WASSCE COMMERCE MAY/JUNE 2008 (SSCE WAEC MAY/JUNE 2008 COMMERCE

1.         Commerce can be defined as the

            A. exchange of goods and services   

B. distribution and exchange of goods and services

            C. distribution of services at home    

D. export of services.

2.         Which of the following is not a function of commerce?

            A. Facilitates mass production of goods  

B.  Assists in raising capital 

            C. Creates goods and services   

D.  Offers employment

3.         Production is defined as

            A. an industrial activity         

B. creation of utilities

            C. the exchange of goods and services

            D. changing of raw materials into finished goods.

4.         Babou Penn, a fisherman, says he has all necessary materials to go to sea today, except      the captain of his boat. Captain here as a factor of production, refers to

            A. entrepreneur          

B. capital 

C. labour .

D. land

5.         Farmers and all other workers concerned with getting raw material from the earth are        engaged in

            A. commercial occupation

B. manufacturing occupation

            C. constructive occupation

D. extractive occupation

6.         The process of making goods attractive and easy to handle is

            A. branding

B. merchandising

C. packaging

D. labelling.

7.         The charges imposed by the government on locally manufactured goods is called

            A. customs duties 

B.  excise duties   

C. tariffs   

D. quota

8.         A grocer invoiced a carton of fish valued at N2.500 for N2.000 only. To correct the error,             which of the following documents would be sent to the buyer?

            A. Credit note for N500.00   

B. Debit note for N500.00

            C. Credit note f or N2.500.00  

D. Debit note for N2.500.00.

9.         The change of goods and services among many countries is

            A. multilateral trade

B. bilateral trade 

C. counter trade 

D. entrepot trade

10.       If a ship overstays is stipulated time at a port, it pays a charge known as   

A. arbitrage   

B. demurrage  

C. dock due   

D. toll

11.       A. transaction where the buyer of a commodity becomes its legal owner after the   payment of the last instalment is

            A. a credit sale           

B. factoring  

C. hire purchase

D. leasing.

12.       An agreement whereby the seller. transfers or agrees to transfer the property in goods for a monetary consideration is a

            A.  contract of sale    

B.  hire purchase   

C. conditional sale   

D.  party selling.

13.       The main purpose of sending delivery notes along with goods is to

            A. enable the goods to be checked on arrival

            B. enable the buyer to pay the correct delivery charges

            C. ensure the safe delivery of the goods

            D. prevent the goods from being stolen in transit

14.       A shop that sells only the products of a particular manufacturer is known as

            A. mobile shop   

B.  unit shop 

C.  tied shop 

D   small shop

15.       Which of the following statements cannot be found in a partnership deed

            A. Names of partners 

B. Nature of business

            C. Payment of tax      

D. Interest on capital

16.       Product differentiation is achieved by

            A. packaging and branding    

B. packing and grading

            C. market segmentation         

D. outdoor advertising

17.       Which of the following services is not offered to retailers by wholesalers?

            A. Keeping them informed of the demands of consumers

            B. Keeping them informed of new products

            C. Offering a wide range of products

D. Granting credit.

18.       The buying and selling of goods and services within a country is called

            A. counter trade    

B.  entrepot trade    

C. foreign trade  

D. home trade

19.       The relationship between partners is stipulated in the

            A. Memorandum of Association       

B. Article of Association

            C. Partnership Deed   

D. Certificate of Incorporation

20.       Which of the following cannot be used to regulate importation?

            A. Import quota  

B.  important licence  

C. Imposition of embargo

            D.  Increase of excise duty

21.       A firm that accepts, sells and delivers goods by post is a

            A. supermarket           

B. multiple store  

C. department store

D. mail order business

22.       Okoni & Co. law chamber is an example of a

            A. sole proprietorship

B. partnership

C. cooperative society

D. public limited company

23.       A refund of the duty collected on goods imported into a country which are later re-           exported is called

            A. excise duty                  

B. ad valorem tax 

C. customs drawback 

D. demurrage.

24.       Which of the following is mostly used by a mail order business to sell goods?

            A. Posters  

B.  Catalogues            

C. Journals   

D.  Magazine

25.       Information requested from a bank concerning the credit worthiness of a new customer to            a business is

