WASSCE COMMERCE MAY/JUNE 2007 (SSCE WAEC MAY/JUNE 2007 COMMERCE
OBJECTIVE TEST QUESTIONS
1. Which of the following was not used as a medium of exchange by the early Europeans that came to West Africa?
A. Pounds and shillings
B. Copper manillas
C. Iron bars
D. Cowries.
2. The ancillary to trade which ensures that people gain access to facts pertaining to goods is
A. insurance
B. advertising
C. warehousing
D. banking.
3. Which of the following is classified as an extractive industry?
A. Digging for minerals
B. Digging for road building
C. Canning of Tomato puree
D. Assembling of cars.
4. Who among the following does not render direct service?
A. Teachers
B. Musicians
C. Doctors.
D. Retailers.
5. A partnership cannot raise its capital by
A. selling shares to the public
B. personal contribution of partners
C. admission of new partners
D. undistributed profits.
6. Which of the following is not required in the Mail Order business?
A. Warehouse
B. Catalogue
C. Display room
D. Post office
7. The staff responsible for the calculations of probability of losses in insurance is the
A. Actuary
B. Underwriter
C. Broker
D. Solicitor.
8. The rate at which the country’s import exchanges for its export is known as
A. Terms of trade
B. Balance of trade
C. Rate of exchange
D. Terms of exchange.
9. Where a limited partner exists in a partnership,
A. no active partner is needed
B. other partners must be nominal
C. at least one ordinary partner must be there.
D. at least one member must be a legal practitioner.
10. Which of the following is best organized as a partnership?
A. Drilling and marketing of crude oil
B. Brewing and distribution of beer
C. Designing and building of houses
D. Assembling and marketing of vehicles
11. Public enterprises are financed mainly by
A. the shareholders
B. commercial banks
C. government grants
D. The World Bank
12. Contributing money to buy equipment for making and marketing a product is a feature of
A. thrift societies
B. public limited companies
C. consumers’ cooperatives
D. producers’ cooperatives.
13. The operations of a private company is guided by the
A. deed
B. certificate of trading
C. certificate of incorporation
D. company’s act.
14. The various rights attached to different classes of shares are stated in the
A. articles of association
B. memorandum of association
C. balance sheet
D. prospectus.
15. Which of the following gets extra dividend after its due fixed rate of dividend?
A. Preference shares
B. Cumulative preference shares
C. Ordinary shares
D. Participating preference shares.
16. A company may be wound up when
A. there is a disagreement among the directors
B. there are too many shareholders
C. many of the shareholders die
D. its product competes with that of the government
17. If the opening stock is Le200, cost of goods sold Le2,400, and closing stock Le120, then the rate of turnover is
A. 20 times
B. 15 times
C. 12 times
D. 7.5 times.
18. The money used by Njie & Co. Ltd in running the day-to-day activities of the business is represented by
A. total assets less total liabilities
B. total assets less current liabilities
C. current assets less stock
D. current assets less current liabilities.
19. A limited company has an authored capital of 20,000,000 shares. If each share capital costs 50k and the company sold 12,000,000 shares. Its issued capital is
A. N16,000,000
B. N10,000,000
C. N6,000,000
D. N4,000,000.
20. A document used to advertise shares for sale is
A. prospectus
B. annual report
C. articles of association
D. memorandum of association
21. Which of the following refers to a voluntary association that represents a cross-section of business interests in an area?
