Commerce past questions: JAMB UTME 2022

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

Sit this paper

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

1.
A business unit in which savings of members are lent to others is a
1. A.consumer cooperative society
2. B.producer cooperative society
3. C.credit and thrift society
4. D.wholesale cooperative society
Show answerHide answer
Answer: C credit and thrift society
2.
A cheque is specially crossed if
1. A.the name of the account holder is written between two parallel lines drawn across it
2. B.it could be paid over the counter
3. C.the name of the bank is written between two parallel lines drawn across it
4. D.only two parallel lines are drawn across it
Show answerHide answer
Answer: C the name of the bank is written between two parallel lines drawn across it
3.
A cheque that could be cashed over the counter by the payee is
1. A.certified cheque
2. B.crossed cheque
3. C.open cheque
4. D.bank draft
Show answerHide answer
Answer: C open cheque
4.
A contract will not be discharge through
1. A.acceptance
2. B.agreement
3. C.breach
4. D.performance
Show answerHide answer
Answer: A acceptance
5.
A country's visible balance of payment is made up of
1. A.interest on loans to foreign countries
2. B.profit from investment abroad
3. C.earnings from goods exported
4. D.dividend earned from companies
Show answerHide answer
Answer: C earnings from goods exported
6.
A discount deducted from the invoice price of goods to enable the retailer to make profit
1. A.cash discount
2. B.functional discount
3. C.trade discount
4. D.seasonal discount
Show answerHide answer
Answer: A cash discount
7.
A document issued by the seller's own courier and signed by the customer to acknowledge receipt of the goods is
1. A.advice note
2. B.consignment note
3. C.delivery note
4. D.freight note
Show answerHide answer
Answer: B consignment note
8.
A document used to ensure correct payment of duty at the importing country is
1. A.documentary credit
2. B.consular invoice
3. C.certificate of origin
4. D.bill of lading
Show answerHide answer
Answer: D bill of lading
9.
A feature of supermarkets which distinguishes it from other large scale retail outlets is that items sold are
1. A.mainly household goods
2. B.mainly industrial goods
3. C.delivered by post
4. D.one line of products
Show answerHide answer
Answer: A mainly household goods
10.
A group of sellers who pool their resources to buy goods in large quantities and sell to its members is a
1. A.wholesaler cooperative society
2. B.thrift and credit society
3. C.consumer cooperative society
4. D.chamber of commerce
Show answerHide answer
Answer: A wholesaler cooperative society
11.
A medium for intra-departmental communication is all except
1. A.intercom
2. B.notice board
3. C.radiophone
4. D.circular
Show answerHide answer
Answer: C radiophone
12.
A paid presentation about a product with a view to encouraging purchases by an identifiable sponsor is
1. A.publicity
2. B.personal selling
3. C.sales promotion
4. D.advertisement
Show answerHide answer
Answer: D advertisement
13.
A partner who contributes only his name to the formation of a partnership is
1. A.a nominal partner
2. B.a limited partner
3. C.a general partner
4. D.an active partner
Show answerHide answer
Answer: A a nominal partner
14.
A person engaged for the purpose of bringing his principal and a third party into a contractual relation is
1. A.an arbiter
2. B.an auctioneer
3. C.an agent
4. D.a middlemen
Show answerHide answer
Answer: C an agent
15.
A request for goods from another country by an importer would be made using
1. A.an invoice
2. B.an indent
3. C.an order
4. D.a quotation
Show answerHide answer
Answer: B an indent
16.
A retail business that sells goods by post, using catalogue is a
1. A.chain store
2. B.department store
3. C.mail order firm
4. D.shopping mail
Show answerHide answer
Answer: C mail order firm
17.
A retail store that sells a single product from a particular manufacturer is a
1. A.tied shop
2. B.shopping mail
3. C.hypermarket
4. D.chain store
Show answerHide answer
Answer: D chain store
18.
A specially-designed mode of transport for conveying liquid and gas is a
1. A.coaster
2. B.tanker
3. C.liner
4. D.ferry
Show answerHide answer
Answer: B tanker
19.
Advertisement which is geared towards a particular audience is
1. A.direct advertising
2. B.indirect advertising
3. C.mass advertising
4. D.persuasive advertising
Show answerHide answer
Answer: A direct advertising
20.
An advantage of rail transport is that it
1. A.is less expensive to maintain
