WAEC Commerce 1996 Past Questions

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

Which of the following is not the duty of an entrepreneur?

A.provision of inital capital
B.Bearing of risks
C.Organization of other factors of production
D.Decision on what to produce
E.Decision on the amount of tax to pay

(a) Give two examples of small-scale retail outlets and three examples of large- scale retail outlets

(b) Explain five reasons for the survival of small-scale retailers.

The difference between the total amount of money received by a country and the total amount paid to other countries within a given period is the

A.trade gap
B.balance of trade
C.balance of payments
D.current account balance
E.terms of trade

(a) State five reasons why road transport would be preferred to rail transport

(b) Give five functions of the Nigerian Airport Authority.

Which of the following is used to transmit typed messages over long distances?

A.Dictaphone
B.Teleprinter
C.Computer
D.Telephone
E.Radio

Write short notes on each of the following

(a) Marine insurance,

(b) Accident insurance

(c) Group insurance

(d) Export Credit Guarantee insurance

(e) Fire insurance

When a company buys up firms supplying it with raw materials, this is an example of

A.horizontal integration
B.a holding company
C.backward integration
D.consortium
E.lateral merger

(a) Give any five features which are common to both cooperative societies and private limited companies

(b) Explain any five differences between cooperative societies and private limited companies.

Industrial, commercial and direct services are branches of

A.manufacturing
B.occupation
C.exchange
D.distribution
E.specialization

State five aids to trade and explain how each facilitates trade.

The primary purpose of credit cards is to

A.obtain goods without paying cash on the spot
B.obtain a loan from the bank
C.obtain a loan from a trader
D.persuade a business man to cash a cheque
E.provide a means of identifyng the holder

Explain the social responsibilities of a business to the following:
(a) the community
(b) the employee
(c) the shareholders
(d) the government
(e) the consumers.

Containers are suitable for transporting goods by

A.sea only
B.road only
C.sea and rail only
D.road and sea only
E.road, sea and rail

(a) Give three similarities and three differences between hire purchase and deferred payment.

(b) Explain four reasons why a trader would prefer the use of cheque to cash for large payments.

Which of the following is not a credit instrument used in business transactions?

A.Luncheon voucher
B.Bill of exchange
C.Promissory note
D.Bank note
E.Fuel voucher

(a) What is public relations?

(b) State and explain five media of public relations.

An insurance company shares its accepted risk with others in the form of

A.reinsurance
B.subrogation
C.mutual insurance
D.fidelity guarantee insurance
E.contribution

(a) Give four uses of an Organization chart

(b) Explain three reasons why managers may refuse to delegate

(c) State three advantages of delegation of authority.

Which of the following stresses the use of only specialists to head departments?

A.Committee organisation structure
B.Line organisation structure
C.line and staff organisation structure
D.Functional organisation structure
E.Centralization

(a) Give two uses of each of the following documents in business transaction.
(I) Proforma invoice
(ii) Advice note
(iii) Credit note
(iv) Statement of account
(v) Receipt.

The process of involving local businessmen in the ownership and control of businesses that were formerly owned by foreigners is called

A.nationalization
B.industrialization
C.indeginization
D.commercialization
E.privatization

Which of the following functions is not performed by retailers?

A.Breaking bulk
B.Ensuring regular stock for consumers
C.Branding and packaging
D.Insuring goods for customers
E.Storing variety of goods

Which of these management functions involves checking performance against set standards?

A.Controlling
B.Coordinating
C.Planning
D.Directing
E.Organizing

The form given by the Customs Authority to enable an importer examine goods before the arrival of the bill of lading is known as

A.entry for warehousing
B.certificate of origin
C.bill of sight
D.bill of exchange
E.dock warrant

An organization that builds access roads for the benefit of the community in which it is located has fulfilled its

A.legal responsibility
B.political responsibility
C.social responsibility
D.technological responsibility
E.economic responsibility

Which of the following is applicable to foreign trade only?

