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. helping people to improve their profits
B. enhancing business relationships
C. facilitating exchange among individuals and firms D. assisting trade through banking and insuranceCorrect
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. commercialization
B. manufacturing
C. productionCorrect
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. capital account, trade account and business record
B. current account, capital account and monetary movement accountCorrect
C. sales account, profit and loss account and capital account
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 exchangeCorrect
B. bill of lading
C. documentary evidence
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 receiptCorrect
B. freight note
C. export invoice
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. FrancoCorrect
B. Free Alongside Ship
C. Free On-Board
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. televisionCorrect
B. billboard
C. newspaper
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.
The agreement of insurers to Spread risks among themselves is a major feature of
A. life assurance
B. reinsuranceCorrect
C. underwriter
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.
One of the major disadvantages of pipeline transportation is its
A. limitation in scopeCorrect
B. high cost of construction
C. vulnerability to climatic changes
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 proprietorshipCorrect
C. public limited liability company
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.
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 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.
A communication process providing information for decision-making in an organization is the
A. Transmission Control Protocol
B. Management information SystemCorrect
C. Information Retrieval System
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 wideCorrect
B. morale of the supervised is high
C. span of control is narrow
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.
To make a simple contract valid, the intention must be
A. legal and bindingCorrect
B. legal and written
C. legal and attractive
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.
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.
[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. Aids to tradeCorrect
B. Publicity
C. Home trade
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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