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THEORY QUESTIONS

WAEC SYLLABUS

1. A document used as a polite way of refusing credit is?

A. Advice note

B. Quotation

C. Proforma invoice

D. Invoice

2. Carriage forward on an invoice means

A. Carriage will be paid next time

B. Carriage will be paid by seller

C. Carriage will be paid by buyer

D. Carriage had been paid

3. Which of the following is not contained in a consignment note?

A. Name of the buyer

B. Name of the seller

C. Description of goods

D. Cost of goods

4. The PW company Ltd. Achieve the following result in 2012 Le Sales 100,000.00 Profit 5,000.00 Capital employed 20,000.00 The return on capital employment is

A. 25%

B. 20%

C. 15%

D. 5%

5. Which of the following will be suitable for hire purchase sales?

A. Shares

B. Refrigerators

C. Shoes

D. Textile

ANSWERS

6. A person who earns extra commission for guaranteeing debts is a

A. Factor

B. Broker

C. Commission agent

D. Del-credere agent

7. An insurance principle that prevents a person from insuring what he does not stand to lose financially if the insured risk occurs is?

A. Indemnity

B. Insurable interest

C. Proximate cause

D. Subrogation

8. Voyage police insurance is associated with

A. Fire

B. Life

C. Marine

D. Burglary

9. If a share is quoted ex-div, it means the new buyer would?

A. Get the next dividend

B. Not get the next dividend

C. Get a fixed dividend

D. Not get any dividend

10. Which of the following is the function of commerce?

A. The conversion of raw materials into semi finished products

B. The conversion of semi-finished products into end products

C. Provision of services to customers

D. The exchange and distribution of goods and services

ANSWERS

11. Who among the following does not render direct service?

A. Teacher

B. Musician

C. Doctor

D. Retailer

12. The last link in the production process is the

A. Transportation

B. Wholesaler

C. Consumer

D. Retailer

13. The Board of Directors of Public corporation is appointed by the

A. Government

B. Shareholder

C. Management

D. Employees

14. The object clause of a limited liability company is stated in the

A. Memorandum of Association

B. Article of Association

C. Certificate of incorporation

D. Trading certificate.

15. A market which deals in the purchase and sale of secondhand securities is the

A. Stock exchange

B. Building society

C. Shippers Council

D. Co-operative Society

ANSWERS

16. To endorse a cheque means to

A. Write and sign one’s name at the back of the cheque

B. Write “pay cash” on the cheque

C. Cross the cheque

D. Stop the payment of the cheque

17. An insurance policy that covers the body of the ship only is called

A. Haulage insurance

B. Voyage insurance

C. Hull insurance

D. Cargo insurance

18. Which of the following protects consumer against poor quality goods?

A. Chamber of commerce

B. Standard organization

C. Trade Association

D. Manufacturers association

19. Mr. BIU has been paying the premium of a straight life Assurance policy for several years. The surrender value of the policy is the amount that?

A. Would be paid to Mr. Biu if he should discontinue with the policy

B. Would be paid to Mr. Biu’s beneficiaries if he dies

C. Is Paid annually by Mr. Biu to the insurance company D

D. The amount Mr. Biu has paid plus interest.

20. The use of current account in business is convenient because

A. Withdrawal can be made at any time

B. Deposits earn higher interest

C. Loans are always available

D. Notice are necessary

ANSWERS

21. The cost of telephone conversation is determined by the

A. Number of words spoken

B. Person sending the message

C. Duration of the conversation

D. Urgency of the message conveyed

22. ‘Not negotiable’ on a cheque means

A. Ownership can be transferred to the third party by mere delivery

B. The cheque can be paid over the counter on endorsement

C. The holder has no better title than person who transfers it.

D. Ownership rests with the one who issued the cheque

23. The type of transport a manufacturer will use will be influence by

A. Type of sales

B. The tax on the goods

C. The customer’s age

D. Nature of goods

24. A contract made between a ship owner and a merchant for the carriage of cargo is?

A. Ships’ manifest

B. Charter party

C. Freight forward

D. Cargo service

25. Advertising efforts geared towards a particular audience is known as

A. Mass advertising

B. Direct advertising

C. Market segmentation

D. Advertising

ANSWERS

26. Trade fairs and exhibitions are media of

A. Sales promotion

B. Customer service

C. Market segmentation

D. Advertising

27. The concept which says that a company’s production policy should be centred on the ultimate user of the product is known as