A. Manufacturers’ Association
B. Chamber of Commerce
C. Consumers’ Association
D. Employers’ Association.
22. Which of the following is used to show that goods imported were produced in an ECOWAS member country?
A. Insurance policy
B. Bill of lading
C. Certificate of origin
D. Bill of exchange
23. Importing goods into a country for re-exporting is known as
A. home trade
B. retail trade
C. entrepot trade
D. counter trade
24. Which of the following is a function of the small retailer?
A. Financing manufacturers
B. Warehousing of goods
C. Branding of goods
D. Selling to consumers.
25. The content of a bill of lading does not include the
A. name of the shipper
B. date and place of shipment
C. name and destination of the vessel
D. demurrage payable.
26. Who is responsible for the payment of the bill in a documentary credit?
A. Eporters
B. Importer
C. Importer’s bank
D. Exporter’s bank
27. A popular product priced low to attract a larger number-of buyers to a shop is called
A. loss leader
B. capital good
C. seasonal good
D. price ring.
28. Central buying and decentralized selling are features of
A. cooperative wholesalers
B. Department stores
C. mail order business
D. multiple stores
29. Which of the following is not a feature of a self- service store?
A. It is found mainly in urban areas
B. It offers steady employment opportunities
C. Goods carry price tags
D. It operates on a large floor space
30. If a share is sold at a price below its face value, it is sold
A. above par
B. at a discount
C. at par
D. at premium.
31. Mr. Ojo buys a book from a bookseller and pays cash. The bookseller will issue him a
A. debit note
B. credit note
C. voucher
D. receipt.
32. A limited company can raise long term capital through the
A. commodity market
B. stock exchange market
C. export market
D. foreign exchange market
33. Which of the following is not a reason for dishonouring a cheque?
A. Insufficient funds in drawer’s account
B. When the cheque is stale
C. Amount in figure differs with amount in words
D. Poor handwriting.
34. Which of the following is not a function of the Central Bank?
A. Banker to the government
B. Bankers’ bank
C. Issuance of currency notes
D. Granting loans to the public.
35. Treasury bills are bought and sold in the
A. Capital market
B. Open market
C. Commodity market
D. Money market
36. Which of the following is a legal tender?
A. Bank notes
B. Bank drafts
C. Central bank cheque
D. Accident insurance
37. Which of the following is referred to as the oldest form of insurance?.
A. Marine insurance
B. Burglary insurance
C. Whole life assurance
D. Accident insurance
38. An open cheque is one
A. on which the amount is written only in figures
B. which has no name
C. which can be cashed over the counter
D. which has no specific amount written on it.
Use the following information to answer questions 39 to 41
Madam Tope insured her shop premises for the sum of D60,000, when insuring the shop, she did not tell the Insurance Company that she cooks in the shop, but told the Insurance Company that she sells second hand clothes. Hence she insured her store against natural causes. Tope’s shop got burnt yesterday by fire from the cooking pot.
39. Which of the following insurance principles was breached by Madam Tope?
A. Insurable Interest
B. Contribution
C. Utmost good faith
D. Subrogation
40. Which of the following insurance principles will prevent he from claiming compensation?
A. Indemnity
B. Insurable interest
C. Proximate cause
D. Utmost good faith
41. The amount of D60,000 quoted represents
A. premium
B. Contribution
C. contribution
D. compensation
42. If the charterer delayed the ship beyond the lay days, he is asked to pay
A. dead freight
B. demurrage
C. lump sum
D. freight
43. Which of the following involves the delivery of mails to a traveller without fixed address?
A. Speedpost
B. Reply paid
C. Recorded delivery
D. Poste restante
44. A document showing full details of the goods and carried in a ship or aircraft is
A. Bill of lading
B. Airway bill
C. Manifest
D. Indent
45. Which of the following is not a means of water transport?
A. Liner
B. Tanker
C. Truck
D. Barge
46. Which of the following provides evidence of receipt’ of an important document sent through the post?
A. Recorded delivery service
B. Air mail service
C. Letter post
D. Express delivery service
47. Which of the following is an advantage of transportation by sea?
A. Goods can’ be delivered from door to door
B. It is a cheaper means of transporting goods
C. It is accident free
D. It is the fastest means of transport
48. Which of the following refers to the division of a market into identifiable sub-markets?
A. Market research
B Market segmentation
C. Market penetration
D. Marketing mix
49. A specialist on the stock exchange who buys and sells securities in his own name is a
A. Stag
B. Bull
C. Broker
D. Jobber
50. A document showing that a person has shipped certain goods through a named ship is
A. bill of lading
B. bill of exchange
C. dock warrant
D. bill of entry