Commerce past questions: WAEC SSCE 2025

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 inefficiency in the supply of goods
2. B.the existence of monopoly is high
3. C.the profit motive outweighs public interest
4. D.there is reduction in the quality of goods
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Answer: C 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.open indent
2. B.letter of credit
3. C.letter of enquiry
4. D.closed indent
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Answer: D closed indent
4.
A group of people representing a cross-section of business interests in an area is
1. A.employer's association
2. B.chamber of commerce
3. C.manufacturers' association
4. D.consumer's association
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Answer: B chamber of commerce
5.
A number of shops under one roof is a
1. A.discount store
2. B.chain store
3. C.unit store
4. D.department store
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Answer: A discount store
6.
A person who is employed for the purpose of bringing his principal into contractual relationship with the third parties is
1. A.a merchant
2. B.a consignee
3. C.a consignor
4. D.an agent
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Answer: D an agent
7.
All activities geared towards the distribution and exchange of goods and services is
1. A.personal selling
2. B.trade
3. C.market survey
4. D.commerce
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Answer: D commerce
8.
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.persuasive
4. D.informative
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Answer: A competitive
9.
An error on an invoice may be rectified by issuing
1. A.an advice note
2. B.a credit note
3. C.a consignment note
4. D.a delivery note
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Answer: B a credit note
10.
An example of a primary product is
1. A.cocoa
2. B.textile
3. C.palm oil
4. D.flour
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Answer: C palm oil
11.
An inventor of a new machine for canning tomatoes can protect his product by
1. A.obtaining a trade mark
2. B.obtaining a patent
3. C.choosing a brand name
4. D.labeling the product
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Answer: B obtaining a patent
12.
An organization of producers of similar products, which controls output with the intention to fix price is
1. A.syndicate
2. B.cartel
3. C.trust
4. D.consortium
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Answer: B cartel
13.
Bonded warehouses are supervised by
1. A.clearing and forwarding agents
2. B.immigration officers
3. C.ports authorities
4. D.customs and excise authorities
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Answer: D customs and excise authorities
14.
Commerce started as a result of
1. A.competition
2. B.privatization
3. C.specialization
4. D.distribution
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Answer: C specialization
15.
One of the aims of ECOWAS is to
1. A.provide a market for stocks and shares
2. B.create a common transport policy
3. C.foster exchange of goods and services
4. D.have a common political system
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Answer: C foster exchange of goods and services
16.
One of the disadvantages of selling on credit is
1. A.increase in bad debts
2. B.increase in liquidity
3. C.reduction in profit
4. D.reduction in turnover
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Answer: A increase in bad debts
17.
One of the functions of a trade association is to
1. A.provide infrastructure for members
2. B.pay member's salaries
3. C.promote members' welfare
4. D.provide employment for members
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Answer: C promote members' welfare
18.
One of the functions of the ports authority is
1. A.enforcing law and order in harbors
2. B.collecting import duties
3. C.providing warehousing services
4. D.checking the activities of smugglers
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Answer: C providing warehousing services
19.
One of the qualities of tradable goods is
1. A.perishability
2. B.heterogeneity
3. C.divisibility
4. D.homogeneity
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Answer: C divisibility
20.
One of the roles performed by middle managers is
1. A.review of master plans, programmes and budgets
2. B.review and appraisal of operational results
3. C.formulation of objectives and strategies
4. D.implementation of organizational plans and objectives
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Answer: D implementation of organizational plans and objectives
21.
Speed is an important factor to be considered for choice of means of transport where goods are
1. A.perishable
2. B.inferior
3. C.bulky
4. D.fragile
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Answer: A perishable
22.
The act of placing goods in glass shields in front of shops to attract passers by is
1. A.personal selling
2. B.sales promotion
3. C.window display
4. D.trade fair
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Answer: C window display
23.
The amount a current holder is allowed to withdraw in excess of the balance in his account is
1. A.credit transfer
2. B.overdraft
3. C.interest
4. D.standing order
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Answer: B overdraft
24.
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
25.
The concept of determining the objectives of a business and stating how they can be actualized is
1. A.organizing
2. B.motivating
3. C.directing
4. D.planning
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Answer: D planning
26.
