2012 - JAMB Commerce Past Questions and Answers - page 2

11
If a customer pays within nine days of receiving goods and takes advantage of 3% off the invoice price, this is stated as
A
3/9;net 30
B
9/27;net 30
C
30;net 9/3
D
9/30;net 3
correct option: d
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12
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
correct option: b
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13
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
correct option: c
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14
The most effective type of advertising for branded products is
A
mass advertising
B
persuasive advertising
C
informative advertising
D
competitive advertising
correct option: c
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15
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
correct option: a
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16
Printed messages sent by cable are recorded as
A
telegram
B
SMS
C
telex
D
MMS
correct option: a
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17
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 servicess
correct option: b
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18
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 loss, is the principle of
A
proximate cause
B
insurable interest
C
insurance priority
D
subrogation
correct option: c
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19
Assurance is different from insurance in that the former is based on
A
probability
B
possibility
C
risk
D
uncertainty
correct option: b
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20
A person who undertakes life insurance is said to be an
A
insurer
B
assurer
C
assured
D
insured
correct option: d
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