2023 - JAMB Commerce Past Questions and Answers - page 1

1

The activity of buying goods in bulk and selling in small quantities to retailers is known as ___

A

wholesaling

B

retailing

C

merchandising

D

assembling

correct option: a

Wholesaling involves purchasing goods in large quantities from producers or manufacturers and then selling them in smaller quantities to retailers, who in turn sell to the end consumers. This process allows wholesalers to take advantage of volume discounts and provide a variety of products to retailers without requiring them to maintain large inventories.

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2

 

The production of goods and services in anticipation of demand is made possible by ___

A

warehousing

B

packaging

C

branding

D

advertising

correct option: a

Warehousing allows businesses to store goods until they are needed, enabling the production of goods in anticipation of demand. This storage capability ensures that products are available when consumers are ready to buy, even if the items were produced earlier.

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3

The payment made by a speculator to the buyer when he is unable to deliver stocks on the agreed date is

A
contango
B
arbitrage
C
backwardation
D
franco
correct option: c
Backwardation refers to a situation in financial markets where the current price of an underlying asset is higher than prices trading in the futures market. When a speculator cannot deliver the stocks on the agreed date, a payment may be made to the buyer, which is related to the concept of backwardation, as the speculator would need to settle the position at potentially unfavorable current market prices.
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4

The principle which requires the insurance company to disclose to the proposer all material facts of the risk to be covered is

A
uberrimae fidei
B
subrogation
C
contribution
D
proximate cause
correct option: a
Uberrimae fidei, or utmost good faith, is a principle in insurance that requires both parties, the insurer and the insured, to act in good faith by disclosing all material facts relevant to the risk being insured. This principle ensures that the insurer can accurately assess the risk and set appropriate premiums.
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5

Another name or term for a dishonoured cheque is

A
a bearer cheque
B
an open cheque
C
a bounced cheque
D
an order cheque
correct option: c
A bounced cheque, also known as a dishonoured cheque, is a cheque that cannot be processed because the account on which it was drawn does not have sufficient funds. Banks return, or 'bounce,' these cheques to the issuer, indicating that the payment cannot be made due to insufficient funds.
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6

Current account holders withdraw money through

A
transfer
B
credit cards
C
withdrawal form
D
cheque
correct option: d
Current account holders commonly use cheques to withdraw money from their accounts. Cheques provide a convenient and secure way to make payments from the account without needing to carry cash.
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7

An agent who has to sell perishable goods without the prior authority of the owner becomes an agent by

A
estoppel
B
conduct
C
necessity
D
ratification
correct option: c
An agent by necessity is someone who is appointed to act on behalf of the owner in an emergency situation, without prior authorization, when it is necessary to prevent loss or damage. Selling perishable goods quickly to avoid spoilage is an example of acting out of necessity.
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8

At the collapse of a business enterprises, the person appointed to dispose off the assets is called

A
an auctioneer
B
an auditor
C
a broker
D
a liquidator
correct option: d
A liquidator is appointed when a business enterprise collapses or goes into liquidation. The liquidator's role is to oversee the process of winding up the company, which includes selling off assets to pay creditors and distributing any remaining funds to shareholders.
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9

Which of the following attracts only interest but leaves the capital unpaid?

A
a development bond
B
a long term loan
C
an irredeemable bond
D
redeemable bond
correct option: c
An irredeemable bond is a type of bond that does not have a maturity date. Investors in irredeemable bonds receive interest payments indefinitely, but the principal amount of the bond is not repaid unless the issuer decides to pay it off.
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10

The process of dividing tasks into jobs and departments and delegating authority is known as

A
organizing
B
staffing
C
directing
D
leading
correct option: a
Organizing is the management process of arranging people and resources to work towards a common goal. This includes dividing tasks into jobs and departments, and establishing a structure to coordinate and control activities effectively.
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