COMMERCE FIRST TERM EXAMINATION SS 2

   FIRST TERM

Examination malpractices may lead to a repeat of the subject or suspensions don’t be involved.

SUBJECT: COMMERCE                        TIME: 2HRS             CLASS: SS  2

OBJECTIVE

1. A person who sells goods belonging to another person in his own name and receives commission is a.    a. wholesaler b. retailer c. sole trader d. factor
2. Foreign trade is also known as a. domestic trade b. international trade c. counter trade d. entreport trade
3. Which of the following is an example of extractive industry?
4. sewing dresses b. constructing bridges c. baking bread d. digging for precious stones
5. A group of firms that produce similar goods or services is called
6. an industry b. a trade association c. a cartel d. a holding company
7. Which of the following is a reason why cooperatives continue to exist, despite increased competition? a. they cannot become bankrupt b. they are not controlled in any way c. their profit are greater than competitors d. members have a belief in cooperative ideals
8. A multi-purpose cooperative is one that a. sells a wide variety of goods b. is part of a multiple chain of cooperatives c. engages in more than one type of business d. has multiple owners
9. A consumers cooperative differs from other types of business organizations because:
10. it shares its profit among its customers b. sells a variety of goods c. offers bargains at low prices d. produces its own products
11. The function of wholesalers cooperative society is to:
12. only sell the products of producer cooperatives b. sell to retailers cooperatives c. grow the food that retailers sell d. sell only specialist equipment in large quantities
13. Which one of the following is true concerning a consumers cooperatives?
14. each member has one vote b. shareholder have votes according to the number of shares they hold c. members can only buy from their own co-op d. the member of owners is restricted to 20
15. Which is not an argument that supports public ownership of industry
16. the support of shareholders is more reliable b. profit benefit the whole nation c. it ensures provision of essential services d. it assists the government in planning the economy
17. The best definition of a nationalized industry is :
18. a public company b. a municipal undertaking c. a state owned facility d. a business taken into state ownership
19. Nigeria is considered a mixed economy because it :
20. provide a mix of goods and services b. has public and private sector firms c. imports and exports goods d. has industrial and commercial firms
21. Which of the following is created by a government act?
22. a public limited company b. a private enterprise c. a pulic corporation d. a private limited company
23. The ownership of a public limited company are:
24. the government b. the shareholder c. the local council d. the local community
25. Which of the following is not included in the articles of association when a company is being formed? a. the right of shareholders b. whether the company is private or public c. method of election of directors d. the division of profits
26. Limited liability means: a. the business cannot make a loss b. the firm is either a private or a public company c. shareholders are liable for the money have invested d. all employee are insured against accidents
27. The type of business organization that is allowed to restrict the right of share transfer is called
28. a private company b. a public company c. a restricted company d. a public corporation
29. The document that gives a business a separate identity from that of its owners is:
30. memorandum of association b. articles of association c. insurance certificate d. certificate of incorporation
31. When goods are in the form in which consumers want them, they are sold through:
32. the consumer market b. a commodity market c. the futures market d. a commodity exchange
33. Raw materials are:
34. graded materials b. dealers goods c. producers goods d. consumers goods
35. Which of the following can not be accurately graded? a. wheat b. tea c. cotton d. sugar
36. Which of the following goods would be sold by sample? a. copper b. tin c. wool d. rubber
37. Commodity exchange deal with goods such as:
38. machines sold by a manufacturer b. goods bartered for each other c. coffee,tea,cocoa and sugar d. shoes
39. Which of the following is formed primarily to promote savings and loan among members:
40. consumer cooperative society b. producers cooperative society c. wholesalers cooperative society d. credit and thrift cooperative society
41. A retailer cooperative society aims at
42. encourages member to save money b. buying seeds and fertilizers c. manufacturing goods as cheaply as possible d. cutting off the profits of middlemen
43. Which of the following is sent as a reply to an inquiry?
44. tender b. estimate c. statement d. quotation
45. Which of the following is not a means of making payment to a business man
46. bank draft b. cash c. cheque d. statement
47. One means of making payments through the NIPOST is the
48. money order b. cheque c. standing order d. promissory order
49. One means of making payment through the bank is
50. cheque b. promissory note c. bill of exchange d. I owe you
51. One of the factor that determine the method of payment is
52. legal tender b. the urgency of payment c. stability d. durability
53. Activities which facilitate commerce include
54. engaging youths in environmental sanitation b. funding political campaigns
55. providing recreational facilities in communities d. improving road networks
56. One of a product of the construction industry is a
57. chair b. bag of cement c. piece of cloth d. television
58. A person authorized to sell the property of a company in winding up is
59. an auctioneer b. an agent c. a liquidator d. a bailee
60. The purchase and sale of goods over electronic system is
61. E _payment b. E_commerce c. E_mail d. E _transfer
62. Multilateral trade is carried out
63. between two countries only b. within many countries c. among many countries
64. between neighbouring countries only
65. An association of businesses engaged in both trade and industry is a
66. co-operative society b. trade union c. trust fund d. chamber of commerce