2. B.is not prone to delays
3. C.carries bulky and heavy goods
4. D.enhances door-to-door delivery
Show answerHide answer
Answer: C carries bulky and heavy goods
21.
An agreement that is enforceable in law is
1. A.an offer
2. B.a consideration
3. C.a contract
4. D.an acceptance
Show answerHide answer
Answer: C a contract
22.
An article used as a means of exchange in the early days of trade in West Africa was
1. A.cedis
2. B.cowrie
3. C.dalasi
4. D.naira
Show answerHide answer
Answer: B cowrie
23.
An association formed by computer distributors to safeguard and promote their interest is a
1. A.chamber of commerce
2. B.cooperative society
3. C.trade association
4. D.trade union
Show answerHide answer
Answer: C trade association
24.
An insurance policy which is not a contract of indemnity is
1. A.burglary insurance
2. B.fire insurance
3. C.life insurance
4. D.motor insurance
Show answerHide answer
Answer: C life insurance
25.
An internal source of finance to an enterpreneur is
1. A.trade
2. B.retained earning
3. C.overdraft
4. D.debenture
Show answerHide answer
Answer: B retained earning
26.
An undertaking to repair a customer's vehicle for a certain period after it has been sold is
1. A.after-sales service
2. B.marketing mix
3. C.market segmentation
4. D.sales promotion
Show answerHide answer
Answer: A after-sales service
27.
Average stock is derived by adding
1. A.closing stock to purchase divided by 2
2. B.closing stock to opening stock
3. C.opening stock to closing stock divided by 2
4. D.opening stock to purchases
Show answerHide answer
Answer: C opening stock to closing stock divided by 2
28.
Central banks sell treasury bills to the public to
1. A.increase cash in the banking system
2. B.raise revenue for commerical banks
3. C.raise revenue for private investors
4. D.reduce cash in circulation
Show answerHide answer
Answer: D reduce cash in circulation
29.
Commerce is defined as
1. A.buying and selling of goods and services only
2. B.all activities in the distribution and exchange of goods and services
3. C.all activities involved in the production of goods and services
4. D.transporting and warehousing of goods only
Show answerHide answer
Answer: B all activities in the distribution and exchange of goods and services
30.
Consumers could be encouraged to purchase a company's product through
1. A.research
2. B.planning
3. C.distribution
4. D.advertisement
Show answerHide answer
Answer: D advertisement
31.
Dealers in stock exchange such as bulls, bears and stags are categorized as
1. A.actuaries
2. B.promoters
3. C.speculators
4. D.underwriter
Show answerHide answer
Answer: C speculators
32.
Examples of current assets are
1. A.cash and trade debtors
2. B.cash and trade creditors
3. C.trade debtors, trade creditors and cash
4. D.trade creditors and trade debtors
Show answerHide answer
Answer: A cash and trade debtors
33.
Goods bought into the country for sale are the country's
1. A.invisible imports
2. B.invisible exports
3. C.visible imports
4. D.visible exports
Show answerHide answer
Answer: C visible imports
34.
One advantage of small scale retail outlets is
1. A.availability of self service facilities
2. B.ability to buy in bulk
3. C.easy acess to large amount of capital
4. D.personal attention to customers
Show answerHide answer
Answer: D personal attention to customers
35.
One of the functions of a trade association is to
1. A.pay members salaries
2. B.promote members' welfare
3. C.provide loans to members
4. D.provide employment for members
Show answerHide answer
Answer: B promote members' welfare
36.
One of the functions of commerical banks that cannot be performed by central banks is
1. A.collection of old notes
2. B.collection of deposits from the public
3. C.issuance of treasury bills
4. D.printing of bank notes
Show answerHide answer
Answer: B collection of deposits from the public
37.
One of the objectives of the Niger Basin Commission is to
1. A.regulate the movement of citizens across borders
2. B.improve tariff and quota on non-members
3. C.regulate the movement of cargo along the river
4. D.streaming the construction of dams on the river
Show answerHide answer
Answer: D streaming the construction of dams on the river
38.
One of the products of the construction industry is a
1. A.piece of cloth
2. B.bag of cement
3. C.television
4. D.chair
Show answerHide answer
Answer: B bag of cement
39.
Payment made to a carrier for transportation of goods is
1. A.freight
2. B.fee
3. C.fare
4. D.duty
Show answerHide answer
Answer: A freight
40.
Sea vessels that do not operate on regular times and routes are
