FIRST TERM

Examination malpractices may lead to a repeat of the subject or suspensions don’t be involved.

SUBJECT: COMMERCE TIME: 2HRS CLASS: SS 2

OBJECTIVE
1. A person who sells goods belonging to another person in his own name and receives
commission is a. a. wholesaler b. retailer c. sole trader d. factor
2. Foreign trade is also known as a. domestic trade b. international trade c. counter trade d.
entreport trade
3. Which of the following is an example of extractive industry?
a. sewing dresses b. constructing bridges c. baking bread d. digging for precious stones
4. A group of firms that produce similar goods or services is called
a. an industry b. a trade association c. a cartel d. a holding company
5. Which of the following is a reason why cooperatives continue to exist, despite increased
competition? a. they cannot become bankrupt b. they are not controlled in any way c. their profit are
greater than competitors d. members have a belief in cooperative ideals
6. A multi-purpose cooperative is one that a. sells a wide variety of goods b. is part of a multiple
chain of cooperatives c. engages in more than one type of business d. has multiple owners
7. A consumers cooperative differs from other types of business organizations because:
a. it shares its profit among its customers b. sells a variety of goods c. offers bargains at low
prices d. produces its own products
8. The function of wholesalers cooperative society is to:
a. only sell the products of producer cooperatives b. sell to retailers cooperatives c. grow the
food that retailers sell d. sell only specialist equipment in large quantities
9. Which one of the following is true concerning a consumers cooperatives?
a. each member has one vote b. shareholder have votes according to the number of shares they
hold c. members can only buy from their own co-op d. the member of owners is restricted to 20
10. Which is not an argument that supports public ownership of industry
a. the support of shareholders is more reliable b. profit benefit the whole nation c. it ensures
provision of essential services d. it assists the government in planning the economy
11. The best definition of a nationalized industry is :
a. a public company b. a municipal undertaking c. a state owned facility d. a business taken into
state ownership
12. Nigeria is considered a mixed economy because it :
a. provide a mix of goods and services b. has public and private sector firms c. imports and
exports goods d. has industrial and commercial firms
13. Which of the following is created by a government act?
a. a public limited company b. a private enterprise c. a pulic corporation d. a private limited company
14. The ownership of a public limited company are:
a. the government b. the shareholder c. the local council d. the local community
15. Which of the following is not included in the articles of association when a company is being
formed? a. the right of shareholders b. whether the company is private or public c. method of election
of directors d. the division of profits
16. Limited liability means: a. the business cannot make a loss b. the firm is either a private or a
public company c. shareholders are liable for the money have invested d. all employee are insured
against accidents
17. The type of business organization that is allowed to restrict the right of share transfer is called
a. a private company b. a public company c. a restricted company d. a public corporation
18. The document that gives a business a separate identity from that of its owners is:
a. memorandum of association b. articles of association c. insurance certificate d. certificate of
incorporation
19. When goods are in the form in which consumers want them, they are sold through:
a. the consumer market b. a commodity market c. the futures market d. a commodity exchange
20. Raw materials are:
a. graded materials b. dealers goods c. producers goods d. consumers goods
21. Which of the following can not be accurately graded? a. wheat b. tea c. cotton d. sugar
22. Which of the following goods would be sold by sample? a. copper b. tin c. wool d. rubber
23. Commodity exchange deal with goods such as:
a. machines sold by a manufacturer b. goods bartered for each other c. coffee,tea,cocoa and
sugar d. shoes
24. Which of the following is formed primarily to promote savings and loan among members:
a. consumer cooperative society b. producers cooperative society c. wholesalers cooperative
society d. credit and thrift cooperative society
25. A retailer cooperative society aims at
a. encourages member to save money b. buying seeds and fertilizers c. manufacturing goods as
cheaply as possible d. cutting off the profits of middlemen
26. Which of the following is sent as a reply to an inquiry?
a. tender b. estimate c. statement d. quotation
27. Which of the following is not a means of making payment to a business man
a. bank draft b. cash c. cheque d. statement
28. One means of making payments through the NIPOST is the
a. money order b. cheque c. standing order d. promissory order
29. One means of making payment through the bank is
a. cheque b. promissory note c. bill of exchange d. I owe you
30. One of the factor that determine the method of payment is
a. legal tender b. the urgency of payment c. stability d. durability
31. Activities which facilitate commerce include
a. engaging youths in environmental sanitation b. funding political campaigns
c. providing recreational facilities in communities d. improving road networks
32. One of a product of the construction industry is a
a. chair b. bag of cement c. piece of cloth d. television
33. A person authorized to sell the property of a company in winding up is
a. an auctioneer b. an agent c. a liquidator d. a bailee
34. The purchase and sale of goods over electronic system is
a. E _payment b. E_commerce c. E_mail d. E _transfer
35. Multilateral trade is carried out
a. between two countries only b. within many countries c. among many countries
d. between neighbouring countries only
36. An association of businesses engaged in both trade and industry is a
a. co-operative society b. trade union c. trust fund d. chamber of commerce

