Commerce past questions: NECO SSCE 2003

50 objective questions, with answers. Free to read and practise.

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50 questions, one at a time, marked as you go or at the end. No account needed.

1.
......is a letter sent to the suppliers requesting details of goods offered for sale
1. A.An Invoice
2. B.Letter of enquiry
3. C.Purchase order
4. D.Requisition
5. E.Quotation
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Answer: B Letter of enquiry
2.
A cheque is not a legal tender because it is
1. A.not mandatory to a creditor to accept it
2. B.not negotiable
3. C.transferable
4. D.only a representation of money
5. E.should be paid into a bank account
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Answer: A not mandatory to a creditor to accept it
3.
A discount that is given to middlemen in order to make good profit is called .......... discount.
1. A.cash
2. B.fixed
3. C.quant
4. D.seasonal
5. E.trade
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Answer: E trade
4.
A document which can be used for both internal and external trade is
1. A.bill of exchange
2. B.GIRO
3. C.I.O.U
4. D.portal orders
5. E.promising note
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Answer: A bill of exchange
5.
A form of business unit in which members are given patronage allowance is
1. A.co-operative society
2. B.joint stock company
3. C.public corporation
4. D.partnership
5. E.sole proprietorship
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Answer: A co-operative society
6.
A large rental organization with a number of sections selling different goods in the same building is called a ....
1. A.chain store
2. B.departmental store
3. C.multiple shop
4. D.self service shop
5. E.Supermarket
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Answer: B departmental store
7.
A public limited company can borrow from the public to increase its capital by
1. A.debentures
2. B.mortgage
3. C.share
4. D.stocks
5. E.treasury bills
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Answer: A debentures
8.
A share ducted "Cum div", means that the dividend for the current year will be paid to the
1. A.buyer of the shares
2. B.broker of the shares
3. C.jobber of the shares
4. D.seller of the shares
5. E.stock exchange authority
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Answer: A buyer of the shares
9.
Advertising could be used to achieve all the following EXCEPT
1. A.building primary demand
2. B.creating brand loyalty
3. C.creating employee loyalty
4. D.enhancing turn-over
5. E.increasing market share
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Answer: C creating employee loyalty
10.
All the following are members of small-scale retailing EXCEPT
1. A.chain stores
2. B.itinerant trade
3. C.kiosks
4. D.mobile shops
5. E.stall holders
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Answer: A chain stores
11.
Any member of the public who wants to buy shares in the stock market will first of all meet a/an
1. A.agent
2. B.broker
3. C.jobber
4. D.seller
5. E.share holder
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Answer: B broker
12.
Combination of methods used by a firm for marketing its product is known as .......
1. A.marketing concept
2. B.marketing mix
3. C.market research
4. D.market segmentation
5. E.market share
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Answer: B marketing mix
13.
Commerce refers to
1. A.buying and selling of goods at home
2. B.buying and selling of goods and services at home
3. C.importation and exportation of goods
4. D.importation and exportation of goods and services
5. E.trade and all of services which assist trade
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Answer: E trade and all of services which assist trade
14.
For a contract to be valid, there must be
1. A.drawee and drawer
2. B.insured and insurer
3. C.lessor and lessee
4. D.offer and acceptance
5. E.principal and agent
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Answer: D offer and acceptance
15.
One of the barriers to foreign trade is the presence of
1. A.difference in goods and services
2. B.different means of transportation
3. C.many society personnel
4. D.tariffs on goods and services
5. E.various means of production
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Answer: D tariffs on goods and services
16.
Organization of a wholesale warehouse in a typical company consist of the following EXCEPT ....... department.
1. A.finance
2. B.management and administration
3. C.publicity
4. D.production
5. E.packing and dispatch
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Answer: D production
17.
Organizational chart is a diagram showing the
1. A.flow of authority and responsibilities in a organization
2. B.offices of both subordinates and officials
3. C.organization of staff in an organization
4. D.positions of workers in an organization
5. E.span of management control
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Answer: A flow of authority and responsibilities in a organization
18.
Re-exporting imported goods to another country is known as ........ trade.
1. A.barter
2. B.counter
3. C.entreport
4. D.invisible
5. E.visible
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Answer: C entreport
19.
Sea transport is unsuitable for the movement of
1. A.antiquities
2. B.coal
3. C.fertilizer
4. D.planks
5. E.vegetables
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Answer: E vegetables
20.
Shareholder receive......
1. A.interest
2. B.dividends
3. C.commission
4. D.allowances
5. E.none of the above
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Answer: B dividends
21.
Shares issued to existing shareholders, without paying for them are referred to as ....... issue.
1. A.allowance
2. B.bonus
3. C.extra
4. D.right
5. E.special
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Answer: B bonus
22.
The 4C's of credit are
1. A.consumer, collateral, company and cost
2. B.collateral, capital, company and cost
3. C.collate capital, character and capacity
4. D.character, cost, capital and capacity
5. E.capital, capacity, consumer and character
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Answer: C collate capital, character and capacity
23.
The act of bringing a privately owned business under exclusive state ownership and control is referred to as
1. A.commercialization
2. B.indigenization
3. C.nationalization
4. D.privatization
5. E.rationalization
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Answer: C nationalization
24.
The agreement between an exporter and a ship owner to convey goods is known as
1. A.charter party
