WAEC Commerce 2005 Past Questions

Question 1

The form of trade practised by the early men was characterized by?

A.exchange of goods for money
B.efficient distribution system
C.exchange of goods for goods
D.organized warehousing

Objective

Question 1

(a) Distinguish between trade and commerce.

(b) Describe five different activities engaged in by people in commercial occupations.

Theory

Question 2

Which of the following is an advantage of indigenization?

A.Checks exploitation by citizens
B.Business risk are shared
C.Fosters self-reliance
D.Leads to monopoly of power

Objective

Question 2

(a) State four reasons why transport is important to commerce.

(b) Explain three advantages and three disadvantages of air transport.

Theory

Question 3

Farming is an activity that falls under?

A.tertiary occupation
B.commercial occupation
C.extractive occupation
D.secondary occupation

Objective

Question 3

List and explain five functions of marketing.

Theory

Question 4

Which of the following coordinates other factors of production to achieve set objectives?

A.Land
B.Labour
C.Enterprenuer
D.Capital

Objective

Question 4

Explain the following terms used in insurance:

(a) surrender value

(b) cover note

(c) policy

(d) re-insurance

(e) group insurance

Theory

Question 5

Production is defined as?

A.an industrial undertaking
B.creation of utility
C.earning ones daily bread
D.the changing of raw materials

Objective

Question 5

List and explain five methods used by the Central Bank to control the activities of the commercial banks.

Theory

Question 6

An advantage of a public limited company over a private one is the?

A.limited liability of shareholders
B.easy transferability of shares
C.access to retained earnings
D.less taxation by government

Objective

Question 6

(a) State five characteristics of a limited liability company.

(b). Explain five sources of funds to a public limited company.

Theory

Question 7

The distribution of profits based upon the level of patronage in the business is a common feature of?

A.partnership firms
B.public limited companies
C.co-operative societies
D.private limited companies

Objective

Question 7

Explain the following and give three benefits of each:

(a) branding

(b) after sales service

(c) self-service

(d) vending machine

Theory

Question 8

The fee which the bank charges for services rendered to their current account customers is?

A.commission on turnover
B.bank rate
C.minimum lending rate
D.interest

Objective

Question 8

(a) What is Nationalization?

(b) Explain three rea-sons why government nationalizes some businesses.

(c) State four disadvantages of nationalization.

Theory

Question 9

The fee which the bank charges for services rendered to their current account customers is?

A.commission on turnover
B.bank rate
C.minimum lending rate
D.interest

Objective

Question 9

Describe the following documents and state one use of each;

(a) consignment note

(b) bill of sight

(c) catalogue

(d) manifest

(e) waybill.

Theory

Question 10

Which of the following would not affect the form of a business unit?

A.Availability of raw materials
B.The type of business
C.Number of persons involved
D.The capital size

Objective

Question 11

Partnership form of business is most appropriate?

A.where professionals are needed
B.for non-profit making ventures
C.where very large capital is required
D.where the liability of members is limited

Objective

Question 12

The nominal value of a share is the same as its?

A.market value
B.below par value
C.above par value
D.face value

Objective

Question 13

The nominal value of a share is the same as its?

A.market value
B.below par value
C.above par value
D.face value

Objective

Question 14

Which of the following is an intangible assets of a firm?

A.Goodwill
B.Reserve
C.Skilled personnel
D.Rights issue

Objective

Question 15

The net profit of a business is determined by?

A.deducting cost of goods sold from sales
B.deducting purchases from sales
C.adding commission received to gross profit
D.deducting all expenses from gross profit and other income

Objective

Question 16

An organization formed mainly by traders on the same line of business is known as?

A.trade union
B.cooperative society
C.trade association
D.chamber of commerce

Objective

Question 17

A bank's undertaking to pay an exporter on behalf of an importer is a?

A.documentary credit
B.letter of credit
C.letter of hypothecation
D.bill of exchange

Objective

Question 18

Who among the following cannot be regarded as an itinerant trader?