37. Which of the following is a source of short term finance to a business?

a. hire purchase b. overdraft c. lease d. debenture
38. One disadvantage of a sole trader is
 a. quick decision making b. unlimited liability c. pride of ownership d. unlimited sources
of capital
39. Which of the following is true of a debenture?
a. it's holders receive interest b. it form part of company authorized capital c. it's holders
are co owners of the company d. it's holders control the company
40. The path through which a product moves from the manufacturer to the consumer is a
a. channel of communication b. line of production c. means of transportation d. channel
of distribution
41. A business which requires a certificate of trading in order to commence operation is a
a. co-operative society b. private company c. sole trader d. public company
42. Exchange of goods in international market which does not involve the use of money is
a. barter trade b. entrepot trade c. counter trade d. bilateral trade
43. The functions of money do not include a. store of value b. medium of exchange c. double
coincidence of want d. means of deferred payment
44. A cheap means of carrying bulky goods over long distance is by a. rail b. road c. air d. pipeline
45. Production is said to be complete only when
a. demand for goods precedes supply b. goods and services meet the customers
specification c. goods and services reach the end user d. raw materials are supplied to
the firm
46. Which of these is not an example of constructive occupation?
a. bricklaying b. furniture making c. mining d. plumbing
47. The highest financial institution in Nigeria which implements the monetary policies of the
government is the ---------------bank.
a. central b. commercial c. development d. merchant
48. The person who contributes capital but does not take part in running the business is
called ------------------partner a. active b. dormant c. general d. nominal
49. The document given to Mr Samuel by Mr Johnson to acknowledge payment for goods
is known as a. credit note b. debit note c. invoice d. receipt
50. Mr enemali can be a part owner of a public limited liability company by ---------its shares
a. advertising b. buying c. marketing d. promoting
THEORY: ANSWER ANY FIVE QUESTION FROM THESE SECTION
1a. What is commerce?
b. Write short note on the following:
a. stock b. shares c. debentures d.overdraft e. retained profit
2a. Define cooperative society. b. list and explain the types of cooperative society
c. Define incorporation
3a. What is public enterprises?
b. state three problems of cooperative society
4a. Explain the requirement for trading
b. what are the constraint of commodity trading
5a. write short note on the following:
i. trade discount ii.cash on delivery iii. Free on board iv. Credit note v. invoice
b. explain the banking system under the means of payment
6a. define production (b) state the function of commercial banks
c. state the document used in foreign trade
7a. What is partnership? b. state function of central bank
c. state the contents of article of association
8a. What is a company?
b. State the features of co-operative society b. state the factors that determines types of occupation

ELIAS INTERNATIONAL SCHOOL

 ALPHA TERM EXAMINATION 2019/2020 SESSION
2-4 Old Otta Road Ile-Epo Bus Stop Oke-Odo, Lagos State
Examination malpractices may lead to a repeat of the subject or suspensions don’t be involved.

