Commerce past questions: JAMB UTME 2025

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

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

1.
A company which acquires more than 50% voting shares of another company is called?
1. A.a consortium
2. B.a cartel
3. C.a holding company
4. D.a trust
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Answer: C a holding company
2.
A contract to take possession of goods on installment
1. A.trade-in-sale
2. B.hire purchase
3. C.conditional sale
4. D.credit sale
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Answer: B hire purchase
3.
A diagram showing the positions of the structure of a company is
1. A.organizational chart
2. B.flow chart
3. C.span of control
4. D.vertical integration
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Answer: A organizational chart
4.
A disadvantage of commercialization to consumers is that
1. A.customers do not have value for their money
2. B.it reduces loyalty of workers
3. C.it promotes inefficiency
4. D.prices of products increase
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Answer: D prices of products increase
5.
A false statement made by one party with an intention of inducing the other party to enter into a contract with him is known as
1. A.consensus ad idem
2. B.legal capacity
3. C.consideration
4. D.misrepresentation
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Answer: D misrepresentation
6.
A limited company has an authorized capital of 20,000,000 shares. If each share capital cost 50k and the company sold 12,000,000 shares. Its issued capital is
1. A.N16,000,000
2. B.N4,000,000
3. C.N10,000,000
4. D.N6,000,000
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Answer: D N6,000,000
7.
A new offer of contract that terminates the original offer is
1. A.an invalid offer
2. B.a void contract
3. C.a counter offer
4. D.quasi contract
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Answer: C a counter offer
8.
A put option in the stock exchange is an option
1. A.to buy
2. B.not to sell
3. C.not to buy
4. D.to sell
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Answer: D to sell
9.
A source of capital to a public company which attracts a fixed rate of interest is
1. A.an ordinary share
2. B.a debenture
3. C.a subvention
4. D.an overdraft
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Answer: B a debenture
10.
A trader's turnover was D36,000. Purchases was D28,000. The opening stock was D2,000 and the closing stock D3,000. The average stock is
1. A.D3,000
2. B.D2,500
3. C.D5,000
4. D.D2,000
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Answer: B D2,500
11.
A worker who processes garri is engaged in
1. A.exchange
2. B.extracting
3. C.constructing
4. D.manufacturing
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Answer: D manufacturing
12.
All activities geared towards the distribution and exchange of goods and services is
1. A.commerce
2. B.market survey
3. C.personal selling
4. D.trade
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Answer: A commerce
13.
All activities involved in the distribution and exchange of goods and services are referred to as
1. A.market survey
2. B.advertising
3. C.trade
4. D.commerce
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Answer: D commerce
14.
An agreement that is enforceable in law is
1. A.an offer
2. B.a consideration
3. C.an acceptance
4. D.a contract
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Answer: D a contract
15.
An example of in invisible item of trade is
1. A.textile
2. B.machinery
3. C.oil
4. D.shipping
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Answer: D shipping
16.
An insurance policy that covers the body of the ship only is called
1. A.Voyage insurance
2. B.Haulage insurance
3. C.Hull insurance
4. D.Cargo insurance
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Answer: C Hull insurance
17.
An insurance principle that prevents a person from insuring what he does not stand to lose financially if the insured risk occurs is
1. A.proximate cause
2. B.indemnity
3. C.insurable interest
4. D.subrogation
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Answer: C insurable interest
18.
An open cheque is one
1. A.Which can be cashed over the counter
2. B.Which has no name
3. C.Which has no specific amount written on it
4. D.on which the amount is written only in figures
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Answer: A Which can be cashed over the counter
19.
An organization of producers of similar products, which controls output with the intention to fix price is a
1. A.cartel
2. B.trust
3. C.syndicate
4. D.consortium
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Answer: A cartel
20.
Commercial activities among West African countries are greatly hindered by
1. A.nationalization decree
2. B.good road network
3. C.lack of an acceptable medium of exchange
4. D.too many commercial banks
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Answer: C lack of an acceptable medium of exchange
21.
Encouraging a high quality of member's products through the circulation of research information is a function of
1. A.Consumers' Association
2. B.Manufacturers Association
3. C.Employers' Association
4. D.Trade Union
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Answer: B Manufacturers Association
22.