            A. private enquiry      

B. status enquiry 

C. general enquiry

D. letter of enquiry..

26.       The document which gives legal authority to a company to operate as a legal entity is

            A. Memorandum of Association       

B. Article of Association

            C. Share Certificate   

D. Certificate of Incorporation.

27.       A business that is independent of its owners is a

            A.   sole proprietorship   

B.  partnership   

C. limited ability company

            D. co-operative society

28.       The amount paid regularly by the assured to the insurer is

            A.  dividend  

B.  premium  

C.. interest   

D.  indemnity 

29.       Net profit is calculated as

            A. sales less purchases

B sales less expenses

C. gross profit less expenses

            D. gross profit less purchases

30.       Which of the following carries specialized goods?

            A. Liner          

B. Tramp        

C. Ferry          

D. Tanker.

31.        In sea transport, vessels that operate on fixed routes and schedules are called

            A. ferries   

B.  yachts    

C. liners  

D.  tramps

32.       Which of the following advertising media combines the advantages of both sight and sound?

            A. Television  

B. Radio   

C. Neon sign 

D.  Billboard

33.       One disadvantage of advertising to the consumer is that it

            A.   brings confusion on the choice of goods  

B. increases demand

            C. persuades the public to buy what they need  

D. decreases the cost of goods

34.       Which of the following is not a sales promotion method?

            A. Demonstration      

B. Exhibition 

C. Free sample

D. Newspaper

35.       Working capital is

            A. current assets less total liabilities  

B. total assets less total liabilities

            C. current liabilities plus current assets  

D. current assets less current Stabilities.

36.       A cheque dated 30 July, 2004 but presented for payment on payment on 28th February,    2005 is

            A. post-dated

B. crossed   

C. opened       

D. stale

Use the following information below to answer questions 37 to 39

This extract is from Eniola ‘Computer Services. Aba’.

                                                                        N

Sales                                                                200,000.00                 

Stock 1/1/2004                                      25,000.00

Stock3l/12/2004                                    35, 000.00

Purchases                                            145, 000.00

Returns inwards                                    20, 000.00    

Sales and distribution expenses            13, 000.00    

Wages and salaries                                 8, 000.00

 

37        The average stock is

            A. N60,000.00   

B.  N35,000.00 

C. N30,000.00  

D. N25, 000.00

38        The gross profit is

            A.  N65,000.00     

B.  N55,000.00  

C. N30,000.00  

D. N20,000

39.       The cost of goods sold is

            A. N135,000.00   

B.  N  115,000.00

C. N60,000.00  

 D.  N35,000.00

40.       Which of the following receives dividend based on patronage?

            A Preference shareholder     

B. Co-operative society member

            C. Cumulative preference shareholder  

D. Debenture holder.

41.       If a customer opens a deposit account with a bank, he will

            A. receive a crossed cheque book

 B. be given a tally

            C. be given a loan      

D. receive interest

42.       A chamber of commerce normally consist of

            A. officials of the trade unions of commercial workers 

            B.  all the people  engaged in one aspect of trading and manufacturing

            C. all the workers in one branch of commerce           

                D. the people who represent a cross-section of business interests in a town

43.       A group of musicians can come together to form a

            A. chamber of commerce       

B. public corporation

            C. trade association    

D. trade union

44.       Which of the following is not an advantage of marketing?

            A. Creation of demand   B. Ensuring effective distribution of goods

            C. implementing government regulations  D. Application of marketing techniques

45.       One disadvantage of indigenization is that it

            A. discourages. foreign control of an economy  B. encourages local retention of profits

            C. encourages the participation of indigenses in economy

            D. discourages foreign investment.

46.       The takeover by government of Sanking Sillah and Sons Ltd is referred to as

            A. privatization           B. indigenization  C. commercialization  D. nationalization

47.       Which of the following economic unions is made up of countries in West Africa only?

            A. ACP    B.  ECOWAS      C. NATO    D.  ADB

48.       People who sell shares in anticipation of a fall in their value are called

            A. bears .         B. bulls    C. brokers    D. jobbers

49.       Which of the following is not a favourable condition under which personal selling can be practised?

            A. When advertising entails relatively high costs  

B. When the market. is concentrated

            C. When the market is dispersed   

D. When personal touch is needed.

50.       A shareholder who holds 100,000 shares of 50 butts each is given a dividend of 10 percent less 2 per cent tax.

            What is his net return?

            A. D10,000.00           

B. 9,800.00  

C. D5,000.00

D. D4,900.00