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1. The practice of giving a particular name to a product by a manufacturer is

A. branding
B. Standardization
C. publicity
D. advertising

2. An extra commission paid to an agent who guarantees credit sales made by him is del-credere

B. guarantor8 fee
C. jobber’s turn
D. brokerage.

3. A professional in insurance who evaluates the level of loss claims is an

A. adjuster
B. assessor
C. underwriter
D. actuary.

4. The insurance services rendered to a foreign shipping company are treated as

A. invisible export
B. invisible import
C. visible export
D. balance of trade.

5. Dividing the market fora product according to potential buyers who have common characteristics is

A market analysis
B. market penetration
C. market segmentation
D. a market research.

6. Which of the following aids to trade facilitates production ahead of demand?

A insurance
B. transportation
C. advertising
D. warehousing.

7. When a government acquires business enterprise formerly owned by individuals, it is termed

A. commercialization
B. indigenization
C. privatization
D. nationalization.

8. How many countries make up the River Niger Basin Commission?

A. 16
B. 12
C. 10
D. 9

9. Which of the following means of payment makes the bank both the drawer and drawee?

A. Standing order
B. Bill of exchange
C. Bank draft
D. Open cheque.

10. An association that protects the interest of members in the same line of business is a

A. Consumer Association
B. Trade Union
C. Trade Association
D. Chamber of Commerce.

Use the following information to answer questions 11 to 13.
Bamidele Co. ltd has authorized capital of 40,000,000 ordinary shares of N4 each. Shares issues and fully paid are N25,000,000

11. The value of Bamidele Co. Ltd’s authorized share capital is

A. N 160,000,000
B. N100,000,000
C. N65, 000,000
D. N40,000,000

12. The value of the issued capital of the company is

A. N 160,000,000
B. N100,000,000
C. N60, 000,000
D. N15,000,000

13. The unissued capital amounts to A.

A. N 160,000,000
B. N60,000,000
C. N40, 000,000
D. N15,000,000

14. Which of. the following aids to trade is used to stimulate demand for goods?

A. Banking
B. Transport
C. Insurance
D. Advertising.

15. The term consumer sovereignty means that the

A. seller is the king
B. product is supreme
C. buyer is the king
D. producer is the king.

16. Which of the following activities is classified under extractive industry?

A. Exploration of minerals
B. Construction of roads
C. Canning of tomato purees
D. assembling of cars See pages for table

Use the information below to answer questions 17 and l8.

BYX Enterprise has the following balances at the end of March 2010: Opening stock D6,OOO Purchases D23,OOO Salaries and wages D12,OOO Closing stock D8,OOO Sales D30,OOO 17. Calculate the gross profit of BYX Enterprise.

A. DI 3,000
B. D9,OOO
C. D5,OOO
D. D1,OOO.

18. What is the rate of turnover of BYX Enterprise?

A. 5.0 times
B. 3.5 times
C. 3.0 times
D. 1.5 times

19. Which of the following workers is engaged in construction occupation?

A. Mason
B. Shop Assistant
C. Farmer
D. Train Drive

20. A cheque which the bank refused to pay because the drawer had insufficient funds in his account is bounced cheque

A. a bounced cheque
B. a bearer cheque
C. a crossed cheque
D. an order cheque.

21. Which of the following is a function of the retailer to the wholesaler?

A. providing after sales service
B. providing information on market trends
C. sales of variety of goods
D. sales of goods in smaller quantity

22. The term utmost good faith in insurance means

A. both the insured and insurer must disclose all information
B. only the insurer must disclose all information
C. the beneficiary must disclose all information
D. only the insured must disclose all information.

23. Which Of the following business units enjoys government subsidies?

A. private limited company
B. Limited partnership
C. public limited company
D. public corporation.

24. Duty drawback refers to duties paid on

A. exported goods produced with local content
B.re-exported goods previously imported
C. imported goods for sales locally
D. locally manufactured goods for sales locally

25, The capital that is used in the day-to-day running of a business is

A. nominal capital
B. working capital
C. paid up capital
D. authorized capital

26. Which Of the following is Classified under current asset?

A. Machinery
B. motor vehicle
C. stock
D. fittings

27. The reduction in value of a country’s currency in relation to others is

A.redenomination
B. devaluation
C. inflation
D. deflation

28. Retail outlets which sell from specialized vans are called

A. supermarkets
B. multiple shops
C. mail order firms
D. mobile shops

29. Which of the following is an aspect of marketing concept?

A. product differentiation
B. sales orientation
C. consumer orientation
D. price differentiation

30. The practice of selling goods in foreign markets at a price lower than the cost price is

A. fair trading
B. under invoicing
C. hedging
D. dumping

31. A cheque made payable to a named person is

A. a crossed cheque
B. a certified cheque
C. an order cheque
D. a confirmed cheque

32. A house insured against damage by flood was burnt down and the owner had no claim. Which of the following principles prevented him from making a claim?

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

33. The market for short term capital is called

A. commodity market
B. discount market
C. money market
D. stock market

34 Which Of the following Principles stipulates that the insured must be in a position to suffer financial loss?

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

35. When shares are sold ‘ex-div’ it means the

A. buyer is entitled to the next dividend
B. shares are sold at par
C. shares are sold above par
D. seller has right to the next dividend

36. Turnover could be increased by

A. increasing prices and products differentiation
B. advertising and cutting prices
C. refusing credit and customer services
D. increasing the mark up and margin

37. commerce started as a result of

A. speculation
B. consumption
C. specialization
D. nationalization

38. Which Of the following is used for making payments to many people in a single cheque?

A. debit transfer
B. certified cheque
C. bank draft
D. credit transfer

39 Equity interest in a company is represented by

A. preference share
B. dividend
C. debenture
D. ordinary shares

40. When two insurers are liable under a given common policy, the principle of insurance that applies is

A. indemnity
B. subrogation
C. proximate cause
D. contribution

41. All activities aimed at creation of a good image for an organization are referred to as

A. market segmentation
B. market research
C. public relation
D. consumer orientation

42. Which of the following is a disadvantage of foreign trade?

A. it encourages dumping
B. it widens the world market
C. it encourages specialization
D. it provides variety of good

43. Study to discover consumers’ preferences and needs is called

A. market segmentation
B. consumer orientation
C. market research
D. market mix

44. Which of the following is a disadvantage of retailing?

A. Selling on credit
B. lower prices of goods
C. selling in smaller quantities
D. location at convenient places

45. A private limited liability company differs from a public limited liability company because it

A. does not issue its shares to the public
B. as a separate entity
C. as many directors
D. is a going concern

46. A tax charged in proportion to the value of imported goods is

A. specific duty
B. ad valorem duty
C. custom duty
D. excise duty

47. Which of the following is a reason for the failure Of public corporations

A. legal requirements
B. inadequate funding
C. political stability
D. lack of competition

48. The factor that is not considered when determining the means of transport suitable for cargo is

A. size
B. weight
C. manufacturer
D. perishability

49. Which of the following is a document of title to goods

A. bill of exchange
B. bill of entry
C. letter of hypOthecation
D. bill lading

50. The fee paid for transporting goods by ship is

A. fare
B. freight
C. demurrage
D. charges