All 40 questions from the Joint Admissions and Matriculation Board (JAMB) Commerce 2018 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
Advertisement
Factoring is a trade debt term used when the agent buys all the trade debts of the
Factoring is a financial technique where a specialized firm (factor) purchases from clients' accounts receivables that result from the sales of goods/services to customers, typically exporters.
Rights issue means the
A rights issue is the issue that involves selling new shares to existing shareholders, often for free or at a discount, since they are already members of the company.
The direct authority of a superior over his subordinate is known as a
Line authority is the power given to someone in a supervisory position to direct/mandate actions by subordinates.
Consumer sovereignty means that the consumer is a citizen who
Consumer sovereignty means the consumer's decisions are independent of any external influence — they freely determine what is produced through their purchasing choices.
Taking a new product to a particular part of a country to test the reaction of consumers to the product is referred to as
This is market sampling — introducing a product to a target group first to test consumer reaction before a wider launch.
The major objective of corporate mergers is to
The major reason for merging is to enjoy internal economies of scale.
When it becomes necessary to liquidate a company, the first step to be taken is the appointment of a
If it has been concluded to liquidate a firm, the first step is to appoint a liquidator who will oversee winding up the company.
Transportation, retailing and wholesaling industries rely heavily on a
It is when manufacturers produce goods that wholesalers can buy them to be transported to retailers, so these industries rely heavily on manufacturing.
Erroneous real arrangement of financial figure such as writing #624 as #264 is called
Error of transposition is the situation where a person records the wrong amount by writing the digits in the wrong order, e.g. writing 52 instead of 25.
The business organisation in which shareholders have equal voting rights is a
In a cooperative society, all shareholders/members have equal voting rights (one person, one vote), making it a democratic organisation.
Excise duties are paid on goods that are
Excise duties are the tariffs imposed on goods meant for export.
A person who undertakes any risk in insurance business is known as a
An underwriter is any party that evaluates and assumes another party's risk of payment in an insurance transaction.
Bank giro is a system where
A bank Giro transfer is a method of transferring money by instructing a bank to directly transfer funds from one account to another without the use of physical cheques.
One of the criteria for differentiating consumer markets from industrial ones is the
The price of industrial goods is usually a very large amount, making it unreasonable for such goods to be for personal consumption — this is a distinguishing criterion of consumer vs industrial markets.
The main objective of a trade association can best be described as promoting and protecting
A trade association is aimed at protecting the common interest of its members.
When a vendor supplies newspaper from house to house and across the streets, the element of marketing mix involved is
Distributing/supplying goods to where customers can access them relates to 'place' in the marketing mix.
Sudden technological changes can have the effect of making a company's management style ineffective B. a company's product obsolete C. the control mechanism difficult to implement D. the motivational factors in the company difficult to monitor
Rapid change in technology is the main cause of obsolescence in goods, making a company's existing product obsolete.
One of the factors which critically determines the choice of occupation is
The skill of the labour is the major factor that determines the job done by the labourer, hence a key determinant of occupational choice.
Extractive industries may also be denominated as
Extractive industry is also known as primary industry because it deals in extraction and exploration of natural resources.
Services which are of absolute monopoly can best be provided by
If a service is an absolute monopoly, it is better provided by a government-owned public corporation/enterprise, in order not to starve people of essential services.
The share capital value that forms part of the balance sheet total is the
Only the issued capital of a company forms part of the balance sheet balance.
A printer that burns the print image into the photosensitive drum is called a
A laser printer works by burning the print image onto a photosensitive drum before transferring it to paper.
The insurance principle that requires full disclosure of information on the insured is known as
Uberrimae fidei (utmost good faith) is a legal principle in insurance contracts, requiring the highest standard of good faith during disclosure.
On liquidation of a public limited liability company, the residual owners are the
When a public limited liability company liquidates, ordinary shareholders are the last to be compensated, receiving the residual amount after all other debt obligations are fulfilled.
A form of money that has gone out of use is a
Commodity money is money whose value is external to the business itself (e.g. cowries); most commodity monies are no longer in use today.
The three components of staffing are
Staffing as a process in an organisation comprises three basic steps: recruitment, selection and placement.
A chamber of commerce is an association made up of
Chambers of commerce comprise all types of trades — merchants, manufacturers and other business entities.
The first known legislation to protect consumer rights in Nigeria is the
The Sale of Goods Act was enacted in 1893; it is the first law enacted to protect consumers.
A form of ownership which exploits the strength of one partner to remedy the weakness of the other is a
The main reason that usually leads to the formation of a partnership business is the inability of one or two persons to run the business successfully alone, so they combine complementary strengths — a joint venture arrangement.
Which of the following items above constitute internal sources of financing for companies? I. Personal savings II. Retained Earnings III. Accrued Taxes
Personal savings is external to the business (the owner and the business are distinct bodies). Retained earnings and accrued taxes form part of internal sources of finance for a business.
A merchant wholesaler is referred to as a
A merchant wholesaler is a broker because he takes possession of the goods.
A proforma invoice is sent to inform a buyer about the
A proforma invoice is a preliminary bill of sale sent to buyers in advance of a shipment, typically describing the purchased items and their quantity, among other details.
Warehousing is a productive function because it increases the
Production is the creation of utility. Warehousing creates time utility because it stores goods until they are needed, making it a productive function.
The temporary working area of the control processing unit is called the
Random Access Memory (RAM) is a computer's short-term memory, used to handle all active tasks and applications.
One of the obstacles to achieving the objectives of ECOWAS is a
Most ECOWAS countries still keep significant allegiance to their colonial masters, which affects the organisation from achieving its main objectives.
The agency in Nigeria which ensures that products conform to government quality specifications is the
The Standards Organisation of Nigeria (SON) is the government agency responsible for ensuring that goods attain the minimum quality standard.
A group of companies which is a collection of subsidiaries and their holding company is called
A group of companies form an industry — a collection of subsidiaries, associate companies and their holding company.
Communication process involves the transmission of a message over a selected channel to the
Communication involves sending a message by the sender through a particular channel to the receiver.
The programme that makes up the operating system in a computer is a
System software is the program that ensures a computer system can function.
Given: Sales #15,000, Opening stock #5,600, Purchases #9,700, Closing stock #4,400, Gross profit #4,500, Net profit #2,000. Calculate the rate of turnover
Cost of goods sold = Opening stock + Purchases − Closing stock = 5,600+9,700−4,400 = 10,900. Average stock = (5,600+4,400)/2 = 5,000. Rate of turnover = 10,900/5,000 = 2.18 times.
Advertisement
…and/or go further with premium services and No Ads.