EDU DELIGHT TUTORS MOCK EXAMINATION

Subject: Commerce
Class: Senior Secondary School 3 (SS3)
Time Allowed: 2 Hours
Instruction: Answer all questions in Section A and Section B.

SECTION A – OBJECTIVE QUESTIONS (30 marks)

Choose the correct option from the alternatives provided. Write only the letter of the correct answer.

1. Commerce is best defined as the:
   A. total system of buying and selling
   B. production and exchange of goods only
   C. distribution and exchange of goods and services
   D. process of making profits from business

2. Which of the following is not an aid to trade?
   A. Insurance
   B. Banking
   C. Advertising
   D. Manufacturing

3. The reward for the use of capital in business is:
   A. Profit
   B. Interest
   C. Rent
   D. Wages

4. The type of partnership where some partners have limited liabilities is called:
   A. General partnership
   B. Cooperative society
   C. Joint-stock company
   D. Limited partnership

5. Which of the following is a function of a retailer?
   A. Producing goods
   B. Manufacturing goods
   C. Breaking bulk
   D. Transporting goods

6. One of the advantages of a sole proprietorship is:
   A. Shared responsibilities
   B. Limited liability
   C. Quick decision-making
   D. Transfer of ownership

7. Public corporations are owned by:
   A. Private individuals
   B. Shareholders
   C. The government
   D. The general public

8. Which of the following provides medium-term loans to businessmen?
   A. Central Bank
   B. Commercial Bank
   C. Development Bank
   D. Insurance Company

9. Warehousing mainly helps to:
   A. Determine prices
   B. Bridge time gap between production and consumption
   C. Fix retail prices
   D. Provide capital for business

10. Which of the following is not a commercial occupation?
    A. Farming
    B. Transport
    C. Insurance
    D. Banking

11. The person who brings buyers and sellers together and charges commission is known as:
    A. Retailer
    B. Factor
    C. Broker
    D. Wholesaler

12. Capital owned by a business is also called:
    A. Fixed capital
    B. Working capital
    C. Loan
    D. Equity

13. A company that sells directly to consumers using the internet is practicing:
    A. Direct marketing
    B. E-commerce
    C. Retail franchising
    D. Mail-order business

14. What is the main function of the stock exchange?
    A. Storage of goods
    B. Selling insurance
    C. Buying and selling securities
    D. Granting loans

15. One function of central bank is:
    A. Accepting deposits from the public
    B. Issuing currency
    C. Granting overdrafts
    D. Selling shares

16. Division of labour leads to:
    A. Job dissatisfaction
    B. Increase in cost
    C. Increase in production
    D. Increase in capital

17. A document issued by the seller to demand payment is a:
    A. Invoice
    B. Quotation
    C. Receipt
    D. Debit note

18. Which of the following types of insurance is compulsory in Nigeria?
    A. Marine insurance
    B. Fire insurance
    C. Life assurance
    D. Motor vehicle insurance

19. Which of the following is used in international trade?
    A. Debit note
    B. Promissory note
    C. Bill of lading
    D. Cash register

20. A letter of enquiry is mainly used to:
    A. Place an order
    B. Demand payment
    C. Request information
    D. Lodge a complaint

21. The merging of two or more firms at the same level of production is called:
    A. Conglomerate merger
    B. Vertical merger
    C. Horizontal merger
    D. Organic growth

22. The initials CWO on a payment document mean:
    A. Cash With Order
    B. Cash Without Order
    C. Cash Waiting Order
    D. Cost With Order

23. Which of these is a money market instrument?
    A. Treasury bill
    B. Bond
    C. Share
    D. Mortgage

24. An example of consumer protection agency in Nigeria is:
    A. EFCC
    B. NDLEA
    C. CPC
    D. INEC

25. Which of the following cannot be traded on the stock exchange?
    A. Shares
    B. Bonds
    C. Debentures
    D. Savings

26. In business communication, the process begins with:
    A. Feedback
    B. Receiver
    C. Message
    D. Sender

27. An overdraft is a facility that allows a customer to:
    A. Deposit more than his balance
    B. Withdraw more than his balance
    C. Save regularly
    D. Invest in shares

28. A bank draft is:
    A. A written instruction by the customer
    B. A payment order by a bank on another bank
    C. A document issued by the stock exchange
    D. An overdraft instrument

29. Trade associations are formed to:
    A. Promote competition
    B. Protect the interest of businesses in a trade
    C. Give loans to businesses
    D. Pay government taxes

30. A cheque that is post-dated is:
    A. Already paid
    B. Cancelled
    C. Dated in the future
    D. Invalid

SECTION B – THEORY QUESTIONS (70 marks)

Answer all questions. Write legibly and support your answers with examples where necessary.

1. Define commerce and list four major divisions of commerce.

2. State five differences between a sole trader and a public limited company.

3. Discuss five functions of a wholesaler.

4. List and explain four types of credit used in business.

5. Describe five features of a public corporation.

6. Differentiate between a central bank and a commercial bank using four points.

7. State and explain four types of business mergers.

8. List five documents used in home trade and explain any three.

9. Discuss five roles of advertising in commerce.

10. Explain five characteristics of the Nigerian stock exchange.