🛒 2001

JAMB Commerce 2001 past questions

29 questions from the 2001 JAMB UTME Commerce paper. Free, with answers where available.

Practice with CBT mock → All Commerce years
Commerce JAMB 2001 Q8 ✓ Answer: C
At the collapse of a business enterprises, the person appointed to dispose of the assets is called
A
a broker
B
an auctioneer
C
a liquidator
D
an auditor
Commerce JAMB 2001 Q9 ✓ Answer: D
Entrusting the management of a comapny to the courts to enable the settlement of the company’s oblilgations is an indication of
A
distress
B
closure
C
bankrupcy
D
liquidation
Commerce JAMB 2001 Q10 ✓ Answer: C
The financial instrument for borrowing in which collateral is usually more than the amount borrowed is
A
trust certificate
B
detachable warrant
C
mortgage bond
D
convertible securities [PAGE 19]
Commerce JAMB 2001 Q11 ✓ Answer: C
I. Personal saving II. Retained Earnings III Acrued Taxes Which of the items above constitute internal sources of financing for companies
A
I & II
B
I & III
C
II & III
D
I, II & III
Commerce JAMB 2001 Q12 ✓ Answer: C
The difference between total current assets and total current liabilities of a business is known as
A
quick ratio
B
liquidity ratiio
C
working capital
D
circulating capital Use the balance sheet below to answer questions 13 and 14. Mama Trading Company N N Liabilities Aseets Capital Fixed Opening capital 350 Current Add Net profit Debt Curent liabilities 800 Bank Cash 1,370 1,370
Commerce JAMB 2001 Q13 ✓ Answer: B
The capital employed is
A
N1,000
B
N1,370
C
N140
D
N50
Commerce JAMB 2001 Q14 ✓ Answer: C
The capital owned is
A
N2,740
B
N1,350
C
N1,150
D
N570
Commerce JAMB 2001 Q15 ✓ Answer: D
One of the reasons why wholesaling must continue is that
A
the tax paid by wholesalers on their profit enhances national revenue
B
by creating artificial scarcity, the wholesaler is enhancing competion in the economy,
C
the wholesaler provides technical advice to the retailer
D
the gap between manufacturers and retailer is reduced by wholesalers
Commerce JAMB 2001 Q18 ✓ Answer: C
The balance of payments of countries is
A
a record of imports and exports
B
a systematic record of transactions among countries at a given time
C
the current and the capital accounts and their payments
D
the trade relationships and payments among nations
Commerce JAMB 2001 Q20 ✓ Answer: B
The trade discount receivebale by Mr. Bacus is:
A
N4,500
B
N7,500
C
N10,500
D
N12,000
Commerce JAMB 2001 Q21 ✓ Answer: B
If Mr. Bacus fulfil his promise, he will be entitled to a cash discount of
A
N2,760
B
N3,000
C
N6,500
D
N9,500
Commerce JAMB 2001 Q22 ✓ Answer: C
Bank Giro is a method of settling debt from a:
A
customer to a bank
B
bank to a customer
C
customer to another
D
bank to another
Commerce JAMB 2001 Q23 ✓ Answer: B
Warehousing is a productive function because it increases the
A
quantity of goods
B
utility of goods
C
quality of goods
D
price of goods
Commerce JAMB 2001 Q25 ✓ Answer: A
Pooling of risk in insurance means that
A
compenstaions are paid out of a common fund
B
two people can pool their risks to be insured
C
two insurance companies can buy two policies
D
insurance companies should encourage taking risks
Commerce JAMB 2001 Q26 ✓ Answer: D
The indemnification of Ama by his insurance cecompany after a fire disaster means that he:
A
has been guaranteed by the insurance company
B
will be cleared of any fault by the insurance company
C
has been by the insurance company
D
will be covered to the limit of the amount in the policy
Commerce JAMB 2001 Q27 ✓ Answer: B
The major difference between insurance and assurance is that while insurance
A
takes care of the uncertainty, assurance takes care of risks
B
takes care of risks, assurance takes care of uncertainty [PAGE 20]
C
hinges on possibilities, assurance is based on possibilities
D
is about indemnity, assurance is about life in the future
Commerce JAMB 2001 Q30 ✓ Answer: D
The temporary working area of the central procession unit is called the
A
C-D ROM
B
C-D RAM
C
ROM
D
RAM.
Commerce JAMB 2001 Q31 ✓ Answer: C
The significance of money to modern economic systems is that it
A
is used as a means of payment
B
promotes specialization and exchange
C
measures value and promotes exchange.
D
causes inflation and deflation in the economy
Commerce JAMB 2001 Q32 ✓ Answer: C
One major charcteristic of credit unions and thrift societies is that
A
the legal processes involved in their formation are rigid.
B
membership is compulsory to peoplein the same line of business
C
the contribution of every member depends on the member’s ability.
D
a minimum of ten people in the same line of business can form the union.
Commerce JAMB 2001 Q34 ✓ Answer: B
The main factors that determines the value of a stock on the Stock exchangea re dividend and
A
the psychology of the market
B
capital gain
C
capital appreciation
D
warrantpayment.
Commerce JAMB 2001 Q35 ✓ Answer: C
One of the main objectives of the second-tier securities market in Nigeria is to
A
achieve a realistic exchnage rate for the Naira
B
eliminate currency dealing in the black market
C
assist companies to raise capital
D
attract investment flow.
Commerce JAMB 2001 Q36 ✓ Answer: C
The activities aimed at finding out customers’ need and satisfaction can be described as
A
socio-marketing
B
macro-marketing,
C
micro-marketing
D
conceptual marketing.
Commerce JAMB 2001 Q38 ✓ Answer: B
Which of these companies are more engaged in public relations activities?
A
I & II
B
I & III
C
II & IV
D
III & IV
Commerce JAMB 2001 Q39 ✓ Answer: B
Which of these companies offer after sales services?
A
IV
B
III
C
II
D
I Use the information below to answer questions 40 and 41 Musa rented a room to Adamu for N1,500 and N1,000 part- payment was made. Adamu brought Audu and Jacob his friends to stay in the room. The two friends later pay the balance of N500 to Musa
Commerce JAMB 2001 Q40 ✓ Answer: B
Who are parties to the contract of renting the room.
A
Musa and Jacob
B
Musa and Audu
C
Adamu and Musa
D
Audu and Jacob.
Commerce JAMB 2001 Q41 ✓ Answer: B
Who is the offeree in this contract?
A
Musa
B
Audu
C
Adamu
D
Jacob
Commerce JAMB 2001 Q43 ✓ Answer: C
One way by which government reduces the repatriation of capital is through
A
nationalization
B
divestiture
C
indigenization
D
naturalization.
Commerce JAMB 2001 Q45 ✓ Answer: B
Departmentalization is an aspect of
A
planning
B
organising
C
directing
D
controlling.
Commerce JAMB 2001 Q47 ✓ Answer: A
In the line type of organizational structure
A
the lines of authority are vertical
B
there is the application of division of labour
C
specialization is carried to a maximum degree
D
The llines of authority are horizontally.