WAEC SSCE - Commerce - 1993 (Objective)

Question 1 Report

The function of commerce in production is that it?

helps in the extraction of raw materials

provides a link between the different arms of production Correct answer

is the only branch that satisfies wants

yields result

changes raw materials to finished goods

Answer Details

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Purchase And Sale Of Goods

Commerce

Production

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Question 2 Report

Speed is an important consideration for the choice of a means of transport where goods are?

bulky

inferior

fragile

perishable Correct answer

durable

Answer Details

When choosing a means of transport for goods, speed is an important factor to consider because different types of goods have different characteristics. For example, if the goods are perishable (meaning they can spoil or go bad quickly), then they need to be transported quickly to ensure they arrive at their destination before they go bad. Similarly, if the goods are fragile, they may need to be transported quickly to prevent damage. On the other hand, if the goods are bulky or durable, they may not need to be transported as quickly since they are less likely to be damaged or spoiled during transportation. Therefore, the choice of means of transport should depend on the characteristics of the goods being transported and the speed required to ensure they arrive at their destination in the best possible condition.

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Transport, Tourism, Communication And Warehousing

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Question 3 Report

Air transport is considerable importance today because it?

is faster than other means of transport Correct answer

can deliver goods to owner's destination

is relatively cheaper

can carry bulky goods

travels on schedule

Answer Details

Air transport is of considerable importance today mainly because it is faster than other means of transport. Airplanes can travel at high speeds and cover long distances in a shorter time compared to other modes of transportation, such as road, rail, or sea transport. This makes air transport the preferred choice for people who need to travel long distances within a short period of time, or for businesses that need to transport goods quickly and efficiently. Additionally, air transport has the advantage of being able to fly to remote and inaccessible areas, making it ideal for emergency relief operations or scientific expeditions. However, air transport can be relatively more expensive than other modes of transport, especially for bulky goods.

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Transport, Tourism, Communication And Warehousing

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Question 4 Report

A bank whose name is printed on a cheque leaf is known as the?

drawer

payer

drawee Correct answer

payee

acceptor

Answer Details

The bank whose name is printed on a cheque leaf is known as the drawee. When a cheque is issued, it is the drawer (the person who writes the cheque) instructing the drawee bank to pay a specified amount of money to the payee (the person or organization to whom the cheque is made payable). The drawee is the bank on which the cheque is drawn and the bank is responsible for honoring the payment instructions of the drawer.

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Financing Business

Commerce

Occupation

Trade

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Question 5 Report

A group of persons that agrees to pool its resources to achieve a particular objective is known as?

consortium Correct answer

holding company

cartel

trust

subsidiary company

Answer Details

The term that describes a group of persons that agree to pool their resources to achieve a particular objective is "consortium." A consortium is usually formed when a group of individuals, companies, or organizations come together to pool their resources, expertise, and experience to achieve a common goal that they might not have been able to accomplish on their own. A consortium can be formed for a variety of purposes, including research and development, joint ventures, and investment.

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Commerce

Occupation

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Question 6 Report

Which of the following is not a branch of production?

Consumption Correct answer

Extraction

Manufacturing

Distribution

Direct services

Answer Details

The branch of "consumption" is not a branch of production. Consumption refers to the act of using or consuming goods and services to satisfy human needs and wants. On the other hand, production refers to the creation or provision of goods and services to meet human needs and wants. The other options, namely extraction, manufacturing, distribution, and direct services, are all branches of production. Extraction involves the gathering or mining of natural resources, manufacturing involves the transformation of raw materials into finished goods, distribution involves the movement of goods from producers to consumers, and direct services involve the provision of intangible services directly to consumers.

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Production

Occupation

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Question 7 Report

The insured is prevented from making profit from claims under more than one policy for the same risk by the principle of?

Contribution

Surbrogation Correct answer

Utmost good faith

Proximate cause

Insurable interest

Answer Details

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Legal Aspect Of Business

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Question 8 Report

Trade can be described as?

purchase of goods and services

production of goods

buying and selling Correct answer

distribution of goods

storage of goods

Answer Details

Trade can be described as the exchange of goods and services between parties, involving the buying and selling of goods or services. It involves the transfer of ownership of goods or services from one person or entity to another. Trade can take place locally or internationally, and it can involve individuals, businesses, or governments. The main aim of trade is to satisfy the needs and wants of both parties involved in the exchange.

