WAEC Commerce 1990 Past Questions

Question 1

Paper money originated in form of receipt given by?

A.money lenders
B.goldsmiths
C.bankers
D.traders
E.thrift societies

Objective

Question 1

Akani and Sule are sole proprietors. Akani proposed that their businesses be merged to form a partnership.

(a) Explain to Sule how such a partnership would be to their mutual benefit

(b) State five reasons why Sule might be reluctant to accept the proposal.

Theory

Question 2

The major divisions of Commerce are?

A.import, export and transport
B.trade, communication and warehousing
C.trade and auxiliaries to trade
D.exchange, consumption and production
E.import, trade and production

Objective

Question 2

(a) Explain the following terms:
(i) bearer cheque
(ii) open cheque
(iii) order cheque
(iv) crossed cheque.

(b) Explain any six factors which a bank manager would take into consideration in evaluating an application for a loan.

Theory

Question 3

Which of the following statements is not true?

A.Commercial services are the life's blood of a country's economic system
B.There cannot occur commercial services unitl goods have been produced
C.Without commercial services must goods and services will not produced
D.There is no stage of production that does not employ commercial services
E.Commercial services add to the value of a product

Objective

Question 3

State the functions of: |
(a) NIPOST
(b) NITEL

Theory

Question 4

The three main division of production include industrial?

A.commercial banking services
B.commercial and services
C.transportation and services
D.manufacturing and services
E.banking and services

Objective

Question 4

(a) Distinguish between Nationalization and Indigenisation

(b) State any five advantages of nationalization and two objectives of indigenisation.

Theory

Question 5

Which of the following does not belong to the industry?

A.Farming
B.Insuring
C.Mining
D.Drilling
E.Fishing

Objective

Question 5

(a) What is marketing?

(b) Explain any six reasons why a manufacturer may sell directly to consumers.

Theory

Question 6

Which of the following is one of the functions of commerce?

A.Manufacturing
B.Growing of tomatoes
C.Storage of goods
D.Construction of roads
E.Car assemblying

Objective

Question 6

(a) What are the functions of the Nigeria Export Promotion Council (NEPC)?

(b) What are the steps an exporter would take to export goods from the receipt of an indent to the shipment of the goods?

Theory

Question 7

Opening stock.................N1000
Closing stock.................N9000
Purchases.....................N14,000
The average stock is?

A.N2000
B.N3000
C.N5000
D.N6000
E.N7000

Objective

Question 7

(a) What is delegation of authority?

(b) State four advantages of delegation of authority.

Theory

Question 8

Opening stock.................N1000
Closing stock.................N9000
Purchases.....................N14,000
The cost of goods sold is?

A.N6000
B.N10000
C.N42000
D.N16000
E.20000

Objective

Question 8

(a) Explain each of the following:
(i) Chamber of Commerce
(ii) Trade Association.

(b) Give any four functions each of a Chamber of Commerce and a Trade Association.

Theory

Question 9

The oldest and commonest form of business in Nigeria is?

A.partnership
B.the co-operative society
C.sole proprietorship
D.joint stock veture
E.public corporation

Objective

Question 9

(a) What is marketing concept?

(b) Explain the four elements of the marketing mix.

Theory

Question 10

If a retailer Mr. Aigbojie buys goods manufactured by Adefila Limited from wholesaler Mrs. Jumai, who will prepare the delivery note?

A.Mr. Aigbojie
B.Adefila Limited
C.Mr. Jumai
D.Mr. Aigbojie and Adefila Limited
E.Adefila Limited and Mrs. Jumai

Objective

Question 10

(a) Give the meaning of each of the following:
(i) balance of trade
(ii) balance of payments.

(b)Describe four ways by

Theory

Question 11

Which of the following is not a factor of product?

A.Capital?
B.Land
C.Labour
D.Organization
E.Staffing

Objective

Question 12

In which class of occupation would you place a taxi driver?

A.Extractive
B.Indirect services
C.Personal services
D.Primary production
E.Commercial services

Objective

Question 13

The purpose of of issuing a credit note is to?

A.correct errors of overcharging
B.correct errors of undercharging
C.write off bad debts
D.encourage immediate payment
E.encourage bulk buying

Objective

Question 14

The exchange of goods for other goods in home trade is known as?

A.entrepot trade
B.home trade
C.barter trade
D.foreign trade
E.counter trade

Objective

Question 15

Which of the following advertising media combines the advantages of sound and motion?

A.Radio
B.Neon signs
C.Press
D.Hoarding
E.Television

Objective

Question 16

Which of the following is a form of sales promotion?

