COMMERCE FIRST TERM EXAMINATION SS 3

 FIRST TERM

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

SUBJECT:            COMMERCE            TIME ALLOWED: 2HRS  30MINS    CLASS:    S.S 3

OBJECTIVES

1. Activities which facilitate commerce include
2. engaging youths in environmental sanitation B. Funding political campaigns
3. providing recreational facilities in communities D. improving road networks.
4. A document through which invitation is extended to subscribe to shares is
5. article of association B. prospectus C. memorandum of association.  D. quotation.

3.One example of a product of the construction industry is a

1. chair. B. bag of cement C. price of cloth.   D. television.
2. A person authorised to sell the property of a company in a winding up is
3. an auctioneer. B. an agent. C. a liquidator.   D. a bailee.

Use the diagram below to answer question 5-7.

Teacher

Advertising

Transport           Barbers

Advertising

Insurance

5. The space marked A represent. A.trading B. industry.  C. occupation   D. advertising.

6.The space marked X represents   A. industry  B. foreign trade.  C. home trade

1. production.
2. What does the space marked M represents? A. Quarrying. B. Manufacturing
3. Agriculture. D. Trade.
4. The purchase and sale of goods over electronic system is
5. E-payment. B. E-commerce C. E-mail.    D. E-transfer
6. One disadvantages of a sole proprietorship is
7. quick decision making B. unlimited liability C. pride of ownership.
8. unlimited source of capital
9. Which of this is a source of short-term finance to a business?
10. Hire purchase. B. Overdraft C. Lease.     D. Debenture.
11. The portion of share capital which the company has asked the shareholder to pay is
12. called-up capital B. authorized capital C. paid-up capital     D. unpaid capital
13. Multilateral trade is carried out A. Between two countries only.
14. Within many countries C. Among amnycountries. D. between neighbouring countries only.
15. An association of businesses engaged in both trade and industry is a
16. co-operative society B. trade union. C. trust fund.   D. chamber of commerce.
17. Which of the following statement is true of debenture?
18. its holder receive interest. B. it forms part of company’s authorized capital.
19. its holders are co-owners of the company. D. its holder control the company.
20. The path through which a product moves from the manufacturer to the consumer is a
21. channel of communication. B. line of production. C. means of transportation.
22. channel of distribution.
23. If the opening stock of Ali Ltd is ₦40,000, cost of goods sold is ₦48,000 and closing stock is ₦24,000, its rate of turnover will be? A. 1.2 times B. 1.5 times  C. 2.0 times. D. 7.5 times.
24. A business which requires a certificate of trading in order to commence operation is a
25. co-operative society. B. private company C. sole proprietorship.  D. public company.
26. Exchange of goods in international market which does not involve the use of money is
27. barter trade. B. entrepot trade. C. counter trade. D. bilateral trade.
28. Which of the following is not associated with a chamber of commerce ? it is
29. democratically administered B. an independent association.
30. open only to enterpreneurs D. a voluntary association.
31. The reason for sending a proforma invoice to a potential customer is that it is
32. an indication of the sellers willingness to grant credit.
33. A polite way of telling the customer to return the goods.
34. an invitation to the buyer to buy on hire purchase
35. a polite wat of refusing to sell on credit
36. The insurance policy taken to cover dishonesty of accounts personnel of an organisation is A. employers liability. B. fidelity guarantee.   c. life endowment.  D. marine insurance
37. Which of the following documents is used when goods are being sent by a common carrier? A. Delivery note B. Consignment note.  C. Advice note   D. Credit note.
38. A put option in the stock exchange is an option A. to sell. B. not to sell.  C. to buy.
39. Not to buy.
40. The function of money do not include A. store of value B. medium of exchange.
41. double coincidence of want. D. means of deffered payment.
42. A document of tittle of goods written by the ship owner, specifying that certain goods are being conveyed in the ship is a A. bill of sale C. bill of sight  D. bill of entry  D. bill of lading.
43. Informative advertising is aimed at
44. giving advise on the use of a product. B. influencing customer to buy a product.
45. giving gifts to attract customers D. encouraging specific customers to buy a product
46. A cheap means of carrying bulky goods over long distance is by
47. rail. B. road. C. air.   D. pipeline.
48. A contract terminated by the occurrence of an event which makes performance impossible is discharged by
49. breach. B. agreement. C. frustration. D. performance.
50. An individual employed to act on behalf of another within a specified guideline is
51. a jobber. B. an agent. C. a broker    D. a distributor,
52. Which of the following is not a component of the marketing mix?
53. price. B. place. C. population.   D. product
54. A method of buying in anticipation of price fluctuation in the commodity market is
55. speculation. b. arbitrage. C. contango   D. hedging.
56. A shipping document detailing the charges for carrying a particular cargo for a specified voyage is A. dock warrant. B. freight note.  C. bill of lading.   D. mate’s receipt.
57. Commercial agents who are authorized to keep goods until they are sold are
58. factors. B. distributors. C. brokers.   D. auctioneers.
59. An advertisement method whose objective is to convince customers to buy a product is
60. informative advertisement. B. persuasive advertisement.
61. competitive advertisement. D. mass advertisement.
62. A government legislation which ensures that quality goods and services are available to customer is A. Hire Purchase Act. B. Copyright Act.    C. Price Control Act.
63. standard Organization act.
64. A bank draft is a cheque drawn by a bank on
65. another bank. B. itself. C. creditors.   D. customers deposits.
66. A company is quoted on stock exchange when its shares are
67. put under private placement. B. not for sale to the public. C. listed for sale on the exchange.    D. owned by the government.

