All 40 questions from the Joint Admissions and Matriculation Board (JAMB) Commerce 2022 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
4. A firm can demonstrate social responsibility by
A. (A) paying taxes to government
B. (B) distributing dividends to shareholders
C. (C) paying interest on loans
D. (D) constructing drainage in the communityCorrect
Explanation
Constructing drainage is not the primary responsibility of a private firm; any activity conducted by a private firm outside its core responsibility, for the benefit of the community at large, is termed social responsibility.
9. What is the net profit for a company that earned N18 million and incurred a total cost of N7 million, considering that it paid 45% tax on its gross profit?
11. The following include the reasons government imposes import duties except
A. (A) raising revenue for governmental activities
B. (B) retaliating against other governments
C. (C) discouraging income redistributionCorrect
D. (D) protecting home made goods
Explanation
Imposing import duties enables the government to redistribute income (by taxing imports, generally consumed more by the rich) and spread it to the poor — the opposite of 'discouraging' redistribution.
B. (B) Buy in bulk and sell in small quantitiesCorrect
C. (C) provide credit facilities to retailers
D. (D) Provide information to manufacturers
Explanation
The major function of any wholesaler is buying in large quantities and breaking them down into smaller quantities for retailers, to ensure effective distribution of goods.
18. A silent partnership deed shows that partners share profits
A. (A) in the ratio of the value of business secured by partners for the partnership
B. (B) in the ratio of partners' capital contributions
C. (C) in an equal proportionCorrect
D. (D) according to duties performed by each partner
Explanation
Where a partnership deed is silent (does not specify a profit-sharing arrangement), the default position in law is that partners share profit or loss equally.
19. The Articles of Association of a limited liability company will contain
A. (A) Rights and obligations of directorsCorrect
B. (B) Objectives of the company
C. (C) Amount of share capital
D. (D) Limitation of liability of shareholders
Explanation
The Articles of Association dictate how the internal affairs of the company (such as the rights and duties of directors) will be run, while the memorandum of association covers the company's external affairs.
27. Factoring is not applicable to one of the following
A. (A) importers
B. (B) exporters
C. (C) nationsCorrect
D. (D) shipper
Explanation
Factoring is usually an instrument used in international trade between businesses (importers, exporters, shippers), so it is not applicable to a nation as a whole.
31. Which of the following are aids to trade? I. Trading and advertising II. Warehousing and transportation III. Packaging and branding IV. Insurance and banking
A. (A) I and II
B. (B) I and III
C. (C) II and IV
D. (D) II, III and IVCorrect
Explanation
Aids to trade include banking, insurance, warehousing, transportation, advertising and communication — all of II, III and IV.
37. The business that is more pressed to discharge social responsibility is
A. (A) sole proprietorship
B. (B) professional partnership
C. (C) public enterprise
D. (D) public limited liability companyCorrect
Explanation
A public limited liability company is more pressed to discharge social responsibility than a public enterprise, whose entire existence is already considered a form of social responsibility.