Commerce past questions: JAMB UTME 2024

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

Sit this paper

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

1.
A bill of exchange sold for less than its face value before maturity is said to be
1. A.protested
2. B.cleared
3. C.dishonored
4. D.discounted
Show answerHide answer
Answer: D discounted
2.
A contract in which all parties to the contract have carried out their obligation is said to be terminated by
1. A.performance
2. B.breach of contract
3. C.operation of the law
4. D.frustration
Show answerHide answer
Answer: A performance
3.
A dealer who buys securities at low prices in anticipation of reselling them at higher prices is called a
1. A.jobber
2. B.bull
3. C.broker
4. D.bear
Show answerHide answer
Answer: B bull
4.
A holding company is one which holds shares in another company up to
1. A.51%
2. B.41%
3. C.33%
4. D.25%
Show answerHide answer
Answer: A 51%
5.
A multiple shop has many stores which sell
1. A.manufactured goods
2. B.locally produced goods
3. C.perishable goods
4. D.similar goods
Show answerHide answer
Answer: D similar goods
6.
A person who runs a business on his own account is called a
1. A.customer
2. B.sole trader
3. C.director
4. D.partner
Show answerHide answer
Answer: B sole trader
7.
A public limited liability company is owned by
1. A.government
2. B.shareholders
3. C.general public
4. D.debenture holders
Show answerHide answer
Answer: B shareholders
8.
A ship which has no fixed schedule and travels wherever it can find cargoes to carry is a
1. A.liner
2. B.tanker
3. C.tramp
4. D.ferry
Show answerHide answer
Answer: C tramp
9.
A tax paid on goods manufactured and consumed in your country is called
1. A.excise duty
2. B.goods tax
3. C.income tax
4. D.custom duty
Show answerHide answer
Answer: A excise duty
10.
A type of partnership in which all partners have unlimited liability and jointly manage the business is known as partnership.
1. A.ordinary
2. B.nominal
3. C.unlimited
4. D.Limited
Show answerHide answer
Answer: C unlimited
11.
A typical example of an event covered by an Assurance Policy is
1. A.accident
2. B.death
3. C.burglary
4. D.fire
Show answerHide answer
Answer: B death
12.
A wholesaler who acts as an agent on behalf of the owner of the goods in buying or selling for a commission proportionate to the value of the transaction is called a
1. A.commissioned agent
2. B.del-credere agent
3. C.factor
4. D.speculator
Show answerHide answer
Answer: C factor
13.
All the following are principles of insurance EXCEPT
1. A.insurable interest
2. B.particular average
3. C.utmost good faith
4. D.subrogation
Show answerHide answer
Answer: B particular average
14.
An agent held responsible for non-payment of goods bought by the customer he introduced to his principal is called agent
1. A.general
2. B.special
3. C.sales
4. D.del-credere
Show answerHide answer
Answer: D del-credere
15.
An agreement that is enforceable in law is called
1. A.an offer
2. B.a decree
3. C.a contract
4. D.a declaration
Show answerHide answer
Answer: C a contract
16.
An allowance made to a customer for prompt payment is known as
1. A.bulk discount
2. B.commission
3. C.cash discount
4. D.allowance
Show answerHide answer
Answer: C cash discount
17.
An instruction to an agent abroad restricting him to buy from a named manufacturer is known as
1. A.pro forma invoice
2. B.an open indent
3. C.a closed indent
4. D.an order
Show answerHide answer
Answer: C a closed indent
18.
Banks issue cheque books to customers holding ___________ accounts.
1. A.foreign
2. B.current
3. C.deposit
4. D.fixed deposit
Show answerHide answer
Answer: B current
19.
Bonded warehouse is controlled and supervised by
1. A.customs
2. B.navy
3. C.immigration
4. D.police
Show answerHide answer
Answer: A customs
20.
Branding is the assigning of trade marks to goods for the purpose of......... by the public.
1. A.demand
2. B.replacement
3. C.stabilization
4. D.identification
Show answerHide answer
Answer: D identification
21.
Closing stock is also known as
1. A.stock at close
2. B.balance brought forward
3. C.opening inventory
4. D.stock at beginning
Show answerHide answer
Answer: A stock at close
22.
Departmental store, supermarket and chain store are examples of
1. A.small scale retailers
2. B.medium scale producers
3. C.large scale retailers
4. D.large scale whole-salers
Show answerHide answer
Answer: C large scale retailers
23.
