🛒 1994

JAMB Commerce 1994 past questions

44 questions from the 1994 JAMB UTME Commerce paper. Free, with answers where available.

Practice with CBT mock → All Commerce years
Commerce JAMB 1994 Q1 ✓ Answer: C
Commerce is defined as the study of how
A
man utilizes the resources in his physical environment
B
man produces, distributes and consumes his goods and services
C
man buys, sells and distributes goods and services
D
raw materials are changed into finished goods.
Commerce JAMB 1994 Q1 ✓ Answer: B
What are the factors with which commercial undertak ings can be distinguished? I Size of the undertakings.II Profits generated. III Forms of ownership.IV Location of the undertak ings.
A
I and II only.
B
I and III only.
C
II and III only.
D
III and IV only.
Commerce JAMB 1994 Q2 ✓ Answer: B
The type of activity which turns processed raw materials into consumer and industrial goods is described as
A
extractive
B
manufacturing
C
constructive
D
processing
Commerce JAMB 1994 Q3 ✓ Answer: B
The production process that combines two or more raw materials into one end product is
A
conditioning
B
blending
C
merging
D
synthesis.
Commerce JAMB 1994 Q6 ✓ Answer: B
Which of the following takes place when firms producing at different stages in the same industry combine?
A
Conglomeration
B
Vertical integration
C
Horizontal integration
D
Cartel.
Commerce JAMB 1994 Q7 ✓ Answer: B
Which of the following groups is paid first when a firm liquidates?
A
Perference shareholders.
B
Debenture holders
C
Ordinary shareholders.
D
Cummulative preference shareholders.
Commerce JAMB 1994 Q8 ✓ Answer: B
Compulsory dissolution of a business can arise from
A
an agreement by the owners
B
a declaration by a court of law
C
the termination of its life
D
an unfavourable economic climate. Commerce 1994
Commerce JAMB 1994 Q9 ✓ Answer: A
What is the circulating capital of the sole proprietor?
A
N27, 380
B
N34, 980
C
N36, 180
D
N51, 680 What is the working capital as at December 31, 1992?
Commerce JAMB 1994 Q12 ✓ Answer: C
What are fixtures and fittings in a balance sheet?
A
Liquid capital
B
Current assets
C
Fixed assets
D
Working capital
Commerce JAMB 1994 Q13 ✓ Answer: C
Government impose import duties for the following reasons EXCEPT
A
to raise revenue for other services
B
to act as as a retaliatory measure against other governments
C
to discourage the redistribution of income at home
D
to protect home industries from external competition.
Commerce JAMB 1994 Q14 ✓ Answer: B
Sole enterprise may flourish best in
A
a mining business
B
a retailing business
C
an oil exploration business
D
a car assembly business
Commerce JAMB 1994 Q15 ✓ Answer: B
The use of coin-operated machines to sell goods is a form of
A
personal selling
B
retailing
C
wholesaling
D
mail-order selling.
Commerce JAMB 1994 Q16 ✓ Answer: B
What is the major function of the wholesaler?
A
Buying from small-scale producers and selling to exporters. [PAGE 3]
B
Buying in bulk and selling in small quantities
C
Granting of credit facilities to retailers
D
Providing information to manufacturers on market situation.
Commerce JAMB 1994 Q17 ✓ Answer: D
The rate at which a country’s exports exchange for its imports is called
A
balance of payments
B
balance of trade
C
terms of payment
D
terms of trade.
Commerce JAMB 1994 Q18 ✓ Answer: A
The different between the total payments for imports and the receipts from exports within a given period is referred to as
A
balance of payments
B
balance of trade
C
comparative cost advantage
D
comparative advantage
Commerce JAMB 1994 Q20 ✓ Answer: B
Which of the following statements is TRUE about sea transport?
A
All ships have specific routes to ply.
B
All ships must be insured at every journey
C
All ships are insured separately from the crew
D
All ships normally arrive at their destination with goods.
Commerce JAMB 1994 Q21 ✓ Answer: D
The postal organization which preceded in Nigerian Postal Service is
A
Post and Telecommunications
B
Post and Telephone
C
Post and Teleprinter
D
Post and Telegraph.
Commerce JAMB 1994 Q22 ✓ Answer: D
Goods discharged from ships on which import duties have not been paid are kept in the
A
ordinary warehouse
B
public warehouse
C
private warehouse
D
bonded warehouse.
Commerce JAMB 1994 Q24 ✓ Answer: D
One of the effects of the devaluation of the Naira is that the
A
goods that can be imported with the Naira have become cheaper
B
value of other currencies relative to the Naira have become cheaper
C
goods that can be exported from Nigeria have become costlier
D
imports that can be bought with the Naira have become costlier.
Commerce JAMB 1994 Q25 ✓ Answer: A
Drawing two parallel lines across a cheque means that is has to be paid into the account of the
A
payee
B
drawer
C
drawee
D
payer.
Commerce JAMB 1994 Q26 ✓ Answer: D
The financial institution established to boost Nigeria’s trade with the rest of the world is called
A
Nigrian Deposit Insurance Corporation
B
Nigeria Economist Reconstruction Fund
C
Nigerian Industrial Development Bank
D
Nigerian Export-Import Bank.
Commerce JAMB 1994 Q27 ✓ Answer: A
Which of the following is both direct and indirect credit enterprises?
A
Co-operative and thrifts society.
B
Retail co-operative society.
C
Consumer co-operative society.
D
Wholesaler co-operative society.
Commerce JAMB 1994 Q28 ✓ Answer: B
The business in the stock exchange is characterized essentially by
A
dealing.
B
brokerage
C
speculations
D
