WAEC SSCE - Commerce - 2022 (Objective)

Question 1 Report

A document used to ensure correct payment of duty at the importing country is

documentary credit

consular invoice

certificate of origin

bill of lading

Trade

Commerce

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Question 2 Report

The number of subordinates a head of department supervises is

unity of command

chain of command

span of control

unity of direction

Introduction To Business Management

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Question 3 Report

The commission on a postal order is

tariff

poundage

brokerage

fee

Answer Details

The commission on a postal order is known as poundage. Poundage is the fee charged by the post office for providing a postal order service. It is usually a percentage of the total amount of the order and is added to the cost of the order. This fee is charged to cover the cost of processing the order and to provide revenue for the post office. The amount of poundage charged may vary depending on the amount of the order and the location where the order is being sent.

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Production

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Question 4 Report

Advertisement which is geared towards a particular audience is

direct advertising

indirect advertising

mass advertising

persuasive advertising

Answer Details

The answer is (a) direct advertising. Direct advertising is an advertising strategy that targets a specific group or audience based on their demographics, behaviors, interests, or preferences. The goal of direct advertising is to increase the likelihood of reaching potential customers who are more likely to be interested in the product or service being advertised. This is often achieved through targeted advertisements in specific media channels or platforms, such as social media or email marketing. Direct advertising is different from mass advertising, which is designed to reach a wide audience, regardless of their interests or preferences. Indirect advertising focuses on creating a favorable impression of a product or brand by associating it with other things that are appealing to the target audience. Persuasive advertising aims to convince the audience to take a particular action, such as purchasing a product or subscribing to a service.

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Advertising

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Question 5 Report

Central banks sell treasury bills to the public to

increase cash in the banking system

raise revenue for commercial banks

raise revenue for private investors

reduce cash in circulation

Commerce

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Question 6 Report

Use the information below to answer question 13 and 14

	#
Sales	50,000.00
Debtors	10,000.00
Cash-in-hand	5,000.00
Opening stock	30,000.00
Creditors	8,000.00
Purchases	16,000.00
Overdraft	12,000.00
Closing stock	10,000.00

calculate the working capital.

#35,000.00

#20,000.00

#15,000.00

#14,000.00

Commerce

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Question 7 Report

An advantage of rail transport is that it

is less expensive to maintain

is not prone to delays

bulky and heavy goods

enhances door-to-door delivery

Answer Details

An advantage of rail transport is that it is suitable for transporting bulky and heavy goods. Railways have large carrying capacity and can transport huge quantities of goods over long distances. The rail infrastructure can handle heavy and bulky goods such as minerals, coal, timber, and machinery, which would be difficult or expensive to transport by road or air. This is because railways can support heavier loads and are not subject to weight restrictions like road transport. Therefore, rail transport is a cost-effective and efficient means of transporting heavy goods in large quantities over long distances.

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Transport, Tourism, Communication And Warehousing

Occupation

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Question 8 Report

One of the functions of commercial banks that cannot be performed by central banks is

collection of old notes

collection of deposits from the public

issurance of treasury bills

printing of bank notes

Answer Details

Commercial banks and central banks are both important players in the banking system. However, they perform different functions. One of the functions of commercial banks that cannot be performed by central banks is the collection of deposits from the public. Commercial banks accept deposits from individuals and businesses and use the money to make loans and investments. Central banks, on the other hand, are responsible for regulating the money supply, controlling inflation, and stabilizing the economy through monetary policy. While central banks can issue and redeem government securities such as treasury bills, they do not collect deposits from the public. Therefore, the correct option is: "collection of deposits from the public."

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Commerce

Trade

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Question 9 Report

Calculate the gross profit.

#35,000.00

#20,000.00

#15,000.00

#14,000.00

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Question 10 Report

A group of sellers who pool their resources to buy goods in large quantities and sell to its members is a

wholesale cooperative society

thrift and credit society

consumer cooperative society

chamber of commerce

Commerce

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Question 11 Report

One of the functions of a trade association is to

pay members salaries

promote members' welfare

provide loans to members

provide employment for members

Answer Details

A trade association is an organization that is formed by a group of businesses or companies in a particular industry. One of the main functions of a trade association is to promote and protect the interests of its members. This may include lobbying for favorable legislation, providing resources and support to help members navigate industry challenges, and promoting the industry as a whole to the public. Therefore, the option that best describes one of the functions of a trade association is "promote members' welfare."

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Trade

Trade Associations

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Question 12 Report

A requirement for an offer to be valid is that it should be

witnessed by a third party

something of value

made to one person only

communicated to the offeree

Answer Details

For an offer to be valid, it must be communicated to the offeree. This means that the person making the offer (offeror) must clearly express their intention to be bound by the terms of the offer to the person receiving the offer (offeree). The offeree must be aware of the offer, understand the terms of the offer and have the ability to accept or reject the offer. Without proper communication of the offer, there can be no valid offer, and therefore, no contract can be formed.

