Here are the extracted questions from the WASSCE June 2009 Commerce Objective Test
Questions as shown in the images:
WASSCE JUNE 2009 COMMERCE – OBJECTIVE TEST QUESTIONS
1. A person who invented a new machine for making beverages may protect his exclusive
right by
A. labelling the product
B. obtaining a patent
C. choosing a name for the product
D. obtaining a trade mark
2. Which of the following occupations come under the extractive industry?
I. Cattle-rearing, lumbering, farming
II. Mining, quarrying, hunting
III. Ship building, road construction, iron bending
IV. Singing, dancing, barbing
A. I, II and III only
B. I, II and IV only
C. I and II only
D. II and III only
3. Which of the following is sent by a supplier who does not want to sell on credit?
A. Proforma invoice
B. Quotation
C. Consular invoice
D. Advice note
4. Retail outlets that have identical store design, layout and stock display are
A. multiple shops
B. tied shops
C. mobile shops
D. supermarkets
5. Life assurance premium is determined by the assured’s
A. educational level
B. age
C. reputation
D. number of children
6. Which of the following is not a contract of indemnity?
A. Marine Insurance
B. Fire Insurance
C. Life Assurance
D. Burglary Insurance
7. A stale cheque is one on which the date for payment is
A. overdue
B. yet to come
C. missing
D. due
8. When an order cheque is endorsed it becomes a
A. confirmed cheque
B. bearer cheque
C. dishonoured cheque
D. cleared cheque
9. The authority given to a bank to make regular payments on behalf of a customer is
A. credit transfer
B. bank endorsement
C. standing order
D. bank overdraft
10. The taking over of privately owned businesses by the government is called
A. indigenization
B. commercialization
C. nationalization
D. privatization
11. The rate of turnover is the number of times within a given period that
A. stock is sold and replaced
B. closing stock is sold and replaced
C. purchases are added to stock
D. average stock is sold
12. Which of the following would be used when goods are sent through independent carriers?
A. Delivery note
B. Despatch note
C. Consignment note
D. Advice note
13. Which of the following is a feature of sole proprietorship?
A. Legal entity
B. Unlimited liability
C. Limited liability
D. Continuity
14. If a country devalues its currency, there would be
A. reduction in imports
B. reduction in exports
C. increase in production locally
D. increase in standard of living
15. Establishing and maintaining mutual understanding between an organization and its
customers is known as
A. marketing concept
B. advertising
C. public relations
D. sales promotion
16. Which of the following requires a certificate of trading to start business?
A. Public corporation
B. Public limited company
C. Cooperative society
D. Private limited company
17. A document through which the public is invited to subscribe to the shares of a company
is a
A. Memorandum of Association
B. Article of Association
C. Prospectus
D. Debenture
18. The tax paid on goods produced within a country is known as
A. import duty
B. excise duty
C. ad valorem duty
D. customs drawback
19. The letters R/D on a cheque shows that the cheque is
A. paid
B. dishonoured
C. certified
D. accepted
20. The mode of conveying liquids and gases through an underground channel is
A. pipeline
B. rail transport
C. road transport
D. sea transport
21. Which of the following is a source of capital to a sole proprietorship?
A. Loans from friends
B. Admission of new member
C. Issue of shares
D. Issue of debentures
22. A ship that travels without schedule is called a
A. passenger liner
B. tramp
C. cargo liner
D. tanker
23. For overstaying in a port, a ship is charged a fine called
A. dock due
B. commission
C. portage
D. demurrage
24. Stocks, shares and debentures traded in the stock exchange are called
A. bears
B. bulls
C. securities
D. collaterals
25. Which of the following is a reduction in the catalogue price?
A. Rebate
B. Cash discount
C. Commission
D. Trade discount
26. The document that helps to determine the country from where goods were imported is
A. bill of lading
B. ship’s manifest
C. certificate of origin
D. certificate of trading
27. The internal regulations of a limited company are stated in the
A. Memorandum of Association
B. Articles of Association
C. Certificate of Incorporation
D. Share Certificate
28. Which of the following features is common to all retailers?
A. Operating as sole-proprietors
B. Selling to the final consumers
C. Operating with small capital
D. Selling on time purchase to consumers
29. A private limited company differs from a public limited company because it
A. offers rights issues to existing shareholders
B. has a separate entity from the owners
C. cannot easily transfer shares
D. declares dividend
30. Exchange is facilitated by
A. taxation
B. quotas
C. specialization
