COMMERCE EXAM QUESTIONS SS1 SECOND TERM

SECOND TERM SS1 COMMERCE EXAM QUESTIONS – EDUDELIGHT.COM

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 SUBJECT: COMMERCE        DURATION: 2HRS  CLASS: SSS 1

SECTION A

INSTRUCTION: ANSWER ALL QUESTIONS IN THIS SECTION

1.  The process of buying, selling and distribution of goods and services is known as ____________

 (a) retail trade (b) commerce (c) marketing mix (d) marketing concept (e) whole sale trade

2.  On which of the following should a small retailer place highest priority when choosing a business site? (a) customer accessibility (b) employee convenience (c) nearness to similar businesses

 (d) closeness to banks

3.  Poor shop location leads to _______ (a) higher rents (b) increased profits (c) poor business image

 (d) lower sales

4.  A small and independent retailer can compete with larger stores because ___ (a) they can easily obtain capital (b) their store is conveniently situated (c) they can buy in bulk (d) they are able to advertise widely

5.  Which of the following converts raw materials into finished goods?  (a) extractive industry

 (b) manufacturing industry (c) commercial industry (d) tertiary industry

6.  A group of retailing shops under one management and selling the same products is known as ______ (a) multiple shop (b) supermarket (d) departmental store (d) variety store

7.  The critical factor in organizing a business is _____ (a) money (b) capital (c) machinery

(d) management

8.  The exchange of goods for goods in home trade is known as _______ (a) entrepot trade (b) home trade (c) barter trade (d) counter trade

9.  Buying and selling of goods within a geographical area is called _________ (a) entrepot trade

(b) external trade (c) domestic trade (d) foreign trade 

10.  One of the features of supermarket is ______ (a) having similar shops front (b) having many shops under one roof (c) selling common household goods (d) having central control from headquarters.

11.  When a major motor dealer undertakes routine maintenance of customer’s vehicles, he is offering ______ (a) self services (b) pre-sales services (c) after sales service (d) auto-mobile service

12.  Which of the following is an invisible export of Nigeria? (a) shipping service Nigeria renders to Russia (b) Nigeria’s crude oil to London (c) banking services rendered to Americans resident in Nigeria (d) stock fish from Germany to Nigeria

13.  Which of the following conditions may make the manufacturer sell directly to consumers?

(a) break in communication (b) inaccessibility of the whilesaler’s warehouse (c) the nature of the commodity involved (d) inadequate transportation

14.  Direct production refers to _______ (a) producing a surplus (b) cooperating with others  (c) a form of barter (d) producing needs unaided by others

15.  Which of the following is not a factor of production? (a) land (b) capital   (c) labor (d) organization

16.  Which of he following is the odd one out in relation to barter? (a) money was necessary (b) an exchange rate had to be negotiated (c) it was difficult to divide some goods (d) it acted as a substitute

17.  A merchant wholesaler is one who _____ (a) takes title to the goods he sells (b) does not own the goods he sells (c) earns commission for serving as an agent (d) sometimes makes retail sales

18.  Major divisions of commerce are (a) import, export and transport                 (b) trade, communication and warehousing (c) trade and auxiliaries to trade (d) exchange, consumption and production

19.  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

20. Entrepot trade refers to _____ (a) importing for domestic consumption (b) importing for industrial use (c) exporting for factory use (d) importing for re-exporting

21.  A business is in existence primarily to _______ (a) make profit (b) employ workers (c) provide goods and services (d) compete with others in business.

22.  Which of the following activities would be most likely to involve the occupation of teaching?

 (a) oil production (b) retailing (c) manufacturing (d) direct services

23.  Farmers, fishermen and miners are examples of people who work in _____ (a) tertiary production (b) primary production (c) commerce (d) secondary production

24.  The branch of trade in which advertising would be placed is ______ (a) retailing (b) aids to trade

(c) direct services (d) production

25.  Which of the following best defines trade? (a) the exchange of goods and services (b) the aids to trade (c) industrial output (d) direct services

26.  Which of the following is a service the wholesaler gives to the retailer? (a) sells to consumers

(b) buys from the retailers (c) sells in convenient quantities to the retailers (d) produces goods the retailers needs

27.  The production of goods in anticipation of demand is made possible by _____ (a) packaging

 (b) warehousing (c) branding (d) advertising

28.  Which of the following is not the function of a small retailer?  (a) supplying goods to the final consumer (b) breaking bulk of goods  (c) granting credits to known customers (d) furnishing information to the wholesaler

29.  Retail outlets which sell from specialized vans are _______ (a) supermarkets (b) multiple shops

 (c) mail order firms (d) mobile shops

30.  All of the following are aspects of trade, except _____  (a) exporting (b) importing   (c) retailing

 (d) production

31. Which of the following is not an advantage of advertising? (a) it gives information about product

 (b) it increases sales (c) it increases production (d) it improves the quality of products

