SSCE MAY/JUNE COMMERCE OBJECTIVE 2011
1. When the government gives up its ownership and control of a business to individuals this is known as
A. nationalization
B. commercialization
C. privatization
D. indigenization
2. The reward received by a party in a contract agreement is known as
A. consideration.
B. acceptance.
C. offer.
D. warranty.
3. Payment to a ship owner for carrying one’s cargo is
A. demurrage.
B. fare.
C. dock due.
D. freight.
4. Which of the following is not pre-sale service?
A. Repair and maintenance work
B. Providing detailed information about the goods to be purchased
C. Demonstrating the use and performance of the products to be sold
D. Setting up facilities for storing the product to be bought
5. Which of the following is used to inform the addressee that he has a registered parcel for collection?
A. Counterfoil
B. Express label
C. Slip
D. Telegram
6. The cooperative society that performs a combination of the functions of other types of cooperatives is called
A. consumer cooperative.
B. multipurpose cooperative.
C. producer cooperative.
D. thrift and credit cooperative.
7. That portion of the share capital which the company has asked the shareholders to pay for is known as
A. authorized capital.
B. paid-up capital.
C. issued capital. .
D. called-up capital.
8. One of the advantages of air transport over other forms of transport is
A. safety.
B. flexibility.
C. cost.
D. speed.
9. Which of the following are elements of a valid contract?
A. Discharge and performance
B. Offer and acceptance
C. Age and maturity
D. Promise and capacity
10. The last link in the channel of distribution is the
A. retailer.
B. consumer.
C. wholesaler.
D. producer
11. Taxes on imported foreign goods are also known as
A. excise duties
B. tariffs.
C. ad valorem taxes.
D. dock dues.
12. If Karamo who lives in The Gambia imports goods from Senegal and later sells them in Guinea Bissau; Karamo is engaged in
A. multi-lateral trade.
B. counter trade.
C. barter trade.
D. entrepot trade.
13. Manufacturers may sell goods directly to consumers where goods are
I. made to customers’ specification.
II. advertised by the manufacturer. III. perishable
IV. highly technical. V. widely demnded
14. Which of the following is a means of payment?
A. I.O.U
B. Postal order
C. Promissory note
D. C.I.F
15. Shipping services rendered by Nigeria to The Gambia would be classified by The Gambia as
A. invisible imports.
B. invisible exports.
C. visible imports.
D. visible exports.
16. The main divisions of production are
A. industry, direct and indirect services B. extraction, manufacturing and construction.
C. industry, commerce and direct services. D. industry, commerce and trading.
Use the Information below to answer questions 17 to 19
A trader’s turnover was D36,000. Purchases was D28,000. The opening stock was 132,000 and the closing stock D3,000
17. What is the cost of goods sold?
A. D28,000
B. D27.000
C. D8,000
D5,000
18. The average stock is
A. D5,000
B. D3,000
C. D2.500
D. D2,000
19. What is the rate of turnover?
A. 13.5 times B. 10.8 times C. 9 times D. 5.4 times
20. In marine insurance when a particular cargo is thrown into the sea in order to prevent the ship from sinking, the type of marine loss is
