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 2010 JAMB COMMERCE QUESTIONS

PAPER TYPE: B 4. A doctor who attends to

patients at home after his official
1. Which Commerce Question duty is?
Paper is given to you?
A. a community development
A. Type A worker
B. Type B B. a direct service worker
C. Type C C. an indirect service worker
D. Type D D. a direct and an indirect service
worker
2. The wealth of a nation depends
on the volume of its? 5. Manufacturing and constructive
activities are classified under?
A. bilateral trade activities
B. commercial activities A. primary production
C. multilateral trade activities B. tertiary production
D. stock market C. secondary production
D. direct service
3. Which of the following can be
used to differentiate skilled and 6. The rewards of rents, wages,
unskilled labour? interests and profits accrue from?

A. Education and training A. capital, labour, land and

B. Available resources entrepreneur respectively
C. Level of commitment B. land, entrepreneur, labour and
D. Salaries and wages capital respectively
C. land, labour, capital and
entrepreneur respectively

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D. labour, entrepreneur, land and A. a retailer
capital respectively B. a wholesaler
C. an agent
7. The factor of production that is D. an entrepreneur
subject to depreciation is?
11. A trend in retailing which
A. capital enables consumers to have free
B. land access to different products is?
C. labour
D. entrepreneur A. after-sales services
B. branding
8. Division of labour ultimately C. self-services
leads to? D. vending machine

A. conservation 12. The activity which entails

B. integration buying of goods in bulk and
C. specialization selling in small quantities to
D. repetition retailers is?

9. A worker who process rice is A. assembling

engaged in? B. wholesaling
C. retailing
A. constructive activity D. merchandising
B. commercial activity
C. extractive activity 13. The comparison of a country's
D. manufactural activity visible and invisible exports and
imports expressed in monetary
10. After-sales service is a term is?
function usually rendered by?

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A. balance of payment A. dock landing account
B. terms of trade B. bill of sight
C. balance of trade C. bill of lading
D. terms of payment D. dock warrant

14. The document that gives an 17. The details of the goods
importer a freehand to obtain required by the purchaser is
goods from any manufacturer is? outlined in?

A. a consular invoice A. a consular invoice

B. a closed indent B. an indent
C. an open indent C. an invoice
D. a freight note D. a certificate of origin

15. Entrepot trade usually occurs 18. Selling goods in foreign

in? countries at price below their
marginal cost is?
A. exchanging goods within a
nation A. dumping
B. exchanging goods among B. depreciation
countries C. devaluation
C. importing goods to be re- D. discounting
exported
D. exporting goods to be re- 19. A process of creating more
imported market for a product is through?

16. The document issued to a port A. consumerism

authority when goods are B. marketing
deposited is a? C. advertising

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D. repositioning D. covering damages to the body
of the ship
20. One of the merits of television
as a medium of advertising is that 23. An agent who brings a
it? customer into business contact
with his principle is known as?
A. is prone to censorship
B. is relatively cheap A. a del credere agent
C. has more sensory stimulation B. an auctioneer
D. has more network coverage C. a factor
D. a broker
21. The best mode of ensuring
that items posted got to the 24. A major hindrance to tourism
named address through? growth in Nigeria is?
A. absence of genuine tour
A. recorded delivery operators
B. registered mail B. lack of tourism master plan
C. certificate of posting C. inadequate tourist centres
D. express mail D. non-compliance to immigration
laws
22. A businessman who
undertakes the hull insurance 25. The warehouse that is owned
policy is aiming at? and controlled by the government
is a?
A. concerting losses on damages
to the cargo A. wholesalers' warehouse
B. protecting injured crew in the B. public warehouse
ship C. state warehouse
C. averting payment of the freight D. manufacturers' warehouse

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26. One of the main features of a issued N36,000 shares at 150k
partnership is? each. What is its capital?

A. limited liability A. ₦60,000

B. lack of corporate existence B. ₦36,000
C. unlimited membership C. ₦54,000
D. lack of mutual confidence D. ₦90,000

27. An arrangement by 30. One of the functions of

independent firms to share the NACCIMA is?
market of their products on quota
basis is referred to as? A. negotiating with labour unions
in matters of wages and
A. trust conditions of service
B. integration B. pooling of members' resources
C. syndicate for longterm investment
D. cartel C. disseminating information to
members on matters relating to
28. An illegal arrangement by tariffs
manufacturers to control the price D. ensuring uniformity in labour
or condition of sale in a product is matters and industrial relations

A. Ring 31. A characteristics of money

B. factoring which ensures that its value is not
C. consortium lost is?
D. merger
A. homogeneity
29. A public company with an B. easy portability
authorized capital of N60,000, C. divisibility

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D. relative scarcity A. recruitment, interview and
appointment
32. The instrument used in the B. recruitment, test and
capital market is? placement
C. recruitment, selection and
A. treasury bills appointment
B. bill of exchange D. recruitment, selection and
C. stock placement
D. debenture
35. Which of the following is a
33. A per-requisite for admission matter of personal preference on
into the Second Tier Securities the part of a superior officer?
Market is for a company to?
A. Unity of command
A. make 20% of its equity share B. Span of control
available to the public for C. Delegation of authority
subscription D. Unity of direction
B. have a minimum of 100
shareholders 36. The conversion of raw
C. have a maximum of 100 materials into finished goods
shareholders leads to the creation of?
D. make 10% of its equity share
available to the public for A. form utility
subscription B. product utility
C. possession utility
34. The three components of D. place utility
staffing are?
37. The main concern of
marketing concept is to?

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A. reduce the number of retail A. trademark
outlets B. branding
B. identify consumer needs and C. packaging
satisfy them D. patent right
C. increase sales to meet
consumer needs 41. An opportunity to reject a
D. encourage division of labour binding contract at will by a third
party is said to be a?
38. The best pricing strategy for a
company that produces warm A. valid contract
clothing is? B. quasi contract
C. voidable contract
A. target return pricing D. conditional contract
B. bid pricing
C. variable pricing 42. An agency contract must
D. product line pricing involve?

39. The deliberate and sustained A. a principal and a consumer

efforts of an organization towards B. a principal and a producer
the creation of goodwill for its C. a principal and a third party
products and services is through? D. a principal and an agent

A. public relations 43. The difference between

B. advertising trademark and patent right is that
C. sales promotion the latter?
D. rebranding
A. gives exclusive right to import
40. The label on a product such a particular good
as 'pampers' is a type of? B. is conferred by the government

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C. confers monopoly on a product 47. The major problem
D. confers exclusive right to confronting Cyber Cafe operators
publish literary works is?

44. Which of the following is a A. advance fee fraud by clientele

function of consumerism?
A. Protecting consumers' rights
B. providing consumers' choice
C. providing consumers' needs
D. Making profiteering impossible
45. A printed copy of processed
information from the computer is
the?
A. soft copy
B. file copy
C. scanned copy
D. hard copy
46. The central working system of
a computer used for
processing is the?
B. poor network coverage
C. high operating costs
D. copyright violations by clients
48. A device that enables the
downloading of information from
the internet is the?
A. floppy drive
B. compact disk
C. modem
D. Bluetooth
49. In e-banking, ATM means
A. Authentic Teller Machine
B. Automatic Teller Machine
data C. All-purpose Teller Machine
D. Automated Teller Machine

A. memory unit 50. One way by which a business

B. monitor can discharge its social
C. floppy disk drive responsibility to its community is
D. hard drive to?

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A. hold monthly meetings of its Facebook Study Group
customers
B. building houses for its If you need an explanation to
executives any of the answers or you want to
C. award scholarship to staff download more past questions
children for FREE.
D. build public health centres
Click to ENTER our Facebook
ANSWER KEYS study group

1. B 2. B 3. A 4. B 5. C 6. C 7. A
8. C 9. D 10. A 11. C 12. B 13. C
14. C 15. C 16. D 17. C 18. A
19. C 20. C 21. B 22. A 23. D
24. B 25. B

26. B 27. D 28. C 29. C 30. D

31. D 32. C 33. D 34. D 35. C
36. A 37. B 38. D 39. A 40. A
41. C 42. D 43. C 44. A 45. D
46. B 47. C 48. C 49. D 50. D

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 2011 JAMB COMMERCE QUESTIONS

PAPER TYPE: C B. manufacturing, industry and

services
1. Which question paper Type of C. farming, banking and trading
commerce is given to you? D. industry, commerce and
services
A. Type A
B. Type B 4. An oil exploration company is
C. Type C engaged in?
D. Type D
A. tertiary production
2. The most important function of B. constructive occupation
commerce is in? C. extractive occupation
D. secondary production
A. enhancing business
relationships 5. Service rendered to the public
B. helping people to improve their is provided by?
profits
C. facilitating exchange among A. government
individuals and firms B. civil servants
D. assisting trade through C. professionals
banking and insurance D. domestic servants

3. The three main classification of 6. The creation of goods and

occupation are? services to satisfy human wants is
referred to as?
A. construction, trade and
services A. manufacturing
B. commercialization

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C. production From the diagram above, what
D. entrepreneurship does I stand for?

