All 50 questions from the Joint Admissions and Matriculation Board (JAMB) Commerce 2015 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
A lawyer that defrauds his client may be derobed by the Nigerian Bar Association in order to
A. protect other lawyersB. protect the integrity of the associationCorrect C. prevent the client from suing the associationD. compensate the affected clientExplanation This is called protection of trade, which states that any member of a trade body can act on behalf of all members; to protect the integrity of the trade, defaulting members can be dealt with by other members.
The sole legal right held by the author to publish his book is a
A. trademarkB. copyrightCorrect C. bookmarkD. patent rightExplanation Copyright is the exclusive right of a writer to protect his/her intellectual property; it gives the writer the exclusive right to publish the book.
A country said to be experiencing an unfavourable balance of trade if her
A. exports exceeds importsB. sole imports exceed visible exportsCorrect C. visible exports exceed visible importsD. imports and exports are equalExplanation A country experiences an unfavourable balance of trade if her visible imports exceed her visible exports.
The slogan, 'a wonderful world', used by a communication network is a form of
A. packagingB. publicityC. product differentiationD. persuasive advertisingCorrect Explanation Slogans are meant to convince listeners or attract them to buy or use a product — this is persuasive advertising.
A major factor that affects business operations is
A. technologyCorrect B. rivalryC. productD. supplyExplanation Technology is a major factor affecting business operations; as technology changes, consumer taste changes too.
A business partner who provides capital but abstains from participation in the administration of a firm is a
A. general partnerB. nominal partnerC. dormant partnerCorrect D. secret partnerExplanation A dormant (sleeping) partner only contributes capital to the business but does not take part in its day-to-day running.
Money can simply be referred to as a
A. measure of valueB. standard valueC. durable asset for doing businessD. means of settlementCorrect Explanation All the functions of money fall under its core ability to act as a means of settlement of debts and obligations.
The physical components of a computer system is
A. softwareB. hardwareCorrect C. floppy discD. hard discExplanation Hardware refers to the physical, tangible components of a computer system.
Buying, selling and distribution of goods and services are components of
A. retail tradeB. commerceCorrect C. wholesale tradeD. marketingExplanation Buying, selling, and distribution together constitute commerce, which facilitates the exchange of goods and services.
A company has an authorized share capital of ₦15,000. It offered applicants ₦10,000 share capital, out of which the company collected ₦7,500. What is the paid-up capital?
A. ₦5,000B. ₦25,000C. ₦7,500Correct D. ₦1,500Explanation Paid-up capital is the part of the issued share capital that has actually been paid for. Since ₦7,500 was collected, that is the paid-up capital.
A suitable advertising medium for a producer of jeans is
A. informative advertisingB. indirect advertisingC. competitive advertisingCorrect D. direct advertisingExplanation For a producer of jeans, there are many competitors from other jeans producers and substitutes, so the best advertisement is competitive advertising.
The role of customs and excise authority includes the
A. provision of a good transport system to facilitate import and exportB. provision of dockyards for ship repairsC. provision of security at the portD. control of the flow of goods in and out of the countryCorrect Explanation One of the primary functions of the customs authority of any country is to regulate the flow of goods in and out of the country.
The rate of turnover of a firm in a given year is 5 times while the average stock is ₦12,500. What is the turnover of the firm?
A. ₦24,000B. ₦46,000C. ₦65,000D. ₦62,500Correct Explanation Rate of turnover = cost of goods sold (turnover) / average stock. So turnover = 5 × 12,500 = ₦62,500.
Commercial activities in Nigeria have greatly been enhanced due to improvement in
A. transportation systemB. insurance activitiesC. communication networkCorrect D. warehousing activitiesExplanation The communication system is the aspect that has improved most in Nigeria so far, leading to increased commercial activity.
The deterrence between indemnity insurance and non-indemnity insurance is that the latter provides a cover for
A. exporters against riskB. importers against riskC. consolation payment to the insuredCorrect D. full payment to the insuredExplanation Non-indemnity insurance can only earn a person a consolation payment, not full payment, for a loss suffered.
An auxiliary to trade that easily links suppliers with consumers is
A. tourismB. bankingC. transportationD. communicationCorrect Explanation Communication is one of the aids to trade that easily links the supplier and consumer without hitches.
