Commerce past questions: NECO SSCE 2009

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

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

1.
A country's balance of payments is divided into
1. A.current and capital accounts
2. B.current and foreign accounts
3. C.creditor`s and debtor's accounts
4. D.export and import accounts
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Answer: B current and foreign accounts
2.
A document issued by financial organizations to enable holders to buy goods on credit is called
1. A.ATM card
2. B.coupon
3. C.luncheon voucher
4. D.credit card
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Answer: D credit card
3.
A factor that hinders the achievement of ECOWAS objectives is
1. A.the absence of a common market
2. B.lack of a common language
3. C.the difference in political ideology
4. D.lack of a common territory
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Answer: C the difference in political ideology
4.
A function of a retailer is to
1. A.determine the prices of goods
2. B.stock a variety of goods
3. C.buy goods in large quantities
4. D.make money available to the manufacturer
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Answer: B stock a variety of goods
5.
A hire purchase transaction becomes a sale when the hirer
1. A.pays full cost of the goods
2. B.agrees with the hire purchase terms
3. C.takes possession of the goods
4. D.pays part of the instalments
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Answer: A pays full cost of the goods
6.
A legal document representing a promise by a company to pay back a loan over a period of time is referred to as a
1. A.warrant
2. B.bond
3. C.share certificate
4. D.title deed
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Answer: B bond
7.
A major disadvantage of the mainframe computer is its
1. A.speed
2. B.durability
3. C.cost
4. D.capacity
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Answer: C cost
8.
A management function which reflects effective identification and grouping of work is
1. A.planning
2. B.organizing
3. C.coordinating
4. D.staffing
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Answer: B organizing
9.
A mutual compromise between the central bank and other banks on strategies for economic activities is reached through
1. A.cash liquidity ratio
2. B.the reserve ratio
3. C.moral suasion
4. D.open-market operations
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Answer: C moral suasion
10.
A non-insurable risk is exemplified by
1. A.speculation and loss of profit through competition
2. B.gambling and whole-life insurance
3. C.bad debts and consequential loss insurance
4. D.open cover contract and constructive total loss
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Answer: A speculation and loss of profit through competition
11.
A system in which a group of persons are appointed to carry out special duties of policy and decision-making is referred to as the
1. A.matrix structure
2. B.staff structure
3. C.committee structure
4. D.functional structure
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Answer: C committee structure
12.
An association of two or that each cannot handle alone is
1. A.a cartel
2. B.an amalgamation
3. C.a merger
4. D.a syndicate
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Answer: D a syndicate
13.
An electronic system of communication which serves as the international information bank is called
1. A.an e-mail
2. B.a satellite
3. C.a telex
4. D.the Internet
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Answer: D the Internet
14.
An element of the marketing mix that is concerned with feature and quality is
1. A.price
2. B.place
3. C.product
4. D.promotion
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Answer: C product
15.
An unconditional order by a creditor to a debtor requiring payment on a specified date is called
1. A.promissory note
2. B.letter of credit
3. C.money order
4. D.bill of exchange
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Answer: D bill of exchange
16.
Commerce aids the development of any economy as it
1. A.provides for proper accountability
2. B.improves the living standard
3. C.enhances the even distribution of wealth
4. D.encourages the reduction of inflation
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Answer: B improves the living standard
17.
Failure to pay an employees wage is a breach of
1. A.right
2. B.warranty
3. C.agreement
4. D.trust
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Answer: C agreement
18.
Foreign trade transactions are carrried out through the use of
1. A.commercial papers
2. B.bank drafts drawn by commercial banks on their foreign braches
3. C.irrevocably confirmed letters of credit
4. D.letters of credit authenticated by embassies
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Answer: C irrevocably confirmed letters of credit
19.
Free editorial space or time not paid for by an organization is called
1. A.sales promotion
2. B.publicity
3. C.public relations
4. D.advertisement
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Answer: B publicity
20.
In the Sale of Goods Act, goods which have been identified and agreed upon at the time of contract are called
1. A.existing goods
2. B.fixture goods
3. C.unascertained goods
4. D.specific
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Answer: D specific
21.
information and communication technology is advantageous to the banking industry because
1. A.overhead cost is reduced
2. B.the number of customers increases
3. C.service delivery is fast
4. D.interest rates are raised
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Answer: C service delivery is fast
22.
Kola who had an accident was taken to hospital by Kemi. Kola promised to give Kemi N 500 when discharged. Kola failed to fulfil his promise. Which of the following is legally correct?
