Commerce past questions: WAEC SSCE 2021

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

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

1.
A country's balance of trade of -$20 million shows that its
1. A.import volume is greater than export
2. B.import and export volumes are equal
3. C.export volume is greater than imports
4. D.exports are mainly primary products
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Answer: A import volume is greater than export
2.
A disadvantage of privatization is that
1. A.there is reduction in the quality of goods
2. B.there is incipiency in the supply of goods
3. C.the existence of monopoly is high
4. D.the profit motive outweighs public interest
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Answer: D the profit motive outweighs public interest
3.
A foreign order which instructs an agent to buy certain goods from a particular supplier is
1. A.closed indent
2. B.open indent
3. C.letter of credit
4. D.letter of enquiry
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Answer: A closed indent
4.
A number of shops under one roof is a
1. A.chain store
2. B.department store
3. C.discount store
4. D.unit store
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Answer: B department store
5.
A person who is for the purpose of bringing his principal into contractual relationship with third parties is
1. A.a merchant
2. B.a consignee
3. C.a consignor
4. D.an agent
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Answer: B a consignee
6.
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
7.
An advertising campaign by a chicken seller designed to sell his products at the expense of a beef seller is
1. A.competitive
2. B.direct
3. C.informative
4. D.persuasive
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Answer: A competitive
8.
An error on an invoice may be rectified by issuing
1. A.an advice note
2. B.a consignment note
3. C.a credit note
4. D.a delivery note
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Answer: C a credit note
9.
An example of a primary product is _____
1. A.textile
2. B.palm oil
3. C.flour
4. D.cocoa
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Answer: D cocoa
10.
An inventor of a new machine for canning tomatoes can protect his product by
1. A.obtaining a trademark
2. B.obtaining a patent
3. C.labelling the product
4. D.choosing a brand name
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Answer: B obtaining a patent
11.
An objective of the European Union is to
1. A.eliminate drug addiction in member countries
2. B.eliminate tariffs and quotas among member countries
3. C.encourage migrant workers from developing countries
4. D.fight against child abuse in developing countries
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Answer: C encourage migrant workers from developing countries
12.
An organization of producers of similar produces, which controls output with the intention to fix price is a
1. A.trust
2. B.syndicate
3. C.consortium
4. D.cartel
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Answer: D cartel
13.
Bonded warehouses are supervised by
1. A.clearing and forwarding agents
2. B.customs and excise authorities
3. C.immigration officers
4. D.posts Authorities
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Answer: B customs and excise authorities
14.
Commerce started as a result of _______
1. A.competition
2. B.distribution
3. C.privatization
4. D.Specialization
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Answer: B distribution
15.
One of the aims of ECOWAS is to
1. A.provide a market for stocks and shares
2. B.have a common political system
3. C.foster exchange of goods and services
4. D.create a common transport policy
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Answer: C foster exchange of goods and services
16.
One of the disadvantages of selling on credit is
1. A.reduction in turnover
2. B.reduction in profit
3. C.increase in liquidity
4. D.bad debts
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Answer: D bad debts
17.
One of the functions of a trade association is to
1. A.provide infrastructure for members
2. B.provide employment for members
3. C.promote members' welfare
4. D.pay members' salaries
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Answer: C promote members' welfare
18.
One of the functions of the ports authority is
1. A.checking the activities of smugglers
2. B.collecting import duties
3. C.enforcing law and order in harbours
4. D.providing warehousing services
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Answer: D providing warehousing services
19.
One of the qualities of tradable goods is
1. A.divisibility
2. B.heterogeneity
3. C.homogeneity
4. D.perishability
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Answer: D perishability
20.
One of the roles performed by middle managers is
1. A.formulation of objectives and strategies
2. B.implementation of organizational plans
3. C.review and appraisal of operational results
4. D.review of master plans, programmes, and budgets
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Answer: B implementation of organizational plans
21.
Speed is an important factor to be considered for the choice of means of transport where goods are
1. A.perishable
2. B.interior
3. C.fragile
4. D.bulky
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Answer: A perishable
22.
The amount a current account holder is allowed to withdraw in excess of the balance in his account is _______
1. A.standing order
2. B.overdraft
3. C.interest
4. D.credit transfer
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Answer: B overdraft
23.
The collection of import duty is a function of the
1. A.ports authority
2. B.marketing boards
3. C.clearing and forwarding agents
4. D.customs and excise authority
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Answer: D customs and excise authority
24.
The concept of determining the objectives of a business and stating how they can be actualized is
1. A.directing
2. B.motivating
3. C.organizing
