commerce 2014 past questions and answers

Cooperation and friendliness are enhanced among nations through interdependence necessitated by

1. A.tourism.
2. B.commerce.
3. C.agriculture.
4. D.socio-cultural activities.

One of the products of an extractive industry is

1. A.an airplane.
2. B.an iron ore.
3. C.a shoe.
4. D.a textile material.

The payment for direct service is usually made by the

1. A.local authority.
2. B.community.
3. C.government.
4. D.individual.

An important feature of land is that, it

1. A.has an elastic supply.
2. B.is an active factor of production.
3. C.is heterogeneous in nature.
4. D.is subject to returns to scale.

One of the major determinants of the volume of production is

1. A.the market size.
2. B.the availability of banks.
3. C.sex distribution.
4. D.government policy.

Mrs. Jones who lives in the riverine community of Rivers State makes her living through crabbing and fishing. This type of occupation she is in is

1. A.commercial.
2. B.manufacturing.
3. C.service.
4. D.extractive.

To eliminate middlemen, there should be a retail outlet such as

1. A.producer co-operative.
2. B.consumer co-operative.
3. C.multiple shop.
4. D.departmental store.

The document issued by a port authority for goods deposited is a

1. A.bill of lading.
2. B.bill of sight.
3. C.consular invoice.
4. D.warehouse warrant.

The document submitted to the customs authority when full description of imported goods is not provided is

1. A.a bill of sight.
2. B.an invoice.
3. C.an indent.
4. D.a bill of entry.

The role of customs and exercise authority includes the

1. A.control of the flow of goods in and out of the country.
2. B.control of security agents within and out of the borders.
3. C.provision of dockyards for ship repairs and maintenance.
4. D.provision of transport system to facilitate imports and exports.

A document recording the transactions of an organization with its customer for a specified period which normally shows the indebtedness of one to the other is a

1. A.statement of account.
2. B.consular invoice.
3. C.proforma invoice.
4. D.statement of affairs.

In response to an inquiry from a customer, a wholesaler is expected to send back

1. A.a consignment note.
2. B.an order.
3. C.a quotation.
4. D.an advice note.

A carton of noodles valued at N2,000 was invoiced at N200 only. The accounting procedure to correct this error is to issue

1. A.an invoice for N200.
2. B.a debit note for N2,000.
3. C.a credit note for N1,800.
4. D.a debit note for N1,800.

Endowment policy in insurance business is an aspect of

1. A.accident insurance policy.
2. B.fidelity guarantee insurance policy.
3. C.motor vehicle insurance policy.
4. D.life assurance policy.

Insurance against burglary is an example of

1. A.indemnity insurance.
2. B.fidelity guarantee insurance.
3. C.non-insurable risk.
4. D.non-indemnity insurance.

The principle which requires the insurance company to disclose to the proposer all material facts of the risk to be covered is

1. A.subrogation.
2. B.proximate cause.
3. C.uberrimae fidei.
4. D.contribution.

The insurance principle that allows an insurance company to take over the rights of the insured once he has been compensated is

1. A.indemnity.
2. B.proximate cause.
3. C.utmost good faith.
4. D.subrogation.

A trader who experienced loss through fire can be restored by

1. A.an insurance company.
2. B.a trade association.
3. C.the bank.
4. D.an advertising agency.

The distribution of petroleum products in Nigeria is through

1. A.rail.
2. B.road.
3. C.sea.
4. D.air.

The deliberate effort geared towards discarding some cargoes in order to lighten the vessel is

1. A.caveat emptor.
2. B.uberrimae fidei.
3. C.demurrage.
4. D.jettison.

The major aim of establishing a public corporation is to

1. A.establish a monopoly.
2. B.provide essential services.
3. C.provide employment opportunities.
4. D.encourage specialization.

