All 49 questions from the Joint Admissions and Matriculation Board (JAMB) Commerce 2011 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
The most important function of commerce is in A. helping people to improve their profits B. enhancing business relationships C. facilitating exchange among individuals and firms D. assisting trade through banking and insurance
A. A. helping people to improve their profits
B. B. enhancing business relationships
C. C. facilitating exchange among individuals and firms D. assisting trade through banking and insuranceCorrect
D. D. assisting trade through banking and insurance
Explanation
Commerce facilitates exchange of goods and services among individuals and firms.
Farming falls under primary sector, banking falls under tertiary sector, while trading falls under secondary sector. These are the three main classifications of occupation: industry, commerce and services.
The creation of goods and services to satisfy human wants is referred to as
A. A. commercialization
B. B. manufacturing
C. C. productionCorrect
D. D. entrepreneurship
Explanation
Production can be defined as all activities which involve conversion of raw materials to finished goods in order to satisfy human wants. It is also defined as creation of utility.
The three components of a country's balance of payment are
A. A. capital account, trade account and business record
B. B. current account, capital account and monetary movement accountCorrect
C. C. sales account, profit and loss account and capital account
D. D. monetary movement account, trade account and sales ledger
Explanation
The balance of payment can be divided into capital account (records capital goods flow), current account (records consumer goods flow), and monetary movement account (records changes in money values and investments).
A document that indicates obligation that is transferable by delivery and endorsement is A. a bill of exchange B. bill of lading C. documentary evidence D. negotiable instrument
A. A. a bill of exchangeCorrect
B. B. bill of lading
C. C. documentary evidence
D. D. negotiable instrument
Explanation
Bill of exchange is the document/written order to a person requiring them to make a specified payment to the signatory or to a named payee; it is a type of promissory note.
The document which can be exchanged for a bill lading is A. a mate receipt B. freight note C. export invoice D. ship
A. A. a mate receiptCorrect
B. B. freight note
C. C. export invoice
D. D. ship
Explanation
Mate's receipt is a receipt issued by the Commanding Officer of the ship when the cargo is loaded on the ship. It is a prima facie evidence that goods are loaded in the vessel.
The price quoted which includes the cost of insurance, freight and all delivery charges to the importer's warehouse is A. Franco B. Free Alongside Ship C. Free On-Board D. Free on Rail
A. A. FrancoCorrect
B. B. Free Alongside Ship
C. C. Free On-Board
D. D. Free on Rail
Explanation
Franco means free from all expenses. Under this price, all the possible expenses in transit are to be borne by the seller, and the seller has to supply goods to the factory of the buyer.
The most effective but limited medium of advertising in Nigeria is A. television B. billboard C. newspaper D. radio
A. A. televisionCorrect
B. B. billboard
C. C. newspaper
D. D. radio
Explanation
Television is the most effective because a bulk of Nigerians are illiterate, but it is limited in usage because there is no television network in the bulk of villages in the country.
A cheque that has been drawn but not presented for payment can still be honoured A. after 9 months B. within 6 months C. within 3 months D. after 6 months
A. A. after 9 months
B. B. within 6 monthsCorrect
C. C. within 3 months
D. D. after 6 months
Explanation
Usually, cheques last for six (6) months in Nigeria before it can become bounced.
Mr. Lawal insured his warehouse against burglary but it was later gutted by fire. This implies that A. Mr. Law is liable only for half of the estimated loss B. The loss should be borne by the insurer C. The insurer should make a consolation payment for the loss D. the loss should be borne by Mr. Lawal
A. A. Mr. Law is liable only for half of the estimated loss
B. B. The loss should be borne by the insurer
C. C. The insurer should make a consolation payment for the loss
D. D. the loss should be borne by Mr. LawalCorrect
Explanation
Mr. Lawal will bear the whole loss because he does not insure the building against fire but only insured against burglary.
