Document

1. Activities which facilitate commerce include

(a) engaging youths in environmental sanitation
(b) funding political campaigns.
(c) Providing recreational facilities in communities.
(d) Improving road networks.

2. A document through which invitation is extended to the public to subscribe to shares is

(a) articles of association
(b) prospectus
(c) memorandum of association
(d) quotation.

3. One example of a product of the construction industry is a

(a) chair
(b) bag of cement
(c) piece of cloth
(d) television.

4. A person authorized to sell the property of a company in a winding up is

(a) an auctioneer
(b) an agent
(c) a liquidator
(d) a bailee

See pages for figure

Use the diagram below to answer questions 5 to 7.
5. The space marked A represents

(a) trading
(b) industry
(c) occupation
(d) advertising

6. The space marked X represents

(a) industry
(b) foreign trade
(c) home trade
(d) production

7. What does the space marked M represent?

(a) Quarrying
(b) Manufacturing
(c) Agriculture
(d) trade

8. The purchase and sale of goods over electronic system is

(a) E-payment
(b) E-commerce
(c) E-mail
(d) E-transfer

9. One disadvantage of a sole proprietorship is

(a) quick decision making
(b) unlimited liability.
(c) pride of ownership.
(d) unlimited source of capital

10. Which of the following is a source of short-term finance to a business?

(a) Hire purchase
(b) Overdraft
(c) Lease
(d) Debenture

11. The portion of share capital which the company has asked shareholders to pay is

(a) called-up capital
(b) authorized capital
(c) paid-up capital
(d) unpaid capital

12. Multilateral trade is carried out

(a) between two countries only
(b) within many countries
(c) among many countries
(d) between neighbouring countries only.

13. An association of businesses engaged In both trade and industry is a

(a) co-operative society
(b) trade union
(c) trust fund
(d)chamber of commerce

14. Which of the following statements is true of a debenture?

(a) Its holders receive interest
(b) It forms part of company’s authorized capital
(c) Its holders are co-owners of the company
(d) Its holders control the company.

15.The path through which a product moves from the manufacturer to the consumer is a

(a) Channel Of communication
(b) line of production
(c) means Of transportation
(d) channel of distribution

16. If the opening stock of Ali Ltd is N40,OOO, cost Of goods sold is N48,OOO and closing stock is , its rate of turnover will be

(a) 1.2 times
(b) 1.5 times
(c) 2.0 times
(d) 7.5 times

17. A business which requires a certificate of trading in order to commence operation is a

(a) co-operative society
(b) private company
(c) sole proprietorship
(d) public company

18. Exchange of goods in international market which does not involve the use of money is

(a) barter trade
(b) entrepot trade
(c) counter trade
(d) bilateral trade

19. Which of the following features is not associated with a chamber of commerce? It is

(a) Democratically administered
(b) an independent association
(c) open only to entrepreneurs
(d) a voluntary association

20. The reason for sending a proforma invoice to a potential customer is that it is

(a) an indication of the seller’* willingness to grant credit.
(b) a polite way of telling the customer to return the goods
(c) an invitation to the buyer to buy on hire purchase.
(d) a polite way of refusing to sell on credit.

21. The insurance policy taken to cover dishonesty of accounts personnel of an organization is

(a) employer’s liability
(b) fidelity guarantee
(c) life endowment
(d) marine insurance

22. Which of the following documents is used when goods are being sent by a common carrier?

(a) Delivery note
(b) Consignment note
(c) Advice note
(d) Credit note

23. A put option in the stock exchange is an option

(a) to sell
(b) not to sell
(c) to buy
(d) not to buy

24. The functions of money do not include

(a) store of value
(b) medium of exchange
(c) double coincidence of wants
(d) means of deferred payment

25. A document of title to goods written by the ship owner, specifying that certain goods are being conveyed in the ship is a

(a)bill of sale
(b) bill of sight
(c) bill of entry
(d) bill of lading

26. Informative advertising is aimed at

(a) giving advice on the use of a product
(b) influencing customers to buy a product.
(c) giving gifts to attract customers
(d) encouraging specific customers to buy a product.

