WAEC Commerce 1995 Past Questions

Question 1

When a company sells shares to existing shareholders at preferential rate, that is called?

A.Rights issue
B.Bonus issue
C.Private placing
D.Sale by auction
E.lssue by prospectus

Objective

Question 1

(a) State any five channels of distribution for consumer goods.

(b) Explain five factors to be considered before choosing a particular channel.

Theory

Question 2

Which of the following must be include in the Articles of Association?

A.Voting rights of the shareholders
B.The objects of the business
C.The address of the registered office
D.Statement that liability is limited
E.List of types of shares

Objective

Question 2

(a) What is Capital?

(b) Explain five types of Capital.

Theory

Question 3

Which of the following enables production to take place ahead of demand?

A.Transporting
B.Advertising
C.Importing
D.warehousing
E.Exporting

Objective

Question 3

(a) Mention and explain the four business resources.

(b) Explain four ways by which government regulates business.

Theory

Question 4

Called-up capital is the amount?

A.paid on allotment
B.paid ontirstcall
C.paid on appilication
D.demanded on shares issued
E.. paid-up on all shares

Objective

Question 4

(a) Describe five factors that determine the choice of means of transportation for goods

(b) Explain five factors that have contributed to the growth of Commerce.

Theory

Question 5

Which of the following is true about cumulative preference shares?

A.Any unpaid dividend is carried forward
B.The shareholders can obtain a capital refund
C.They are entitled to further share in profit
D.Any unpaid dividend is forfeited
E.The dividend declared is accumulated in a reserve account

Objective

Question 5

(a) List five documents used in foreign trade.

(b) Explain five conditions under which an agency may be terminated.

Theory

Question 6

A public limited company has the rights and duties of an individual because it?

A.has a board of directors
B.has a trading certificate
C.has corporate status'
D.has a memorandum of association
E.is so stated in articles of association

Objective

Question 6

(a) Explain five roles of advertising.

(b) Give three advantages and two disadvantages of television as a medium of advertising.

Theory

Question 7

The total indebtedness of a business is the same as its

A.liabilities
B.liquid capital
C.solvency
D.capital employed
E.working capital

Objective

Question 7

(a) Explain five services which NIPOST renders to the public.

(b) Give five advantages of courier services.

Theory

Question 8

All activities involved in the distribution and exchange of goods and services are referred to as?

A.Trade
B.Market survey
C.Advertising
D.Commerce
E.Sales promotion

Objective

Question 8

(a) Describe five reasons why a manufacturer may brand his products.

(b) Outline five services rendered by the wholesaler to the manufacturer.

Theory

Question 9

Land as a factor of production comprises?

A.all resources provided by nature
B.the earth surface only
C.land surface and vegetation
D.efforts to exploit the earth
E.the oceans and rivers only

Objective

Question 9

(a) Differentiate between Indigenisation and Nationalisation.

(b) Give five advantages and three disadvantages of Indigenisation.

Theory

Question 10

Goods are usually classified into?

A.saleable and nonisaleable good
B.inferior and superior goods
C.luxurious and essential goods
D.producer and consumer goods
E.home made and foreign made goods

Objective

Question 10

(a) What is a public limited liability company

(b) state and explain any five features distinguishing a public limited company from a partnership

Theory

Question 11

Del-credere commission is an?

A.allowance paid to a supplier
B.extra allowance paid for guaranteeing recovery of debts
C.allowance paid to all commission agents
D.'allowance paid bythe agent
E.allowances to ensure delivery of goods by commission agent

Objective

Question 12

Which of the following is classified as invisible item in_the balance of payments?

A.. Export of goods
B.import of machinery
C.1 Gifts
D.. Sale of assets
E.Salaries of expatriates

Objective

Question 13

Which of the following is quoted when the buyer is responsible for the cost of loading the goods from the seller’s warehouse up to his own warehouse?

A.LOCO
B.F.O. R
C.F.A.S
D.C.I.F
E.C.F

Objective

Question 14

A trade in which many countries exchange goods and services is called?

A.bilateral trade
B.entrepot trade
C.economic union
D.multilateral trade
E.counter trade

Objective

Question 15

Which of the following is used to ascertain the correct value of imports for purposes of assessing customs duty’

A.Certificate of origin
B.Open-indent
C.Bill of Lading
D.Ships manifest
E.Bill of entry

Objective

Question 16

The best method of making payment to an overseas supplier is by/

A.bankdraft
B.bill of exchange
C.travellers cheque
D.letter of credit
E.certified cheque

Objective

Question 17

Are fund usually granted for goods imported and later re-exported is called?

A.commission
B.discount
C.customs drawback
D.dock due
E.demurrage

Objective

Question 18

Which of the following is a declaration by the captain of a ship as to the cargo on board?