Fishing is an example of
1. A.direct services
2. B.manufacturing industry
3. C.extractive industry
4. D.construction industry
Show answerHide answer
Answer: C extractive industry
24.
Gross profit can be calculated as
1. A.Sales minus purchases
2. B.Sales minus cost of good sold
3. C.cost of goods available for sales minus sale
4. D.Cost of good sold minus cost of goods available for sale
Show answerHide answer
Answer: B Sales minus cost of good sold
25.
In the event of winding up of a company, who among the following is paid last?
1. A.Preference Shareholders
2. B.Ordinary shareholders
3. C.Cumulative preference shareholders
4. D.Debenture holders
Show answerHide answer
Answer: B Ordinary shareholders
26.
Obi received a cheque for #1000 from Mr. Ade and this cheque was stolen. He must
1. A.inform Mr. Ade to tell his bank to stop payment
2. B.inform his bank to stop payment
3. C.simply ask Mr. Ade for another cheque
4. D.tell his bank to add the amount to his bank balance
Show answerHide answer
Answer: B inform his bank to stop payment
27.
One of the easiest means of transporting petroleum product is by
1. A.pipeline
2. B.air
3. C.road
4. D.rail
Show answerHide answer
Answer: A pipeline
28.
One of the following does NOT fit into the group.
1. A.agriculture
2. B.carpentry
3. C.fishing
4. D.mining
Show answerHide answer
Answer: B carpentry
29.
Prospectus in relation to a public limited inability company means
1. A.a document stating the types or shares
2. B.an invitation to the public to collect dividends
3. C.an invitation to the public to buy shares
4. D.a document where the names of shareholders are written
Show answerHide answer
Answer: C an invitation to the public to buy shares
30.
Shares are said to be sold at a discount when they are sold
1. A.below par
2. B.to the public
3. C.at par
4. D.above par
Show answerHide answer
Answer: A below par
31.
Ships that pick up cargo from any port and travels anytime are called
1. A.ferries
2. B.tankers
3. C.tramps
4. D.steamers
Show answerHide answer
Answer: C tramps
32.
Stock exchange quoted the shares of ABC Plc at #0.75K for #1.25K per share. This means the shares were sold at a
1. A.par value
2. B.premium
3. C.gain
4. D.loss
Show answerHide answer
Answer: B premium
33.
Tariff can be defined as a compulsory levy on
1. A.import and export
2. B.foreign exchange earnings
3. C.imported goods only
4. D.foreigners working in Nigeria
Show answerHide answer
Answer: C imported goods only
34.
The act of being on one job for expertise is called
1. A.separation of power
2. B.immobility
3. C.independence
4. D.specialization
Show answerHide answer
Answer: D specialization
35.
The activities concerned with changing of raw materials into finished products belong to __occupation.
1. A.commercial
2. B.extractive
3. C.constructive
4. D.manufacturing
Show answerHide answer
Answer: D manufacturing
36.
The advertising medium which uses electric current in bulbs is referred to as
1. A.posters
2. B.television
3. C.neon signs
4. D.bill boards
Show answerHide answer
Answer: C neon signs
37.
The aid to trade which enables producer and consumer to transact business without physical contact is known as
1. A.tourism
2. B.communication
3. C.advertising
4. D.insurance
Show answerHide answer
Answer: B communication
38.
The association that encourages savings for the benefit of its members is known as
1. A.Consumer association
2. B.Credit and thrift co-operative society
3. C.Consumer co-operative society
4. D.Producer co-operative society
Show answerHide answer
Answer: B Credit and thrift co-operative society
39.
The body charged with the responsibility monitoring the quality of goods supplied is the
1. A.manufacturers' association
2. B.chamber of commerce
3. C.Nigerian standards organization
4. D.consumers' association
Show answerHide answer
Answer: C Nigerian standards organization
40.
The breaking down of work into different processes is known as
1. A.production
2. B.division of labour
3. C.specialization
4. D.exchange
Show answerHide answer
Answer: B division of labour
41.
The coming together of two or more firms with each of them losing its identity is known as
1. A.holding
2. B.consortium
3. C.cartel
4. D.amalgamation
Show answerHide answer
Answer: D amalgamation
42.