7. Which of the following is a A. Aids to trade

limitation of division of labour? B. Publicity
C. Home trade
A. Decline in craftsmanship D. Advertising
B. Monotony of work
C. Reduction in output 10. An individual that links the
D. Reduction in labour force producer with the retailer is?

8. Resources obtained from the A. an agent

extractive sector that are B. a wholesaler
transformed into finished products C. an entrepreneur
are examples of? D. a principal

A. primary production 11. One of the functions of a

B. tertiary production retailer is the?
C. direct production
D. secondary production A. financing of production
activities
9. Commerce B. provision of credit facilities to
relations
Trade I C. provision of jobs for customers
D. breaking of bulk
II Foreign

Export Import 12. The main aim of selling

Retailer Wholesaler
directly to the consumers by
manufacturers is to?

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A. reduce transportation cost 15. A document that indicates
B. make contact with individual obligation that is transferable by
consumers delivery and endorsement is a?
C. discourage the activities of
middlemen A. bill of lading
D. maximize profit margin B. bill of exchange
C. documentary evidence
13. Balance of payment problems D. negotiable instrument
arise if a country's?
16. The document which can be
A. exports are more than imports exchange for a bill of lading is?
B. imports are more than exports
C. currency devaluation A. freight note
D. invisible exports are more than B. mate receipt
visible exports C. export invoice
D. ship report
14. The three components of a
country's balance of payments 17. The price quoted which
are? includes the cost of insurance,
freight and all delivery charges to
A. current account, capital the importer's warehouse is?
account and monetary movement
account A. Free Alongside Ship
B. capital account, trade account B. Franco
and business record C. Free on Board
C. sales account, profit and loss D. Free on Rail
account and capital account
D. monetary movement account,
trade account and sales ledger

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18. The purchase of goods under 21. The major source of income
the CWO system of payment to commercial banks is?
implies that?
A. loans
A. money must be enclosed when B. deposits
ordering C. interest
B. payment must be made on D. overdrafts
delivery
C. payment must be made within 22. An ancillary to trade that
few days easily links suppliers with
D. cash must be paid on the spot consumers is

19. The most effective nut limited A. tourism

medium of advertising in Nigeria B. banking
is? C. communication
D. transportation
A. billboard
B. television 23. Mr. Lawal insured his
C. newspaper warehouse against burglary but it
D. radio was later gutted by fire. This
implies that?
20. A cheque that has been drawn
but not presented for payment A. the loss should be borne by the
can still be honoured? insurer
B. Mr. Lawal is liable only for half
A. within 6 months of the estimated loss
B. after 9 months C. the insurer should make a
C. within 9 months consolation payment for the loss
D. after 6 months

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D. the loss should be borne by Mr. B. limitation in scope
Lawal C. vulnerability to climate
changes
24. The agreement of insurers to D. high maintenance cost
spread risks among themselves is
a major feature of? 27. The business organization
that can effectively combine
A. reinsurance management with control is?
B. life insurance
C. underwriter A. private limited liability
D. marine insurance company
B. sole proprietorship
25. Inbound tourism occurs C. public limited liability company
when? D. co-operation society

A. non-residents of a country 28. When two or more companies

travel to other countries agree to execute a project too
B. resident of a country travel to large for one to handle, this is
another country referred to as?
C. non-resident of a country
travel within it A. an amalgamation
D. resident of a country travel B. a cartel
within it C. a merger
D. a consortium
26. One of the major
disadvantages of pipeline 29. In the event of voluntary
transportation is its? liquidation, the appointed of a
liquidator is the responsibility of
A. high cost of construction the?

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A. directors C. government official on the
B. creditors exchange
C. promoters D. a quoted company
D. court
33. Second-tier Securities Market
30. A source of business financing differ from the First-tier Securities
which involves pledging of a Market in that the former is?
specific asset is?
A. highly restricted
A. bond B. regulated by the SEC
B. mortgage C. regulated by the NIPC
C. debentures D. less restricted
D. loan
34. A communication process
31. An example of a trade providing information for decision-
association is? making in an organization is the?

A. ALGON A. Management information

B. NLC System
C. NURTW B. Transmission Control Protocol
D. NULGE C. Information Retrieval System
D. File Transfer Protocol
32. A broker is an agent who links
a potential investor with? 35. The managerial ability of a
supervisor in an organization may
A. a shareholder who wants to be underutilized if the?
register a company
B. other members of the A. morale of the supervised is
exchange who want to trade high

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B. span of control is wide
C. span of control is narrow
D. morale of the supervisor is low
36. The arrangement
interrelationship of the various
components and positions of a
business is referred to as?
A. organizational structure
B. clarity of objective
C. unity of direction
D. line structure
37. The variety of goods and
services which a company offers
for sale is its?
A. place mix
B. promotion mix
C. price mix
D. product mix
38. Activities undertaken
create awareness for goods by
conducting contest is?
A. marketing concept
B. consumerism
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C. sales promotion
D. marketing mix
39. The slogan, a wonderful
and world, used by a communication
network is a form of?
A. product differentiation
B. persuasive advertising
C. publicity
D. packaging
40. To make a simple contract
valid, the intention must be?
A. legal and written
B. legal and binding
C. legal and attractive
D. legal and harmonious
41. The major parties to an
agency relationship are the?
to A. principal and the creditor
B. Bailee and the bailor
C. principal and the agent
D. shareholder and the creditor
42. One of the obligations of an 45. An example of a computer
employer to an employee is to? operating system is?

A. indemnify him against liabilities A. the PageMaker

incurred on duty B. the Word Perfect
B. award scholarship to his C. Microsoft Word 2000
children D. Windows 2000
C. terminate his appointment
without prior notice 46. Intranet differs from extranet
D. indemnity him against injuries in that the former?
caused through negligence
A. requires a modem before it
43. The body charged with the could be used
responsibility of regulating foods B. can generally be accessed by
and drugs in Nigeria is the? the public
C. is restricted to employees of an
A. SON organization
B. NDLEA D. requires internet protocols
C. NAFDAC
D. CAC 47. A software application which
enables a user to display and
44. The physical components of a interact with texts, images and
computer system refers to the? videos is the?

A. system unit A. web server

B. hardware B. Internet Protocol
C. software C. CorelDraw
D. compact disk D. web browser

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48. A predominant make-up D. invites the public to its annual
language for web pages is the? general meetings

A. IP
B. HTTP
C. HTML
D. TCP

49. The symbol at in an internet

mail address is used to?

A. separate the user name from

the machine name
B. link the user with other
Internet users
C. locate the addresses of
Internet users
D. link the user with the machine

50. A business organization is

said to be socially responsible
when it?