The agreement of insurers to Spread risks among themselves is a major feature of A. life assurance B. reinsurance C. underwriter D. marine insurance
A. A. life assurance
B. B. reinsuranceCorrect
C. C. underwriter
D. D. marine insurance
Explanation
In marine insurance, the amount involved is usually so much that it is difficult for only one insurance company to compensate at the time of events. Thus, many insurance companies come together to share the loss in the case of events - this is reinsurance.
Inbound tourism occurs when A. residents of a country travel to other countries B. non-residents of a country travel to other countries C. non-residents of a country travel within it D. residents of a country travel within it
A. A. residents of a country travel to other countries
B. B. non-residents of a country travel to other countries
C. C. non-residents of a country travel within itCorrect
D. D. residents of a country travel within it
Explanation
Inbound tourism is the act of someone travelling to a country other than that of where they live, for the purpose of tourism.
One of the major disadvantages of pipeline transportation is its A. limitation in scope B. high cost of construction C. vulnerability to climatic changes D. high maintenance cost
A. A. limitation in scopeCorrect
B. B. high cost of construction
C. C. vulnerability to climatic changes
D. D. high maintenance cost
Explanation
Pipeline transportation can only transport liquid items. Thus, it is limited in scope compared with other means of transportation which can be used for all types of goods.
The business organization that can effectively combine management with control is A. private limited liability company B. sole proprietorship C. public limited liability company D. co-operative society
A. A. private limited liability company
B. B. sole proprietorshipCorrect
C. C. public limited liability company
D. D. co-operative society
Explanation
For a sole proprietor, he manages and controls his business as against other forms of business ownership in which the controllers are in form of board of directors and separate managers that manage the affairs of the business.
When two or more companies agree to execute a project too large for one to handle, this is referred to as A. a cartel B. an amalgamation C. a merger D. a consortium
A. A. a cartel
B. B. an amalgamation
C. C. a merger
D. D. a consortiumCorrect
Explanation
A consortium is a group made up of two or more individuals, companies, or governments that work together to achieve a common objective.
A broker is an agent who links a potential investor with A. other Members of the exchange who wants to trade B. a share-holder who wants to register a company C. government official on the exchange D. a quoted company
A. A. other Members of the exchange who wants to trade
B. B. a share-holder who wants to register a company
C. C. government official on the exchange
D. D. a quoted companyCorrect
Explanation
A broker in stock exchange market is the registered body or person who creates a link between a potential investor and quoted company in the stock market.
Second-Tier Securities Market differs from the First-Tier Securities market in that the former is A. regulated by the SEC B. highly restricted C. regulated by the NIPC D. less restricted
A. A. regulated by the SEC
B. B. highly restricted
C. C. regulated by the NIPC
D. D. less restrictedCorrect
Explanation
The second-tier security market is less restricted compared with the first-tier security market.
A communication process providing information for decision-making in an organization is the A. Transmission Control Protocol B. Management information System C. Information Retrieval System D. File Transfer Protocol
A. A. Transmission Control Protocol
B. B. Management information SystemCorrect
C. C. Information Retrieval System
D. D. File Transfer Protocol
Explanation
Management information system (MIS) is the communication process which aids the management of an organisation to make decisions based on the available information.
The management ability of a supervisor in an organization may be under-utilized if the A. span of control is wide B. morale of the supervised is high C. span of control is narrow D. morale of the supervised is low
A. A. span of control is wideCorrect
B. B. morale of the supervised is high
C. C. span of control is narrow
D. D. morale of the supervised is low
Explanation
If the span of control is wide, it means there will be too many people under the supervisor. That can result in under-utilisation of the supervisor's skill.
The arrangement and interrelationship of the various components and positions of a business is referred to as A. clarity of objective B. organizational structure C. unity of direction D. line structure
A. A. clarity of objective
B. B. organizational structureCorrect
C. C. unity of direction
D. D. line structure
Explanation
The organizational structure determines how information flows between levels within the company.