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Trade

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Question 9 Report

Who is liable for the contract entered into the agent on behalf of his principal? The

agent

principal Correct answer

agent and principal

third party

lawyer who drew up the agreement

Answer Details

In general, the principal is liable for the contract entered into by the agent on behalf of the principal. This means that the principal is responsible for fulfilling the terms of the contract and paying any damages or penalties that may arise from the contract. The agent may also be held liable in certain circumstances, such as if the agent acted outside the scope of their authority or committed fraud. However, the primary responsibility lies with the principal, as the agent is acting on their behalf.

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Legal Aspects Of Business

Legal Aspect Of Business

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Question 10 Report

Which of the following is not a function of warehousing?

Provision of storage facilities

Availability of goods where needed Correct answer

Availability of goods when needed

Reduction of price fluctuation

Production in anticipation of demand

Answer Details

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Transport, Tourism, Communication And Warehousing

Government Policies Relating To Business

Production

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Question 11 Report

Which of the following is used to stimulate sales?

Finance

Insurance

Wharehousing

Advertising Correct answer

Banking

Answer Details

Advertising is used to stimulate sales. Advertising is a marketing tool that businesses use to communicate with their customers about their products or services. It involves creating and spreading messages through various media channels to promote a product or service to potential customers. By using advertising, businesses can reach a wider audience and create brand awareness, which can lead to increased sales. Therefore, of the options listed, advertising is the most appropriate one used to stimulate sales.

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Advertising

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Question 12 Report

Which of the following statements is not true?

Government does not nationalize businesses owned by its citizens Correct answer

Government nationalizes foreign business

Government does not give nationalized industries to private owners

Government nationalizes viable business

Public corporation are owned by the government

Answer Details

The statement that is not true is "Government does not nationalize businesses owned by its citizens." In some cases, governments may nationalize businesses owned by their citizens for various reasons, such as to address a national crisis or to take over a business that is not being managed effectively by its owners. However, this is not a common practice and is generally viewed as a last resort.

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Government Policies Relating To Business

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Question 13 Report

Which of the following protects consumers against poor quality goods?

Nigerian Chambers of Commerce

Standards Organization of Nigeria Correct answer

Trade Association

Manufacturers Association of Nigeria

Nigerian National Supply Company

Answer Details

The Standards Organization of Nigeria (SON) protects consumers against poor quality goods. SON is a government agency responsible for the development of standards for products and services, as well as ensuring compliance with these standards. It conducts inspections, tests and certification of products, and takes measures to enforce product quality standards. Therefore, if a consumer finds a product to be of poor quality, they can contact SON to make a complaint and seek redress.

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Trade

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Question 14 Report

When an insured person admits that he has indemnified, he means that?

the insurance company has accepted his claim

the damaged properties has been recovered

he has paid his premium fully

the insurance company has restored him to his formal position Correct answer

he has recovered benefits lost through acting in bad faith

Answer Details

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Commerce

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Question 15 Report

A group of persons that agrees to pool its resources to achieve a particular objective is known as?

consortium Correct answer

holding company

cartel

trust

subsidiary company

Answer Details

A group of persons that agrees to pool its resources to achieve a particular objective is known as a "consortium." This is a group of companies or individuals who come together to achieve a common goal by pooling their resources, expertise, and/or finances. The members of a consortium work together to achieve a specific objective, such as developing a new product or service, bidding for a large contract, or conducting research. The members of a consortium typically retain their independence, but work together in a coordinated and collaborative way to achieve the shared goal.

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Commerce

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Question 16 Report

Which of the following is true of a delivery note? It

is sent in anticipation of delivery

does not show the prices of the goods Correct answer

gives additional information about the goods

shows the pictures of goods being delivered

is a demand for payment

Answer Details

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Question 17 Report

Which of the following is used to stimulate sales?

Finance

Insurance

Warehousing

Advertising Correct answer

Banking

Answer Details

Advertising is used to stimulate sales. It involves creating awareness, promoting or informing potential customers about a product or service with the aim of encouraging them to make a purchase. By showcasing the benefits and features of a product or service, advertising can influence consumer behavior and ultimately lead to increased sales.

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Advertising

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Question 18 Report

Which of the following is not an important reason for government ownership of industries?

Provision of essential services

Large capital requirements

Avoiding duplication of services

Preventing private monopoly

Making high profit Correct answer

Answer Details

The option that is not an important reason for government ownership of industries is "Making high profit." The primary reasons for government ownership of industries include the provision of essential services, the need for large capital requirements, avoiding duplication of services, and preventing private monopoly. Making a high profit is not a primary objective of government ownership, as government-owned industries are usually operated for the benefit of the public, rather than for generating profits.