A. gets involved in issues relating

to the society
B. rewards its staff for long-term
service
C. offers discounts to customers

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 2012 JAMB COMMERCE QUESTIONS

PAPER TYPE: PURPLE D. shoemaking

1. Which question paper type of 4. One of the inputs in production

commerce as indicated above is that can be motivated by
given to you? remuneration is

A. Type Green A. capital

B. Type Purple B. entrepreneur
C. Type Red C. labour
D. Type Yellow D. land

2. One of the major benefits of 5. The allocation of tasks to

commerce to government is to
A. improve the standard of living
B. generate revenue for growth
and development
C. encourage cooperation among
public organisations
D. encourage the development of
sociocultural values
3. An example of an activity in the
construction industry is
different skills in a production
process is referred to as
A. production technique
B. production function
C. division of labour
D. delegation of responsibility
6. The sales of goods through a
medium that accepts money and
delivers the items to the customer
is

A. blacksmithing A. an automated teller machine

B. bricklaying B. a vending machine
C. car assembling C. a counting machine

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D. a branding machine 10. The document a seller uses in
dispatching goods to a customer
7. The main purpose of branding by a carrier is
is to
A. a bill of landing
A. create identity for a product B. an invoice
B. make a product look attractive C. an advice note
C. create product awareness D. a delivery note
D. increase sales volume
11. A document which serves as
8. The basis for international an order with details of goods
trade is embedded in the principle required by an intending
of purchaser is

A. absolute advantage A. a freight note

B. globalization B. an indent
C. deregulation C. a bill of landing
D. comparative advantage D. a way bill

9. The major problem 12. If a customer pays within nine

encountered in international trade days of receiving goods and takes
is that of advantage of 3% off the invoice
price, this is stated as
A. distance
B. differences in culture A. 3/9;net 30
C. politics B. 9/27;net 30
D. differences in currency C. 30;net 9/3
D. 9/30;net 3

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13. Which of the following is a
characteristic of a bearer cheque?
A. it is made with transverse lines
B. it is made payable to whoever
presents it
C. it is made without transverse
lines
D. it is only payable into the
payees account
14. A bill of exchange paid before
its due date at an amount less
than its face value is said to have
been
A. accepted
B. rejected
C. discounted
D. dishonoured
15. The most effective type of
advertising for branded products
is
A. mass advertising
B. persuasive advertising
C. informative advertising
D. competitive advertising
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16. A current account holder pays
fees for services in form of
A. bank charges
B. interest rates
C. commission on turnover
D. minimum lending rate
17. Printed messages sent by
cable are recorded as
A. telegram
B. SMS
C. telex
D. MMS
18. Communication is relevant to
business activities because it
A. creates wealth for people
B. reduces the cost and risk of
travelling
C. connects people
D. enhances delivery of goods and
services
19. The right of an insurance
company to stand in place of an
insured against a third party, who
is liable for the occurrence of a B. opening values for leaving the
loss, is the principle of country
C. economic development and
A. proximate cause naturalization
B. insurable interest D. exploiting the country's natural
C. insurance priority endowment
D. subrogation
23. The type of letters that are
20. Assurance is different from delivered through the normal mail
insurance in that the former is or by airmail express service is
based on referred to as

A. probability A. inland letters

B. possibility B. registered letters
C. risk C. airmail letters express letters
D. uncertainty D. express letters

21. A person who undertakes life 24. A business organization that

insurance is said to be an exploits the capabilities of a
member to remedy the
A. insurer weaknesses of another is
B. assurer
C. assured A. joint venture
D. insured B. partnership
C. nominal partnership
22. Tourism serves the purpose of D. cooperative

A. cross-cultural understanding 25. The most important business

and peaceful interaction objective is to

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A. improve investments 28. A business organization can
B. provide quality products obtain long term financing
C. target consumers for through
satisfaction
D. carve a niche for the business A. bank overdraft
B. the sale of shares
26. In case of a liquidation of a C. credit purchases
public limited liability company, D. bureau de change
those that are first paid are
29. The portion of the authorized
A. ordinary shareholders share capital given out to the
B. preference shareholders public for subscription is
C. cumulative preference
shareholders A. called-up capital
D. debenture holders B. issued capital
C. paid-up capital
27. A feature common to public D. reserved capital
and private limited liability
companies is that 30. A company has an authorized
capital of 40 million shares at N1
A. both can sue and be sued each, out of which 32 million are
B. the minimum number of their issued and fully paid-up. What
shareholders is five happens to the remaining 8
C. the transfer of their shares is million shares?
not restricted
D. their annual accounts are A. it has been issued but not
published for public use paid-up
B. it has been applied for but not
issued

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C. it is not paid-up 33. The main objective of a trade
D. it has not yet been issued association is to

31. If the rate of turnover of a A. protect its members against

company in 1999 was 4 times litigation
while the average stock was B. boost the trade of its members
₦49,600, determine the turnover. C. secure credit for its members
D. protect its members against
A. ₦199,400 victimization
B. ₦198,400
C. ₦100,200 34. The promotion and protection
D. ₦99,200 of trade industry and agriculture
through trade fairs is a function of
32. Given:
opening stock ₦1,800 A. NACRDB
purchases ₦2,800 B. NACCIMA
sales ₦8,000 C. the consumer protection
closing stock ₦ 350 council
carriage on sales ₦ 500 D. the chamber of commerce

Calculate the value of the unused 35. Dealing in quoted securities

stock. on the Nigerian Stock Exchange is
restricted to authorized
A. ₦800
B. ₦500 A. companies
C. ₦350 B. brokers
D. ₦320 C. investors
D. principals.

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36. Securities that entitle the A. be rigid
investor to coupon rates are B. show government policy
C. facilitate communication
A. bonds D. be acceptable
B. equities
C. warrants 40. An organization which focuses
D. treasury bills on consumer satisfaction is
practicing
37. Under what management
function will the motivation of A. consumerism
employees fall B. market segmentation
C. selling concept
A. staffing D. marketing concept
B. controlling
C. organizing 41. Good and services are made
D. directing available to consumers through

38. The promotion of team spirit A. the channel of distribution

in an organization is referred to B. sales promotion
as C. the advertising agency
D. the middle men
A. unity of direction
B. espirit de corps 42. A person who in consideration
C. unity of purpose for an extra commission takes
D. discipline responsibility for goods sold on
credit and in case of default is a
39. One of the characteristics of a
good organizational chart is that it A. commission agent
should B. del credere agent

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C. broker 45. The process of decoding data
D. factor in a computer is known as

43. Yahaya bought a piece of A. dilution

furniture on a credit sale B. default drive
agreement from Ahmed and C. decryption
resold it to Ali before all D. data security
instalments were made. The court
upheld that Ahmed could not 46. Which of the following is a
recover possession of the items type of system software?
from Ali. The reason for the
judgement was because A. utility programmes
B. registers
A. ownership was transferred on C. hard drives
completion of instalment D. packages
B. ownership was transferred on
delivery 47. Computers that process all
C. Yahaya could not pass title to a data as binary zeros and ones are
third party
D. Ali was still indebted to Yahaya A. analog computers
B. digital computers
44. The body which ensures that C. hybrid computers
consumers are protected against D. desktop computers
harmful products in Nigeria is
48. Modern means of payment is
A. NAFDAC greatly facilitated by
B. NDLEA
C. SON A. e-commerce
D. CPC B. paper money

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C. e-banking 26. D 27. A 28. B 29. B 30. D
D. credit transfer 31. B 32. C 33. D 34. D 35. B
36. B 37. B 38. A 39. C 40. D
49. The provision of quality and 41. A 42. B 43. B 44. A 45. C
safe products which guarantee 46. A 47. B 48. C 49. A 50. C
the health of consumers is an
example of Facebook Study Group

A. quality control If you need an explanation to

B. price control any of the answers or you want to
C. civic responsibility download more past questions
D. social responsibility for FREE.

50. A business organization must Click to ENTER our Facebook

always consider the overall effect study group
of its actions on the

A. competitor
B. product
C. profit
D. society

ANSWER KEYS:

1. B 2. B 3. C 4. C 5. C 6. B 7. A
8. D 9. D 10. D 11. B 12. D 13.
B 14. C 15. C 16. A 17. A 18. B
19. C 20. B 21. D 22. D 23. C
24. D 25. C

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 2013 JAMB COMMERCE QUESTIONS

PAPER TYPE: D 4. The final link in the chain of

distribution is
1. Which question paper Type of
commerce is given to you? A. middlemen
B. wholesaling
A. Type D C. consumer
B. Type I D. retailing
C. Type B
D. Type U 5. A country is said to be
experiencing an unfavourable
2. The type of labour that makes balance of trade if her
use of physical effort in
production processes is the A. exports exceed imports
B. visible exports exceed visible
A. unskilled labour imports
B. skilled labour C. imports and exports are equal
C. blue-collar job D. visible imports exceed visible
D. white-collar job exports

3. The assembling of products 6. Trading position of Nigeria is

into usable forms is known as the same as her

A. creation A. desire to trade with many

B. manufacturing countries
C. construction B. willingness to grant credit to
D. formation foreigners
C. balance of trade
D. terms of trade