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Legal Aspects Of Business

Legal Aspect Of Business

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Question 13 Report

A partner who contributes only his name to the formation of a partnership is

a nominal partner

a limited partner

a general partner

an active partner

Answer Details

A partner who contributes only his name to the formation of a partnership is a "nominal partner". This means that the partner is not actively involved in the day-to-day operations of the business and does not make any significant contributions in terms of capital or expertise. The nominal partner is essentially a figurehead or a silent partner, and is usually included in the partnership agreement for the purpose of lending credibility to the business or to provide some other strategic benefit.

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Legal Aspects Of Business

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Question 14 Report

A retail business that sells goods by post, using catalogues is a

chain store

department store

mail order firm

shopping mall

Answer Details

A retail business that sells goods by post, using catalogues is a mail order firm. This means that the customers can order products from a catalogue by mail or telephone and the products will be delivered to them by post. Mail order firms typically have a wide variety of products available for purchase, and customers can browse the catalogue at their leisure before making a purchase. They are often used for purchasing items that may not be readily available in local stores, or for convenience when shopping from home.

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Read lesson note on Commerce (JAMB)

Purchase And Sale Of Goods

Commerce

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Question 15 Report

Dealers in the stock exchange such as bulls, bears and stags are categorized as

actuaries

promoters

speculators

underwriters

Answer Details

Dealers in the stock exchange such as bulls, bears and stags are categorized as "speculators". Speculators are investors who take on higher risks in order to make profits from market fluctuations. Bulls are speculators who believe that the market will rise and buy securities in anticipation of rising prices, while bears are speculators who believe the market will fall and sell securities to avoid losses. Stags, on the other hand, are speculators who buy shares at an initial public offering (IPO) and sell them quickly after listing for a profit.

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Stock Exchange

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Question 16 Report

The incentive given to a buyer to encourage prompt payment is

cash discount

seasonal discount

quantity discount

trade discount

Answer Details

A discount given to a buyer to encourage prompt payment is known as a "cash discount". This is a reduction in the price of the goods or services being sold, which is offered to the buyer if they pay their bill within a specified period of time. For example, a seller might offer a 2% discount on the total invoice amount if the buyer pays within 10 days of receiving the invoice. The purpose of the cash discount is to incentivize buyers to pay their bills quickly, which helps the seller to improve their cash flow and reduce the risk of bad debts.

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Purchase And Sale Of Goods

Commerce

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Question 17 Report

The provision of services is classified under

batch production

flow production

secondary production

tertiary production

Answer Details

The provision of services is classified under tertiary production. Tertiary production is also known as the service sector of an economy. This sector is responsible for the production and delivery of services to customers rather than the production of physical goods. Examples of industries in the service sector include healthcare, education, transportation, hospitality, and consulting.

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Occupation

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Question 18 Report

The act of removing government laws and allowing market forces to determine prices is

commercialization

deregulation

divestiture

privatization

Answer Details

The act of removing government laws and allowing market forces to determine prices is called deregulation. This means that the government no longer regulates prices of goods and services, but instead allows market forces of supply and demand to determine the prices. Deregulation can occur in various industries, such as telecommunications, transportation, and energy, and it is often seen as a way to increase competition, improve efficiency, and lower prices for consumers.

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Commerce

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Question 19 Report

The agreement which led to the formation of the West African Clearing House was signed in

Gambia

Sierra Leone

Nigeria

Ghana

Commerce

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Question 20 Report

A disadvantage of privatization is

high motive for profit than public interest

decline in the supply of goods

less efficiency in production of goods

increase in government expenditure

Commerce

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Question 21 Report

The law by which a seller transfers the property in goods to a buyer at an agreed price is the

Weights and Measures Act

Trade Description Act

Sale of Goods Act

Foods and Drugs Act

Answer Details

The law by which a seller transfers the property in goods to a buyer at an agreed price is the Sale of Goods Act. This act provides legal protection to buyers and sellers in the exchange of goods. It defines the terms and conditions of the sale, such as the price, quantity, quality, and delivery of the goods. It also outlines the rights and obligations of both the buyer and the seller in the transaction, such as the right to inspection and the right to reject faulty goods. Overall, the Sale of Goods Act helps ensure fair and smooth transactions between buyers and sellers.

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Legal Aspect Of Business

Purchase And Sale Of Goods

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Question 22 Report

The marketing concept emphasizes

sale of goods directly to customers

use of promotional tools to stimulate sales

mass production of goods

consumer's satisfaction at a profit

Answer Details

The marketing concept emphasizes the consumer's satisfaction at a profit. This means that businesses should focus on identifying and satisfying the needs and wants of their target customers, rather than simply producing and selling goods. By understanding and meeting the needs of consumers, businesses can build strong relationships with their customers and ultimately drive profitability. The marketing concept involves researching and analyzing customer needs, developing products that meet those needs, promoting those products effectively, and providing high-quality customer service.

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Elements Of Marketing

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Question 23 Report

The resources put together to create goods and services are

working capital

producer goods

factors of production

consumer goods

Answer Details

The resources put together to create goods and services are referred to as factors of production. These are the inputs used in the production process to produce goods and services. The four main factors of production include land, labor, capital, and entrepreneurship. Land refers to natural resources such as forests, water bodies, and minerals used in the production process. Labor refers to the human resources used in the production process. Capital refers to the financial resources used in the production process, such as machinery, tools, and equipment. Entrepreneurship refers to the skills and knowledge required to start and run a successful business. All of these factors of production work together to produce goods and services that meet the needs of consumers.

