All 50 questions from the Joint Admissions and Matriculation Board (JAMB) Commerce 2007 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
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Public relations and advertising are similar in terms of
A PR officer and an advertiser both work to create a favourable attitude toward the product or entity they represent.
Which of the following best describes inputs for any production activity?
Material resources broadly cover raw materials and human resources, describing all types of resource an organisation may need as production inputs.
Personal selling is most effective in marketing industrial goods because it involves
Industrial goods are heavy-duty items requiring installation and practical demonstration, making after-sales service and demonstration key to personal selling.
The controllable variables that a firm uses to achieve its marketing objectives are called
Price, product, place and promotion are the controllable variables under a firm's control, collectively known as the marketing mix.
The body regulating the sale and purchase of shares in Nigeria is the
The Securities and Exchange Commission (SEC) is the body responsible for regulating the purchase and sale of financial instruments in Nigeria.
The function of money that facilitates the comparison of the quality of goods as a basis of exchange is the
Money as a measure of value ensures each product is valued in monetary terms, allowing comparison of goods.
The difference between the buying and selling price of shares is known as
Brokerage is the difference between the selling price and buying price of the same share.
A share premium is an example of
Share premium is a capital reserve; it arises only occasionally and cannot be used to cover day-to-day running costs of a business.
A credit instrument which also serves as a legal tender is
A money order is a guaranteed form of payment for a specified amount that can be used as a legal instrument of payment between two parties.
Use the information below to answer questions 10 and 11. Balance sheet of XYZ as at 31/12/2003: Ordinary share capital 25,000,000; Fixed assets 26,000,000; Revenue reserve 10,000,000; Investment 22,000,000; General reserve 3,000,000; Current assets 5,000,000; Long-term liabilities 4,000,000; Current liabilities 11,000,000. Determine the owners' equity.
Owners' equity = Total assets - Total liabilities = 53,000,000 - (4,000,000+11,000,000) = 53,000,000 - 15,000,000 = #38,000,000.
What is the net working capital?
Working capital = Current assets - Current liabilities = (5,000,000+22,000,000) - 11,000,000 = 27,000,000 - 11,000,000 = #16,000,000.
A major benefit a debtor can derive from using a credit facility is
Paying with a credit facility is more convenient for a debtor than having to carry and pay with cash.
The central bank controls the quantity of money in circulation through
Open Market Operations (OMO) - buying and selling government securities - is how the Central Bank controls money supply in the economy.
Which of the following is a risk-free security?
Treasury bills are government securities and are considered risk-free since government has many means of repaying its debt.
A new company requiring a large amount of equity finance may source funds from the
The capital market is the source of long-term funds; companies needing a large equity capital layout can raise it by issuing shares in the capital market.
The selling of new shares to existing shareholders is referred to as
A rights issue involves offering new shares for sale to existing shareholders.
The World Tourism Organization has its headquarters in
The UN World Tourism Organization (UNWTO) is headquartered in Madrid, Spain.
Digital computer is divided into
Digital computers are broadly classified by size/capacity into micro, mini, mainframe and super computers.
The internet is a system of telecommunications used for
A major function of the internet is enabling the sending of electronic messages (e.g. email).
An agreement by the insurer to compensate the insured for losses suffered is
Indemnity is the principle whereby the insured is compensated (made whole) for losses suffered from an insured event.
The first stage of tourism planning is
Before undertaking tourism planning, a list of possible tourist destinations/attractions must first be prepared, forming the basis of the plan.
One of the functions of the Nigerian Port Authority is the provision of
The Nigerian Port Authority ensures port facilities are available to aid the speedy loading and offloading of cargoes.
An announcement of a person's willingness to enter into a contract is referred to as
Acceptance is the announcement that a person is ready and willing to enter into a contractual agreement with another party.
The major determinant of fire insurance premium is the
The type of building/object insured and its structure determine the amount of premium charged for fire insurance.
A distinctive advantage of GSM is its
GSM phones are easily carried from place to place, ensuring the owner remains connected wherever they go - a mobility advantage.
In the permanent storage device, DASD means
DASD stands for Direct Access Storage Device.
Citizens are against privatization mainly because of
Privatisation transfers control of corporations to private individuals whose main aim is profit maximization, which tends to raise prices.
The business environment that takes into cognizance the age distribution, ethnic mix and educational level of the consumer is
Demography deals with the structuring of a population by age, ethnicity, religion and education - the demographic environment.
Consumers require protection against exploitation to ensure
The main reason for protecting consumer interest is to ensure consumers get quality commensurate with the money they spend on goods.
The major achievement of ECOWAS is
The most traceable achievement of ECOWAS so far is free mobility of labour, allowing citizens of member states to move easily to seek job opportunities.
The macro environmental forces and trends which are a constraint on business operations are referred to as
External factors are those beyond an organisation's control; any factor that can constrain business operations from outside is external.
An agent who takes title to goods and has authority to buy and sell on behalf of another is
A factor is a mercantile agent who transacts business (buying/selling) in his own name without necessarily disclosing his principal, while holding title to the goods.
A memorandum of Association is applicable to
The memorandum of association discloses a joint stock company's relationship with outsiders and is a requirement for incorporating such a business.
The creation of utilities to satisfy human wants is referred to as
Production is defined as all activities that create utility, i.e. satisfy human wants.
A major criticism of a cooperative society is
Because anyone can vie for management positions (decided by voting) in a cooperative society, there is a high tendency of management incompetence.
Law making is an example of
Law making is an indirect service since the cost of the effort of making laws cannot be directly linked to the individual beneficiary.
A major function of an entrepreneur is
The entrepreneur is the sole decision-maker in his business, making decision-making his major function.
The scope of economic activities can be enlarged by
Trading and aids to trade (transport, banking, insurance, warehousing, advertising, etc.) together form the broad subject that enhances economic activity.
A major advantage of a cooperative society is that it
A cooperative society encourages members to save and manage their spending more economically (thrift).
An economic activity which deals with natural resources is a form of
Extractive industries deal in exploring and obtaining raw materials from their original natural sources.
A document which advertises the shares of a company is known as
A prospectus is the document used by public limited companies to invite the public to subscribe to their shares.
The making of doors from timber planks is a type of
Manufacturing involves converting raw or semi-finished materials (timber planks) into a more useful finished product (doors).
The sustainable growth of commerce is largely due to
The growth of commerce depends on the exchange of goods and services among individuals and countries, since any single person or country has a limit to growth alone.
A major setback of international trade is
Economic sanctions/restrictions among countries are a major problem faced by importers and exporters, hindering international trade.
The major function of a trade association is that it
A trade association, being made up of people in the same line of trade, primarily conducts research and finds information that favours its members.
The sale of foreign investment and gold reserves can be used to
Selling foreign investment and gold reserves is treated like an export; it is one way a country can correct an adverse balance of payments.
Which of the following requires payment into the payee's account?
A crossed cheque can only be paid into the bank account of the named payee (bearer), not cashed directly over the counter.
A written agreement for hiring a ship for transporting goods is a
A charter party is the contract document by which a shipowner agrees to lease (and the charterer agrees to hire) a vessel or cargo space on stated terms.
The abbreviation C&F indicates that
C&F means Cost and Freight - the quoted cost of the goods already includes the cost of delivery/carriage.
The traditional way of paying cooperative dividend is to distribute profit in proportion to members'
Cooperative society profit is traditionally distributed based on members' patronage (volume of purchases), since profit is generated through buying, giving buyers greater claim to it.
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