COMMERCE EXAM QUESTIONS FOR SS1 THIRD TERM
THIRD TERM SS1 COMMERCE EXAM QUESTIONS – EDUDELIGHT.COM
Examination malpractices may lead to a repeat of the subject or suspensions don’t be involved.
SUBJECT COMMERCE CLASS: S. S. S ONE DURATION 2HRS
SECTION A
- The process of buying, selling and distribution of goods and services is known as (a) retail trade (b) commerce (c) marketing concept (d) marketing mix (e) wholesale trade
- The practice of employing specialist in relevant occupations is a feature of (a) subsistence economy (b) mobility of labor (c) mixed economy (d) exchange economy (e) division of labor
- Which of the following converts raw materials into finished goods? (a) extractive industry (b) manufacturing industry (c) commercial occupation (d) constructive industry (e) tertiary industry
- Production ends when goods (a) and services are used by the producer (b)are packed and labeled (c) are sold in the market (d) and services reached the final user (e) are advertised to be consumed
- The assured is the (a) insurance company (b) insurance company’s client (c)insurance broker (d) insurance agent (e) insurance manager
- Organization formed mainly by traders and manufacturers to cater for the interest of their members is called (a) trade union (b) co-operative societies (c) trade association (d) chamber of commerce (e) manufacturers associations
- If a business man import stock fish with a view to export them to other countries, this form of trade is known as (a) invisible trade (b) entrepot trade (c) export trade (d) import trade (e) bilateral trade
- A deficit in the balance of trade occurs when (a) visible export exceed visible imports (b) total payment exceed visible export (c) visible imports exceed visible exports (d) invisible export exceed invisible import (e) visible export exceed invisible imports
- The factor of production which is described as wealth set aside for the production of further wealth is called (a) entrepreneur (b) land (c) capital (d)goodwill (e) labor
- Buying and selling of goods and services within the geographical areas of a country is called (a) entrepot trade (b) external trade (c) domestic trade (d) regional trade (e) import trade
- Which of the following conditions may make the manufacturer sell directly to the consumer? (a) break in communication (b) inaccessibility of wholesaler\s warehouse (c) the nature of the commodity involved (d)inadequate transport facility (e) trade in balance
- Which of the following is primarily responsible for protecting consumers against poor quality goods? (a) Nigerian National Supply Company (b)Manufacturers Association of Nigeria (c) Industrial Arbitration Panel (d) Standards Organization Of Nigeria (e) Nigeria Chamber of Commerce
- Information about new goods is passed on to buyers through (a) wholesale trade (b) retail trade (c) market research (d) advertising (e) the manufacturer
- The main disadvantage of rail transport to the trader is that (a) it carried bulky goods only (b) its cost of carriage is high (c) it is slow and inflexible (d) it causes road congestion (e) it travels on schedule
- Warehousing is one of the functions of the (a) wholesaler (b) retailer (c)chamber of commerce (d) ministry of trade and industry (e) export promotion department
- Which of the following is not one of the functions of warehousing? (a) goods are available where they are required (b) goods are stored until required (c) production takes place ahead of demand (d) change are avoided in price which may result from shortage and gluts (e) goods are available when required
- The last link in the chain of distribution is the (a) wholesaler (b) retailer (c) consumer (d) factor (e) advertiser
- Which of the following is an insurance principle? (a) endowment (b) premium (c) proximate cause (d) fidelity guarantee (e) surrender value
- The major division of commerce are (a) import, export and transport (b)trade, communication and warehousing (c) trade and auxiliaries to trade (d) exchange, consumption and production (e) import, trade and production
- Which of the following statements is not true? (a) Commercial services are the life blood of the country’s economic system. (b) there cannot occur commercial services until goods have been produced (c) without commercial services most goods and services will not be produced (d) there is no stage of production that does not employ commercial services (e) commercial services add to the value of a product.