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Question 19 Report

A person who wants to undertake an insurance policy usually completes?

a proposal form Correct answer

a promotion form

an application form

an agreement form

a subscription form

Answer Details

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Legal Aspect Of Business

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Question 20 Report

Which of the following is not an aid to trade?

Transport

Production Correct answer

Banking

Insurance

Warehouse

Answer Details

The answer is "production". Production refers to the process of creating goods and services, and while it is a crucial aspect of many businesses, it is not considered an aid to trade. The other options listed - transport, banking, insurance, and warehouse - are all aids to trade, as they facilitate the movement, financing, protection, and storage of goods and services.

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Commerce

Aids-to-Trade

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Question 21 Report

Which of the following is not one of the 4m's of business resources?

Method Correct answer

Men

Money

Material

Machine

Answer Details

The 4M's of business resources are material, men, money and machine. These are the basic resources that a business needs to carry out its operations. The methods of operations are not part of the 4M's, but are instead part of the overall business strategy. Therefore, the correct answer is "Method".

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Elements Of Marketing

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Question 22 Report

A document that is sent to a buyer when credit is not allowed is?

invoice

consignment note

debit note

proforma invoice Correct answer

delivery note

Answer Details

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Purchase And Sale Of Goods

Commerce

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Question 23 Report

A company that acquires a majority of the shares of the other companies with voting rights is regarded as?

a consortium

a holding company Correct answer

an amalgamator

a subsidiary comapany

cartel

Answer Details

A company that acquires a majority of the shares of another company with voting rights is regarded as a "holding company." A holding company is a type of business organization that owns a controlling interest in one or more companies or corporations. Holding companies usually do not engage in any business activities themselves but hold ownership stakes in other companies. The main purpose of a holding company is to control the management and policies of the subsidiary companies, which allows for centralized control and economies of scale. Holding companies can also provide tax and legal advantages for the parent company.

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Occupation

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Question 24 Report

The telephone service through which one can dial any number,local,trunk or overseas is known as?

internal communication system

standard dialling system

subscriber's trunk dialling system Correct answer

international telecommunication

coded dialling order

Answer Details

The telephone service through which one can dial any number, whether local, trunk, or overseas is known as the "subscriber's trunk dialling system". It allows subscribers to directly dial long-distance calls without the assistance of an operator. The system was introduced to simplify and speed up the process of dialling long-distance calls. Instead of having to go through an operator, subscribers can simply dial the telephone number they wish to reach, and the call will be connected automatically through the appropriate trunk line. This system is widely used all over the world to make long-distance calls.

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Information And Communication Technology (ict)

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Question 25 Report

Which of the following comes last in the chain of distribution? The

consumer Correct answer

manufacturer

retailer

wholesaler

agent

Answer Details

The consumer comes last in the chain of distribution. After the manufacturer produces the goods, the goods are sold to a wholesaler who then sells to a retailer. The retailer then sells the goods to the final consumer. Therefore, the final consumer is the last in the chain of distribution as they purchase the goods for their own use or consumption.

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Commerce

Occupation

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Question 26 Report

An increase in turnover is an increase in?

liquid capital

the volume of sales Correct answer

current assets

fixed assets

owners equity

Answer Details

An increase in turnover refers to an increase in the total value of goods or services sold by a business during a given period of time, usually a year. This means that the volume of sales has increased. Therefore, an increase in turnover is an increase in the amount of money the business has generated through its sales activities. It does not necessarily mean an increase in liquid capital, current assets, fixed assets or owners equity, although it may indirectly affect these financial aspects of the business.

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Business Capital And Profits

Commerce

Finance And Financial Institutions

Occupation

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Question 27 Report

When an industry is nationalized, ownership belongs to the?

shareholders

government Correct answer

tax payers

indigenes

foreigners

Answer Details

When an industry is nationalized, ownership is transferred from private owners to the government. This means that the government takes control of the industry, and it becomes a state-owned enterprise. Therefore, the correct option is the government.

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Economic Groupings

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Question 28 Report

Which of the following is not a basic want of man?

Transport Correct answer

Food

Water

Clothing

Shelter

Answer Details

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Commerce

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Question 29 Report

Which of the following is not a source of capital to a sole proprietor?

Loan from firends

Personal savings

Ploughing back profit

Borrow from relations

Borrowing through debentures Correct answer

Answer Details

The option that is not a source of capital to a sole proprietor is borrowing through debentures. Debentures are long-term financial instruments used by companies to raise capital by borrowing from the public. They are essentially loans that a company borrows from investors, promising to repay the principal amount along with interest at a specified rate. Sole proprietors, who run businesses on their own, are not allowed to issue debentures as a means of raising capital. Therefore, borrowing through debentures is not a source of capital available to sole proprietors.

