Which of the following are the components of commerce?
I Trading and advertising
II Warehousing and transportation
III Packaging and branding
IV Insurance and banking
Answer
(C)
I, II and IV
2
A royal charter was granted to the Royal Niger Company to do business in Nigeria in
Answer
(C)
July 1886
3
Transport, retailing and wholesaling industries rely heavily on
Answer
(C)
manufacturing
4
An example of indirect service is rendered by
Answer
(A)
civil servants
5
The mode of transportation that is noted for on time dependability and low cost peer unit on gods carried is?
Answer
(B)
air
6
The person who undertakes any risk in insurance business is known as
Answer
(B)
an underwriter
7
The main purpose of insurance is to
Answer
(D)
spread individual losses ove all covered participants
8
The object of the business are determined by the
Answer
(C)
society
9
Partnership are most suitable where
Answer
(B)
professionals are involved
10
Use the conversation below to answer the question below;
MUSA: Taiwo why are you in business?
TAIWO: To optimize profit, provide quality products, and discharge my social responsibilities. What of you, Okon and Kalu
OKON: I am in business to cater to the needs of the consumers at all costs.
KALU: I am in business to make a profit, provided quality products at reasonable prices, and establish a good reputation for myself.
The businessman that may end up not discharging his social responsibility is--------------------
Answer
(D)
Kalu
11
The business organization in which shareholder's have equal vote is
Answer
(C)
co-operative
12
The major objective of corporate mergers is to
Answer
(D)
enhance economies of scale
13
When it became necessary to liquidate a company, the frist step to be taken is the appointment of
Answer
(D)
liquidator
14
In which of the following circumstances is a court order NOT necessary for the winding up of a company?
Answer
(B)
special resolution of members
15
One type of investment that have a variable income is
Answer
(D)
ordinary shares
16
A term which indicates that share is temporarily suspended is
Answer
(A)
ex-dividend
17
Leasing is the right to use asset for an agreed period in return for
Answer
(D)
rents
18
The form of business financing which involves pledging of a specific asset is
Answer
(B)
mortgage
19
The total amount that a company is allowed to raised according to its memorandum of association is known as
Answer
(B)
authorized capital
20
A public limited liability company having a nominal capital made up of 200 000 ordinary shares of 50k each decided to issued 50% of it to the public.
What is the authorized capital?
Answer
(B)
N50 000
21
The turnover of firm maybe affected by
Answer
(A)
the demand for its product
22
The cost of transporting goods to consumers called
Answer
(D)
carried outward
23
The main aim of selling directly to consumers by manufactures is to
Answer
(A)
dis courage the activities of middlemen
24
In foreign trade, document of title is known as
Answer
(A)
bill of lading
25
Excise duties are paid on goods that are
Answer
(B)
manufactured within the company
26
Stevedores as a term in foreign trade means men who
Answer
(D)
load and unload ships
27
A close indent is an instrument to an agent to
Answer
(A)
order goods from a particular manufacturer
28
The basic distinction between cash discount and trade discount is that while trade discount is
Answer
(D)
a reduction in the value of sales, cash discount is a reduction in price of goods
29
The cost that raises from failure to load or unload a ship at the port within a stipulated period is known as
Answer
(B)
demurrage charges
30
Bank giro is a system where?
Answer
(D)
a customer closes his account by writting cheque
31
Commercial banks are referred to as departmental stores of banking because they
Answer
(D)
offer many types of services
32
A markets where new shares are trade is known
Answer
(A)
primary market
33
When a firm speaker of stock appreciation, it refers to
Answer
(C)
an unexpected increase in the demand of its stock
34
The process of creating more for a product is called?
Answer
(C)
promotion
35
When a vendor supplies newspapers from house to house and across the streets, the element of marketing mix involved is
Answer
(D)
place
36
The main advantage of using cinema as an advertising medium is that it is
Answer
(C)
accessible
37
When old customers stick to the old place to buy goods and services,it is known as
Answer
(A)
goodwil
38
The most important pieces of legislation governing business and commercial activities in Nigeria currently is the
Answer
(C)
Companies and Allied matters degree,1990
39
One of the criteria for differentiating consumers markets from industrial ones is the
Answer
(A)
type of demand
40
Th overriding objective of the food and drug act in Nigeria is too prevent the
Answer
(D)
manufactures of food and drug from charging excessive prices
41
The activities of consumers association in Nigeria have not been effective because
Answer
(D)
the consumers have no medium for expressing their feelings
42
The least of the advantages of indigenization is that
Answer
(A)
the standard of living of the indigenes is improved
43
The main objective of a trade association can best be described as promoting and protecting
Answer
(D)
customer's interest
44
The management function of evaluating whether objectives are being achieved is
Answer
(D)
controlling
45
In a business organization, the annual operation plan or budget is a form of
