All 50 questions from the West African Examinations Council (WAEC) Commerce 2018 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
Advertisement
Activities which facilitate commerce include
Improving road networks directly facilitates the movement of goods and trade, aiding commerce.
A document through which invitation is extended to the public to subscribe to a share is a
A prospectus is the document that invites the public to subscribe for a company's shares.
One example of a product of the construction industry is a
A bag of cement is a raw material product of the construction (extractive/manufacturing) industry used in building.
A person authorized to sell the property of a company in a winding up is a(n)
A liquidator is the person appointed to sell off a company's assets/property when it is being wound up.
The space marked A represents
In the commerce diagram, the top branch (A) represents Trade, one of the two main branches of Commerce.
The space marked X represents
In the diagram, X represents Home Trade, one of the divisions of Trade.
What does the space marked M represent?
M represents Quarrying, one of the extractive industry activities under Aids to Trade/Industry in the chart.
The purchase and sale of goods over electronic system is
The buying and selling of goods over an electronic system (the internet) is defined as e-commerce.
One disadvantage of a sole proprietorship is
A major disadvantage of sole proprietorship is unlimited liability — the owner is personally liable for all business debts.
Which of the following is a source of short-term finance to a business?
A bank overdraft is a common source of short-term finance for a business.
The portion of share capital which the company has asked shareholders to pay is
Called-up capital is the portion of share capital that a company has actually requested/called shareholders to pay.
Multilateral trade is carried out
Multilateral trade involves trade being carried out among many (more than two) countries.
An association of business engaged in both trade and industry in a
A chamber of commerce is an association bringing together businesses in both trade and industry to promote commercial interests.
Which of the following statements is true of a debenture? Its holders
Debenture holders are creditors (lenders) of the company, and they receive interest on their loan, not dividends or ownership.
The part through which a product moves from the manufacturer to the consumer is a
The channel of distribution is the route/path a product takes from manufacturer to final consumer.
If the opening stock of Ali Ltd is #40,000 cost of goods sold is #48,000 and closing stock is #24,000, its rate of turnover will be
Average stock = (40,000+24,000)/2 = 32,000. Rate of turnover = Cost of goods sold/Average stock = 48,000/32,000 = 1.5 times.
A business which requires a certificate of trading in order to commence operation is a
A public limited company must obtain a certificate of trading (in addition to incorporation) before it can commence business.
Exchange of goods in international market which does not involve the use of money is
Counter trade is the international exchange of goods for other goods (a modern form of barter) without the direct use of money.
Which of the following features is not associated with a chamber of commerce? It is a
A chamber of commerce membership is not restricted only to entrepreneurs — it is open more broadly to businesses in trade and industry.
The reason for sending a proforma invoice to a potential customer is that it is
A proforma invoice is often used as a polite means of requiring payment in advance, i.e. a way of declining to extend credit.
The insurance policy taken to convert dishonesty of accounts personnel of an organization is
Fidelity guarantee insurance covers an employer against losses caused by the dishonesty of employees.
Which of the following documents is used when goods are being sent by a common carrier?
A consignment note is the document used to accompany goods sent via a common carrier.
A put option in the stock exchange is an option to
A put option gives the holder the right to sell a financial asset at an agreed price.
The functions of money do not include
Double coincidence of wants is a problem of the barter system, not a function of money — in fact money exists to eliminate this problem.
A document of title to goods written by the ship owner, specifying that certain goods are being conveyed in the ship is a
A bill of lading is the document of title issued by a shipowner/carrier acknowledging receipt of goods for shipment.
Informative advertising is aimed at
Informative advertising aims to educate customers about a product, e.g. how to use it and its features.
A cheap means of carrying bulky goods over long distance is by
Rail transport is generally the cheapest means of carrying bulky goods over long distances.
A contract terminated by the occurrence of an event which makes performance impossible is discharge by
A contract that becomes impossible to perform due to an unforeseen event is discharged by frustration.
An individual employed to act on behalf of another within a specified guideline is a
An agent is a person employed to act on behalf of another (the principal) within an agreed/specified guideline.
Which of the following is not a component of the marketing mix?
The marketing mix (4 Ps) consists of Price, Place, Product and Promotion — population is not one of them.
A method of buying in anticipation of price fluctuation in the commodity market is
Hedging is the practice of buying/selling to protect against (anticipate and offset) future price fluctuations.
A shipping document detailing the charges for carrying a particular cargo for a specified voyage is a
A freight note is the shipping document that details the charges for carrying a specific cargo.
Commercial agents who are authorized to keep goods until they are sold are
Factors are commercial agents entrusted with possession of goods, authorised to hold and sell them on behalf of the owner.
An advertisement method whose objective is to convince customers to buy a product is
Persuasive advertising is specifically designed to convince/persuade customers to purchase a product.
A government legislation which ensures that quality goods and services are available to customers is the
The Standard Organization (of Nigeria) Act ensures products meet quality standards before being made available to customers.
A bank draft is a cheque drawn by a
A bank draft is a cheque drawn by a bank upon itself (or another bank), guaranteeing payment.
A company is quoted on the stock exchange when its shared are put under
A company is 'quoted' when its shares are officially listed for trading/sale on the stock exchange.
Which of the following functions is not performed by the export promotion council?
Preventing the importation of harmful goods is a customs/regulatory function, not a role of the export promotion council, which focuses on supporting exporters.
Activities undertaken to create awareness of a product by giving out samples or gifts is
Giving out free samples/gifts to create product awareness is a form of sales promotion.
An advantage of privatizing a firm is that it
A key advantage of privatization is that the firm typically becomes more efficient once run for profit rather than by government.
The transfer of authority by a superior officer to his subordinate in an organization is
This is the definition of delegation of authority.
The provision of scholarships by a firm to needy students is part of its
Providing scholarships to needy students is an act of corporate social responsibility.
How many countries form ECOWAS?
ECOWAS (Economic Community of West African States) is made up of 15 member countries.
Which of the following is a modern means of communication?
E-mail is a modern electronic means of communication, unlike the other traditional/informal options listed.
A system of issuing new shares to selected investors instead of the general public is a
Private placement is the practice of issuing new shares directly to selected investors rather than to the general public.
One of the aims of European Union is to
A core aim of the European Union is to ease/facilitate trade among its member countries.
The purpose of commercialization is to
Commercialization aims to make state-owned enterprises operate more efficiently, often by requiring them to be run on a profit basis.
The time allowed for loading and unloading a ship at the harbour is
Lay days refer to the number of days allowed for loading/unloading a ship at the harbour without extra charge.
Interbank indebtedness is settled at the
Interbank indebtedness (arising from cheque clearing between banks) is settled at the clearing house.
The concern of a marketing manager whose company has adopted the marketing mix concept is to
The core focus of the marketing mix concept is identifying and satisfying customers' needs.
Advertisement
…and/or go further with premium services and No Ads.