- The oldest and commonest form of business in Nigeria is (a) partnership (b)the co-operative society (c) sole proprietorship (d) joint stock venture (e)public corporation
- Which of the following is not a factor of production? (a) capital (b) land (c)labor (d) entrepreneur (e) staffing
- In which class of occupation would you place a taxi-driver? (a) extractive (b) indirect services (c) personal services (d) primary production (e)commercial services
- The exchange of goods for other goods in home trade is known as (a)entrepot trade (b) home trade (c) barter trade (d) Foreign trade (e)counter trade
- A business is in existence primarily to (a) make profit (b) provide goods and services (c) provide employment (d) compete with others in business (e)sell goods at reasonable price
- A number of shops under one roof is the feature of a (a)supermarket (b)chain store (c) department store (d) order business (e) shopping centre
- Entrepot trade refers to (a) importing for domestic consumption (b)importing for industrial use (c) importing government concerns (d) exporting for factory use (e) importing for re-exporting
- An individual who makes the final use of goods and services provided by a firm is the (a) manufacturer (b) wholesaler (c) consumer (d) retailer (e)trader
- In insurance the term Uberrimae fidae stand for (a) utmost good faith (b) subrogation (c) insurable interest (d) indemnity against loss (e)proximate cause
- The amount paid by the insurance company to the insured upon giving up his policy is called (a) surrender value (b) cash bonus (c) assured sum (d)dividend (e) premium
- An overdraft is usually granted to a (a) saving account holder (b) deposit account holder (c) current account holder (d) loan account holder (e) fixed deposit account holder
- The production of goods in anticipation of demand is made possible by (a)packaging (b) warehousing (c)branding (d) advertising (e) transporting
- Which of the following is not the function of a small retailer? (a) supplying goods to the final consumer (b) breaking goods into small units (c) granting credits to known customers (d) furnishing information to the wholesaler (e)selling in large quantities.
- The reward of capital is (a) dividend (b) interest (c) profit (d) rent (e) rebate
- Which of the following is not an advantage of advertising? It (a) gives information about products (b) increase sales (c) increase production (d) improves the quality of product (e) introduces new product
- Retail outlets which sell from specialized vans are (a) super markets (b) multiple shops (c) mail order firm (d) department store (e) mobile shops
- The sole purpose of production is (a) employment (b) promotion (c)consumption (d) competition (e) enterprise
- Which of the following is concerned with obtaining raw material from their natural locations? (a) extractive industry (b) manufacturing industry (c) constructive industry (d) transport industry (e) engineering industry
- The market for short term loans is known as the (a) capital market (b) discount market (c) money market (d) stock market (e) open market
- The main criticism of advertising is that it (a) leads to increase in the size of the market (b) leads to war of brands (c)increase the price of product (d) decreases employment opportunities (e) uses bad language
- Workers involved in mining, quarry or fishing are engaged in (a) secondary production (b) primary production (c) tertiary production (d) the manufacturing industry (e) the construction industry
- Which of the following is not a method of trade restriction (a) exchange control (b) stock exchange (c) import license (d) embargo (e) quota
- Which of the following is a retail outlet to eliminate the profit of middle man? (a) producer co-operative (b) consumer co-operative (c) thrift and credit society (d) department store (e) Multiple shop
- A trade deficit means that (a) the balance of trade is favorable (b) export are less that imports (c)import are less than exports (d)export are decreasing (e)the balance of payment is unfavorable
- Building, machines and motor vehicles used for purpose of production are example of (a) current assets (b) current liabilities (c) working capital (d)fixed assets (e) liquid assets
- Who among the following is not a middle man? (a) a retailer (b) broker (c)factor (d) consumer (e) wholesaler
- The reward of land as a factor of production is known as (a) interest (b) rent (c) profit (d) wage (e) toll
- The relationship between a country’s total receipts and payment in international trade in a given year is called (a) balance of trade (b) balance of payment (c) terms of trade (d) balance of current account (e) balance on capital account
- The three main division of production are (a) extraction, manufacturing and construction (b) import, export and entrepot (c) industry, commerce and direct services (d) land, labour and capital
- Into which of the following two broad areas can trade be divided? (a) home and foreign trade (b) home and retail trade (c) wholesale and retail trade (c)foreign and wholesale trade (d) import and exports
THIRD TERM SS1 COMMERCE EXAM QUESTIONS – EDUDELIGHT.COM
SECTION B
ANSWER ANY 5 IN ALL
1a. What is production?
