The fastest means of sending a printed message from Lagos to London is through
Answer
(D)
telex
3
An association that mobilizes the savings of members and channels them to needy members is known as
Answer
(C)
Thrift and Credit Co-operative
4
If Ade issues a Union Bank cheque to Chukwu, the Union Bank is the
Answer
(A)
drawee
5
Which of the following is the clearing house for all the banks in the country?
Answer
(C)
The Central Bank of Nigeria
6
Commerce developed as a result of
Answer
(C)
specialization
7
An overdraft can only be granted to the holder of a
Answer
(D)
current account
8
Which of the following is not a source of capital to a partnership?
Answer
(D)
Shares
9
Which of the following functions of the wholesaler helps to stabilize prices
Answer
(E)
Warehousing
10
The rebate given to the retailer by the wholesaler to enable him make profit is known as
Answer
(C)
trade discount
11
Division of labour often results in
Answer
(B)
an increase in production
12
Who among the following is not an agent?
Answer
(D)
Manufacturer's representative
13
Who among the following comes first in the channel of distribution?
Answer
(D)
Manufacturer
14
The services rendered by Nigerian Airways to foreign companies are part of Nigeria's
Answer
(C)
invisible exports
15
One of the characteristics of a debenture is that
Answer
(C)
it yields a fixed rate of interest
16
Which of the following is a disadvantage of credit transaction?
Answer
(D)
encourages bad debt
17
In which of the following do the goods become the property of the buyer on the payment of first installment
Answer
(B)
Deferred payment
18
Which of the following government legislation is not aimed at consumer protection?
Answer
(A)
Taxation Law
19
Self-service, mail order and automatic vending are examples of
Answer
(D)
selling techniques
20
Span of control is defined as the
Answer
(D)
number of surbodinates reporting directly to a supervisor
21
An established pattern of relationships among members of an organization is known as
Answer
(A)
organizational behaviour
22
The aspect of management which ensures that there is no deviation from the set standards is called
Answer
(A)
controlling
23
When a Public Limited Company is incorporated it means that
Answer
(C)
It has a legal existence
24
The Manager,
Afribank,
Lagos.
Please pay to Great Nigeria Insurance Company, from my account, a sum of #125.00 at the end of every month until further notice, starting from this month.
The above instruction is a
Answer
(D)
standing order
25
A retailer's mark-up is his
Answer
(E)
selling price less cost price
26
Debenture is an example of
Answer
(C)
loan capital
27
Which of the following is not an acceptable collateral security for a bank loan?
Answer
(E)
Warehouse warrant
28
Which of the following is the basic principle of marketing concept?
Answer
(C)
Consumer-oriented
29
The compensation given to brokers who sell shares to jobbers is called
Answer
(B)
commission
30
The Stock Exchange does not deal in
Answer
(B)
treasury bills
31
The insurance principle which expects the insured and the insurer to disclose all facts about a proposed contract is called
Answer
(A)
uberrimae fidei
32
Which of the following is not covered by fire insurance policy?
Answer
(D)
Lightning
33
Which of the following is not considered when siting a retail shop?
Answer
(A)
Advertising
34
The law stipulating that labels should contain full details about a product is known as the
Answer
(D)
Trade description Act
35
A design which distinguishes the goods of one producer from those of others is called
Answer
(C)
trade mark
36
Which of the following is responsible for the maintenance of the quality of goods produced
Answer
(C)
Standards Organization of Nigeria
37
The document stating the particular country from which goods are imported is called
Answer
(A)
certificate of origin
38
Which of the following makes it possible for people to collect their letters at their convenient time ?
Answer
(C)
Post Office Box
39
Which of the following is not a function of the Nigerian Ports Authority?
Answer
(A)
Checking smuggling activities
40
Which of the following indicates special crossing on a check? Two parallell lines with
Answer
(C)
"account payee" only
41
Which of the following is usually sent to prospective buyer when the seller expects payment of the goods dispatched?
Answer
(A)
Pro-forma invoice
42
A company which acquires more than 50% voting shares of another company is called?
Answer
(E)
a holding company
43
Which of the following is true of a merger?
Answer
(D)
The company formed aquires a new name
44
Which of the following covers damages to the body of a ship and its machinery?
Answer
(E)
Hull insurance
45
The major disadvantage of pipeline transportation is that it
Answer
(D)
is not easy to detect damages
46
Which of the following are true of a bill of lading? i. it is a means of payment in foreign trade. ii. it is document of title to goods. iii. it is a contract of carriage. iv. it is usually drawn in triplicate.
Answer
(E)
ii, iii and iv only
47
The difference between the total amount owed to a country and the total amount owed by it is
Answer
(E)
balance of payments
48
Which of the following is not true of branding?
Answer
(D)
Encourages pilfering
49
Which of the following is a disadvantage of air transport?
Answer
(C)
High cost
50
Which of the following is not a characteristic of Charter party?
Answer
(E)
An association of ship owners
51
Which of the following is issued to the exporter or his agent when the goods has been loaded in the ship?