A.Pro forma invoice
B.insurance policy
C.Order
D.Bill of exchange
E.Consular invoice

The department that deals with internal grievances and maintenance of discipline in an organization is the

A.accounts
B.maintenance
C.personnel
D.public relations
E.productions

Another name for consignment note is

A.qoutation
B.waybill
C.debit note
D.receipt
E.credit note

Specialization is possible as a result of

A.good roads
B.education
C.demand for goods
D.growth in population
E.exchange

Which of the following may serve as delivery note?

A.Debit note
B.Credit note
C.Invoice
D.Advice note
E.Statement of account

Mr Chidi insured his house against fire. The house was destroyed by flood. Which of the following principles prevented him from being compensated?

A.Uberrimae fidei
B.Subrogation
C.Indemnity
D.Proximate cause
E.Insurable interest

The price charged for leasing a ship is known as

A.way bill
B.haulage
C.clean bill
D.freight
E.demurrage

Goods in bonded warehouses are under the strict supervision of the

A.Customs Authority
B.Ports Authority
C.Importer
D.Clearing agent
E.Exporter

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

A.The Nigerian Capital Market Association
B.The Securities and Exchange Commmission
C.The Nigerian Deposit Insurance Commission
D.The Nigerian Reinsurance Corporation
E.The Central Bank of Nigeria

Which of the following is drawn up as a guide to the running of a Partnership?

A.Deed of Agreement
B.Partnership Act
C.Memorandum of Association
D.Prospectus
E.Articles of Association

The law governing the operations of companies and partnership in Nigeria is the

A.Nigerian Companies Decree
B.Nigerian Partnership Act
C.Nigerian Enterprises Promotion Decree
D.Companies And Allied Matters Decree
E.Sale of Goods Act

Which of the following is a non-indemnity insurance?

A.Personal Accident Insurance
B.Burglary Insurance
C.Fire Insurance
D.Consequential loss Insurance
E.Third Party Insurance

The document issued to a newly formed public company to commence business is called the

A.certificate of incorporation
B.articles of association
C.memorandum of association
D.trading certificate
E.insurance certificate

Small scale retail attracts a lot of new enterpreneurs in West Africa because

A.many people have had good training in retail trade
B.it is easy to succeed with the business
C.banks are always ready to lend retailers
D.only a small amouynt of capital is needed to start the business
E.government exempts retailers from paying tax

In marine insurance, the deliberate throwing of some goods into the sea to prevent the ship from sinking is an example of

A.a constructive loss
B.a partial loss
C.a general average loss
D.a total loss
E.an actual total loss

Tax levied on goods at each stage of their movement from production to the final consumer is known as

A.customs drawback
B.ad valorem duty
C.specific tax
D.value added tax
E.tariff

An association of businessmen engaged in both commerce and industry is called

A.trade association
B.Trade union
C.chamber of commerce
D.trust
E.cartel

When the government decides to run a statutory corporation as a profit-oriented enterprise, this is known as

A.nationalization
B.commercialization
C.take-over bid
D.privatization
E.indegenization

The primary aim of commerce is to

A.produce goods and services
B.warehouse goods
C.advertise goods and services
D.finance goods and services
E.exchange goods and services

Which of the following is has a fixed rate of dividend?

A.Debenture
B.Ordinary share
C.Founder's share
D.Preference share
E.Equity

Which of the following is not a barrier to the smooth functioning of ECOWAS?

A.Different currencies
B.Different languages
C.Adequate population
D.Political crisis
E.Fear of domination

The capital market is a market

A.for long term loans
B.for new shares of public companies
C.where money is deposited
D.where foreign currencies are bought and sold
E.for short term loans

Which of the following is primarily established to promote the growth of industry in Nigeria?

A.NITEL
B.UBA
C.NIPOST
D.NIDB
E.UAC

Another name for sea taxi is

A.tramp
B.liner
C.special frieghter
D.voyage charter
E.flying boat

Contracts for the carriage of goods by sea are generally called

A.charter by demise
B.charter parties
C.voyage charters
D.time charter
E.marine policy