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7. The role of customs and D. close indent
exercise authority includes the
10. A country's terms of trade are
A. provision of a good transport said to improve when the ratio of
system to facilitate imports and her export
exports
B. provision of security at the port A. decreases
C. control of the flow of goods in B. remains constant
and out of the country C. increases
D. provision of dockyards for ship D. equals import
repairs
11. Which of the following
8. The document lodged with the advertising medium appeals to
customs authorities before a ship only the literate in the society?
can leave the port is a
A. radio advertising
A. shipping note B. print media advertising
B. ship report C. television advertising
C. ship manifest D. cinema advertising
D. dock warrant
12. The two main forms of
9. The document which must be communication are
endorsed by the ambassador of a
country of destination before A. oral and written
shipment of goods is a B. verbal and non-verbal
C. e-mail and fax
A. consular invoice D. traditional and modern media
B. certificate of origin
C. bill of lading

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13. The most reliable and efficient A. ₦5000
means of conveying urgent B. ₦7, 500
documents is through C. ₦70, 000
D. ₦75, 000
A. postal order
B. ordinary letters 16. What insurance principle has
C. registered letters Mr. P Violated if he decides to
D. courier services overstate the actual value of his
property?
14. An undertaking given by a
person to another assuring his A. Indemnity
integrity is B. Insurable interest
C. Uberrimae fidei
A. proximate cause D. Subrogation
B. fidelity guarantee
C. subrogation 17. The difference between
D. insurable interest indemnity insurance and non-
indemnity insurance is that the
Use the table below to answer latter provides
question 15 and 16.
A. cover for exporters against
Name Insured Actual Actual risks
Amount Value (₦) Loss (₦)
(₦) B. cover for importers against
Mr.N 25,000 100,000 30,000 risks
Mr.R 30,000 120,000 40,000
Mr. P 40,000 150,000 50,000 C. full payment to the insured
D. consolation payment to the
15. If Mr. N takes a fire insurance insured
policy with average clause, his
compensation will be

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18. An importance of warehousing 21. Which of the following will not
is in the be stated in a Memorandum of
Association?
A. production of goods
B. transportation of goods A. Name clause
C. importation of goods B. rights of shareholders
D. repackaging of goods C. object clause
D. registered office
19. In order to increase the
capital owned, a sole trader may 22. The amount of authorized
capital that shareholders have
A. seek for bank loan subscribed to is
B. issue debentures
C. acquire extra shop fittings on A. issued share capital
credit B. authorized share capital
D. draw less of his profit for C. owner's equity
personal use D. working capital

20. A business partner who 23. The rate of turnover of a firm

provides capital but abstains from in a given year is 5 times while
participation in administration of a the average stock is ₦12,500.
firm is a What is the turnover of the firm?

A. general partner A. ₦24,000

B. nominal partner B. ₦46,500
C. secret partner C. ₦62,500
D. dormant partner D. ₦65,000

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24. A lawyer that defrauds his
client may be derobed by the
Nigerian Bar association in order
to
A. protect other lawyers
B. protect the integrity of the
association
C. compensate the affected client
D. prevent the client from suing
the association
25. In the Nigerian GSM industry,
a parliament is organized by the
Nigerian Communications
Commission in order to
A. the Federal Government
B. Manufacturers'' Association of
Nigeria
C. Ministry of Commerce and
Industry
D. Chambers of Commerce
27. Money is generally accepted
for transactions due to
A. the legal backing
B. the rule of law
C. its acceptability in the global
market
D. the Central Bank Governor's
signature

A. increase profit of service 28. Which of the following is a

providers quality of money?
B. protect the interest of
government A. Availability
C. encourage more people into B. Scarcity
the business C. Indivisibility
D. protect the interest of D. Convertibility
consumers
29. Money can simply be referred
26. Trade fairs in Nigeria are to as a
organised by
A. measure of value

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B. standard of value D. functional structure
C. means of settlement
D. durable asset for doing 33. In a staff-authority
business relationship, the opinion of a
specialist in one department to
30. Gilt-edged securities are another is
issued mainly by
A. a directive
A. individuals B. an advice
B. non-governmental C. a command
organisations D. a delegation
C. Government
D. multi-national companies 34. Management of a business
involves the development of ideas
31. The initial function of a for the
manager is
A. distribution of goods and
A. setting up an organisation services that human wants
B. coordinating B. transportation of goods and
C. planning services that human wants
D. provision of welfare package C. transfer of title of ownership of
goods and services to individuals
32. The most suitable D. production of goods and
organizational structure for small services that satisfy human needs
or medium sized enterprises is
35. Which of the following is used
A. line structure as a pricing policy?
B. staff structure
C. committee structure A. Packaging

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B. Market selection D. specialty contract
C. Labelling
D. Market skimming 39. An agent employed to sell
goods delivered to him by the
36. The essential utility derived principal is referred to as a
from the use of a product is
known as A. special agent
B. del credere agent
A. augmented benefit C. factor
B. branded benefit D. universal agent
C. core benefit
D. formal benefit 40. A motor dealer who agreed to
sell a car to Mr. X but delivered it
37. The breaking down of a to Mr. Y on the delivery date
market into separate and agreed with Mr. X. He has
identifiable elements is known as discharged the contract by

A. differentiation A. performance
B. segmentation B. frustration
C. skimming C. an agreement
D. penetration D. breach

38. A contract that is 41. A contract can be terminated

acknowledged before the law through
court is referred to as
A. physical combat
A. informal contract B. family intervention
B. formal contract C. frustration
C. contract of records D. consultation

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42. The right to retain possession A. software
of goods until the contract price is B. hardware
paid is referred to as C. hard disk
D. floppy disk
A. a promise
B. ultra vires 46. A computer accessory through
C. a breach which information can be
D. a lien retrieved is the

43. The sole legal right held by A. hard disk

the author to publish his book is B. input device
C. control unit
A. trademark D. floppy disk
B. copyright
C. patent right 47. The type of computer
D. bookmark software used mainly for
management information is
44. The process of transferring
data from one computer to A. Corel draw
another is referred to as B. AutoCAD
C. data base
A. downloading D. word perfect
B. faxing
C. browsing 48. To meet security
D. decoding requirements before gaining
access to data, a computer
45. The physical component of a operator supplies
computer system is
A. an e-mail address

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B. a yahoo address 26. D 27. A 28. A 29. A 30. C
C. a password 31. B 32. A 33. B 34. D 35. D
D. a modem 36. C 37. B 38. B 39. B 40. D
41. D 42. A 43. B 44. A 45. B
49. A major factor that affects 46. D 47. C 48. C 49. A 50. C
business operations is

A. technology
B. supply
C. product
D. rivalry

50.The environmental hazard that

is most difficult to control is

A. land pollution
B. water pollution
C. air pollution
D. political unrest

ANSWER KEYS:

1. A 2. A 3. C 4. C 5. D 6. A 7. C
8. C 9. B 10. C 11. B 12. B 13. D
14. B 15. B 16. C 17. D 18. A
19. D 20. D 21. C 22. B 23. C
24. B 25. D

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 2014 JAMB COMMERCE QUESTIONS

PAPER TYPE: L 4. The payment for direct service

is usually made by the
1. Which paper type of commerce
is given to you? A. local authority
B. community
A. Type F C. government
B. Type E D. individual
C. Type L
D. Type S 5. An important feature of land is
that it
2. Cooperation and friendliness
are enhanced among nations A. has an elastic supply
through interdependence B. is an active factor of production
necessitated by C. is heterogeneous in nature
D. is subject to returns to scale
A. tourism
B. commerce 6. One of the major determinants
C. agriculture of the volume of production is
D. socio-cultural activities
A. the market size
3. One of the products of an B. the availability of banks
extractive industry is C. sex distribution
D. government policy
A. an airplane
B. an iron ore 7. Mrs. Jones who lives in the
C. a shoe riverine community of Rivers
D. a textile material State makes her living through