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Legal Aspects Of Business

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Question 30 Report

The different between an overdraft and loan is that an overdraft?

does not yield interest

is giving to savings account holders only

yields interest on the customer before it is granted?

yields interest only on the sum drawn Correct answer

requires no application by the customer before it is granted

Answer Details

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Commerce

Trade

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Question 31 Report

A service whereby NIPOST undertakes to collect money due to the sender of a parcel is called?

C.O.D Correct answer

C.W.O

C.I.F

F.O.B

F.O.R

Answer Details

The service whereby NIPOST undertakes to collect money due to the sender of a parcel is called C.O.D (Cash On Delivery). This means that the recipient of the parcel pays for it upon delivery, and NIPOST then collects the payment on behalf of the sender. This service is commonly used in e-commerce and mail order businesses, as it allows customers to pay for goods only after they have received and inspected them.

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Commerce

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Question 32 Report

An instalmental buying system where ownership immediately transfers to the buyer is known as?

deferred payment Correct answer

hire - purchase

spot buying

cash sales

prompt payment

Answer Details

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Purchase And Sale Of Goods

Commerce

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Question 33 Report

Incorporation simply means the?

floating of a company

reorganization of a company

birth of a company Correct answer

registration of the Memorandum of Association

appointment of a new Board of Directors

Answer Details

Incorporation refers to the legal process of creating a company or corporation. It involves the registration of a company with the relevant government body and the filing of its articles of incorporation or memorandum of association. Once the company is incorporated, it becomes a separate legal entity that can own property, enter into contracts, and conduct business activities. Therefore, the correct answer is "birth of a company".

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Financing Business

Commerce

Occupation

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Question 34 Report

The cost of advertising a product is ultimately borne by the?

manufacturer

wholesaler

agent

consumer Correct answer

retailer

Answer Details

The cost of advertising a product is ultimately borne by the consumer. This is because the cost of advertising is typically included in the price of the product. The manufacturer or producer will factor in the cost of advertising when determining the price of the product, and then the retailer will mark up the price to cover their own costs and make a profit. Ultimately, it is the consumer who pays the final price, which includes the cost of advertising.

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Advertising

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Question 35 Report

Cash is said to be legal tender because it?

can be converted into money order

can be offered and accepted for payment Correct answer

is negotiable

also takes the form of bank draft

is portable

Answer Details

Cash is said to be legal tender because it can be offered and accepted for payment of goods and services. This means that the person who accepts cash in a transaction cannot refuse it as payment, as long as the amount is sufficient to cover the cost of the goods or services. Legal tender is recognized by law as a means of payment and is widely accepted in transactions. Unlike money orders or bank drafts, cash is physical currency that can be carried around and used immediately. Its portability makes it a convenient means of payment in many situations.

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Money

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Question 36 Report

The reward of shareholding in a company is?

profit

dividend Correct answer

interest

bonus

premium

Answer Details

The reward of shareholding in a company is dividend. Dividend is the portion of the company's profits that is distributed to its shareholders as a return on their investment. When a company makes a profit, it can choose to either retain the profit for reinvestment or distribute a portion of it as dividends to its shareholders. Shareholders receive their dividends in proportion to their shareholding in the company. Dividends can be paid in cash, stock, or property.

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Business Capital And Profits

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Question 37 Report

Any action taken by a company outside its stated objective is regarded as?

caveat vendetta

Trepass

ultra vires Correct answer

uberrimae fidei

a nuisance

Answer Details

The correct term for any action taken by a company outside its stated objective is "ultra vires." In simple terms, this means that the company is acting beyond its legal authority or power. Ultra vires actions are generally considered void and unenforceable by law.

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Economic Groupings

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Question 38 Report

A business unit whose membership ranges from 2-50 is a?

public corporation

partnership

public company

private company Correct answer

co-operative society

Answer Details

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Business Units

Occupation

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Question 39 Report

The excess value of the assets of a business over its liabilities is?

capital owned

working capital

issued capital

liquid capital

reserved capital Correct answer

Answer Details

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Business Capital And Profits

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Question 40 Report

The capital that is needed to meet the day-to-day running of a business is the?

fixed capital

reserved capital

circulating capital Correct answer

liquid capital

capital employed

Answer Details

The capital that is needed to meet the day-to-day running of a business is called circulating capital. It is also known as working capital, and it includes cash, inventory, accounts receivable, and other short-term assets that are used to pay for the day-to-day expenses of a business, such as salaries, rent, utilities, and raw materials. Circulating capital is important for the smooth operation of a business and is considered a short-term investment as it is continually being used and replenished in the course of business operations.