transactions.
Commerce JAMB 1994 Q29 ✓ Answer: A
The Second-Tier Securities Market is
A
an apendage to the Nigerian Stock Exchange
B
a member of the Nigeria Stock Exchange
C
meant for the shares of the quoted private companies
D
a regulating arm of the Nigeria Stock Exchange
Commerce JAMB 1994 Q30 ✓ Answer: A
The elements of the marketing mix are
A
product, promotion, place and price.
B
personal selling, advertising and research.
C
promotion, production, place and price.
D
procurement, price, product and place.
Commerce JAMB 1994 Q31 ✓ Answer: C
Which of the following items has the shortest effect on the consumer?
A
Fashion.
B
Innovation.C. Fad
D
Attribute.
Commerce JAMB 1994 Q32 ✓ Answer: B
Which of the following is a form of sales promotion?
A
Advertising on radio.
B
Offering free samples.
C
Distributing printed materials.
D
Advertising on Television.
Commerce JAMB 1994 Q33 ✓ Answer: A
One advantage of personal selling over all other elements of promotion is that
A
it can provide instant feedback
B
it is very cheap in terms of cost per contract
C
it does not need to use mass media
D
sales people are well trained.
Commerce JAMB 1994 Q34 ✓ Answer: C
Which of the following must be present in an agency by agreement?
A
Intentions.
B
Will.
C
Consent.
D
Authority.
Commerce JAMB 1994 Q35 ✓ Answer: C
An agreement to sell is distinguishable from a sale because in the former, the transfer of goods is
A
not anticipated.
B
not discussed.
C
deferred.
D
immediate.
Commerce JAMB 1994 Q36 ✓ Answer: D
Mr. Amusa says to Mr Bello ‘I will sell you this hat for N30’. And Mr Bello replied ‘I will pay N29’. The contract is
A
an offer and acceptance
B
an implied contract.
C
a complete simple contract.
D
an offer but no acceptance.
Commerce JAMB 1994 Q37 ✓ Answer: A
Nationalization of an industry means that its ownership becomes that of
A
government.
B
shareholders.
C
taxpayers.
D
indigenes. [PAGE 4]
Commerce JAMB 1994 Q38 ✓ Answer: D
The Comprehensive Import Supervision Scheme was set up by the federal government in order to
A
reverse Nigeria’s unfavourable balance.
B
promote fair trade between Nigeria and other countries.
C
counteract all fraudulent business deals of Nigerians with other nationals.
D
ensure that imports into Nigeria are of the correct quality, value and quantity.
Commerce JAMB 1994 Q39 ✓ Answer: C
Which of the following has powers to order withdrawal of a particular food item from circulation?
A
Standards Organisation of Nigeria.
B
Federal High Courts in Nigeria.
C
Food and Drugs Department of the Federal Ministry of Health.
D
Local government health inspectors.
Commerce JAMB 1994 Q40 ✓ Answer: A
Which of the following maxims negates the principle of collective bargaining?
A
Individual employees have weak bargaining base.
B
Individual employees attain strength when they come together in a union.
C
Only members of the union can benefit from agreements negotiated by the union.
D
Collective bargaining covers the vast majority of employees, whether union members or not.
Commerce JAMB 1994 Q41 ✓ Answer: D
NACCIMA stands for
A
Nigerian-American Centre for Culture Industries, Mines and Arts
B
Nigerian Association for Culture, Civics, Industries, Minerals and Arts
C
National Agency for Culture, Civilization, Investments, Manufacturing and Agriculture
D
Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture.
Commerce JAMB 1994 Q42 ✓ Answer: B
For the establisment of a powerful consumers’ association in Nigeria to exist, there must be
A
financial and moral support from the public.
B
honest and committed leadership.
C
allocation of goods from the producers.
D
freedom from external influence.
Commerce JAMB 1994 Q43 ✓ Answer: D
Which of the following is the most important business resources?
A
Money.
B
Management
C
Materials
D
Manpower.
Commerce JAMB 1994 Q44 ✓ Answer: A
The harmonious relationship among the various units in an organization is ensured through
A
co-ordination
B
motivation
C
planning.
D
leadership.
Commerce JAMB 1994 Q45 ✓ Answer: D
The principle of span of control stipulats that
A
an employee should report to only one superior
B
managers must demand accountability from their subordinates
C
resources have to be economized within the various divisions
D
the number of employees reporting to one superior should be kept to a workable maximum.
Commerce JAMB 1994 Q46 ✓ Answer: B
Which of the following makes other functions of business its appendages?
A
Production.
B
Marketing.
C
Finance.
D
Personnel.
Commerce JAMB 1994 Q47 ✓ Answer: D
The use of computers in modern banking industry is a reflection of
A
competitive development
B
scientific development
C
economic development
D
technological development
Commerce JAMB 1994 Q48 ✓ Answer: C
When an oil exploring and mining company builds a health centre in one of the communities where it operates, such a company is
A
currying favour from local people
B
finding a way to spend excess profits
C
fulfilling part of its social responsibility
D
investing its idle funds. The West African Clearing House became legally operational on
Commerce JAMB 1994 Q50 ✓ Answer: D
The Lake Chad Basin Commission was founded to enable member states.
A
expand the volume of water in the Lake for fishing activity
B
increase navigational activities on the lake
C
dam the lake for electricity and agricultural purposes.
D
co-ordinate their efforts in managing the use of the lake’s resources. Commerce 1995