A shop with many stores trading under a single roof which stocks varieties of goods with separate unit heads is a
A. supermarketB. department storeCorrect C. superstoreD. multiple shopExplanation A department store is arranged such that a single shop is divided into many units under different supervision, each unit dealing in a different variety of goods.
One of the services rendered by NITEL is
A. courier serviceB. photo-telegram serviceCorrect C. banking serviceD. business reply serviceExplanation NITEL (Nigerian Telecommunications) rendered services including the photo-telegram service.
The two main forms of communication are
A. oral and writtenB. verbal and non-verbalCorrect C. traditional and modern mediaD. e-mail and faxExplanation Communication can basically be divided into two forms: verbal and non-verbal communication.
The process of transferring data from one computer to another is referred to as
A. downloadingCorrect B. faxingC. decodingD. browsingExplanation Through downloading, many computers can share a single file or document.
When a cheque is crossed, it holds that
A. the culprit is traceable in the event of theftCorrect B. it can be cashed over the counterC. whoever presents it gets paidD. creditors without current accounts can be paidExplanation A crossed cheque allows the creditor to trace the payee in case of theft, because it can only be paid into an account, making a defaulter traceable.
The coming together of consumers to protect their rights is referred to as
A. consumerismCorrect B. consumer sovereigntyC. estoppelD. caveat emptorExplanation Consumerism is the act of consumers combining their efforts to protect their common right to getting value for their money.
The final link in the chain of distribution is the
A. middlemanB. retailingC. wholesalingD. consumerCorrect Explanation The final consumer is the final and last link in the chain of distribution, which always starts with the manufacturer/producer.
The sub-division of a market into homogeneous subsets of consumers with relatively similar product needs is
A. marketing conceptB. market mixC. market segmentationCorrect D. market researchExplanation Market segmentation is the act of dividing a market into separate parts based on the category of consumers.
A contract can be terminated through
A. physical combatB. family interventionC. consultationD. frustrationCorrect Explanation If a party to a contract is frustrated (prevented from discharging their part by a factor beyond their control), such a party can call for termination of the contract.
An organization that issues a cheque to cover the salaries of its employees is using
A. credit transfer system of paymentCorrect B. a standing order of paymentC. an overdraft system of paymentD. bank order of crediting accountExplanation Issuing cheques for salary payments is an example of the credit transfer system of payment, moving funds directly to employees' accounts.
Management of a business involves the development of ideas of the
A. distribution of goods and services that man wantsB. transportation of goods and services that man wantsC. production of goods and services that satisfy man needsCorrect D. transfer of title of ownership of goods and services to individualsExplanation Management involves developing ideas around producing goods and services that satisfy human needs.
A software application which enables a user to display and interact with text and video is the
A. web serverB. web browserCorrect C. file transfer protocolD. internet protocolExplanation A web browser is the software application that enables users to display and interact with web content, including text and video.
Trading position of Nigeria is the same as her
A. desire to trade with many countriesB. terms of tradeC. willingness to grant credit to foreignersD. balance of tradeCorrect Explanation Nigeria's trading position refers to her balance of trade — the difference between the value of her exports and imports.
Gilt-edged securities are issued mainly by
A. individualsB. non-governmental organisationsC. multi-national companiesD. governmentCorrect Explanation Gilt-edged securities are issued mainly by the government, and are considered very low-risk investments.
Which of the following is a quality of money?
A. availabilityB. scarcityCorrect C. convertibilityD. indivisibilityExplanation Money must be relatively scarce to retain its value; scarcity is one of the essential qualities of money (along with divisibility, durability, and portability).
An important factor that influences the location of cement industry in an area is
A. attitude of individualsB. skill and trainingC. political interestD. natural resourcesCorrect Explanation Limestone, the main raw material for making cement, is a natural resource; its availability largely determines where a cement factory is located.
Setting of objectives and determining how they can be accomplished is
A. organizingB. directingC. coordinatingD. planningCorrect Explanation Planning involves setting objectives and determining the means by which they can be accomplished.
