When the government gives up its ownership and control of a business to individuals, this is known as
Answer
(C)
privatization
2
The reward received by a party in a contract agreement is known as
Answer
(A)
consideration
3
Payment to a ship owner for carrying one's cargo is
Answer
(D)
freight
4
Which of the following is not pre-sale service?
Answer
(A)
Repair and maintenance work
5
Which of the following is used to inform the addressee that he has a registered parcel for collection?
Answer
(C)
Slip
6
The co-operative society that performs a combination of the functions of other types of cooperatives is called
Answer
(B)
multipurpose cooperative
7
That portion of the share capital which the company has asked the shareholders to pay for is known as
Answer
(D)
called-up capital
8
One of the advantages of air transport over other forms of transport is
Answer
(D)
speed
9
Which of the following are elements of a valid contract?
Answer
(B)
Offer and acceptance
10
The last link in the channel of distribution is the
Answer
(B)
consumer
11
Taxes on imported foreign goods are also known as
Answer
(B)
tariffs
12
If Karamo who lives in The Gambia imports goods from Senegal and later sells them in Guinea Bissau; Karamo is engaged in
Answer
(D)
entrepot trade
13
Manufacturers may sell goods directly to consumers where goods are i. made to customer's specification ii. advertised by the manufacturer iii. perishable iv. highly technical v. widely demanded
Answer
(A)
i,iii and iv only
14
Which of the following is a means of payment?
Answer
(B)
Postal order
15
Shipping services rendered by Nigeria to The Gambia would be classified by The Gambia as
Answer
(A)
invisible imports
16
The main divisions of production are
Answer
(B)
extraction, manufacturing and construction
17
A trader's turnover was D36,000. Purchases was D28,000. The opening stock was D2,000 and the closing stock was D3,000.
What is the cost of goods sold?
Answer
(B)
D27,000
18
A trader's turnover was D36,000. Purchases was D28,000. The opening stock was D2,000 and the closing stock was D3,000.
What is the cost of goods sold?
Answer
(B)
D27,000
19
A trader's turnover was D36,000. Purchases was D28,000. The opening stock was D2,000 and the closing stock was D3,000.
The average stock is
Answer
(C)
D2,500
20
A trader's turnover was D36,000. Purchases was D28,000. The opening stock was D2,000 and the closing stock was D3,000.
What is the rate of turnover?
Answer
(B)
10.8 times
21
In marine insurance, when a particular cargo is thrown into the sea in order to prevent the ship from sinking, the type of marine loss is
Answer
(B)
general average loss
22
The turnover of a trade is the
Answer
(A)
number of times the stock is sold
23
The total assets of a business less its total liability is known as
Answer
(A)
capital owned
24
A document issued to the public by a company to advertise its share is known as
Answer
(A)
prospectus
25
An overdraft is
Answer
(A)
amount permitted to be withdrawn in excess of one's deposit
26
Which of the following is not a principle of insurance
Answer
(C)
Surrender value
27
The par value of a share is also known as its
Answer
(D)
nominal price
28
A cheque dated 15th March 2012, will become stale on
Answer
(D)
16th September 2012
29
Banks settle their indebtedness in the
Answer
(D)
clearing house
30
Which of the following distinguishes home trade from foreign trade?
Answer
(A)
Payments are easily arranged
31
Before the advent of legal tender and credit instrument, which of the following was used as a medium of exchanged?
Answer
(B)
Cowries
32
When C.I.F is quoted on an invoice, it means that the price includes the
Answer
(D)
cost, insurance and carriage
33
Encouraging a high quality of members' products through the circulation of research information is a function of
Answer
(A)
Manufacturers Association
34
A voluntary association of business executives within a locality is known as
Answer
(C)
Chamber of Commerce
35
Which of the following is not a function of Ports Authority?
Answer
(C)
Providing enough ships for the country
36
Using symbols, letters, name or combination of these by a company to distinguish its products is
Answer
(C)
trade mark
37
Trade as a division of commerce is usually classified into
Answer
(C)
home and foreign
38
Liquid capital in a business means the
Answer
(D)
assets easily convertible to cash
39
The relationship which subsists between between two or more persons carrying on a business with a view to profit" is
Answer
(B)
partnership
40
Rights issue is the
Answer
(D)
shares offered to existing shareholders at a cheaper price
41
Which of the following pieces of information would be found in a typical debit note
Answer
(C)
Brief reason for the debit
42
The completion of the production process by grading and branding of goods is a function of the
Answer
(B)
wholesaler
43
The development of commerce was encouraged by the desire to
Answer
(D)
satisfy all wants and needs
44
Which of the following is not a member of the Lake Chad Basin Commission
Answer
(C)
Gabon
45
A false statement made by one party with an intention of inducing to enter into a contract with him is known as