b. Explain the following (i) Primary Production
(ii) Secondary Production
(iii) Tertiary Production
c. List and explain factors of production
2a. Define retailing
b. Give two examples of small-scale retail outlets and three examples of large scale retail outlets
c. Explain 5 functions of a retailer
3a. Define (i) custom and excise authority
ii. port authority
b. Explain 5 functions of the customs and excise authority.
4a. Define sole proprietorship
b. Outline 5 attributes of ole trading .
c. List 5 sources of capital available to a sole trader.
5a. State 5 sources of capital for partnership
b. Define partnership
c. List and explain 3 types of partnership.
6. Write short note on he following, showing their main uses in foreign trade.
a. Shipping note b. Shipping Manifest c. Consular invoice d. Dock warrant
e. Bill of lading
7a. Define transportation
b. Explain 5 benefits of transportation
c. outline 5 factors that determine the choice of transportation
8a. Explain the term “occupation”
b. Outline 5 factors that influence choice of occupation
c. list 4 problems of barter trade.
THIRD TERM SS1 COMMERCE EXAM QUESTIONS – EDUDELIGHT.COM
SS 1
Commerce
Answer all questions
I. The study of all the activities involved in the distribution of goods and services is known as A. Trade B. Commerce C. AIDS to trade D. Chain of distribution
2. The final person and the last link in the chain of distribution is are respectively A. Consumer and retailer B. Retailer and consumer C. The Agent and the consumer D. The consumer and the agent
3. The aids to trade that covers the conveying of people and goods from where they are produced to where they are needed is know as A. Warehouse B. Banking C. Communication D. Transportation
4. The fastest means of transportation is by A. Air B. Land C. Rail D. Water
5. The type of activity which turns processed raw materials into consumer and industrial goods is described as A. extractive B. manufacturing C. constructive D. processing
6. A distinguishing characteristics of a limited liability company is that it A. is a collection of many sole proprietors B. is a multiple partnership C. can sue and be sued D. has limited resources
7.Which of the following groups is paid first when a firm liquidates? A. Preference shareholders B. Debenture holders C. Ordinary shareholders D. Cumulative preference shareholders
8. What are fixtures and fittings in a balance sheet? A. liquid capital B. current assets C. fixed assets D. working capital
9. Governments impose import duties for the following reasons EXCEPT A. to raise revenue for other services B. to act as a retaliatory measure against other governments C. to discourage the redistribution of income at home D. to protect home industries from external competition
10. The use of coin-operated machines to sell goods is a form of A. personal selling B. retailing C. wholesaling D. mail-order selling
11. What is the major function of the wholesaler? A. buying from small-scale producers and selling to exporters B. buying in bulk and selling in small quantities C. granting of credit facilities to retailers D. providing information to people
12. The difference between the total payments for imports and the receipts from exports within a given period is referred to as A. balance of payments B. balance of trade C. comparative cost advantage D. comparative advantage
