🛒 1998

JAMB Commerce 1998 past questions

52 questions from the 1998 JAMB UTME Commerce paper. Free, with answers where available.

Practice with CBT mock → All Commerce years
Commerce JAMB 1998 Q1 ✓ Answer: C
Which of the following contributed least to the evolution of commercial activities in Nigeria?
A
Development of banks
B
Development of transportation.
C
Development of traders’ unions.
D
Development of currencies.
Commerce JAMB 1998 Q1 ✓ Answer: C
The conversion of raw materials into finished products creates
A
marginal utility
B
place utility
C
form utility
D
time utility
Commerce JAMB 1998 Q2 ✓ Answer: C
One of the factors which critically determines the choice of occupation is
A
training
B
skill
C
aptitude
D
interest.
Commerce JAMB 1998 Q2 ✓ Answer: A
Commerce makes it possible for man to live in a
A
complex and organized society
B
society characterized by subsistency
C
society characterized by dependency
D
simple and organized society. Use the information below to answer questions 3 and 4. Aboki Plc became insolvent and decided to wind up to meet the legitimate claims of its creditors. Babalawee was called in to manage the dissolution.
Commerce JAMB 1998 Q3 ✓ Answer: C
Extractive industries may also be denominated as
A
direct industries
B
servicing industries
C
primary industries
D
indirect industries.
Commerce JAMB 1998 Q3 ✓ Answer: C
After paying the debts of Aboki Plc, the balance goes to
A
Aboki Plc
B
Babalawee
C
shareholders
D
creditors.
Commerce JAMB 1998 Q4 ✓ Answer: B
The primary objective of a business organization is to
A
cater for the needs of its owners
B
work towards making returns
C
assist the government to serve the citizens
D
improve the standard of living of its proprietors.
Commerce JAMB 1998 Q4 ✓ Answer: D
Babalawee is a
A
a claimant
B
a manager
C
an assessor
D
a receiver.
Commerce JAMB 1998 Q5 ✓ Answer: D
Services which are of absolute monopoly can best be provided by [PAGE 10]
A
private companies
B
limited liability companies
C
public companies
D
public enterprises.
Commerce JAMB 1998 Q7 ✓ Answer: C
It can be deduced from the above that Obi AgriculturalVentures is a
A
sole proprietorship
B
general partnership
C
limited partnership
D
joint venture.
Commerce JAMB 1998 Q8 ✓ Answer: B
Which of the statements below is true of Mr Abayomi?
A
He can assign his shares to another without consent of other partners
B
He cannot take part in the management of the business.
C
His actions as a limited partner can bind the firm.
D
His death will authomatically dissolve the partnership.
Commerce JAMB 1998 Q10 ✓ Answer: B
Which of the following is an example of a conglomerate?
A
National Electric Power Authority
B
United Africa Company Nigeria Plc
C
The Nigerian Railway Corporation.
D
First Bank Nigeria Plc.
Commerce JAMB 1998 Q11 ✓ Answer: C
Which of the following statements is true of preferred stockholders?
A
They have no voting rights at annual general meetings
B
They have first claim to company assets before creditors
C
They have first claim to company assets after all debts have been settled.
D
They share dividends equally with common stockholders.
Commerce JAMB 1998 Q13 ✓ Answer: A
What is the current ratio?
A
4:1
B
4.5:1
C
5:1
D
25.5:1 What is the acid ratio?
Commerce JAMB 1998 Q15 ✓ Answer: B
The form of capital which is easily transferred into the form desired is known as
A
working capital
B
liquid capital
C
circulating capital
D
capital employed.
Commerce JAMB 1998 Q16 ✓ Answer: B
If a firm’s turnover is N15,000 and the cost of goods sold is N10,000, what is the percentage of gross profit on sales?
A
23.3%
B
33.3%
C
50.0%
D
66.6%
Commerce JAMB 1998 Q19 ✓ Answer: C
Entrepot trade is said to have taken place when goods are
A
held at the port pending payment of custom duty
B
sold in the ship under special regulation
C
imported and then re-exported
D
kept for further processing before sales.
Commerce JAMB 1998 Q20 ✓ Answer: D
When a price is quoted at F.O.B.it means that the price
A
excludes loading charges incurred in bringing the goods to the dock
B
excludes all necessary shipping charges payable for insurance
C
includes all charges payable on shipping a consignment to the port of destination
D
includes charges payable for loading goods onto the ship.
