Commerce past questions: WAEC SSCE 2022

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

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

1.
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
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Answer: C earnings from goods exported
2.
A disadvantage of privatization is
1. A.high motive for profit than public interest
2. B.decline in the supply of goods
3. C.less efficiency in production of goods
4. D.increase in government expenditure
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Answer: A high motive for profit than public interest
3.
A document that instructs an agent to buy goods from a named firm is
1. A.proforma invoice
2. B.open indent
3. C.consular invoice
4. D.closed indent
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Answer: D closed indent
4.
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
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Answer: D bill of lading
5.
A group of sellers who pool their resources to buy goods in large quantities and sell to its members is a
1. A.wholesale cooperative society
2. B.thrift and credit society
3. C.consumer cooperative society
4. D.chamber of commerce
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Answer: A wholesale cooperative society
6.
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
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Answer: A a nominal partner
7.
A requirement for an offer to be valid is that it should be
1. A.witnessed by a third party
2. B.something of value
3. C.made to one person only
4. D.communicated to the offeree
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Answer: D communicated to the offeree
8.
A retail business that sells goods by post, using catalogues is a
1. A.chain store
2. B.department store
3. C.mail order firm
4. D.shopping mall
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Answer: C mail order firm
9.
A retail store that sells a single product from a particular manufacturer is a
1. A.tied shop
2. B.shopping mall
3. C.hypermarket
4. D.chain store
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Answer: D chain store
10.
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
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Answer: A direct advertising
11.
An advantage of rail transport is that it
1. A.is less expensive to maintain
2. B.is not prone to delays
3. C.bulky and heavy goods
4. D.enhances door-to-door delivery
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Answer: C bulky and heavy goods
12.
An agency agreement in which the principal approves the action of his authorized representative is agency by
1. A.ratification
2. B.necessity
3. C.implication
4. D.estoppel
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Answer: A ratification
13.
An article used as a means of exchange in the early days of trade in West Africa was
1. A.Cedi
2. B.Cowrie
3. C.Dalasi
4. D.Naira
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Answer: B Cowrie
14.
An internal source of finance to an entrepreneur is
1. A.trade credit
2. B.retained earning
3. C.overdraft
4. D.debenture
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Answer: B retained earning
15.
An organizational chart of a company shows the
1. A.arrangement of equipment in the company
2. B.financial status of employees in the company
3. C.geographical location of the company
4. D.hierarchy of staff in the company
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Answer: D hierarchy of staff in the company
16.
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
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Answer: A After-sales service
17.
Average stock is derived by adding
1. A.closing stock to purchases 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
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Answer: C opening stock to closing stock divided by 2
18.
Central banks sell treasury bills to the public to
1. A.increase cash in the banking system
2. B.raise revenue for commercial banks
3. C.raise revenue for private investors
4. D.reduce cash in circulation
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Answer: D reduce cash in circulation
19.
Consumers could be encouraged to purchase a company's products through
1. A.research
2. B.planning
3. C.distribution
4. D.advertisement
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Answer: D advertisement
20.
Dealers in the stock exchange such as bulls, bears and stags are categorized as
1. A.actuaries
2. B.promoters
3. C.speculators
4. D.underwriters
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Answer: C speculators
21.
One of the aims of ECOWAS is to
1. A.promote commereialization policies
2. B.promote commereializati10n policies
3. C.discourage foreign investors
4. D.ensure production of quality goods
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Answer: B promote commereializati10n policies
22.
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
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Answer: B promote members' welfare
23.
One of the functions of commercial 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.issurance of treasury bills
4. D.printing of bank notes
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Answer: B collection of deposits from the public
24.
Payment made to a carrier for transportation of goods is
1. A.frights
2. B.fee
3. C.fare
4. D.duty
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Answer: A frights
25.
Sales ----------------------------------- #50,000 Debtors -------------------------------- #10,000 Cash-in-hand --------------------------#5,000 Opening stock -------------------------#30,000 Creditors ------------------------------- #8,000 Purchases ----------------------------- #16,000 Overdraft ------------------------------- #12,000 Closing stock -------------------------- #10,000 Calculate the gross profit.
1. A.#35,000.00
2. B.#20,000.00
3. C.#15,000.00
4. D.#14,000.00
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Answer: D #14,000.00
26.
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
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Answer: B ocean liners
27.
The act of removing government laws and allowing market forces to determine prices is
1. A.commercialization
2. B.deregulation
3. C.divestiture
4. D.privatization
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Answer: B deregulation
28.
The agreement which led to the formation of the West African Clearing House was signed in
1. A.Gambia
2. B.Sierra Leone
3. C.Nigeria
4. D.Ghana
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Answer: B Sierra Leone
29.
The commission on a postal order is
1. A.tariff
2. B.poundage
3. C.brokerage
4. D.fee
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Answer: B poundage
30.
The growth of Pro 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
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Answer: C high population growth
31.
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
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Answer: A cash discount
32.
The law by which a seller transfers the property in goods to a buyer at an agreed price is the
1. A.Weights and Measures Act
2. B.Trade Description Act
3. C.Sale of Goods Act
4. D.Foods and Drugs Act
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Answer: C Sale of Goods Act
33.
The marketing concept emphasizes
1. A.sale of goods directly to customers
2. B.use of promotional tools to stimulate sales
3. C.mass production of goods
4. D.consumer's satisfaction at a profit
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Answer: D consumer's satisfaction at a profit
34.
The number of subordinates a head of department supervises is
1. A.unity of command
2. B.chain of command
3. C.span of control
4. D.unity of direction
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Answer: B chain of command
35.
The 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
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Answer: B bag of cement
36.
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
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Answer: B contribution
37.
The provision of services is classified under
1. A.batch production
2. B.flow production
3. C.secondary production
4. D.tertiary production
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Answer: D tertiary production
38.
The purpose of commercialization is to
1. A.make state-owned firms more efficient
2. B.enable state-owned firms pay tax
3. C.encourage the flow of foreign capital
4. D.encourage greater participation of the private sector
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Answer: A make state-owned firms more efficient
39.
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
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Answer: C divisibility
40.
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
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Answer: C factors of production
41.
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
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Answer: B enables finished goods to reach consumers
42.
Use the information below to answer question 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
calculate the working capital.
1. A.#35,000.00
2. B.#20,000.00
3. C.#15,000.00
4. D.#14,000.00
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Answer: D #14,000.00
43.
When a share with a nominal value of N50 is quoted at N70, it is being sold
1. A.cum div
2. B.ex-div
3. C.at a discount
4. D.at a premium
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Answer: D at a premium
44.
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
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Answer: A Articles of Association
45.
Which of the following groups would advocate for the supply of constant electricity to households?
1. A.consumers' association
2. B.credit union
3. C.Employers' association
4. D.Labour union
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Answer: A consumers' association
46.
Which of the following is not a characteristic of a commercial bank?
1. A.established as a 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
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Answer: C Established to issue bank notes
47.
Which of the following is not a function ol management?
1. A.Controlling
2. B.Delegating
3. C.Directing
4. D.Organizing
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Answer: B Delegating
48.
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 a safe product
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Answer: B Right to buy on credit
49.
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
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Answer: B public enterprises

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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