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Business Capital And Profits

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Question 41 Report

A parcel of shoes valued at N2,000 only. Which of the following would be used by the seller to correct this error?

An invoice for N200

A credit note for N1,800

A debit note for N1,800 Correct answer

A debit note for N2,000

A credit note for N2,200

Answer Details

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Purchase And Sale Of Goods

Commerce

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Question 42 Report

Which of the following is a form of sales promotion?

Advertising through radio

Advertising by television

Distributing printed sales literature

Offering free samples to customers Correct answer

Advertising by posters

Answer Details

The form of sales promotion from the given options is "Offering free samples to customers". Sales promotion refers to the marketing activities other than advertising, personal selling, and public relations, aimed at stimulating consumer purchases and dealer effectiveness. Offering free samples to customers is a common form of sales promotion where companies distribute free samples of their products to customers. This allows customers to try out the product without any obligation to buy and can help to increase sales by generating interest and familiarity with the product.

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Question 43 Report

The organization that aims at protecting the business interest of a particular area is the?

Trade Asociation Correct answer

Manufacturing Association of Nigeria

Chamber of Commerce

Confederation of industrialists

Trade Union

Answer Details

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Trade Associations

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Question 44 Report

In a limited partnership, the liability of most of the partners is?

pegged

unlimited

limited Correct answer

unpredictable

restricted

Answer Details

In a limited partnership, the liability of most of the partners is limited. This means that the liability of these partners is restricted to the amount of capital they have invested in the business. They are not personally liable for the debts and obligations of the partnership beyond their investment. However, there is usually one partner who has unlimited liability, known as the general partner. The general partner is personally liable for all the debts and obligations of the partnership. Limited partnership is a type of partnership where there are both limited partners and general partners.

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Legal Aspects Of Business

Occupation

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Question 45 Report

A bank may dishonour a cheque if?

it is not crossed

an alteration on the cheque is initiated

the amount on the cheque is less than the amount in the account

it has been endorsed to a third party

the amount on the cheque is more than the amount in the account Correct answer

Answer Details

A bank may dishonour a cheque if the amount on the cheque is more than the amount in the account. This means that there are not enough funds in the account to cover the amount written on the cheque. Banks are required to ensure that there are sufficient funds in an account before honouring a cheque. If a cheque is dishonoured, the bank will return the cheque to the account holder with an explanation of why it was not honoured. This could be due to insufficient funds, a stop payment order, a closed account, or other reasons. Dishonoured cheques can result in additional fees, legal action, and damage to the account holder's credit rating.

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Legal Aspect Of Business

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Question 46 Report

Which of the following is the safest means of sending a postal order from Lagos to a friend in Jos?

Registered letter

Recorded delivery Correct answer

Railex

First class mail

Express mail

Answer Details

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Occupation

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Question 47 Report

The handling of telephone and telex services is done by?

NITEL Correct answer

NIPOST

COURIER

NEC

NECA

Answer Details

The handling of telephone and telex services is done by NITEL (Nigerian Telecommunications Limited). NITEL is a Nigerian telecommunication company that was formerly owned by the Nigerian government. It was responsible for providing telephone and telex services to the public before it was privatized in 2006.

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Transport, Tourism, Communication And Warehousing

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Question 48 Report

New shares are offered to the public through?

acceptance houses

the stock exchange

issuing houses Correct answer

discount houses

finance houses

Answer Details

New shares are typically offered to the public through an issuing house. An issuing house is a type of financial institution that specializes in helping companies raise capital by issuing new securities, such as stocks and bonds, to investors. The issuing house plays a key role in underwriting the new securities, which means that it agrees to buy a certain number of shares or bonds from the company at a predetermined price, and then sells them to the public. The stock exchange is a marketplace where securities are bought and sold, but it is not typically involved in the initial offering of new shares.

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Stock Exchange

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Question 49 Report

A post office service which provides an alternative to delivery of mails by a postman is the?

