WASSCE COMMERCE MAY/JUNE 2006 (SSCE WAEC MAY/JUNE 2006 COMMERCE)
1. A transporter who offers to carry goods for anyone at a fee is called
A. a national carrier
B. a common carrier
C. a private carrier
D. an independent carrier
2. A dormant partner is one who
A. does not work hard
B. lent his name to the business
C. has limited liability
D. does not partake in running the business
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3. The right that a debenture holder has on the earnings of a company is
A. lien
B. dividend
C. interest
D. rent
4. Which of the following does not determine the size of a business unit
A. the quality of its products
B. the nature of the business
C. the size of the market
D. the size of capital
5. The printing of catalogs is one of the costs associated with the operation of
A. tied shops
B. mobile shops
C. mail order shops
D. department stores
6. Labour and entrepreneur are examples of
A. factors of production
B. division of labour
C. direct services
D. primary production
7. House builders belong to
A. manufacturing industry
B. constructive industry
C. commercial occupation
D. tertiary occupation
8. Which of the following groups of activities are commercial services
A. Manufacturing, weaving and storing
B. Vending, purchasing and banking
C. Advertising, farming and harvesting
D. Fishing, constructing and transporting
9. The price quotation where the buyer uses his own means to collect goods from the producer's warehouse is
A. F.O.B
B. ex-works
C. F.A.S
D. F.O.R
10. Which of the following is used only in international trade?
A. Letter of inquiry
B. Certificate of origin
C. Pro-forma invoice
D. Consignment note
11. The following information relates to Mallam Amidu Kachella for the year ended 31/12/2005.
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Opening stock 4,000
Purchases 16,000
Sales 30,000
Debtors 6,500
Creditors 4,200
Cash in hand 800
Closing stock 5,600
Bank overdraft 3,000
The average stock is
A. #1,600
B. #4,800
C. #5,600
D. #9,600
12. When the public wants to buy more of a company's share than has been offered for sale, the share is said to be
A. rights issue
B. over subscribed
C. qouted at a premium
D. over-valued
13. Which of the following goods has the lowest rate of turnover?
A. Staple foods
B. office stationery
C. Refrigerator
D. School exercise books
14. Which of the following is not a duty of a credit union?
A. Helping members to save
B. Granting loans
C. Advising on the use of funds
D. Confirming members' indebtedness
15. An association formed to protect the interests of buyers of various commodities is known as
A. Chamber of commerce
B. Employers association
C. Consumers Association
D. Manufacturers Association
16. An outright prohibition on the importation of goods to a country is referred to as
A. quota
B. tariff
C. embargo
D. devaluation
17. Which of the following assesses duties payable on imports and exports?
A. Ports Authority
B. Central Bank
C. Customs and Excise Authority
D. Export Promotion Council
18. Which of the following trends in retailing provides the convenience of shopping without cash
A. Automatic vending
B. Self-service
C. Credit card
D. Window display
19. The place where dutiable goods are kept until the duties on them are paid is
A. customs warehouse
B. public warehouse
C. bonded warehouse
D. the wharf
20. The provision of dredging and dry dock facilities at any sea port is the responsibility of
A. Ports and Harbours Authority
B. Customs and Excise Authority
C. National Health Authority
D. National Water and Electricity Authority
21. The time allowed for unloading and loading a ship is referred to as
A. demurrage
B. lay days
C. charter party
D. charter by demise
22. Which of the following institutions does not belong to the capital market
A. Commercial banks
B. Development banks
C. Mortgage banks
D. Insurance companies
23. The beneficiary of a cheque is called
A. acceptor
B. drawee
C. drawer
D. payee
24. The speculator who applies for a new issue of shares without the intention of keeping them is
A. bull
B. stag
C. bear
D. jobber
25.Which of the following is not the duty of an agent to the principal?
A. Acting in good faith
B. Rendering accurate account
C. Disclosing all profits made
D. Making secret profit
26. The amount the assured receives if he decides to discontinue the life policy is known as
A. refund value
B. net value
C. surrender value
D. sum assured
27. A specialized market where stocks and shares are bought and sold is
A. money market
B. commodity exchange market
C. perfect market
D. stock exchange market
28. The principle where many insurance companies join to compensate one policy holder is called?
A. contribution
B. subrogation
C. compensation
D. indemnity
29. Demurrage is paid by a vessel for
A. overloading
B. travelling along unplanned route
C. delaying at the port
D. not using the services at the wharf
30. In a limited partnership, one of the members must be
A. a general partner
B. a nominal partner
C. an active partner
D. a dormant partner
31. It is safer and quicker to transport petrol and gas by
A. rail
B. road
C. pipeline
D. air
32. The process of taking over the management and control of a privately owned business by government is
A. indigenization
B. nationalization
C. participation
D. privatization
33. Who among the following is a middlemen?
A. Manufacturer
B. Agent
C. Insurer
D. Consumer
34. The monopoly right granted to an inventor is a
A. trademark
B. brand name
C. patent
D. copyright
35. The process of putting goods in attractive packets to arouse the interest of customers is
A. collation
B. wrapping
C. branding
D. packaging
36. Which of the following is not reason for nationalization
A. Encouraging foreign investors
B. Reducing the remittance of profits abroad
C. Training local entrepreneurs
D. Controlling the country's key industries
37. Any activity aimed at finding out the wants of consumers and supplying them at a profit is referred to as?
A. promotion
B. marketing
C. segmentation
D. penetration
38. The reduction in the value of a country's currency in relation to other country's currencies is
A. devaluation
B. inflation
C. deregulation
D. fluctuation
39. Which of the following is the main purpose of a third party insurance? To
A. indemnify an injured outsider
B. indemnify the insured
C. protect the vehicle against theft
D. compensate the driver for injuries sustained
40.
The term "utmost good faith" in insurance requires that the insured must
A. make profit from any loss suffered
B. receive his compensation fully in the event of loss
C. disclose all relevant facts on what is being insured
D. pay his premium regularly
41. Commercial banks usually settle their interbank indebtedness through the
A. money market
B. clearing house
C. discount house
D. stock exchange
42. Which of the following retail outlets is described as selling without shops
A. Multiple stores
B. Supermarket
C. Mail order business
D. Department stores
43. Which of the following arranges for the conveyance of goods abroad
A. Ports Authority
B. Customs and Excise Authority
C. Airports Authority
D. Export Promotion Council
44. The difference between the cost of goods sold and the sales value is known as
A. net profit
B. net loss
C. gross profit or loss
D. surplus
45. Which of the following is not a feature of a sole trader
A. quick decision making
B. Guaranteed profits
C. Unlimited liability
D. Bearing losses alone
46. A practice where producers of the same product come together to advertise is known as
A. mass advertising
B. institutional advertising
C. direct advertising
D. persuasive advertising