A. particular average loss.
B. general average loss.
C. total average loss.
D. constructive average loss.
21. The turnover of a trader is the
A. number of times the stock is sold. B. total sales made during a period.
C. profit made during the period. D. total purchases made during the period.
22. The total assets of a business less its total liability is known as
A. capital owned B. share capital C. issued capital D. working capital
23. A document issued to the public by a company to advertise its share is known as
A. prospectus.
B. tender.
C. share certificate.
D. trading certificate.
24. An overdraft is the
A. amount permitted to be withdrawn in excess of one’s deposit.
B. excessive cash withdrawn by commercial banks from the central bank.
C. credit balance standing in the name of a customer.
D. special deposit made by commercial banks.
25. Which of the following is not a principle of insurance?
A. Insurable interest
B. Subrogation
C. Surrender value
D. Proximate cause
26. The par value of a share is also known as its
A. premium price
B. market price
C. discount price
D. nominal price
27. A cheque dated 15th March, 2012 will become stale on
A. 16th June, 2012.
B. 16th July, 2012.
C. 16th August, 2012.
D. 16th September, 2012.
28. Banks settle their indebtedness in the
A. discount house
B. stock exchange market
C. commercial bank.
D. clearing house.
29. Which of the following distinguishes home trade from foreign trade?
A. Payments are easily arranged
B. Taxes are levied
C. Goods have to be warehoused
D. Middlemen are not required
30. Before the advent of legal tender and credit instrument, which of the following was used as a medium of exchange?
A. Currency notes
B. Cowries
C. Cheques
D. Bankdrafts
31. When C. I. F. is quoted on an invoice, it means that the price includes the
A. cost of the goods only.
B. cost of insurance only.
C. cost of carriage only.
D. cost, insurance and carriage.
32. Encouraging a high quality of members’ products through the circulation of research information is a function of
A. Manufacturers Association. .
B. Trade Union
C. Employers’ Association.
D. Consumers’ Association.
33. A voluntary association of business executives within a locality is known as
A. Trade Union.
B. Consumers’ Association.
C. Chamber of commerce.
D. Trade Association.
34. Which of the following-is not a function of the Ports Authority?
A. Providing facilities for loading and off-loading of vessels
B. Collecting dock dues
C. Providing enough ships for the country
D. Dredging of harbours
35. Using symbols, letters, name or combination of these by a company to distinguish its products is
A. product cycle.
B. marketing mix.
C. trade mark
D. market segmentation.
36. Trade as a division of commerce is usually classified into
A. retail and whole sale B. import and export C. home and foreign
D. visible and invisible
37. The box marked ‘X’ stands for
A. Indirect services.
B. Industry
C. Occupation.
D Aids to trade
38. The box marked ‘Y’ stands for
A. Wholesale
B. Indirect services
C. Aids to trade.
D. Foreign trade
39. The box marked ‘Z’ stands for
A. Warehousing.
B. Home trade
C. Foreign trade.
D. Marketing
40. Liquid capital in a business means the
A. movable assets of the business.
B. authorised capital.
C. issued capital.
D. assets easily convertible to cash.
41. The “relationship which subsists between two or more persons carrying on a business with a view to profit” is
A. cooperative society.
B. partnership.
C. public limited company.
D. credit union.
42. ‘Rights issue is the
A. individual’s right to be issued shares on subscription.
B. right of shareholders to vote on issues.
C. preferential right to returns on shares.
D. shares offered to existing shareholders at a cheaper price.
43. In limited partnership the partners’
A. capital is limited.
B. liability is limited.
C. participation is unlimited.
D. ownership is unlimited.
44. Which of the following pieces of information would be found in a typical debit note?
A. Customer code B. Date of invoice C. Brief reason for the debit D. E & O. E
45. The completion of the production process by grading and branding of goods is a function of the
A. transporter. B. wholesaler C. retailer. D. consumer.
46. The development of commerce was encouraged by the desire to
A. get goods and services of others. B. work with others.
C. create wealth for the nation. D. satisfy all wants and needs.
47. Which of the following countries is not a member of the Lake Chad Basin Commission?
A. Nigeria B. Chad C. Gabon D. Cameroun
48. A false statement made by one party with an intention of inducing the other party to enter into a contract with him is known as
A. misrepresentation B. legal capacity. C. consensus ad idem. D. consideration.
49. The essence of adopting the marketing concept by a firm is the recognition that goods and services have no value unless they are
A. desirable to customers. B. company oriented. C. beautifully packaged.
D. profit oriented.
50. When consumers engage inactions that express dissatisfaction with the quantity, price and quality of goods available, such action is termed.
A. Consumer behavior
B. Consumerism
C. Consumer education
D. Consumer orientation.