Post Office Box Correct answer

Postcode

Business Reply Service

Post Office guide

Prepaid Post

Answer Details

The post office service which provides an alternative to delivery of mails by a postman is the "Post Office Box". A Post Office Box is a locked mailbox located at a post office station. This service enables individuals or businesses to rent a mailbox to receive mail and parcels. It provides a secure and convenient way to receive mail, particularly for those who do not have a permanent mailing address or do not want to disclose their home address. The post office box can be accessed at any time during the post office's business hours.

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Transport, Tourism, Communication And Warehousing

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Question 50 Report

Speed is an important consideration for the choice of a means of transport where goods are?

bulky

inferior

fragile

perishable Correct answer

durable

Answer Details

When choosing a means of transport for goods, speed is an important consideration when the goods are perishable, which means they can quickly spoil or go bad if not transported quickly. For example, fresh fruits and vegetables need to be transported quickly to avoid spoiling. Fragile goods such as glassware or electronics can also be damaged during transport, so a fast and secure means of transport is preferred. In contrast, bulky and durable goods may not require fast transportation as they are less susceptible to damage or spoilage during transport.

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Transport, Tourism, Communication And Warehousing

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Question 51 Report

Which of the following is not an elements of the marketing mix?

Product

Pricing

Promotion

Purchases Correct answer

Place

Answer Details

The element that is not part of the marketing mix is "Purchases". The marketing mix is made up of four P's: product, price, promotion, and place. These elements are essential for the development and implementation of a successful marketing strategy. The product refers to the goods or services offered by the company, while pricing involves setting the right price for the product. Promotion involves advertising and promoting the product to potential customers. Place refers to the location where the product is made available to customers, such as a physical store or an online platform. Purchases are made by the customers, but it is not an element of the marketing mix.

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Elements Of Marketing

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Question 52 Report

Third party insurance covers, damages?

to both passengers and the vehicle

caused by the vehicle insured Correct answer

to all parties concerned

to both vehicles involved

to the insured vehicle only

Answer Details

Third party insurance covers damages caused by the vehicle insured to other parties involved in an accident or incident. This means that if the insured vehicle causes damage to another person's vehicle, property or causes injury to other people, the insurance company will pay for the damages or compensation owed to the affected party. Third party insurance does not cover damages to the insured vehicle or the policyholder.

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Legal Aspect Of Business

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Question 53 Report

Which of the following statements is true of the manufacturing industry?

The factors of production cannot move to other occupations

It is involved in changing raw materials to finished goods Correct answer

Its product cannot be distributed to consumers

It doesn't not benefit from the services of direct labour

The workers are unskilled

Answer Details

The true statement of the manufacturing industry is: "It is involved in changing raw materials to finished goods." The manufacturing industry is involved in the production of goods using raw materials, labor, and machinery. It transforms raw materials into finished goods that are ready for sale to consumers. Manufacturing requires skilled labor, specialized machinery, and facilities, making it different from other industries. The finished products are then distributed to consumers through various channels such as wholesalers, retailers, and e-commerce platforms.

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Question 54 Report

The charge paid for failing to off-load a vehicle within a stipulated time is called?

freight

demurrage Correct answer

fine

fare

floating charge

Answer Details

The charge paid for failing to off-load a vehicle within a stipulated time is called "demurrage". Demurrage is a fee charged by the carrier of goods or cargo for the delay in unloading or loading the cargo beyond the stipulated time. It is usually calculated on a per-day or per-hour basis and the amount charged varies depending on the terms of the contract. The purpose of demurrage is to compensate the carrier for the extra costs incurred as a result of the delay and to encourage the timely off-loading of cargo.

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Question 55 Report

A system in which people provide their own needs directly is known as?

sub-standard economy

subsistence economy Correct answer

mixed economy

monetized economy

specialized economy

Answer Details

A system in which people provide their own needs directly is known as a subsistence economy. In this type of economy, people produce goods and services mainly for their own consumption and survival rather than for sale or trade. They rely on natural resources and their own skills and labor to meet their basic needs such as food, shelter, and clothing. The subsistence economy is often found in rural and remote areas where people have limited access to markets and modern infrastructure. It is characterized by low levels of productivity and living standards, and often lacks the specialization and division of labor found in more developed economies.

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Commerce

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Question 56 Report

A person who sells goods belonging to another person in his own name and receives commission is a?

wholesaler

retailer

sole trader

factor Correct answer

merchant

Answer Details

The term used to describe a person who sells goods belonging to another person in his own name and receives a commission is a "factor". Essentially, the factor is acting as an intermediary between the owner of the goods and the buyer, facilitating the sale and taking a commission for their services. This arrangement is often used when the owner of the goods does not have the means or desire to sell the goods themselves, and the factor is able to use their network and expertise to find buyers and close deals.

