COMMERCE EXAM QUESTIONS FOR SS2 THIRD TERM
SS2 COMMERCE EXAM QUESTIONS THIRD TERM – EDUDELIGHT.COM
THIRD TERM EXAMINATION
Examination malpractices may lead to a repeat of the subject or suspensions don’t be involved.
SUBJECT COMMERCE
CLASS: S. S. S 2
DURATION 2 HRS
OBJECTIVE
1. The type of warehouse that is supervised by customs and excise is called a:
a. bounded warehouse b. retail warehouse c. data warehouse d. customs warehouse
2. An automated warehouse uses:
a. automated temperature control b. computer aided conventional shelving c. automated security device d. robotics
3. Which of the following is the most appropriate description of a warehouse?
a. a large conditioned building b. time gap building c. a commercial building for storing d. manufacturers’ warehouse
4. A regional type of warehouse would be typically used by:
a. customs and excise department b. retailing chains c. airport terminals d. automated retrival systems
5. Which of the following is not part of the money market?
a. commercial banks b. acceptance houses c. finance houses d. insurance companies
6. Which of the following is not part of the capital market?
a. issuing houses b. commercial banks c. the stock exchange d. pension funds
7. The users of capital:
a. receive interest b. provide cash to the market c. pay interest d. are lenders
8. In which year did the Nigerian stock exchange introduce the SSN?
a. 1960 b. 1979 c. 1973 d. 1962
9. The Lagos stock exchange actually commenced exchange operations in:
a. 1960 b. 1961 c. 1962 d. 1963
10. The Nigerian stock exchange is a segment of the:
a. exchange market b. money market c. capital market d. Lagos market
11. Which of the following banks is concerned with raising money for a business through share issue?
a. central bank b. credit bank c. commercial bank d. merchant bank
12. The proportion of profits given to ordinary shareholders is called:
a. interest b. dividend c. yield d. equity
13. Who among the following does not function in the stock exchange market?
a. bull b. broker c. jobber d. promoter.
14. Who among the following sells securities in anticipation of a fall in price?
a. bear b. stag c. jobber d. bull
15. Which of the following gives businessmen the opportunity to buy shares of public limited companies?
a. Insurance companies b. commercial bank c. discount houses d. the stock exchange
16.Which of the following is an insurance principle?
a. endowment b. premium c. proximate cause d. surrender value
17.The practice of giving a particular name to a product by a manufacturer is
a. branding b. standardization c. publicity d. advertising
18. The following are rights of consumers except the right to
a. be heard b. be informed c. get value for money d. receive free sample
19. Which of the following gives businessmen the opportunity to buy shares of public limited companies?
a. insurance companies b. commercial bank c. discount houses d. the stock exchange
Use the following information to answer question 20 – 22
Oluwapelumi enterprises had the following state of affairs: stock 1st jan was #34,500 and 31st December was #34,000. His purchases were #340,000 and sales was #398,000 while total rent and electricity bills of #35,500 were paid.
20. What is the gross profit?
a. #57,000 b. #23,000 c. #64,500 d. #57,500
21. The rate of stock turnover is
a. 9.94 times b. 94 times c. 99.2 times d. 9.49 times
22. The net profit for the period is
a. #57,000 b. #57,500 c. #23,000 d. #24,000
23. The money used in running the day to day activities of the business is represented by
a. total assets less total liability b. total assets less current liability c. current assets less stock d. current assets less current liabilities
24. If the turnover of a business is #16,000 and the cost of goods sold is #12,000. What is the percentage of gross profit on sales?
a. 70% b. 40% c. 33.3% d. 25%
25. Certificate of incorporation is best sent by
a. ordinary post b. recorded delivery c. express delivery d. parcel post
26. Which of the following is a disadvantage of the use of teleprinters in communication?
a. transmission speed is low b. pictures cannot be transmitted c. transmission quality is poor d. it cannot transmit during bad weather.
27. The means by which printed messages sent by cable are recorded is called.
a. telegram b. posterestates c. telex services d. telephone
28. Which of the following is a functional of NIPOST?
a. issuing money order b. issuing dividend warrant c. issuing traveler’s cheque d. minting coins
29. The body controlling the installation and maintenance of telephone in Nigeria is
a. NET b. ITT c. NITEL d. NIPOST
30. The term utmost good faith in insurance means
a. both the insurer and the insured must disclose all information b. only the insurer must disclose all information c. the beneficiary must disclose all information d. only the insured must disclose all information
31. A price quotation which includes all the expenses involved in loading the goods into a ship is
a. free on board b. free alongside ship c. Cost insurance freight d. ex-ship
32. Shares,bonds,stocks and debentures are traded on the stock exchange are
collectively called
a. collaterals b. commodities c. resources d. securities
33. In a hire purchase contract the customer becomes the legal owner of the goods by
a. paying the last installment b. paying the first installment c. taking possession of
goods d. Paying half the purchase price
34. Which of the following is engaged in commercial Occupation
a. a brick layer b. an engineer c. an insurance broker d. a barber
35. Net 3 months on an invoice means the buyer will
a. pay interest after 3 months b. get discount if he pays within 3 months c. pay full