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crabbing and fishing. This type of
occupation she is in is
A. commercial
B. manufacturing
C. service
D. extractive
8. To eliminate middlemen, there
should be a retail outlet such as
A. producer co-operative
B. consumer co-operative
C. multiple shop
D. departmental store
9. The document issued by a port
authority for goods deposited is a
A. bill of lading
B. bill of sight
C. consular invoice
D. warehouse warrant
10. The document submitted to
the customs authority when full
description of imported goods is
not provided is
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A. a bill of sight
B. an invoice
C. an indent
D. a bill of entry
11. The role of customs and
exercise authority includes the
A. control of the flow of goods in
and out of the country
B. control of security agents
within and out of the borders
C. provision of dockyards for ship
repairs and maintenance
D. provision of transport system
to facilitate imports and exports
12. A document recording the
transactions of an organization
with its customer for a specified
period which normally shows the
indebtedness of one to the other
is a
A. statement of account
B. consular invoice
C. proforma invoice
D. statement affairs
13. In response to an inquiry from
a customer, a wholesaler is
expected to send back
A. a consignment note
B. an order
C. a quotation
D. an advice note
14. A carton of noodles valued at
₦2,000 was invoiced at ₦200
only. The accounting procedure to
correct this error is to issue
A. an invoice for ₦200
B. a debit note for ₦2,00
C. a credit note for ₦1,800
D. a debit note for ₦1,800
15. Tourists with no fixed address
in a town may receive their letters
from post office through a
A. poste restante
B. parcel post
C. private mail bag
D. recorded delivery
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16. Endowment policy in
insurance business is an aspect of
A. accident insurance policy
B. fidelity guarantee insurance
policy
C. motor vehicle insurance policy
D. life assurance policy
17. Insurance against burglary is
an example of
A. indemnity insurance
B. fidelity guarantee insurance
C. non-insurable risk
D. non-indemnity insurance
18. The principle which requires
the insurance company to disclose
to the proposer all material facts
of the risk to be covered is
A. subrogation
B. proximate cause
C. uberrimae fidei
D. contribution
19. The insurance principle that
allows an insurance an insurance
company to take over the rights A. caveat emptor
of the insured once he has been B. uberrimae fidei
compensated is C. demurrage
D. jettison
A. indemnity
B. proximate cause 23. The major aim of establishing
C. utmost good faith a public corporation is to
D. subrogation
A. establish a monopoly
20. A trader who experienced loss B. provide essential services
through fire can be restored by C. provide employment
opportunities
A. an insurance company D. encourage specialization
B. a trade association
C. the bank 24. The coming together of a
D. an advertising agency manufacturing business with a
firm that markets its products is
21. The distribution of petroleum
products in Nigeria is through A. backward integration
B. a consortium
A. rail C. forward integration
B. road D. a syndicate
C. sea
D. air 25. An association of voluntary
organizations that work together
22. The deliberate effort geared for a common aim while retaining
towards discarding some cargoes their independence is a
in order to lighten the vessel is
A. syndicate

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B. merger C. interest
C. cartel D. commission
D. consortium
29. Part payments made on
26. The document that explains allotted shares by subscribers is
the types of shares available for usually the
sale to the public is
A. subscribed capital
A. a prospectus B. authorized capital
B. an invoice C. issued capital
C. an open indent D. called-up capital
D. a closed indent
30. The net profit is the excess of
27. Which of the following attracts gross profit and sources of income
only interest but leaves the over all the expenses. This implies
capital unpaid? that net profit is

A. a long-term loan A. the difference between gross

B. a development bond
C. a redeemable bond
D. an irredeemable bond
28. A loan to a customer with a
cheque account at a bank in
which the account is allowed to go
into debit is
A. overdraft
B. advance
profit and trade expenses
B. the different between gross
profit and net sales
C. sales less cost of sales
including sales returns
D. opening stock add purchases
less closing stock
31. A form of money with face
value which is greater than the
value of the metal content is

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A. legal tender B. entitles the vendor to receive a
B. bank notes company's current dividend
C. token money C. confirms a purchase or sale
D. commodity money made on behalf of a share holder
D. is a document used to transfer
32. An agent who transacts ownership of shares
business with the broker in the
stock exchange is a 35. The payment made by a
speculator to the buyer when he
A. stag is unable to deliver stocks on the
B. bull agreed date is
C. del credere
D. jobber A. arbitage
B. Franco
33. A document sent by a broker C. contango
to his client to confirm a purchase D. backwardation
of sale made on his behalf is
36. Which of the following
A. delivery note regulates and controls the
B. consignment note activities in the Nigerian Stock
C. transfer form Exchange?
D. contract note
A. BPE
34. Cum div differs from ex div in B. SEC
that, the later C. NDIC
D. CBN
A. entitles the purchaser to
receive a company's current 37. The principle of management
dividend that emphasizes on the number of

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subordinates under the direct customer derives from the
supervision of a manager is purchase of goods and services is

A. span of control A. price mix

B. unity of command B. product mix
C. scalar chain C. marketing mix
D. unity of direction D. promotion mix

38. Marketing differs from selling 41. Which of the following aspects
in that, the latter only creates of marketing stimulates buying by
providing free gifts?
A. possession utility
B. marginal utility A. a personal selling
C. form utility B. sales promotion
D. place utility C. advertising
D. publicity
39. A business that focuses
attention on the quality of the 42. Which of the following is used
goods produced by precisely as pricing policy?
knowing what the consumers
desire is said to be operation the A. labelling
B. packaging
A. product mix C. market selection
B. promotion mix D. market skimming
C. marketing concept
D. product orientation. 43. Mr. Taiwo entered into a
contract to let a car to Mr. Bunmi
40. The physical and for his wedding for two days.
psychological satisfaction a However, the car had an accident

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before the first day. Mr. Bunmi D. cannot sell in his own name
attempted to claim damages but
failed. This implies the contract 46. A contract which is devoid of
was terminated by legal effect is

A. bankruptcy A. void contract

B. frustration B. unenforceable contract
C. breach C. voidable contract
D. lapse of time D. valid contract

44. Hire purchase is 47. The three functional units of a

advantageous to the seller in that modern computer are

A. it elevates his living standard A. input, processor and output

B. his turnover will increase units
C. people pay instalmentally B. processor, FOTRAN and output
D. it enhances high level of units
patronage C. black box, output and input
units
45. The difference between a D. basic, COBOL and output units
factor and a broker is that the
former 48. Which of the following
computers can be used in weather
A. is licensed to sell goods on forecast?
auction
B. has a lien on the goods he A. Hybrid computer
possesses? B. Digital computer
C. is not in possession of the C. Mainframe computer
goods D. Analog computer

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49. A Digital Versatile Disk is an 19. D 20. B 21. D 22. B 23. C
example of a 24. C 25. C

A. transmission control protocol 26. A 27. C 28. A 29. D 30. A

B. microprocessor 31. C 32. D 33. D 34. A 35. D
C. file transfer protocol 36. B 37. A 38. A 39. C 40. C
D. computer storage device 41. B 42. D 43. C 44. B 45. B
46. C 47. A 48. A 49. D 50. A
50. The social responsibility factor
of an organization is geared Facebook Study Group
towards
If you need an explanation to
A. contributing to the sustenance any of the answers or you want to
and development of its host download more past questions
community for FREE.
B. operating without disrupting
the very essence of the Click to ENTER our Facebook
environment study group
C. tackling the soci-economic
problems of the state
D. meeting the needs and
demands of the shareholders

ANSWER KEYS:

1. C 2. B 3. B 4. D 5. B 6. A 7. D
8. C 9. D 10. C 11. A 12. A 13. C
14. D 15. A 16. D 17. A 18. C

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 2015 JAMB COMMERCE QUESTIONS

1. A proforma invoice is not 4. Which of the following

required when information is contained in the
Articles of Association of a limited
A. dealing regularly with a liability company?
customer
B. quoting for the supply of goods A. Objectives of the company
C. goods are sent on approval B. Rights and obligations of
D. final prices are uncertain. directors
C. Amount of share capital
2. A distinguishing characteristic D. Limitation of liability of share
of a limited liability company is holders
that
5. Which of the following
A. is a collection of many sole contributed least to the evolution
proprietors of commercial activities in
B. can sue and be sued Nigeria?
C. is a multiple partnership
D. has limited resources A. Development of banks
B. Development of transportation
3. Construction activities include C. Development of currencies
the building of houses and roads D. Development of trader's union
as well as
6. One of the factors which
A. shoe-making critically determines the choice of
B. black smiting occupation is
C. brick laying
D. car assembling A. skill
B. training

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C. interest C. communication. advertising,
D. aptitude and banking
D. trading, warehousing and
7. Tourists with no fixed address production
in a town may receive letters from
the post office through 10. The pivot on which the wheel
of commerce rotates is
A. poste resante
B. recorded delivery A. tariff
C. post master B. taxation
D. parcel post C. price
D. trade
8. On liquidation of a public
limited liability company, the 11. The major procedures in the
residual owners are the purchase and sale of goods are
enquiry
A. debenture holders
B. creditors A. order, sale and invoice
C. preference shareholders B. quotation, order and invoice
D. ordinary shareholders C. placement, order and invoice
D. bargain, order and invoice.
9. The major factors that facilitate
merchandising are 12. An advantage of hire
purchase to the customer is the
A. banking_ insurance and
transportation A. low interest rate chargeable
B. management, insurance, and B. increase in turn over and
advertising profits