Examples of current assets are
1. A.trade debtors, trade creditors and cash
2. B.cash and trade creditors
3. C.trade creditors and trade debtors
4. D.cash and trade debtors
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Answer: D cash and trade debtors
23.
Goods are usually classified into
1. A.saleable and non saleable goods
2. B.inferior and superior goods
3. C.luxurious and essential goods
4. D.producer and consumer goods
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Answer: D producer and consumer goods
24.
In which of the following organizations are members entitled to one vote, irrespective of the number of shares held?
1. A.Partnership
2. B.Co-operative society
3. C.Limited company
4. D.Public corporation
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Answer: B Co-operative society
25.
Labour and entrepreneur are examples of
1. A.primary production
2. B.direct services
3. C.factors of production
4. D.division of labour
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Answer: C factors of production
26.
Mr ojo borrowed N54,000 from a commercial bank and deposited his life insurance certificate with the bank. The certificate deposited serves as
1. A.a current asset
2. B.a collateral security
3. C.an interest charged
4. D.a loan repayment
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Answer: B a collateral security
27.
Musa entered into a contract to supply two cows to Aro. Before the agreed date of supply and without the knowledge of the two parties, thieves stole the cows. This is an example of termination of contract by
1. A.default
2. B.performance
3. C.breach
4. D.frustration
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Answer: D frustration
28.
One of the functions of the ports authority is
1. A.enforcing law and order in harbors
2. B.checking the activities of smugglers
3. C.collecting import duties
4. D.providing warehousing services
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Answer: D providing warehousing services
29.
Public enterprises are financed mainly by
1. A.commercial banks
2. B.the shareholders
3. C.the world bank
4. D.government grants
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Answer: D government grants
30.
Small scale retailer continue to survive inspite of serious competition from large scale retailers because they
1. A.do not separate business money from personal money
2. B.buy from many manufacturers
3. C.Maintain personal relationship with customers
4. D.Stock only one line of goods in their stalls
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Answer: C Maintain personal relationship with customers
31.
Span of control is defined as the
1. A.authority of the supervisor
2. B.number of subordinates reporting directly to a supervisor
3. C.qualification possessed by the supervisor
4. D.number of staff in the organization
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Answer: B number of subordinates reporting directly to a supervisor
32.
Taxes imposed on locally made goods are known as
1. A.ad valorem duties
2. B.excise duties
3. C.import duties
4. D.export drawback
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Answer: B excise duties
33.
The charge paid by a speculator for non-settlement of his account within the specified period is [ ]
1. A.backwardation
2. B.brokerage
3. C.commission
4. D.contango
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Answer: D contango
34.
The charge paid to a ship owner for the unused part of a ship is known as
1. A.penalty
2. B.dead freight
3. C.dock dues
4. D.demurrage
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Answer: B dead freight
35.
The difference between a country's imports and exports of goods in a particular year is
1. A.balance of trade
2. B.balance of payment
3. C.terms of trade
4. D.terms of payment
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Answer: A balance of trade
36.
The difference between the cost price and selling price of an article is
1. A.rebate
2. B.mark-up
3. C.discount
4. D.commission
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Answer: B mark-up
37.
The document issued by the registrar of companies to permit a public limited company to commence business is
1. A.Memorandum of Association
2. B.Article of Association
3. C.Trading certificate
4. D.Certificate of Incorporation
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Answer: C Trading certificate
38.
The duty of an agent of necessity to a principal is based on?
1. A.Negotiation
2. B.Trust
3. C.Ability
4. D.Mutual agreement
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Answer: B Trust
39.
The exchange of goods for goods in foreign trade is known as?
1. A.Smuggling
2. B.Visible trade
3. C.Entreport trade
4. D.Counter trade
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Answer: D Counter trade
40.
The expert who calculates premium for an insurance company is?
1. A.A broker
2. B.An assessor
3. C.An actuary
4. D.An underwriter
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Answer: C An actuary
41.
The fees charged on postal order by the post office is
1. A.premium
2. B.poundage
3. C.interest
4. D.brokerage
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Answer: B poundage
42.
