Free account: track your progress — Sign up free

JAMB Commerce 2009 Objective Past Questions

All 50 questions from the Joint Admissions and Matriculation Board (JAMB) Commerce 2009 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.

Advertisement

Commerce 2009 Objective — Question 1

1. The central focus of commercial activities is

  • A. pricing
  • B. advertising
  • C. tradingCorrect
  • D. marketing

Explanation

Trading is the act of buying and selling, which is the foundation of commercial activities.

Commerce 2009 Objective — Question 2

2. An aid to trade associated with communications is

  • A. banking
  • B. transportationCorrect
  • C. warehousing
  • D. insurance

Explanation

Transportation and communication serve almost the same purpose, but communication makes transportation a lot easier.

Commerce 2009 Objective — Question 3

3. The services of a textile worker are an example of

  • A. extractive activity
  • B. commercial activity
  • C. manufacturing activityCorrect
  • D. construction

Explanation

A textile worker is in the manufacturing industry, converting raw materials into a more useful form.

Commerce 2009 Objective — Question 4

4. Resources harnessed in certain proportion to create goods and services are

  • A. factors of productionCorrect
  • B. technology and labour
  • C. land and entrepreneur
  • D. raw materials

Explanation

Factors of production are the resources required to ensure production takes place.

Commerce 2009 Objective — Question 5

5. Primary production is associated with

  • A. banking
  • B. manufacturing
  • C. agricultureCorrect
  • D. construction

Explanation

The agricultural sector is in the primary sector as it uses basic tools to explore natural resources from their sources.

Commerce 2009 Objective — Question 6

6. The major components of modern retailing include

  • A. branding, doorstep selling and customer stimulationCorrect
  • B. Branding, Sales promotion and mail order
  • C. chain stores, customer stimulation and doorstep selling
  • D. branding, supermarkets and after-sales service

Explanation

Modern retailing is more about branding, supplying customers at convenient places, and stimulating them to buy.

Commerce 2009 Objective — Question 7

7. A chain store usually combines the features of

  • A. multiple shops and departmental stores
  • B. hypermarkets and stalls
  • C. multiple shops and hypermarketsCorrect
  • D. mail order business and multiple shops

Explanation

A chain store/retail chain shares a brand, central management and standardized business practices across multiple shops and hypermarkets.

Commerce 2009 Objective — Question 8

8. One of the functions of the wholesaler is to

  • A. forecast prices of goods
  • B. reduce prices of goods
  • C. promote sales
  • D. analyse sales periodicallyCorrect

Explanation

A wholesaler analyses sales periodically to ensure consistent availability of goods and informs the producer when to produce more or less.

Commerce 2009 Objective — Question 9

9. An artificial barrier to international trade is

  • A. political unrest
  • B. culture of the people
  • C. unit of measurement
  • D. custom dutiesCorrect

Explanation

Artificial barriers are man-made barriers to discourage foreign trade; custom duties are an artificial barrier.

Commerce 2009 Objective — Question 10

10. The most commonly used commercial documents are

  • A. order notes, debit notes, invoices and quotationsCorrect
  • B. letters or enquiry, consignment notes, receipts and invoices
  • C. credit notes, order and bills
  • D. balance sheet, receipts, invoices and manifests

Explanation

Order notes, debit notes, invoices and quotations are among the most commonly used commercial documents.

Commerce 2009 Objective — Question 11

11. The term 'free on board' means that

  • A. the price includes costs and insurance only
  • B. the price includes costs and freight only
  • C. the price includes freight and insurance only
  • D. the buyer is responsible for freight and insuranceCorrect

Explanation

Free On Board means the buyer is responsible for the associated risk/cost on the sea, including insurance and freight, once goods are loaded.

Commerce 2009 Objective — Question 12

12. If a buyer is given 12.5% discount on 50,000 worth of goods, how much will he pay?

  • A. 56250
  • B. 43750Correct
  • C. 43250
  • D. 6250

Explanation

Amount to be paid = 87.5% x 50,000 = N43,750.