27. A cheap means of carrying bulky goods over long distance is by

(a) rail
(b) road
(c) air
(d) pipeline

28. A contract terminated by the occurrence of an event which makes performance impossible is discharge by

(a) breach
(b) agreement
(c) frustration
(d) performance

29. An individual employed to act on behalf of another within a specified guideline is

(a) a jobber
(b) an agent
(c) a broker
(d) a distributor.

30. Which of the following is not a component of the marketing mix?

(a) Price
(b) place
(c) population
(d) Product

31. A method of buying in anticipation of price fluctuation in the commodity market is

(a) Speculation
(b) arbitrage
(c) contango
(d) hedging

32, particular A shipping cargo document for a specified detailing voyage the charges is

(a) dock for carrying warrant
(b) freight note
(c) bill of lading
(d) mate’s receipt

33. Commercial agents who are authorized to keep goods until they are sold are

(a) Factors
(b) distributors
(c) brokers
(d) auctioneers

34. An advertisement method whose objective is to convince customers to buy a product is

(a) informative advertisement
(b) persuasive advertisement
(c) competitive advertisement
(d) mass advertisement

35. A government legislation which ensures that quality goods and services are available to customers is

(a) Hire purchase Act
(b) Copyright Act
(c) Price control Act
(d) Standard Organization Act.

36. A bank draft is a cheque draw by a bank on

(a) another bank
(b) itself
(c) creditors.
(d) Customers’ deposits

37. A company is quoted on the stock exchange when its shared are

(a) Put under private placement
(b) not for sale to the public.
(c) Listed for sale on the exchange.
(d) Owned by the government

38. Which of the following functions is not performed by the export promotion council?

(a) Prevention of importation of harmful goods
(b) Provision of credit facilities to exporters
(c) Provision of technical advice to exporters
(d) Creation of export free Zones

39. Activities undertaken to create awareness of a product by giving out samples or gifts is

(a) Marketing mix
(b) marketing concepts
(c) window display
(d) sales promotion

40. An advantage of privatizing a firm is that it

(a) becomes more efficient
(b) sells good at low prices.
(c) Employs more workers.
(d) Attracts more customers.

41. The transfer of authority by a superior officer to his subordinate in an organization is

(a) Controlling
(b) decentralization
(c) delegation
(d) directing

42. The provision of scholarships by a firm to needy students is part of its

(a) Political responsibility
(b) economic responsibility
(c) social responsibility
(d) legal responsibility

43. How many countries form ECOWAS?

(a) 17
(b) 16
(c) 15
(d) 14

44. Which of the following .is a modern means of communication?

(a) Grape vine
(b) E-mail
(c) whistles
(d) Town crier

45. A system of issuing new shared to selected investors instead of the general public is

(a) Public offer
(b) Issue by tender
(c) offer for sale
(d) private placement

46. One of the aims of the European Union is to

(a) ease trade among member countries.
(b) Enhance better trade with Africa.
(c) enhance free trade with America.
(d) offer financial assistance to poor countries

47. The purpose of commercialization is to

(a) Encourage the participation of the private sector.
(b) make state-owned firms more efficient.
(c) Encourage the flow of foreign capital
(d) enables state-owned firms pay tax.

48. The time allowed for loading and unloading a ship at the harbour is

(a) Demurrage
(b) tenure
(c) lay days
(d) dead freight.

49. Interbank indebtedness is settled at the

(a) clearing house
(b) money market
(c) discount house
(d) stock exchange

50. The concern of a marketing manager whose company has adopted the marketing concept is to

(a) Recruit more salesmen
(b) make maximum profit.
(c) Identify and satisfy customers needs
(d) maintain the company’s share of the market.