COMMERCE

1. The type of activity which turns processed raw materials into consumer and industrial goods is described as

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2 points

(A) extractive

(B) manufacturing

(C) constructive

(D) processing

2. A company earned a total revenue of =N=108 million with a total cost of =N=91 million in 1991. If it paid 45% tax on its gross profit for that year, determine its net profit.

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2 points

(A) =N= 24.65 million

(B) =N= 17.00 million

(C) =N= 9.35 million

(D) =N= 7.65 million

3. The production process that combines two or more raw materials into one end product is
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2 points

(A) conditioning

(B) blending

(C) merging

(D) synthesis

4. Sole enterprise may flourish best in

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2 points

(A) a mining business

(B) a retailing business

(C) an oil exploration business

(C) a car assembly business

5. A demonstration of social responsibility by a business is the payment of
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2 points

(A) taxes to government

(B) dividends to shareholders

(C) interest on loans

(D) premium for insurance

6. NACCIMA stands for

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2 points

(A) Nigerian-American Centre for Culture, Industries, Mines and Arts

(B) Nigerian Association for Culture, Civics, Industries, Minerals and Arts

(C) National Agency for Culture, Civilization, Investments, Manufacturing and Agriculture

(D) Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture

7. What are the factors with which commercial undertakings can be distinguished?

I Size of the undertakings
II Profits generated
III forms of ownership
IV Location of the undertakings

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2 points

(A) I and II only

(B) I and III only

(C) II and III only

(D) III and IV only

8. Which of the following is the most important business resource?

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2 points

(A) money

(B) management

(C) materials

(D) manpower

9. The nominal value of a share as specified in the Memorandum of Association and the share certificate is the

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2 points

(A) discounted value

(B) stock value

(C) face value

(D) par value

10. The use of computers in modern banking industry is a reflection of

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2 points

(A) competitive development

(B) scientific development

(C) economic development

(D) technological development

11. A public limited company can raise long-term loans through
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2 points

(A) the capital market

(B) the money market

(C) bank overdrafts

(D) discount houses

12. The breaking down of a market into separate and identifiable elements each with its own special product requirements is known as market
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2 points

(A) differentiation

(B) segmentation

(C) penetration

(D) identification

13. Which of the following gives the correct order in which the listed documents are used?
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2 points

(A) debit note, order, delivery note, invoice and statement

(B) order, delivery note, invoice, debit note and statement

(C) statement, order, invoice, delivery note and debit note

(D) invoice, order, statement, debit note and delivery note

14. Freight note is a document
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2 points

(A) used by government to transport goods from one country to another

(B) issued by a shipping company giving details of charges

(C) used for payment for imported goods

(D) given by an importer to pay for goods at a future period

15. Motivation is an essential element in management because it
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2 points

(A) leads to the improvement of staff welfare

(B) encourages individuals to work towards achieving the organisation’s objectives

(C) reduces friction among the organisation’s objectives

(D) helps to eliminate industrial disharmony

16. The practice by which an insurance company accepts a very large risk and later shares it with other insurance companies is called
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2 points

(A) subrogation

(B) contribution

(C) re-insurance

(D) indemnity

17. The most important piece of legislation governing business and commercial activities in Nigeria currently is the
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2 points

(A) Companies Decree, 1968

(B) Trade Disputes Decree, 1976

(C) Companies and Allied Matters Decree, 1990

(D) Banks and Other Financial Institutions Decree, 1991

18. If a firm’s turnover is =N=15,000 and the cost of goods sold is =N= 10,000, what is the percentage of
gross profit on sales?
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2 points

(A) 23.3%

(B) 33.3%

(C) 50.0%

(D) 66.6%

19. The activities of consumers association in Nigeria have not been effective because
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2 points

(A) the consumers are too many

(B) the government is not favourably disposed towards consumerism

(C) there is poor enlightenment about consumer rights

(D) the consumers have no medium for expressing their feelings.

20. Shares can be forfeited for

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2 points

(A) non-payment of any due to the company

(B) non-attending three annual general meetings consecutively

(C) non-payment of call money

(D) violent activities at the Annual General Meetings