WAEC Commerce 2013 Past Questions

	Le
Rent	25,000
sales	850,000
return outwards	15,000
purchase	400,000
returns inwards	25,000
Insurance	45,000
fixtures and fittings	15,000
wages and salaries	112,000
Transport	6,000

From the above information calculate the: (a) turnover (b) cost of goods sold (c) gross profit (d) Rate of stock turn

Theory

Question 11

The Board of Directors of Public corporation is appointed by the

A.government
B.shareholders
C.management
D.employees

Objective

Question 12

The object clause of a limited liability company is stated in the

A.Memorandum of Association
B.Article of Association
C.Certificate of Incorporation
D.Trading certificate

Objective

Question 13

A market which deals in the purchase and sale of second hand securities is the

A.Stock Exchange
B.Building Society
C.Shippers Council
D.Co-operative

Objective

Question 14

To endorse a cheque means to

A.write and sign one's name at the back of the cheque
B.write "pay cash" on the cheque
C.cross the cheque
D.stop the payment of the cheque

Objective

Question 15

An insurance policy that covers the body of the ship only is called

A.Haulage insurance
B.Voyage insurance
C.Hull insurance
D.Cargo insurance

Objective

Question 16

Mr Biu has been paying the premium of a straight Life Assurance policy for several years. The surrender value of the policy is the amount that

A.would be paid to mr Biu if he should discontinue with the policy
B.would be paid to mr Biu's beneficiary if he dies
C.is paid annually by mr Biu to the insurance company
D.the amount mr Biu has paid plus interest

Objective

Question 17

Which of the following protects consumers against poor quality foods

A.Chambers of Commerce
B.Standard Organization
C.Trade Association
D.Manufacturers Association

Objective

Question 18

The use of current account in business is convenient because

A.withdrawal can be made at any time
B.deposits earn higher interests
C.loans are always available
D.notices are necessary befor withdrawals

Objective

Question 19

The cost of telephone conversation is determined by

A.number of words spoken
B.person sending the message
C.duration of the conversation
D.urgency of the message conveyed

Objective

Question 20

"Not Negotiable" on a cheque means

A.ownership can be transferred to the third party by mere delivery
B.the cheque can be paid over the counter on endorsement
C.the holder has no better title than the person person who transfers it
D.ownership rests with the one who issued the cheque

Objective

Question 21

The type of transport a manufacturer will use will be influenced by

A.type of sales
B.the tax on the goods
C.the customer's age
D.nature of the goods

Objective

Question 22

A contract made between a ship owner and a merchant for the carriage of cargo is

A.ships' manifest
B.charter party
C.freight forward
D.cargo service

Objective

Question 23

Advertising efforts geared towards a particular audience is known as

A.mass advertising
B.direct advertising
C.persuasive advertising
D.indirect advertising

Objective

Question 24

Trade fairs and exhibitions are media of

A.sales promotion
B.customer service
C.market segmentation
D.advertising

Objective

Question 25

The concept which says that a company's production policy should be centered on the ultimate user of the product is known as

A.market segmentation
B.consumer sovereignty
C.marketing mix
D.marketing research

Objective

Question 26

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

Objective

Question 27

Which of the following is a feature of supermarkets?

A.Gives credit to reliable customers
B.Specializes in one line of product
C.Goods are on display with price tags
D.Does not have to provide storage facilities

Objective

Question 28

Public enterprises are financed mainly by

A.the shareholders
B.commercial banks
C.government grants
D.mortgage banks

Objective

Question 29

A personal computer on sale in an office equipment shop is an example of

A.stock
B.fixed asset
C.liability
D.fixed capital

Objective

Question 30

The difference between current assets and current liabilities is

A.Issued capital
B.capital employed
C.working capital
D.nominal capital

Objective

Question 31

A Ltd. Company has an authorized capital of 2,000,000 shares of D5 each. If the company issued 1,200,000 shares, its issued capital is

A.D 10,0000,000
B.D6,000,000
C.D4,000,000
D.D2,000,000

Objective

Question 32

The money issued by Ola Maro and Co Ltd. in running the day to day activities of the business is represented by

A.fixed capital
B.capital employed
C.paid-up capital
D.working capital

Objective

Question 33

Which of the following is an advantage of a sole trader?

A.Guaranteed profit
B.Quick decision-making
C.Unlimited liabilty
D.Buying on credit

Objective

Question 34

A person's deliberate decision to reduce the value of her currency is called

A.deregulation
B.inflation
C.devaluation
D.revaluation

Objective

Question 35

Which of the following is not a function of warehousing

A.Creating security of goods
B.Stabilization of price
C.Production ahead of demand
D.Storage of goods

Objective

Question 36

Ad valorem duties are based on the

A.importance of the goods imported
B.value of the goods imported
C.weight of the goods imported
D.nature of the goods imported

Objective

Question 37

A tariff refers to

A.fees imposed on contraband goods
B.fees paid on exports
C.taxes imposed on imported goods
D.taxes paid on home-made goods

Objective

Question 38

The selling of goods in small units is normally performed by

A.chambers of commerce
B.wholesalers
C.distributors
D.retailers

Objective

Question 39

Direct sales to consumers by manufacturers is a means of eliminating

A.wholesalers only
B.retailers only
C.middlemen
D.agents

Objective

Question 40

A physical restriction placed on the quantity of goods that can be imported is

A.a ban
B.a quota
C.an excise duty
D.an import tax

Objective