Commerce past questions: NECO SSCE 2004

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

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

1.
A 'duty bill' is used to indicate whether the goods arriving a port are........
1. A.being awaited
2. B.clean
3. C.damaged
4. D.delivered
5. E.on transit
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Answer: C damaged
2.
A bill of lading is best described as the
1. A.certificate of quality of goods
2. B.certificate of value for the goods on board
3. C.document of title to the goods on board a ship
4. D.document showing where the goods are going to
5. E.evidence of payment of custom duties
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Answer: C document of title to the goods on board a ship
3.
A business person who contracts to sell shares in the expectation of a fall in price is a
1. A.bear
2. B.broker
3. C.bull
4. D.jobber
5. E.speculator
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Answer: A bear
4.
A credit note is used to
1. A.inform the buyer that he can buy more goods on credit
2. B.inform the buyer that his account has been credited
3. C.inform the customer about his state of solvency
4. D.tell the customer that his account is in red
5. E.warn the customer that his debt is over due
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Answer: B inform the buyer that his account has been credited
5.
A receipt is a/an
1. A.acknowledgement of money received
2. B.credit instrument
3. C.list of goods received
4. D.list of goods to be supplied
5. E.order for the goods to be purchased
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Answer: A acknowledgement of money received
6.
A voluntary body formed by members of a particular branch of trade or industry to represent interest of members is known as
1. A.chambers of commerce
2. B.cooperative society
3. C.trade association
4. D.trade commissions
5. E.trade union
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Answer: C trade association
7.
All are aids to Trade EXCEPT
1. A.advertising
2. B.banking
3. C.retailing
4. D.transportation
5. E.warehousing
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Answer: C retailing
8.
All these are instruments of consumer protection EXCEPT
1. A.Bill of Exchange Act of 1882
2. B.Food and Drug Department of Ministry Health
3. C.Sale of Goods Act of 1979
4. D.Standard Organization of Nigeria
5. E.Trade Description Act of 1968
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Answer: A Bill of Exchange Act of 1882
9.
An industry whose major actors consists of those engaged in sourcing raw materials from the earth surface is known as .... industry.
1. A.commercial
2. B.construction
3. C.extractive
4. D.manufacturing
5. E.mining
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Answer: C extractive
10.
At an auction sale, an auctioneer acts as a/an..........
1. A.agent
2. B.attorney
3. C.broker
4. D.principal
5. E.representative
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Answer: A agent
11.
Brand name is used to
1. A.differentiate one's goods with others
2. B.make business much easier
3. C.make selling more convenient
4. D.package products
5. E.Standardize goods
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Answer: A differentiate one's goods with others
12.
Business transactions are usually based upon agreements known as
1. A.confidence
2. B.contract
3. C.good-will
4. D.proposal
5. E.understanding
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Answer: B contract
13.
Credit in business transaction is a. ......
1. A.compliment to a good customer
2. B.form of loan
3. C.means of saving money
4. D.prepayment by customers
5. E.rebate for large purchases
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Answer: B form of loan
14.
Department stores are usually located in
1. A.areas free from traffic jam
2. B.areas where low income earners live
3. C.city centres
4. D.low rental areas
5. E.suburban town
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Answer: C city centres
15.
Equity of a company is another name for....... shares.
1. A.cumulative preference
2. B.founders
3. C.ordinary
4. D.preference
5. E.redeemable preference
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Answer: C ordinary
16.
Goods are given utility by
1. A.changing their forms and location
2. B.consuming them
3. C.costing their value
4. D.numbering and counting them
5. E.packing and measuring them
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Answer: B consuming them
17.
In a private limited liability company shares can be transferred
1. A.at the end of a financial year
2. B.by applying to the registrar of companies
3. C.without consulting other shareholders
4. D.with the consent to other shareholders
5. E.with the consent of the managing director
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Answer: D with the consent to other shareholders
18.
In international trade, ...... is used to show the exact country where the goods are imported.
1. A.bill of lading
2. B.certificate of origin
3. C.consular invoice
4. D.dock receipt
5. E.shipping note
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Answer: B certificate of origin
19.
In limited liability company, the liability of a member at the time of liquidation is limited to the amount of shares.
1. A.allotted
2. B.called up
3. C.paid for
4. D.uncalled up
5. E.unpaid for
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Answer: C paid for
20.
Kate insured her fancy store for losses arising from burglary. The store was later burnt down. Which insurance principle denied her compensation?
1. A.Contribution
2. B.indemnity
3. C.Proxirnate cause
4. D.Subrogation
5. E.Utmost good faith
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Answer: C Proxirnate cause
21.
One way of restricting the quantity of goods which may be imported into a country is by
1. A.balance of payment
2. B.dumping
3. C.quotas
4. D.tariff
5. E.terms of trade
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Answer: C quotas
22.
Profit in partnership is shared according to
1. A.agreement in the deed
2. B.amount contributed by each partner
3. C.number of hours put in by each partner
4. D.seniority of partner
5. E.types of partners
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Answer: A agreement in the deed
23.
Short-term loan to expand a business is provided by
1. A.building societies
2. B.central bank
3. C.commercial banks
4. D.cooperative societies
5. E.mortgage banks
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Answer: C commercial banks
24.
The concept that the satisfaction of the consumer's wants is to be emphasized at all stages of production and distribution is known as consumer...........
1. A.autonomy
2. B.. independence
3. C.preferential
4. D.production
5. E.sovereignty
