All 40 questions from the Joint Admissions and Matriculation Board (JAMB) Commerce 2025 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
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A balance sheet shows:
A balance sheet is a financial statement presenting the assets and liabilities of a business as at a specific date.
Human wants are:
In economics, human wants are considered unlimited while resources to satisfy them are limited (scarcity).
Which is a function of commercial banks?
Commercial banks accept deposits from customers and offer loans; issuing currency, levying taxes and enforcing law are government/central bank functions.
A distinguishing characteristic of a limited liability company is that it:
A limited liability company is an artificial legal person that can sue and be sued in its own name, separate from its owners.
A bill of exchange includes:
A bill of exchange is a written order to pay, and depending on context can be viewed as encompassing a request/promise to pay a stated sum.
Which bill is drawn and accepted in the same country?
An inland bill is drawn and accepted within the same country/geographical location.
Who draws a bill of exchange?
The drawer is the person who draws (writes) the bill of exchange, usually someone with a claim/international reputation who initiates the instrument.
Which of the following is owned by a single person?
A sole proprietorship is a business owned and run by one individual.
Partnership business can be started by:
A partnership requires a minimum of two persons coming together to run a business jointly.
A company is formed by:
Promoters are the persons who conceive the idea of forming a company and take the necessary steps to bring it into existence.
The word 'limited' should appear after the name of a:
When a company is registered with the relevant authority (e.g. Corporate Affairs Commission in Nigeria), it becomes a limited company and must use 'Limited' in its name.
Deferred shares are generally issued to:
Deferred shares are issued to the promoters of a company, who can typically only exit/cash out later at their discretion.
The members of a Co-operative Society have:
Members of a co-operative society, like a public limited company, generally have limited liability.
The principle followed in a co-operative society is:
Co-operative societies are democratic in nature, following the 'one man, one vote' principle regardless of shares held.
To start a sole proprietorship business, what should be the minimum number of partners?
A sole proprietorship needs only one person to start it.
What type of agreement is used to form a partnership business?
A partnership business can be started with either a written or an oral agreement between the partners.
In partnership, partners' liabilities are:
The liability of partners in an ordinary partnership is unlimited, except where the business is registered as a limited liability partnership.
Debenture holders are:
Debenture holders lend money to a company and are therefore its creditors, not owners.
Debentures indicate the:
A debenture is a long-term loan instrument on which the company pays interest periodically.
Which of the following is not an economic activity?
Social service is non-economic because it is not intended to bring about profit, unlike production, professional work or trading.
Which option is not a business activity?
Working in a factory for wages is employment, not a business activity, since it does not involve buying and selling for profit on one's own account.
Which of the following is the characteristic of a business?
Business activities involve producing goods/services, exchanging or selling items of economic value, and inherently carry an element of risk.
Oil refinery and sugar mill are classified under which industries?
Oil refining and sugar milling convert raw materials into finished goods, which is classified as secondary (manufacturing) industry.
Identify the activity which does not support trade:
Mining is an extractive activity, not an aid to trade; banking, warehousing and insurance all support and facilitate trade.
This P is not a part of the 7Ps of marketing mix:
'Purpose' is not one of the 7Ps of the marketing mix (which include Product, Price, Place, Promotion, People, Process, Physical evidence).
Marketing of a product and service in which the offer itself is not intended to make any monetary profit is called:
Non-profit marketing refers to marketing efforts where the goal is not financial profit but some other social or organizational objective.
A reduction in price on purchase during a stated period of time is known as:
A discount is a deduction given from the price of a good under specific conditions, such as a stated purchase period.
Liberalization means:
Liberalization simply means making trade, industry and the economy more simple and easier by removing unnecessary restrictions.
When a company takes over another one and clearly becomes the new owner, the action is called:
When a company takes over another and becomes its new owner, this is referred to as an acquisition.
Which among the following is not opened for private sector participation in Nigeria as at today?
All the mentioned sectors have private sector participation today except the railways sector.
Which among these can be the condition for the success of privatisation?
Through privatization, the barrier to entry is eliminated for the private business, which is a condition that supports its success.
Which among these is a monopolistic trade practice?
Unreasonably limiting competition is a monopolistic trade practice; simply making or selling one product is not.
Globalisation is the term used to describe process of removal of restriction on:
Globalization brings about the removal/limiting of restrictions on both investment and foreign trade.
Credit can be created by:
Most credit is created by commercial banks because they are the major banks that accept deposits and give out credit in the form of loans.
Repo Rate means?
Repo rate, also known as repurchase rate, is the rate at which banks expect to resell securities bought from the CBN.
Which of the following rules do not apply to commercial banks?
The CBN Act applies only to the CBN itself; commercial banks in Nigeria are bound by companies act and banking regulation acts.
Increase in cash reserve ratio (CRR) by the CBN will result in:
When the CBN increases the CRR, commercial banks will not have enough cash to give out as loans, which reduces their ability to create credit, decreasing the money supply.
The money market where debt and stocks are traded and maturity period is more than a year is known as:
The capital market is the market for trading long-term financial instruments with a maturity period of more than one year.
The regulatory body for the securities market in Nigeria is:
The Securities and Exchange Commission (SEC) is the body responsible for regulating activities in the securities market in Nigeria.
Transportation is part of:
Transportation is classified as an aid to trade, since it facilitates the movement of goods and makes trading activities easier.
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