🛒 1997

JAMB Commerce 1997 past questions

37 questions from the 1997 JAMB UTME Commerce paper. Free, with answers where available.

Practice with CBT mock → All Commerce years
Commerce JAMB 1997 Q1 ✓ Answer: C
Which of the following are the components of commerce? I Trading and advertising II Warehousing and transportation III Packaging and branding IV Insurance and banking.
A
I and II
B
I and III
C
I, II and IV
D
II, III and IV
Commerce JAMB 1997 Q3 ✓ Answer: B
Transportation, retailing and wholesaling industries rely heavily on
A
banking
B
insurance
C
manufacturing
D
railway.
Commerce JAMB 1997 Q4 ✓ Answer: A
An example of indirect service is rendered by
A
civil servants
B
family doctors
C
household servants
D
entertainers.
Commerce JAMB 1997 Q5 ✓ Answer: D
The objectives of a business are determined by the
A
workers
B
government
C
society
D
promoters.
Commerce JAMB 1997 Q6 ✓ Answer: B
Partnerships are most suitable where
A
the partners are family friends
B
professional are involved
C
members can easily raise enough capital
D
government regulations are favourable. Use the conversation below to answer questions 7 and 8. MUSA: Taiwo, why you are in business? TAIWO: To optimize profit, provide quality products
Commerce JAMB 1997 Q7 ✓ Answer: C
The businessman that may end up not discharging his social responsibility is
A
Musa
B
Okon
C
Taiwo
D
Kalu
Commerce JAMB 1997 Q8 ✓ Answer: C
The business with the best objectives is
A
Okon
B
Taiwo
C
Kalu
D
Musa
Commerce JAMB 1997 Q9 ✓ Answer: C
The business organization in which shareholders have equal votes is
A
sole proprietorship
B
partnership
C
co-operative
D
limited liability company.
Commerce JAMB 1997 Q10 ✓ Answer: D
The major objective of corporate mergers is to
A
minimize the effects of taxation
B
increase financial advantage
C
facilitate profit maximization
D
enhance economies of scale.
Commerce JAMB 1997 Q11 ✓ Answer: D
When it becomes necessary to liquidate a company, the first step to be taken is the appointment of
A
a receiver
B
an auditor
C
an accountant
D
a liquidator.
Commerce JAMB 1997 Q12 ✓ Answer: B
In which of the following circumstances is a court order [PAGE 8] NOT necessary for the winding up of a company?
A
Suspension of business for one year.
B
Special resolution of members.
C
Reduction in the number of members below the legal minimum.
D
Inability to pay its debts.
Commerce JAMB 1997 Q13 ✓ Answer: D
One type of investment that has a variable income is
A
debentures
B
preferred shares
C
government bonds
D
ordinary shares.
Commerce JAMB 1997 Q15 ✓ Answer: D
Leasing is the right to use assets for an agreed period in return for
A
profit
B
interest
C
wages
D
rents.
Commerce JAMB 1997 Q16 ✓ Answer: B
The form of business financing which involves pledging of a specific asset is
A
debenture
B
mortgage
C
loan
D
bond.
Commerce JAMB 1997 Q17 ✓ Answer: B
The total amount that a company is allowed to raise according to its memoradum of association is known as
A
issued capital
B
authorized capital
C
called-up capital
D
paid-up capital
Commerce JAMB 1997 Q19 ✓ Answer: A
The turnover of a firm may be affected by
A
the demand for its product
B
the cost of its goods sold
C
its closing stock
D
its net assets.
Commerce JAMB 1997 Q20 ✓ Answer: D
The cost of transporting goods to customers is called
A
carriage inward
B
carriage forward
C
carriage paid
D
carriage outward.
Commerce JAMB 1997 Q21 ✓ Answer: D
The main aim of selling directly to consumers by manufacturers is to
A
discourage the activities of middlemen
B
make contact with consumers
C
eliminate transportation cost
D
maximize the profit margin.
Commerce JAMB 1997 Q22 ✓ Answer: A
In foreign trade, document of title is known as
A
bill of lading,
B
bill at sight
C
certificate of origin
D
declaration form.
Commerce JAMB 1997 Q23 ✓ Answer: B
Excise duties are paid on goods that are
A
imported into the country
B
manufactured within the country
C
exported to other countries
D
kept in bonded warehouses.
Commerce JAMB 1997 Q24 ✓ Answer: D
Stevedores as a term in foreign trade means men who
A
inspect goods in shipsB. import goods by ships
C
collect duties in ships
D
load and unload ships
Commerce JAMB 1997 Q26 ✓ Answer: C
The basic distinction between cash discount and trade discount is that while trade discount is
A
for a period of 30 days, cash discount is for a period of 3 months
B
given by a wholesaler, cash discount is given by a bank
C
a reduction in the cataloque price of an article, cash discount is a reduction in the invoice value
D
a reduction in value of sales, cash discount is a reduction in price of goods.
Commerce JAMB 1997 Q27 ✓ Answer: B
The cost that arises from failure to load or unload a ship at the port within a stipulated period is known as
A
excess charges
B
demurrage charges
C
premium charges
D
trade charges.
Commerce JAMB 1997 Q28 ✓ Answer: C
The mode of transportation that is noted for ontime dependability and low cost per unit on goods carried is
A
pipeline
B
air
C
rail
D
road.
Commerce JAMB 1997 Q30 ✓ Answer: D
The main purpose of insurance is to
A
encourage business to survive and grow
B
ensure that facilities are available for operations
C
accept risks and extend credits to policy holders
D
spread individual losses over all covered participants.
Commerce JAMB 1997 Q31 ✓ Answer: C
Bank giro is a system where
A
Commercial banks can give loans to all customers
B
a central bank opens accounts for commercial banks
C
a customer uses a cheque to pay several bills
D
a customer closes his account by writing a cheque.
Commerce JAMB 1997 Q32 ✓ Answer: D
Commercial banks are referred to as departmental stores of banking because they
A
have many branches
B
have many customers
C
are found in the cities
D
offer many types of services.
Commerce JAMB 1997 Q34 ✓ Answer: B
When a firm speaks of stock appreciation, it refers to
A
changes in the value of its stock resulting from price movements
B
increase in the price of its shares quoted on the stock exchange
C
an unexpected increase in the demand for its stocks