Commerce Exam Questions For SS1 Third Term
Commerce Exam Questions For SS1 Third Term
Commerce Exam Questions For SS1 Third Term
SECTION A
1. The process of buying, selling and distribution of goods and services is
known as (a) retail trade (b) commerce (c) marketing concept (d)
marketing mix (e) wholesale trade
4. Production ends when goods (a) and services are used by the producer
(b)are packed and labeled (c) are sold in the market (d) and services
reached the final user (e) are advertised to be consumed
5. The assured is the (a) insurance company (b) insurance company’s client
(c)insurance broker (d) insurance agent (e) insurance manager
7. If a business man import stock fish with a view to export them to other
countries, this form of trade is known as (a) invisible trade (b) entrepot
trade (c) export trade (d) import trade (e) bilateral trade
8. A deficit in the balance of trade occurs when (a) visible export exceed
visible imports (b) total payment exceed visible export (c) visible imports
exceed visible exports (d) invisible export exceed invisible import (e)
visible export exceed invisible imports
9. The factor of production which is described as wealth set aside for the
production of further wealth is called (a) entrepreneur (b) land (c) capital
(d)goodwill (e) labor
10. Buying and selling of goods and services within the geographical areas of
a country is called (a) entrepot trade (b) external trade (c) domestic
trade (d) regional trade (e) import trade
11. Which of the following conditions may make the manufacturer sell
directly to the consumer? (a) break in communication (b) inaccessibility
of wholesaler\s warehouse (c) the nature of the commodity involved
(d)inadequate transport facility (e) trade in balance
12. Which of the following is primarily responsible for protecting consumers
against poor quality goods? (a) Nigerian National Supply Company
(b)Manufacturers Association of Nigeria (c) Industrial Arbitration
Panel (d) Standards Organization Of Nigeria (e) Nigeria Chamber of
Commerce
14. The main disadvantage of rail transport to the trader is that (a) it carried
bulky goods only (b) its cost of carriage is high (c) it is slow and inflexible
(d) it causes road congestion (e) it travels on schedule
15. Warehousing is one of the functions of the (a) wholesaler (b) retailer
(c)chamber of commerce (d) ministry of trade and industry (e) export
promotion department
17. The last link in the chain of distribution is the (a) wholesaler (b)
retailer (c) consumer (d) factor (e) advertiser
19. The major division of commerce are (a) import, export and transport
(b)trade, communication and warehousing (c) trade and auxiliaries to
trade (d) exchange, consumption and production (e) import, trade and
production
20. Which of the following statements is not true? (a) Commercial services
are the life blood of the country’s economic system. (b) there cannot
occur commercial services until goods have been produced (c) without
commercial services most goods and services will not be produced (d)
there is no stage of production that does not employ commercial
services (e) commercial services add to the value of a product.
21. The oldest and commonest form of business in Nigeria is (a) partnership
(b)the co-operative society (c) sole proprietorship (d) joint stock venture
(e)public corporation
22. Which of the following is not a factor of production? (a) capital (b) land
(c)labor (d) entrepreneur (e) staffing
23. In which class of occupation would you place a taxi-driver? (a) extractive
(b) indirect services (c) personal services (d) primary production
(e)commercial services
24. The exchange of goods for other goods in home trade is known as
(a)entrepot trade (b) home trade (c) barter trade (d) Foreign trade
(e)counter trade
25. A business is in existence primarily to (a) make profit (b) provide goods
and services (c) provide employment (d) compete with others in business
(e)sell goods at reasonable price
28. An individual who makes the final use of goods and services provided by
a firm is the (a) manufacturer (b) wholesaler (c) consumer (d) retailer
(e)trader
29. In insurance the term Uberrimae fidae stand for (a) utmost good faith
(b) subrogation (c) insurable interest (d) indemnity against loss
(e)proximate cause
30. The amount paid by the insurance company to the insured upon giving up
his policy is called (a) surrender value (b) cash bonus (c) assured sum
(d)dividend (e) premium
31. An overdraft is usually granted to a (a) saving account holder (b) deposit
account holder (c) current account holder (d) loan account holder (e)
fixed deposit account holder
34. The reward of capital is (a) dividend (b) interest (c) profit (d) rent (e)
rebate
36. Retail outlets which sell from specialized vans are (a) super
markets (b) multiple shops (c) mail order firm (d) department
store (e) mobile shops
38. Which of the following is concerned with obtaining raw material from
their natural locations? (a) extractive industry (b) manufacturing
industry (c) constructive industry (d) transport industry (e)
engineering industry
