2017 - JAMB Commerce Past Questions & Answers - page 1

1
Which of the following legislation aims primarily at the protection of consumers?
A
Law of contract
B
Trade description Act
C
Company's Act
D
Partnership Act
CORRECT OPTION: b
This protects the consumers from false description of goods in terms of quality, quantity, size, place and date of manufacture
2
A bill of exchange already accepted can be discounted by the holder in ______?
A
the central bank
B
at least two banks
C
his bank
D
any bank
CORRECT OPTION: d
Is an unconditional written order from one person to another to pay a specified sum of money to a designated person.
3
An agreement that is enforceable in law is ________?
A
a contract
B
an offer
C
an acceptance
D
a consideration
CORRECT OPTION: a
A contract is an agreement or law binding the creation of business and enforceable in law.
4
The factor of production that is relatively indestructible and immobile is _______?
A
capital
B
labour
C
land
D
rent
CORRECT OPTION: a
This is wealth reserved for the production of more wealth. It includes physical cash, building, semi-finished goods.
5
An instrument used in lieu of legal tender is known as ______?
A
Token money
B
commodity money
C
fiat money
D
representative
CORRECT OPTION: b
Money is a type of asset in an economy that is used to buy goods and services from other people. A commodity is a physical item that is interchangeable with another item of the same type or value.

This is the use of specific commodity as a form of money. Its value as a piece of metal is the same with its value as a piece of money.
6
At the collapse of a business enterprises, the person appointed to dispose off the assets is called ________?
A
an auctioneer
B
a broker
C
a liquidator
D
an auditor
CORRECT OPTION: a
An Auctioneer is a person who conducts an auction by announcing the lots and controlling the bidding.
7
The process of converting a non-profit making organisation to a profit-making business is ________?
A
indigenisation
B
privatisation
C
deregulation
D
commercialisation
CORRECT OPTION: b
This is the process of transferring a government owned business to a private owner.
8
The letters E and OE stands for __________?
A
Errors of exception
B
Errors and omissions excepted
C
Estimated and order error
D
End of error
CORRECT OPTION: b
This is an attempt to reduce legal liability for potentially incorrect or incomplete information supplied in a contract usually related document such as quotation or specification.
9
When a buyer has been overcharged for goods supplied, the seller issues a _______?
A
debit note
B
proforma invoice
C
letter of credit
D
credit note
CORRECT OPTION: d
A seller receives goods (returned) from the buyer, he prepares and sends a credit note as an intimation to the buyer, showing that the money for the related goods is being returned in form of a credit note
10
The fees charged on postal order by the post office is _____?
A
interest
B
brokerage
C
poundage
D
premium
CORRECT OPTION: c
This is a small fee charged by the post office for sending money through mail. The poundage is paid by the purchaser.
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