WAEC Commerce 2014 Past Questions

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

A price quotation which includes all the expenses involved in loading the goods into a ship is

A.Free on Board (FOB)
B.Free Alongside Ship (FAS)
C.Cost, Insurance, Freight (C.I.F)
D.ex-ship

Compare a public limited company with partnership under the following headings

(a) formation: (b) Ownership and Control: (c) Source of Capital: (d) Liability: (e) Dissolution:.

Shares, bonds, stocks and debentures traded on the stock exchange are collectively called

A.collaterals
B.commodities
C.resources
D.securities

(a) Define a multiple shop

(b) State three features of a multiple shop

(c) Explain three advantages and three disadvantages of a Multiple shop.

In a hire purchase contract, the customer becomes the legal owner of the goods by

A.paying the last installment
B.paying the first installment
C.taking possession of the goods
D.paying half the purchase price

(a) State five problems of barter system of trading

(b) Explain five ways in which the introduction of money has solved the problems stated in 3 (a) above.

Which of the following is engaged in commercial occupation?

A.a brick layer
B.an engineer
C.an insurance broker
D.a barber

Explain each of the following insurance concepts

(a) non indemnity insurance

(b) Group insurance

(c) Re-insurance

(d) Under insurance

(e) Consequential loss insurance.

"Net 3 months" on an invoice means the buyer will

A.pay interest after 3 months
B.gets discount if he pays within 3 months
C.pay full invoice amount after 3 months
D.have discount if he pays after 3 months

(a) What is packaging

(b) State three disadvantages of packaging

(c) State five reasons for the packaging of products by Manufacturers.

The ratio between a country's exports and her imports prices is the

A.balance of trade
B.balance of payments
C.terms of trade
D.exchange rate

(a) Define a contract of sale

(b) Outline six items that must be contained in a contract sale.

The charge paid to a ship owner for the unused part of a ship is known as

A.penalty
B.dock dues
C.dead freight
D.demurrage

(a) What is a stock exchange market.

(b) Explain six functions of the stock exchange market

Fidelity guarantee insurance will only cover

A.cashier's fraud
B.daylight robbery
C.loss of profit
D.unpaid loan

(a) Explain current assets giving two examples.

(b) State two uses of working capital

(c) The state of affairs of Zig stores as at 31st December, 2009 shows the following.
You are required to calculate Zig Stores: Furniture and fittings 30,000 Motor van 164,000 Stocks 76,000 Debtors 50,000 Creditors 60,000 Cash in hand 20,000 Bank overdraft 10,000

(i) current liabilities (ii) current assets (iii) working

In the absence of the bill of lading, which of the following is used o clear the goods

A.Bill of sight
B.Dock warrant
C.Certificate of Origin
D.Mate's receipt

A system of sales where goods are sold to the highest bidder is known as

A.credit sale
B.hire purchase
C.clearance sale
D.auction sale

The term "fiduciary issue" means

A.money issued without gold backing
B.money issued with gold backing
C.money issued as currency note
D.gold reserve

An insurance principle which prevents an insured from making profit when compensated is known as

A.proximate cause
B.indemnity
C.insurable interest
D.utmost good faith

A retail outlet with many branches all dealing in similar line of goods is described as a

A.department store
B.supermarket
C.chain store
D.hypermarket

A person who gave his building as a security for loan is known as a

A.trustee
B.mortgagee
C.mortgagor
D.guarantor

A firm that specializes in packing and shipping of goods is known as a

A.forwarding agent
B.general agent
C.del credere agent
D.cargo handling company

Which of the following is a function of marketing department in a firm?

A.Add value to goods and services
B.Protect those who engage in business transactions
C.initiate general policies in the organization
D.Handle all staff masters in the system

An individual or company that engages in the transportation of any type of goods for a fee is called a

A.common carrier
B.hawker
C.porter
D.clearing agent

Debentures which are secured by the fixed assets of a company are called

A.Mortgaged Debenture
B.Naked Debenture
C.Redeemable debenture
D.irredeemable Debenturs

The central bank sometimes calls for special deposits from the commercial banks in order to

A.reduce bank lending
B.increase bank lending
C.withraw defaced currencies
D.issue notes and coins

A principal member of the stock exchange who buys and sells securities on his own is a

A.jobber
B.promoter
C.broker
D.speculator

Consumer protection council places an obligation on producers to ensure that their products

A.are wholesome and safe
B.are cheap
C.do not evade customs examination
D.are branded

The target of all marketing activities is the

A.consumer
B.middleman
C.producer
D.distributor

Small-scale retailers continue to exist in spite of the dominance of large firms because they

A.render personal service
B.employ few salesmen
C.can raise large capital from relatives
D.deal in specific goods

Buildings and machinery purchased for use in business are examples of

A.current assets
B.fixed assets
C.capital employed
D.paid up capital

The throwing of goods over board to prevent a ship from sinking is known as

A.floatsam
B.abandonement
C.jettison
D.particular average

In insurance, risks that have no statistics for their calculations are

A.insurable risks
B.certain risks
C.un-insurable risks
D.uncertain risks

The practice of selling goods in foreign countries at lower prices than obtainable int he exporting country is known as

A.entrepot trade
B.dumping
C.hedging
D.counter trade

The entertainment industry is classified under

A.extractive industry
B.manufacturing industry
C.constructive industry
D.commercial industry

Buying on impulse is encouraged by

A.co-operative shops
B.hawkers
C.supermarket
D.mail order firms

A fixed deposit account is beneficial to its holders because

A.cheques can be issued to settle huge debts
B.customers can become shareholders of the bank
C.it attracts higher interest rate
D.it allows customers overdraw their accounts

An amount paid by a bull who wishes to defer the purchase of shares to the next accounting period is

A.brokerage
B.backwardation
C.contango
D.commission

Foreign trade is concerned with

A.exchange of goods and services among companies
B.buying and selling of imported goods
C.exchange of goods and services among citizens
D.buying and selling of goods and services among countries

The distribution of goods creates

A.time utility
B.place utility
C.form utility
D.possession utility

The documents issued by the Registrar of companies which allows a public company to commence business is called

A.trading certificate
B.prospectus
C.certificate of incorporation
D.memorandum of association

A cheque bearing a date showing that it was issued more than six months ago is termed a

A.blank cheque
B.bearer cheque
C.stale cheque
D.order cheque

A system of buying products from a machine is known as

A.Impulse buying
B.branding
C.automatic vending
D.loss leader

Carpentry is an activity classified under

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

A system of buying goods by an agent where the supplier is determined by the principal is

A.tied shop
B.closed shop indent
C.open indent
D.ring trading

One of the functions of a central bank is to

A.perform supervisory role among all the banks in the country
B.provide the means of payment to individuals
C.ensure the smooth transfer of shares
D.accept private deposits

The issue of Certificate of Incorporation to a company means that it has

A.started production
B.legally come into being
C.appointed a board of directors
D.merged with another company

The part of authorized capital of a company sold to shareholders is

A.paid-up capital
B.called-up capital
C.issued capital
D.nominal capital

A person who contributes money to a partnership business and is also involved in its general supervision is called

A.An active partner
B.a limited partner
C.A dormant partner
D.a nominal partner