Commerce JAMB 1998 Q21 ✓ Answer: B
Emeka ordered goods for his retail shop. The manufacturer sells the goods at retail price of N500 but would give it to Emeka at N400. What kind of discount did he get?
A
Cash discount
B
Trade discount
C
Quantity discount
D
Seasonal discount
Commerce JAMB 1998 Q22 ✓ Answer: D
Nigerian Postal Services (NIPOST) facilitates commerce in all the following ways except through
A
cash on delivery service
B
recorded delivery service
C
express service
D
free on board service.
Commerce JAMB 1998 Q23 ✓ Answer: C
The document with which a manufacturing enterprise releases stock of raw materials to the factory for production is called [PAGE 11]
A
stock release form
B
goods received note
C
store issues voucher
D
materials release note.
Commerce JAMB 1998 Q24 ✓ Answer: A
The two main categories under which marine losses fall into are
A
particular loss and average loss
B
actual loss and general loss
C
total loss and partial loss
D
voyage policy loss and time policy loss.
Commerce JAMB 1998 Q25 ✓ Answer: D
Insurance companies operate on the principle of indemnity. This means that an insured person or firm collects
A
only half of the loss suffered
B
double the value of the loss suffered
C
the total sum of the premiums paid prior to the loss
D
damage claims equal to the loss suffered.
Commerce JAMB 1998 Q26 ✓ Answer: A
The most important difference between community banks and peoples’ bank is that the
A
latter is owned solely by government while the former are not
B
former cater for rural dwellers while the latter caters for both rural and urban dwellers
C
former are service oriented while the latter is profit oriented
D
latter advances loans to the public while the former advance loans to rural dwellers only.
Commerce JAMB 1998 Q27 ✓ Answer: C
The assets, liabilities and general management of a distressed bank may be taken over by
A
International Bank for Reconstruction and Development
B
Nigerian Industrial Development Bank
C
Nigerian Deposit Insurance Corporation
D
Nigerian Bank for Commerce and Industry.
Commerce JAMB 1998 Q28 ✓ Answer: D
The type of securities that the stock exchange deals with are
A
warrants, currency notes, money orders and postal orders
B
cheques, bank drafts, warrants and promissory notes
C
bonds ivory, treasury bills, debentures and warrants
D
stocks, shares, bonds and warrants.
Commerce JAMB 1998 Q29 ✓ Answer: B
I. Companies must be registered as private limited liability companies II. Companies must have less than 100 shareholders. III. No shareholder may have more than 75% of issued share capital. What of the above are reqirements for admission into the second-tier securities market?
A
I and II only
B
I and III only
C
I, II and III
D
II and III only.
Commerce JAMB 1998 Q30 ✓ Answer: B
An underlying principles in the marketing of goods is that firms should
A
train their personnel
B
be consumer oriented
C
advertise the goods
D
sell through outlets.
Commerce JAMB 1998 Q31 ✓ Answer: B
Product X was introduced into the market at N4.00 with its cost of production at N3.90 while competing products are selling at N4.50. What pricing policy are producers of X adopting?
A
Market skimming
B
Market penetration
C
Product live promotion
D
Above the market pricing.
Commerce JAMB 1998 Q32 ✓ Answer: B
The oral presentation in a conversation with one or more prospective buyers for all purpose of making sales is
A
branding of goods
B
personal selling
C
packaging
D
publicity.
Commerce JAMB 1998 Q33 ✓ Answer: C
Personnel activities that promote the general image of an organisation are part of
A
advertising
B
sales promotion
C
public relations
D
business correspondence.
Commerce JAMB 1998 Q34 ✓ Answer: B
An agent must not make any secret profits in the performance of his duties but can only be rewarded by his principal through
A
remuneration and indemnity
B
payment of commission and salary
C
granting of business concessions
D
forwarding of business links.
Commerce JAMB 1998 Q35 ✓ Answer: D
Sabo and Gambo entered into a contract for the sale of two baskets of tomatoes belonging to Gambo before the date pf delivery and without any default by Gambo, the tomatoes were stolen.This is an example of termination of contract by
A
breach
B
performance
C
fault
D
frustration.
