SECOND TERM

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SUBJECT: COMMERCE CLASS: SSS 2 TIME APPROVED: 2HRS
OBJECTIVE
1. Another name for installment is ……. a. credit loan b. overdraft c. loan d. hire
purchase
2. A retailer buy in bulk and sell in … a. trade discount b. bit c. cash discount d.
quantity discount
3. When a business sells the debts owed to it, this is called…….. a. leasing b.
factoring
c. deferred payment d. trade discount
4. In relation to credit the borrower is the a. debtor b. mortgage c. creditor d. lender
5. The following are types of security except a. a loan b. shares c. debentures
d. gilt edge
6. Which of the following is a function of trade association?
a. to promote local business activities b. to own shares in businesses c.
standardizing the quality
of product d. promotion of local business
7. The main aim of chambers of commerce is……… a. to own shares in businesses
b. to promote
local business activities c. to regulate entry into a profession d. to lobby government
policy makers
8. A consortium is a. another name for an asset stripper b. a company that owns
other companies
c. a parent company d. a group of business working policy
9. A restricted trade agreement …… a. controls prices b. promotes free trade c.
encourages fair
competition d. promote small businesses
10. A holding company is the same as …….. a. a parent company b. a subsidiary
company c. a trust
company d. a joint stock company
11. Which of the following risks is uninsurable? a. injury to a customer visiting a
shop b. the
failure of a business c. injury to an employee at work d. damage to stock due to
flooding
12. The document that sets out the details of an insurance contract is the
a. premium b. proposal form c. policy d. claim form
13. A basic principle of insurance is that the insured must not fail to disclose any
material fact. The principle is known as…… a. utmost good faith b. insurable interest
c. proximate cause d. subrogation
14. If a business person is paid #2000 by an insurance company for fire damage done
to their premises, this illustrates. a. insurable interest b. premium c. subrogation d.
indemnity
15. Which of the following risks can not be insured against?
a. fashion changes b. dishonesty by employees c. accidents to customers
d. a fire in a warehouse
16. My umbrella went rusty out in the rain and it leaked also. Which act covers this?
a. trade description act b. sale of goods act c. food and drugs act d. weights and
measure act
17. I went for a meal in a restaurant and got food poisoning. Which act covers this?
a. weights and measures act b. food and drugs act c. sale of goods act d. trade
description act
18. The sales ticket said the product was half price. I later found that this was not true.
I think I am
entitled to a refund because of the …….. a. trade description act b. sale of goods
act c. food and
drugs act d. weights and measures act
19. I opened a box of soap powder and found that the box was less than half full. The
act that
protects me is the…… a. food and drugs act b. sale of goods act c. trade
description act
d. weights and measures act
20. Which one of the following is not directly under government control?
a. the standard organization of Nigeria(son) b. health and sanitary inspection
agency
c. manufacturers association of Nigeria (man) d. consumer protection council (cpc)
21. The act of buying and selling goods and services is called ……a. communication
b. commerce
c. marketing d. money
22. Which of the following is the fastest means of transportation . a. road b. rail c. air
d. sea
23. The main advantage of rail transport is…… a. the large loads it can carry
b. the flexibility it offers c. the employment prospects it offers d. it is not labour
intensive
24. State which of the following is not a true advantage of sea transport?
a. does not rely on other forms of transport b. carries large loads economically c.
the route is free d. has access to most parts of the world
25. An air waybill is a. a route schedule for aircraft b. an instruction given to an
aircraft captain
c. the invoice for air cargo d. a receipt given for air cargo
26. The middle link in the chain of distribution is the a. wholesaler b. retailer c.
manufacturer
d. consumer
27. Which of the following is not an insurance principle? a. subrogation b. premium
c. proximate
cause d. indemnity
28. Which mode of transport would you suggest as the most suitable for container ?
a. air b. sea c. pipeline d. road
29. The insured is the ……. a. insurance company b. insurance company client c.
insurance
broker d. insurance agent
30. In the contract of sale of goods “let the buyer beware” is signified by
a. del credere b. uberrima fidei c. caveat emptor d. res ipsa loquitor
31. Which of the following is the function of Nipost?
a. issuing money order b. issuing dividend warrant c. issuing travelers cheque d.