32.  The sole purpose of production is ______ (a) employment (b) promotion    (c) consumption

(d) importation

33.  The tendency for firms and individuals to concentrate on the activity which is of most advantage of them is known as _______ (a) decentralization   (b) diversification (c) commercialization (d) specialization

34.  Warehouses are located in Lagos because of _______ (a) availability of wholesalers (b) even development (c) nearness to sea and airports (d) the need to check smuggling

35.  When government puts a straightforward ban on trading with another country this is called ____

(a) tariff (b) quota (c) embargo (d) exchange control

36.  An adverse balance of trade occurs when ______ (a) exports value exceeds imports value (b) imports value exceeds exports value (c) the total value of exports and imports is equal (d) taxes are imposed on imported goods

37.  Goods meant for final consumption are sold in _____ (a) consumer market (b) commodity market (c) future market (d) commodity exchange

38.  Raw materials are ________ (a) graded materials (b) dealers’ goods (c) producers’ goods (d) consumers’ goods

39.  A trade agreement in which two countries exchange goods and services is known as_______

(a) export trade (b) bilateral trade (c) multilateral trade (d) barter trade

40.  The market for short term loans is ____ (a) capital market (b) stock market          (c) open market (d) money market

41.  Which of the following is a function of money? (a) a medium of exchange (b) a uniform quality

(c) it is easily carried (d) it is easily recognized

42.  The practice of employing specialist in relevant occupations is a feature of _______(a) subsistence economy (b) mobility of labor (c) mixed economy  (d) division of labor

43.  The reward of land as a factor of production is known as _____ (a) interest (b) rent (c) profit

(d) wage

44.  Who among the following is not a middle man? (a) a retailer (b) broker (c)wholesaler (d) consumer

45.  Building, machines and motor vehicles used for purpose of production are examples of_______

(a) current assets (b) current liabilities (c) working capital (d)fixed assets

46.  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

47.  In which class of occupation would you place a taxi-driver? (a) extractive (b) indirect services

(c) direct services (d) commercial services

48.  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

49.  Which of the following is not a commercial occupation? (a) shop keeper (b) truck driver (c) miner (d) banker

50.  Which of the following workers is employed in the tertiary sector? (a) builder (b) miner

(c) shopkeeper (d) farmer

SECOND TERM SS1 COMMERCE EXAM QUESTIONS – EDUDELIGHT.COM

SECTION B

ANSWER ANY 4 QUESTIONS

1(a) Define Commerce.      

(b) List and explain 4 ancillaries to trade

(c) Discuss the historical development of commerce

2(a) What is retail business?

(b) Write short note on (i) three types of small scale retail outlet (iii) three types of large scale retail outlet

(c) Explain four reasons why small scale retailers survive despite the dominance of large scale retailers

3(a) Define wholesale trade.

(b) Explain 5 functions of wholesalers to retailers.

(c) State two ways in which a hypermarket differs from a supermarket.

4(a) Write short note on the following modern trends in retail trade (i) self service (ii) branding (iii) pre-packaging (iv) automatic vending

(b) Explain four functions of a retailer to the wholesaler

(c) Outline four arguments against the elimination of middlemen

5(a) Explain visible and invisible exports and give two examples each.

 (b) Write short note on the following (i) embargo (ii) tariff (iii) quota

(c) List 5 documents used in foreign trade

6(a)  Define division of labour 

(b) Explain 4 benefits of division of labour

(c) Draw the diagram that shows the classification of occupation

SECOND TERM SS1 COMMERCE EXAM QUESTIONS – EDUDELIGHT.COM

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 S S ONE

SECTION B [ ANSWER FIVE UESTIONS ONLY,NUMBER 3 IS COMPULSORY]

[1]          Define cooperative society

[b]. State four characteristics of cooperative society [c]. Explain three as given in [b] above.

[2]. Explain shares and shares certificate

[b] Mention and explain 3 classes of shares

[3] State the steps for the formation of limited liability company

[4]. What is international trade

[b]. Differentiate between balance of payment and balance of trade

[5]          List and explain five factors that determine choice of transportation

[b]          Mention and explain the forms of transportation

[c]           Differentiate between tramp line and ocean line, at least five.

[6]          Give 5 importance of transportation

[b]          Give and explain five traditional media [c]List four forms of communication

[7]. Draw the diagram for the scope of commerce [b]Define 5 of the aid to trade

[8]          Define advertisement

[b]Mention and explain three forms of advertising

[c]           What is window display advertising

[9]          What is money

COMMERCE EXAM QUESTIONS SS1 SECOND TERM