WAEC Commerce 2007 Past Questions

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Which of the following was not used as a medium of exchange by the early Europeans that came to West Africa?

A.Pounds and shillings
B.Copper manillas
C.Iron bars
D.Cowries

(a) Explain six functions of wholesalers to manufacturers

(b) State four problems that a cooperative society may likely face.

The ancillary to trade which ensures that people gain access to facts pertaining to goods is

A.insurance
B.advertising
C.warehousing
D.banking

(a) Explain five advantages of large scale retailing

(b) State five characteristics of each of the following:
(i) Department Stores
(ii) Supermarkets.

Which of the following is classified as an extractive industry ?

A.Digging for minerals
B.Digging for roads building
C.Canning of Tomatoe puree
D.Assembling of cars

(a) What is balance of payments?

(b) List and explain six methods used in correcting an adverse balance of payment.

Who among the following does not render direct service?

A.Teachers
B.Musicians
C.Doctors
D.Retailers

Differentiate between the following paired terms:
(a) Trade discount and cash discount
(b) Branding and packaging
(c) Indemnity and compensation
(d) cash receipt and invoice
(e) Credit sales and hire purchase.

A partnership cannot raise its capital by

A.selling shares to the public
B.personal contribution of partners
C.admission of new partners
D.undistributed profits

(a) List and explain four elements of a valid contract

(b) Explain four duties of an agent to the principal.

Which of the following is not required in the mail order business?

A.Warehouse
B.Catalogue
C.Display room
D.Post office

(a) Amatco Ltd has an authorized capital of 6,000,000 ordinary shares of D5.00 per share. It issued 3,000,000 ordinary shares and all such shares were bought and paid for at D2.00 a share except 1,000 shares taken by Mr. Jones. Calculate the value of the: (i) authorized capital (ii) issued capital (iii) called-up capital (iv) paid-up capital.

(b) The following are the assets and liabilities of Morgan's Ltd:

	N
cash	8,000
Building	81,000
Creditors	6,500
sales returns	12,000
Debtors	18,000
Capital	122,000
Overdraft	11,000
Motor vehicle	20,000
sales	50,000
Net profit	20,000

The staff responsible for the calculations of probability of losses in insurance is the

A.Actuary
B.Underwriter
C.Broker
D.Solicitor

Outline five objectives of each of the following:

(a) International Monetary Fund (IMF).

(b) European Economic Community (EEC).

The rate at which the country's import exchanges for its export is known as

A.Terms of trade
B.Balance of trade
C.Rate of exchange
D.Terms of exchange

On June 17, 2006, Mr. Cham wrote an order cheque of M. Sumarch for D500 drawn on Standard Chartered Bank, Bakau

(a) State the drawer, the payee and the drawee from the above information.

(b) The cheque is crossed "Account Payee only" and "Not Negotiable", Explain four effects of the crossing.

(c) State three advantages of payment by cheque.

Where a limited partner exists in a partnership

A.no active partner is needed
B.other partners must be nominal
C.at least one ordinary partner must be there
D.at least one member must be a legal practitioner

(a) State six facilities a good seaport should have.

(b) In what four ways is transport important to commerce?

Which of the following is best organized as a partnership?

A.Drilling and marketing of crude oil
B.Brewing and distribution of beer
C.Designing and building of houses
D.Assembling and marketing of vehicles

(a) Explain five functions of advertising.

(b) Explain three merits and two demerits of newspaper advertising.

Public enterprises are financed mainly by

A.the shareholders
B.commercial banks
C.government grants
D.The World Bank

Contributing money to buy equipment for making and marketing a product is a feature of

A.thrift societies
B.public limited companies
C.consumers' cooperatives
D.producers' cooperatives

The operations of a private company is guided by the

A.deed
B.certificate of trading
C.certificate of incorporation
D.company's act

The various rights attached to different classes of shares are stated in the

A.articles of association
B.memorandum of association
C.balance sheet
D.prospectus

Which of the following gets extra dividend after its due fixed rate of dividend

A.Preference shares
B.Cumulative preference shares
C.Ordinary shares
D.Participating preference shares

