All 50 questions from the West African Examinations Council (WAEC) Commerce 2012 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
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The development of trade in West Africa was aided by the
The Portuguese are the first people to have contact with African countries for trading, particularly in Lagos.
An issuing house is an outlet for
Issuing houses are institutions which handle issuance of new securities.
Which of the following is quoted when the buyer is responsible for the cost of loading the goods from the seller's warehouse up to his own warehouse?
FAS means 'Free Alongside Ship'. This means that the seller has fulfilled his obligation of delivering the goods to his own warehouse. It is now left for the buyer to bear the cost of transporting the goods from the seller's warehouse to his own warehouse.
The relationship between all imports and exports of a country is known as
Balance of trade is defined as the difference in value between a country's imports and exports.
Which of the following is an example of large-scale retailing?
Department store is a kind of shop when a single shop is divided into different units. It usually does not make sense to divide a small shop.
A cheque drawn by a bank on itself is a/an
Bank draft is a document which specifies the indebtedness of bank to the beneficiary.
A voluntary body formed by people in the same line of business for the purpose of protecting their interest is a
Trade association is an association of people in the same line of business who aimed to protect the interest of its member.
Those who are engaged in the distribution of goods belong to A. commercial occupation
Transportation is a commercial service.
When an insurance policy is declared void because of a false declaration, the principle involved is
The principle of utmost good faith states that an insured must declare all information in good faith.
Building and machinery used in the running of a business are examples of
Fixed assets are assets that are used over a long period of time by businesses.
Which of the following is classified as invisible item in balance of payment?
Expatriates provide service. Thus, they are considered invisible and so is their salaries.
Collecting information on the taste of consumers and the extent of demand of a product is a
Market research involves all efforts that are geared towards knowing the customers better so as to improve total sales of a business.
Which of the following is not an insurance of indemnity?
Indemnity deals with compensation. Life cannot be compensated.
The entitlement of a debenture holder from a company's income is known as
The debenture holders are entitled to a fixed interest per annum till the maturity of the debenture.
The collection of tariffs on imported goods is the function of
Custom and excise authority saddle the responsibility of collecting tariff on imported and exported goods.
A licensed person who is authorized to sell to the highest bidder is a
Auctioneer is the person that place a good for auction and who pays the highest bidder.
An efficient transport system enables a trader to
When the transportation is more efficient, the seller can widen his market because he can reach many places itch free.
The central Bank's monetary policy instrument by which it buys and sells Treasury bills is known as
Open market operation is the arrangement used by CBN to buy and sell securities in order to regulate the monetary flow of the economy.
Which of the following acted as the central bank for West African countries before their independence?
The West African Currency Board was a board established in 1912 with its headquarters in London. It was established following the reports of a departmental committee set up by the secretary of state to inquire into the currency in use in British West Africa. The board was also mandated to provide for and control the supply of currency to the British West African Colonies, directorates and trust directories. Therefore, it serves as a Central Bank.
Current account holders withdraw money by means of a
Current account holders are issued cheques to be able to interact with their accounts.
Which of the following is a feature of mail order business?
A firm that practice mail order will definitely need space to keep mails.
Bonded warehouse is a place where
Bonded warehouse is the place where dutiable goods are kept.
Which of the following is not concerned with promoting favourable image of an organization?
Public relation is an economic concept which underlines the efforts put in place by an organization in making a mutual relationship with the general public.
The document issued by the registrar of companies to permit a public limited company to commence business is a
Before a company can be allowed to trade, it must be issued certificate of trading.
Which of the following is not an economic grouping?
IMF is an agent of UN and not a union that harmonise nations with same economic interest.
One of the principles of insurance enables
Proximate cause is one of insurance principle which states that the cause of loss must be related to the policy insured.
A written instruction by a current account holder to his bank to debit his account at regular intervals with a specified amount for a given period is known as a
Standing order is an instruction issued to banks to pay a certain amount to a certain person periodically.
A collective bundle of share is called a
Stock is the combination of different shares.
The assets of a business that is available as cash or near cash is called A. equity
Liquid capital is the assets that can be easily converted to cash.
The bank on which a cheque is drawn is known as the
The drawee is the bank on which the cheque is drawn.
A percentage reduction from the quoted price of goods given to a buyer to encourage bulk purchase is called
Trade discount is the deduction given to a buyer to motivate the buyer to buy at large quantity for resale.
The difference between the cost price and selling price of an article is
Mark-up is the difference between the selling price and cost price of a product.
A ceiling on the quantity of commodity to be imported into the country is called
When a quota is imposed, the importers have limited quantity that they can imported into the country.
The buyer in a hire purchase contract becomes the legal owner of the goods by paying the
In hire purchase, ownership remains with the seller till the final installment is paid.
The document which helps in ascertaining the correct value of imports in order to assess the custom duty is a
A consular invoice is a document certifying a shipment of goods and shows information such as the consignor, consignee, and value of the shipment. From the value stated, the duty can be determined.
The combination of product, price, promotion and distribution decisions employed by a company is referred to as its
Marketing mix is combination of all marketing components in achieving market target of a company.
The document which specifies the manufacturer from whom goods are to be imported is a
A closed indent is an order that specifies the manufacturer from whom the goods must be bought. Note: In an open indent, the manufacturer from whom the goods should be bought is not specified. Therefore, the purchasing agent can buy from any manufacturer. Consignment note is an after purchase note. It is after the goods has been bought that the name of the manufacturer and the buyer are recorded in the consignment note for easy carriage and delivery.
Who among the following generally has no capacity to enter into a valid contract?
Infants are not allowed to enter into contract. Any contract entered into by an infant is void.
The satisfaction of consumers in all business activities is emphasized by A. market research
Marketing concept is centred towards satisfying customers.
The document which is used when a country imposes ad valorem duties is a
Certificate of origin will contain the value of the goods and with this, the advalorem tax can be determined.
An activity involving buying, selling and distribution of goods and services is known as
Commerce is trade and aids to trade. Thus, it involves buying and selling as well as all things that make the trade easy.
Which of the following arrangement of documents is the correct sequence as is used in the retail trade? I. Quotation II. Enquiry III. Order IV. Invoice
When enquiry is made, the seller will send quotations to the enquiry and then the buyer will place order and the seller will send invoice for goods ordered.
Mr. Lou who assured his life for the sum of ₦80,000 was involved in an accident and had a broken leg; the money received was paid to Mr. Lou for his broken leg. The money received is known as a
Indemnity is the act of compensating an insured for damage suffered.
The size of profit of a business is measured by A. closing stock B. opening stock C. total purchases D. rate of turnover
Rate of turnover shows how many times stocks are replenished. This is what determines the size of the profit.
Industrial occupation does not involve the
Moving people and goods is not an industrial activity.
The abbreviation E. & O.E. on an invoice seeks to
Errors and Omissions Excepted is used to protect the seller from errors that might have been committed in the invoice.
The functions of credit and thrift society does not include
Credit and thrift society does not provide security to members.
Throwing cargo over board in order to save a ship from sinking is a
When the ship wants to down in the middle of the sea, some goods may be released into the sea. This is referred to as jettison.
The document in which the full details of goods and the ship carrying the goods are contained is known as
Certificate of origin indicates all the information about the cargo and the ship.
The exclusive right of an author over his book is a
Copyright is the exclusive right given to an author to protect him from plagiarism.
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