man buys, sells and distributes goods and services
2
The type of activity which turns processed raw materials into consumer and industrial goods is described as
Answer
(B)
manufacturing
3
The production process that combines two or more raw materials into one end product is
Answer
(B)
blending
4
A demonstration of social responsibility by a business is the payment of
Answer
(A)
taxes to government
5
A distinguishing characteristics of a limited liability company is that it
Answer
(C)
can sue and be sued
6
Which of the following takes place when firms producing at different stages in the same industry combine?
Answer
(B)
vertical integration
7
Which of the following groups is paid first when a firm liquidates?
Answer
(A)
Preference shareholders
8
Compulsory dissolution of a business can arise from
Answer
(B)
a declaration by a court of law
9
What are fixtures and fittings in a balance sheet?
Answer
(C)
fixed assets
10
Governments impose import duties for the following reasons EXCEPT
Answer
(C)
to discourage the redistribution of income at home
11
Sole enterprise may flourish best in
Answer
(B)
a retailing business
12
The use of coin-operated machines to sell goods is a form of
Answer
(B)
retailing
13
What is the major function of the wholesaler?
Answer
(B)
buying in bulk and selling in small quantities
14
The rate at which a country's exports exchange for its imports is called
Answer
(D)
terms of trade
15
The difference between the total payments for imports and the receipts from exports within a given period is referred to as
Answer
(A)
balance of payments
16
A pro forma invoice is NOT required when
Answer
(C)
dealing regularly with a customer
17
Which of the following statements is TRUE about sea transport?
Answer
(C)
all ships are insured separately from the crew
18
The postal organization which preceded the Nigerian Postal Service is
Answer
(D)
Post and Telegraph
19
Goods discharged from ships on which import duties have not been paid are kept in the
Answer
(D)
bonded warehouse
20
A sole proprietor insured his goods worth N200,000 for half the value. There was a fire accident in which goods valued N80,000 were destroyed. The value of compensation expected from the insurer is
Answer
(B)
N80,000
21
One of the effects of the devaluation of the Naira is that the
Answer
(D)
imports that can be bought with the naira have become costlier
22
Drawing two parallel lines across a cheque means that it has to be paid into the account of the
Answer
(A)
payee
23
The financial institution established to boost Nigeria's trade with the rest of the world is called
Answer
(D)
Nigerian Export-Import Bank
24
Which of the following is both direct and indirect credit enterprise?
Answer
(A)
A co-operative and thrift society
25
The business in the stock exchange is characterized essentially by
Answer
(A)
dealing
26
The second tier security market is
Answer
(B)
a member of the Nigeria stock exchange
27
The element of the marketing mix are
Answer
(A)
product promotion, place and price
28
Which of the following items has the shortest effect on the consumer
Answer
(B)
innovation
29
Which of the following is a form of sales promotion
Answer
(B)
offering free sample
30
One advantage of personal selling over all other elements of promotion is that
Answer
(A)
it can provide instant feedback
31
Which of the following must be present in an agency by agreement?
Answer
(A)
intentions
32
An agreement to sell is distinguishable from sale because in the former, the transfer of goods is
Answer
(C)
deferred
33
Mr Amusa says to Mr Bello 'i will sell you this hat for N30'. And Mr Bello replied 'i will pay N29'. The contract is
Answer
(D)
an offer but no acceptance
34
Nationalization of an industry means that its ownership becomes that of
Answer
(A)
government
35
The comprehensive import supervision scheme was set up by the federal government in order to
Answer
(D)
ensue that import into Nigeria are of the correct quality, value and quantity
36
Which of the following has power to order withdrawal of a particular food item from circulation?
Answer
(C)
Food and Drug Department of the Federal Ministry of health
37
Which of the following maxims negate the principle of collective bargaining?
Answer
(C)
only members of the union can benefit from agreements negotiated by the union
38
NACCIMA stands for
Answer
(D)
Nigerian association of Chambers of commerce, Industries, Mines and Agriculture
39
For establishment of a powerful consumers' association in Nigeria to exist, there must be
Answer
(D)
freedom from external influence
40
which of the following is the most important business resource?
Answer
(D)
manpower
41
The harmonious relationship among the various units in an organization is ensured through
Answer
(D)
leadership
42
The principle of span of control stipulates that
Answer
(D)
the number of employee reporting to one superior should be kept to workable maximum
43
Which of the following makes other functions of business its appendages?
Answer
(B)
marketing
44
The use of computer in modern banking industry is a reflection of
Answer
(D)
technological development
45
When an oil exploring and mining company builds a health center in one of the communities where it operates, such a company is