A.Gypsy
B.Barrow toy
C.Pediar
D.Stall owner

Objective

Question 19

Who among the following cannot be regarded as an itinerant trader?

A.Gypsy
B.Barrow toy
C.Pediar
D.Stall owner

Objective

Question 20

Which of the following will not be considered in choosing a channel of distribution?

A.Nature of product
B.Preferences of consumers
C.Volume of sales
D.Quality of product

Objective

Question 21

A manufacturer of goods that are seasonally will be in dire need of a?

A.wealthy customer
B.suitable means of transport
C.warehouse
D.large shop frontage

Objective

Question 22

A manufacturer of goods that are seasonally will be in dire need of a?

A.wealthy customer
B.suitable means of transport
C.warehouse
D.large shop frontage

Objective

Question 23

Which of the following is a feature peculiar to multiple shops?

A.Central location
B.Self service
C.Central buying
D.One stop shopping

Objective

Question 24

Which of the following is a feature peculiar to multiple shops?

A.Central location
B.Self service
C.Central buying
D.One stop shopping

Objective

Question 25

Terms of trade is the?

A.rate at which the central bank discounts first class bills
B.rate at which a country's exports exchange for its imports
C.expected rate of returns on an investment
D.rate of payment for goods and services purchased

Objective

Question 26

Which of the following encourages trade between regions?

A.Differences in currencies of countries
B.Difference in national income of countries
C.Existence of trade associations
D.Differences in natural resources

Objective

Question 27

Which of the following is not suitable for fire purchase?

A.Textiles
B.Furniture
C.Refrigerators
D.Printing machine

Objective

Question 28

The form of trade practiced by the early men was characterized by

A.exchange of goods for money
B.efficient distribution system
C.exchange of goods for goods
D.organized warehousing

Objective

Question 29

Which of the following is an advantage of indigenization ?

A.Checks exploitation by citizens
B.Business risks are shared
C.Fosters self-reliance
D.Leads to monopoly of power

Objective

Question 30

Farming is an activity that falls under?

A.tertiary occupation
B.commercial occupation
C.extractive occupation
D.secondary occupation

Objective

Question 31

Which of the following coordinates other factors of production to achieve set objectives?

A.Land
B.Labour
C.Enterpreneur
D.Capital

Objective

Question 32

Production is defined as

A.an industrial undertaking
B.creation of utility
C.earning one's daily bread
D.the changing of raw materials

Objective

Question 33

An advantage of a public limited company over a private one is the

A.limited liability of share holders
B.easy transferability of shares
C.access to retained earnings
D.less taxation by government

Objective

Question 34

The distribution of profits based upon the level of patronage in the business is a common feature of

A.partnership firms
B.public limited companies
C.co-operative societies
D.private limited companies

Objective

Question 35

The fee which the bank charges for services rendered to their current account customers is

A.commission on turnover
B.bank rate
C.minimum lending rate
D.interest

Objective

Question 36

Which of the following would not affect the form of a business unit

A.Availability of raw materials
B.the type of business
C.number of persons involved
D.the capital size

Objective

Question 37

Partnership form of business is most appropriate

A.where proffessionals are needed
B.for non-profit making ventures
C.where very large capital is required
D.where the liability of members is limited

Objective

Question 38

Partnership form of business is most appropriate

A.where proffessionals are needed
B.for non-profit making ventures
C.where very large capital is required
D.where the liability of members is limited

Objective

Question 39

The nominal capital of a public limited company is made up of 400,000 ordinary shares of 50k each.
The Board of Directors decided to issue 50% of it for subscription by the public.

The authorized share capital is

A.#400,000
B.#200,000
C.#100,000
D.#50,000

Objective

Question 40

The nominal capital of a public limited company is made up of 400,000 ordinary shares of 50k each.
The Board of Directors decided to issue 50% of it for subscription by the public.

The reserved capital is

A.#300,000
B.#200,000
C.#100,000
D.#50,000

Objective

Question 41

The nominal value of a share is same as its

A.market value
B.below par value
C.above par value
D.face value

Objective