The components of a balance of payments account are
1. A.capital, current and fixed deposit
2. B.current, capital and monetary movement
3. C.capital, savings and fixed deposit
4. D.current, savings and monetary movement
Show answerHide answer
Answer: B current, capital and monetary movement
43.
The deliberate throwing of some goods into the sea to prevent the ship from sinking is an example of
1. A.constructive total loss
2. B.an actual total loss
3. C.a general average loss
4. D.a partial loss
Show answerHide answer
Answer: C a general average loss
44.
The difference between the higher prices and the lower prices quoted for shares and stocks at the stock exchange is known as
1. A.commission
2. B.brokerage
3. C.interest
4. D.jobbers turn
Show answerHide answer
Answer: D jobbers turn
45.
The document which gives complete information about the goods sold is the
1. A.invoice
2. B.order form
3. C.delivery note
4. D.bill of exchange
Show answerHide answer
Answer: A invoice
46.
The documents sent by the suppliers of good to a prospective buyer, informing him of what to pay if he buys the good is
1. A.credit note
2. B.advice note
3. C.invoice
4. D.debt note
Show answerHide answer
Answer: C invoice
47.
The first Nigerian enterprises promotion decree was promulgated in
1. A.1972
2. B.1973
3. C.1974
4. D.1977
Show answerHide answer
Answer: B 1973
48.
The following are functions of marketing EXCEPT
1. A.packaging
2. B.distribution
3. C.insurance
4. D.advertising
Show answerHide answer
Answer: C insurance
49.
The functions of public corporations include the following EXCEPT
1. A.providing essential services to the public
2. B.maximizing profits for the board members
3. C.providing even development
4. D.providing employment opportunities
Show answerHide answer
Answer: B maximizing profits for the board members
50.
The main objective of nationalization of industries is to
1. A.prevent existing firms from liquidation
2. B.Make more profit for the government
3. C.prevent all aliens from taking part in the business activities of a country
4. D.bring an Industry under state ownership and control
Show answerHide answer
Answer: D bring an Industry under state ownership and control
51.
The Nigeria Enterprises promotion Decree brought about policy
1. A.nationalization
2. B.industrialization
3. C.indigenization
4. D.privatization
Show answerHide answer
Answer: C indigenization
52.
The policy designed to accelerate the greater participation of Nigerians in the ownership and management of business enterprises in Nigeria is called
1. A.nationalisation
2. B.indigenity
3. C.commercialization
4. D.industrialization
Show answerHide answer
Answer: B indigenity
53.
The principle of insurance which ensures that an individual is restored to his former position after suffering a loss is
1. A.utmost good faith
2. B.insurable interest
3. C.indemnity
4. D.subrogation
Show answerHide answer
Answer: C indemnity
54.
The relationship between a country's visible imports and exports in a trading year is known as
1. A.balance of trade
2. B.counter trade
3. C.international trade
4. D.balance of payment
Show answerHide answer
Answer: A balance of trade
55.
The rights of the consumers does NOT include
1. A.the right to a healthy environment
2. B.the right to be informed
3. C.the right to fix prices
4. D.the right to choose
Show answerHide answer
Answer: C the right to fix prices
56.
The rules and regulations guiding the conduct of business transactions are known as law
1. A.criminal
2. B.common
3. C.contract
4. D.commercial
Show answerHide answer
Answer: D commercial
57.
The service rendered by NIPOST in which letters are addressed to any post office to await collection by the addressee is known as
1. A.business reply service
2. B.cash on delivery service
3. C.free post service
4. D.express mail service
Show answerHide answer
Answer: C free post service
58.
The sum which the insured pays periodically to his insurance company is called
1. A.a commission
2. B.an indemnity
3. C.a policy
4. D.a premium
Show answerHide answer
Answer: D a premium
59.
The term "caveat emptor" implies that
1. A.goods have been transferred to the buyer
2. B.let the buyer beware
3. C.let the seller beware
4. D.goods are still with the seller
Show answerHide answer
Answer: B let the buyer beware
60.
The term "consumer sovereignty" means that the consumer is a
1. A.promoter
2. B.king
3. C.manager
4. D.director
Show answerHide answer
Answer: B king
61.
Transfer of ownership of goods sold under Hire Purchase System takes place when
1. A.two instalment have been
2. B.a quarter of the total price is
3. C.half of the total price is paid
4. D.the final instalment is paid
Show answerHide answer
Answer: D the final instalment is paid
62.