A.Promotion through radio
B.Advertising by television
C.Distributing printed sales literature
D.Offering free samples to customers
E.Advertising by posters

Objective

Question 17

Efforts geared towards establishing and maintaining good image for a company is termed?

A.human relations
B.professional relations
C.public relations
D.trade relations
E.personnel relations

Objective

Question 18

Which of the following is sent as a reply to an inquiry?

A.Tender
B.Estimate
C.Statement
D.Advice note
E.Quotation

Objective

Question 19

Which of the following statements best describes net profit? The excess of

A.total revenue over total expenditure
B.total capital income over expenditure
C.sales over purchases
D.total capital formation over capital consumption
E.total expenditure over total revenue

Objective

Question 20

A business is in existence primarily to?

A.make profit
B.provide goods amd services
C.provide employment
D.complete with others in business
E.sell goods at reasonable prices

Objective

Question 21

A number of shops under one roof is the feature of a?

A.supermarkets
B.chain stores
C.department store
D.mail order business
E.shopping centre

Objective

Question 22

An agreement between two parties which will give rise to rights and obligation is known as?

A.a warrant
B.a contract
C.a consideration
D.an offer
E.an acceptance

Objective

Question 23

Auctions and Tenders become binding when they are?

A.accepted
B.offered
C.received
D.advertised
E.communicated

Objective

Question 24

The organizing efforts of consumers to protect themselves against the unfair practices of business is called?

A.strike
B.consumerism
C.amalgamation
D.co-operation
E.propaganda

Objective

Question 25

Which of the following is the most suitable means of transporting bulky goods from Lagos to Kaduna? By

A.Train
B.Aeroplane
C.Ship
D.Lorry
E.Caravan

Objective

Question 26

Which of the following is the quickest and accurate means of communication?

A.Telegram
B.Express mail
C.Courier services
D.Telex
E.Railex

Objective

Question 27

Which of the following is the safest means of sending a postal order from Lagos to a friend in Jos?

A.Special delivery
B.Recorded delivery
C.Registered letters
D.First class mail
E.Express letter

Objective

Question 28

One of the objectives of the indigenisation programme of the Federal Government of Nigeria is to?

A.encourage the use of local raw materials
B.expel all foreigners from Nigeria
C.make Nigeria businessmen very rich
D.maximize local retention of profits
E.promote foreign trade

Objective

Question 29

The law which stipulate that labels should give an accurate account of a product is the?

A.price control act
B.consumer credit act
C.trade description act
D.hire purchase act
E.product standard act

Objective

Question 30

Which of the following is not an essential of a contract?

A.Offer and acceptance
B.Intention to create legal relations
C.All contracts written out
D.Legality of object
E.Consideration

Objective

Question 31

One advantage of personal selling is?

A.low cost
B.immediate feedback
C.the appeal to many people at a time
D.self service
E.speedy market coverage

Objective

Question 32

Charges paid by a for staying at at a port beyond agreed sailing time is called?

A.profit
B.interest
C.holding
D.carriage cost
E.demurrage

Objective

Question 33

Entrepot Trade refers to?

A.importing for domestic consumption
B.importing for industrial use
C.importing for government concerns
D.exporting for factory use
E.import for re-port

Objective

Question 34

Which of following could account for a favourable balance of payment?

A.High capital repayments
B.high debt service repayment
C.higher imports than exports
D.higher expert than imports
E.higher public spending

Objective

Question 35

Which of the following is not part of the facilities provided by the Nigerian Ports Authority?

A.Dredging
B.Warehousing
C.Collection of customs duties
D.Loading and off-loading of cargoes
E.Off-loading of cargoes

Objective

Question 36

The main purpose of branding is to?

A.increase the quantity of goods demanded
B.differentiate goods from other similar goods made by other producers
C.increase the selling price of goods
D.enhance turnover of goods
E.introduce the product to the customers

Objective

Question 37

An individual who makes the final use of goods and services provided by a firm is the?

A.manufacturer
B.wholesaler
C.consumer
D.retailer
E.trader

Objective

Question 38

The organization of Petroleum Exporting Countries(OPEC) is an example of a?

A.cartel
B.trust
C.holding company
D.consortium
E.chamber of commerce

Objective

Question 39

When a business is insolvent it may result in?

A.incorporation
B.recuperation
C.liquidation
D.restoration
E.nationalization

Objective

Question 40

In insurance the term Uberrimae fidei stands for?

A.utmost good faith
B.suborgation
C.insurable interest
D.indemnity against loss
E.proximate cause

Objective