39. The market for short term loans is known as the (a) capital
market (b) discount market (c) money market (d) stock market
(e) open market
40. The main criticism of advertising is that it (a) leads to increase in the size
of the market (b) leads to war of brands (c)increase the price of product
(d) decreases employment opportunities (e) uses bad language
42. Which of the following is not a method of trade restriction (a) exchange
control (b) stock exchange (c) import license (d) embargo (e) quota
43. Which of the following is a retail outlet to eliminate the profit of middle
man? (a) producer co-operative (b) consumer co-operative (c) thrift and
credit society (d) department store (e) Multiple shop
44. A trade deficit means that (a) the balance of trade is favorable (b)
export are less that imports (c)import are less than exports (d)export are
decreasing (e)the balance of payment is unfavorable
45. Building, machines and motor vehicles used for purpose of production
are example of (a) current assets (b) current liabilities (c) working capital
(d)fixed assets (e) liquid assets
46. Who among the following is not a middle man? (a) a retailer (b) broker
(c)factor (d) consumer (e) wholesaler
47. The reward of land as a factor of production is known as (a) interest (b)
rent (c) profit (d) wage (e) toll
49. The three main division of production are (a) extraction, manufacturing
and construction (b) import, export and entrepot (c) industry, commerce
and direct services (d) land, labour and capital
50. Into which of the following two broad areas can trade be divided? (a)
home and foreign trade (b) home and retail trade (c) wholesale and retail
trade (c)foreign and wholesale trade (d) import and exports
SECTION B
b. Define partnership
e. Bill of lading
– All Subject
SS 1
Commerce
I. The study of all the activities involved in the distribution of goods and
services is known as A. Trade B. Commerce C. AIDS to trade D. Chain of
distribution
2. The final person and the last link in the chain of distribution is are
respectively A. Consumer and retailer B. Retailer and consumer C. The Agent
and the consumer D. The consumer and the agent
3. The aids to trade that covers the conveying of people and goods from where
they are produced to where they are needed is know as A. Warehouse B.
Banking C. Communication D. Transportation
8. What are fixtures and fittings in a balance sheet? A. liquid capital B. current
assets C. fixed assets D. working capital
11. What is the major function of the wholesaler? A. buying from small-scale
producers and selling to exporters B. buying in bulk and selling in small
quantities C. granting of credit facilities to retailers D. providing information to
people
12. The difference between the total payments for imports and the receipts
from exports within a given period is referred to as A. balance of payments B.
balance of trade C. comparative cost advantage D. comparative advantage
13. Which of the following is both direct and indirect credit enterprise?
15. Nationalization of an industry means that its ownership becomes that ofA.
government B. shareholders C. taxpayers D. indigenes
16. which of the following is the most important business resource?A. money
B. management C. materials D. manpower
17. Paper money originated in form of receipt given by?A. money lenders B.
goldsmiths C. bankers D. traders
18. The process of buying and selling and distribution of goods and services is
known as?A. retail trade B. commerce C. marketing concept D. marketing mix
19. Which of the following convert raw materials into finished goods?A.
Extractive industry B. Manufacturing C. Commercial occupation D.
Constructive industry
22. A trader who wants to buy goods from another country sends?A. an advice
note B. an invoice C. a bill of exchange D. am indent
25. Pure profits is the elements of the paid?A. for land B. for capital C. a
manager D. to an enterpreneur
26. The factor of production which is described as wealth set aside for the the
production of further wealth is called?
27. Which of the following conditions may make the manufacturer sell directly
to the consumer?A. brake in communicationB. Inaccessibility of the
wholesaler’s warehouseC. The nature of the commodity involvedD. inadequate
transport facility
30. The main disadvantage of rail transport to traders is that?A. it carries bulky
goods only B. its cost of carriage is highC. it is slow and flexible D. it causes
road congestion
31. A telephone call within a town is called?A. home call B. trunk call C. district
call D. Local call
32. Which mode of transport would you suggest as the most suitable for
natural gas?A. Air B. Sea C. Pipeline D. Road
Closing stock……………..N9000
Purchases…………………N14,000
39. Which of the following is the most suitable means of transporting bulky
goods from Lagos to Kaduna? By
40. The word Ltd written after the name of a company means that?A. the
individual member’s capital is limitedB. the total sum of the company’s capital
is limitedC. members are liable to the extent of their holdingD. company’s
location is limited