2018 - JAMB Commerce Past Questions & Answers - page 1

1

The act of selling in a foreign market at a price lower than the cost price is called

A
Dumping
B
hedging
C
fair trading
D
under sale
CORRECT OPTION: a
Dumping is a term used in the context of international trade. It's when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter's domestic market.
2

Current account holders withdraw money through

A
Credit card
B
Cheque
C
Transfer
D
Withdrawal form
CORRECT OPTION: b

Current account holder withdraws money using cheque.

A cheque is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued.
3

One of the major problems of a sole proprietor is sourcing for

A
Funds
B
Labour
C
Raw materials
D
Machineries
CORRECT OPTION: a

The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.

On of the disadvantages of sole proprietorship is difficulty in raising funds

4

Which of the following is a verbal means of communication

A
Telephone
B
Express mail
C
Business reply services
D
telex
CORRECT OPTION: a
The sharing of information between individuals by using speech. Individuals working within a business need to effectively use verbal communication that employs readily understood spoken words, as well as ensuring that the enunciation, stress and tone of voice with which the words are expressed is appropriate.
5

Trade fairs in Nigeria are organized by

A
Ministry of commerce and industry
B
Chambers of commerce
C
D. The federal Government
D
Manufacturer’s Association of Nigeria
CORRECT OPTION: b

A chamber of commerce (or board of trade) is a form of business network, for example, a local organization of businesses whose goal is to further the interests of the community

6

Privatization is

A
Transfer of ownership from individual to government
B
Transfer of ownership from government to stakeholders
C
Transfer of ownership from government to individuals
D
Government taking charge of all businesses
CORRECT OPTION: c
The transfer of ownership, property or business from the government to the private sector is termed privatization. The government ceases to be the owner of the entity or business. The process in which a publicly-traded company is taken over by a few people is also called privatization.
7

In the law of contact, a counter offer operates as

A
A contact
B
an acceptance
C
a rejection
D
a rejection
CORRECT OPTION: d
A counter offer is an offer made in response to a previous offer by the other party during negotiations for a final contract.

Making a counter offer automatically rejects the prior offer, and requires an acceptance under the terms of the counter offer or there is no contract

8

What is a Quota?

A
Tax pad on goods produced within a country
B
A physical restriction placed on quantity of goods that can be imported
C
Tax paid on goods produced outside a country
D
Ban on all imported goods
CORRECT OPTION: b
An import quota is a type of trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time. Quotas, like other trade restrictions, are typically used to benefit the producers of a good in that economy.
9

Which of the following functions is not performed by warehousing?

A
Stabilization of price
B
production ahead of demand
C
creating scarcity of goods
D
storage of goods
CORRECT OPTION: c
Functions of Warehousing include: Storage: This is the basic function of warehousing. Price Stabilization: Warehouses play an important role in the process of price stabilization.
Grading and Packing
Regular production
Time utility
Store of surplus goods
Etc.
10

One of these is a current asset

A
Fittings
B
Machineries
C
Motor vehicles
D
stock
CORRECT OPTION: d
Current assets are cash and other assets that are expected to be converted to cash within a year.
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