37. Which of the following is a source of short term finance to a business?
38. hire purchase b. overdraft c. lease d. debenture
39. One disadvantage of a sole trader is
40. quick decision making b. unlimited liability c. pride of ownership d. unlimited sources

of capital

39. Which of the following is true of a debenture?
40. it’s holders receive interest b. it form part of company authorized capital c. it’s holders

are co owners of the company d. it’s holders control the company

40. The path through which a product moves from the manufacturer to the consumer is a
41. channel of communication b. line of production c. means of transportation d. channel

of distribution

41. A business which requires a certificate of trading in order to commence operation is a
42. co-operative society b. private company c. sole trader d. public company
43. Exchange of goods in international market which does not involve the use of money is
44. barter trade b. entrepot trade c. counter trade d. bilateral trade
45. The functions of money do not include a. store of value b. medium of exchange c. double coincidence of want          d. means of deferred payment
46. A cheap means of carrying bulky goods over long distance is by a. rail b. road c. air d. pipeline
47. Production is said to be complete only when
48. demand for goods precedes supply b. goods and services meet the customers

specification c. goods and services reach the end user d. raw materials are supplied to

the firm

46. Which of these is not an example of constructive occupation?
47. bricklaying b. furniture making c. mining d. plumbing
48. The highest financial institution in Nigeria which implements the monetary policies of the

government is the —————bank.

1. central b. commercial c. development d. merchant
2. The person who contributes capital but does not take part in running the business is

called ——————partner       a. active b. dormant c. general d. nominal

49. The document given to Mr Samuel by Mr Johnson to acknowledge payment for goods

is known as                a. credit note b. debit note c. invoice d. receipt

50. Mr enemali can be a part owner of a public limited liability company by ———its shares
51.   advertising b. buying c. marketing d. promoting

THEORY:  ANSWER ANY FIVE QUESTION FROM THESE SECTION

1a.       What is commerce?

1.        Write short note on the following:
2. stock b. shares c. debentures d.overdraft e. retained profit

2a.       Define cooperative society.  b.       list and explain the types of cooperative society

1. Define incorporation

3a.       What is public enterprises?

1. state three problems of cooperative society

4a.       Explain the requirement for trading

1. what are the constraint of commodity trading

5a.       write short note on the following:

1. trade discount ii.cash on delivery iii. Free on board iv. Credit note v. invoice
2. explain the banking system under the means of payment

6a.        define production       (b)  state the function of commercial banks

1. state the document used in foreign trade

7a.      What is partnership?    b.      state function of central bank

1. state the contents of article of association

8a.      What is a company?

1. State the features of co-operative society    b.       state the factors  that determines types of occupation

Examination malpractices may lead to a repeat of the subject or suspensions don’t be involved.

SUBJECT: COMMERCE                        TIME: 2HRS             CLASS: SS  3

OBJECTIVE

1. A breach of contract will have occurred when:
2. the contract is accepted by someone b. all parties have done their part c. one party has failed to comply with the agreement d. the contract has been discharged
3. For an acceptance to be valid it must be: a. qualified b. unqualified c. conditional d. in writing
4. A price tag on an article on display in a shop is :
5. an invitation to treat b. a consideration c. a counter offer d. an agreement
6. Payment made to a seller is:
7. a consideratioin b. an acceptance c. a counter offer d. an agreement
8. The term capacity refers to:
9. an ability to sign your name b. someone over the age of 18 c. an ability to act responsibly d. a void contract
10. The purpose of organization chart is to show the:
11. order in which tasks are organized b. line managers in an organization c. structure of an organization d. method of communicating in an organization
12. A mission statement contains:
13. the functions of a business b. a summary of corporate strategy c. details of the span of control d. line of authority
14. The manager of the production department consulting with the purchasing manager is an example of:
15. downward communication b. upward communication c. horizontal communication d. bottom-up communication
16. The chain of command is the:
17. line of authority in an organization b. number of subordinates a manager supervises c. distribution of decision making d. authority a manager has
18. Span of control is the:
19. number of subordinates answerable to a manager b. number of workers in a department c. manner in which authority is shared d. line of authority in an organization
20. An organization chart shows the:
21. order in which tasks should be done b. types of business of the firm c. structure of a company d. business interpersonal relationships
22. Which of the following members of a large company has overall responsibility for the day to day running of business? a. chairman board of the directors b. managing director c. company secretary d. overall day manager
23. The Nigeria stock exchange is a segment of the:
24. exchange market b. money market c. capital market d. Lagos market
25. Which of the following banks is concerned with raising money for a business through share issue? a. central bank b. credit bank c. commercial bank d. merchant bank
26. The proportion of profits given to ordinary shareholders is called:
27. interest b. dividend c. yield d. equity
28. The most risky form of security investment is:
29. preference shares b. treasury bills c. debentures d. ordinary shares
30. The profit a jobber makes on trading is called: a. turn b. return c. interest d. dividend
31. Which of the following is not a factor of production? a. food b. land c. labour d.capital
32. How many parties are involve in a contract? a. two b. three c. five d.one
33. caveat emptor means a. sellers are informed b. buyers beware c. buyers readiness d. sellers beware
34. One of the following is not the right of an employee
35. right of be remunerated b. right to go on leave c. right to be indemnify d. right to steal
36. all the following except one is not the right of an employer
37. right to employ b. right to terminate appointment c. right to remunerate d. right to beat
38. Business registration is carried out by
39. corporate commission b. corporate affairs commission c. Christ apostolic church d. commission association corporate
40. When a company is registered is issued a certificate called
41. certificate of registration b. certificate of incorporation c. memorandum of association d. article of association
42. The 14 principle of management was postulated by
43. Henry ford b. Henry fayol c. Henry fashion d. bill Clinton
44. The seller transfer the property in goods to the buyers for a money consideration called
45. surplus b. deficit c. cost price d. the price
46. One of the following is the terms of contract of sale.
47. the surplus b. condition c. sales d. goods
48. Sale of goods act is enacted in a. 1896 b. 1983 c. 1893 d. 1988
49. The provision of the sales of goods act 1893 “right to sale” means
50. the goods are sold b. the seller have a right to pass a goods title c. the buyer has a right to pass a goods title d. where the goods were sold by sample
51. The sole purpose of production is a. employment b. promotion c. consumption d. competition
52. A document through which invitation is extended to the public to subscribe to shares is
53. articles of association b. prospectus c. memorandum of association d. quotation
54. If the opening stock of Ali Ltd is #40,000,cost of goods sold is #48,000 and closing