38.which of the following function is not performed by the export promotion council?

1. Prevention of importation of harmful goods B. Provision of credit facilities to exporters.
2. Provision of technical advice to exporters. D. Creation of export free zones
3. Activities undertaken to create awareness of a product by giving out samples or gifts is
4. marketing mix. B. marketing concepts. C. window display.   D. sales promotion.
5. An advantage of privatizing a firm is that it
6. becomes more efficient. B. sells goods at low price.
7. employs more workers. D. attracts more customers.
8. The transfer of authority by a superior officer to his subordinate in an organisation is
9. controlling. B. decentralization. C. delegation.   D. directing.
10. The provision of schorlarship by a firm to needy students is part of its
11. political responsibility. B. economic responsibility. C. social responsibility.
12. legal responsibility.
13. How many countries form ECOWAS? A. 17 B. 16   C. 15    D. 14
14. Which of the following is a modern means of communication.
15. Grape vine B. E-mail. C. whistles    D. Town crier.
16. A system of issuing new shares to selected investors instead of the general public is
17. pubic offer. B. issue by tender. C. offer for sale.   D. private placement.
18. One of the aims of the European Union is to
19. ease trade among member countries B. enhance better trade with Africa.
20. enhance better trade with America. D. offer financial assistance to poor countries.
21. The purpose of commercialization is to
22. encourage the participation of the private sector. B. make state-owned firms more efficient. C. encourage the flow of foreign capital.  D. enable state-owned firms pay tax.
23. The time allowed for loading and unloading a ship at the harbour is
24. demurrage. B. tenure. C. lay days.   D. dead freight.
25. Interbank indebtedness is settled at the A. clearing house. B. money market.
26. discount house. D. stock exchange.
27. The concern of a marketing manager whose company has adopted the marketing concept is to A. recruit more salesmen. B. make maximum profit.  C. identify and satisfy customers needs
28. maintain the company’s shares of the market.

THEORY

ANSWER ANY FIVE QUESTIONS FROM THIS PART

1. a. Outline five functions of commercial banks
2. List and explain five ways the central bank control the commercial banks
3. a. What is contract?
4. List and explain four ways by which a contract can be discharged

3   a.    Write in full the following abbreviations as used in commerce I. COD II. CIF III. FOB

1. E and O E
2. The sale of consumer goods costing #200,000 attracts a cash discount of 9% and a

quantity discount of 6% calculate the : I value of the quantity discount II. value of cash

discount III. net amount of money payable

4. a. What is stock exchange market?
5.     Explain six functions of the stock exchange market
6. Explain each of the following insurance concept I. Re- insurance II. Under insurance III.

indemnity iv. non-indemnity insurance v. group insurance

6. a. Define the term market segmentation
7. List six factors that influence market segmentation
8. State five advantages of advertising
9. Explain the following documents used in international trade
10. Indent b. Bill of lading c. Consular invoice d. Certificate of origin e. Bill of exchange

8 a. Differentiate between nationalization and indigenization

1. State six reasons why a country would indegenize some industries to