WAEC Commerce 1994 Past Questions

Question 1

Capital owned is the same as?

A.authorised capital
B.issued capital
C.net worth of a business
D.fixed assets of a business
E.public limited company

Objective

Question 1

(a) What is Credit?

(b) Explain three ways by which banks grant credit to customers.

(c) Give two advantages and three disadvantages of credit sales.

Theory

Question 2

A business that has no upper limit to the number of owners is?

A.partnership
B.private company
C.public corporation
D.finance company
E.public limited company

Objective

Question 2

Explain any five ways in which nationalised industries differ from public limited companies.

Theory

Question 3

An agreement between two parties which can be enforced is called?

A.an agency
B.a contract
C.a consideration
D.an offer
E.a warranty

Objective

Question 3

(a) Who is an agent?

(b) Give six duties of an agent.

(c) State three rights of an agent.

Theory

Question 4

Which of the following is not used by the Central Bank to restrict lending by commercial banks?

A.Management of national debt
B.Reserve Requirement
C.Open Market Operations
D.Special Deposit
E.Cash ratio

Objective

Question 4

(a) What is production?

(b) Explain the different activities involved in industrial, commercial and service occupations.

Theory

Question 5

Which of the following relies on the government for its initial capital?

A.Co-operative Society
B.Private Limited Company
C.Public Corporation
D.Public Limited Company
E.Credit and Thrift Society

Objective

Question 5

(a) What is transportation by pipeline?

(b) Explain any four advantages and four disadvantages of transportation by pipeline.

Theory

Question 6

A cheque does not contain?

A.cheque number
B.cashier's signature
C.payee's name
D.drawer's name
E.date of issue

Objective

Question 6

(a) Distinguish between commercial banks and merchant banks.

(b) Explain each of the following:
(i) Order cheque
(ii) Bearer cheque
(iii) Certified cheque
(iv) Non-Negotiable cheque.

Theory

Question 7

The most acceptance and convenient means of payment in foreign trade is?

A.letter of credit
B.bank-draft
C.telegraphic money order
D.promissory note
E.bill of exchange

Objective

Question 7

Explain five ways by which NITEL has contributed to the success of business in Nigeria.

Theory

Question 8

An association of firms, producing similar commodities, formed in order to keep up prices by restricting output is called?

A.a chamber of commerce
B.a customs union
C.an amalgamation
D.a cartel
E.a combination

Objective

Question 8

(a) What is personal selling?

(b) Explain four reasons why firms engage in personal selling.

Theory

Question 9

An establishment that specializes in taking care of risks is called?

A.a hire-purchase company
B.an accepting house
C.an insurance company
D.a finance company
E.a confirming house

Objective

Question 9

(a) Describe four obligations of the employer to the employee.

(b) State four duties of the employee to the employer.

Theory

Question 10

Which of the following is an example of a commercial occupation?

A.Wrestling
B.Welding
C.Shipping
D.Brick laying
E.Tailoring

Objective

Question 10

(a) What is planning?

(b) Explain five advantages of delegation of authority.

Theory

Question 11

Which of the following carries the bulk of goods involved in foreign trade?

A.Cargo planes
B.Cargo liners
C.Tramp vessels
D.Steam ship
E.Tankers

Objective

Question 12

A stock exchange is a market for?

A.old stocks of goods'
B.capital goods only
C.raising new shares
D.existing shares of quoted companies
E.shares of unquoted companies

Objective

Question 13

Which of the following gives a temporary protection to the insured while the policy is being drawn up?

A.Proposal form
B.Cover note
C.Endorsement
D.Ex qratia payment
E.Certificate

Objective

Question 14

Which of the following is not a function of management?

A.Staffing
B.Planning
C.Organizing
D.Directing
E.Distributing

Objective

Question 15

Which of the following is responsible for the welfare of staff in an organisation?

A.Accounts Department
B.Accounts Department
C.Personnel Department
D.Sales Department
E.Public Relations

Objective

Question 16

Which of the following is not a marketing function?

A.Packaging
B.Branding
C.Advertising
D.Accounting
E.Pricing

Objective

Question 17

. Which ofthe following is notan aim of advertising? To

A.drive away smaller firms
B.satisfy consumers
C.help firms compete with others
D.make one’s product known
E.increase sales

Objective

Question 18

ln which of the following environments does a firm that uses out-dated equipment operate?

