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Commerce past questions: JAMB UTME 2021

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

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

  1. 1.
    NAMEINSURED AMOUNT(₦)ACTUAL VALUE(₦)ACTUAL LOSS(₦)
    Mr. P Mr. K Mr. R25,000 30,000 40,000100,000 120,000 150,00030,000 40,000 50,000
    Use the table above to answer questions 27 and 28 If Mr. P takes a fire insurance policy with average clause, his compensation will be
    1. A.₦7,500
    2. B.₦5,000
    3. C.₦70,000
    4. D.₦75,000
    Show answer

    Answer: A ₦7,500

  2. 2.
    NAMEINSURED AMOUNT(₦)ACTUAL VALUE(₦)ACTUAL LOSS(₦)
    Mr. P Mr. K Mr. R25,000 30,000 40,000100,000 120,000 150,00030,000 40,000 50,000
    What insurance principle has Mr. R violated if he decides to overstate the actual value of his property?
    1. A.insurable interest
    2. B.uberrimae fidei
    3. C.subrogation
    4. D.indemnity
    Show answer

    Answer: B uberrimae fidei

  3. 3.
    A distinctive advantage of GSM is its
    1. A.cost
    2. B.stability
    3. C.coverage
    4. D.mobility
    Show answer

    Answer: D mobility

  4. 4.
    A form of money that has gone out of use is
    1. A.paper money
    2. B.commodity money
    3. C.foreign money
    4. D.bank money
    Show answer

    Answer: B commodity money

  5. 5.
    A form of money with face value which is greater than the value of the metal contents is
    1. A.bank notes
    2. B.legal tender
    3. C.commodity money
    4. D.token money
    Show answer

    Answer: D token money

  6. 6.
    A person who buys new issues with a view of reselling at a higher price in the near future is referred to as a
    1. A.bear
    2. B.bull
    3. C.dealer
    4. D.stag
    Show answer

    Answer: B bull

  7. 7.
    A person who in consideration for an extra commission takes responsibility for goods sold on credit and in case of default is a
    1. A.commission agent
    2. B.factor
    3. C.broker
    4. D.del credere agent
    Show answer

    Answer: D del credere agent

  8. 8.
    A proforma invoice is not required when
    1. A.quoting for the supply of good
    2. B.dealing regularly with a customer
    3. C.goods are sent on approval
    4. D.final prices are uncertain
    Show answer

    Answer: B dealing regularly with a customer

  9. 9.
    A provision in the charter of a company which gives holders of common stock the first option to purchase additional issues of the firm's common stock is the
    1. A.pre-emptive right
    2. B.over-subscription right
    3. C.ex-dividend right
    4. D.shareholders right
    Show answer

    Answer: A pre-emptive right

  10. 10.
    An activity that involves derivation of raw materials from land and sea is
    1. A.agriculture
    2. B.farming
    3. C.extraction
    4. D.construction
    Show answer

    Answer: C extraction

  11. 11.
    An agency contract must involve
    1. A.a principal and a consumer
    2. B.a principal and an agent
    3. C.a principal and a producer
    4. D.a principal and a third party
    Show answer

    Answer: B a principal and an agent

  12. 12.
    Chibuzor agreed to make a dress for Hauwa with September 20, 1995 as the delivery date, if the dress was not ready on that date, Hauwa could
    1. A.sue chibuzor for specific performance
    2. B.seize another gown from chibuzor's shop
    3. C.regard the contract between then as terminated
    4. D.sue chibuzor for damage
    Show answer

    Answer: A sue chibuzor for specific performance

  13. 13.
    Communication process involves the transmission of a message over a selected channel to the
    1. A.encoder
    2. B.receiver
    3. C.audience
    4. D.sender
    Show answer

    Answer: B receiver

  14. 14.
    Departmentalization is an aspect of
    1. A.directing
    2. B.organizing
    3. C.planning
    4. D.controlling
    Show answer

    Answer: B organizing

  15. 15.
    Given: I. Retail II. Export III. Transport IV. Import V. Insurance VI. Banking and finance VII. Wholesale VIII. Communication. Which of the above are aids to trade?
    1. A.III, V, VI and VIII
    2. B.I, II, III and VI
    3. C.I, III, V, and VI
    4. D.II, V, VI and VII
    Show answer

    Answer: A III, V, VI and VIII

  16. 16.
    Hire purchase is advantageous to the seller in that
    1. A.it elevates his living standard
    2. B.people pay on installment
    3. C.his turnover will increase
    4. D.it enhances high level of patronage
    Show answer

    Answer: D it enhances high level of patronage

  17. 17.
    Inbound tourism occurs when
    1. A.residents of a country travel within it
    2. B.non-residents of a country travel to other countries
    3. C.residents of a country travel to other countries
    4. D.non-residents of a country travel within it
    Show answer

    Answer: C residents of a country travel to other countries

  18. 18.
    Services rendered to the public is provided by
    1. A.domestic servants
    2. B.civil servants
    3. C.government
    4. D.professionals
    Show answer

    Answer: B civil servants

  19. 19.
    The activities aimed at finding customers needs and satisfaction can be described as
    1. A.conceptual marketing
    2. B.macro-marketing
    3. C.socio-marketing
    4. D.micro-marketing
    Show answer

    Answer: A conceptual marketing

  20. 20.
    The art of soap making is an example of
    1. A.tertiary occupation
    2. B.construction occupation
    3. C.primary occupation
    4. D.secondary occupation
    Show answer