stock is #24,000, it’s rate of turnover will be   a. 1.2 times b. 1.5 times c. 2.0 times d.  7.5 times

33. Which of the following features is not associated with a chamber of commerce? it is
34. democratically administered b. an independent association c. open only to entrepreneurs d. a voluntary association

34. The insurance policy taken to cover dishonesty of account personnel of an organization
35. a. employers liability b. fidelity guarantee c. life endowment d. marine insurance
36. A put option in the stock exchange is an option       a. to sell b. not to sell c. to buy d. not to buy
37. informative advertising is aimed at
38. giving advice on the use a of product b. influencing customers to buy a product
39. giving gifts to attract customers d. encouraging specific customers to buy a product
40. A contract terminated by the occurrence of an event which makes performance impossi-

ble is discharged by             a. breach b. agreement c. frustration d. performance

38. Which of the following is not a component of the marketing mix?
39. price b. place c. population d. product
40. A method of buying in anticipation of price fluctuation in the commodity market is
41. speculation b. arbitrage c. contango d. hedging
42. An individual employed to act on behalf of another within a specified guideline is
43. a jobber b. an agent c. a broker d. a distributor
44. The transfer of authority by a superior officer to his subordinate in an organization is
45. controlling b. decentralisation c. delegation d. directing
46. Which of the following is a modern means of communication?
47. grape vine b. e-mail c. whistles d. town crier
48. A company is quoted on the stock exchange when it’s share are
49. put under private placement b. not for sale to the public c. listed for sale on the

exchange d. owned by the government

44. A government legislation which ensures that quality goods and services are available to

customers is

1. hire purchase act b. copyright act c. price control act d. standard organization act
2. An advertisement method whose objective is to convince customers to buy a product is
3. informative advertisement b. persuasive advertisement c. competitive advertisement
4. mass advertisement
5. A system of issuing new shares to selected investors instead of public is a. public offer
6. issue by tender c. offer for sale d. private placement

Use the information below to answer questions 47 to 49.

The financial position of saiye enterprises as at 31st December 2015 is as follows :

#

Fixtures.                                      1,500

Stock 31st Dec.                         10,000

Debtors.                                        6,000

Creditors.                                      4,000

Cash in hand.                                8,000

Bank overdraft.                             2,200

Typewriter.                                    5,500

Furniture.                                       3,500

Capital.                                        19,000

Profit for the year.                       2,700

Three months co-operative loan 5,100

47. Calculate the capital owned a. #10,000 b. #12,700 c. #13,500 d. #23,200
48. calculate the current liabilities a.#6,000 b. #9,000 c. #10,000 d. #11,300
49. calculate the fixed assets a. #10,500 b. #11,500 c. #14,000 d. #17,500
50. The amalgamation of firms at different stages of production is known as
51. cartel b. holding company c. horizontal integration d. syndicate

THEORY

ANSWER QUESTION ONE ANYOTHER FOUR QUESTION FROM THESE SECTION

1a.      What is management?    b.           explain the 14 principles of management

2a.      Define business law     b.        What are the essential element of contract?

1. state the duties of an employee

3a.      What is stock exchange? b. state the requirement of admission  into first their security market

1. define hire purchase

4a.      Define business    b.        State the reasons for government regulation of business     c.       What are the functions of security and exchange commission?

5a.      Explain the obligation of a seller      b.           state the duties of an agent

1. state the duties of the principal

6a.      Define insurance  b.       explain the type of capital

1. state the features of hire purchase

7a.       what are the remedies for breach of contract?

1. explain the reasons for termination of agency

8a.        write short note on the following:    I. bear II. bull III. stag Iv.broker v. jobbers

1. state the types of insurance