The slogan, 'a wonderful world', used by communication network is a form of A. persuasive adverting B. product differentiation C. publicity D. packaging
A. A. persuasive advertingCorrect
B. B. product differentiation
C. C. publicity
D. D. packaging
Explanation
Slogans are meant to convince listeners or attract them to buy or use a product - a form of persuasive advertising.
To make a simple contract valid, the intention must be A. legal and binding B. legal and written C. legal and attractive D. legal and harmonious
A. A. legal and bindingCorrect
B. B. legal and written
C. C. legal and attractive
D. D. legal and harmonious
Explanation
A simple contract needs not be in writing. The necessary requirement is that the intention must be legally enforceable and also binding on the person entering the contract.
The major parties to an agency relationship are the A. bailee and bailor B. principal and the creditor C. principal and the agent D. shareholder and creditor
A. A. bailee and bailor
B. B. principal and the creditor
C. C. principal and the agentCorrect
D. D. shareholder and creditor
Explanation
The agent and his principal are the major party in an agency relationship.
One of the obligations of an employer to an employee is to A. award scholarship to his children B. indemnify him against liabilities incurred on duty C. terminate his appointment without prior notice D. indemnify him against injuries caused through negligence
A. A. award scholarship to his children
B. B. indemnify him against liabilities incurred on dutyCorrect
C. C. terminate his appointment without prior notice
D. D. indemnify him against injuries caused through negligence
Explanation
If an employee incurs any loss in the cause of discharging his normal duty, the employer has a binding duty to compensate him for it.
An example of a computer operating system is A. the World Perfect B. the Page maker C. Microsoft World 2000 D. Windows 2000
A. A. the World Perfect
B. B. the Page maker
C. C. Microsoft World 2000
D. D. Windows 2000Correct
Explanation
Operating system is the software that gives the computer life. Without it, the computer cannot be useful. Examples include Windows 2007, Windows 2010, Windows Vista etc. Windows 2000 is an example.
Intranet differs from extranet in that the former A. can generally be accessed by the public B. requires a modem before it could be used C. is restricted to employees of an organization D. requires internet protocols
A. A. can generally be accessed by the public
B. B. requires a modem before it could be used
C. C. is restricted to employees of an organizationCorrect
D. D. requires internet protocols
Explanation
Intranet is restricted for use within an organisation while extranet can be used outside the organisation.
A software application which enables a user to display and interact with texts, images and videos is the A. internet protocol B. web server C. CorelDraw D. web browser
A. A. internet protocol
B. B. web server
C. C. CorelDraw
D. D. web browserCorrect
Explanation
A web browser is a software application which enables a user to display and interact with texts, images and videos.
The symbol @ in an internet mail address is used to A. link the user with other internet users B. separate the user name from the machine name C. locate the addresses of the internet users D. link the user with the machine
A. A. link the user with other internet users
B. B. separate the user name from the machine nameCorrect
C. C. locate the addresses of the internet users
D. D. link the user with the machine
Explanation
The symbol @ is used to link username to the machine name such as yahoo, hotmail etc. - separating the user name from the machine/domain name.
A business organization is said to be socially responsible when it A. rewards its staff for long-term services B. get involved in issues relating to the society C. offers discounts to customers D. invites the public to its annual general meetings
A. A. rewards its staff for long-term services
B. B. get involved in issues relating to the societyCorrect
C. C. offers discounts to customers
D. D. invites the public to its annual general meetings
Explanation
Social responsibility on the part of an organisation is a way of paying back to the society/community in which an organisation operates.
[Diagram: 'Commerce' branching into 'Trade' and item I; Trade branches into item II and 'Foreign'; item II branches into 'Retail' and 'Wholesale'; 'Foreign' branches into 'Export' and 'Import'] From the diagram above, what does I stand for?
A. A. Aids to tradeCorrect
B. B. Publicity
C. C. Home trade
D. D. Advertising trade
Explanation
From the classification diagram, Commerce is divided into Trade and Aids to Trade (I); Trade is further divided into Home Trade (II) and Foreign Trade, with Home Trade comprising Retail and Wholesale, and Foreign Trade comprising Export and Import.
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