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C. economics of scale in 15. An essential factor for
production evaluating the different sources of
D. possession of goods before funds for a business is the
payment
A. ownership structure of the
13. The agency in Nigeria which business concern
ensures that products confirm to B. burden of cost and repayment
government quality specifications C. size and the type of the
is the business
D. decree establishing the
A. Nigerian Consumers business
Association
B. Standards Organization of 16. In the primary market, new
Nigeria shares are issued through
C. Nigerian Chamber of
Commerce A. personal selling, publicity and
D. Manufacturer's Association of advertising
Nigeria. B. advertising, a prospectus and a
bill of exchange
14. The most widely used C. a prospectus, an offer for sale
computer language that focuses and placing
on solving science oriented D. a prospectus, offer for sale and
problems is a bill of exchange

A. COBOL 17. One of the advantages of

B. ADA commercialization is that it
C. BASIC
D. FORTRAN A. increases the salaries of
workers

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B. encourages entrepreneurship 20. The type of communication
C. gives workers on-the-job from a superior to a subordinate
training in an organization is referred to
D. motivates government to as
establish more business
A. downward communication
18. Given: ₦ B. horizontal communication
Sales 15,000 C. lateral communication
Opening stock 5,600 D. upward communication
Purchases 9,700
Closing stock 4,400 21. The safety and quality of
Gross profit 4,500 products are the social
Net profit 2,000 responsibility of

From the above data, calculate A. the Manufacturer's Association

the rate of turn over of Nigeria
B. the Corporate Affairs
A. 218 times Commission
B. 3.50 times C. business organization
C. 3.00 times D. the Standard Organization of
D. 2.00 times Nigeria

19. Which of the following 22. The members of ECOWAS

confirms the accuracy of the duty include?
charged on imported goods?
A. Togo, Nigeria and Ghana
A. Consular invoice B. Burkina Faso, Nigeria, Niger
B. An indent and Mauritania
C. Shipping note

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C. Guinea, Mali, Cameroon and A. National Association of
Nigeria Chambers of Commerce
D. Nigeria, Chad, Gabon and Cape B. Nigeria Labour Congress
Verde C. Nigeria Stock Exchange
D. Nigeria Association of
23. One of the functions of Chambers of Commerce,
Nigeria Ports Authority is the Industry, Mines and Agriculture.
provision of
26. An aspect of commerce that
A. facilities to ensure that goods facilitates the distribution of
get to their destinations product is
B. courier services to ensure
specific delivery A. advertising
C. shelter for operators of cargoes B. branding
D. facilities to enhance the speedy C. transportation
loading and offloading of cargoes D. trading.

24. A document which advertises 27. Unresolved disputes between

the shares of a company is known the employer and employees are
as usually referred to the

A. deed A. industrial arbitration tribunal

B. prospectus B. disciplinary committee
C. dividend warrant C. code of conduct bureau
D. memorandum of satisfaction. D. personal unit.

25. An association to which all 28. A chain store usually

Chambers of Commerce in Nigeria combines the features of
are affiliated is the

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A. hyper markets and stalls 31.
Commerce
B. multiple shops and hyper
markets
Trade I
C. multiple shops and
departmental shops II Foreign

D. mail order business and

Retailer Wholesaler
multiple shop. Export Import

29. Which of the following is a From the diagram above, what

matter of personal preference on does I stand for?
the part of a superior officer?
A. Publicity
A. Delegation of authority B. Home trade
B. Unity of direction C. Aids to trade
C. Span of control D. Advertising.
D. Unity of command.
32. The three main classification
30. Manufacturing and of occupation are
constructive activities are
classified under A. industry, commerce and
services.
A. direct-service B. manufacturing, industry and
B. primary production trading
C. tertiary production C. farming, banking and trading
D. secondary production. D. construction, trade and
services.

33. The person who undertakes

life assurance is said to be an

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A. assurer D. indivisibility.
B. insurer
C. insured 37. The distribution of petroleum
D. assured. products in Nigeria is through

34. A business organization must A. the bank

always consider the overall effect B. air
of its actions on the C. sea
D. road.
A. profit
B. society 38. The business that focuses
C. product attention on the quality of the
D. competitor. goods produced by precisely
knowing what the consumers
35. An undertaking given by a desire is said to be operating the
person to another assuring his
integrity is A. marketing concept
B. promotion mix
A. subrogation C. product orientation
B. insurable interest D. product mix.
C. proximate clause
D. fidelity guarantee. 39. A floating policy is an example
of
36. Which of the following is a
quality of money? A. marine insurance
B. motor insurance
A. scarcity C. fire insurance
B. availability D. actuaries insurance.
C. convertibility

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40. The art of soap making is an
example of a

A. construction occupation
B. tertiary occupation
C. primary occupation
D. secondary occupation.

ANSWER KEYS:

1. A 2. B 3. C 4. B 5. D 6. A 7. A
8. D 9. A 10. D 11. B 12. D 13.
B 14. D 15. A 16. D 17. B 18. A
19. A 20. A

21. D 22. A 23. D 24. B 25. D

26. C 27. A 28. C 29. A 30. D
31. C 32. A 33. C 34. A 35. D
36. B 37. B 38. A 39. D 40. B

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 2016 JAMB COMMERCE QUESTIONS

1. Compulsory dissolution of a C. ₦95,000

business can arise from D. ₦155,000

A. a declaration by a court 4. In the channel of distribution,

B. an agreement by the owners which of the following sets is
C. an unfavourable economic entirely made up of middle men?
climate
D. the termination of its life. A. Manufacturers, consumers and
retailers
2. A proforma invoice is not B. Wholesalers, retailers and
required when agents
C. Retailers, manufacturers, and
A. goods are sent on approval wholesalers
B. quoting for the supply of goods D. Wholesalers, agents and
C. final prices are uncertain consumers
D. dealing regularly with a
customer. Use the information below to
answer question 5.
3. Given: ₦
Opening stock 40,000 SONU Enterprises
Purchases 115,000 Balance sheet as at 31/3/98
Closing stock 60,000 ₦ ₦
Capital 6000.00 Plant and 2300.00
Sales 250,000
Netprofit 2000.00 machinery
Drawings(137.50) Motor van2000.00
Creditors1,000.00 Stock 1250.00
What is the cost of goods sold?
Accruals 187.50 Debtors 480.00
Bank 3000.00
9050.00 Cash 20.00
A. ₦50,000
B. ₦30,000 9050.00

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5. What is the current ratio? C. society characterized by
subsistency
A. 5:1 D. society characterized by
B. 25.5:1 dependency
C. 4:1
D. 4.5:1 9. The insurance principle that
requires full disclosure of
6. What is the acid ratio? information on the insured is
known as
A. 5.55:1
B. 4.75:1 A. caveat empto
C. 4.25:1 B. subrogation
D. 2.95:1 C. uberrimae fidei
D. indemnity
7. The conversion of raw
materials into finished product 10. Production involves
creates
A. changing the form of goods,
A. form utility moulding and making, them
B. marginal utility available as needed
C. time utility B. making goods available when
D. place utility and where needed
C. the assembling of all necessary
8. Commerce makes it possible parts to produce
for man to live in a D. the manufacturing of goods
and provision of services
A. complex and organized society
B. simple and organized society 11. A merchant wholesaler is
referred to as

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A. a factor A. Bureau of public enterprises
B. rack gobber B. Nigerian stock exchange
C. a broker C. Technical committee on
D. del-credere agent privatization and
commercialization
12. A proforma invoice is sent to D. securities and exchange
inform a buyer about the commission

A. prices of goods 15. The payment made

B. quantity of goods periodically in respect of an
C. quality of goods insurance policy entered into is
D. designation of goods known as

13. Capital as a factor of A. premium

production can be used for B. surrender
C. bond
A. goods that are useful in D. commission
business
B. money that is regarded as 16. An example of services
assets rendered by NIPOST is
C. services that provide
satisfaction A. courier
D. input for further production B. electronic mail
C. mail delivery
14. The agency that currently D. Telephone
oversees the privatization and
commercialization processes in 17. Ships that sail across the
Nigeria is the ocean and operate on scheduled
time tables are

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A. coastal liners 21. Tourism can be classified as
B. tramp steamer
C. ocean liners A. visible exports
D. ferries B. invisible exports
C. tangible imports
18. Non-insurable risks include D. intangible imports

