WAEC Commerce 1989 Past Questions

Practice each question, then open it to see the full details.

An insurance broker is involved in?

A.manufacturing occupation
B.distributive occupation
C.commercial occupation
D.extractive occupation
E.constructive occupation

(a) What is Commerce?

(b) State and explain the importance of any five ancillary services to trade.

The process of buying and selling and distribution of goods and services is known as?

A.retail trade
B.commerce
C.marketing concept
D.marketing mix
E.wholesale trade

(a) Messrs Ola and Musa are both merchants. Ola trades on cash basis only while Musa allows credit. Give four reasons each why Ola insists on cash payment and Musa allows credit sales.

(b) Distinguish between cash discount and trade discount.

The practice of employing specialists in relevant occupation is a feature of?

A.subsistence economy
B.mobility of labour
C.mixed economy
D.exchange economy
E.division of labour

(a) Explain the meaning of working capital and state its importance.

(b) Outline any seven factors which might affect the rate of turnover.

Which of the following convert raw materials into finished goods?

A.Extractive industry
B.Manufacturing
C.Commercial occupation
D.Constructive industry
E.Tertiary industry

(a) What is a bonded warehouse?

(b)State four ways in which a bonded warehouse may be useful in international trade.

Which of the following support the view that there was commerce in Nigeria many years ago?

A.The economy was consistent
B.Specialization was minimal
C.Cowries were used as money
D.Horses wee used as means of transportation
E.Communities were interdependent

(a) Give any five advantages of advertising.

(b) What are five distinctive merits of television as a medium of advertising.

Which of the following towns was important to the trans-Saharan traders?

A.Enugu
B.Oyo
C.llorin
D.Kaduna
E.Kano

Distinguish between the following:

(a) Broker and Jobber.

(b) Gross profit and net profit

(c) Fixed capital and liquid capital.

(d) Factors and del credere agents.

(e) F. 0. B. and C. I. F.

Production ends when goods?

A.and services are used by the producer
B.are packed and labelled
C.are sold in the market
D.and services reach the final user
E.are advertised to the consumers

(a) What is consumerism?

(b) Give three reasons why consumers need protection.

(c) State any five measures taken by government or associations to protect consumers in Nigeria.

A counter offer operates as?

A.an acceptance
B.an offer
C.a rejection
D.an agreement
E.a contract

(a) What is meant by the term insurable risk?

(b) Explain any four circumstances when an insured may not be indemnified.

In the contract of sale of goods,"let the buyer beware" is signified by?

A.del credere
B.uberrima fidei
C.caveat emptor
D.res ipsa loquitor
E.caveat vendetta

(a) List five types of business units in Nigeria.

(b) Give five main differences between a retail co-operative society and a public limited liability company.

Branding is a good example of?

A.informative advertising
B.marketing mix
C.persuasive advertising
D.consumerism
E.competitive advertising

Describe any five advantages of the Stock Exchange Market.

The critical factor in organizing a business is?

A.money
B.capital
C.machinery
D.management
E.control

Which o the following is not an attribute of an effective business manager?

A.Empathy
B.Subjectivity
C.Altrumism
D.Objectivity
E.self awareness

Prior to the issue of a certificate on a motor insurance contract, the insured is issued with?

A.a licence of insurance
B.insurance policy certificate
C.a cover note
D.a simple receipt
E.an invoice

The worth of a life insurance policy be maturity date is known as?

A.principal value
B.surrender value
C.accumulated value
D.prepaid value
E.accrued value

Under the law of insurance, exemption causes?

A.enable the insurance to claim on the insurance company
B.protect the insurance company under the contract
C.guard against occurrence of the insured events
D.protect a third party under the contract
E.protect the insured against the insurance company

The insured is the?

A.insurance company
B.insurance company's client
C.insurance broker
D.insurance agent
E.insurance manager

A partnership is formed for banking business is made up of?

A.2 - 10 members
B.2 -20members
C.2 - 30 members
D.2 - 40 members
E.2 - 50 members

Whichof the following is not true of limited partnership?

