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Commerce past questions: JAMB UTME 2023

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

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

  1. 1.
    ₦₦
    Stock 1/120,000Net sales370,000
    Add purchases250,000
    Cost of goods available for sale270,000
    Less stock 31/1240,000
    Cost of goods sold230,000
    Rent expenses35,000
    Calculate the net profit
    1. A.₦35,000
    2. B.₦115,000
    3. C.₦105,000
    4. D.₦40,000
    Show answer

    Answer: C ₦105,000

  2. 2.
    ₦₦
    Stock 1/120,000Net Sales370,000
    Add purchases250,000
    Cost of goods available for sale270,000
    Less stock 31/1240,000
    Cost of goods sold230,000
    Rent expenses35,000
    Find the gross profit
    1. A.₦150,000
    2. B.₦370,000
    3. C.₦230,000
    4. D.₦140,000
    Show answer

    Answer: D ₦140,000

  3. 3.
    A bill of exchange already accepted can be discounted by the holder in
    1. A.the central bank
    2. B.his bank
    3. C.at least two banks
    4. D.any bank
    Show answer

    Answer: D any bank

  4. 4.
    A business organization that exploits the capabilities of a member to remedy the weakness of another is a
    1. A.joint venture
    2. B.partnership
    3. C.nominal partnership
    4. D.cooperative
    Show answer

    Answer: D cooperative

  5. 5.
    A demerit of communication is that it
    1. A.increase the cost of goods in transit
    2. B.give room for distortion of fact
    3. C.hinder quick reception of messages over a long distance
    4. D.makes payment for goods cumbersome
    Show answer

    Answer: B give room for distortion of fact

  6. 6.
    A demonstration of social responsibility by a business is the payment of
    1. A.interests on loans
    2. B.taxes to government
    3. C.dividends to shareholders
    4. D.premium on insurance
    Show answer

    Answer: B taxes to government

  7. 7.
    A document that lists the goods that are being sent from one place to another is
    1. A.mail transfer
    2. B.shipping note
    3. C.consular invoice
    4. D.bill of lading
    Show answer

    Answer: D bill of lading

  8. 8.
    A factor necessary for siting of a warehouse is nearness to
    1. A.labour
    2. B.consumers
    3. C.capital
    4. D.raw materials
    Show answer

    Answer: B consumers

  9. 9.
    A government policy that encourages transfer of ownership from foreigners to indigenes of the country is known as
    1. A.indigenisation
    2. B.commercialisation
    3. C.nationalisation
    4. D.privatisation
    Show answer

    Answer: A indigenisation

  10. 10.
    A major function of chamber of commerce is
    1. A.promoting both home and foreign trade
    2. B.increasing productivity
    3. C.promoting trade in a particular line
    4. D.maximizing profit
    Show answer

    Answer: A promoting both home and foreign trade

  11. 11.
    A major function of trade association is to
    1. A.foster cooperation among members
    2. B.establish a link among member
    3. C.assist members to buy cars
    4. D.help individuals to set up small business
    Show answer

    Answer: A foster cooperation among members

  12. 12.
    A major merit of the retaining middlemen is to
    1. A.regulate price for manufacturers
    2. B.stock perishable goods
    3. C.pay cash to the bank for manufacturers
    4. D.stock goods produced by different manufacturer
    Show answer

    Answer: D stock goods produced by different manufacturer

  13. 13.
    A major objective of all business resources is
    1. A.human relation
    2. B.profit making
    3. C.public relation
    4. D.profit sharing
    Show answer

    Answer: B profit making

  14. 14.
    A partnership is dissolved due to
    1. A.resignation of an employee
    2. B.liquidity of the firm
    3. C.death of the employee
    4. D.insanity of a partner
    Show answer

    Answer: D insanity of a partner

  15. 15.
    A system where customer patronage is sought by producing what they need is referred to as
    1. A.sales promotion
    2. B.product promotion
    3. C.market promotion
    4. D.market orientation
    Show answer

    Answer: D market orientation

  16. 16.
    An advantage of division of labour is
    1. A.productivity and total output is increased
    2. B.monopoly od task is eliminated
    3. C.interdependence of workers increase remuneration
    4. D.loss of individual craftmanship is minimized
    Show answer

    Answer: A productivity and total output is increased

  17. 17.
    An agent who has to sell perishable goods without the prior authority of the owner becomes an agent by
    1. A.estoppel
    2. B.conduct
    3. C.necessity
    4. D.ratification
    Show answer

    Answer: C necessity

  18. 18.
    An agreement that is enforceable in law is
    1. A.a contract
    2. B.an acceptance
    3. C.an offer
    4. D.a consideration
    Show answer