Commerce 2009 Objective — Question 13

13. A cheque which a bank draws on its own funds is a

  • A. bank draftCorrect
  • B. cashier's cheque
  • C. bank cheque
  • D. crossed cheque

Explanation

A bank draft is a cheque a bank draws on itself in the name of the beneficiary.

Commerce 2009 Objective — Question 14

14. Billboards and posters are forms of

  • A. electronic media
  • B. print media
  • C. outdoor mediaCorrect
  • D. window display media

Explanation

Billboards and posters are handy, seen and touched by the people, and are classified as outdoor media.

Commerce 2009 Objective — Question 15

15. A collective term for advertising, personal selling and publicity is

  • A. promotionCorrect
  • B. merchandizing
  • C. trade fair
  • D. promotion

Explanation

Advertising, publicity and personal selling all aim at promoting sales of a product, so they are referred to as sales promotion.

Commerce 2009 Objective — Question 16

16. The central bank differs from commercial banks because it

  • A. renders service to customers
  • B. carries out foreign exchange transactions
  • C. issues currenciesCorrect
  • D. discounts bills

Explanation

The central bank is the apex bank in charge of issuing currencies in the country.

Commerce 2009 Objective — Question 17

17. One of the facilities enjoyed by a current account holder is

  • A. a dividend
  • B. a bonus
  • C. an overdraftCorrect
  • D. interest on deposits

Explanation

A current account holder can withdraw above his/her credit balance up to a certain amount as stipulated by the bank (overdraft).

Commerce 2009 Objective — Question 18

18. In which of the following will the number of words used determine the cost of the message sent?

  • A. Telephone
  • B. TelegramCorrect
  • C. E-mail
  • D. Telex

Explanation

In telegram, the number of words used determines the cost of the message sent.

Commerce 2009 Objective — Question 19

19. The transmission of telephone services from one country to another is facilitated by

  • A. a communication satellite
  • B. international facility
  • C. InterconnectivityCorrect
  • D. internet service

Explanation

Interconnectivity is the enhancer of telephone services both locally and internationally.

Commerce 2009 Objective — Question 20

20. The principle of insurance which entitles an insurance company to take any advantage due to the insured after full indemnity is

  • A. contribution
  • B. subrogationCorrect
  • C. proximate cause
  • D. utmost good faith

Explanation

The principle of subrogation states that the insurer has the right to take over any right or remains of an item that has been fully indemnified to the insured.

Commerce 2009 Objective — Question 21

21. A risk that can be estimated and calculated to be compensated is

  • A. a delivery risk
  • B. an insurable riskCorrect
  • C. a credit risk
  • D. a speculative risk

Explanation

Risks can be insurable and non-insurable. Insurable risks (e.g. motor accident, fire risk) can be estimated and calculated.

Commerce 2009 Objective — Question 22

22. The most important reason for the existence of insurance business is to

  • A. prevent the occurrence of any loss
  • B. spread losses to all covered participantsCorrect
  • C. provide for the replacement of facilities
  • D. encourage individuals to save

Explanation

The essence of an insurance policy is to spread risk among people of similar situation.

Commerce 2009 Objective — Question 23

23. One major advantage of transportation to a business is to

  • A. extend the firm's market coverageCorrect
  • B. ensure goods are produced faster
  • C. procure raw materials cheaply
  • D. ensure quality of products

Explanation

Transportation helps a firm to expand its market since it can produce in one location and deliver goods elsewhere.

Commerce 2009 Objective — Question 24

24. Warehousing is important to manufacturers because it helps to

  • A. improve the quality of goods
  • B. produce goods in advance
  • C. meet the demand of customersCorrect
  • D. determine input requirements

Explanation

Through warehousing, the manufacturer can continue production and still be able to meet demand as customers make orders.

Commerce 2009 Objective — Question 25

25. One major problem of a sole proprietor is sourcing for

  • A. raw materials
  • B. labour
  • C. machineries
  • D. fundCorrect

Explanation

The major problem of a sole proprietor is sourcing for funds to facilitate his business.