1. A.tramps
2. B.ocean liners
3. C.container ships
4. D.ferries
Show answerHide answer
Answer: B ocean liners
41.
The activity which improves the appearance of a product and also aimed at protecting it is
1. A.advertising
2. B.grading
3. C.labelling
4. D.packaging
Show answerHide answer
Answer: D packaging
42.
The bank which acts as the lender of last resort is the
1. A.Central bank
2. B.Commercial bank
3. C.Merchant bank
4. D.Mortegage bank
Show answerHide answer
Answer: A Central bank
43.
The commission on a postal order is
1. A.tariff
2. B.poundage
3. C.brokerage
4. D.fee
Show answerHide answer
Answer: B poundage
44.
The difference between a country's imports and exports of goods in a particular year is
1. A.terms of trade
2. B.terms of payment
3. C.balance of payment
4. D.balance of trade
Show answerHide answer
Answer: C balance of payment
45.
The document issued by a public company allowing it to commence business is the
1. A.Articles of Association
2. B.Certificate of Incorporation
3. C.Memorandum of Association
4. D.Certificate of Trading
Show answerHide answer
Answer: D Certificate of Trading
46.
The face-to-face meeting of the seller with the buyer for the purpose of making sales is
1. A.mass selling
2. B.impulse buying
3. C.personal selling
4. D.sale promotion
Show answerHide answer
Answer: C personal selling
47.
The growth of commerce is not enhanced by
1. A.development of modern forms of production
2. B.government participation in business
3. C.high population growth
4. D.low per capita income
Show answerHide answer
Answer: D low per capita income
48.
The incentive given to a buyer to encourage prompt payment is
1. A.cash discount
2. B.seasonal discount
3. C.quantity discount
4. D.trade discount
Show answerHide answer
Answer: A cash discount
49.
The issue of prospectus by a company is an invitation to members of the public to
1. A.subscribe to the company's shares
2. B.attend the company's Annual general Meeting
3. C.buy the company's products
4. D.attend the company's board meeting
Show answerHide answer
Answer: A subscribe to the company's shares
50.
The last link in a channel of distribution is the
1. A.wholesaler
2. B.retailer
3. C.consumer
4. D.agent
Show answerHide answer
Answer: C consumer
51.
The law by which a seller transfers the property in goods to a buyer at an agreed price is the
1. A.Weights and Measure Act
2. B.Trade Description Act
3. C.Sale of Goods Act
4. D.Foods and Drugs Act
Show answerHide answer
Answer: C Sale of Goods Act
52.
The management function which involves measuring outcomes and taking corrective action to reduce error is
1. A.staffing
2. B.organizing
3. C.directing
4. D.controlling
Show answerHide answer
Answer: D controlling
53.
The marketing concept emphasizes
1. A.sales of goods directly to customers
2. B.use of promotional tools to stimulate sale
3. C.mass production of goods
4. D.consumer's satisfaction at a profit
Show answerHide answer
Answer: D consumer's satisfaction at a profit
54.
The marketing term which regards the consumer as king that must be satisfied is
1. A.market segmentation
2. B.market research
3. C.marketing concept
4. D.marketing mix
Show answerHide answer
Answer: C marketing concept
55.
The part of issued share capital that the company has asked the subscribers to pay for
1. A.authorised capital
2. B.called-up capital
3. C.nominal capital
4. D.paid-up capital
Show answerHide answer
Answer: B called-up capital
56.
The principle which prevents an insured from receiving a claim that is more than the value of the loss, if the property is insured by more than one company is
1. A.indemnity
2. B.contribution
3. C.proximate cause
4. D.uberrimae fidei
Show answerHide answer
Answer: B contribution
57.
The provision of services is classified under
1. A.batch production
2. B.flow production
3. C.secondary production
4. D.tertiary production
Show answerHide answer
Answer: D tertiary production
58.
The quality of money which makes it possible to buy goods in small quantities is
1. A.portability
2. B.homogeneity
3. C.divisibility
4. D.durability
Show answerHide answer
Answer: C divisibility
59.
The resources put together to create goods and services are
1. A.working capital
2. B.producer goods
3. C.factors of production
4. D.consumer goods
Show answerHide answer
Answer: C factors of production
60.
The right to buy or sell stock in the stock exchange within a stipulated period is
1. A.option
2. B.contango
3. C.backwardation
4. D.brokerage
Show answerHide answer
Answer: A option
61.
The safe keeping of goods produced until they are needed is