SUBJECT: COMMERCE TIME: 2HRS CLASS: SS 3

OBJECTIVE
1. A breach of contract will have occurred when:
a. the contract is accepted by someone b. all parties have done their part c. one party has failed to comply with
the agreement d. the contract has been discharged
2. For an acceptance to be valid it must be: a. qualified b. unqualified c. conditional d. in writing
3. A price tag on an article on display in a shop is :
a. an invitation to treat b. a consideration c. a counter offer d. an agreement
4. Payment made to a seller is:
a. a consideratioin b. an acceptance c. a counter offer d. an agreement
5. The term capacity refers to:
a. an ability to sign your name b. someone over the age of 18 c. an ability to act responsibly d. a void contract
6. The purpose of organization chart is to show the:
a. order in which tasks are organized b. line managers in an organization c. structure of an organization
d. method of communicating in an organization
7. A mission statement contains:
a. the functions of a business b. a summary of corporate strategy c. details of the span of control d. line of
authority
8. The manager of the production department consulting with the purchasing manager is an example of:
a. downward communication b. upward communication c. horizontal communication d. bottom-up
communication
9. The chain of command is the:
a. line of authority in an organization b. number of subordinates a manager supervises c. distribution of
decision making d. authority a manager has
10. Span of control is the:
a. number of subordinates answerable to a manager b. number of workers in a department c. manner in
which authority is shared d. line of authority in an organization
11. An organization chart shows the:
a. order in which tasks should be done b. types of business of the firm c. structure of a company d.
business interpersonal relationships
12. Which of the following members of a large company has overall responsibility for the day to day
running of business? a. chairman board of the directors b. managing director c. company secretary d. overall
day manager
13. The Nigeria stock exchange is a segment of the:
a. exchange market b. money market c. capital market d. Lagos market
14. Which of the following banks is concerned with raising money for a business through share issue? a.
central bank b. credit bank c. commercial bank d. merchant bank
15. The proportion of profits given to ordinary shareholders is called:
a. interest b. dividend c. yield d. equity
16. The most risky form of security investment is:
a. preference shares b. treasury bills c. debentures d. ordinary shares
17. The profit a jobber makes on trading is called: a. turn b. return c. interest d. dividend
18. Which of the following is not a factor of production? a. food b. land c. labour d.capital
19. How many parties are involve in a contract? a. two b. three c. five d.one
20. caveat emptor means a. sellers are informed b. buyers beware c. buyers readiness d. sellers beware
21. One of the following is not the right of an employee
a. right of be remunerated b. right to go on leave c. right to be indemnify d. right to steal
22. all the following except one is not the right of an employer
a. right to employ b. right to terminate appointment c. right to remunerate d. right to beat
23. Business registration is carried out by
a. corporate commission b. corporate affairs commission c. Christ apostolic church d. commission
association corporate
24. When a company is registered is issued a certificate called
a. certificate of registration b. certificate of incorporation c. memorandum of association d. article of
association
25. The 14 principle of management was postulated by
a. Henry ford b. Henry fayol c. Henry fashion d. bill Clinton
26. The seller transfer the property in goods to the buyers for a money consideration called
a. surplus b. deficit c. cost price d. the price
27. One of the following is the terms of contract of sale.
a. the surplus b. condition c. sales d. goods
28. Sale of goods act is enacted in a. 1896 b. 1983 c. 1893 d. 1988
29. The provision of the sales of goods act 1893 “right to sale” means
a. the goods are sold b. the seller have a right to pass a goods title c. the buyer has a right to pass a goods
title d. where the goods were sold by sample
30. The sole purpose of production is a. employment b. promotion c. consumption d. competition
31. A document through which invitation is extended to the public to subscribe to shares is
a. articles of association b. prospectus c. memorandum of association d. quotation
32. If the opening stock of Ali Ltd is #40,000,cost of goods sold is #48,000 and closing
stock is #24,000, it's rate of turnover will be a. 1.2 times b. 1.5 times c. 2.0 times d. 7.5 times
33. Which of the following features is not associated with a chamber of commerce? it is
a. democratically administered b. an independent association c. open only to entrepre-
neurs d. a voluntary association
34. The insurance policy taken to cover dishonesty of account personnel of an organization
is. a. employers liability b. fidelity guarantee c. life endowment d. marine insurance
35. A put option in the stock exchange is an option a. to sell b. not to sell c. to buy d. not to buy
36. informative advertising is aimed at
a. giving advice on the use a of product b. influencing customers to buy a product
c. giving gifts to attract customers d. encouraging specific customers to buy a product
37. A contract terminated by the occurrence of an event which makes performance impossi-
ble is discharged by a. breach b. agreement c. frustration d. performance
38. Which of the following is not a component of the marketing mix?
a. price b. place c. population d. product
39. A method of buying in anticipation of price fluctuation in the commodity market is
a. speculation b. arbitrage c. contango d. hedging
40. An individual employed to act on behalf of another within a specified guideline is
a. a jobber b. an agent c. a broker d. a distributor
41. The transfer of authority by a superior officer to his subordinate in an organization is
a. controlling b. decentralisation c. delegation d. directing
42. Which of the following is a modern means of communication?
a. grape vine b. e-mail c. whistles d. town crier
43. A company is quoted on the stock exchange when it's share are
a. put under private placement b. not for sale to the public c. listed for sale on the
exchange d. owned by the government
44. A government legislation which ensures that quality goods and services are available to
customers is
a. hire purchase act b. copyright act c. price control act d. standard organization act
45. An advertisement method whose objective is to convince customers to buy a product is
a. informative advertisement b. persuasive advertisement c. competitive advertisement
 d. mass advertisement
46. A system of issuing new shares to selected investors instead of public is a. public offer
b. issue by tender c. offer for sale d. private placement
Use the information below to answer questions 47 to 49.
The financial position of saiye enterprises as at 31st December 2015 is as follows :
#
Fixtures. 1,500
Stock 31st Dec. 10,000
Debtors. 6,000
Creditors. 4,000
Cash in hand. 8,000
Bank overdraft. 2,200
Typewriter. 5,500
Furniture. 3,500
Capital. 19,000
Profit for the year. 2,700
Three months co-operative loan 5,100
47. Calculate the capital owned a. #10,000 b. #12,700 c. #13,500 d. #23,200
48. calculate the current liabilities a.#6,000 b. #9,000 c. #10,000 d. #11,300
49. calculate the fixed assets a. #10,500 b. #11,500 c. #14,000 d. #17,500
50. The amalgamation of firms at different stages of production is known as
a. cartel b. holding company c. horizontal integration d. syndicate
THEORY
ANSWER QUESTION ONE ANYOTHER FOUR QUESTION FROM THESE SECTION
1a. What is management? b. explain the 14 principles of management
2a. Define business law b. What are the essential element of contract?
C. state the duties of an employee
3a. What is stock exchange? b. state the requirement of admission into first their security market
c. define hire purchase
4a. Define business b. State the reasons for government regulation of business c. What
are the functions of security and exchange commission?
5a. Explain the obligation of a seller b. state the duties of an agent
c. state the duties of the principal
6a. Define insurance b. explain the type of capital
c. state the features of hire purchase
7a. what are the remedies for breach of contract?
b. explain the reasons for termination of agency
8a. write short note on the following: I. bear II. bull III. stag Iv.broker v. jobbers
b. state the types of insurance