Who among the following is not engaged in a commercial occupation
Answer
(B)
an engineer
6
On which of the following grounds may a company be compulsorily wound up?
Answer
(D)
it fails to commence business within a year of its incorporation
7
The management and control of co-operative societies are in the hands of the
Answer
(A)
contributors
8
Key industries and those requiring huge capital are usually established as
Answer
(A)
public corporations
9
Movement of commercial vehicles in Nigeria is controlled by the
Answer
(B)
National Association of Road Transport Workers
10
The reward of entrepreneurship as a factor of production is
Answer
(C)
profit
11
A document issued to a buyer showing the quantity description and prices of goods bought is called
Answer
(B)
an invoice
12
Which of the following describes the marketing mix?
Answer
(A)
Distribution, production policy, promotion, pricing policy
13
Which of the following is not a negotiable instrument?
Answer
(A)
Invoice
14
Which of the following is not a function of the Nigerian Airport Authority?
Answer
(D)
Maintains all aircrafts in the country
15
Another name for a foreign order is
Answer
(D)
indent
16
An agreement to deliver goods in the future after payment of the final installment is known as?
Answer
(C)
conditional sale
17
Which of the following is a pre-sales service to the consumer?
Answer
(B)
Provision of credit facilities
18
Rate of stock turnover is calculated to determine
Answer
(B)
number of times goods are bought and sold
19
Which of the following is not a feature of hire purchase?
Answer
(D)
Ownership of goods passes to the customer on payment of a deposit
20
Which of the following is not connected with after-sales services?
Answer
(B)
Granting trade discount
21
Credit in business transaction is?
Answer
(A)
a form of loan
22
Which of the following is true of rail transport?
Answer
(D)
Gaurantees safety of goods
23
Which of the following is not a means of controlling credit by the Central Bank?
Answer
(C)
Clearing inter-bank indebtedness
24
Which of the following is not a function of Development Banks?
Answer
(C)
Issue currency notes
25
Which of the following is an example of insurable risk?
Answer
(D)
The death of a business partner
26
If Mr Olu insures Mr Obi's house, the insurer may, in event of a loss, refuse to pay compensation based on the principle of
Answer
(C)
insurable interest
27
Which of the following shows the quality of money
Answer
(A)
Ability to represent both small and large values
28
The speculator in the stock exchange market who sells securities in anticipation of a fall in price is called a
Answer
(C)
bear
29
An action taken by a seller to avoid risks from unforeseeable price fluctuation is known as
Answer
(D)
hedging
30
The insurance policy against claims from customers who might be injured within the business premises is called
Answer
(D)
employers liability insurance
31
An offer of new shares made to existing shareholders at a preferential price is called?
Answer
(B)
rights issue
32
A trader started business with #30,000 and spent #20,000 in buying premises and equipment, the balance of #10,000 is his
Answer
(C)
working capital
33
New shares are offered for sale to the public through
Answer
(C)
issuing houses
34
Cash-in-hand and at bank as well as debtors are examples of
Answer
(A)
current assets
35
Money spent on acquiring vehicles, furniture and fittings by a manufacturing company is termed
Answer
(D)
fixed capital
36
Small ships which are used to carry goods and passengers across rivers or canals called
Answer
(E)
ferries
37
Which of the following would best be conveyed by rail transport
Answer
(B)
Shoes
38
Gases are best transported
Answer
(D)
through pipelines
39
Speed is an important consideration for choice of a means of transport where goods are
Answer
(D)
perishable
40
Which of the following facilities is very useful to an organization that posts a large number of mails regularly?
Answer
(A)
Franking machine
41
Which of the following defines communication in commerce?
Answer
(B)
Transmission of information
42
Contraband goods seized by the Customs and Excise Authority are kept in the
Answer
(D)
state warehouse
43
Business activities responsible for identifying, anticipating and satisfying customer's requirements profitably are called
Answer
(C)
marketing
44
Which of the following is a demerit of advertising?
Answer
(A)
Increases per-unit cost of goods
45
Which of the following s a form of public relations?
Answer
(A)
Feature articles
46
When a firm sets a low price for new product, this is said to be
Answer
(C)
penetration pricing
47
Ola presented his motor-cycle for sale to Musa at a cost of #8,000. Musa agreed and bought the vehicle at the same amount.
The #8,000 for the sale is
Answer
(C)
a consideration
48
Ola presented his motor-cycle for sale to Musa at a cost of #8,000. Musa agreed and bought the vehicle at the same amount.
