Commerce past questions: NECO SSCE 2007

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

Sit this paper

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

1.
"Be a millionaire" a slogan adopted by one of them G.S.M providers is an example of
1. A.advertising
2. B.credit to customers
3. C.customer service
4. D.sales promotion
5. E.trade discount
Show answerHide answer
Answer: D sales promotion
2.
A disadvantage of commercialization of public enterprises in Nigeria is that it
1. A.creates room for competition with private owned enterprises
2. B.enables consumers have value for their money
3. C.generates funds for government
4. D.leads to reduction in work force
5. E.promotes efficiency
Show answerHide answer
Answer: D leads to reduction in work force
3.
A document that is sent by the seller to the buyer to indicate an increase in the annual owes is
1. A.credit note
2. B.debit note
3. C.invoice
4. D.letter of credit
5. E.receipt
Show answerHide answer
Answer: B debit note
4.
A financial document stating the reasons for making a payment and details of the payment is
1. A.bank draft
2. B.cash book
3. C.cheque
4. D.payslip
5. E.voucher
Show answerHide answer
Answer: E voucher
5.
A marketing term the for the presentation of goods in a neatly wrapped container is
1. A.advertising
2. B.credit to customers
3. C.labelling
4. D.merchandising
5. E.packaging
Show answerHide answer
Answer: E packaging
6.
A Speculator in the stock exchange who buys shares hope that prices will rise is called
1. A.bear
2. B.broker
3. C.bull
4. D.Jobber
5. E.shareholder
Show answerHide answer
Answer: C bull
7.
Adeleke places his vehicle for sale at N150,000,00 Ibrahim had agreed to pay the amount. In this Trans: Adeleke is the
1. A.agent
2. B.auctioneer
3. C.broker
4. D.offeree
5. E.offeror
Show answerHide answer
Answer: E offeror
8.
An arrangement in insurance which provides for the payment of a stipulated sum either at death or the expiration of a stated period is known as ……….
1. A.accident
2. B.endowment
3. C.fire
4. D.fidelity
5. E.whole life
Show answerHide answer
Answer: B endowment
9.
An example of a secured loan is
1. A.backdraft
2. B.co-operative loan
3. C.mortgage
4. D.overdraft
5. E.trade credit
Show answerHide answer
Answer: C mortgage
10.
An example of service rendering trade association is
1. A.Association of Nigerian Miners
2. B.Cocoa Farmers' Association
3. C.Manufacturers Association of Nigeria
4. D.Nigerian Bar Association
5. E.Saw millers Association of Nigeria
Show answerHide answer
Answer: D Nigerian Bar Association
11.
Another name for a foreign order is
1. A.catalogue
2. B.export
3. C.import
4. D.indent
5. E.quotation
Show answerHide answer
Answer: D indent
12.
Coal mining is an example of
1. A.construction
2. B.service
3. C.extraction
4. D.manufacturing
5. E.tertiary
Show answerHide answer
Answer: C extraction
13.
From the date of issue, cheques are valid for-----------months.
1. A.3
2. B.4
3. C.5
4. D.6
5. E.9
Show answerHide answer
Answer: D 6
14.
In which order are the following documents used? I. Enquiry II. Delivery note III. Order IV. Invoice V. Quotation
1. A.I, II, III, IV and V
2. B.I, V, III, IV and II
3. C.II, I, IV, III and V
4. D.III, II, V, I and IV
5. E.V, IV, I, III and II
Show answerHide answer
Answer: B I, V, III, IV and II
15.
Income distribution, nature of natural resources, investment etc. forms part of -----business environment.
1. A.cultural
2. B.economic
3. C.political
4. D.social
5. E.technological
Show answerHide answer
Answer: B economic
16.
Public debt management is one of the functions of a ----- bank
1. A.central
2. B.commercial
3. C.development
4. D.industrial
5. E.merchant
Show answerHide answer
Answer: A central
17.
Shares that are fully paid can be converted into bulks known as
1. A.bonds
2. B.capital reserves
3. C.debentures
4. D.guilt-edged securities
