WAEC Commerce 2003 Past Questions

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

The scope of commerce is limited to?

A.home and foreign trade
B.wholesale and retail trade
C.trade and aids to trade
D.wholesale and entrepot

(a) State the difference between an ordinary invoice and a proforma invoice.

(b) Explain the following terms used in connection with an invoice:
(i) 5% trade discount
(ii) net 3 months
(iii) E.& O.E.
(iv) carriage forward
(v) 21 % cash discount.

A worker who processed garri is engaged in?

A.extracting
B.manufacturing
C.exchange
D.constructing

(a) Give four arguments for and three arguments against advertising.

(b) List six advertising media used by business organizations in West Africa.

Which of the following is not a commercial occupation?

A.Transportation
B.Warehousing
C.Banking
D.Fishing

(a) Assume that you are a retail trader and want to open a current account with a branch of a commercial bank. Write out four steps to be taken in opening the account.

(b) State six services provided by a commercial bank.

Industry is a branch of production because it?

A.is a division of commerce
B.increases utiility of goods
C.involves the use of machines
D.deals with its durable goods

Distinguish between the following pairs of terms used in insurance:

(a) Third party and comprehensive policy

(b) Whole life and endowment policy

(c) Insurance and assurance

(d) Premium and compensation.

When a public company receives the certificate of incorporation, this implies that?

A.it can go ahead and start business
B.it can no longer sue or be sued
C.the company finds it difficult to raise capital
D.the company's assets exist separately from those of its members

Write short notes on each of the following:
(i) Small stores
(ii) Mobile shops
(iii) Tied shops
(iv) Supermarkets
(v) Peddling.

When a number of thrift societies come together and are registered, they become a?

A.holding company
B.credit union
C.trade union
D.consumer association

(a) Explain five roles of transport to businessmen.

(b) State three characteristics of tramp vessels and two characteristics of ocean liners.

Which of the following would not be stated in Memorandum of Association?

A.Name clause
B.Registered office
C.Objective clause
D.Rights of shareholders

The following is a summary of the assets and liabilities of Odika Enterprises for the year ended December 31st 2000.
	N
motor vehicle	60,000
fixtures & fittings	60,000
machinery	65,000
warehouse	18,000
stock	20,000
prepayment	10,000
Accrued expenses	12,000
cash-in-hand	8,000
cash at bank	6,000
bank overdraft	3,500
creditors	5,000
Debtors	6,000
premises	75,000

(a) From the above figures, calculate the following, showing all workings:
(i) capital owned
(ii) fixed assets
(iii) working capital.

(b) List five sources of capital available to a public limited company.

The greatest risk in a business venture is borne by the?

A.trade creditors
B.employees
C.trade debtors
D.entrepreneurs

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

(b) State five advantages of packaging.

A partner without an unlimited liability is known as a?

A.dormant partner
B.nominal partner
C.general partner
D.active partner

(a) What is market?

(b) Explain four ways by which market-ing is important to the economy

(c) State five functions marketing.

A partnership without a deed shares profits/losses?

A.in the ratio of partners' capital
B.equally among the partners
C.proportionate to patronage
D.proportionate to assets introduced

(a) What is indigenization?

(b) Explain four advantages anc four disadvantages of indigenization.

They total amount of money actually received by a company out of the issued capital is?

A.paid - up capital
B.unissued capital
C.reserved capital
D.called-up capital

If the turnover of as business is N16,000 and the cost of goods N12,000, what is the percentage of gross profit on sales?

A.75%
B.40%
C.33%
D.25%

A partner without an unlimited liability is known as a?

A.dormant partner
B.nominal partner
C.general partner
D.active partner

A partner without an unlimited liability is known as a?

A.dormant partner
B.nominal partner
C.general partner
D.active partner

In which of the following do shareholders always vote according to their shareholdings?

A.Partnership
B.Cooperative society
C.Public limited company
D.Public corporation

A public company has an authorized capital of 60,000 shares, A share costs 150k and the company has issued 36,000 shares. The issued capital would be?

A.N90,000
B.N60,000
C.N54,000
D.N36,000

A public company has an authorized capital of 60,000 shares, A share costs 150k and the company has issued 36,000 shares. The issued capital would be?

A.N90,000
B.N60,000
C.N54,000
D.N36,000

The rate of turnover of a company in a given year is 4 times while the average stock is N12,4OO. What is the turnover of the company?

A.N49,600
B.N24,800
C.N6,200
D.N3,100

Which of the following is an advantage of large scale retailing?

A.Decline in personal service
B.Pilfering
C.High overhead cost
D.One-stop shopping

Which of the following is not a function of the retailing?

A.Buying in bulk and warehousing
B.Buying and selling in bits to consumers
C.Advising consumers on the right type of goods
D.Granting credits to customers

Which of the following is not a function of the retailing?

A.Buying in bulk and warehousing
B.Buying and selling in bits to consumers
C.Advising consumers on the right type of goods
D.Granting credits to customers

The refund made by on goods re-exported after being imported is known as?

A.import duty
B.export duty
C.excise drawback
D.customs drawback

Which of the following requires services of middlemen?

A.Technical goods
B.Expensive goods
C.Convenience goods
D.Perishable goods

Entrepot trade means?

A.exchange of goods between two countries
B.exchange of goods among many countries
C.exporting goods to be re - imported
D.importing goods to be re-exported

To sell a bill at less that the face value before its maturity is?

A.discounting
B.retiring
C.accepting
D.noting

To sell a bill at less that the face value before its maturity is?

A.discounting
B.retiring
C.accepting
D.noting

Which of the following tells the customer exactly what has been sold to him, the amount due and any discount granted?

A.Advice note
B.Statement
C.Invoice
D.Credit note

Which of the following tells the customer exactly what has been sold to him, the amount due and any discount granted?

A.Advice note
B.Statement
C.Invoice
D.Credit note

Which of the following documents is required when a bill of lading is not readily available to enable the goods to be landed?

A.Bill of exchange
B.Certificate of origin
C.Consumers invoice
D.Bill of sight

Which of the following documents is required when a bill of lading is not readily available to enable the goods to be landed?

A.Bill of exchange
B.Certificate of origin
C.Consumers invoice
D.Bill of sight

Total assets minus current liabilities is equal to a company's?

A.gross profit
B.net profit
C.capital owned
D.capital employed

A public limited liability company can be enter into contracts because it?

A.has many employees
B.has shareholders
C.is legal entity
D.is allowed to take out debentures

A public limited liability company can be enter into contracts because it?

A.has many employees
B.has shareholders
C.is legal entity
D.is allowed to take out debentures

Taxes imposed on locally made goods are known as?

A.ad valorem
B.import duties
C.export drawback
D.excise duties

Which of the following contains the complete information on goods available for sale?

A.Invoice
B.Delivery note
C.Consignment note
D.Catalogue

Which of the following contains the complete information on goods available for sale?

A.Invoice
B.Delivery note
C.Consignment note
D.Catalogue

Which of the following is used to inform the buyer that goods available for sale?

A.Quotation
B.Proforma
C.Advice note
D.Despatch book

Which of the following is used to inform the buyer that goods available for sale?

A.Quotation
B.Proforma
C.Advice note
D.Despatch book

Quality discount is offered to persuade the buyer to?

A.pay promptly
B.defer payment
C.pay a deposit
D.buy more

The process of dealing with a cheque once it has been paid into the creditor's bank is?

A.clearing
B.accepting
C.negotiating
D.discounting