The grading of products to satisfy different buyers is referred to as?
1. A.Product differentiation
2. B.Product line
3. C.Product concept
4. D.Product mix
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Answer: A Product differentiation
43.
The job of the police in keeping law and order in the society is
1. A.a direct service
2. B.a self service
3. C.a commercial services
4. D.an indirect service
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Answer: D an indirect service
44.
The mode of transport that conveys goods at low cost per unit is
1. A.rail
2. B.air
3. C.road
4. D.pipeline
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Answer: A rail
45.
The net profit is calculated as [ ]
1. A.sales less purchases
2. B.gross profit less expenses
3. C.gross profit less purchases
4. D.sales less expenses
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Answer: B gross profit less expenses
46.
The part of issued share capital that the company has asked the subscribers to pay for
1. A.nominal capital
2. B.paid-up capital
3. C.authorized capital
4. D.called-up capital
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Answer: D called-up capital
47.
The principle that applies when Greene and Sunwar Insurance Companies jointly indemnified Fatou for the destruction of her storey building by fire is
1. A.contribution
2. B.subrogation
3. C.proximate cause
4. D.insurable interest
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Answer: A contribution
48.
The process of making goods attractive and easy to handle is
1. A.labelling
2. B.branding
3. C.packaging
4. D.merchandising
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Answer: C packaging
49.
The process of placing the right people in the right position is an organization is
1. A.directing
2. B.motivating
3. C.planning
4. D.staffing
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Answer: D staffing
50.
The production of goods in anticipation of demand is possible because of the existence of?
1. A.Advertising
2. B.Branding
3. C.Packaging
4. D.Warehousing
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Answer: D Warehousing
51.
The purpose for which the Central Bank sells securities is to
1. A.reduce the interest rate
2. B.increase the interest rate
3. C.increase cash in the economy
4. D.reduce cash in the economy
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Answer: D reduce cash in the economy
52.
The reduction of the value of a country's currency in relation to other country's currencies in
1. A.fluctuation
2. B.inflation
3. C.devaluation
4. D.deregulation
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Answer: C devaluation
53.
The saying that the 'consumer is always right' describes the doctrine of
1. A.consumer protection
2. B.proximate cause
3. C.consumer sovereignty
4. D.caveat emptor
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Answer: C consumer sovereignty
54.
The selling of articles from place to place on foot is
1. A.barter
2. B.itinerant trading
3. C.mail order
4. D.self service
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Answer: B itinerant trading
55.
The transfer of ownership of government business to individuals is
1. A.privatization
2. B.commercialisation
3. C.deregulation
4. D.nationalization
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Answer: A privatization
56.
The transfer of risks already undertaken from one insurance company to another is?
1. A.Re-insurance
2. B.Under insurance
3. C.Over-insurance
4. D.Group insurance
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Answer: A Re-insurance
57.
Trade can be described as
1. A.distribution of goods
2. B.purchase of goods and services
3. C.buying and selling
4. D.production of goods
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Answer: C buying and selling
58.
Turnover of a business is the same as the
1. A.purchases of the business
2. B.assets of the business
3. C.sales of the business
4. D.profit of the business
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Answer: C sales of the business
59.
Unlimited liability in business implies that the [ ]
1. A.risk of the owner is limited only to the amount invested
2. B.property of the owners should not be used to secure loans
3. C.owners private property can be used to settle the business debts
4. D.debts are paid with subventions
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Answer: C owners private property can be used to settle the business debts
60.
Use the following information below to answer the question Ojo bought a bicycle for #20,000, and repaired it at a cost of #5,000. He then sold the bicycle for ₦30,000 What is the cost of goods sold?
1. A.₦20,000
2. B.₦30,000
3. C.₦15,000
4. D.₦25,000
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Answer: D ₦25,000
61.
Use the following information below to answer the question Ojo bought a bicycle for ₦20,000, and repaired it at a cost of ₦5,000. He then sold the bicycle for ₦30,000 What is the percentage of expenses over cost?
1. A.25%
2. B.17%
3. C.33%
4. D.50%
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Answer: A 25%
62.