A. death 22. The inputs. output and central

B. marine problems processing units are the basic
C. damage to property components of a
D. gambling
A. software
19. The most important right of B. hardware
the employee in discharging his C. memory
duties to the employer is the right D. printer
to
23. Consumers require protection
A. job securities against exploitation to ensure
B. annual leave
C. regular enrolments A. the sale of quality products
D. working facilities B. increased aggregate demand
C. adequate consumer awareness
20. The most dangerous pollution D. availability of product variety
is
24. The business environment
A. Air pollution that takes into cognizance the age
B. water pollution distribution, ethnic mix and
C. Soil pollution educational level of Consumer is
D. noise pollution

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A. cultural environment 28. An aid to trade associated
B. national environment with communication is
C. demographic environment
D. economic environment A. insurance
B. ware housing
25. An activity that involves C. banking
derivation of raw materials from D. transportation
land and sea is
29. Which of the following can be
A. agricultural used to differentiate skilled and
B. extraction unskilled labour?
C. construction
D. farming A. Available resources
B. Education and training,
26. The art of soap-making is an C. Salaries and wages
example of D. Level of commitment

A. secondary occupation 30. A doctor who attends to

B. primary occupation patients at home after his official
C. construction occupation duty is
D. tertiary occupation
A. a direct and indirect service
27. The central focus of worker
commercial activities is B. An indirect service worker
C. A direct service worker
A. pricing D a community developer
B. marketing
C. advertising 31. An oil exploration company is
D. farming engaged in

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A. extractive occupation C. it is only payable into the
B. constructive occupation payee's account
C. secondary production D. it is made without transverse
D. tertiary production
35. A country is said to be
32. Services rendered to the experiencing an unfavourable
public is provided by balance of trade if her

A. governments A. exports exceed imports.

B. domestic servants B. visible exports exceed visible
C. professionals imports.
D. civil servants C. imports and exports are equal.
D. visible imports exceed visible
33. If a customer pays within nine exports.
days of receiving goods and takes
advantage of 3% off the invoice 36. The type of labour that makes
price, this is stated as use of physical efforts in
production procession is the
A. 30; net 9/3
B. 9/30; net 3 A. skilled labour
C. 9/27 net 30 B. unskilled labour
D. 3/9; net 30 C. white-collar job
D. blue-collar job.
34. Which of the following is a
characteristic of a bearer cheque? 37. Cooperation and friendliness
are enhanced among nations
A. it is made payable to whoever through inter-dependence
presents it necessitated by
B. it is made with transverse lines

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A. Agriculture ANSWER KEYS:
B. social-cultural activities
C. Tourism 1. A 2. D 3. C 4. B 5. D 6. D 7. A
D. Commerce 8. D 9. C 10. A 11. D 12. A 13.
D 14. A 15. A 16. C 17. C 18. D
38. One of the products of an 19. A 20. A
extractive industry is
21. B 22. B 23. A 24. C 25. B
A. a shoe 26. A 27. D 28. D 29. B 30. C
B. a textile material 31. A 32. D 33. B 34. A 35. C
C. an iron ore 36. B 37. D 38. C 39. A 40. B
D. an air plane

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40. One of the major
determinants of the volume of
production is

A. the availability of bank

B. the market size
C. government policy
D. sex distribution

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 2017 JAMB COMMERCE QUESTIONS

1. The rate where a country's 4. The practices by which an

exports exchange for its imports insurance company accept a very
is called large risk and latter shares it with
other insurance companies is
A. terms of payments called
B. terms of trade
C. balance of payments A. contribution
D. balance of trade. B. indemnity
C. subrogation
2. The use of coin-operated D. re-Insurance.
machines to sell goods is a form
of 5. A machine which enables sales
without the physical presence of a
A. mail-order selling sales attendant is a
B. personal selling
C. retailer A. vending machine
D. wholesaling. B. computer machine
C. fax machine
3. The insurance policy which D. telex machine.
provides full cover against all
risks at sea is known as 6. What document is required
when a country imposes ad
A. marine voyage policy insurance valorem import duties on goods?
B. marine freight insurance
C. policy free of particular A. Consular invoice
average B. A bill of lading
D. policy with particular average. C. A shipping note
D. A mail transfer.

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7. A business whose owners enjoy A. Its unlimited nature
loan facilities on the basis of B. The number of partners
personal goodwill. C. The withdrawal of a major of
partner
A. community bank D. The bearing of risk.
B. co-operative society
C. commercial bank 11. A factor necessary for siting of
D. thrifts society. a warehouse is nearness to

8. Which of the foli0Wing is not a A. labour

veritable source of funds to a B. capital
public limited liability company? C. consumers
D. raw materials.
A. advances and loans from bank
B. government financial grants 12. Pooling of risk in insurance
C. funds from the sale of shares means that
D. internally generated funds.
A. two people can pool their risks
9. The tern Plc implies that the to be insured
shares are available B. compensation are paid out of a
common fund
A. publicity on the stock exchange C. insurance companies should
B. publicity in commercial bank encourage taking risks
C. privately on the stock D. two insurance companies can
exchange buy two policies.
D. to the public at the company.
13. Which of the following
10. Which of these is both merit countries are members of the
and demerit in partnership? Lake Chad Basin Commission?

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A. Benin and Nigeria 16. Communication process
B. Nigeria and Mali involves the transmission of a
C. Niger and Cameroun message over a selected channel
D. Chad and Benin to the

14. A core investor in the current A. encoder

phase of privatization in Nigeria is B. receiver
one who C. audience
D. sender.
A. has the technical know-how of
the enterprises 17. A transporter who had to sell
B. can mobilize foreign currency perishable goods without the prior
equivalent to the value of authority of the owner becomes
enterprises an agent by
C. will be at the core of the
enterprises A. estoppel
D. can afford to buy most of the B. conduct
shares of the enterprises. C. necessity
D. ratification
15. The process of dividing tasks
into jobs and departments and 18. Poor sewage disposal oil spill
delegating authority is known as and indiscriminate refuse
dumping all lead to
A. organizing
B. staffing A. land and water pollution
C. leading B. air and water pollution
D. directing. C. land pollution
D. water pollution.

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19. A major function of a A. a redeemable bond
Chamber of Commerce B. an irredeemable bond
C. a long-term loan
A. promoting both home and D. a development bond.
foreign trade
B. increasing productivity 23. An announcement of a
C. maximizing profit person's willingness to enter into
D. promoting trade in a particular a contract is referred to as

20. Which of the middle men in A. consideration

the channel of distribution has B. an acceptance
title to the goods he distributes? C. a proxy
D. an offer.
A. The retailer
B. The limited wholesaler 24. The macro-environmental
C. The agents forces and trends which are a
D. The merchant wholesaler. constraint on business operations
are referred to as
21. A seller attracts and retains
patronage by A. external factors
B. internal factors
A. rendering pre-sales services C. economic factors
B. enhancing sales promotion D. technological factors.
C. render customer service
D. enhancing public relations. 25. A proposed company may not
be registered if
22. A bond which attracts only
interest but leaves the capital A. it has no paid up capital
unpaid is referred to as B. it has no asset of its own

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C. it does not put “limited” after D. interconnectivity.
its proposed name
D. the name conflicts with that of 29. After-sales service is a
another. function usually rendered by

26. An example of a cartel is A. an entrepreneur

B. an agent
A. EU C. wholesale
B. AU D. a retailer.
C. OPEC
D. ECOWAS. 30. The activity which entails
buying of goods in bulk and
27. In which of the following will selling in small quantities to
the number of words used retailers is
determine the cost of message
sent? A. wholesaling
B. assembling
A. E-mail C. retailing
B. Telex D. merchandising.
C. Telegram
D. Telephone. 31. An individual that links the
producer with the retailer is
28. The Transmission of telephone
services from one country to A. a principal
another is facilitated by B. an agent
C. an entrepreneur
A. international facility D. a wholesale.
B. communication satellite
C. internet services

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32. One of the functions of a D. nominal partnership.
retailer is the
Use the table below to answer
A. breaking of bulk questions 35 and 36.
B. financing of production
activities Name Insured Actual Actual
Amount Value (₦) Loss (₦)
C. provision of credit facilities to (₦)

relations Mr. N 25,000 100,000 30,000

Mr. R 30,000 120,000 40,000
D. provision of jobs for Mr. P 40,000 150,000 50,000
customers.
35. If Mr. N. takes a fire