2. B.dock warrant
3. C.marine policy
4. D.shipping conference
5. E.ships manifest
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Answer: A charter party
25.
The amount which a company is empowered to raise for a business is its
1. A.called-up-capital
2. B.nominal capital
3. C.paid-up capital
4. D.issued capital
5. E.working capital
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Answer: B nominal capital
26.
The branches of Commerce include all the following EXCEPT
1. A.advertising
2. B.barbing
3. C.trade
4. D.transport
5. E.warehousing
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Answer: B barbing
27.
The changing of the original form of an object to a form that can give satisfaction to a want is known as
1. A.commerce
2. B.construction
3. C.consumption
4. D.occupation
5. E.production
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Answer: E production
28.
The coming together of two or more companies to form one big viable company is known as
1. A.association
2. B.cartel
3. C.joining
4. D.merging
5. E.trust
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Answer: D merging
29.
The factor of production that combines others factors and bears the risks in production process is
1. A.capital
2. B.entrepreneur
3. C.land
4. D.labour
5. E.wages
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Answer: C land
30.
The government regulates business activities through the following measures EXCEPT
1. A.copy right
2. B.patents
3. C.registration
4. D.trade marks
5. E.inspection
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Answer: D trade marks
31.
The national headquarters of Niger Basin Commission is at
1. A.Lagos
2. B.Niamey
3. C.N'djamena
4. D.Yamasucro
5. E.Yaounde
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Answer: B Niamey
32.
The reward for Labour as a factor of production is
1. A.interest
2. B.premium
3. C.profit
4. D.rent
5. E.wage
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Answer: E wage
33.
The reward of an agent working for a principal is a
1. A.bonus
2. B.commission
3. C.dividend
4. D.interest
5. E.profit
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Answer: B commission
34.
The second tier security market is an example of
1. A.capital market
2. B.commodity market
3. C.factor market
4. D.labour market
5. E.money market
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Answer: A capital market
35.
The service of a teacher is in the classification of
1. A.commerce
2. B.direct service
3. C.extractive occupation
4. D.indirect services
5. E.industrial occupation
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Answer: D indirect services
36.
The special right of privileges granted to an inventor to make use of what he has invented is known as fundamental right.
1. A.copyright
2. B.fundamental right
3. C.patent
4. D.right to machine
5. E.trade mark
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Answer: C patent
37.
The word "close-up" as used in toothpaste is a
1. A.brand name
2. B.Company's name
3. C.Company's logo
4. D.Patent right
5. E.Symbol
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Answer: A brand name
38.
When a business organization constructs schools and roads for the use of a community. such responsibility is
1. A.commercial
2. B.economical
3. C.industrial
4. D.political
5. E.social
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Answer: E social
39.
Which means of transport is most suitable for moving crude oil, gas and water from Port Harcourt to Kaduna?
1. A.Bus
2. B.Pipeline
3. C.Ship
4. D.Tanker
5. E.Trailer
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Answer: B Pipeline
40.
Which of the following does not relate to foreign trade?
1. A.Certificate of origin
2. B.Chartered party
3. C.Dumping
4. D.Export duties
5. E.Export license
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Answer: D Export duties
41.
Which of the following does NOT relate to marine insurance?... policy
1. A.Endowment
2. B.Floating
3. C.Time
4. D.Valued
5. E.Voyage
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Answer: A Endowment
42.
Which of the following forms of business unit requires a certificate of trading before commencing business?
1. A.Partnership
2. B.Public liability company
3. C.Private liability company
4. D.Public corporation
5. E.Sole proprietorship
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Answer: B Public liability company
43.
Which of the following gives Nigerian's the opportunity to take active part in industry and commerce?
1. A.Commercialization
2. B.Consumerism
3. C.Indigenization
4. D.Nationalization
5. E.Privatization
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Answer: E Privatization
44.
Which of the following invites the general public to subscribe for its shares?
1. A.Co-operative
2. B.Private liability company
3. C.Public corporation
4. D.Public liability company
5. E.Sole proprietorship
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Answer: D Public liability company
45.
Which of the following organizations look after harbours, docks and waterways in Nigeria?
1. A.Nigeria Ports Authority
2. B.Nigeria Navy
3. C.Nigeria Export Promotion Council
4. D.Nigeria Shippers Council
5. E.Nigeria Customs Service
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Answer: A Nigeria Ports Authority
46.
Which of the following risks would an insurance company not prepared to cover?
1. A.Change in fashion
2. B.Death resulting from HIV
3. C.Loss of cash in transit
4. D.Numerous employees
5. E.Theft of property
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Answer: A Change in fashion
47.
Which of the laws of consumers protection fixes the rate of interest that may be charged on loans?
1. A.Food and Drug Act
2. B.Hire Purchase Laws
3. C.Price Control Decree
4. D.Sale of Goods Act
5. E.Usury Laws
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Answer: E Usury Laws
48.
Who among the following engages in manufacturing occupation?
1. A.Bricklayer
2. B.Carpenter
3. C.Miner
4. D.Musician
5. E.Spinner
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Answer: B Carpenter
49.
Who among the following is the last link in the chain of distribution?
1. A.Consignor
2. B.Consumer
3. C.Producer
4. D.Retailer
5. E.Wholesaler
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Answer: B Consumer
50.
Who takes the initial step to form a company prior to its incorporation?
1. A.Company secretary
2. B.Managing director
3. C.Promoter
4. D.Registrar of company
5. E.shareholder
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Answer: C Promoter

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