Commerce JAMB 1998 Q38 ✓ Answer: B
The most essential element of a product is the
A
price
B
utility
C
design
D
colour
Commerce JAMB 1998 Q39 ✓ Answer: D
Which of the following is a disadvantage of nationalization?
A
It promotes poor economic planning
B
The cost of services is not determined by market forces.
C
It may lead to rationalization or resources
D
The development of local skills and technologies is retarded.
Commerce JAMB 1998 Q40 ✓ Answer: C
An example of a consumer protection agency is the
A
Nigerian Bar Association
B
Nigerian Medical Association
C
Federal Environmental Protection
D
Manufacturers Association of Nigeria.
Commerce JAMB 1998 Q41 ✓ Answer: C
The body that organizes, promotes and participates in local and foreign trade fairs is the
A
Ministry of Commercial and Tourism [PAGE 12]
B
Ministry of Finance
C
Chambers of Commerce
D
Export Promotion Council.
Commerce JAMB 1998 Q42 ✓ Answer: C
The Continental West African Conference is a
A
group of aWest African countries trading in the same products
B
conference to foster unity among the West African countries
C
group of shipping lines operating on the same West African route
D
trust with shareholders from all West African countries.
Commerce JAMB 1998 Q43 ✓ Answer: D
The least of the advantages of indigenization is that
A
the standard of living of the indigenes is improved
B
the economy is controlled by the nationals
C
entrepreneural skill is developed
D
foreigners’ domination is avoided.
Commerce JAMB 1998 Q43 ✓ Answer: B
The main function of thrift, credit and loans co-operative societies is to
A
educate their members
B
collect money from their members
C
disburse money to their members
D
raise investment finance among their members.
Commerce JAMB 1998 Q44 ✓ Answer: B
The main objective of a trade association can best be described as promoting and protecting
A
the products
B
common interest
C
the market
D
customer’s interest.
Commerce JAMB 1998 Q44 ✓ Answer: A
Management is described as
A
getting things done through people
B
implementation of business decisions
C
the number of levels in an organization
D
the people in authority in an organization
Commerce JAMB 1998 Q45 ✓ Answer: D
The management function of evaluating whether objectives are being achieved is
A
planning
B
directing
C
organizing
D
controlling.
Commerce JAMB 1998 Q45 ✓ Answer: A
Under normal circumstance, a business enterprise can be ideally structured
A
by products, function or territories
B
around the personalities in the enterprise
C
on the rulling of the management
D
on the basis of an order from stockholders.
Commerce JAMB 1998 Q46 ✓ Answer: D
In a business organization, the annual operation plan or budget is a form of
A
casual plan
B
medium-term plan
C
long-term plan
D
short-term plan.
Commerce JAMB 1998 Q46 ✓ Answer: C
EXTERNAL INTERNAL EXTERNAL ENVIRONMENT ENVIRONMENT ENVIRONMENT Which of the following sequences can best fit into the structure above?
A
People control ideas
B
Material production ideas
C
Finance marketing product.
D
Materia production product.
Commerce JAMB 1998 Q47 ✓ Answer: D
When a business enterprises provides free service to its environment, the services is said to be a
A
civic responsibility
B
philanthropic
C
consideration
D
social responsibility.
Commerce JAMB 1998 Q48 ✓ Answer: C
Social responsibility of business requires enterprises to
A
hold annual social parties for the public
B
draw their workers only from the immediate environment
C
address themselves to issues relating to the society.
D
set up social welfare centres in their areas of operation.
Commerce JAMB 1998 Q48 ✓ Answer: B
Inventory control is an aspect of
A
operations research
B
materials management
C
the organizing functions
D
span of control.
Commerce JAMB 1998 Q49 ✓ Answer: C
The existing system of governance and the administrative sub-divisions of a country which affect the operations of business in the country is described as
A
economic environment
B
legal environment
C
political environment
D
social environment. Sudden technological changes can have the effect of making
Commerce JAMB 1998 Q49 ✓ Answer: C
The reduction of import duties among the member countries of ECOWAS is an example of
A
preference duties
B
preferential treatment
C
preference tariffs
D
preferential excise
Commerce JAMB 1998 Q50 ✓ Answer: C
In a common market, member countries agree basically to
A
place bans on other countries’ products
B
wage war against other countries
C
establish common barriers against countries outside the market
D
negotiate with countries outside the market for favourable terms of trade Commerce 1999 one else without permission from other shareholders