A company may be wound up when

A.there is a disagreement among the directors
B.there are too many shareholders
C.many of the share holders die
D.its product competes with that of the government

If the opening stock is Le200, cost of goods sold Le2,400, and closing stock Le120, then the rate of turnover is

A.20 times
B.15 times
C.12 times
D.7.5 times

The money used by Njie & Co. Ltd in running the day-to-day activities of the business is represented by

A.total assets less total liabilites
B.total assets less current liabilities
C.current assets less stock
D.current assets less current liabilities

A limited company has an authorized capital of 20,000,000 shares. If each share capital costs 5ok and the company sold 12,000,000 shares, its issued capital is

A.#16,000,000
B.#10,000,000
C.#6,000,000
D.#4,000,000

A document used to advertise shares for sale is

A.prospectus
B.annual report
C.articles of association
D.memorandum of association

Which of the following refers to a voluntary association that represents a cross-section of business interests in an area?

A.Manufacturers Association
B.Chamber of Commerce
C.Consumers Association
D.Employers Association

Which of the following is used to show that goods imported were produced in an ECOWAS member country

A.Insurance policy
B.Bill of lading
C.Certificate of origin
D.Bill of exchange

Importing goods into a country re-exporting is know as

A.home trade
B.retail trade
C.entrepot trade
D.counter trade

Which of the following is a function of the small retailer?

A.Financing manufactures
B.Warehouse of goods
C.Branding of goods
D.Selling to consumers

The content of a bill of lading does not include the

A.name of the shipper
B.date and place of shipment
C.name and destination of the vessel
D.demurrage payable

Who is responsible for the payment of the bill in a documentary credit

A.Exporter
B.Importer
C.Importer's bank
D.Exporter's bank

A popular product priced low to attract a larger number of buyers to a shop is called

A.loss leader
B.capital good
C.seasonal good
D.price ring

Centralized buying and decentralized selling are features of

A.cooperative wholesalers
B.department stores
C.mail order business
D.multiple stores

Which of the following is not a feature of a self-service store?

A.it is found mainly in urban areas
B.it offers steady employment opportunities
C.Goods carry price tags
D.it operates on a large floor space

If a share is sold at a price below its face value, it is sold

A.above par
B.at a discount
C.at par
D.at premium

Mr Ojo buys a book from a bookseller and pays cash. The bookseller will issue him a

A.debit note
B.credit note
C.voucher
D.receipt

A limited company can raise long term capital through the

A.commodity market
B.stock exchange market
C.export market
D.foreign exchnage market

Which of the following is not a reason for dishonoring a cheque?

A.insufficient funds in drawer's account
B.when the cheque is stale
C.Amount in figure differs with amount in words
D.Poor handwriting

Which of the following is not a function of the Central Bank

A.Banker to the government
B.Banker's bank
C.issuance of currency notes
D.Granting loans to the public

Treasury bills are bought and sold in the

A.Capital market
B.Open market
C.Commodity market
D.Money market

Which of the following is legal tender

A.Bank notes
B.Bank drafts
C.Central bank cheque
D.Traveller's cheque

Which of the following is referred to as the oldest form of insurance?

A.Marine insurance
B.Burglary insurance
C.Whole life insurance
D.Accident insurance

An open cheque is one

A.on which the amount is written only in figures
B.which has no name
C.which can be cashed over the counter
D.which has no specific amount written on it

Madam Tope insured her shop premises for the sum of D60,000, when insuring the shop,she did not tell the Insurance company that she cooks in the shop, but told the insurance company that she sells second hand clothes. Hence she insured her store against natural causes. Tope's shop got burnt yesterday by fire from the cooking pot.

Which of the following insurance principles was breached by Madam Tope?

A.Insurable interest
B.Contribution
C.Utmost good faith
D.Subrogation

Madam Tope insured her shop premises for the sum of D60,000, when insuring the shop,she did not tell the Insurance company that she cooks in the shop, but told the insurance company that she sells second hand clothes. Hence she insured her store against natural causes. Tope's shop got burnt yesterday by fire from the cooking pot.

Which of the following insurance principles will prevent her from claiming compensation?

A.indemnity
B.insurable interest
C.Proximate cause
D.Utmost good faith