Use the information below to answer this question. Aisha sold her wristwatch to Halima for #2,000.00 and she paid. The sum of #2,000.00 is the
1. A.entitlement
2. B.consideration
3. C.money
4. D.fees
Show answerHide answer
Answer: B consideration
63.
When the price quoted includes all the cost to the actual destination, that is, from the seller's warehouse to the buyer's warehouse. it is called
1. A.loco price
2. B.franco
3. C.carriage paid
4. D.cash on delivery
Show answerHide answer
Answer: B franco
64.
Which area of law is NOT related to business?
1. A.agency
2. B.hire purchase
3. C.possession
4. D.contract
Show answerHide answer
Answer: C possession
65.
Which of the following advertising media preselects its readership through the nature of its content?
1. A.Magazine
2. B.Billboard
3. C.Hand bill
4. D.Newspaper
Show answerHide answer
Answer: A Magazine
66.
Which of the following can be used to establish an importer's title to goods?
1. A.cargo receipt
2. B.way bill
3. C.bill of lading
4. D.import license
Show answerHide answer
Answer: C bill of lading
67.
Which of the following CANNOT be sold through a vending machine?
1. A.shoes
2. B.tickets
3. C.snacks
4. D.tea
Show answerHide answer
Answer: A shoes
68.
Which of the following does a seller send in reply to a letter of inquiry?
1. A.quotation
2. B.credit note
3. C.debit note
4. D.delivery note
Show answerHide answer
Answer: A quotation
69.
Which of the following forms part of a company's Article of Association?
1. A.Nature and object of the business
2. B.Registered office
3. C.Goodwill and status of shareholders
4. D.Name of the company
Show answerHide answer
Answer: D Name of the company
70.
Which of the following is NOT a credit instrument?
1. A.Bill of Exchange
2. B.Bank Notes
3. C.Cheques
4. D.Bill of Lading
Show answerHide answer
Answer: D Bill of Lading
71.
Which of the following is NOT an aim of advertising?
1. A.inspiring public confidence in the goods
2. B.arousing the interest of the public
3. C.reducing the cost of the goods produced
4. D.attracting the attention of the public
Show answerHide answer
Answer: C reducing the cost of the goods produced
72.
Which of the following is NOT part of Pre-Sales Service/ice?
1. A.granting of credit or hire purchase sales facilities
2. B.assisting the prospective buyer to set up facilities for storage
3. C.dispatching of quotation and price list
4. D.providing detailed information about goods to be purchased
Show answerHide answer
Answer: A granting of credit or hire purchase sales facilities
73.
Which of the following is NOT part of the marketing mix?
1. A.place
2. B.promotion
3. C.price
4. D.personnel
Show answerHide answer
Answer: D personnel
74.
Which of the following is NOT regarded as a welfare service in an organization?
1. A.training
2. B.medical facilities
3. C.transportation
4. D.recreational facilities
Show answerHide answer
Answer: A training
75.
Which of the following services is NOT rendered by NITEL?
1. A.Data Transmission
2. B.Recorded Delivery
3. C.Satellite
4. D.Telex
Show answerHide answer
Answer: B Recorded Delivery
76.
Which of the following types of insurance is usually excluded from the principle of indemnity?
1. A.Fire
2. B.Fidelity Guarantee
3. C.Marine
4. D.Life
Show answerHide answer
Answer: D Life
77.
Which of the following warehouse is generally found near a port?
1. A.producer's warehouse
2. B.bonded warehouse
3. C.distributor's warehouse
4. D.manufacturer's warehouse
Show answerHide answer
Answer: B bonded warehouse
78.
Which of these is NOT a governments legislation to protect the consumer?
1. A.Foods and drugs
2. B.Weight and measure
3. C.Privatization and commercialization
4. D.Trade description
Show answerHide answer
Answer: C Privatization and commercialization
79.
Which of these is used in calculating working capital?
1. A.furniture and fittings
2. B.stock of raw material
3. C.machinery
4. D.office equipment
Show answerHide answer
Answer: B stock of raw material
80.
Which type of advertisement induces consumer to purchase the goods he does not need?
1. A.Specific
2. B.Informative
3. C.Persuasive
4. D.Descriptive
Show answerHide answer
Answer: C Persuasive

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