Commerce 2009 Objective — Question 26

26. In a public limited liability company, planning is carried out by

  • A. the chairman of the board
  • B. the board of directorsCorrect
  • C. shareholders
  • D. employees

Explanation

The board of directors is charged with the responsibility of achieving business objectives; thus, they make the plans.

Commerce 2009 Objective — Question 27

27. Partnerships are most effective where

  • A. the partners are family friends
  • B. professionals are involvedCorrect
  • C. members can easily raise enough capital
  • D. government regulations are favourable

Explanation

A professional partnership is more effective because the business will be run based on laid down principles of the profession.

Commerce 2009 Objective — Question 28

28. The type of partnership in which all partners are jointly liable in bearing risks is a

  • A. limited partnership
  • B. partnership at-will
  • C. ordinary partnershipCorrect
  • D. industrial partnership

Explanation

In an ordinary partnership, all members of the partnership business are jointly responsible for the liability of the business.

Commerce 2009 Objective — Question 29

29. The financial instrument that entitles the holder to receive dividend and capital gains is a

  • A. shareCorrect
  • B. bond
  • C. bill of exchange
  • D. treasury bill

Explanation

Share is the unit of ownership in a limited liability company; the holder receives dividends and can also take part in capital gains.

Commerce 2009 Objective — Question 30

30. The circulating capital of a business enterprise is classified into

  • A. cash, work-in-progress and debtorsCorrect
  • B. cash, work-in-progress and debtors
  • C. cash, vehicles, land and buildings
  • D. debtors, stocks of raw materials and fittings

Explanation

Circulating capital is the money used in running the day-to-day business of the organisation; it is majorly the current assets.

Commerce 2009 Objective — Question 31

31. Ojo's Balance Sheet as at 31st December, 2006 (given). Determine the value of Ojo's fixed assets.

  • A. N14,450
  • B. N13,450Correct
  • C. N13,005
  • D. N12,005

Explanation

Fixed assets = land and building + fittings + motor vans = 12,000 + 850 + 1,600 = N14,450.

Commerce 2009 Objective — Question 32

32. What is Ojo's working capital?

  • A. N2,150
  • B. N1,950
  • C. N1,800
  • D. N1,150Correct

Explanation

Working capital = current assets - current liabilities = (2,150 + 700 + 100) - 1,800 = 2,950 - 1,800 = N1,150.

Commerce 2009 Objective — Question 33

33. If a firm has a turnover of 50,000 and the cost of goods sold is 40,000, what is the percentage of gross profit on sale?

  • A. 30.5%
  • B. 20.5%
  • C. 20.0%Correct
  • D. 10.0%

Explanation

Gross profit = sales - cost of goods sold = 50,000 - 40,000 = 10,000. Percentage = (10,000/50,000) x 100 = 20.0%.

Commerce 2009 Objective — Question 34

34. A body established to protect the interest of members against exploitation of retail traders and manufacturers is the

  • A. wholesaler's association
  • B. consumers' associationCorrect
  • C. government agency
  • D. workers' union

Explanation

The consumers' association is established to protect the interest of customers against exploitation by sellers.

Commerce 2009 Objective — Question 35

35. The manufacturers' Association of Nigeria is an example of a

  • A. Labour Union
  • B. Pressure groupCorrect
  • C. conglomerate
  • D. cartel

Explanation

The Manufacturers' Association of Nigeria (MAN) is an example of a pressure group.

Commerce 2009 Objective — Question 36

36. The characteristic which ensures that money is free from forgery is its

  • A. legalityCorrect
  • B. durability
  • C. recognition
  • D. credibility

Explanation

One of the distinctive features of money is that it should be difficult to forge; this is its legality/security feature.

Commerce 2009 Objective — Question 37

37. The major dealers on the stock market are the

  • A. agents
  • B. jobbers
  • C. investors
  • D. brokersCorrect

Explanation

Brokers are the major dealers in the stock exchange; they act as the market's link between buyers and sellers.