33. The type of letters that are insurance policy with average

delivered through the normal mail clause, his compensation will be

or by airmail express service is

referred to as A. ₦70,000
B. ₦75,000

A. airmail letters C. ₦5,000

B. inland letters D. 7,500.

C. registered letters
D. express letters. 36. What insurance principle has
Mr. R violated if he decides to

34. A business organization that overstate the actual value of his

exploits the capabilities of a property?

member to remedy the

weaknesses of another is a A. Uberrimae fidei
B. Subrogation

A. co-operative C. Indemnity

B. joint venture D. Insurable interest.

C. partnership

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37. Insurance against burglary is
an example of
A. non-indemnity insurance
B. fidelity guarantee insurance
C. non-insurable risk
D. indemnity insurance.
38. The principle which requires
the insurance company to disclose
to the proposer all material facts
of the risk to be covered is
A. contribution
B. subrogation
C. proximate cause
D. uberrimae fidei.
39. The document that explains
the types of shares available for
sale to the public is
A. an invoice
B. an open indent
C. a closed indent
D. a prospectus.
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40. Which of the following attracts
only interest but leaves the
capital unpaid?
A. A redeemable bond
B. a long-term loan
C. a development bond
D. an irredeemable bond.
ANSWER KEYS:
1. B 2. C 3. A 4. D 5. A 6. C 7. D
8. B 9. A 10. B 11. C 12. B 13. C
14. D 15. A 16. B 17. C 18. B
19. A 20. D
21. C 22. B 23. D 24. A 25. D
26. C 27. C 28. B 29. D 30. A
31. D 32. A 33. A 34. A 35. D
36. A 37. D 38. D 39. D 40. A
 2018 JAMB COMMERCE QUESTIONS

1. Which of the following 4. A loan to a customer with a

regulates and controls the cheque account at a bank in
activities in the Nigeria Stock which the account is allowed to go
Exchange? into debit is

A. SEC A. advance
B. BPE B. over draft
C. CBN C. commission
D. NDIC D. interest

2. The payment made by a 5. Money is generally acceptable

speculator to the buyer when he for transaction due to
is unable to deliver stocks on the
agreed date is A. the rule of the law
B. its acceptability in the global
A. backwardation market
B. Franco C. the legal backing
C. arbitrage D. the Central Bank Governor's
D. contango signature

3. Part payments made on 6. Trade fairs in Nigeria are

allotted shares by subscribers is organized by
usually the
A. Ministry of commerce and
A. issued capital industry
B. subscribed capital B. chambers of commerce
C. called-up capital C. The federal Government
D. authorized capital

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D. Manufacturer's Association of 10. The business organization
Nigeria that can effectively combine
management with control is
7. Goods and services are made
available to consumers through A. co-operation society
B. public limited liability company
A. the advertising agency C. private limited liability
B. sales promotion company
C. the channel of distribution D. sole proprietorship
D. the middle men
11. An arrangement by
8. An organization which focuses independent firms to share the
on consumer satisfaction is market of their products on quota
practising basis is referred to as

A. marketing concept A. cartel

B. selling concept B. syndicate
C. consumerism C. trust
D. market segmentation D. integration

9. One of the major 12. The warehouse that is owned

disadvantages of pipeline and controlled by the government
transportation is its is a

A. high maintenance cost A. state warehouse

B. high cost of construction B. wholesalers' warehouse
C. Limitation in scope C. public warehouse
D. vulnerability to climate D. manufacturers' warehouse
changes

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13. In a public limited liability B. Product, place, process and
company, planning, is carried out promotion
by C. Price, production, place and
property
A. employees D. Price, product, place and
B. the chairman of the board promotion
C. shareholders
D. manufacturers' warehouse 17. The inter for is a system of
telecommunications used for
14. One of the major problems of
a sole proprietor is sourcing for A. sending electronic messages
B. communicating long-distance
A. funds messages
B. labour C. sending and receiving text
C. raw materials messages
D. machineries D. communicating messages
through telegrams
15. Balance of payments is made
up of 18. The major determinant of fire
insurance premium is the
A. currency and capital items
B. visible and current items A. usefulness of the property to
C. visible and invisible items the owner
D. visible and capital items B. type and structure of the
property to be insured
16. The four P's of marketing are: C. extent of fixed damage
anticipated
A. Price, product, property and D. owner of the property to be
place insured

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19. Capital to a business is A. culture and tourism
technically B. finance
C. industries
A. an asset D. commerce
B. a project
C. a liability 23. The shares of a company
D. an expense listed on the stock exchange for
sale are referred to as
20. The factor which critically
determines the choice of A. quoted shares
occupation is B. issue shares
C. deferred shares
A. skill D. registered shares
B. training
C. aptitude
D. interest 24. Charges for loans paid by
commercial banks to the central
21. From which of the following bank of Nigeria are called
source can partnerships increase
their capital? A. Credit charges
B. bank rates
A. Sales of shares C. bank charges
B. Admission of new partners D. interest rates
C. Discharge of mortgage
D. Grants from relations 25. The act of a person employing
another to enter into contract on
22. In Nigeria, the ministry in his behalf is known as
charge of registering trade
associations is that of A. agency

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B. bilateral agreement A. social responsibility
C. business B. advertising strategy
D. sale of goods C. marketing strategy
D. economic responsibility
26. Social responsibility is the
ability of organization to 29. One way by which
government reduces the
A. operate without disrupting the repatriation of capital is through
very essence of the environment
B. tackle the socio-economic A. divestiture
problems of its community B. naturalization
C. meet the needs of its C. nationalization
community D. indigenization
D. contribute to sustaining and
developing its community 30. The maximum number of
shareholders in a public liability
27. An author's exclusive right to company is
his published and unpublished
works is known as A. one hundred
B. unlimited
A. constitutional right C. fifty
B. copy right D. twenty
C. author right
D. patent right 31. Bank overdraft as a short-
term source of fund is
28. Awarding scholarships and
sponsoring sports by a business A. a current liability
organization are examples of B. an overdrawn account

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C. grade to a newly opened C. bill of lading, invoice, insurance
account policy, consular invoice, certificate
D. repayable after more than a of origin and bill of exchange
year D. invoice, consular invoice,
certificate of origin, freight note,
32. indent and insurance policy
Product

Price Customer Promotion 34. A company which issues a

promissory note in lieu of
Place payment for goods purchased

The above chart represents the A. is not bound to renew the note
before payment
A. marketing mix relationship B. can return the goods
B. product mix relationship purchased and refuse to pay
C. advertising mix relationship C. can refuse to pay on due date
D. promotion mix relationship since it is only a promise
D. is bound to redeem the note
33. The main documents sent to for cash on due date
an importer of goods by the
exporter are 35. Insurance companies operate
on the principle of indemnity. This
A. indent, bill of certificate of means that an insured person or
origin, invoice and bill of firm collects
exchange
B. certificate of origin, bill of A. double the value of loss
exchange, invoice insurance, suffered
policy, indent and bill of lading B. only half of the loss suffered

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C. the total sum of the premiums A. increase a company's number
paid prior to the loss. of customers
B. reduces a company area of
36. The two main categories patronage
under which marine losses fall in C. increases a company's
to are operating costs
D. decreases a company's
A. total loss and partial loss operating costs.
B. voyage policy loss and time
policy loss 39. Which of the following has
C. particular loss and average loss powers to order withdrawal of a
D. actual loss and general loss. particular food item from
circulation?
37. Chinyere agreed to make a
dress for Halima with September A. Food and Drugs Department of
20,1995 as the delivery date. If the Federal Ministry of Health
the dress was not ready on that B. Federal High Courts in Nigeria
date, Halima could C. Standard Organization of
Nigeria
A. seize another gown from D. Local Government Health
chinyere's shop Inspectors
B. regard the contract between
them as terminated 40. Nationalization of an industry
C. sue chinyere for specific means that its ownership
performance becomes that of
D. sue chinyere for damage.
A. tax payers
38. A disadvantage of personal B. indigenes
selling is that it C. government

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D. shareholders

ANSWER KEYS:

1. A 2. A 3. C 4. B 5. C 6. B 7. C
8. A 9. C 10. C 11. A 12. C 13. D
14. A 15. C 16. D 17. A 18. B
19. A 20. D

21. B 22. D 23. A 24. B 25. A

26. D 27. B 28. A 29. D 30. B
31. A 32. A 33. C 34. D 35. C
36. A 37. C 38. B 39. A 40. C

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