The expected response from the recipient of a quotation is to send
1. A.an invoice
2. B.an order
3. C.a cheque for payment
4. D.an advice note
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Answer: B an order
27.
The income generated from tourism forms part of the country's
1. A.invisible exports
2. B.visible exports
3. C.visible imports
4. D.invisible imports
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Answer: A invisible exports
28.
The main function of a bureau-de-exchange is
1. A.providing trade information
2. B.buying and selling foreign currency
3. C.buying and selling securities
4. D.selling goods and services
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Answer: B buying and selling foreign currency
29.
The main idea of the marketing concepts is that all the firm's plans and operations should be
1. A.price oriented
2. B.company oriented
3. C.product oriented
4. D.consumer oriented
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Answer: D consumer oriented
30.
The practice by which insurance companies share risks with other insurance companies is
1. A.contribution
2. B.under insurance
3. C.re-insurance
4. D.underwriting
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Answer: C re-insurance
31.
The practice of making a state firm more profit-oriented is
1. A.commercialization
2. B.deregulation
3. C.privatization
4. D.nationalization
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Answer: A commercialization
32.
The practice of selling goods to a foreign country at lower prices than obtainable in the exporting country is
1. A.dumping
2. B.hedging
3. C.speculattion
4. D.skimming
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Answer: A dumping
33.
The process of changing raw materials into finished goods is
1. A.marketing
2. B.extraction
3. C.manufacturing
4. D.construction
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Answer: C manufacturing
34.
The purpose for which the Central Bank sells securities is to
1. A.reduce cash in the economy
2. B.increase the interest rate
3. C.reduce the interest rate
4. D.increase cash in the economy
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Answer: A reduce cash in the economy
35.
The reward for land as a factor of production is
1. A.interest
2. B.profit
3. C.rent
4. D.wage
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Answer: C rent
36.
The right of a seller to make correction on invoices is expressed by the term
1. A.errors and omissions exempted
2. B.errors and omissions expected
3. C.errors and omissions excepted
4. D.errors and omissions excluded
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Answer: C errors and omissions excepted
37.
The saying that the 'consumer is always right' describes the doctrine of
1. A.consumer sovereignty
2. B.caveat emptor
3. C.proximate cause
4. D.consumer protection
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Answer: A consumer sovereignty
38.
The transfer of a government company to the public is
1. A.deregulation
2. B.localization
3. C.commercialization
4. D.privatization
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Answer: D privatization
39.
The word "limited" written after the name of a company means that
1. A.profit is determined by management
2. B.members are liable to the extent of their shareholdings only
3. C.the company is a going concern
4. D.it has a democratic system of management
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Answer: B members are liable to the extent of their shareholdings only
40.
Use the information below to answer questions below
#
opening stock 4000
closing stock 12000
purchases 17000
- The cost of goods sold is
1. A.#16,000
2. B.#9,000
3. C.#21,000
4. D.#4,000
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Answer: B #9,000
41.
Use the information below to answer questions below
#
opening stock 4000
closing stock 12000
purchases 17000
What is the average stock?
1. A.#10,500
2. B.#8,000
3. C.#6,000
4. D.#8,500
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Answer: B #8,000
42.
Which of the following business risks would an insurance firm not cover for an entrepreneur?
1. A.Loss of goods in transit
2. B.Change in consumers' taste
3. C.Theft
4. D.Fire
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Answer: B 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.Cooperative society
4. D.Public company
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Answer: D Public company
44.
Which of the following instruments of payment could be used in international trade?
1. A.Promissory note
2. B.I.O.U
3. C.Postal order
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.Termination of the venture
2. B.Mutual consent of the partners
3. C.Continuous disagreement among partners
4. D.Expiration of a business year
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Answer: D Expiration of a business year
46.
Which of the following is responsible for protecting consumers against poor quality goods?
1. A.Trade associations
2. B.Manufacturers association
3. C.Industrial tribunals
4. D.Standard organizations
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Answer: D Standard organizations
47.
Which of the following means of payment requires acceptance by the debtor to make it valuable?
1. A.Bill of exchange
2. B.Bearer's cheque
3. C.Promissory note
4. D.Postal order
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Answer: A 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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opening stock	4000
closing stock	12000
purchases	17000

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opening stock	4000
closing stock	12000
purchases	17000