The transfer of ownership of government business to individuals is
Answer
(A)
privatization
3
The fees charged on postal order by the post office is
Answer
(B)
poundage
4
An open cheque is one
Answer
(A)
Which can be cashed over the counter
5
Which of the following is sent by a supplier who does not want to sell on credit?
Answer
(D)
Proforma invoice
6
Which of the following is not an aid to trade ?
Answer
(C)
Production
7
Which of the following is a means of payment?
Answer
(C)
Postal order
8
Turnover of a business is the same as the
Answer
(C)
sales of the business
9
The reduction of the value of a country's currency in relation to other country's currencies in
Answer
(C)
devaluation
10
An insurance principle that prevents a person from insuring what he does not stand to lose financially if the insured risk occurs is
Answer
(C)
insurable interest
11
The exchange of goods for goods in foreign trade is known as?
Answer
(D)
Counter trade
12
Small scale retailer continue to survive inspite of serious competition from large scale retailers because they
Answer
(C)
Maintain personal relationship with customers
13
Which of the following is not a financial institution?
Answer
(C)
Commodity board
14
Trade can be described as
Answer
(C)
buying and selling
15
The job of the police in keeping law and order in the society is
Answer
(D)
an indirect service
16
When the buyer of an existing share is to receive the pending dividend, the price is
Answer
(B)
cum div
17
Musa entered into a contract to supply two cows to Aro. Before the agreed date of supply and without the knowledge of the two
parties, thieves stole the cows. This is an example of termination of contract by
Answer
(D)
frustration
18
An agreement that is enforceable in law is
Answer
(D)
a contract
19
When a public company receives the certificate of incorporation, this implies that
Answer
(D)
it can go ahead and start business
20
Which of the following types of insurance is taken against claims made by staff who get injured while at work?
Answer
(A)
Employers' liability insurance
21
The principle that applies when Greene and Sunwar Insurance Companies jointly indemnified Fatou for the destruction of her
storey building by fire is
Answer
(A)
contribution
22
Which of the following is a source of capital to a sole proprietorship?
Answer
(C)
Loans from friends
23
A contract to take possession of goods on installment
Answer
(B)
hire purchase
24
Which of the following describes the reason for international trade?
Answer
(D)
Comparative cost advantage
25
A new offer of contract that terminates the original offer is
Answer
(C)
a counter offer
26
Public enterprises are financed mainly by
Answer
(D)
government grants
27
Which of the following is most appropriate for a "Cash with Order" terms of sale?
Answer
(D)
Proforma invoice
28
Unlimited liability in business implies that the
Answer
(C)
owners private property can be used to settle the business debts
29
The charge paid by a speculator for non-settlement of his account within the specified period is
Answer
(D)
contango
30
The net profit is calculated as
Answer
(B)
gross profit less expenses
31
Which of the following functions of the wholesaler helps to stabilize prices
Answer
(C)
Warehousing
32
Which of the following does not belong to the group?
Answer
(C)
Hoarding of goods
33
The expert who calculates premium for an insurance company is?
Answer
(C)
An actuary
34
Taxes imposed on locally made goods are known as
Answer
(B)
excise duties
35
In which of the following organizations are members entitled to one vote, irrespective of the number of shares held?
Answer
(B)
Co-operative society
36
The difference between a country's imports and exports of goods in a particular year is
Answer
(A)
balance of trade
37
Examples of current assets are
Answer
(D)
cash and trade debtors
38
Use the following information below to answer the question
Ojo bought a bicycle for ₦20,000, and repaired it at a cost of ₦5,000. He then sold the bicycle for ₦30,000
What was his net profit?
Answer
(A)
₦5,000
39
Use the following information below to answer the question
Ojo bought a bicycle for ₦20,000, and repaired it at a cost of ₦5,000. He then sold the bicycle for ₦30,000
What is the percentage of expenses over cost?
