2018 - JAMB Commerce Past Questions and Answers - page 2

11

From which of the following sources can partnership increase their capital?

A
Sales of shares
B
Admission of new partners
C
Discharge of mortgage
D
Grants from relatives
correct option: b

Admission of new partners in a business can be a major source of raising more capital for the business.

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12

One of the disadvantages of rail transport is

A
It is not flexible
B
It carries bulky goods
C
It works at intervals
D
Cost of transportation is high
correct option: a

Disadvantages of rail transportation include:
Lack of Flexibility, Lack of Door to Door Service, Monopoly, Unsuitable for Short Distance and Small Loads, Booking Formalities, No Rural Service, Under-utilized Capacity

there is lack of flexibility in rail transportation

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13

The Central Bank Monetary policy instrument by which it buys and sells securities is called

A
Bank rate
B
Cash reserve ratio
C
Open market operation
D
Bank credit
correct option: c

Open market operations (OMO) refer to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system.

Open Market Operations. Definition: The Open Market Operations refers to the sale and purchase of government securities and treasury bills by the central bank of the country with a view to regulate the supply of money in the economy.

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14

The duties paid on goods produced locally is

A
Ad-valorem duty
B
excise duty
C
export duty
D
quota
correct option: b
An excise or excise tax is any duty on manufactured goods which is levied at the moment of manufacture, rather than at sale
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15

A title, symbol, or design that distinguishes a company is called

A
Brand name
B
Trademark
C
copyright
D
Patent right
correct option: b

A trademark, trade mark, or trade-mark is a recognizable sign, design, or expression which identifies products or services of a particular source from those of others

trademark is a symbol, word, or words legally registered or established by use as representing a company or product.

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16

The board of directors of public enterprise is appointed by who?

A
Employees
B
management
C
government
D
shareholders
correct option: d

Shareholders of the enterprise elect the Board of Directors. A board of directors (B of D) is a group of individuals, elected to represent shareholders.

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17

The factors which critically determines the choice of occupation is

A
Skill
B
Training
C
Aptitude
D
Interest
correct option: a
Occupational choice is affected by four factors: psychological, social, economic, and cultural. An individual's job choice is molded by their family, morals, values, intelligence, abilities, finances, and many other factors
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18

Bank overdraft as a short term source of fund is

A
A current liability
B
An overdrawn account
C
Grade to a newly opened account
D
Repayable after more than a year
correct option: a

An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation the account is said to be "overdrawn

Current liabilities are a company's debts or obligations that are due within one year or within a normal operating cycle, example is overdraft

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19

Which of the following has power to order withdrawal of a particular food item from circulation?

A
Food and Drug Department of the Federal Ministry of Health
B
Federal High Courts in Nigeria
C
Standard Organization of Nigeria
D
Local Government Health Inspectors
correct option: a
The Planning, Research and Statistics Department (PRSD) is responsible for policy formulation and analysis, socio-economic research, development and coordination of strategies for programme/project implementation as well as establishment of data bank and management information system for the Ministry.
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20

In Nigeria, the ministry in charge of registering trade association is that of

A
Culture and tourism
B
Finance
C
Industries
D
Commerce
correct option: d

The Ministry of commerce also provides Geological Services for Industrial and Commercial, Registration of Trade Groups and artisans and Export promotion.

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