Commerce past questions: NECO SSCE 2005

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.
A dealer who buys securities at low prices in anticipation of reselling them at higher prices is called a
1. A.bear
2. B.broker
3. C.bull
4. D.jobber
5. E.speculator
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Answer: D jobber
2.
A public limited company is regarded as a legal entity because
1. A.it can sue and be sued
2. B.it cannot be liquidated
3. C.it has a memorandum of association
4. D.the death of the largest shareholder cannot bring it to an end
5. E.the government grants it licence
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Answer: A it can sue and be sued
3.
A ship which has no fixed schedule and travels wherever it can find cargoes to carry is a
1. A.boat
2. B.ferry
3. C.liner
4. D.tanker
5. E.tramp
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Answer: E tramp
4.
A type of partnership in which all partners have unlimited liability and jointly manage the business is known as ……. partnership.
1. A.Limited
2. B.nominal
3. C.ordinary
4. D.special
5. E.unlimited
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Answer: E unlimited
5.
A typical example of an event covered by an Assurance Policy is
1. A.accident
2. B.burglary
3. C.death
4. D.fire
5. E.theft
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Answer: C death
6.
A wholesaler who acts as an agent on behalf of the owner of the goods in buying or selling fora commission proportionate to the value of the transaction is called a
1. A.broker
2. B.commissioned agent
3. C.del-credere agent
4. D.factor
5. E.speculator
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Answer: C del-credere agent
7.
An agent held responsible for non-payment of goods bought by the customer he introduced to his principal is called …… agent
1. A.del-credere
2. B.general
3. C.sales
4. D.special
5. E.universal
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Answer: A del-credere
8.
Association of people in the same line of business is known as
1. A.chambers of commerce
2. B.holding company
3. C.monopolistic association
4. D.producers association
5. E.trade association
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Answer: E trade association
9.
Bonded warehouse is controlled and supervised by
1. A.customs
2. B.immigration
3. C.navy
4. D.police
5. E.quarantine
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Answer: A customs
10.
Branding is the assigning of trade marks to goods for the purpose of ……….. by the public.
1. A.demand
2. B.identification
3. C.replacement
4. D.stabilization
5. E.standardization
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Answer: B identification
11.
Commerce is often referred to as the life blood of every nation because it
1. A.commits financial resources to the nation
2. B.contributes to economic development to the nation
3. C.creates utilities for human satisfaction
4. D.provides auxiliary services to trade
5. E.provides all the resources use for production
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Answer: C creates utilities for human satisfaction
12.
Departmental store, supermarket and chain store are examples of
1. A.large scale retailers
2. B.large scale whole-salers
3. C.medium scale producers
4. D.small scale retailers
5. E.small scale wholesalers
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Answer: A large scale retailers
13.
Gross profit can be calculated as
1. A.Cost of good sold minus cost of goods available for sale
2. B.cost of goods available for sales minus sale
3. C.Sales minus purchases
4. D.Sales minus cost of good sold
5. E.Sales minus closing stock
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Answer: D Sales minus cost of good sold
14.
In the event of winding up of a company, who among the following is paid last?
1. A.Cumulative preference shareholders
2. B.Debenture holders
3. C.Ordinary shareholders
4. D.Preference Shareholders
5. E.Trade creditors
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Answer: C Ordinary shareholders
15.
One of the easiest means of transporting petroleum product is by
1. A.air
2. B.pipeline
3. C.rail
4. D.road
5. E.sea
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Answer: B pipeline
16.
Stock exchange quoted the shares of ABC Plc at N0.75K for N1.25K per share. This means the shares were sold at a
1. A.discount
2. B.gain
3. C.loss
4. D.par value
5. E.premium
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Answer: E premium
17.
Tariff can be defined as a compulsory levy on
1. A.foreign exchange earnings
2. B.foreigners working in Nigeria
3. C.imported goods only
4. D.import and export
5. E.substitutes and inferior goods
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Answer: C imported goods only
18.
The act of being on one job for expertise is called
1. A.division of labour
2. B.immobility
3. C.independence
4. D.separation of power
5. E.specialization
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Answer: E specialization
19.
The activities concerned with changing of raw materials into finished products belong to ______ occupation
1. A.commercial
2. B.constructive
3. C.extractive
4. D.manufacturing
5. E.service
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Answer: D manufacturing
20.
The aid to trade which enables producer and consumer to transact business without physical contact is known as
1. A.advertising
2. B.communication
3. C.insurance
4. D.tourism
5. E.transportation
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Answer: B communication
21.
The association that encourages savings for the benefit of its members is known as
1. A.Consumer co-operative society
2. B.Credit and thrift co-operative society
3. C.Consumer association
4. D.Producer co-operative society
5. E.Producer association
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Answer: B Credit and thrift co-operative society
22.
The coming together of two or more firms with each of them losing its identity is known as
1. A.amalgamation
2. B.cartel
3. C.consortium
4. D.holding
5. E.trust
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Answer: A amalgamation
23.
The components of a balance of payments account are
1. A.capital, current and fixed deposit
2. B.capital, savings and fixed deposit
3. C.current, capital and monetary movement
4. D.current, savings and monetary movement
5. E.current, savings and fixed deposit
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Answer: C current, capital and monetary movement
24.
The document that spells out the relationship of a company with the outside world is known as
1. A.article of association
2. B.certificate of incorporation
3. C.deed of partnership
4. D.document of registration
5. E.memorandum of association
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Answer: E memorandum of association
25.
The document which gives complete information about the goods sold is the
1. A.bill of exchange
2. B.delivery note
3. C.invoice
4. D.order form
5. E.quotation
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Answer: C invoice
26.