4. D.planning
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Answer: D planning
25.
The cost of goods sold is
1. A.N4,000
2. B.N9,000
3. C.N16,000
4. D.N21,000
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Answer: B N9,000
26.
The expected response from the recipient of a quotation is to send
1. A.an advice note
2. B.a cheque for payment
3. C.an invoice
4. D.an order
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Answer: D an order
27.
The income generated from tourism forms part of the country's
1. A.visible imports
2. B.visible exports
3. C.invisible imports
4. D.invisible exports
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Answer: D invisible exports
28.
The main function of a bureau-de-change is
1. A.buying and selling foreign currency
2. B.buying and selling securities information
3. C.providing trade information
4. D.selling goods and services
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Answer: A buying and selling foreign currency
29.
The main idea of the marketing concept is that all the firm's plans and operations should be
1. A.product oriented
2. B.price oriented
3. C.consumer oriented
4. D.company oriented
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Answer: C consumer oriented
30.
The practice by which insurance companies share risks with other insurance companies is
1. A.contribution
2. B.re-insurance
3. C.insurance
4. D.underwriting
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Answer: A contribution
31.
The practice of making a state firm more profit-oriented is
1. A.privatization
2. B.nationalization
3. C.deregulation
4. D.commercialization
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Answer: D commercialization
32.
The practice of selling goods to a foreign country at lower prices than obtainable in the exporting country is
1. A.speculation
2. B.skimming
3. C.hedging
4. D.dumping
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Answer: D dumping
33.
The process of changing raw materials into finished goods is ________
1. A.construction
2. B.extraction
3. C.manufacturing
4. D.marketing
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Answer: C manufacturing
34.
The purpose for which the Central Bank sells securities is to
1. A.reduce the interest rate
2. B.reduce cash in the economy
3. C.increase cash in the economy
4. D.incrcase the interest rate
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Answer: B reduce cash in the economy
35.
The reward for land as a factor of production is
1. A.wage
2. B.rent
3. C.profit
4. D.interest
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Answer: B rent
36.
The right of a seller to make corrections on invoices is expressed by the term
1. A.errors and omissions excepted
2. B.errors omissions excluded
3. C.errors and omissions exempted
4. D.errors and omissions expected
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Answer: A errors and omissions excepted
37.
The saying that the 'consumer is always right' describes the doctrine of
1. A.caveat emptor
2. B.consumer sovereignty
3. C.consumer protection
4. D.proximate cause
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Answer: B consumer sovereignty
38.
The transfer of a government company to the public is
1. A.commercialization
2. B.localization
3. C.deregulation
4. D.privatization
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Answer: B localization
39.
The word ''limited" written after the name of a company means that
1. A.it has a democratic system of management
2. B.members are liable to the extent of their shareholdings only
3. C.the company is a going concern
4. D.profit is determined by management
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Answer: B members are liable to the extent of their shareholdings only
40.
Trade fairs and exhibitions are media of
1. A.sales promotion
2. B.market segmentation
3. C.market research
4. D.Customer service
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Answer: A sales promotion
41.
What is the average stock?
1. A.NI0,500
2. B.N8.500
3. C.N8,000
4. D.6000
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Answer: C N8,000
42.
Which of the following business risks would an insurance firm not cover for an entrepreneur?
1. A.Theft
2. B.Fire
3. C.Loss of goods in transit
4. D.Change in consumers' taste
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Answer: D Change in consumers' taste
43.
Which of the following businesses can raise capital through the stock exchange?
1. A.Sole proprietorship
2. B.Private company
3. C.Public company
4. D.Cooperative society
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Answer: C Public company
44.
Which of the following instruments of payment could be used in international trade?
1. A.Promissory note
2. B.B. Postal order
3. C.I. O.U
4. D.Bill of exchange
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Answer: D Bill of exchange
45.
Which of the following is not a condition for dissolution of a partnership?
1. A.Continuous disagreement among partners
2. B.Expiration of a business year
3. C.Mutual consent of the patners
4. D.Termination of the venture
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Answer: D Termination of the venture
46.
Which of the following is responsible for protecting consumers against poor quality goods
1. A.Industrial tribunal
2. B.Manufacturers associations
3. C.Standard organization of Nigeria
4. D.Trade associations
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Answer: C Standard organization of Nigeria
47.
Which of the following means of payment requires acceptance by the debtor to make it valuable?
1. A.Bearer's cheque
2. B.Bill of exchange
3. C.Postal order
4. D.Promissory note
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Answer: B Bill of exchange
48.
Which type of occupation is a carpenter engaged in?
1. A.Commercial
2. B.Construction
3. C.Extraction
4. D.Manufacturing
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Answer: B Construction

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