Ola is the
Answer
(A)
offeror
49
When an acceptance to an offer is conditional, the offer becomes
Answer
(D)
void
50
A mercantile agent having title to goods in his possession is known as
Answer
(A)
factor
51
A transporter who had to sell some perishable goods without the authority of the owner becomes an agent by
Answer
(B)
necessity
52
A contract to take possession of goods on installment payment with the option to transfer ownership after full payment is known as
Answer
(C)
hire purchase
53
Which of the following brings a public corporation into existence
Answer
(C)
Acts of Parliament
54
The set of actions of governments, and other organized bodies in response to users' complaints about goods and services is known as
Answer
(B)
consumer protection
55
The words "Account payee only" on a cheque means
Answer
(B)
pay only to the holders account
56
An association of small scale retailers formed to to encourage bulk buying from manufacturers is known as a
Answer
(B)
producer co-operative society
57
The agency in Nigeria which ensures that products conform to government specifications and quality control is the
Answer
(D)
Standards Organization of Nigeria
58
The management of a company with a view to ending its operation is known as
Answer
(C)
liquidation
59
Any action taken by a company outside its stated objectives is regarded as
Answer
(B)
ultra vires
60
Measuring performance against the set objectives is a management function that relates to
Answer
(E)
controlling
61
The setting of objectives and determination of the best way to achieve them are known as
Answer
(E)
controlling
62
When a company sells its shares to an issuing house which later sells to the public, it is called
Answer
(A)
an offer for sale
63
When an industry formerly owned by individuals is taken over by the government, such an industry becomes
Answer
(B)
nationalized
64
The major aim of indigenization is to
Answer
(B)
accelerate participation of citizens in business
65
Which of the following specializes in granting loans to distressed economies?
Answer
(C)
IMF
66
Which of the following is not a problem of ECOWAS?
Answer
(D)
Diversified economy for West Africa
67
Which of the following facilitates settlement for sub-regional indebtedness?
Answer
(C)
The West African Clearing House
68
Which of the following is not an economic grouping?
Answer
(C)
United Nations Organization (UNO)
69
The dealers who buy and sell stocks and shares in their own name are called
Answer
(A)
jobbers
70
The amount which the insured pays the insurer periodically is
Answer
(B)
premium
71
At what stage is acceptance of offer by post valid? When the letter is
Answer
(C)
delivered
72
The capital of a company indicated in the Memorandum of Association is known as
Answer
(A)
authorized capital
73
Which of the following is not a means of water transport?
Answer
(E)
Truck
74
An agency that is involved in moving goods or people from place to place for a fee is called
Answer
(D)
common carrier
75
Which of the following guides the operations of a Partnership?
Answer
(E)
The Deed
76
A partner who contributes to the capital but does not take part in running the business is known as
Answer
(A)
a sleeping partner
77
Which of the following assists a Nigerian producer to participate in trade fairs and exhibitions abroad?
Answer
(E)
Nigerian Exports Promotion Council
78
One way of importing goods without the use of foreign exchange is through
Answer
(E)
counter trade
79
Balance of trade is said to be favourable when
Answer
(D)
visible exports exceed visible imports
80
The basic principles upon which International Trade is carried on among countries is
Answer
(C)
comparative cost advantage
81
A supplier who needs to make additional charges for goods delivered will send
Answer
(A)
a debit note
82
Gross profit is correctly ascertained by
Answer
(E)
subtracting cost of goods sold from sales
83
The returns from capital investment are known as
Answer
(D)
profit
84
The total asset of business minus its total liability is the
Answer
(B)
capital owned
85
The production process is completed when what is produced
Answer
(E)
has reached the final users
86
Which of the following has no legal capacity to a contract
Answer
(D)
A Minor
87
Which of the following is a disadvantage of road transport?
Answer
(A)
Takes an available route
88
A speculator who applies for new stocks and shares with the intention of selling them them at higher price is a
Answer
(B)
stag
89
The Third Party Motor Vehicle Insurance Policy covers damages
Answer
(B)
caused by the vehicle insured
90
Which of the following is not a method of selling
Answer
(D)
Stock control
91
Price lists, catalogues and COD are mainly used in operating
Answer
(D)
mail order business
92
The time allowed for unloading and loading ships is referred to as
Answer
(E)
lay days
93
XYZ Ltd's total sales was #100,000. It had opening stock of #20,000 and closing stock of #22,000. It bought goods worth #80,000 and paid #2,000 for rent.
XYZ Ltd's profit is
Answer
(D)
#22,000.00
94
XYZ Ltd's total sales was #100,000. It had opening stock of #20,000 and closing stock of #22,000. It bought goods worth #80,000 and paid #2,000 for rent.
XYZ Ltd's Net Profit is
Answer
(E)
#20,000.00
95
In the capital structure of a Public Limited Company, the term equity refers to
Answer
(B)
ordinary shares
96
Which of the following is legally used by the insured while the policy is being processed?
Answer
(A)
Cover note
97
Which of the following guarantees payment on presentation?
Answer
(D)
Bearer cheque
98
One advantage of direct selling is
Answer
(B)
immediate feedback
99
Which of the following is not a business resource?
Answer
(A)
Market
100
Penalty imposed by a ship owner for exceeding the period charter is