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Legal Aspects Of Business

Occupation

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Question 57 Report

The main advantage of water transport is that it?

is safe

is slow Correct answer

can carry heavy goods

can go long distances

is owned by private firms

Answer Details

Read lesson note on Transport, Tourism, Communication And Warehousing (WAEC)

Transport, Tourism, Communication And Warehousing

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Question 58 Report

A crossed postal order is?

generally acceptable for payment

easily converted to cash

the same as money order

cashed through a bank

cashed through a post office Correct answer

Answer Details

A crossed postal order is a financial instrument used for making payments that is drawn by a post office. It is similar to a money order, but it can only be cashed through a post office. The term "crossed" refers to the fact that two parallel lines are drawn on the face of the order, indicating that it cannot be cashed directly but has to be credited to a bank account. This makes it more secure than an uncrossed postal order, as it reduces the risk of theft or loss during transmission or delivery.

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Money

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Question 59 Report

The rights, responsibilities and liabilities of each partner are specified in the?

memorandum of association

prospectus

articles of association

deed of partnership Correct answer

deed of conveyance

Answer Details

Read lesson note on Legal Aspects Of Business (JAMB)

Legal Aspects Of Business

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Question 60 Report

Founders shares are usually referred to as deferred shares because the holders?

are not entitled to any dividend

receives their dividends before other share holders

are the managers of the company

receive dividends after other shareholders Correct answer

are entitled to accumulative dividends

Answer Details

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Legal Aspect Of Business

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Question 61 Report

Department stores are usually located?

where low income earners live

In suburban towns

at city centres Correct answer

in low rental areas

In areas free from traffic jam

Answer Details

Department stores are typically located in city centers or high-traffic areas. This is because these locations provide easy accessibility to customers and high visibility to the store. Suburban towns may also have department stores, but they are typically smaller in size and may not have as wide a variety of products. Low-income areas may not be the ideal location for department stores due to the target market having limited purchasing power. Additionally, department stores require a large amount of space for merchandise display and storage, which may not be feasible in low-rental areas. Therefore, city centers or high-traffic areas are the most preferred location for department stores.

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Question 62 Report

Which of the following defines communication?

Movement of goods

Transmission of information Correct answer

Movement of people

Storing of information

Distribution of newspapers

Answer Details

Communication is the transmission of information or exchange of ideas, thoughts or messages between two or more people. It involves sending and receiving messages through various channels like speaking, writing, gestures, or electronic means. The information communicated could be about anything, such as personal opinions, business-related matters, or conveying emotions. Thus, the correct option that defines communication is "Transmission of information."

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Information And Communication Technology (ict)

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Question 63 Report

Goods discharged from ship on which import duties have not been paid are kept in the?

ordinary warehouse

private warehouse

public warehouse

wholesaler warehouse

bonded warehouse Correct answer

Answer Details

Goods discharged from a ship on which import duties have not been paid are kept in the bonded warehouse. A bonded warehouse is a building or a secured area in a port, airport or at the border, where imported goods that are subject to customs duty and taxes are stored until the duties and taxes are paid or the goods are released for export. Bonded warehouses are managed by the government or by private entities that are authorized by the government to operate such warehouses. The purpose of bonded warehouses is to provide a secure storage area for goods that have not yet cleared customs, to prevent loss or theft of the goods, and to provide an opportunity for the payment of customs duties and taxes before the goods are released for consumption in the local market.

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Commerce

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Question 64 Report

Which of the following assigns a name to a product?

Packaging

Labelling

Patent

Branding Correct answer

Answer Details

The correct answer is branding. Branding is the process of creating a name, design, symbol, or other feature that identifies and differentiates a product from other products in the market. It helps to establish the product's identity and reputation, and creates a connection with the consumers. Branding involves developing a unique name and image for a product in the consumer's mind, which helps to promote the product and increase its sales.

Read lesson note on Purchase And Sale Of Goods (JAMB)

Purchase And Sale Of Goods

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Question 65 Report

One of the main problems of nationalization is that?

nationals ,may not welcome the change of ownership

foreigners are not able to control the economy

repatriation of profit is increased

there may be capital flight Correct answer

there will be adverse balance of payment

Answer Details

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Commerce (JAMB)

Purchase And Sale Of Goods

Commerce

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Question 66 Report

In which class of occupation would doctors, teachers and entertainers be grouped?