Commerce 2009 Objective — Question 38

38. The daily official publications of the Nigerian Stock Exchange give detailed information on the

  • A. changes in official rules set by the market
  • B. method of transactions agreed upon by members
  • C. participation of members in a day
  • D. changes in the price of securitiesCorrect

Explanation

The daily publication gives details about opening and closing prices of securities, highest gainers and losers for the day.

Commerce 2009 Objective — Question 39

39. The function which ensures that set objectives are attained by an organization is

  • A. planning
  • B. directing
  • C. staffing
  • D. controllingCorrect

Explanation

Controlling is the function that ensures the set objectives can be monitored and necessary amendments made to achieve them.

Commerce 2009 Objective — Question 40

40. An organizational structure that is military in nature is the

  • A. line structureCorrect
  • B. staff structure
  • C. line and staff structure
  • D. functional structure

Explanation

In a line structure, there is one main controller, similar to a military organisation.

Commerce 2009 Objective — Question 41

41. The efficiency of an organization is enhanced by

  • A. government assistance
  • B. the host community
  • C. customer support
  • D. skilled manpowerCorrect

Explanation

The type of manpower available will determine the efficiency of an organisation.

Commerce 2009 Objective — Question 42

42. The concept which focuses on consumers in decision-making is the

  • A. selling concept
  • B. marketing conceptCorrect
  • C. product concept
  • D. production concept

Explanation

The main concern of the marketing concept is to identify consumers' needs and devise means of satisfying them.

Commerce 2009 Objective — Question 43

43. Market skimming is an example of a

  • A. market penetration
  • B. sales promotion
  • C. pricing policyCorrect
  • D. advertising

Explanation

Market skimming is a pricing approach in which the producer sets a high introductory price, then gradually reduces it.

Commerce 2009 Objective — Question 44

44. The most important attributes in a sale of goods contract are

  • A. offer and consideration
  • B. price and goods
  • C. offer and acceptanceCorrect
  • D. demand and supply

Explanation

The main terms in a contract are offer and acceptance; these two terms make the contract binding on each party.

Commerce 2009 Objective — Question 45

45. Unresolved disputes between the employer and employees are usually referred to the

  • A. code of conduct bureau
  • B. personnel unit
  • C. disciplinary committee
  • D. industrial arbitration tribunalCorrect

Explanation

Any unresolved issue between an employer and employee can be adjudicated at the industrial arbitration tribunal.

Commerce 2009 Objective — Question 46

46. The process of eliminating a virus from a computer program is

  • A. programming
  • B. debuggingCorrect
  • C. formatting
  • D. looping

Explanation

Debugging is the process of detecting and removing existing and potential errors ('bugs') in software code.

Commerce 2009 Objective — Question 47

47. The primary memory component of a computer is the

  • A. cacheCorrect
  • B. console
  • C. assemblers
  • D. compilers

Explanation

Cache is the temporary memory which allows flow of data in a computer system.

Commerce 2009 Objective — Question 48

48. A customer with XYZ Plc sent money through his account to his sister's account in another branch. This is an example of

  • A. e-business
  • B. e-commerce
  • C. e-finance
  • D. e-bankingCorrect

Explanation

e-banking (electronic banking) is a form of banking in which funds are transferred through electronic signals rather than cash or paper documents.

Commerce 2009 Objective — Question 49

49. The economic environment of a business is concerned with

  • A. climatic conditions
  • B. changing values
  • C. the growth rate
  • D. the interest rateCorrect

Explanation

The economic environment deals with economic growth and factors such as the interest rate in which a business operates.

Commerce 2009 Objective — Question 50

50. A firm that disposes its waste properly is discharging its

  • A. waste responsibility
  • B. environmental responsibility
  • C. civic responsibility
  • D. social responsibilityCorrect

Explanation

Social responsibility means businesses act in a manner that benefits society in addition to maximizing shareholder value; proper waste disposal is social responsibility.

Advertisement

Sign up free to unlock

  • Score tracking
  • Practice history
  • Saved questions
  • Progress dashboard
  • Personalized sessions
  • Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account
More Commerce past papersMore Joint Admissions and Matriculation Board subjects