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2016 questions

1. Where a number of insurance companies are liable under one Policy, the principle applicable is

(a) subrogation.
(b) contribution.
(c) indemnity.
(d) utmost good faith.

2. Buying and selling stocks in the stock exchange in anticipation of changes in the share prices is

(a) hedging.
(b) projection
(c) forecasting
(d) speculation.

3. Another term for a dishonoured cheque is

(a) an order cheque.
(b) a bounced cheque.
(c) a bearer cheque.
(d) an open cheque.

4. Which of the following is an example of life assurance?

(a) Third party policy
(b) Comprehensive policy
(c) Fidelity guarantee policy
(d) Endowment policy.

5. The main concern of commerce is to

(a) create wealth.
(b) buy and sell goods and services.
(c) exchange and distribute goods and services.
(d) satisfy all human wants.

6. The organized effort of consumers to protect themselves against the unfair practices of businessmen is

(a) strike
(b) consumerism.
(c) picketing.
(d) demonstration.

7. Which of the following legislations aims primarily at protection of consumers

(a) Law of Contract.
(b) Trade Description Act.
(c) Company’s Act.
(d) Partnership Act.

Premises 32,000 Motor vehicle 15,000 Debtors 15,000 Stock 20,000 Creditors 10,000 8. In a law of contract a counter offer operates as

(a) an acceptance.
(b) consensus adidem
(c) a rejection
(d) a contract

9. An economic policy which encourages government ownership of business is called

(a) privatization
(b) Nationalization.
(c) Indigenization.
(d) Commercialization.

10. Lack of permanent record for the message receiver is a disadvantage of

(a) television.
(b) direct mail.
(c) catalogue
(d) magazine.

11. Which of the following occupations are classified under the extractive industry? cattle-rearing, lumbering and farming; ii. mining, quarrying and hunting; iii. ship building, road construction, and iron bending; iv. singing, dancing and tailoring.

(a) i and iii only
(b) i, ii and iv only
(c) i and ii only
(d) ii, iii ahd iv only

12. Which of the following abbreviations allows the drawer of a document to correct any error?

(a) C. l. F.
(b) l. O. U.
(c) C.W.O
(d) E & O.E
See pages for table

use the following information relating to Bala Enterprises to answer questions 13 to 15.

13. The value of current assets is

(a) N35,OOO
(b) N32,OOO
(c) N25,OOO
(d) NI O,OOO

14. What is the value of the working capital?

(a) N47,OOO
(b) N35,OOO
(c) N25,OOO
(d) N1O,OOO.

15. The value of fixed tax asset is

(a) N72,OOO
(b) N47,OOO
(c) N35,OOO
(d) N25,OOO.

16. A clean bill of lading is so called because

(a) it shows record of damaged goods.
(b) it is not a stained bill
(c) it is a document of authority
(d) it shows no record of damaged goods.

17. When an importer has been overcharged for goods supplied, the exporter issues him with a

(a) debit note.
(b) performance invoice
(c) letter of credit
(d) credit note

18. Fidelity guarantee insurance is a cover against loss arising from

(a) Trade debt.
(b) Personal accident.
(c) dishonest staff.
(d) fire disaster.

19. When a cheque is paid on a bank on which it is drawn, the cheque is

(a) discounted.
(b) credited.
(C) debited.
(d) cleared.

20. The process of buying, selling and distribution of goods and services is

(a) retail trade.
(b) commerce.
(C)marketing concept
(d) marketing
21. Risk bearing in business organization is a function of the

(a) employees.
(b) entrepreneur.
(c) customers.
(d) manager

22. The worth of a life assurance policy before its maturity date is

(a) residual value.
(b) surrender value.
(C)accrued value.
(d) assured value.

23. One disadvantage of advertising is that it

(a) could be misleading.
(b) decreases sales.
(c) reduces profit.
(d) causes over stocking.

24. The business unit that applies the principle of one man, one vote is

(a) Sole proprietorship.
(b) Partnership.
(c) Public company.
(d) Co-operative society.