5. E.stocks
Show answerHide answer
Answer: E stocks
18.
Shares, stocks, government bonds trade in the stock exchange marks: are known as
1. A.debentures
2. B.gut-edged stocks
3. C.merchandises
4. D.securities
5. E.treasure bills
Show answerHide answer
Answer: D securities
19.
Telecommunication services are provided by
1. A.Bureau De Change
2. B.Courier Services
3. C.Date Post
4. D.NIPOST
5. E.NITEL
Show answerHide answer
Answer: E NITEL
20.
The actual amount of share capital a company is allowed to issue to the public is the ---- capital
1. A.authorized
2. B.issued
3. C.paid-up
4. D.reserved
5. E.working
Show answerHide answer
Answer: A authorized
21.
The amount receivable by shareholders after the declaration of profit is called
1. A.bonus
2. B.commission
3. C.dividend
4. D.interest
5. E.premium
Show answerHide answer
Answer: C dividend
22.
The authority that transfers to a third party the shard right to vote is called
1. A.bond
2. B.indent
3. C.proxy
4. D.right issue
5. E.warranty
Show answerHide answer
Answer: C proxy
23.
The building of schools and hospitals for communities by some oil companies in Niger Delta of Nigeria is an example of
1. A.business diversification
2. B.business integration
3. C.consumer protection
4. D.discharge of social responsibility
5. E.indigenization
Show answerHide answer
Answer: D discharge of social responsibility
24.
The combination of product, price,
1. A.consumer orientation
2. B.marketing concept
3. C.marketing mix
4. D.marker research
5. E.product mix
Show answerHide answer
Answer: C marketing mix
25.
The department responsible for recruitment and promotion of staff is
1. A.finance
2. B.legal
3. C.personnel
4. D.production
5. E.purchases
Show answerHide answer
Answer: C personnel
26.
The fee for sending a telegram depends on the
1. A.number of lines contained by the message
2. B.number of words contained in the message
3. C.the security of the message
4. D.time it would take the message to reach its destination
5. E.urgency of the message
Show answerHide answer
Answer: B number of words contained in the message
27.
The final stage in the production process is
1. A.consumption
2. B.manufacturing
3. C.retailing
4. D.warehousing
5. E.wholesaling
Show answerHide answer
Answer: A consumption
28.
The following are methods of quoting prices EXCEPT
1. A.A.C.I.F
2. B.F.A.S
3. C.F.O.B
4. D.L.O.C.O
5. E.E.O.E
Show answerHide answer
Answer: A A.C.I.F
29.
The losses incurred in the running of Public Corporations are borne by the
1. A.board of directors
2. B.debenture holders
3. C.managing director
4. D.shareholders
5. E.tax payers
Show answerHide answer
Answer: E tax payers
30.
The most suitable mode of transport for conveying gas and liquid within Nigeria is
1. A.air
2. B.pipeline
3. C.rail
4. D.road
5. E.water
Show answerHide answer
Answer: B pipeline
31.
The most suitable mode of transporting very bulky goods from Lagos to Kaduna is the
1. A.aero plane
2. B.caravan
3. C.lorry
4. D.ship
5. E.train
Show answerHide answer
Answer: E train
32.
The payment made by government to producers to enable them reduce price is known as
1. A.bonus
2. B.compensation
3. C.margin
4. D.make-up
5. E.subsidy
Show answerHide answer
Answer: E subsidy
33.
The practice of selling some goods below market price to attract more customers is known as
1. A.hoarding
2. B.loss leader
3. C.market sharing
4. D.profiteering
5. E.speculating
Show answerHide answer
Answer: C market sharing
34.
The principle of insurance that prevents the insured from benefiting in an event where he suffers no material or financial loss is
1. A.Indemnity
2. B.insurable
3. C.proximate cause
4. D.subrogation
5. E.utmost good faith
Show answerHide answer
Answer: C proximate cause
35.
The process of passing information from one person to another in an organization is known as
1. A.communication
2. B.co-ordination
3. C.delegation