Answer
(A)
25%
40
Use the following information below to answer the question
Ojo bought a bicycle for #20,000, and repaired it at a cost of #5,000. He then sold the bicycle for ₦30,000
What is the cost of goods sold?
Answer
(D)
₦25,000
41
A worker who processes garri is engaged in
Answer
(D)
manufacturing
42
The charge paid to a ship owner for the unused part of a ship is known as
Answer
(B)
dead freight
43
A trader's turnover was D36,000. Purchases was D28,000. The opening stock was D2,000 and the closing stock D3,000. The average
stock is
Answer
(B)
D2,500
44
Which of the following is the clearing house for all the banks in the country?
Answer
(B)
The Central Bank of Nigeria
45
An insurance policy that covers the body of the ship only is called
Answer
(C)
Hull insurance
46
Encouraging a high quality of member's products through the circulation of research information is a function of
Answer
(B)
Manufacturers Association
47
Which of the following carries specialized goods?
Answer
(C)
Tanker
48
The transfer of risks already undertaken from one insurance company to another is?
Answer
(A)
Re-insurance
49
All activities involved in the distribution and exchange of goods and services are referred to as
Answer
(D)
commerce
50
The process of making goods attractive and easy to handle is
Answer
(C)
packaging
51
The selling of articles from place to place on foot is
Answer
(B)
itinerant trading
52
A company which acquires more than 50% voting shares of another company is called?
Answer
(C)
a holding company
53
Mr ojo borrowed N54,000 from a commercial bank and deposited his life insurance certificate with the bank. The certificate
deposited serves as
Answer
(B)
a collateral security
54
Which of the following legislation aims primarily at protection of consumers?
Answer
(A)
Trade Description Act
55
A disadvantage of commercialization to consumers is that
Answer
(D)
prices of products increase
56
The process of placing the right people in the right position is an organization is
Answer
(D)
staffing
57
Commercial activities among West African countries are greatly hindered by
Answer
(C)
lack of an acceptable medium of exchange
58
Which of the following is not a principle of insurance?
Answer
(A)
Insurable risk
59
Use the information below to answer questions below
#
Sales
50,000.00
Debtors
10,000.00
Cash in hand
5,000.00
Opening stock
30,000.00
Creditors
8,000.00
Purchases
16,000.00
Overdraft
12,000.00
Closing stock
10,000.00
Calculate the working capital
Answer
(C)
#5,000.00
60
Labour and entrepreneur are examples of
Answer
(C)
factors of production
61
An organization of producers of similar products, which controls output with the intention to fix price is a
Answer
(A)
cartel
62
A source of capital to a public company which attracts a fixed rate of interest is
Answer
(B)
a debenture
63
The duty of an agent of necessity to a principal is based on?
Answer
(B)
Trust
64
A false statement made by one party with an intention of inducing the other party to enter into a contract with him is known as
Answer
(D)
misrepresentation
65
The difference between the cost price and selling price of an article is
Answer
(B)
mark-up
66
One of the functions of the ports authority is
Answer
(D)
providing warehousing services
67
A limited company has an authorized capital of 20,000,000 shares. If each share capital cost 50k and the company sold 12,000,000
shares. Its issued capital is
Answer
(D)
N6,000,000
68
A diagram showing the positions of the structure of a company is
Answer
(A)
organizational chart
69
Span of control is defined as the
Answer
(B)
number of subordinates reporting directly to a supervisor
70
The production of goods in anticipation of demand is possible because of the existence of?
Answer
(D)
Warehousing
71
Which of the following is not pre-sale service?
Answer
(A)
Repair and maintenance work
72
The mode of transport that conveys goods at low cost per unit is
Answer
(A)
rail
73
All activities geared towards the distribution and exchange of goods and services is
Answer
(A)
commerce
74
An example of in invisible item of trade is
Answer
(D)
shipping
75
The saying that the 'consumer is always right' describes the doctrine of