D. good supervision
31. Which of the following is not a means of transportation by water?
A. Canoes
B. Launches
C. Tramps
D. Carts
32. The nominal value of KC Ltd’s share is 50k and the market value is 70k. This means that
the company shares are selling
A. at par
B. ex dividend
C. cum dividend
D. at premium
33. Those who are engaged in exploiting natural resources are in
A. commercial occupation
B. constructive occupation
C. manufacturing occupation
D. extractive occupation
34. A sale agreement whereby the buyer takes possession but not title to the goods is
A. credit purchase
B. hire purchase
C. auction sales
D. direct sales
35. Which of the following is not an example of Marine Insurance?
A. Fidelity
B. Hull
C. Cargo
D. Freight
36. The owners of a public limited company are
A. board of directors
B. management team
C. shareholders
D. government
37. Which of the following justifies the existence of public enterprises?
A. Making quick decision
B. Creating monopoly
C. Making profit for government
D. Providing essential services
38. Who among the following has no voting right?
A. Preferred ordinary shareholders
B. Ordinary shareholders
C. Deferred shareholders
D. Debenture holders
39. One of the main objectives of International Bank for Reconstruction and Development
(IBRD) is to
A. settle interbank indebtedness
B. lend to poor countries
C. oversee the activities of banks abroad
D. encourage trade liberalization among members
40. Which of the following is not a function of a commercial bank?
A. Collection of deposit
B. Safe custody services
C. Issuance of currency
D. Agent of payments
41. “P” in the diagram above represents
A. commerce
B. home trade
C. wholesale trade
D. entreport trade
42. What does “V” represent in the diagram?
A. Trade
B. Home trade
C. Retail trade
D. Commerce
43. The Police and the Army are engaged in
A. direct service occupation
B. indirect service occupation
C. industrial occupation
D. primary occupation
44. Which of the following are exclusively functions of marketing?
A. Buying, pricing, selling and promotion
B. Risk-bearing, storage, production and transporting
C. Organizing, risk-bearing, transporting and storage
D. Production, promotion, distribution and recruiting
45. A type of life policy where the assured or his dependents will not get anything if he did
not die within the period of the policy is known as
A. group policy
B. whole life policy
C. endowment policy
D. term policy
46. Which of the following note would be sent to a buyer to inform him that the goods he
ordered have been despatched?
A. Advice Note
B. Delivery Note
C. Credit Note
D. Consignment Note
47. The post office service that allows a traveller without a fixed address to collect his letter
is known as
A. poste restante
B. recorded delivery
C. speed post
D. express service
48. Which of the following is not a function of an entrepreneur?
A. Co-ordination
B. Risk bearing
C. Entertaining
D. Making decision
49. A place where dutiable goods are kept until duties on them are paid is known as
A. private warehouse
B. public warehouse
C. bonded warehouse
D. manufacturer’s warehouse
50. The cost of advertising is ultimately borne by the
A. manufacturer
B. consumer
C. wholesaler
D. retailer
WASSCE JUNE 2009 COMMERCE THEORY QUESTIONS
1.
(a) Differentiate between industry and commerce.
(b) List and explain four activities of those engaged in commercial occupations.
2. Explain five benefits that would be derived and five losses that would be suffered when a
sole trader admits other partners.
3.
(a) What is personal selling?
(b) List and explain six media available to an advertiser of goods and services.
4. Explain the following terms:
(a) fixed assets;
(b) certificate of trading;
(c) dividend;
(d) authorized capital;
(e) promoters
5. Describe each of the following documents and state one use of each:
(a) consular invoice;
(b) bill of lading;
(c) certificate of origin;
(d) bill of sight
6.
(a) Explain five functions of the Customs Authority.
(b) State five advantages of international trade.
7. Explain the following terms as used on the stock exchange market:
(a) Backwardation;
(b) Ex-div;
(c) Jobber;
(d) Jobber’s turn;
(e) Brokerage
8.
(a) Explain the following terms:
(i) goodwill;
(ii) trade mark;
(iii) copyright
(b) State four factors that could lead to the dissolution of a limited liability company
9.
(a) Distinguish between nationalization and indigenization
(b) State five advantages of nationalization and three disadvantages of indigenization
10. The following information is from the books of Aunti Justie, who sells books, for the
year ended 31/12/05:
Sales: 220,000
Stock 1/1/05: 60,000
Purchases: 180,000
Stock 31/12/05: 70,000
Salaries and wages: 8,000
Debtors: 16,000
Transport: 6,000
Rent: 5,000
Calculate (showing all workings) the:
(a) gross profit;
(b) average stock;
(c) net profit