    Answer: A a contract

  19. 19.
    An announcement of a person's willingness to enter into a contract is referred to as
    1. A.an acceptance
    2. B.a proxy
    3. C.consideration
    4. D.an offer
    Show answer

    Answer: D an offer

  20. 20.
    An example of a cartel is
    1. A.ECOWAS
    2. B.AU
    3. C.OPEC
    4. D.EU
    Show answer

    Answer: C OPEC

  21. 21.
    An example of extractive occupation is
    1. A.driving
    2. B.teaching
    3. C.banking
    4. D.mining
    Show answer

    Answer: D mining

  22. 22.
    An individual that links the producer with the retailer is
    1. A.an agent
    2. B.a wholesaler
    3. C.a principal
    4. D.an entreprenuer
    Show answer

    Answer: B a wholesaler

  23. 23.
    Another name or term for a dishonoured cheque is
    1. A.a bearer cheque
    2. B.an open cheque
    3. C.a bounced cheque
    4. D.an order cheque
    Show answer

    Answer: C a bounced cheque

  24. 24.
    Any activity directed at conveying commodities to buyers is an aspect of
    1. A.delivering
    2. B.advertising
    3. C.selling
    4. D.marketing
    Show answer

    Answer: D marketing

  25. 25.
    At the collapse of a business enterprises, the person appointed to dispose off the assets is called
    1. A.an auctioneer
    2. B.an auditor
    3. C.a broker
    4. D.a liquidator
    Show answer

    Answer: D a liquidator

  26. 26.
    Current account holders withdraw money through
    1. A.transfer
    2. B.credit cards
    3. C.withdrawal form
    4. D.cheque
    Show answer

    Answer: D cheque

  27. 27.
    Factors considered when setting up a retail business is one of the following
    1. A.capital, experience and trading
    2. B.experience, term of trade and trading
    3. C.capital, trading and term of trade
    4. D.capital, type of goods and source of supply
    Show answer

    Answer: D capital, type of goods and source of supply

  28. 28.
    Good and services transferred from seller to buyer without immediate payment is referred to as
    1. A.leasing
    2. B.hire purchase
    3. C.credit sale
    4. D.mutual understanding
    Show answer

    Answer: C credit sale

  29. 29.
    I. Its unlimited nature II. The number of partners III. The withdrawal of a major of partner IV. The bearing of risk Which of these is both merit and demerit in partnership?
    1. A.III and IV
    2. B.I only
    3. C.II only
    4. D.I and II
    Show answer

    Answer: C II only

  30. 30.
    If a business uses part of its profit to develop the area where it operates, the business is fulfilling its
    1. A.marketing responsibilities
    2. B.managerial responsibilities
    3. C.economic responsibilities
    4. D.social responsibilities
    Show answer

    Answer: D social responsibilities

  31. 31.
    In law of contract, a counter offer operates as
    1. A.an acceptance
    2. B.a rejection
    3. C.an offer
    4. D.a contract
    Show answer

    Answer: B a rejection

  32. 32.
    Insurance against burglary is an example of
    1. A.non-indemnity insurance
    2. B.non-insurable risk
    3. C.indemnity insurance
    4. D.fidelity guarantee insurance
    Show answer

    Answer: C indemnity insurance

  33. 33.
    Land as a factor of production does not vary in
    1. A.cost
    2. B.quality
    3. C.quantity
    4. D.nature
    Show answer

    Answer: C quantity

  34. 34.
    Money is generally acceptable for transaction due to
    1. A.the central bank's governor's signature
    2. B.the rule of the law
    3. C.its acceptability in the global market
    4. D.the legal backing
    Show answer

    Answer: D the legal backing

  35. 35.
    One disadvantages of advertising is that it
    1. A.could be misleading
    2. B.decreases sales
    3. C.reduces profit
    4. D.causes over stocking
    Show answer

    Answer: A could be misleading

  36. 36.
    One of the functions of a retailer is the
    1. A.breaking of bulk
    2. B.provision of credit facilities to relations
    3. C.provision of jobs for customers
    4. D.financing of production activities
    Show answer

    Answer: A breaking of bulk

  37. 37.
    One of the major problems of a sole properitor is sourcing for
    1. A.labour
    2. B.machineries
    3. C.raw materials
    4. D.funds
    Show answer

    Answer: D funds

  38. 38.
    One of these is a current asset
    1. A.machineries
    2. B.fittings
    3. C.stock
    4. D.motor vehicles
    Show answer

    Answer: C stock

  39. 39.
    Parts payments made on alloted shares by subscribers is usually the
    1. A.authorized capital
    2. B.subscribed capital
    3. C.called -up capital
    4. D.issued capital
    Show answer