    Answer: D secondary occupation

  21. 21.
    The best mode of ensuring that items posted get to the named addresses is through
    1. A.recorded delivery
    2. B.certificate of posting
    3. C.registered mail
    4. D.express mail
    Show answer

    Answer: C registered mail

  22. 22.
    The conversion of raw materials into finished products creates
    1. A.form utility
    2. B.time utility
    3. C.marginal utility
    4. D.place utility
    Show answer

    Answer: A form utility

  23. 23.
    The excess of the assets over the liabilities of a business is called
    1. A.capital employed
    2. B.net worth
    3. C.working capital
    4. D.initial capital
    Show answer

    Answer: B net worth

  24. 24.
    The function of a merchant wholesaler is to
    1. A.find markets for producers' finished goods
    2. B.bring buyers and sellers together
    3. C.possess title to the goods, store and sell to retailers
    4. D.buy in bulk, store and sell to retailers as desired
    Show answer

    Answer: C possess title to the goods, store and sell to retailers

  25. 25.
    The instruments of credit include
    1. A.billboards and postal stamps
    2. B.payment vouchers and statement of account
    3. C.bills of exchange and salary voucher
    4. D.bills of exchange and promissory notes
    Show answer

    Answer: D bills of exchange and promissory notes

  26. 26.
    The macro-environmental forces and trends which are a constraint on business operations are referred to as
    1. A.internal factors
    2. B.external factors
    3. C.economic factors
    4. D.technical factors
    Show answer

    Answer: B external factors

  27. 27.
    The main advantage of a sole trader is the freedom to?
    1. A.employ anyone he likes
    2. B.take quick decision
    3. C.seek advise from any source
    4. D.plough all the profits
    Show answer

    Answer: B take quick decision

  28. 28.
    The main objective of a trade association is to
    1. A.protect its members against litigation
    2. B.protect its members against victimization
    3. C.boost the trade of its members
    4. D.secure credit for its members
    Show answer

    Answer: B protect its members against victimization

  29. 29.
    The major determinant of fire insurance premium is the
    1. A.usefulness of the property to the owner
    2. B.type and structure of the property to be insured
    3. C.owner of the property to be insured
    4. D.extent of fire damage anticipated
    Show answer

    Answer: B type and structure of the property to be insured

  30. 30.
    The major objective of corporate mergers is to?
    1. A.minimize the effect of taxation
    2. B.increase financial advantage
    3. C.enhance economies of sale
    4. D.facilitate profit maximization
    Show answer

    Answer: C enhance economies of sale

  31. 31.
    The payment made periodically in respect of an insurance policy entered into is known as
    1. A.surrender
    2. B.bond
    3. C.premium
    4. D.commission
    Show answer

    Answer: C premium

  32. 32.
    The primary memory component of a computer is the
    1. A.console
    2. B.cache
    3. C.compliers
    4. D.assemblers
    Show answer

    Answer: B cache

  33. 33.
    The principle of span of control stipulates that?
    1. A.The number of employees reporting to one superior should be kept to a workable maximum
    2. B.An employee should report to only one superior
    3. C.Managers must demand accountability from their subordinates
    4. D.Resources have to be economized within the various divisions
    Show answer

    Answer: A The number of employees reporting to one superior should be kept to a workable maximum

  34. 34.
    The transmission of the telephone services from one country to another is facilitated by
    1. A.international facility
    2. B.internet services
    3. C.interconnectivity
    4. D.communication satellite
    Show answer

    Answer: D communication satellite

  35. 35.
    The type of communication from a superior to a subordinate in an organization is referred to as
    1. A.downward communication
    2. B.upward communication
    3. C.lateral communication
    4. D.horizontal communication
    Show answer

    Answer: A downward communication

  36. 36.
    Use the information below to answer this question A B C Balance Sheet as at 31/12/2004
    ₦ Share capital 200,000 Reserves 100,000 Long term liabilities 40,000 Current liabilities 30,000 370,000₦ Fixed assets 180,000 Investment 100,000 Current assets 50,000 Fictitious assets 40,000 370,000
    The total sum of financing short term projects is
    1. A.₦ 30,000
    2. B.₦200,000
    3. C.₦70,000
    4. D.₦40,000
    Show answer

    Answer: B ₦200,000

  37. 37.
    Use the information below to answer this question A B C Balance Sheet as at 31/12/2004
    ₦ Share capital 200,000 Reserves 100,000 Long term liabilities 40,000 Current liabilities 30,000 370,000₦ Fixed assets 180,000 Investment 100,000 Current assets 50,000 Fictitious assets 40,000 370,000
    What is the capital employed?
    1. A.₦ 340,000
    2. B.₦ 200,000
    3. C.₦ 300,000
    4. D.₦ 170,000
    Show answer

    Answer: C ₦ 300,000

  38. 38.
    When two or more companies agree to execute a project too large for one to handle, this is referred to as
    1. A.an amalgamation
    2. B.a cartel
    3. C.a consortium
    4. D.a merger
    Show answer

    Answer: C a consortium

  39. 39.
    Which of the following countries are members of the Lake Chad Basin Commission?
    1. A.Niger and Cameroon
    2. B.Benin and Nigeria
    3. C.Nigeria and Mali
    4. D.Chad and Benin
    Show answer

    Answer: A Niger and Cameroon

  40. 40.
    Which of the following has power to order withdrawal of a particular food item from circulation?
    1. A.Federal High Courts in Nigeria
    2. B.Standard Organization of Nigeria
    3. C.Local Government Health Inspectors
    4. D.Food and Drugs Department of the Federal Ministry of Health
    Show answer

    Answer: C Local Government Health Inspectors

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