All 50 questions from the General Certificate of Education (GCE) Commerce 2025 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
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A function of commerce is to
Commerce fundamentally exists to enable the flow of goods and services from producers to consumers through various channels.
Labour as a factor of production attracts
In economic theory, each factor of production receives a specific type of income; labour receives wages as compensation for work performed.
Which of the following industries uses wood to make furniture?
The construction industry includes the manufacturing of furniture as it relates to building and outfitting structures.
A factor which will not influence choice of occupation is
While intelligence, risk and salary directly affect individual career choices, general population doesn't typically influence a person's choice of occupation.
An aid to trade that provides information about a product is
Advertising is an aid to trade specifically designed to provide information about products and services to potential customers.
A feature of land is that
Land is a factor of production that has a fixed total supply on Earth - we cannot create more land in a general sense.
The industry that transforms raw materials into finished goods is
Manufacturing is defined as the process of converting raw materials into finished products.
An organization formed to control prices of commodities by restricting the quantity supplied is a
A cartel is precisely defined as an association of producers that agrees to fix prices and limit production to reduce competition.
If a groundnut farmer takes over a vegetable oil processing company, the merger is
The farmer is moving downstream towards the consumer in the supply chain, which is forward integration.
A chamber of commerce is an association of business individuals aimed at promoting the interest of the
A chamber of commerce primarily exists to promote and protect the interests of its business members.
In business, the net value of the owner's assets is
The net value of the owner's assets (after deducting liabilities) represents the capital owned by the business proprietor.
Quick decision making is a feature of a
With a sole owner making all decisions without consulting partners or boards, sole proprietorships can make decisions quickly.
A business unit that is restricted from transferring shares freely is a
A defining characteristic of private companies is restriction on the free transfer of shares.
Use the information below to answer this question and the next two. Table: Stock as at 01/01/2024 = 20,000; Stock as at 31/12/2024 = 50,000; Purchases = 100,000; Sales = 90,000. The cost of goods sold is
Cost of goods sold = Opening stock + Purchases - Closing stock = 20,000 + 100,000 - 50,000 = #70,000.
The gross profit is
Gross profit = Sales - Cost of goods sold = 90,000 - 70,000 = #20,000.
The rate of stock turnover is
Average stock = (20,000+50,000)/2 = 35,000. Stock turnover = Cost of goods sold / Average stock = 70,000/35,000 = 2 times.
An organization that protects users of products is a
A consumers' association specifically exists to advocate for and protect the interests of product users/consumers.
An attribute of a cooperative society that makes it democratic is
Democratic governance in a cooperative society means each member gets one vote regardless of their shareholding, the 'one member, one vote' principle.
A function of a wholesaler to a producer is
Wholesalers often grant credit facilities to producers, easing the producer's cash flow while goods move through the supply chain.
A deficit in the balance of trade occurs when
A trade deficit occurs when the value of visible imports exceeds the value of visible exports.
Which of the following trade documents prevents understatement of prices?
A consular invoice, certified by the importing country's consulate, is used to verify and prevent under-invoicing (understatement) of prices.
The quality of money that enables it to serve as a medium of exchange is
For money to function as a medium of exchange, it must be widely accepted for transactions.
Application for insurance cover could be done using a
A proposal form is completed by an applicant when applying for insurance coverage.
Sharing of risks among insurance companies is
Re-insurance is when an insurance company transfers portions of risk in its portfolios to other insurers.
An organization that provides facilities and arranges for the purchase and sale of goods is
A commodity exchange provides facilities and arranges for the purchase and sale of commodities/goods.
An example of an invisible item in the balance of payment account is
Invisible items in the balance of payments relate to services rather than physical goods; salaries of expatriates (a payment for labour services) are considered 'invisible' items.
Which of the following documents would be used to collect imported goods?
A bill of lading is a legal document issued by a carrier as evidence of the contract between shipper and carrier, and is used to collect goods at the destination port.
A merit of credit sale is
Credit sales allow buyers to pay for goods over time, improving their living standard by enabling purchases beyond immediate cash availability.
A financial institution which offers loans to small scale businesses is a
Microfinance institutions specialize in providing small-scale loans and financial services to small businesses.
Dealers in the stock exchange who buy and sell shares on their own account are
Jobbers (now called market makers) buy and sell shares on their own account, providing liquidity to the market, unlike brokers who act on behalf of clients.
The price quoted when the exporter bears all the expenses up to the port of departure is
F.O.B (Free on Board) means the exporter's price covers all expenses up until the goods are loaded onto the vessel at the port of departure.
Use the information below to answer this question and the next. Gibril bought shares from a company at D40 per share and sold them to Sam at D 60 each. Gibril sold the shares at a
Since Gibril sold the shares (D60) above the price he purchased them for (D40), he sold at a premium.
In his decision to buy the share at a high price, Sam is acting as a
A 'bull' is an investor who buys, believing prices will rise further, expecting to profit from the increase - matching Sam's decision to buy at a high price.
An advert for the sale of cattle placed on a butcher's journal is a(n)
Placing an advert specifically on a butcher's journal targets a specific relevant audience directly, making it direct advertising.
The fastest means of delivering parcels is through
Courier services specialize in rapid, door-to-door delivery, making them the fastest means of delivering parcels among the options.
Which of the following medium of communication is used within an organization only?
A memo (memorandum) is an internal communication tool used exclusively within an organization.
A body charged with the responsibility of ensuring that products being sold are of a specified requirement is a
A standards organization is specifically responsible for ensuring products meet specified quality/safety requirements.
A trade fair is an example of
Trade fairs are events where companies showcase their products to potential buyers, making them a form of sales promotion.
The document used when goods are delivered by an independent carrier is
A consignment note is issued by an independent carrier as a document of transport when goods are delivered.
A form of advertising where firms jointly finance the advertisement of their products is
Cooperative advertising involves multiple companies sharing the cost of advertising campaigns.
A contract of sale where the selling price includes interest is a
In a hire purchase agreement, the buyer pays for goods over time, with interest added to the original selling price.
An advantage of deregulation is that it
Deregulation directly removes or relaxes government rules and restrictions on business operations.
A term used to identify a product is
A trademark is a legally registered symbol, name, or phrase used to identify and distinguish a company's products from others.
If Rose feeds her neighbour's son because of his inability to pick him on time, she becomes an agent by
Agency by necessity occurs when someone acts on behalf of another without prior authority, due to an emergency or necessity.
Which of the following activities is considered as a pre-sale service?
Displaying goods is a pre-sale service that helps customers evaluate products before making a purchase decision.
Recruitment and placement of workers in an organization is a function of the
The human resources department is specifically responsible for hiring, placing, and managing an organization's workforce.
A disadvantage of privatization is that
In privatised enterprises, the drive for profits can take precedence over providing affordable essential services, potentially leading to higher prices for basic goods.
Which of the following is not a business objective?
Competition is a market condition, not an objective that businesses set for themselves.
An objective of ECOWAS is to
The Economic Community of West African States (ECOWAS) aims to promote economic integration by removing trade barriers like tariffs and quotas between member states.
Which of the following countries is not a member of the Lake Chad Basin Commission?
Ghana is not a member of the Lake Chad Basin Commission. The commission includes countries that share the Lake Chad basin, which Ghana does not.
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