OBJECTIVE QUESTIONS1.         A bonded warehouse is a place for keeping            A. contraband goods B. dutiable goodsC. tax free goods.D. smuggled goods.2.         Which of the following can quote its shares on the stock exchange?            A.    Partnership  B. Sole proprietorship             C. Co-operative societyD. Public Limited Company3.         If a businessman wants to insure against dishonesty of the cashier, he will take            A. a burglaty policy.B. an employer’s liability coverC. a fidelity guarantee cover            D. a consequential loss policy4.         Which of the following describes the reason for international trade?            A. Balance of payment          B. Comparative cost advantage            C. Absolute cost advantage   D. Balance of trade5.         Small scale retailers continue to survive inspite of serious competition from large scale       retailers because they            A.    buy from many manufacturers  B. maintain personal relationship with customers.            C. stock only one line of goods in their stalls.            D. do not separate business money from personal money.6.         Which of the following factors is not to be considered in starting a retail trade?            A. Size of the businessB. Nature of businessC. Amount of capital required            D. Level of tax payable7.         The import of foreign-produced goods to be re-exported is known as            A. domestic trade   B. wholesale trade. C. entrepot trade.D. counter trade.8.         One roof containing a number of shops is a            A. tied shop    B. mail order firm  C. department storeD. chain store.9.         The selling of articles from place to place on foot is            A. mail order  B. itinerant tradingC. barterD. self service10.       A company whose shares are not easily transferable is a            A private limited companyB. public limited companyC. public corporation            D. company limited by guarantee11.       Which of the following must be stated in the article of  association            A. The objects of the company  B. The registered office address of the company            C. The method of issue and transfer of sharesD. Statement that liabilities are limited12.       Which of the following insurance principles states that a person must be in a position to     suffer financially in the event of a loss?            A. Proximate cause    B. IndemnityC. Insurable interestD. Subrogation13.       Catalogues are mostly used by            A. chain stores.B. department storesC. mail order firmsD. supermarkets.14.       The main function of a thrift and credit cooperative society is to            A. encourage members to buy cheaplyB. enable members get  highest profit            C. help member get legal redress D. encourage members to save.15.       The exchange of goods for goods  in home trade is known as            A. centrepot tradeB. trade by barter  C. commodity tradeD. distributive trade16.       Which of the following is the safest way of sending important documents through the       post?            A. Registered mailB. Parcel postC. Letter post D. Express mail17.       Which of the following is not true of the stock exchange?            A. It is a commodity market   B. It provides market for trading on shares            C. Government and companies raise fund through it            D. It provides professional advice on investment18        A cheque issued in January 1997 which the holder failed to present for payment until        September 1997 is called a            A. crossed chequeB. traveller’s cheque C. post-dated chequeD. stale cheque.19.       When the buyer of an existing share is to receive the pending dividend, the price is            A. cum div  B. ex-div  C. at par D. at a discount20.       What is the name of the service where a bank makes regular payment on behalf of its         customers?            A. Direct debitB. Credit transferC. Standing orderD. Bank draft21.       The enterprise whose main objective is to provide the public with essential services is.        known as            A. cooperative society   B. partnership  C. private companyD. public corporation22.       Which of the following is a more suitable medium for advertising a new tractor?            A. Radio        B. Poster   C. Neon signD. Trade fair23.       Which of the following is an advertising function?            A. PackagingB. Persuading   C. GradingD. Segmenting24.       The document of title to goods being shipped abroad is known as            A. consignment noteB. ships manifest C. bill of entryD. bill of lading.25.       The practice whereby customers purchase goods without being attended to by shop           assistants is            A. pre sales serviceB. after sales service C. self serviceD. impulse buying.26.       In which of the following organisations are members entitled to one vote, irrespective of   the number of shares held?            A. Public corporation  B. Partnership   C. Limited companyD. Co-operative society27.       Mobile Shopping involves selling.            A. from motor van     B. at a particular spot in the city            C. in multiple shops only   D. from vending machine.28.       The provision of adequate number of berths by which ships  can load and off-load is the   function of the            A. Department of Customs & Excise.           B. Ports Authority            C. Shipping and Forwarding Agent  D. National Shipping Line.29.       Which of the following is not a disadvantage of a one-man-business?            A. Unlimited liability of owner   B. Life of business limited to life of owner            C. Personal control of business D. Difficulty iii raising additional capital30.       Unlimited liability in business implies that the            A. risk of the owner is limited only to the amount invested.            B. debts are paid with subventions.            C. properly of the owners should not be used to secure loans.            D. owners private property can be used to settle the business debts.31.       Sole proprietorship is a form of business owned by            A. an individualB. two or more persons.            C. a registered business subsidiary.D. the government.32.       Which of these qualities guarantee the keeping of money for a long period?            A.  Acceptability   B.  Divisibility  C. Durability  D. Homogeneity33.       Which of the following  is not a source of fund for sole proprietorship?            A. Personal savings    B. Borrowing from friends and relatives            C. Borrowing from financial institutions D. Government bonds34.       Which of the following is not an advantage of partnership?            A. Diversified managerial talents  B. Greater financial resources            C. Freedom to terminate business D. Account is not made public35.       Which of the following is used for a single payment of many people at the same time        through a bank instead of writing separate cheques?            A. Debit transfer        B. Credit transfer  C. Certified chequeD. Crossed cheque36.       The Legal document that gives an individual power to protect his own piece of invention is called            A. copy rightB. licenseC. patent rightD. trade mark37.       A mortgage bank is primarily concerned with financing the acquisition of            A. motor vehicle    B. research equipment C. computer machine D. dwelling houses.38.       The work of actuaries is to            A. underwrite insurance risks B. calculate insurance premiums.            C. settle insurance claims.   D. assess profits for insurance companies.39.       Government financial grants is a source of capital to a            A. partnershipB. public limited company  C. public corporation.D. co-operative society.40.       Which of the following is not a feature of a co-operative society?            A. Owners are the customers B. Capital can be repaid to a member            C. Votes are according to shares held D. Dividend is based on patronage41.       The practice of selling a product below the cost price to attract customers to a shop is        known as            A. hedgingB. loss leaderC. skimming D. under- invoicing.42.       Which of the following is not contained in a deed of  partnership?            A. Names and addresses of partners B. Ratio for sharing profits and losses            C. Investment of each partner  D. Rate of taxation43.       The publication of facts on a firm’s product is called            A. merchandizing  B. exhibition.C. feature articles  D. mass advertising.44.       Which of the following is not a function of a retailer?            A. Providing after sales service B. Stocking variety of goods            C. Selling in small units to the consumers D. Financing manufacturers45.       A firm on the stock exchange which agrees to buy shares not bought after a public offer    is            A. a brokerB. a stagC. a jobberD. an underwriter46.       Which of the following ancillary services makes it possible for goods to be where they      are required?            A. CommunicationB. BankingC. Transportation D. Insurance Use the following information below to answer questions 47to 49.Ojo bought a bicycle for N20,000, and repaired it at a cost of N5,000. He then sold the     bicycle for N30,000.47.       What was his net profit?            A. N35,000    B.N25,000     C.Nl5,000      D. N5.00048.       What is the percentage of expenses over cost?            A.50%            B. 33%           C.  25%   D. 17%49.       What is the cost of goods sold?            A. N30,000   B.  N25,000   C.   N20,000  D.  N  15,00050.       Which of the following mode of transport involves the use of tramps             A.  Land transport  B.  Sea transport  C.  Air transport   D. Pipeline