invoice amount after 3 months d. have discount if he pays after 3months
36. The ratio between a country exports and her imports prices is the
a. balance of trade b. balance of payment c. terms of trade d. exchange rate
37. The charge paid to a ship owner for the unused part of a ship is known as
a. penalty b. dock dues c. dead freight d. demurrage
38. Fidelity guarantee insurance will only cover
a. cashier fraud b. daylight robbery c. loss of profit d. unpaid loan
39. In the absence of bill of lading which of the following is used to clear the goods?
a. bill of sight b. dock warrant c. certificate of origin d. mate receipt
40. A system of sales where goods are sold to the highest bidder is known as
a. credit sale b. hire purchase c. clearance sale d. auction sale
41. An insurance principle which prevents an insured from making profit when
compensated is known as
a. proximate cause b. indemnity c. insurable interest d. utmost good faith
42. A retail outlet with many branches all dealing in similar line of goods is described as
a
a. department store b. supermarket c. chain store d. hypermarket
43. The person who gave his building as a security for loan is known as a
a. trustee b. mortgage c. mortgagors d. guarantor
44. A firm that specializes in packing and shipping of goods is known as a
a. forwarding agent b. general agent c. Del credere agent d. cargo handling company
45. The central bank sometimes calls for special deposits from the commercial banks in
order to
a. reduce bank lending b. increase bank lending c. withdrawal defaced currencies
d. issue new notes and coins
46. A principal member of the stock exchange who buys and sells securities on his own
a. jobber b. promoter c. broker d. speculator
47. Consumer protection places an obligation on producers to ensure that their products
a. are wholesome and safe b. are cheap c. do not evade customs examination d. are
branded
48. The target for all marketing activities is the
a. consumer b. middleman c. producer d. distributor
49. The entertainment industry classified under
a. extractive industry b. manufacturing industry c. constructive industry
d. commercial industry
50. Buying on impulse is encouraged by
a. co_operative shops b. hawkers c. supermarket d. mail order firms
SS2 COMMERCE EXAM QUESTIONS THIRD TERM – EDUDELIGHT.COM
THEORY
ANSWER QUESTION ONE AND ANY OTHER FOUR QUESTION
Olumide a retailer who deals in cement.Started business on 1st January,2011. The following information
Was extracted from his books
#
Rent 35,000
Sales 950,000
Purchases 500,000
Returns inwards 35,000
Insurance 50,000
Fixtures and fittings 25,000
Wages and salaries 114,000
From the above information calculate the
a. turnover b. cost of goods sold c. gross profit d. net profit e. rate of stock turn
2a. write short note on the following:
i. bears ii. Bull iii. Jobbers iv. Brokers v. stags
b. state the types of securities
c. Define capital
3a. State the importance of stock exchange
b. What are the function of warehousing
c. State the types of capital
4a. Highlight the barriers of effective communication
b. Define turnover
c. Explain the principle of insurance
5a. What is insurance?
b. Explain any four types of insurance
c. state the type of credit
6a. state the aims and objectives of trade association
b. define transportation
c. Explain any three types of transportation
7a. Write short note on the following
I. cartel II. syndicate III. consortium iv. trust v. holding
b. What are the aims and objectives of chamber of commerce
8a. Explain consumer protection
b. Explain the history Nigerian capital market
9a. What is communication?
b. Explain the constraints to commodity trading
c. What is co-operative society?
SS2 COMMERCE EXAM QUESTIONS THIRD TERM – EDUDELIGHT.COM
COMMERCE
1. Which of the following is NOT an aim of advertising?
A. creating a desire to purchase the goods
B. arousing the interest of the public
C. attracting the attention of the public
D. inspiring public confidence in the goods
E. reducing the cost of the goods produced
2. Use the following information answer this question.
What is the gross profit?
A. N2050
B. N3720
C. N4020
D. N4320
E. N4720
3. Which of the following warehouse is generally found near a port?
A. bonded warehouse
B. distributor’s warehouse
C. manufacturer’s warehouse
D. producer’s warehouse
E. wholesaler’s warehouse
4. Banks issue cheque books to customers holding ……… accounts.
A. current
B. deposit
C. fixed deposit
D. foreign
E. savings
5. The difference between the higher prices and the lower prices quoted for shares and stocks at the stock exchange is known as
A. brokerage
B. commission
C. contango
D. interest
E. jobbers turn
6. An agreement that is enforceable in law is called
A. a contract
B. a declaration
C. a decree
D. an offer
E. a statute
7. One of the following does NOT fit into the group.
A. agriculture
B. carpentry
C. fishing
D. mining
E. quarrying
8. Which is NOT a legislation aimed at protecting the consumer?
A. consumer association act
B. food and drugs act
C. hire purchase act
D. sales of goods act
E. trade description act
9. Which of the following CANNOT be sold through a vending machine?
A. ice-cream
B. shoes
C. snacks
D. tea
E. tickets
10. A voluntary association of business executives, trader men, entrepreneurs and others in a city, town or country is called a
A. chamber of commerce
B. consumers association
C. manufacturers association
D. trade association
E. trade union