    Answer: C called -up capital

  40. 40.
    Risk bearing in business organisation is a function of the
    1. A.manager
    2. B.employee
    3. C.entrepreneur
    4. D.customers
    Show answer

    Answer: C entrepreneur

  41. 41.
    The act of selling in a foreign market at a price lower than the cost price is called
    1. A.dumping
    2. B.under sale
    3. C.hedging
    4. D.fair trading
    Show answer

    Answer: A dumping

  42. 42.
    The activity which entails buying of goods in bulk and selling in small quantities to retailers is
    1. A.wholesaling
    2. B.retailing
    3. C.merchandising
    4. D.assembling
    Show answer

    Answer: A wholesaling

  43. 43.
    The board of directors of public enterprise is appointed by who?
    1. A.government
    2. B.management
    3. C.employees
    4. D.shareholders
    Show answer

    Answer: A government

  44. 44.
    The business unit that applies the principle of one man vote is
    1. A.public company
    2. B.partnership
    3. C.co-operative society
    4. D.sole properitorship
    Show answer

    Answer: C co-operative society

  45. 45.
    The Central Bank Monetary policy instrument by which it buys and sells securities is called
    1. A.open market operation
    2. B.bank credit
    3. C.cash reserve ratio
    4. D.bank rate
    Show answer

    Answer: A open market operation

  46. 46.
    The concept that refers to the sale, transfer or exchange of goods and services is
    1. A.trade
    2. B.tariff
    3. C.industry
    4. D.marketing
    Show answer

    Answer: A trade

  47. 47.
    The difference between the central bank and commercial bank is that the former
    1. A.serves as lender of last resort
    2. B.discount treasury bills
    3. C.saves valuable of individual
    4. D.give loans to the public
    Show answer

    Answer: A serves as lender of last resort

  48. 48.
    The document that explains the types of shares available for sale to the public is
    1. A.a prospectus
    2. B.an invoice
    3. C.closed indent
    4. D.an open indent
    Show answer

    Answer: A a prospectus

  49. 49.
    The duties paid on goods produced locally is
    1. A.export duty
    2. B.excise duty
    3. C.Ad-valorem duty
    4. D.quota
    Show answer

    Answer: B excise duty

  50. 50.
    The effects of devaluation includes all except
    1. A.expansion of local industries
    2. B.increase in import
    3. C.increase in standard of living
    4. D.exports become cheaper
    Show answer

    Answer: C increase in standard of living

  51. 51.
    The fees charged on postal order by the post office is
    1. A.premium
    2. B.poundage
    3. C.interest
    4. D.brokerage
    Show answer

    Answer: B poundage

  52. 52.
    The four P's of marketing are also known as
    1. A.marketing mix
    2. B.product mix
    3. C.promotion mix
    4. D.advertising mix
    Show answer

    Answer: A marketing mix

  53. 53.
    The function of commerce in relation to production is
    1. A.helping in the extraction of raw materials from nature
    2. B.yielding result
    3. C.providing a link between the different stage of conversion of good
    4. D.satisfying
    Show answer

    Answer: D satisfying

  54. 54.
    The government agency involved in issuing of export licences is
    1. A.Nigeria Port Authority
    2. B.Customs and Excise Authority
    3. C.Nigeria Export Promotion Council
    4. D.Nigeria Export Processing Zone
    Show answer

    Answer: C Nigeria Export Promotion Council

  55. 55.
    The macro-environmental forces and trends which are a constraint on business operations are referred to as
    1. A.internal factors
    2. B.technological factors
    3. C.economic factors
    4. D.external factors
    Show answer

    Answer: D external factors

  56. 56.
    The maximum number of shareholders in a public liability company is
    1. A.twenty
    2. B.one hundred
    3. C.fifty
    4. D.unlimited
    Show answer

    Answer: D unlimited

  57. 57.
    The Nigerian Stock Exchange consist of
    1. A.primary and secondary -tier market
    2. B.commercial and mortgage market
    3. C.secondary and primary market
    4. D.money and commodities market
    Show answer

    Answer: C secondary and primary market

  58. 58.
    The organised effort of consumers to protect themselves against the unfair practices of businessmen is known as
    1. A.picketing
    2. B.stroke
    3. C.consumerism
    4. D.demonstration
    Show answer

    Answer: C consumerism

  59. 59.
    The part of the computer that has the capacity to interpret instruction is
    1. A.central processing unit
    2. B.universal power storage
    3. C.monitor
    4. D.keyboard
    Show answer

