WASSCE COMMERCE MAY/JUNE 2013 (SSCE WAEC MAY/JUNE 2013 COMMERCE)
1
A document used as a polite way of refusing credit is
A. advice note
B. quotation
C. proforma invoice
D. invoice
2
Carriage forward on an invoice means
A. carriage will be paid next time
B. carriage will be paid by seller
C. carriage will be paid by buyer
D. carriage has been paid
3
Which of the following will be suitable for hire purchase sale?
A. Shares
B. Refrigerator
C. Shoes
D. Textile
4
A person who earns extra commission for guaranteeing debts is a
A. factor
B. broker
C. commission agent
D. del-credere agent
5
An insurance principle that prevents a person from insuring what he does not stand to lose financially if the insured risk occurs is
A. indemnity
B. insurable interest
C. proximate cause
D. subrogation
6
Voyage policy insurance is associated with
A. fire
B. life
C. marine
D. burglary
7
If a share is quoted ex-div, it means the new buyer would
A. get the next dividend
B. not get the next dividend
C. get a fixed dividend
D. not get any dividend
8
Which of the following is not the function of commerce
A. the conversion of raw materials into semi-finished products
B. the conversion of semi-finished products into end products
C. Provision of services to customers
D. The exchange and distribution of goods and services
9
Who among the following does not render direct service?
A. Teacher
B. Musician
C. Doctor
D. Retailer
10
The last link in the production process is the
A. transporter
B. wholesaler
C. consumer
D. retailer
11
The Board of Directors of Public corporation is appointed by the
A. government
B. shareholders
C. management
D. employees
12
The object clause of a limited liability company is stated in the
A. Memorandum of Association
B. Article of Association
C. Certificate of Incorporation
D. Trading certificate
13
A market which deals in the purchase and sale of second hand securities is the
A. Stock Exchange
B. Building Society
C. Shippers Council
D. Co-operative
14
To endorse a cheque means to
A. write and sign one's name at the back of the cheque
B. write "pay cash" on the cheque
C. cross the cheque
D. stop the payment of the cheque
15
An insurance policy that covers the body of the ship only is called
A. Haulage insurance
B. Voyage insurance
C. Hull insurance
D. Cargo insurance
16
Mr Biu has been paying the premium of a straight Life Assurance policy for several years. The surrender value of the policy is the amount that
A. would be paid to mr Biu if he should discontinue with the policy
B. would be paid to mr Biu's beneficiary if he dies
C. is paid annually by mr Biu to the insurance company
D. the amount mr Biu has paid plus interest
17
Which of the following protects consumers against poor quality foods
A. Chambers of Commerce
B. Standard Organization
C. Trade Association
D. Manufacturers Association
18
The use of current account in business is convenient because
A. withdrawal can be made at any time
B. deposits earn higher interests
C. loans are always available
D. notices are necessary befor withdrawals
19
The cost of telephone conversation is determined by
A. number of words spoken
B. person sending the message
C. duration of the conversation
D. urgency of the message conveyed
20
"Not Negotiable" on a cheque means
A. ownership can be transferred to the third party by mere delivery
B. the cheque can be paid over the counter on endorsement
C. the holder has no better title than the person person who transfers it
D. ownership rests with the one who issued the cheque
21
The type of transport a manufacturer will use will be influenced by
A. type of sales
B. the tax on the goods
C. the customer's age
D. nature of the goods
22
A contract made between a ship owner and a merchant for the carriage of cargo is
A. ships' manifest
B. charter party
C. freight forward
D. cargo service
23
Advertising efforts geared towards a particular audience is known as
A. mass advertising
B. direct advertising
C. persuasive advertising
D. indirect advertising
24
Trade fairs and exhibitions are media of
A. sales promotion
B. customer service
C. market segmentation
D. advertising
25
The concept which says that a company's production policy should be centered on the ultimate user of the product is known as
A. market segmentation
B. consumer sovereignty
C. marketing mix
D. marketing research
26
The various rights attached to different classes of shares are stated in the
A. articles of association
B. memorandum of association
C. balance sheet
D. prospectus
27
Which of the following is a feature of supermarkets?
A. Gives credit to reliable customers
B. Specializes in one line of product
C. Goods are on display with price tags
D. Does not have to provide storage facilities
28
Public enterprises are financed mainly by
A. the shareholders
B. commercial banks
C. government grants
D. mortgage banks
29
A personal computer on sale in an office equipment shop is an example of
A. stock
B. fixed asset
C. liability
D. fixed capital
30
The difference between current assets and current liabilities is
A. Issued capital
B. capital employed
C. working capital
D. nominal capital
31
A Ltd. Company has an authorized capital of 2,000,000 shares of D5 each. If the company issued 1,200,000 shares, its issued capital is
A. D 10,0000,000
B. D6,000,000
C. D4,000,000
D. D2,000,000
32
The money issued by Ola Maro and Co Ltd. in running the day to day activities of the business is represented by
A. fixed capital
B. capital employed
C. paid-up capital
D. working capital
33
Which of the following is an advantage of a sole trader?
A. Guaranteed profit
B. Quick decision-making
C. Unlimited liabilty
D. Buying on credit
34
A person's deliberate decision to reduce the value of her currency is called
A. deregulation
B. inflation
C. devaluation
D. revaluation
35
Which of the following is not a function of warehousing
A. Creating security of goods
B. Stabilization of price
C. Production ahead of demand
D. Storage of goods
36
Ad valorem duties are based on the
A. importance of the goods imported
B. value of the goods imported
C. weight of the goods imported
D. nature of the goods imported
37
A tariff refers to
A. fees imposed on contraband goods
B. fees paid on exports
C. taxes imposed on imported goods
D. taxes paid on home-made goods
38
The selling of goods in small units is normally performed by
A. chambers of commerce
B. wholesalers
C. distributors
D. retailers
39
Direct sales to consumers by manufacturers is a means of eliminating
A. wholesalers only
B. retailers only
C. middlemen
D. agents
40
A physical restriction placed on the quantity of goods that can be imported is
A. a ban
B. a quota
C. an excise duty
D. an import tax
41
A country is said to achieve a trade surplus when total
A. visible exports exceed total visible imports
B. invisible exports exceed total invinsible imports
C. visible exports exceed total invisible imports
D. visible imports exceed total visible exports
42
The process of winding up a public limited company by a court order is known as
A. termination
B. dissolution
C. voluntary liquidation
D. compulsory liquidation
43
A person who undertakes responsibility for forming a new company is
A. auditor
B. solicitor
C. registrar
D. promoter
44
A term which describes the value of business connections made by a company over the years is known as
A. patent
B. copyright
C. goodwill
D. trade mark
45
The ancillary to trade which ensures that people have access to information pertaining to goods is
A. insurance
B. advertising
C. warehousing
D. banking
46
The insurance principle of indemnity does not apply to
A. fire insurance
B. life assurance
C. burglary insurance
D. marine insurance
47
Which of the following price quotations requires the buyer to take delivery at the manufacturer's warehouse?
A. Ex-works
B. F.O.R
C. F.O.B
D. D.F.A.S
48
To take an insurance policy, an applicant must first complete a/an
A. proposal form
B. cover note
C. certificate of insurance
D. advice note