enwaeccommerce2012

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THEORY QUESTIONS

WAEC SYLLABUS

1. The development of trade of trade in west Africa was aided by the

A. Emergency of traditional rulers

B. Arrival of the Portuguese

C. Introduction of tax payment

D. Introduction of money

2. An issuing house is an outlet for

A. A new share and bounds

B. Non listed companies shares

C. Existing shares and bounds

D. Only glit-edged securities

3. Which of the following is quoted when the buyer is respon sible for the cost of loading the goods from the seller’s warehouse up to his own warehouse

A. F.O.R

B. C.I.F

C. F.A.S

D. loco

4. The relationship between all imports and exports of a country is known as

A. Terms of trade

B balance of trade

C balance of payment

D. terms of payment

5. which of the following is an example of large scale retailing?

A. Hawking

B. mobile shops

C. Kiosks

D. Departmental store

ANSWERS

6. A cheque drawn by a bank on itself is a/an

A. direct debit

B. bank draft

C. bank transfer

D. overdraft

7. A voluntary body form by people in the same line of Business for a purpose of protecting their interest is a

A. Trade association

B. Trade union

C. Chamber of commerce

D. Trading partnership

8. those who are engaged in the distribution of goods be long to

A. commercial occupation

B. Extractive industry

C. manufacturing industry

D. constructive industry

9. when an insurance policy is declared void because of a false declaration: Principle involved is

A. Indemnity

B. Subrogation

C. Proximate cause

D. Utmost faith

10. Building and machinery used in the running of a business are examples of

A. current assets

B. intangible assets

C. liquid assets

D. Fixed assets

ANSWERS

11. Which of the following is classified as invisible item in balance payment

A. Import goods

B. Salaries expatriate

C. Export of grandaunt

D. Sales of equipment

12. collection of information on the tax of consumers and the extent of demand for a product is

A. market research

B. Market segmentation

C. marking mix

D. marketing concept

13. which of the following is not an insurance of indemnity?

A. life

B. marine

C. burglary

D. fire

14. the entitlement of a debenture holder from a company’s income is known as

A. commission

B. interest

C. lien

D. dividend

15. the collection of tariffs on imported goods is the function of

A. port Authority

B. customs and excise Authority

C. clearing and forwarding agents

D. export promotion council

ANSWERS

16. A licensed person who is authorized to sell the highest bidder is A. principal B .factor C.broker D. auctioneer

17. An efficient transport system enables a trader to

A. widen the market for products

B. avoid customs examination of goods

C. adopt better price policy

D. reduce cost of production

18. The central Bank’s monetary policy instrument by which it buys and sells treasury Bills known as

A. Open market operation

B. Bank rate

C. Cash reserve ratio

D. Special deposit

19. Which of the following acted as the central bank for west African countries before the independence?

A. the west African clearing house

B. the british bank for west Africa

C. the west African currency board

D. the African development bank

20. Current account holders withdraw money by means of

A. credit card

B. draft

C. Withdrawal form

D. cheque

ANSWERS

21. Which of the following is a feature of a mail order business?

A. employs many shop assistants

B. practices self service

C. provide attractive shop front

D. Rents large warehouse

22. Bonded warehouse is a place where

A. duty free goods are kept

B. perishable goods are kept

C. home made goods are kept

D. dutiable goods are kept

23. which of the following is concerned with the promotion of favourable image of an organization?

A. consumer sovereignty

B. public relation

C. marketing research

D. market segmentation

24. the document issued by the registrar of companies to permit a public limited company to commence business is

A. memorandum of association `

B. certificate of incorporation

C. article association

D. trading certificate

25. which is of the following is not an economic group?

A. lake shad basin commission

B. economic community of west African state

C. European union

D. international monetary fun

ANSWERS

26. one of the principle of insurance is

A. consequential loss

B. field guarantee

C. proximate cause

D. surrender value

27. a written instruction by a current account holder is his bank to debit his account at regular intervals with specified amount for a given period is known as

A. standing order

B. money order

C. bank draft

D. overdraft

28. a collective bundle is called

A. debenture

B. stock

C. bound

D. share

29. the asset of a business that is available as cash or near cash is called

A. equity

B. capital employed

C. reverse capital

D. liquid capital

30. the on which a cheque is drawn is know as the

A. drawer

B. drawee

C. cashier

D. payee

ANSWERS

31. a percentage reduction from the quoted price of goods given to a buyer to encourage bulk purchase is called

A. cash discount

B. trade discount

C. commission

D. bonus

32. the difference between cost price and selling price of an article is

A. Commission

B. mark-up

C. Rebate

D. Discount

33. A ceiling on the quantity of a commodity to be imported into the country is called

A. ban

B. tariff

C. price unit

D. quota

34. the buyer is a hire purchase contract becomes the legal owner of the goods by paying

A. initial deposit

B. the last instalment

C. Half of the purchase price

D. two third of the purchase price

35. The document which helps in ascertaining the correct value of imports in order to assess the custom duty is

A. bill of laden

B. consular invoice

C. bill of sight

D. Ships manifest

ANSWERS

36. the combination of product, price, promotion and distribution decisions employed by a company is referred to as its

A. Pricing policy

B. marketing mix

C. Product mix

D. marketing concept

37. the document which specifies the manufacturer from whom goods are to be imported is

A. closed indent

B. open indent

C. export invoice

D. consignment note

38. who among the following generally has no capacity to enter into a valid contract?

A. school principals

B. infants

C. agents

D. Religious ministers

39. The satisfaction of consumers in all business activities is emphasized by.

A. Market research

B. marketing concept

C. marketing mix

D. product differentiation

40. The document which is used when a country imposes and valorem duties is

A. Bill of laden

B. consular invoice

C. certificate of origin

D. open indent

ANSWERS

41. An activity involving buying, selling and distribution of goods and services is known as

A. Trade

B. marketing mix

C. Exchange

D. Commerce

42. which of the following arrangement of documents is the correct sequence as used in the retail trade? i. quotation ii. Enquiry iii. Order iv. Invoice

A. I, II, IV

B. II, I, III, IV

C. I, IV, III only

D. I, III, IV only

43. Mr. Lou who assured his life with XYZ Assurance company, was involved in an accident and had a broken leg the sum of N80,000 was paid to mr Lou for his broken leg. The money received is known as

A. Compensation

B. Commission

C. Premium

D. Indemnity

44. the size of profit of a business is measured by the

A. closing stock

B. Opening stock

C. total purchase

D. Rate of turnover

45. industrial occupation does not involve the

A. Growing and extraction of raw material

B. Use of machinery