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Answer: E sovereignty
25.
The creative management function which promotes trade and employment by assessing consumer needs and initiating research and development to meet them is known as
1. A.advertising
2. B.distributing
3. C.marketing
4. D.planning
5. E.trading
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Answer: C marketing
26.
The drawer of a cheque is usually the
1. A.banker
2. B.creditor
3. C.debtor
4. D.payee
5. E.presenter
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Answer: C debtor
27.
The excess value of all the assets of a business over the value of its liabilities is called
1. A.capital employed
2. B.capital owned
3. C.circulating capital
4. D.loan capital
5. E.share capital
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Answer: B capital owned
28.
The full amount of capital which a company is authorized to raise is stated in the
1. A.articles of association
2. B.certificate of incorporation
3. C.certificate of trading
4. D.memorandum of association
5. E.share certificate
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Answer: D memorandum of association
29.
The insurance policy that specifically covers damage to structure or machinery of a ship is known as.......insurance.
1. A.cargo
2. B.hull
3. C.marine
4. D.ship owners
5. E.time
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Answer: B hull
30.
The last link in the chain of distribution is the
1. A.consumer
2. B.manufacturer
3. C.producer
4. D.retailer
5. E.wholesaler
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Answer: A consumer
31.
The major divisions of commerce are
1. A.buying and selling
2. B.export and import
3. C.foreign and home
4. D.trade and aids to trade
5. E.wholesale and retail
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Answer: D trade and aids to trade
32.
The organisation of petroleum exporting countries (OPEC) is an example of a/n......
1. A.amalgamation
2. B.cartel
3. C.consortium
4. D.holding company
5. E.merger
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Answer: B cartel
33.
The prospectus of a company must include
1. A.names and addresses of management staff
2. B.the certificate of incorporation
3. C.the directors remuneration
4. D.the value of annual dividend
5. E.types of shares available and their cost
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Answer: B the certificate of incorporation
34.
The right to retain possession of property of another until certain legitimate demands are satisfied is known as
1. A.agency
2. B.copyright
3. C.guarantee
4. D.lien
5. E.patent
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Answer: D lien
35.
The services offered by the following people .could be grouped under direct services. EXCEPT
1. A.doctors
2. B.entertainers
3. C.lawyers
4. D.policemen
5. E.teachers
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Answer: B entertainers
36.
The term "enterprise" denotes the ability to
1. A.bear risk
2. B.control other factors of production
3. C.maximize profit
4. D.organize other factors of production
5. E.plan for other factors of production
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Answer: D organize other factors of production
37.
The value of money is measured by the
1. A.amount of goods and services a unit of it can purchase
2. B.amount of its unit people can hold
3. C.. ease at which people can spend a unit of it
4. D.quantity of it in circulation
5. E.rate of national development
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Answer: A amount of goods and services a unit of it can purchase
38.
Trade may be defined as
1. A.buying and selling of goods
2. B.buying and selling of goods and services
3. C.distribution goods
4. D.production of goods
5. E.selling of goods and services
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Answer: B buying and selling of goods and services
39.
Under utmost good faith as an insurance principle, a person must
1. A.believe in the sincerity of the insurance company
2. B.communicate with the insurance company
3. C.disclose all material facts to the insurance company
4. D.have utmost personality
5. E.pay outstanding premium
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Answer: C disclose all material facts to the insurance company
40.
When manufacturers sell directly to consumers they have eliminated
1. A.advertising agents
2. B.brokers
3. C.middleman
4. D.retailers only
5. E.wholesalers
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Answer: C middleman
41.
Which of the following best describes span of control
1. A.Directors in an organisation
2. B.Financial controllers within an organisation
3. C.Shareholders in a company
4. D.Subordinates that an executive supervises
5. E.Subordinates who can work on their own
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Answer: D Subordinates that an executive supervises
42.
Which of the following documents shows a summary of a complete sale which the supplier sends to the buyer?
1. A.Credit note
2. B.Debit note
3. C.Delivery note
4. D.Invoice
5. E.Quotation
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Answer: C Delivery note
43.
Which of the following is a non-insurable risk
1. A.Cash-in-transits
2. B.Consequential loss
3. C.Fire
4. D.Home accidents
5. E.Speculative venture
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Answer: E Speculative venture
44.
Which of the following is NOT a function of the central bank?
1. A.Banker's bank
2. B.Government's bank
3. C.Lender of last resort
4. D.Printing of currency
5. E.Servicing of National debt
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Answer: D Printing of currency
45.
Which of the following is NOT an importance of warehousing?
1. A.Ensures that unexpected fluctuation in consumer's needs are met through reserves
2. B.Gives a feeling of security to the traders
3. C.Protects goods against pilfering
4. D.Provides for economy of scale by maintaining steady rate of production
5. E.Provides protection and security for goods or products from going bad
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Answer: E Provides protection and security for goods or products from going bad
46.
Which of the following is NOT part of the documents to be submitted for the registration of companies?
1. A.A statement of nominal capital
2. B.A statutory declaration signed by a solicitor
3. C.Articles of Association
4. D.Memorandum of Association
5. E.The balance sheet of the company
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Answer: E The balance sheet of the company
47.
Who among the following assess goods on arrival at a port?
1. A.Agent
2. B.Customs
3. C.Importer
4. D.Shipping company
5. E.Ship owner
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Answer: B Customs

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