25. The water Corporation is an example of

(a) Co-operative Society.
(b) Public Enterprise.
(c) Private Enterprise.
(d) Limited Company.

26. A partnership is dissolved due to

(a) liquidity of the firm.
(b) death of employee.
(c) insanity of partner.
(d) resignation of an employee.

27. A document that contains the relationship between the company and outsiders is

(a) Certificate of Incorporation
(b) Memorandum of Association
(c)Article of Association
(d) Certificate of Trading.

28. An organization formed mainly by traders and manufacturers to cater for interest of members is

(a) Trade Union
(b) Co-operative Society
(c) Trade Association
(d) Chamber of Commerce.

29. An insurance broker is involved in

(a) industrial occupation
(b) distributive occupation
(d) constructive occupation.

30. An agreement that is enforceable in law is

(a) a contract
(b) an offer
(c) an acceptance
(d) a consideration.

31. The size of an enterprise is determined by the

(a) number of customers of the enterprise
(b) length of the time the firm has been in operation
(c) amount of capital invested
(d) type ofwork done.

32. Which of the following functions is not performed by trade association?

(a) Research and development
(b) Standardization of product
(c) Credit facilitites
(d) Technical information.

33. The fees charged on postal order by the post office is

(a) interest
(b) brokerage
(c) poundage
(d) premium.

34. The document issued by a warehouse keeper for goods taken into the store is

(a) mate receipt
(b) bill of sight
(c)ship manifest
(d) dock warrant.

35. Which of the following is a verbal means of communication?

(a) Telex
(b) Express mail
(c) Business reply service
(d) Telephone.

36. The production of goods in anticipation of demand is made possible by

(a) Packaging
(b) Warehousing
(c) Branding
(d) Advertising.

37. Regarding the consumer as the King who must be satisfied is the main emphasis of

(a) marketing research
(b) marketing mix
(c) consumerism
(d) marketing concept.

38. Which of the following is a concept of marketing?

(a) Branding
(b) Planning
(c) Organising
(d) Manufacturing.

39. A component of marketing mix that is put in a consumable form to satisfy the consumer is

(a) Production
(b) promotion.
(c) place.
(d) price.

40. Goods become the property of the buyer on the transfer of liability and possession without immediate payment under the

(a) hire purchase agreement.
(b) credit sale agreement.
(c) auction sales agreement
(d) conditional sales agreement.

41. The value at which one country obtains another country’s currency is

(a) terms of trade.
(b) exchange rate.
(c)bank rate.
(d) terms of payment.

42. Specializing in the sale of one line of goods is the main feature of

(a) supermarkets.
(b) chain stores
(c) mail order firms.
(d) mobile shops.

43. One objective of the European Union is to

(a) fight the guilty nation in time of war.
(b) eliminate drug addiction. among member countries
(c) eliminate all tariffs and quotas among member countries.
(d) fight against child. abuse in member countries.

44. Which of the following persons is a part of a business internal environment?

(a) Employee.
(b) Supplier.
(c) creditor.
(d) Customer.

45. A person or a firm to whom a sum of money is owed is

(a) banker.
(b) guarantor.
(c) debtor.
(d) creditor.

46. A general tax which applies at each point of exchange of goods and services is

(a) a specific tax.
(b) an ad valorem tax.
(c)a value added tax.
(d) a direct tax.

47. Ifa business uses part of its profit to develop the area where it operates, the business is fulfilling its

(a) economic responsibility.
(b) marketing responsibility.
(c) social responsibility
(d) managerial responsibility.

48. Production ends when gods and services

(a) reach the final user
(b) are used for manufacturing.
(c)are packed and labelled.
(d) are sold to the middlemen.

49. The Process of converting a non-profit making organization to a profit-making business is

(a) indigenization.
(b) privatization
(c)deregulation
(d)commercialization

50 A distinctive symbol, title or design that readily identifies the company and its products is

(a) Patent right.
(b) Trade mark.
(c)trade name.
(d) Brand name.