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1. A document used as a polite way of refusing credit is

A. advice note
B. quotation
C. Proformance invoice
D. invoice

2. invoice carriage forward on an invoice means

A. carriage will be paid next time
B. carriage will be paid by seller
C. carriage will be paid by buyer
D. carriage had been paid

3. Which of the following is not contained in a consignment note?

A. Name of the buyer
B. Name of the seller
C. Description of goods
D. Cost of goods

4-5 See pages for table 4. The return on capital employed is

A. 25%
B. 20%
C. 15%
D. 5%

5.Which Shares of the following Refrigerator will be suitable Shoes for hire purchase sale?

A. Shares
B. Refrigerator
C. Shoes
D. Textile

6. A person who earns extra commission for guaranteeing debts is a

A. factor
B. broker
C. commission agent
D. del-credere agent

7. An insurance principle that prevents a person from insuring what he does not stand to lose financially if the insured risk occur is

A. indemnity
B. insurable interest
C. proximate cause
D. subrogation

8. Voyage policy insurance is associated with

A. fire
B. life
C. marine
D. burglary

9. If a share is quoted ex-div, it means the new buyer would

A. get the next dividend
B. not get the next dividend
C. get a fixed dividend
D. not get any dividend

10. Which of the following is the function of commerce?

A. The conversion of raw materials into semi-finished products
B. The conversion of semi-finished products into end products
C. Provision of services to customers
D. The exchange and distribution of goods and services.

11. Who among the following does not render direct service?

A. Teacher
B. Musician
C. Doctor
D. Retailer.

12. The last link in the production process is the

A. transporter
B. wholesaler
C. consumer
D. retailer.

13. The Board of Directors of Public corporation is appointed by the

A. government
B. shareholders
C. management
D. employees

14. The object clause of a limited liability company is stated in the

A. Memorandum of Association
B. Article of Association
C. Certificate of incorporation
D. Trading certificate

15. A market which deals in the purchase and sale of second-hand securities is the

A. Stock Exchange
B. Building Society
C. Shippers Council
D. Co-operative Society.

16. To endorse a cheque means to

A. write and sign one’s name at the back of the cheque
B. write “pay cash” on the cheque
C. cross the cheque
D. stop the payment of the cheque

17. An insurance policy that covers the body of the ship only is called

A. Haulage insurance
B. Voyage insurance
C. Hull insurance
D. Cargo insurance

18. Which of the following protects consumers against poor quality goods?

A. Chambers of Commerce
B. Standard Organization
C. Trade Association
D. Manufacturers Association

19. Mr. Biu has been paying the premium of a straight Life Assurance policy for several years. The surrender value of the policy if the amount that

A. would be paid to Mr. Biu if he should discontinue with the policy
B. would be paid to Mr. Biu’s beneficiaries if he dies
C. is paid annually to Mr. Biu to the insurance company
D. the amount Mr. Biu has paid plus interest

20. The use of current account in business iS convenient because

A. withdrawal can be made at any time
B. deposits earn higher interest
C. loans are always available
D. notices are necessary before withdrawals.

21. The cost of telephone conversation is determined by the

A. number of words spoken
B. person sending the message
C. Duration of the conversation
D. urgency of the message conveyed.

22. ‘Not negotiable’ on a cheque means

A. ownership can be transferred to the third party by mere delivery
B. the cheque can be paid over the counter on endorsement
C. the holder has no better title than the person who transfers it
D. ownership rests with the one who issued the cheque.

23. The type of transport a manufacturer will use will be influenced by

A type of sales
B. the tax on the goods
C. the customer’s age
D. nature of goods

24. A. contract made between a ship owner and a merchant for the carriage of cargo is
A. ships’ manifest
B. charter party
C. freight forward
D. cargo service

25. Advertising efforts geared towards a particular audience is known as

A. mass advertising
B. direct advertising
C. persuasive advertising
D. indirect advertising.

26. Trade fairs and exhibitions are media of

A sales promotion
B. customer service
C. market segmentation
D. advertising

27. The concept which says that a company’s production policy should be centered on the ultimate user of the product is known as

A. market segmentation
B. consumer sovereignty
C. marketing mix
D. marketing research

28. The various rights attached to different classes of shares are stated in the

A. articles of association
B. memorandum of association
C. balance sheet
D. prospectus

29. Which of the following is a feature of supermarkets?

A. Gives credit to reliable customers
B. Specializes in one line of product
C. Goods are on display with price tags
D. Does not have to provide storage facilities

30. Public enterprises are financed mainly by

A. the shareholders
B. commercial banks
C. government grants
D. mortgage banks

31. A personal computer on sale in an office equipment shop is an example of

A. stock
B. fixed asset
C. liability
D. fixed capital

32. The difference between current assets and current liabilities is

A. issued capital
B. capital employed
C. working capital
D. nominal capital

33. A ltd. Company has an authorized capital of 2,000 shares of D5 each. If the company issued 1,200,000 shares, its issued capital is

A.D10,000,000
B.D6,000,000
C. D4,000,000
D. D2, 000,000

34. The money used by Ola Maro and Co. Ltd. in running the day-today activities of the business is represented by

A. fixed capital
B. capital employed
C. paid-up capital
D. working capital

35. Which of the following is an advantage to a sole trader?

A. Guaranteed profit
B. Auick decision making
C. Unlimited liability
D. Buying on credit

36.A country’s deliberate decision to reduce the value of her currency is called

A. deregulation
B. inflation
C. devaluation
D. revaluation.

37. Which of the following is not a function of warehousing?

A. Creating scarcity of goods
B. stabilization of price
C. Production ahead of demand
D. Storage of goods.

38. Ad valorem duties are based on the

A. importance of the goods imported
B. value Of the goods imported
C. weight of the goods imported
D. nature of the goods imported.

39. A tariff refers to

A. fees imposed on contraband goods
B. fees paid on exports
C. taxes imposed on imported goods
D. taxes paid on home made goods.

40. The selling of goods in small units is normally performed by

A. chambers of commerce
B. Wholesalers
C. distributors
D. retailers.

41. Direct sales to consumers by manufacturers is a means of eliminating

A. wholesalers only
B. retailers only
C. middlemen
D. agent.

42. A physical restriction placed on the quantity of goods of that can be imported is

A. a ban
B. a quota
C. an excise duty
D. an import tax.

43. A country is said to achieve a trade surplus when total

A. visible exports exceeds total visible imports
B. invisible exports exceeds total invisible imports
C. visible exports exceeds total invisible imports
D. visible imports exceeds total visible exports.

44. The process of winding up a public limited company by a court order is known as

A. termination
B. dissolution
C. voluntary liquidation
D. compulsory liquidation.

45. a person who undertakes responsibility for forming a new company is

A. auditor
B. solicitor
C. registrar
D. promoter.

46. A term which describes the value of business connections made by a company over the years is known as

A. patent
B. copyright
C. goodwill
D. trade mark

47. The ancillary to trade which ensures that people have access to information pertaining to goods is

A. insurance
B. advertising
C. warehouse
D. banking.

48. the insurance principle of indemnity does not apply to

A. fire insurance
B. life assurance
C. burglary insurance
D. marine insurance.

49. Which of the following price quotations requires the buyer to take delivery at the manufacturer’s warehouse?

A. Ex-works
B. F.O.R.
C. F.O.B
D. F.A.S.

50. To take an insurance policy, an applicant must first complete a/an

A. proposal form
B. cover note
C. certificate of insurance
D. advice note.