Extraction

Industrial

Direct Service Correct answer

Commercial

Industrial Service

Answer Details

Doctors, teachers, and entertainers would be grouped under the "Direct Service" class of occupation. This class of occupation involves individuals who provide services directly to consumers, such as health care, education, entertainment, and hospitality services. The Direct Service class is distinguished from other classes such as Industrial, which includes jobs involved in producing goods, and Commercial, which includes jobs in buying and selling goods and services.

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Occupation

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Question 67 Report

Which of the following terms of price quotation includes cost of transportation to buyers premises?

FOB

C & F Correct answer

FOR

FAS

Exship

Answer Details

The term of price quotation that includes the cost of transportation to the buyer's premises is C & F. C & F stands for "Cost and Freight", and it is a type of Incoterm used in international trade where the seller is responsible for the cost of transporting the goods to the destination port and also for the payment of freight charges. The C & F price quotation includes the cost of the goods, the cost of transportation to the destination port, and the freight charges. Once the goods arrive at the port, the buyer takes responsibility for any further transportation and costs associated with it.

Read lesson note on Purchase And Sale Of Goods In Home And Foreign Trade (WAEC)

Read lesson note on Commerce (JAMB)

Purchase And Sale Of Goods In Home And Foreign Trade

Commerce

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Question 68 Report

Which of the following services is not rendered by NIPOST?

Poste Restante

Express delivery

C.W.O

Telegram Correct answer

Registered post

Answer Details

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Production

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Question 69 Report

An association of local,independent retailers formed to encourage buying in bulk from manufacturers is known as?

voluntary chain

producer co-operative society Correct answer

multiple store

departmental store

hypermarket

Answer Details

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Question 70 Report

The process of selling government business to the public is known as?

naturalization

nationalization

privatization Correct answer

commercialization

indigenization

Answer Details

The process of selling government business to the public is known as privatization. This involves the transfer of ownership and control of public assets and enterprises to private individuals or organizations. The aim of privatization is usually to increase efficiency, reduce government involvement in business activities, and raise funds for the government. Privatization can take different forms, such as selling shares of a public company to the public, selling assets to private companies, or contracting out public services to private companies.

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Commerce

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Question 71 Report

Net Profit is the?

excess of income over expenses Correct answer

total income from the sale of goods

difference between sales and purchases

amount of purchasenless closing stock

excess of total sales over total purchases

Answer Details

Net Profit is the excess of income over expenses. In other words, it is the amount of money a company earns after deducting all the expenses incurred to generate that income. It takes into account all the revenue earned by a business and all the expenses incurred to generate that revenue. Net profit is an important indicator of a company's financial health and profitability. It is often used to measure a company's performance over a given period, and it is the basis for calculating taxes, dividends, and retained earnings.

Read lesson note on Business Capital And Profits (WAEC)

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Production (JAMB)

Business Capital And Profits

Purchase And Sale Of Goods

Production

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Question 72 Report

The concept that consumers decided what goods and services shall be known as consumer?

protection

surplus

sovernignty Correct answer

behaviour

co-operative

Answer Details

The correct option is "sovereignty". Consumer sovereignty is the idea that consumers have the power to determine what goods and services are produced and sold in a market economy. It means that the consumer is the ultimate decision-maker in what is produced because they ultimately determine what is in demand. The producer will only create products and services that consumers are willing to buy, and will make changes based on consumer feedback. Consumer sovereignty is a key principle in a market economy, where businesses compete to provide the best products and services to meet consumer demands.

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Commerce

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Question 73 Report

The performance of business activities that directs the flow of goods and services from the producer to the consumer is?

marketing Correct answer

merchandising

transportation

production

marketing mix

Answer Details

The correct answer is "marketing". Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. It involves identifying and understanding the needs and wants of customers, and then creating and delivering products and services that satisfy those needs and wants. The goal of marketing is to create and maintain a mutually beneficial relationship between the producer and the consumer, and to ensure that products and services are delivered efficiently and effectively from the producer to the consumer.

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Advertising

Legal Aspect Of Business

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Question 74 Report

The machine used in sending telex message is known as?

photocopier

typewriter

teleprinter Correct answer

punching machine

dictaphone

Answer Details

The machine used in sending telex message is known as a "teleprinter". It is an electromechanical device that can both send and receive typed messages over a telecommunications system. The teleprinter has a keyboard for typing messages, and a printing mechanism that prints the message onto a roll of paper or a continuous strip of tape. The messages are sent via a wire or radio link to another teleprinter at the receiving end, where the message is printed out. Telex was a popular means of long-distance communication before the advent of email and the internet.

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Information And Communication Technology (ict)

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