1. A.hoarding
2. B.marketing
3. C.packaging
4. D.warehousing
Show answerHide answer
Answer: D warehousing
62.
The service of a retailer is part of production because it
1. A.creates a link between consumers and producers
2. B.enables finished goods to reach consumers
3. C.increases consumers standard of living
4. D.is a commercial occupation
Show answerHide answer
Answer: B enables finished goods to reach consumers
63.
The share value stated on a share certificate is
1. A.above par value
2. B.below par value
3. C.market value
4. D.nominal value
Show answerHide answer
Answer: D nominal value
64.
The type of occupation that a broker belongs to is
1. A.commercial
2. B.construction
3. C.extraction
4. D.manufacturing
Show answerHide answer
Answer: A commercial
65.
Use the information below to answer questions 13 and 14
#
Sales 50,000.00
Debtors 10,000.00
Cash in hand 5,000.00
Opening stock 30,000.00
Creditors 8,000.00
Purchases 16,000.00
Overdraft 12,000.00
Closing stock 10,000.00
1. A.#35,000.00
2. B.#20,000.00
3. C.#15,000.00
4. D.#14,000.00
Show answerHide answer
Answer: D #14,000.00
66.
Use the information below to answer questions 13 and 14
#
Sales 50,000.00
Debtors 10,000.00
Cash in hand 5,000.00
Opening stock 30,000.00
Creditors 8,000
1. A.#35,000.00
2. B.#20,000.00
3. C.#5,000.00
4. D.#14,000.00
Show answerHide answer
Answer: C #5,000.00
67.
When a company insures the lives of all its employees collectively, the policy is
1. A.accident insurance
2. B.fleet insurance
3. C.fidelity guarantee insurance
4. D.group insurance
Show answerHide answer
Answer: D group insurance
68.
When a share with a nominal value of #50 is quoted at #70, it is being sold
1. A.cum div
2. B.ex-div
3. C.at a discount
4. D.at a premium
Show answerHide answer
Answer: D at a premium
69.
When the cost of sales is divided by the average stock, the result is
1. A.gross profit
2. B.net profit
3. C.rate of turnover
4. D.working capital
Show answerHide answer
Answer: C rate of turnover
70.
Which of the following activities is not an example of the extractive industry?
1. A.weaving
2. B.quarrying
3. C.hunting
4. D.fishing
Show answerHide answer
Answer: A weaving
71.
Which of the following documents would a shareholder inspect to know his voting rights?
1. A.Articles of Association
2. B.Certificate of Incorporation
3. C.Certificate of Trading
4. D.Memorandum of Association
Show answerHide answer
Answer: A Articles of Association
72.
Which of the following groups would advocate for the supply of constant electricity to households?
1. A.Consumer's association
2. B.Credit union
3. C.Employer's association
4. D.Labour union
Show answerHide answer
Answer: A Consumer's association
73.
Which of the following is not a characteristic of a commercial bank?
1. A.Established as limited liability company
2. B.Established by individuals or organizations
3. C.Established to issue bank notes
4. D.Established with the view of making profit
Show answerHide answer
Answer: C Established to issue bank notes
74.
Which of the following is not a component of the marketing mix?
1. A.product
2. B.production
3. C.promotion
4. D.place
Show answerHide answer
Answer: B production
75.
Which of the following is not a function of a consumer association?
1. A.Ensuring that consumers buy quality goods
2. B.Educating consumers on their rights
3. C.Penalizing importers of fake goods
4. D.Ensuring that fair prices are charged
Show answerHide answer
Answer: C Penalizing importers of fake goods
76.
Which of the following is not a right of a consumer?
1. A.Right to a fair hearing
2. B.Right to buy on credit
3. C.Right to obtain replacement
4. D.Right to safe product
Show answerHide answer
Answer: B Right to buy on credit
77.
Which of the following is not an objective of ECOWAS?
1. A.promotion of a common language
2. B.improvement of infrastructural facilities
3. C.encouragement of free movement of people
4. D.encouragement of trade among member countries
Show answerHide answer
Answer: A promotion of a common language
78.
Which of the following organizations provide essential goods and services at low cost to citizens?
1. A.Thrift societies
2. B.Public enterprises
3. C.Private companies
4. D.Cooperative societies
Show answerHide answer
Answer: B Public enterprises

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

More free Commerce papers

JAMB Commerce 1994–2020 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

#
Sales	50,000.00
Debtors	10,000.00
Cash in hand	5,000.00
Opening stock	30,000.00
Creditors	8,000.00
Purchases	16,000.00
Overdraft	12,000.00
Closing stock	10,000.00