A.Bill of ladlng
B.Mates receipt
C.Ships manifest
D.Bill of sight
E.Dock warrant

Objective

Question 19

When the balance of trade is unfavourable which of the following conditions prevails?

A.Exports exceed imports
B.Imports exceed exports
C.Customs duty is high
D.lnvisible exports exceed visible imports
E.The value money falls

Objective

Question 20

When a seller decides to sell his goods at a specific price for a specific period, he is making?

A.a sales promotion
B.a bid
C.an auction sale
D.a firm offer
E.an implied guarantee

Objective

Question 21

A retailer who receives a trade discount of 33‘/3% and a cash discount of 10% on goods worth N360 would pay?

A.N240
B.N226
C.N216
D.204
E.120

Objective

Question 22

Which of the following documents is used when goods are sent on approval?

A.Catalogue
B.Delivery note
C.Receipt
D.Advice note
E.Pro forma invoice

Objective

Question 23

Terms of trade refers to?

A.agreement between two trading countries
B.conditions attached to specific trade transaction
C.the relationship between export and import prices
D., the difference between the value imports and exports
E.all payments made-to other countries and receipts from them

Objective

Question 24

Another name for shares, stocks and debentures traded in the stock exchange is?

A.collateral
B.securities
C.wares
D.partcipating`preference shares
E.cumulative preference shares

Objective

Question 25

Which of the following belongs to the capital market?

A.Commercial bank
B.Savings bank
C.Stock exchange
D.Bureau de change
E.Clearing house

Objective

Question 26

Which of the following is not true of insurance?

A.A large number of pecple face the same risk
B.A Possibility of making profit out of an event
C.only a small number will actually suffer the loss in any one year
D.A large number makes a small contribution to a common pool
E.Possibility of assessing the frequency of occurrence of the event

Objective

Question 27

Which of the following belongs to the capital market?

A.Commercial bank
B.Savings bank
C.Stock exchange
D.Bureau de change
E.Clearing house

Objective

Question 28

Which of the following is not true of insurance?

A.A large number of people face the same risk
B.Possibility of making a profit out of an event
C.only a small number will actually suffer the loss in any one year
D.A large making makes a small contribution to common pool
E.Possibility of assessing the frequency of occurrence of the event

Objective

Question 29

Which of the following policies qualifies the holder to income to income tax relief?

A.Accident insurance
B.Public liability insurance
C.Comprehensive insurance
D.Endowment assurance
E.Fidelity guarantee insurance

Objective

Question 30

Which of the following is not a feature of good banking security? The

A.asset must be easily converted into cash
B.value of the asset must be easily ascertained
C.ownership of the asset must be in doubt
D.value of the asset should be stable
E.value of the asset must less than the amount loaned

Objective

Question 31

Selling a bill in less than the face of the value for immediate cash before the due date is to?

A.retire the bill
B.honour the bill
C.discount the bill
D.protest the bill
E.withdraw the bill

Objective

Question 32

Which of the following is a non- indemnity insurance?

A.Marine
B.Life
C.Fire
D.Bad debts
E.Burglary

Objective

Question 33

Which of the following regulates and controls the activities of the Nigerian Stock Exchange?

A.Central Bank
B.Association of Commercial Banks
C.Securities and Exchange Commission (SEC)
D.Nigerian Association of Chambers of Commerce
E.Brokers and Jobbers

Objective

Question 34

Which of the following regulates and controls the activities of the Nigerian Stock Exchange?

A.Central Bank
B.Association of Commercial Banks
C.Securities and Exchange Commission (SEC)
D.Nigerian Association of Chambers of Commerce
E.Brokers and Jobbers

Objective

Question 35

A cheque drawn by a bank on itself is a?

A.credit transfer
B.direct debt
C.certified cheque
D.bankdraft

Objective

Question 36

A cheque drawn by a bank on itself is a?

A.credit transfer
B.direct debt
C.certified cheque
D.bankdraft

Objective

Question 37

Which of the following is formed primarily to promote savings and loans among members?

A.Consumers co-operative society
B.producer co-operative society
C.Co-operative wholesale soceity
D.Retail Co-operative society
E.Co-operative thrift and credit society

Objective

Question 38

Mr Ojo borrowed N54,000 from a Commercial bank and deposited his life assurance certificate with the bank. The certificate deposited serves as?

A.a loan repayment
B.a current asset
C.an interest charged
D.a collateral society
E.a part of payment

Objective

Question 39

When an insurance policy is cleared void because of a false declaration the principle involved is?

A.indemnity
B.insurable interest
C.proximate cause
D.utmost good and favour ''?

Objective

Question 40

The nominal value of share of a public limited limited company is 50k and the market value is 65k. The company's share is selling?

A.above per value
B.at per value
C.below per value
D.ex dividend
E.cum dividend

Objective