All 50 questions from the National Examinations Council (NECO) Commerce 2024 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
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The development of commerce was promoted by
Transportation promoted the development of commerce by enabling goods to be moved from areas of production to areas of consumption/demand.
A major setback of e-commerce in West Africa is
Poor communication infrastructure hinders the growth and effectiveness of e-commerce in West Africa.
Conversion of raw materials into finished goods is
Secondary production involves converting raw materials into finished or semi-finished goods.
A source of finance peculiar to public companies is
Public companies can raise capital through the sale of shares to the investing public.
An example of an entrepreneur is a
A sole proprietor is a business owner who takes on entrepreneurial risk in establishing and running a business.
A partner who loses his capital only, in case of bankruptcy, is a
A limited partner's liability is restricted to the amount of capital they contributed, so they only lose that capital in bankruptcy.
Ship building is an activity under
Ship building is a manufacturing activity, classified under industrial occupation.
The process of making goods and providing services for consumption is
Production is the process of making goods and providing services for consumption.
A disadvantage of a sole trader is that he
A major disadvantage of sole proprietorship is unlimited liability - the owner is personally liable for all business debts.
An organization formed mainly by traders in the same line of business is a
A trade association is formed by traders in the same line of business to protect and promote their common interests.
Raw materials are classified as
Raw materials are a form of circulating capital as they are consumed and converted in the production process.
A factor that determines the occupation of people living along coastal areas is
People living along coastal areas are often engaged in occupations linked to available natural resources such as fishing.
An exchange of self-service to customers is that it
Self-service encourages impulse buying since customers can freely browse and pick up items themselves.
Calculate average stock.
Average stock = (Opening stock + Closing stock) / 2 = (22,000 + 8,000) / 2 = D15,000.00.
The value of current liabilities is
Current liabilities = Creditors + Overdraft = 8,000 + 5,000 = D13,000.00.
One of the aims of a consumer's association is to advocate for
Consumer associations advocate for good quality products to protect consumer interests.
Prefinancing production is a wholesaler's function to
Wholesalers prefinance production by placing advance orders and making payments to manufacturers before goods are produced.
An adverse balance of payment could be corrected through
Increasing exports helps correct an adverse balance of payment by boosting foreign exchange earnings.
A price of quotation that includes the cost of delivering the goods up to the ship but excludes the cost of loading is
FAS (Free Alongside Ship) covers delivering goods to the ship's side but excludes loading costs.
To inform the buyer that goods are in transit, the seller sends
An advice note informs the buyer that goods are in transit / have been dispatched.
A financial institution established to raise funds for people who wish to build homes is a
A mortgage bank specializes in raising funds and providing loans for people who wish to build or buy homes.
A market where items are sold in lots of description is a
A commodity market is where items are sold in bulk lots according to standard description/grade.
The insurance policy that covers a company against cashiers' dishonesty is
Fidelity guarantee insurance protects an employer against losses arising from the dishonesty of employees such as cashiers.
Which of the following instruments is not a means of payment?
A debit note is a demand for payment, not a means of payment itself.
To correct an overcharge for goods on an invoice, the seller sends the buyer
A credit note is sent to correct an overcharge, reducing the amount the buyer owes.
A market for long-term loans is the
The capital market provides long-term loans and funds for businesses and governments.
The most suitable means of transporting liquid and gas over long distances within a country is by
Pipelines are the most suitable and cost-effective means of transporting liquids and gases over long distances.
A computer's main storage device is the
The hard disk is the computer's main permanent storage device.
The amount an assured receives if he discontinues a life policy is
Surrender value is the amount paid to a policyholder who discontinues a life insurance policy before maturity.
Which of the following means of advertising generates a wider coverage?
Radio reaches a wide audience across a broad geographical area, giving it wider coverage.
A cheque that bears a date later than the current date is a
A post-dated cheque bears a date later than the date of issue.
The holder of a bill who wishes to dispose of it before maturity would be paid the
The holder can discount the bill before maturity, receiving its discounted value.
A medium of advertising that could be used by a hawker to promote sales is
Hawkers commonly use free samples as a direct medium of advertising to promote sales.
Which of the following activities would make continuous production possible?
Warehousing allows for a steady supply of raw materials/goods, making continuous production possible.
An advantage of personal selling is that it
Personal selling allows direct interaction, generating immediate feedback from customers.
The protection of an author's published work is a
Copyright protects the published work of an author.
Under which Act could a buyer of a faulty television set claim for replacement?
The Standard Organization Act sets quality standards and allows claims for replacement of faulty products.
The process of providing cover for goods is
Packaging provides protective cover for goods.
Which of the following retail businesses sells without shop assistants?
Mail order businesses sell goods to customers without the need for shop assistants, using catalogues/postal orders.
The right of an unpaid seller includes the right to
An unpaid seller has the right to sue the debtor for the amount owed.
One of the legislations that protects consumers is the
The Sale of Goods Act protects consumers by regulating the conditions and terms under which goods are sold.
Internal and external factors that affect how a business functions is
The business environment consists of internal and external factors affecting how a business operates.
The management function that provides guidance and supervision to subordinates is
Directing involves guiding and supervising subordinates to achieve organizational goals.
A document issued by the captain of a ship to acknowledge receipt of goods is a
A mate's receipt is issued by the ship's captain/officer to acknowledge receipt of goods on board.
A reason for the privatization of the petroleum industry is to
Privatization aims to encourage private sector participation and investment in the petroleum industry.
A disadvantage of commercialization to consumers is that
Commercialization can lead to increased prices of products for consumers.
One of the social responsibilities of a business to the community is
Controlling pollution is a social responsibility a business owes to the community it operates in.
An objective of the Niger Basin Commission is to
The Niger Basin Commission's objective includes enhancing the development of irrigation systems along the Niger basin.
The act of reducing government intervention in business is
Deregulation is the act of reducing government rules and restrictions on business operations.
Which of the following is not a problem of ECOWAS?
ECOWAS member countries generally do not suffer from meagre resources as a defining common problem; the other options are recognized challenges facing ECOWAS.
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