The coming together of a manufacturing business with a firm that markets its products is

1. A.backward integration.
2. B.a consortium.
3. C.forward integration.
4. D.a syndicate.

An association of voluntary organizations that work together for a common aim while retaining their independence is a

1. A.syndicate.
2. B.merger.
3. C.cartel.
4. D.consortium.

The document that explains the types of shares available for sale to the public is

1. A.a prospectus.
2. B.an invoice.
3. C.an open indent.
4. D.a closed indent.

A loan to a customer with a cheque account at a bank in which the account is allowed to go into debit is

1. A.overdraft.
2. B.advance.
3. C.interest.
4. D.commission.

Part payments made on allotted shares by subscribers is usually the

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

The net profit is the excess of gross profit and sources of income over all the expenses. This implies that net profit is

1. A.the difference between gross profit and gross trade expenses.
2. B.the difference between gross profit and net sales.
3. C.sales less cost of sales including sales returns.
4. D.opening stock add purchases less closing stock.

A form of money with face value which is greater than the value of the metal content is

1. A.legal tender.
2. B.bank notes.
3. C.token money.
4. D.commodity money.

An agent who transacts business with the broker in the stock exchange is a

1. A.stag.
2. B.bull.
3. C.del credere.
4. D.jobber.

A document sent by a broker to his client to confirm a purchase of sale made on his behalf is

1. A.delivery note.
2. B.consignment note.
3. C.transfer form.
4. D.contract note.

Cum div differs from ex div in that, the latter

1. A.entitles the purchaser to receive a company's current dividend.
2. B.entitles the vendor to receive a company's current dividend.
3. C.confirms a purchase or sale made on behalf of a shareholder.
4. D.is a document used to transfer ownership of shares.

The payment made by a speculator to the buyer when he is unable to deliver stocks on the agreed date is

1. A.arbitrage.
2. B.franco.
3. C.contango.
4. D.backwardation.

Which of the following regulates and controls the activities in the Nigeria Stock Exchange?

1. A.BPE.
2. B.SEC.
3. C.NDIC.
4. D.CBN.

The principle of management that emphasizes on the number of subordinates under the direct supervision of a manager is

1. A.span of control.
2. B.unity of command.
3. C.scalar chain.
4. D.unity of direction.

Marketing differs from selling in that, the latter only creates

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

A business that focuses attention on the quality of the goods produced by precisely knowing what the consumers desire is said to be operating the

1. A.product mix.
2. B.promotion mix.
3. C.marketing concept.
4. D.product orientation.

Which of the following aspects of marketing stimulates buying by providing free gifts?

1. A.personal selling.
2. B.sales promotion.
3. C.advertising.
4. D.publicity.

Mr. Taiwo entered into a contract to let a car to Mr. Bunmi for his wedding for two days. However, the car had an accident before the first day. Mr. Bunmi attempted to claim damages but failed. This implies the contract was terminated by

1. A.bankruptcy.
2. B.frustration.
3. C.breach.
4. D.lapse of time.

Hire purchase is advantageous to the seller in that

1. A.it elevates his living standard.
2. B.his turnover will increase.
3. C.people pay instalmentally.
4. D.it enhances high level of patronage.

The difference between a factor and a broker is that the former

1. A.is licensed to sell goods on auction.
2. B.has a lien on the goods he possesses.
3. C.is not in possession of the goods.
4. D.cannot sell in his own name.

A contract which is devoid of legal effect is

1. A.void contract.
2. B.unenforceable contract.
3. C.voidable contract.
4. D.valid contract.

The three functional units of a modern computer are

1. A.input, processor and output units.
2. B.processor, FOTRAN and output units.
3. C.black box, output and input units.
4. D.bASIC, COBOL and output units.

A Digital Versatile Disk is an example of a

1. A.transmission control protocol.
2. B.microprocessor.
3. C.file transfer protocol.
4. D.computer storage device.

The social responsibility factor of an organization is geared towards

1. A.contributing to the sustenance and development of its host community
2. B.operating without disrupting the very essence of the environment
3. C.tackling the socio-economic problems of the state
4. D.meeting the needs and demands of the shareholders.