JAMB - Commerce (2021)

• 1

  The principle of span of control stipulates that?

  Responder

  (A)

  The number of employees reporting to one superior should be kept to a workable maximum
• 2

  The main advantage of a sole trader is the freedom to?

  Responder

  (B)

  take quick decision
• 3

  The major objective of corporate mergers is to?

  Responder

  (C)

  enhance economies of sale
• 4

  A provision in the charter of a company which gives holders of common stock the first option to purchase additional issues of the firm's common stock is the

  Responder

  (A)

  pre-emptive right
• 5

  The conversion of raw materials into finished products creates

  Responder

  (A)

  form utility
• 6

  A form of money that has gone out of use is

  Responder

  (B)

  commodity money
• 7

  The activities aimed at finding customers needs and satisfaction can be described as

  Responder

  (A)

  conceptual marketing
• 8

  Given:
  I. Retail
  II. Export
  III. Transport
  IV. Import
  V. Insurance
  VI. Banking and finance
  VII. Wholesale
  VIII. Communication. 

  Which of the above are aids to trade?

  Responder

  (A)

  III, V, VI and VIII
• 9

  Communication process involves the transmission of a message over a selected channel to the 

  Responder

  (B)

  receiver
• 10

  The instruments of credit include

  Responder

  (D)

  bills of exchange and promissory notes
• 11

  The type of communication from a superior to a subordinate in an organization is referred to as 

  Responder

  (A)

  downward communication
• 12

  The excess of the assets over the liabilities of a business is called 

  Responder

  (B)

  net worth
• 13

  Use the information below to answer this question

  A B C Balance Sheet as at 31/12/2004

  ₦ Share capital  200,000 Reserves  100,000 Long term liabilities 40,000 Current liabilities   30,000    370,000

  ₦ Fixed assets  180,000 Investment 100,000 Current assets  50,000 Fictitious assets  40,000  370,000

  The total sum of financing short term projects is

  Responder

  (B)

  ₦200,000
• 14

  Use the information below to answer this question

  A B C Balance Sheet as at 31/12/2004

  ₦ Share capital  200,000 Reserves  100,000 Long term liabilities 40,000 Current liabilities   30,000    370,000

  ₦ Fixed assets  180,000 Investment 100,000 Current assets  50,000 Fictitious assets  40,000  370,000

  What is the capital employed?

  Responder

  (C)

  ₦ 300,000
• 15

  A distinctive advantage of GSM is its

  Responder

  (D)

  mobility
• 16

  The major determinant of fire insurance premium is the 

  Responder

  (B)

  type and structure of the property to be insured
• 17

  An activity that involves derivation of raw materials from land and sea is

  Responder

  (C)

  extraction
• 18

  A person who buys new issues with a view of reselling at a higher price in the near future is referred to as a

  Responder

  (B)

  bull
• 19

  The primary memory component of a computer is the 

  Responder

  (B)

  cache
• 20

  The transmission of the telephone services from one country to another is facilitated by

  Responder

  (D)

  communication satellite
• 21

  The best mode of ensuring that items posted get to the named addresses is through

  Responder

  (C)

  registered mail
• 22

  An agency contract must involve

  Responder

  (B)

  a principal and an agent
• 23

  Inbound tourism occurs when

  Responder

  (C)

  residents of a country travel to other countries
• 24

  When two or more companies agree to execute a project too large for one to handle, this is referred to as

  Responder

  (C)

  a consortium
• 25

  The main objective of a trade association is to

  Responder

  (B)

  protect its members against victimization
• 26

   A person who in consideration for an extra commission takes responsibility for goods sold on credit and in case of default is a 

  Responder

  (D)

  del credere agent
• 27

  NAME	INSURED AMOUNT(₦)	ACTUAL VALUE(₦)	ACTUAL LOSS(₦)
  Mr. P Mr. K Mr. R	25,000 30,000 40,000	100,000 120,000 150,000	30,000 40,000 50,000

  Use the table above to answer questions 27 and 28

  If Mr. P takes a fire insurance policy with average clause, his compensation will be

  Responder

  (A)

  ₦7,500
• 28

  NAME	INSURED AMOUNT(₦)	ACTUAL VALUE(₦)	ACTUAL LOSS(₦)
  Mr. P Mr. K Mr. R	25,000 30,000 40,000	100,000 120,000 150,000	30,000 40,000 50,000

  What insurance principle has Mr. R violated if he decides to overstate the actual value of his property?

  Responder

  (B)

  uberrimae fidei
• 29

  Hire purchase is advantageous to the seller in that 

  Responder

  (D)

  it enhances high level of patronage
• 30

  A form of money with face value which is greater than the value of the metal contents is 

  Responder

  (D)

  token money
• 31

  A proforma invoice is not required when

  Responder

  (B)

  dealing regularly with a customer
• 32

  The art of soap making is an example of

  Responder

  (D)

  secondary occupation
• 33

  The payment made periodically in respect of an insurance policy entered into is known as

  Responder

  (C)

  premium
• 34

  Services rendered to the public is provided by 

  Responder

  (B)

  civil servants
• 35

  Which of the following countries are members of the Lake Chad Basin Commission?

  Responder

  (A)

  Niger and Cameroon