1. A.Kemi cannot sue Kola
2. B.Kemi can sue Kola
3. C.Kola can deny the promise
4. D.Kola can offer something else
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Answer: C Kola can deny the promise
23.
One objective of privatization is the
1. A.provision of infrastructure
2. B.provision of education and health facilities
3. C.efficient use of resources
4. D.protection and development of communities
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Answer: C efficient use of resources
24.
One of the functions of the stock exchange is to
1. A.assist individuals in their policies
2. B.provide collateral for investors
3. C.provide insurance cover against risk
4. D.disseminate information to investors
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Answer: D disseminate information to investors
25.
One of the primary functions of the thrift, credit and loans cooperative society is to
1. A.educate its members
2. B.disburse money to its members
3. C.encourage investment among members
4. D.protect members' valuables
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Answer: C encourage investment among members
26.
Personal selling is important to a business because it can be used to
1. A.distract competitors
2. B.distribute free samples
3. C.sell custom-made products
4. D.effect labour - oriented pricing
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Answer: B distribute free samples
27.
Sole proprietors finance their businesses through
1. A.bonds and savings
2. B.savings and bank overdrafts
3. C.loans and mortgages
4. D.bank overdrafts and leasing
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Answer: B savings and bank overdrafts
28.
The benefits that students derive from tourism are
1. A.education and revenue
2. B.recreation and education
3. C.purchase of artifacts and sightseeing
4. D.sale of artefacts and relaxation
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Answer: B recreation and education
29.
The branding of manufacturers goods aids
1. A.market segmentation
2. B.demand and supply
3. C.price discrimination
4. D.product differentiation
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Answer: D product differentiation
30.
The construction of dams, irrigation drains and navigation major responsibility of the
1. A.Upper-Nigeria River Basin Commission
2. B.Nigeria Basin Commission
3. C.Economic Community of West African states
4. D.Lack Chad Basic Commission
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Answer: B Nigeria Basin Commission
31.
The contribution of a department towards the attainment of corporate goals is its
1. A.span of control
2. B.scalar principles
3. C.unity of command
4. D.unity of objective
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Answer: B scalar principles
32.
The effective dissemination of information about products is a social responsibility of a company to its
1. A.shareholders
2. B.management
3. C.consumers
4. D.employees
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Answer: C consumers
33.
The factors responsible for large scale production of durable goods are
1. A.capital and infrastructure
2. B.land and infrastructure
3. C.labour and capital
4. D.equipment and labour
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Answer: A capital and infrastructure
34.
The individuals who conceive the idea of a company and undertake to fulfill the legal requirements for the venture are the
1. A.shareholders
2. B.promoters
3. C.directors
4. D.entrepreneur
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Answer: B promoters
35.
The inflationary conditions of a country and her interest rate constitute her
1. A.social variables
2. B.economic variables
3. C.political variables
4. D.transformational variables
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Answer: B economic variables
36.
The luxurious boats used for passengers from one town to another are
1. A.steamers
2. B.launches
3. C.tramp liners
4. D.coastal liners
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Answer: B launches
37.
The major advantage of using a vending machine is that
1. A.all sales are automatic
2. B.it operates for 24 hours
3. C.it has a time limit
4. D.it is easily accessible
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Answer: D it is easily accessible
38.
The price of an item is N 300 with a trade discount of 20%, What is the selling price?
1. A.N180
2. B.N240
3. C.N300
4. D.N360
5. E.no option
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Answer: B N240
39.
The profit received by a member of a cooperative society is
1. A.a rebate
2. B.an allowance
3. C.a dividend
4. D.a share
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Answer: C a dividend
40.
The quickest and most accurate means of communication is
1. A.fax
2. B.telegram
3. C.express mail
4. D.railex
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Answer: B telegram
41.
The trade that takes place when imported goods are re-exported is known as
1. A.entrepot trade
2. B.import trade
3. C.export trade
4. D.visible trade
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Answer: A entrepot trade
42.
The transfer of risks from an insurer to another insurer for premium is referred to as
1. A.assurance
2. B.insurance
3. C.subrogation
4. D.reinsurance
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Answer: D reinsurance
43.
The type of advertising that influences consumer's choice of products is
1. A.competitive
2. B.persuasive
3. C.specific
4. D.informative
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Answer: B persuasive
44.
Which of the following is the best form of sales promotion?
1. A.Bill board
2. B.Bell ringing
3. C.Publicity
4. D.Demonstration
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Answer: C Publicity

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