WASSCE COMMERCE MAY/JUNE 2014 (SSCE WAEC MAY/JUNE 2014 COMMERCE)
1. A price quotation which includes which include all the expenses involved in loading the goods into a ship is
A. Free on Board (FOB)
B. Free Alongside Ship(FAS)
C.Cost, Insurance Freight (C.I.F)
D. ex-ship
2. Shares, bonds, stocks and debentures traded on the stock exchange are collectively called
A. collaterals
B. Commodities
C. resources
D. securities
3. In a hire purchase contract, the customer becomes the legal owner of goods by
A. paying the last instalment
B. paying the first instalment
C. taking possession of goods
D. paying half the purchase price
4. Which of the following is engaged in commercial occupation
A. brick layer
B. an engineer
C. An insurer broker
D.A barber
5. “Net 3 months” on an invoice means the buyer will
A. pay interest after 3 months
B. get discount if he pays within 3 months
C. pay full invoice after 3 months
D. have discount if he pays after 3 months
6. The ratio between a country’s export and her imports prices is the
A. balance of trade
B. balance of payment
C. terms of trade
D. exchange rate
7. The charge paid to a ship owner for the unused part of a ship is known as
A. penalty
B. dock dues
C. dead freight
D. demurrage
8. Fidelity guarantee insurance will only cover
A. cashier’ fraud
B.daylight robbery
C. loss of profit
D.unpaid load
9. In the absence of bill of lading which of the following is used to clear the goods
A. Bill of sight
B. Dock arrant
C. Certificate of origin
D.Mate’ s receipt
10.A system of sales, where goods are sold to the highest bidder is known as
A. credit sale
B.. hire purchase
C. clearance sale
D. auction sale
11.The term “fiduciary issue” means
A. money issued without gold backing
B. money issued with gold backing
C. money issued as currency note
D. gold reserve
12. An insurance principle which prevent an insured when compensated is known as
A. proximate cause
B. indemnity
C. insurable interest
D. utmost good faith
13. A retail outlet with many branches all dealing in similar line of goods is described as a
A. departmental store
B. supermarket
C. chain store
D. hypermarket
14. The person who gave his building as a security for loan is .known as a
A. trustee
B. mortgagee
C. mortgagor
D. guarantor
15. A firm that specializes in packing and shipping of goods is known as
A. forwarding agent
B. general agent
C. del credere agent
D. cargo handling company
16. Which of the following is a function of marketing department in a firm
A. Add value to goods and services
B. Protect those who engage in business transactions
C. initiates general policies in the organization
D. Handle all staff matters in the business
17.An individual or company that engages in the transportation of any type of goods for a fee is called a
A. common carrier
B. hawker
C. porter
D. clearing agent
18. Debentures which are secured by the fixed assets of a company are called
A. Mortgage Debentures
B. Naked Debentures
C. Redeemable Debentures
D Irredeemable Debentures
19. The central bank sometimes calls for special deposits from the commercial banks in order to
A. reduce banking lending
B. increase bank lending
C. will draw defaced currencies
D. issue new notes and coins
20.A principal member of the stock exchange who buys and sell securities on his own is
A. jobber
B. promoter
C. broker
D. speculator
21.Consumer protection places an obligation on producers to ensure that their products
A. are wholesome and safe
B. are cheap
C. do not evade customs examination
D. are branded
22. The target for all marketing activities is the
A. consumer
B. middleman
C. producer
D. distributor
23. Small scale retailers continue to exist in spite of the dominance of large firms because they
A. render personal service
B. employs few salemen
C. can raise large capital from relatives
D. deal in specific goods
24. Building and machinery purchased for use in business are example of
A. current assets
B. fixed assets
C. capital employed
D. paid up capital
Use the following information toanswer question 25 and 26
Olumide brought shares in a company with the following information
Authorized capital N500,000
Issued capital N450,000
Nominal value N1.00
Market price N1.20
25.If the shares are offered to him at N1.15, the share is sold at
A. per value
B. a discount
C. face value
D. a premium
26. Calculate the number of un-issued shares of the company
A. 950,000 shares
B. 500,000 shares
C. 450,000 shares
D. 50,000 shares
27. The throwing of goods over board to prevent from sinking is known as
A. floatsam
B. abandonment
C. jettison
D. particular average
28. In insurance, risk that have no statistics to their calculations are
A. insurable risks
B. certain risks
C. un-insurable risks
D. un-certain risks
29.The practice of selling goods in foreign countries at lower prices than obtainable in the exporting country is known as
A. entreport trade
B. dumping
C. hedging
D. counter trade
30. The entertainment industry is classified under
A. extractive industry
B. manufacturing industry
C. constructive industry
D. commercial industry
31. Buying on impulse is encourage by
A. co-operative shops
B. hawkers
C. supermarkets
D. mail order firms
32. A fixed deposit account is beneficial to its “holders” because
A. cheques can be issued to settle huge debts
B. customers can become shareholders of the banks
C. it attracts higher interest rate
D. it allows customers to overdraw their accounts
33. An amount paid by a bull who wishes to defer the purchases of shares to the next accounting period is
A. brokerage
B. backwardation
C. contango
D. commission
34. Foreign trade is concerned with
A. exchange of goods and services among companies
B. buying and selling of imported goods
C. exchange of goods and services among citizen
D. buying and selling of goods and services among countries
35. The distribution of goods create
A. time utility
B. place utility
C. form utility
D. possession utility
36.The document issued by the Registrar of companies which allows a public company to commence business is called
A. trading certificate
B. prospectus
C. certificate of incorporation
D. memorandum of association
37. A cheque bearing a date showing that it was issued more than six months ago is termed a
A. blank cheque
B. bearer cheque
C. stale cheque
D. order cheque
38. A system of buying products from a machine is known as
A. impulse buying
B. branding
C. automatic vending
D. loss leader
39. Carpentry is an activity classified under
A. Extractive occupation
B. Tertiary occupation
C. commercial occupation
D. constructive occupation
40. A system of buying goods from by an agent where the supplier is determined by the principal is
A. tied shop
B. closed indent
C. open indent
D. ring trading
41. One of the functions of a Central Bank is to
A. perform supervisory role over all the banks in the country
B. provide the means of payment to individuals
C. ensure the smooth transfer of shares
D. accept private deposit
42. The issue of Certificate of Incorporation to a company means that it has
A. started production
B. legally come into being
C. appointed a board of directors
D. merged with another company
43. The part of authorized capital of a company sold to share holders is
A. paid –up capital
B. called-up-capital
C. issued capital
D nominal capital
44. A person who contributes money to a partnership business and is also involved in its general supervision is called
A. active partner
B. a limited partner
C. a dormant partner
D. a nominal partner
45. A business obtains part of its short–term capital from
A. bonds
B. debentures
C. trade credit
D. ordinary shares
46. A postal service that allows a company’s customer to reply to its advertisement at the expense of the company is
A recorded deliver service
B. post restante
C. express delivery
D. business reply service
47. A voluntary association which consists of people who represent a cross section of business interest in an is
A. Trade Association
B. Trade Union
C. Chamber of Commerce
D. Consumers’ Association
48. What a ship overstayed the allowed numbers of days at the port, it is made to
A. interest
B. tariff
C. demurrage
D. commission
49. The place where bankers meet daily to exchange cheques drawn on each other is known as
A. capital market
B. money market
C. clearing house
D. discount house
50. An advertising campaign designed to sell one’s own products at the expense of other brands is
A. competitive
B. persuasive
C. direct
D. informative