A. Market segmentation

B. Consumer sovereignty

C. Marketing mix

D. Marketing research

28. The various rights attached to different classes of shares are stated in the

A. Articles of association

B. Memorandum of association

C. Balance sheet

D. Prospectus

29. Which of the following is a feature of supermarket?

A. Gives credit to reliable customers

B. Specializes in one line of production

C. Goods are on display with price tags

D. Does not have to provide storage facilities

30. Public enterprises are financed mainly by

A. The share holders

B. Government agents

C. Commercial banks

D. Mortgage banks

ANSWERS

31. A personal computer on sale in an office equipment shop is an example of

A. Stock

B. Fixed asset

C. Liability

D. Fixed capital

32. The different current asset and current liability is

A. Issued Capital

B. Capital employed

C. Working capital

D. Nominal capital

33. A Ltd. Company has an authorized capital of 2,000,000. Shares of D5 each. If the issues 1.200.000 shares, its issued capital is

A. D10,000,000

B. D6,000,000

C. D4,000,000

D. D2,000,000

34. The money used by Ola Maro and Co. Ltd. In running the day-to day activities of the business is represented by

A. Fixed capital

B. Capital employed

C. Paid-up-capital

D. Working capital

35. Which of the following is an advantage of sole trader

A. Guaranteed profit

B. Quick decision making

C. Unlimited liability

D. Buying on credit

ANSWERS

36. A country deliberate decision to reduce the value of her currency is called

A. Deregulation

B. Inflation

C. Devaluation

D. Revaluation

37. Which of the following is not a function of warehousing

A. Creating scarcity of goods

B. Stabilization of price

C. Production ahead of demand

D. Storage of goods

38. Ad valorem duties are based on the

A. Importance of goods imported

B. Value of goods imported

C. Weight of goods imported

D. Nature of goods imported

39. A tariff refer to

A. Fees imposed on contraband goods

B. Fees paid on exports

C. Taxes imposed on imported goods

D. Taxes paid on home made goods

40. The selling of goods in small unit is normally performed by

A. Chamber of commerce

B. Wholesalers

C. Distributors

D. Retailer

ANSWERS

41. Direct sale to customers by manufacturers is a means of eliminating

A. Wholesaler only

B. Retailers only

C. Middlemen

D. Agent

42. A physical restriction placed on the quantity of goods that can be imported is

A. A ban

B. A quota

C. An excise duty

D. An import tax

43. A country is set to achieve a trade surplus when total

A. Visible export exceed total visible imports

B. Invisible export exceed total invisible import

C. Visible export exceeds total invisible imports

D. Visible imports exceeds total visible export

44. The process of winding up a public limited company by court order is known as

A. Termination

B. Dissolution

C. Voluntary liquidation

D. Compulsory liquidation

45. A person who undertake the responsibility for forming a new company is

A. Auditor

B. Solicitor

C. Registrar

D. Promoter

ANSWERS

46. A term which describes the value of business connections made by a company over the years is known as

A. Patent

B. Copyright

C. Goodwill

D. Trade mark

47. The ancillary to trade which ensure that people have access to information pertaining to goods is

A. Insurance

B. Advertising

C. Warehouse

D. Banking

48. The insurance principle of indemnity does not apply to

A. Fire insurance

B. Life assurance

C. Burglary insurance

D. Marine insurance.

49. Which of the following price quotations requires the buyer to take delivery at the manufacturer’s warehouse?

A. Ex-works

B. F.O.R

C. F.O.B

D. F.A.S

50. To take an insurance policy, an application must first complete a/an

A. Proposal form

B. Cover note

C. Certificate of insurance

D. Advice note

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COMMERCE (Objective Questions And Answers)

WASSCE 2013

Objectives

copyright:ensoft2024. company@en-soft.com Phone:2347072716127

ensofts

Candle Light To The World

COMMERCE (Objective Questions And Answers)

WASSCE 2013Objectives

copyright:ensoft2024. company@en-soft.com Phone:2347072716127

WASSCE 2013

Objectives