The type of labour that makes use of physical effort in production processes is the
A. unskilled labourCorrect B. white collar jobC. skilled labourD. blue-colour jobExplanation Unskilled labour is the type of labour whose output depends mainly on the worker's physical strength/effort, without special training.
Microprocessor is an electronic circuit that functions as the
A. random access memoryB. transmission protocolC. file transfer protocolD. central processing unitCorrect Explanation A microprocessor functions as the central processing unit (CPU) of a computer.
The breaking down of a market into separate and identifiable elements is known as
A. differentiationB. segmentationCorrect C. penetrationD. skimmingExplanation Market segmentation is the breaking down of a market into separate, identifiable elements based on characteristics of consumers.
A country's terms of trade are said to improve when the ratio of her export
A. decreaseB. equals importC. remains constantD. increasesCorrect Explanation A country's terms of trade improve when the ratio of her export prices to import prices increases.
Money is generally acceptable for transaction due to
A. the legal backingB. the rule of lawC. the Central Bank Governor's signatureCorrect D. its acceptability in the global marketExplanation Money (currency notes) is generally acceptable for transactions because of the legal backing represented by the Central Bank Governor's signature.
Which of the following advertising medium appeals to only the literate in the society?
A. radio advertisingB. cinema advertisingC. print advertisingCorrect D. television advertisingExplanation Print advertising appeals only to literate members of society, since it requires the ability to read.
The essential utility derived from the use of products is known as
A. augmented benefitB. branded benefitC. formal benefitD. core benefitCorrect Explanation The core benefit is the essential/fundamental utility a consumer derives from using a product.
The three functional units of a modern computer are
A. black box, output and input unitsB. BASIC, COBOL, and output unitsC. processor, FORTRAN and output unitsD. input, processor and output unitsCorrect Explanation The three basic functional units of a modern computer are the input unit, processing unit, and output unit.
The most suitable organizational structure for small or medium-sized enterprises is
A. line structureCorrect B. staff structureC. functional structureD. committee structureExplanation Line structure is the type of organisation in which a single supervisor or manager oversees almost all the employees; this makes it most suitable for small organisations.
A motor dealer who agreed to sell a car to Mr. X sold and delivered it to Mr. Y on the delivery date agreed with Mr. X. He has discharged the contract by
A. performanceB. frustrationC. breachCorrect D. an agreementExplanation By selling and delivering the car to Mr. Y instead of Mr. X as agreed, the dealer has committed a breach of contract.
International trade is different from internal trade as the former
A. involves people of different tribesB. involves the use of different currenciesCorrect C. is based on the principles of comparative costD. is usually involved in manufactured productsExplanation International trade is based on comparative cost advantage; this is a major difference between international and domestic (internal) trade, since it also involves the use of different currencies.
The main source of pollution in Nigeria is
A. industrial wasteB. domestic wasteC. gas flaringCorrect D. organic wasteExplanation Gas flaring is the most significant source of pollution in Nigeria, especially in the south-south part of the country.
A worker who processes rice is engaged in
A. constructive activityB. commercial activityC. extractive activityD. manufacturing activityCorrect Explanation Rice processing falls under manufacturing activity because it involves the conversion of materials into another form.
In order to increase the capital owned, a sole trader may
A. seek for bank loanB. issue debenturesC. draw less of his profit for personal useCorrect D. acquire extra shop fittings on creditExplanation If a sole trader draws less of the profit, most of the profit will be ploughed back into the business, resulting in an increase in his capital.
Trade Fairs in Nigeria are organized by
A. the Federal GovernmentB. Manufacturers' Association of NigeriaC. chambers of commerceCorrect D. Ministry of Commerce and IndustryExplanation One of the major functions of chambers of commerce is organising trade fairs.
Which of the following is used as a pricing policy?
A. packagingB. market skimmingCorrect C. labelingD. brandingExplanation Market skimming is a pricing approach in which the producer sets a high introductory price to attract buyers with a strong desire for the product, then gradually reduces the price to attract subsequent layers of the market.
In a staff-authority relationship, the opinion of a specialist in one department to another is
A. a directiveB. an adviceCorrect C. a delegationD. a commandExplanation In a staff-structure, employees have different bosses; the opinion of a boss/specialist in another department is counted only as advice, since only one's own boss can compel action.
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