minting coins
32. A trader who want to buy goods from another country sends
a. an advice note b. an invoice c. a bill of exchange d.an indent
33. The three main speculators found in the stock exchange market are
a. stag ,broker and bull b. bulls, bears and stags c. bears ,jobbers and stags d. bulls,
brokers
and bears
34. The process of buying from the producers and sell to the retailer is done by….a.
retailer
b. producer c. whosaler d. marketing mix
35. The assured is the a. insurance company b. insurance company client c. insurance
broker
d. insurance agent
36. In the contract of insurance uberrimei fidel is signified by
a. del credere b. utmost good faith c. caveat emptor d. res ipsa loquitor
37. The money paid to the insurance company is called? (a) policy (b) premium (c)
cover note
(d) proposal form
38. The following are sources of credit except ? (a) loan (b) overdraft (c) cash (d)
factoring
39. The means of transportation can be classified into (a) five (b) four (c) six (d)
seven
40. Organisations formed mainly by traders and manufacturers to cater for the interest
of their
members is called…… a. trade union b. co-operative societies c. trade
association
d. chamber of commerce
41. Which of the following is not an attribute of an effective business manager?
a. empathy b. subjectivity c. altruism d. objectivity
42. The amount of capital with which a new company proposes to be registered is
called
 a. called up capital b. nominal capital c. liquid capital d. fixed capital
43. Which of the following is not a quality of money? a. divisibility b. portability c.
accessibility
d. durability
Use the following information to answer question 44-46
A company had an authorized share capital of N50,000. It offered applicants
N40,000 share capital out of which the company collected 25,000.
44. What was the issued capital? a. N5,000 b. N30,000 c. N25,000 d.N40,000
45. What was the paid-up capital? a.N35,000 b. N30,00 c. N20,000 d. N15,000
46. What was the unissued capital? a. N35,000 b. N30,000 c.N15,000 d. N10,000
47. The essence of marketing is a. exchange b. sales c. trade d. research
48. Which of the following is not necessary when ordering goods?
a. trade journal b. letter of enquiry c. invoice d. order form
49. The process whereby a firm buys over the assets and liabilities of another firm is
known as a. amalgamation b. cartel c. factoring d. holding
50. Which mode of transport would you suggest as the most suitable for natural gas?
a. air b. sea c. pipeline d. road

THEORY
ANSWER QUESTION ONE AND ANY OTHER FOUR QUESTION
1a. What is credit ?
b. List and explain any five type of non life insurance
2a. Define insurance
b. Write short note on the following:
i. syndicate ii. Consortium iii. Cartel iv. Overdraft v. bill of exchange
c. State two function of chamber of commerce
3a. Explain the function of credit
b. What is consumer protection?
c. State the types of insurance
4a. Define indemnity
b. state the types of transportation and explain any three
c. What are the document used in transportation?
5a. Outline the instrument for consumer protection
b. Define consumerism
c. Highlight the sales of goods act(1979)
6a. Explain the constraint of commodity trading
b. Write short note on the following:
i. shares ii. Stock iii. Overdraft iv. Debenture v. factoring
7a. Write in full the following abbreviations as used in commerce:
COD ii. CIF iii. FOB IV. E. AND O.E
b. The sale of customer goods costing N200,000 attracts a cash discount of 81/2 %,
trade discount 6 ½ %. calculate the: (a)Value of the quantity discount b. value of the
cash discount c. net amount of money payable by the buyer
8a. Differentiate between fire insurance and burglary insurance
Explain the features of syndicate and cartel
What is transportation?