4. D.direction
5. E.Motivation
Show answerHide answer
Answer: A communication
36.
The reply to a letter of inquiry is a/an
1. A.advice note
2. B.estimate
3. C.order
4. D.quotation
5. E.statement
Show answerHide answer
Answer: D quotation
37.
Use the following information to answer question Kolawole's Opening Stock was N10, 000. His purchases was N280,000 Goods returned outward was N3,000, and the Closing Stock was N8,000 Cost of goods sold is
1. A.N180,000.00
2. B.N227,000.00
3. C.N279,000.00
4. D.N290,000.00
5. E.N301,000.00
Show answerHide answer
Answer: C N279,000.00
38.
Use the following information to answer question Kolawole's Opening Stock was N10, 000. His purchases was N280,000 Goods returned outward was N3,000, and the Closing Stock was N8,000 Kolawole's average stock is?
1. A.N9,000.00
2. B.N10, 000.00
3. C.N279,000.00
4. D.N280,000.00
5. E.N290,000.00
Show answerHide answer
Answer: C N279,000.00
39.
Use the following information to answer question Kolawole's Opening Stock was N10, 000. His purchases was N280,000 Goods returned outward was N3,000, and the Closing Stock was N8,000 The rate of stock turnover is?
1. A.2.0 times
2. B.30.0 times
3. C.31.0 times
4. D.31.3 times
5. E.32.2 times
Show answerHide answer
Answer: C 31.0 times
40.
When a cheque has R/D written on it, it means that the cheque
1. A.has been dishonoured
2. B.has been honoured
3. C.has been paid into the drawer's account
4. D.has not been signed
5. E.is wrongly worded
Show answerHide answer
Answer: A has been dishonoured
41.
When the supplier changes a retailer for not returning empty packages, the supplier sends him a/an
1. A.advice note
2. B.consignment note
3. C.credit note
4. D.debit note
5. E.statement
Show answerHide answer
Answer: D debit note
42.
Which of the following is an invisible item of trade?
1. A.Banking Service
2. B.Petroleum Product
3. C.Processed Rice
4. D.Processed Milk
5. E.Processed Yam Flour
Show answerHide answer
Answer: A Banking Service
43.
Which of the following is an objective of regional economic grouping?
1. A.For easy religious interactions
2. B.For single political governance
3. C.For stable political governance
4. D.To encourage free flow of trade among members
5. E.To harmonize the culture of member countries
Show answerHide answer
Answer: D To encourage free flow of trade among members
44.
Which of the following is NOT a function of Commerce?
1. A.Assisting Companies in raise capital
2. B.Assisting in transporting men and materials to production points
3. C.Extracting goods for further production and processing
4. D.Storing goods until they are needed
5. E.Offering employment opportunities to a large number of people
Show answerHide answer
Answer: A Assisting Companies in raise capital
45.
Which of the following is NOT true of a cheque as a means of payment? It
1. A.can be made out of a definite payee
2. B.is generally acceptable
3. C.is safer than carrying cash
4. D.is transferable
5. E.serves as a proof of payment
Show answerHide answer
Answer: B is generally acceptable
46.
Which of the following regards the consumer as king?
1. A.consumer behavior
2. B.marketing concept
3. C.market mix
4. D.pricing policy
5. E.product mix
Show answerHide answer
Answer: B marketing concept
47.
Which of the following relies on subvention as the main source of capital?
1. A.Cooperative society
2. B.Partnership
3. C.Public corporation
4. D.Public limited company
5. E.Sole trader
Show answerHide answer
Answer: C Public corporation

Printing is turned off here to protect the question bank. Get the SmarTest app to study offline.

More free Commerce papers

NECO Commerce 2000–2002 is in the app

The latest five years of each paper are free here. The SmarTest app has every year we hold, a worked explanation for each answer, and timed mock exams. It works offline.

Get the app

Android, Windows, Mac and Linux