A.Every member is a limited partner
B.All members are general partners
C.All members are limited liability
D.There is at least one ordinary partner
E.Limited and ordinary members must be equal in number

Which of the following is not required for the dissolution of a partnership?

A.Experiation of partnership deed
B.Termination of the venture
C.One partner notifying the other of his intention to dissolve it
D.mutual consent of the partners
E.Order from the registrar of companies

Organization formed mainly by traders and manufacturers to cater for the interest of their members is called?

A.trade union
B.co-operative societies
C.trade association
D.chamber of commerce
E.manufacturers association

The powers of attorney that transfers to a third party the shareholders right to vote is called?

A.warrant
B.shareholder's benefit
C.proxy
D.bond
E.rights issue

The means by which printed messages sent by cable are recorded is called?

A.telegram
B.poste restante
C.telecommunication
D.telephone
E.telex services

In which of the following would you advise Mr X Y to check and con firm the exact telephone number of a bank located in Ibadan?

A.Post Office Guide
B.Official Gazette
C.Travellers' guide
D.Private Branch Exchange
E.Telephone directory

Which of the following is a function of NIPOST?

A.Issuing money order
B.Issuing dividend warrants
C.Issuing Travllers cheques
D.Minting coins
E.Printing trade journals

Which of the following describes a distinctive symbol title or design that readily identifies the company or its product?

A.Trust
B.Trade mark
C.Trade name
D.Branch name
E.Copyright

One disadvantage of advertising is that it?

A.could be misleadiing through its false claims
B.decrease sales
C.makes new products known
D.teaches the consumer the use of the advertise product
E.creates employment

The activities of a company designed to stimulate consumers by giving them samples, premium, or conducting contests are referred to as?

A.consumer protection
B.marketing mix
C.sales promotion
D.marketing concept
E.advertising

A clean bill of leading is so-called because?

A.the colour is pure, white
B.it is not stained
C.it is a document of authority
D.it has no record of demage goods
E.it could be tranferred to anybody

The receipt issued by a warehouse keeper for goods taken into the store is called?

A.drawback warrant
B.warranty
C.divided warrant
D.dock warrant
E.custom warrant

If a businessman imports stockfish with a view to exporting them to other countries, this form of trade is known as?

A.invisible trade
B.entrepot trade
C.export trade
D.import trade
E.bilateral trade

A trader who wants to buy goods from another country sends?

A.an advice note
B.an invoice
C.a bill of exchange
D.a statement
E.an indent

Which of the following is an invisible export of Nigeria?

A.Shipping services Nigeria renders to Russia
B.Nigeria's crude oil to london
C.banking services rendered to Americans resident in Nigeria
D.Stockfish from Germany to Nigeria
E.Nigeria groundnut to egypt

Most payments in international trade are made by means of?

A.cash
B.bills of lading
C.personal cheques
D.letters of credit
E.travellers cheques

A deficit in balance of trade occurs when?

A.visible exports exceeds invisible imports
B.total payments exceed visible exports
C.visible imports exceeds visible exports
D.invisible exports exceeds invisible imports
E.visible exports exceeds invisible imports

The amount of new capitals with which a new company proposes to be registered is called?

A.called-up capital
B.nominal capital
C.fixed capital
D.issued capital
E.circulating capital

The part of business capital with which capital that does not change its form in the process of production is known as?

A.circulating capital
B.nominal capital
C.liquid capital
D.fixed capital
E.working capital

Which of the following is gilt-edge security?

A.Government bonds and stocks
B.Gold mine stocks
C.Company shares and stocks
D.Life assurrance policy
E.Bank stocks and securities

Pure profits is the elements of the paid?

A.for land
B.for capital
C.a manager
D.to an enterpreneur
E.for labour

The factor of production which is described as wealth set aside for the the production of further wealth is called?

A.emterpreneur
B.land
C.capital
D.goodwill
E.labour

Buying and selling of goods and services within the geographical areas of a country is called?

A.enterpot trade
B.external trade
C.domestic trade
D.regional trade
E.import trade