    Answer: A central processing unit

  60. 60.
    The payment made by a speculator to the buyer when he is unable to deliver stocks on the agreed date is
    1. A.contango
    2. B.arbitrage
    3. C.backwardation
    4. D.franco
    Show answer

    Answer: C backwardation

  61. 61.
    The principle which requires the insurance company to disclose to the proposer all material facts of the risk to be covered is
    1. A.uberrimae fidei
    2. B.subrogation
    3. C.contribution
    4. D.proximate cause
    Show answer

    Answer: A uberrimae fidei

  62. 62.
    The process of buying, selling and distribution of goods and services is
    1. A.marketing concept
    2. B.marketing
    3. C.retail trade
    4. D.commerce
    Show answer

    Answer: D commerce

  63. 63.
    The process of converting a non-profit making organisation to a profit-making business is
    1. A.commercialisation
    2. B.deregulation
    3. C.indigenisation
    4. D.privatisation
    Show answer

    Answer: D privatisation

  64. 64.
    The process of dividing tasks into jobs and departments and delegating authority is known as
    1. A.organizing
    2. B.staffing
    3. C.directing
    4. D.leading
    Show answer

    Answer: A organizing

  65. 65.
    The production of goods and services in anticipation of demand is made possible by
    1. A.warehousing
    2. B.packaging
    3. C.branding
    4. D.advertising
    Show answer

    Answer: A warehousing

  66. 66.
    The rate where a country's exports exchange for its imports is called
    1. A.terms of trade
    2. B.balance of trade
    3. C.terms of payments
    4. D.balance of payments
    Show answer

    Answer: A terms of trade

  67. 67.
    The scope commerce is limited to
    1. A.home and foreign trade
    2. B.trade and aids-to-trade
    3. C.wholesale and retail trade
    4. D.wholesale and entreport trade
    Show answer

    Answer: B trade and aids-to-trade

  68. 68.
    The stock exchange is a market where
    1. A.short-term securities are sold
    2. B.medium term securities are sold
    3. C.all types of securities are sold
    4. D.long term securities are sold
    Show answer

    Answer: C all types of securities are sold

  69. 69.
    The type of activity which turns processed raw materials into consumer and industrial goods is described as
    1. A.extractive
    2. B.processing
    3. C.constructive
    4. D.manufacturing
    Show answer

    Answer: D manufacturing

  70. 70.
    The type of letters that are delivered through the normal mail or by airmail express service is referred to as
    1. A.express letters
    2. B.registered letters
    3. C.inland letters
    4. D.airmail letters
    Show answer

    Answer: C inland letters

  71. 71.
    What is a quota?
    1. A.ban on all imported goods
    2. B.a physical restriction placed on quantity of goods that can be imported
    3. C.tax paid on goods produced within a country
    4. D.tax paid on goods produced outside a country
    Show answer

    Answer: B a physical restriction placed on quantity of goods that can be imported

  72. 72.
    Which is the fastes means of transportation?
    1. A.road
    2. B.air
    3. C.rail
    4. D.water
    Show answer

    Answer: B air

  73. 73.
    Which of the following attracts only interest but leaves the capital unpaid?
    1. A.a development bond
    2. B.a long term loan
    3. C.an irredeemable bond
    4. D.redeemable bond
    Show answer

    Answer: D redeemable bond

  74. 74.
    Which of the following is a verbal means of communication
    1. A.express mail
    2. B.telephone
    3. C.telex
    4. D.business reply services
    Show answer

    Answer: B telephone

  75. 75.
    Which of the following is an item in the marketing mix?
    1. A.market
    2. B.consumer
    3. C.demand
    4. D.promotion
    Show answer

    Answer: D promotion

  76. 76.
    Which of the following is not a veritable source of funds to a public limited liability company?
    1. A.advances and loans from bank
    2. B.internally generated funds
    3. C.government financial grants
    4. D.funds from the sale of shares
    Show answer

    Answer: C government financial grants

  77. 77.
    Which of the following legislation aims primarily at the protection of consumers?
    1. A.Company's Act
    2. B.Partnership Act
    3. C.Trade Description Act
    4. D.Law of contract
    Show answer

    Answer: C Trade Description Act

  78. 78.
    Which of the following regulates and controls the activities in the Nigerian Stock Exchange?
    1. A.CBN
    2. B.BPE
    3. C.SEC
    4. D.NDIC
    Show answer

    Answer: C SEC

  79. 79.
    Why is clean bill of lading called so?
    1. A.it is a clear bill
    2. B.it shows not records of damaged goods
    3. C.it shows records of damaged goods
    4. D.it signifies no debt is owed
    Show answer

    Answer: B it shows not records of damaged goods

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