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 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 efforts of consumer to protect themselves against unfair practices of businessmen is
A. strike
B. consumeris,
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
8.In a law of contract a counter offer operates as
A. an acceptance
B. consensus of idem
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 occupation are classified under the extractive industry
i. Cattle rearing, lumbering and farming
ii. Mining, quarry and hunting
iii, ship building, road construction and iron bending
iv. singing, dancing and tailoring
A. I and II
B. I, II and IV only
C. I and II only
D II,III and IV only
12. Which of the following abbreviation allows the drawer of a document to correct any error
A. C.I.F
B. I.O.U
C. C.W.O
D. E& O.E
Use the following information relating to Bala Enterprises to answer question 13 to 15
|
|
|
|
Premises |
32,000 |
|
Motor Vehicle |
15,000 |
|
Debtors |
15,000 |
|
Stock |
20,000 |
|
Creditors |
10,000 |
13. The value of current assets is
A. N35,000
B. N32,000
C. N25,000
D. N10,000
14. What is the value of the working capital?
A.N47,000
B. N35,000
C. N25,000
D. N10,000
15. The value of fixed assets is
A. N72,000
B. N47,000
C. N35,000
D. N25,000
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 show 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. proforma invoice
C. letter of credit
D. Credit note
18.Fidelity guarantee insurance is a cover against loss arising from
A. trade cost
B personal accident
C. Dishonest staff
D. fire disaster
19. When a cheque is paid by the 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 is a function of the
A. employee
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. decrease 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 an employee
C. insanity of a partner
D. resignation of an employee
27. A document that contain 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 organisation formed mainly by traders and manufacturers to cater for inter 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
C. commercial 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 determine 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 of work done
32. Which of the following fuctions is not performed by trade associations?
A. Research and development
B. Standardization of product
C. credit facilities
D. Technical information
33, The fee charged on postal order by 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 consumers as the king who must be satisfied is the main emphasis of
A. market research
B. marketing mix
C. comsumerism
D. marketing concept
38. Which of the following is a function of marketing?
A. branding
B. Planning
C. organizing
D. manufacturing
39. A component of marketing mix that is put in a consumable form to satisfy the consumer is
A. product
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. term 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
A. fight the guilty nation in time of war
B. eliminate drug addiction among member countries
C. eliminate all tariffs and quotas among members countries
D. fight against child abuse 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. If a 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 goods and services
A. reach the final user
B. are used in manufacturing
C. are packed and labelled
D. are sold to the middleman
49. The process of converting a non-profit making organization to 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