13. Which of the following is both direct and indirect credit enterprise?
A. A co-operative and thrift society B. retail co-operative society C. consumer co-operative society D. wholesaler co-operative society
14. Which of the following is a form of sales promotion
A. advertising on radio B. offering free sample C. distributing printed materials D. advertising on television
15. Nationalization of an industry means that its ownership becomes that ofA. government B. shareholders C. taxpayers D. indigenes
16. which of the following is the most important business resource?A. money B. management C. materials D. manpower
17. Paper money originated in form of receipt given by?A. money lenders B. goldsmiths C. bankers D. traders
18. The process of buying and selling and distribution of goods and services is known as?A. retail trade B. commerce C. marketing concept D. marketing mix
19. Which of the following convert raw materials into finished goods?A. Extractive industry B. Manufacturing C. Commercial occupation D. Constructive industry
20. A partnership is formed for banking business is made up of?A. 2 – 10 members B. 2 -20members C. 2 – 30 members D. 2 – 40 members
21. If a businessman imports stockfish with a view to exporting them to other countries, this form of trade is known as?A. invisible trade B. entrepot trade C. export trade D. import trade
22. A trader who wants to buy goods from another country sends?A. an advice note B. an invoice C. a bill of exchange D. am indent
23. Which of the following is an invisible export of Nigeria?A. Shipping services Nigeria renders to RussiaB. Nigeria’s crude oil to londonC. banking services rendered to Americans resident in NigeriaD. Stockfish from Germany to Nigeria
24. A deficit in balance of trade occurs when?A. visible exports exceeds invisible importsB. total payments exceed visible exportsC. visible imports exceeds visible exportsD. invisible exports exceeds invisible imports
25. Pure profits is the elements of the paid?A. for land B. for capital C. a manager D. to an enterpreneur
26. The factor of production which is described as wealth set aside for the the production of further wealth is called?
A. entrepreneur B. land C. capital D. goodwill
27. Which of the following conditions may make the manufacturer sell directly to the consumer?A. brake in communicationB. Inaccessibility of the wholesaler’s warehouseC. The nature of the commodity involvedD. inadequate transport facility
28. Information on new goods is passed on to buyers through?A. wholesale trade B. retail trade C. market research D. advertising
29. Which of the following is not a means of money?A. Divisibility B. Portability C. Accessibility D. Recognizability
30. The main disadvantage of rail transport to traders is that?A. it carries bulky goods only B. its cost of carriage is highC. it is slow and flexible D. it causes road congestion
31. A telephone call within a town is called?A. home call B. trunk call C. district call D. Local call
32. Which mode of transport would you suggest as the most suitable for natural gas?A. Air B. Sea C. Pipeline D. Road
33. Which of the following is not one of the functions of warehousing?A. Goods are avaiable where the are requiredB. Goods are stored until the are requiredC. Production takes place ahead of demandD. changes are avoided in prices which may result from shortage and gults
34. Which of the following shows the financial position of a business on a given date?A. Bank statementB. Balance sheetC. journalD. Cash book
35. Which of the following shows the financial position of a business on a given date?A. Bank statement B. Balance sheet C. journal D. Cash book
36. Opening stock……………..N1000
Closing stock……………..N9000
Purchases…………………N14,000
The average stock is?
A. N2000 B. N3000 C. N5000 D. N6000
37. The oldest and commonest form of business in Nigeria is?
A. partnership B. the co-operative society C. sole proprietorship D. joint stock venture
38. In which class of occupation would you place a taxi driver?
A. Extractive B. Indirect services C. Personal services D. Commercial services
39. Which of the following is the most suitable means of transporting bulky goods from Lagos to Kaduna? By
A. Train B. Aeroplane C. Ship D. Lorry
40. The word Ltd written after the name of a company means that?A. the individual member’s capital is limitedB. the total sum of the company’s capital is limitedC. members are liable to the extent of their holdingD. company’s location is limited
41. .Another name for home trade is [a]domestic trade[b]entreport[c]external trade
42.The buying,selling and exchange of goods and services over a computer is called [a]E-Commerce[b]utility[c]jumia
43.Which of the following aide to trades helps a business man to bear his risk[a]insurance[b]banking[c]tourism
44.One of the following is a problem of trade by barter[a]expensive [b]double coincidence[c]employment
45.Which of the following is listed under direct service[a]barbing[b]Police [c]NAFDAC
46.Which of the following is under extractive industry[a]brick making[b]farming[c]plumbing
47.Which is the most important factor of production[a]Land[b]Money[C] Entrepreneur
48.The reward for capital is [a]interest[b]rent[c]profit
49.Who sales in small quantity to consumers[a]Wholesaler[b]Retailer[c]middle man
50.Which of the following is under large scale retailing [a]mobile shop[b]street traders [c]stores
COMMERCE EXAM QUESTIONS FOR SS1 THIRD TERM
