WASSCE COMMERCE MAY/JUNE 2000 (SSCE WAEC MAY/JUNE 2000 COMMERCE)
Answer all the questions
1. Which of the following can be defined-as trade and aids to trade?
A. Advertising
B. Commerce
C. Wholesaling
D. Retailing
2. Which of the following is not a source of finance to a sole proprietor?
A. Trade Credit
B Overdrafts
C. Debentures
D. Leasing of equipment
3. Partners who allow their names to be used in a partnership but do not take part in the management of the business are
A. active partners
B. limited partners
C. general partners
D nominal partners
4. A private company is one which
A. must publish its audited account
B. floats its shares on the stock exchange market
C. restricts the rights to transfer its shares
D. is owned by a maximum of twenty members merger
5. The coming together of two or more firms at different stages of production is
A. horizontal merger
B. vertical merger
C. amalgamation
D. cartel
6. The total value of fixed and current assets is
A. working capital
B. capital employed
C. Fixed capital
D. capital owned
Use the following equation to answer questions 7 and 8 Gross Profit=(Closing stock + P) less (Opening stock + G)
7. What is P in the above equation?
A. Purchases
B. returns
C. Sales
8. What is G in the above equation?
A. Sales returns
C. Purchases
B. Net Profit
D. Carriage outwards
9. Which of the following is true about cumulative preference
A. Unpaid dividends are carried forward B. Shareholders can secure capital refund on demand C. Shareholders are entitled to further share of profit D. Dividends are paid into a special account
10. A debenture is mortgaged when it is
A. not secured on the assets of a company B. secured on the assets of a company
C. irredeemable D. redeemable.
11. A retail outlet which sells a fairly narrow range of goods with a number of branches in different towns is a
A. supermarket B. mail-order shop C. mobile shop D. multiple shop
12. A consignment note is used when
A. goods are wrapped and labelled for easy identification
B. goods are dispatched to agents through transporters
C. damaged goods are being returned
D. there is over-invoicing
13. Which of the following is not contained in an advice note?
A. Type of goods B. Price of goods C. Date of despatch D. Means of despatch
14. A refund of the duty collected on goods imported and processed for re- export is
A. excise duty B. excise draw back C. preferential duty D. value added tax
15. When a country’s total visible and invisible exports are more than its visible and invisible imports, it has
A. favourable balance of payments B. favourable balance of trade
C. unfavourable balance of trade D. unfavourable balance of payments
16. Which of the following is not a function of a retailer?
A. Supplying goods to final consumers B. Bulk breaking
C. Giving information to the wholesaler D. Branding and packaging of goods
17. A merchant who wishes to order goods from a foreign country sends
A. an invoice B. an indent C. an advice note D. a credit note
18. The production of goods in anticipation of demand is possible because of the existence of
A. Packaging B. advertising C. warehousing D. branding
19. Which of the following is sent in reply to a letter of enquiry?
A. Quotation B. Order C. Consumer invoice D. Advice note
20. The abbreviated phrase E & OE is usually printed on
A. an invoice B. a cheque C. a delivery note D. a debit note
21. Which of the following refers to a price reduction based on the size of order?
A. Cash discount B. Trade discount C. Seasonal discount D. Cash on delivery
22. Which of the following is nota means of payment in foreign trade?
A. Telegraphic money order B. Specially crossed cheque
C. Letters of credit D. Debit transfer
23. A bill of exchange on maturity is allowed
A. seven days of grace B. five days of grace C. four days of grace D. three days of grace
24. Which of the following is not a financial institution?
A. Commodity Board B. Insurance company C. Clearing house D. Stock exchange
25. When a customer writes a cheque in his own name and withdraws cash with it from his account he is both the
A. drawee and the payee B. drawer and the payer C. drawee and the drawer
D. drawer and the payee
26. Which of the following is a means of payment through the post office?
A. Standing Order B. Promissory note C. Money order (d) Telegraphic transfer
27. Which of the following encourages people to save towards owning a house?
A. Merchant bank B. Development bank C. Mortgage bank D. Commercial bank
28. Which of the following services is not rendered by commercial banks?
A. Business advice B. Currency notes issue C. Accepting deposits D. Credit Transfer
29. A retirement insurance policy which enables the assured to receive income for a specific period is
A. annuity B. endowment C. whole life D. fidelity guarantee
30. A house worth N 5 0.000 was insured against fire for
N 30,000. Fire destroyed and caused damages worth
N 20.000 on the house. Under which insurance principle
will the owner be entitled to a compensation of N 20.000?
A. Contribution B. Subrogation C. Indemnity D. Uberrimae fidei
31. When an insurance company indemnifies the insured and takes over his rights, this is known as
A. abandonment B. subrogation C. proximate cause D. contribution
32. In Public Limited Liability Companies, equities are referred to as
A. preference shares B.
33. The method of sending messages by the teleprinter is
A. telephone B. cablegram C. telex D. railex
34. The information on terms of carriage of mails is found in
A. business journal B. post office guide C. trade directory D. service manual
35. Rail transport is less flexible than road transport because
A. rail lines run between specific terminals B. train is slow over long distances
C. only bulky goods are carried by rail - D. road transport is suitable for short distances
36. Which of the following is used for moving only goods from one seaport to another?
A. Ocean liner B. Cargo liner C. Ferry D. Coaster
37. The marketing activity that stimulates immediate demand for a product is
A. sales promotion B. publicity C. consumer relations D. personal selling
38. Which of these is not a basic marketing function?
A. Exchange . B. Production C. Facilitation D. Information
39. Branding is a tool for
A. competitive advertising B. consumerism C. marketing research D. pricing policy
40. Firms wishing to defend established products as well as launch new ones will make use of A. franchising B. product differentiation C. branding D. advertising
41. Which of the following is a method of sales promotion?
A. Radio gingles B. Poster display C. Trade fair- D. Television broadcast
42. The deliberate and sustained efforts to maintain a good image of a company is known as
A. personal relations B. public relations C. professional relations D. industrial relations
43. A contract of sale where ownership passes to the buyer on the payment of the first installment is known as
A. hire purchase B. lease C. cash on delivery D. credit sale
44. Which of the following agents guarantees payment for transactions entered into on behalf of the principal?
A. Auctioneer B. Factor C. Broker D. Del credere
45. Which of the following is not a means of consumer protection?
A. Price control B. Sale of Goods Act C. Trade Description Act D. Tax laws
46. Which of the following is a basic requirement for a valid contract?
A. Representation B. Consideration C. Interest D. Performance
47. A counter-offer in a contract is regarded as
A. an acceptance B. an invitation to treat C. a rejection D. a consideration
48. Which Of the following is not a right of the consumer?
A. Safety B. Choice C. Discount D. Value
49. Which of the following is an agreement to transport goods but not a document of title?
A. Air-waybill B. Bill of lading C. Charter party D. Freight note
50. In which of the following classes of occupation would you place a doctor?
A. Extractive B. Commercial C. Direct services D. Indirect services