Use the following information below to answer the question Ojo bought a bicycle for ₦20,000, and repaired it at a cost of ₦5,000. He then sold the bicycle for ₦30,000 What was his net profit?
1. A.₦5,000
2. B.₦15,000
3. C.₦35,000
4. D.₦25,000
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Answer: A ₦5,000
63.
Use the information below to answer questions below
#
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
Calculate the working capital
1. A.#35,000.00
2. B.#14,000.00
3. C.#5,000.00
4. D.#20,000.00
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Answer: C #5,000.00
64.
When a public company receives the certificate of incorporation, this implies that
1. A.the company's assets exist separately from those of its members
2. B.it can no longer sue or be sued
3. C.the company's finds it difficult to raise capital
4. D.it can go ahead and start business
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Answer: D it can go ahead and start business
65.
When the buyer of an existing share is to receive the pending dividend, the price is
1. A.at par
2. B.cum div
3. C.at a discount
4. D.ex-div
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Answer: B cum div
66.
Which of the following carries specialized goods?
1. A.Ferry
2. B.Liner
3. C.Tanker
4. D.Tramp
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Answer: C Tanker
67.
Which of the following describes the reason for international trade?
1. A.Balance of payment
2. B.Absolute cost advantage
3. C.Balance of trade
4. D.Comparative cost advantage
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Answer: D Comparative cost advantage
68.
Which of the following does not belong to the group?
1. A.Posters
2. B.Free samples
3. C.Hoarding of goods
4. D.Window display
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Answer: C Hoarding of goods
69.
Which of the following functions of the wholesaler helps to stabilize prices
1. A.Provision of credit
2. B.Advice to retailers
3. C.Warehousing
4. D.Financing
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Answer: C Warehousing
70.
Which of the following is a means of payment?
1. A.C.I.F
2. B.I.O.U
3. C.Postal order
4. D.Promissory note
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Answer: C Postal order
71.
Which of the following is a source of capital to a sole proprietorship?
1. A.Issue of debenture
2. B.Issue of shares
3. C.Loans from friends
4. D.Admission of new member
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Answer: C Loans from friends
72.
Which of the following is most appropriate for a "Cash with Order" terms of sale? [ ]
1. A.Debit note
2. B.Consignment note
3. C.Credit note
4. D.Proforma invoice
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Answer: D Proforma invoice
73.
Which of the following is not a financial institution?
1. A.Insurance company
2. B.Stock exchange
3. C.Commodity board
4. D.Clearing house
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Answer: C Commodity board
74.
Which of the following is not a principle of insurance?
1. A.Insurable risk
2. B.Insurable interest
3. C.Indemnity
4. D.Subrogation
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Answer: A Insurable risk
75.
Which of the following is not an aid to trade ?
1. A.Insurance
2. B.Banking
3. C.Production
4. D.Transport
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Answer: C Production
76.
Which of the following is not pre-sale service?
1. A.Repair and maintenance work
2. B.Setting up facilities for storing the product to be bought
3. C.Demonstrating the use and performance of the product to be sold
4. D.Providing detailed information about the goods to be purchased
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Answer: A Repair and maintenance work
77.
Which of the following is sent by a supplier who does not want to sell on credit?
1. A.Consular invoice
2. B.Quotation
3. C.Advice note
4. D.Proforma invoice
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Answer: D Proforma invoice
78.
Which of the following is the clearing house for all the banks in the country?
1. A.The Nigerian Industrial Development Bank
2. B.The Central Bank of Nigeria
3. C.The Nigerian Bank for Commerce and Industry
4. D.The Federal Mortgage Bank of Nigeria
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Answer: B The Central Bank of Nigeria
79.
Which of the following legislation aims primarily at protection of consumers?
1. A.Trade Description Act
2. B.Partnership Act
3. C.Law of Contract
4. D.Company's Act
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Answer: A Trade Description Act
80.
Which of the following types of insurance is taken against claims made by staff who get injured while at work?
1. A.Employers' liability insurance
2. B.Fidelity guarantee insurance
3. C.Consequential loss insurance
4. D.Products liability insurance
Show answerHide answer
Answer: A Employers' liability insurance

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#
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