A.Economic
B.Technological
C.Social
D.Political
E.Legal

Objective

Question 19

Which of the following is sent when credit is not allowed?

A.Debit note
B.Proforma invoice
C.Credit note
D.Statement
E.Advice note

Objective

Question 20

Which of the following does not determine the form ofa business unit?

A.Available capital
B.Risk bearing
C.Nearness to market
D.Ownership
E.Nature of business

Objective

Question 21

Agents who link buyers with sellers receive?

A.factorage
B.brokerage
C.bonus
D.interest
E.premium

Objective

Question 22

Which of the following is not a feature of supermarkets?

A.Standard shop fronts
B.Self service
C.Use of trolleys
D.Small number of sales assistants
E.Stocking mainly food items

Objective

Question 23

Which of the following is an objective of indigenisation? To

A.increase foreign participation in business
B.attract foreign Capital
C.help Nigerian entrepreneurs become monopolists
D.help citizens participate fully in the economy
E.distribute income

Objective

Question 24

In which of the following are the objectives of a company stated?

A.Annual Report
B.Articles of Association
C.Certificate of Incorporation
D.Certificate of Trading
E.Memorandum of Association

Objective

Question 25

The coming together of firms at different stages of the production process is known as?

A.horizontal integration
B.vertical integration
C.consortium
D.cartel
E.holding company

Objective

Question 26

Who among the following is not a commercial occ?upaation

A.A stoke broker
B.An engineer
C.A banker
D.A common carrier
E.An advertising agent

Objective

Question 27

The storing of goods under proper conditions until they are required is a function of?

A.stock taking
B.warehousing
C.stock control
D.merchandising
E.blending

Objective

Question 28

30 Rate of turnover is the?

A.number of times opening stock is sold during a period
B.rate paid by retailers for their stocks
C.rate paid to agents forturning over their stock ata given period
D.. number of times the stock is turned over
E.number of times average stock is sold during a period

Objective

Question 29

A postal order, either crossed or open is only valid for a period of?

A.12 months
B.10 months
C.8 months
D.6 months
E.5 months

Objective

Question 30

The process of taking over private business by government is known as?

A.naturalisation
B.nationalisation
C.privatisation
D.commercialisation
E.indigenisation

Objective

Question 31

Which of the following is not the objective of Consumer Association? To

A.ensure that fair prices are charged
B.educate consumers on their rights
C.prevent fake goods from entering the market
D.. prevail on the govemment to enact consumer protection laws
E.. ensure correct specihcations as to quality of goods

Objective

Question 32

Zaico Ltd invoiced goods valued at N80,000 to Victory Ltd for N8,000. Which of the following will Zaico Ltd send to Victory Ltd to correct the error?

A.Consignment note
B.Credit note
C.Advice note
D.Debit note
E.Statement

Objective

Question 33

Which of the following is an example of extractive industry?

A.Sewing dresses
B.Constructing bridges
C.Baking bread
D.Assembling iron rods
E.Digging for precious stones

Objective

Question 34

The raising of new capital by allowing existing shareholders the privilege to buy shares at preferential rate is called?

A.bonus issue
B.private placing
C.offer for sale
D.rights issue
E.issue by prospectus

Objective

Question 35

The raising of new capital by allowing existing shareholders the privilege to buy shares at preferential rate is called?

A.bonus issue
B.private placing
C.offer for sale
D.rights issue
E.issue by prospectus

Objective

Question 36

The agreed amount payable to a policy holder when the event insured against occurs is?

A.surrender value
B.sum assured
C.indemnity
D.insurable interest
E.endowment

Objective

Question 37

The rate at which one country”s products are exchanged for the products of another is?

A.balance of trade
B.balance on current account
C.terms of trade
D.balance of payments
E.foreign exchange

Objective

Question 38

The rate at which one country”s products are exchanged for the products of another is?

A.balance of trade
B.balance on current account
C.terms of trade
D.balance of payments
E.foreign exchange

Objective

Question 39

Which of the following is not performed by the shipping and forwarding agents?

A.Reservation ofshipping space
B.Collection of payment from the importer
C.Collection of goods from the factory
D.Preparation of the bill of lading
E.Arrangementfor marine insurance

Objective

Question 40

A group of trims that produce similar goods or sen/ices is called?

A.an industry
B.a trade association
C.a cartel
D.a holding company
E.an amalgam

Objective