The documents sent by the suppliers of good to a prospective buyer, informing him of what to pay if he buys the good is
1. A.advice note
2. B.credit note
3. C.debt note
4. D.invoice
5. E.pro-forma invoice
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Answer: E pro-forma invoice
27.
The following are advantages of division of labour specialization EXCEPT that it
1. A.enhances interdependence
2. B.increases output
3. C.increases skill and dexterity
4. D.leads to monotony
5. E.promotes efficient of tools
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Answer: D leads to monotony
28.
The following are functions of marketing EXCEPT
1. A.advertising
2. B.distribution
3. C.insurance
4. D.packaging
5. E.transportation
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Answer: C insurance
29.
The functions of public corporations include the following EXCEPT
1. A.maximizing profits for the board members
2. B.providing employment opportunities
3. C.providing essential services to the public
4. D.providing even development
5. E.providing the public with social amenities at reduced cost
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Answer: A maximizing profits for the board members
30.
The most common form of business unit in West Africa is
1. A.co-operative society
2. B.joint stock company
3. C.partnership
4. D.public corporation
5. E.sole proprietor-ship
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Answer: E sole proprietor-ship
31.
The most important document an importer requires to be able to clear his goods from the harbour is
1. A.bill of exchange
2. B.bill of lading
3. C.bill of sale
4. D.invoice from the shopper
5. E.marine insurance
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Answer: B bill of lading
32.
The Nigeria Enterprises promotion Decree brought about policy
1. A.commercialization
2. B.indigenization
3. C.industrialization
4. D.nationalization
5. E.privatization
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Answer: B indigenization
33.
The principle of insurance which ensures that an individual is restored to his former position after suffering a loss is
1. A.contribution
2. B.indemnity
3. C.insurable interest
4. D.subrogation
5. E.utmost good faith
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Answer: B indemnity
34.
The rules and regulations guiding the conduct of business transactions are known as ……. law
1. A.civil
2. B.commercial
3. C.common
4. D.contract
5. E.criminal
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Answer: B commercial
35.
The term "caveat emptor" implies that
1. A.credit is not allowed
2. B.goods are still with the seller
3. C.goods have been transferred to the buyer
4. D.let the buyer beware
5. E.let the seller beware
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Answer: D let the buyer beware
36.
The term "consumer sovereignty" means that the consumer is a
1. A.director
2. B.king
3. C.manager
4. D.promoter
5. E.target
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Answer: B king
37.
Transfer of ownership of goods sold under Hire Purchase System takes place when _____ paid.
1. A.a deposit is
2. B.a quarter of the total price is
3. C.half of the total price is
4. D.the final instalment is
5. E.two instalment have been
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Answer: D the final instalment is
38.
Use the information below to answer this question. Aisha sold her wristwatch to Halima for N2,000.00 and she paid The sum of N2,000.00 is the
1. A.consideration
2. B.entitlement
3. C.fees
4. D.money
5. E.offer
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Answer: C fees
39.
Which of the following advertising media preselects its readership through the nature of its content?
1. A.Billboard
2. B.Hand bill
3. C.Magazine
4. D.Newspaper
5. E.Poster
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Answer: A Billboard
40.
Which of the following does NOT belong to the group?
1. A.Banking
2. B.insurance
3. C.retailing
4. D.transport
5. E.warehousing
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Answer: C retailing
41.
Which of the following forms part of a company's Article of Association?
1. A.Goodwill and status of shareholders
2. B.Name of the company
3. C.Nature and object of the business
4. D.Registered office
5. E.Voting powers and the use of proxy
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Answer: A Goodwill and status of shareholders
42.
Which of the following groupings is a means of payments through the post office
1. A.Bank draft, Certified cheque, Money order and Stamps
2. B.Cheque, Postal order, Money order and Bank draft
3. C.Money order, Certified cheques, Telegraphic Money order and Stamps
4. D.Postal order, Money order, Telegraphic Money order and Stamps
5. E.Telegraphic Money order, Cheques, Bank draft and Certified cheques
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Answer: D Postal order, Money order, Telegraphic Money order and Stamps
43.
Which of the following is NOT a component of trade?
1. A.Auction
2. B.Bilateral
3. C.Multi-lateral
4. D.Retail
5. E.Wholesale
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Answer: A Auction
44.
Which of the following is NOT a credit instrument?
1. A.Bank Notes
2. B.Bill of Exchange
3. C.Bill of Lading
4. D.Cheques
5. E.Promissory Notes
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Answer: C Bill of Lading
45.
Which of the following services is NOT rendered by NITEL?
1. A.Data Transmission
2. B.Recorded Delivery
3. C.Satellite
4. D.Telex
5. E.Telephone
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Answer: C Satellite
46.
Which of the following types of insurance is usually excluded from the principle of indemnity?
1. A.Fidelity Guarantee
2. B.Fire
3. C.Life
4. D.Marine
5. E.Motor Vehicle
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Answer: C Life
47.
Which of these is NOT a governments legislation to protect thee consumer?
1. A.Fair trading
2. B.Foods and drugs
3. C.Privatization and commercialization
4. D.Weight and measure
5. E.Trade description
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Answer: C Privatization and commercialization
48.
Which of these means of payment originates from a creditor?
1. A.Bill of exchange
2. B.Cheque
3. C.Coins and currencies
4. D.Promissory note
5. E.Standing order
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Answer: E Standing order
49.
Which type of advertisement induces consumer to purchase the goods he does not need?
1. A.Competitive
2. B.Descriptive
3. C.Informative
4. D.Persuasive
5. E.Specific
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Answer: D Persuasive
50.
Who among the following engages in extractive activities?
1. A.Flour miller
2. B.Fisherman
3. C.Porter
4. D.Singer
5. E.Surgeon
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Answer: B Fisherman

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