Answer
(B)
Mate's reciept
52
A common carrier is
Answer
(E)
one who engages in the transportation of goods and passengers for a fee
53
The cost of goods sold divided by the average stock held during a trading period gives the
Answer
(D)
rate of stock turnover
54
An organized market for securities is called
Answer
(C)
Stock Exchange Market
55
A carton of spoons valued at #3,000.00 was invoiced at #300 only. Which of the following documents would be used by the seller to correct the error?
Answer
(E)
A debit note for #2,700.00
56
Which of the following is not a means by which banks facilitate foreign trade?
Answer
(C)
Open market operations
57
Which of the following is a characteristic of a private company?
Answer
(C)
Shares are not dealt in on the stock exchange
58
Food and Drugs Act, Weights and Measure Act, Standards Organization of Nigeria, etc are aimed at
Answer
(E)
protecting consumers
59
The reorganization of public enterprises to operate as profit-making ventures is known as
Answer
(D)
commercialization
60
The intangible benefits arising from the business connections and reputation of a firm is called
Answer
(B)
goodwill
61
Which of the following monitors people's opinion about a firm and takes measures to correct adverse impressions?
Answer
(A)
Public Relations
62
Which of the following mostly serves as a useful promotional device for consumer goods?
Answer
(E)
Packaging
63
Which of the following is a function of advertising?
Answer
(A)
Stimulation of demand
64
The main reason for advertising an already existing line of products is to
Answer
(D)
build brand recognition
65
The principle of insurance that restores the insured to the position he occupied immediately before the loss occurred is called
Answer
(B)
indemnity
66
Business activities that direct the flow of goods and services from the producer to the consumer is
Answer
(D)
marketing
67
Capital owned is synonymous with the
Answer
(C)
net worth
68
Which of the following is not performed by marketing?
Answer
(A)
Provision of revenue
69
The products that are regularly and easily bought by customers through habit are called?
Answer
(D)
giffen goods
70
A business unit whose membership range from 2 to 20 is a
Answer
(B)
partnership
71
Which of the following conditions may lead to the dissolution of a partnership?
Answer
(C)
One partner becomes dormant
72
Which of the following is a legal tender?
Answer
(B)
Bank notes
73
Which of the following takes the shortest time and is the most accurate means of communication?
Answer
(A)
Telephone
74
When an assured is unable to honor his obligation in an insurance contract thereby terminating it before maturity he could only receive
Answer
(C)
the surrender value
75
Assets of a business which cannot easily be changed into cash are known as
Answer
(B)
fixed capital
76
The imposition of high tariff on imported goods by the customs authority is to
Answer
(E)
protect infant industries
77
Who among the following has no right of ownership to a business organization?
Answer
(D)
Debenture holder
78
From the following figures in the accounting books of XY company, calculate its working capital : stock #2,000; cash #1,500; Creditors #1,000; Bank overdraft #1,400
Answer
(C)
#1,100
79
If goods invoiced at #1,500 were sold to Etim at less 15% trade discount, he would pay
Answer
(C)
#1,275.00
80
An agent who takes possession of goods and sells in his own name but does not guarantee payment is known as
Answer
(D)
factor
81
The total assets of Ogo Plc is #16,000 and the liabilities included loan #2,000, creditors #1,000 and electricity bill #2,000. Calculate the capital owned by the company?
Answer
(E)
#11,000.00
82
Ali Plc with issued capital of #500,000 in #1.00 shares has for now requested shareholders to pay only 50k for each #1.00 share. The amount requested from the shareholders by the company is called?
Answer
(B)
Called-up capital
83
When a company raises additional capital by selling shares directly to the public through insurance companies or investment houses, this is known as
Answer
(C)
private placing
84
Which of the following is not one of the aims of indigenization? To
Answer
(E)
transfer of a portion of risk from one insurer to another
85
One of the features of reinsurance is the
Answer
(E)
transfer of a portion of risk from one insurer to another
86
Which of the following is used in home trade?
Answer
(B)
Bank draft
87
To which of the following occupations does a broker belong?
Answer
(C)
Commercial
88
When firms that operate at different stages in the production of a commodity merge, this is known as
Answer
(B)
vertical intergration
89
The document which gives the current price and terms of trade of a product is called?
Answer
(B)
an invoice
90
Which of the following is not a function of merchant banks?
Answer
(E)
Printing new bank notes
91
A restriction on the quantity of a commodity that could be imported is known as
Answer
(C)
quota
92
The art of combining human, material and other resources to achieve the stated goals of a business is known as
Answer
(E)
organizing
93
An agent with authority to bind his principal in everything, provided he acts lawfully is called
Answer
(C)
a universal agent
94
Mr Ojo paid Nnamdi the sum of #3,000 for a piece of land without their signing any deed of sale. Which of the following elements of contract is lacking in the transaction?
Answer
(B)
Formality
95
When an industry is nationalized, ownership belongs to the