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Production

Occupation

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Question 24 Report

Which of the following groups would advocate for the supply of constant electricity to households?

consumers' association

credit union

Employers' association

Labour union

Answer Details

The group that would most likely advocate for the supply of constant electricity to households is the consumers' association. This is because the consumers' association represents the interests of consumers and their goal is to ensure that consumers receive the best possible service. Access to constant electricity is a basic need for households, and the consumers' association would work to ensure that electricity providers are held accountable for providing a reliable and consistent supply of electricity to consumers. The credit union represents the interests of its members regarding financial services, while the employers' association represents the interests of employers, and the labor union represents the interests of employees. While access to electricity may be a concern for both employers and employees, it is not their primary focus, unlike the consumers' association.

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Commerce

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Question 25 Report

Which of the following is not a characteristic of a commercial bank?

established as a limited liability company

Established by individuals or organizations

Established to issue bank notes

Established with the view of making profit

Answer Details

The characteristic that is not of a commercial bank is "Established to issue bank notes". Commercial banks are established as limited liability companies with the aim of making profits by offering financial services such as accepting deposits, granting loans, and providing various financial services to individuals, businesses, and governments. They are also established by individuals or organizations, but they are not specifically established to issue banknotes, as that is the function of a central bank.

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Commerce

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Question 26 Report

The growth of Pro commerce is not enhanced by

development of modern forms of production

government participation in business

high population growth

low per capita income

Commerce

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Question 27 Report

The purpose of commercialization is to

make state-owned firms more efficient

enable state-owned firms pay tax

encourage the flow of foreign capital

encourage greater participation of the private sector

Answer Details

Commercialization is a process that involves transforming state-owned enterprises into commercial or profit-oriented entities. The primary purpose of commercialization is to make state-owned firms more efficient by instilling private sector practices and management techniques into their operations. By doing this, state-owned firms can become more self-sustaining and less reliant on government subsidies, and ultimately contribute to economic growth. Commercialization can also encourage the flow of foreign capital and promote greater private sector participation in the economy.

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Commerce

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Question 28 Report

Which of the following organizations provide essential goods and services at low cost to citizens?

Thrift societies

public enterprises

private companies

cooperative societies

Answer Details

Public enterprises provide essential goods and services at low cost to citizens. Public enterprises are government-owned and operated entities that provide goods and services to the public at a subsidized rate, with the aim of ensuring that basic necessities are available to all citizens, regardless of their ability to pay. Examples of public enterprises include water supply, electricity, transportation, and healthcare.

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Commerce

Occupation

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Question 29 Report

The of the products of the construction industry is a

piece of cloth

bag of cement

television

chair

Production

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Question 30 Report

A cheque is specially crossed if

the name of the account holder is written between two parallel lines drawn across it

it could be paid over the counter

the name of the bank is written between two parallel lines drawn across it

only two parallel lines are drawn across it

Answer Details

A cheque is specially crossed if the name of the bank is written between two parallel lines drawn across it. This type of crossing provides an additional layer of security to the cheque as it can only be paid into the account of the payee with the named bank. It prevents the cheque from being paid to any other bank or cashed over the counter. Therefore, the payee must deposit the cheque into their bank account for it to be cleared and the funds credited to their account.

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Read lesson note on Commerce (JAMB)

Purchase And Sale Of Goods

Commerce

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Question 31 Report

A country's visible balance of payment is made up of

interest on loans to foreign countries

profit from investment abroad

earnings from goods exported

dividend earned from companies

Answer Details

A country's visible balance of payments is made up of earnings from goods exported. This refers to the income that a country receives from selling its products and services to other countries. It includes both physical goods, such as cars and electronics, as well as intangible goods, such as software and financial services. Other items, such as interest on loans to foreign countries, profit from investment abroad, and dividend earned from companies, are not included in the visible balance of payments, but are instead part of the country's overall balance of payments.

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Trade

Purchase And Sale Of Goods In Home And Foreign Trade

Business Capital And Profits

Commerce

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Question 32 Report

An agency agreement in which the principal approves the action of his authorized representative is agency by

ratification

necessity

implication

estoppel

Commerce

Occupation

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Question 33 Report

An organizational chart of a company shows the

arrangement of equipment in the company

financial status of employees in the company

geographical location of the company

hierarchy of staff in the company

Answer Details

An organizational chart of a company shows the hierarchy of staff in the company. It is a graphical representation that shows the different levels of management and the relationships between them. The chart shows the chain of command, which indicates who reports to whom and who is responsible for which tasks. The chart can also show the different departments within the company and how they are related. The purpose of the organizational chart is to help employees understand the structure of the company and their roles and responsibilities within it.

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Occupation

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Question 34 Report

The principle which prevents an insured from receiving a claim that is more than the value of the loss, if the property is insured by more than one company is.

indemnity

contribution

proximate cause

uberrimae fidei

Answer Details

The principle that prevents an insured from receiving a claim that is more than the value of the loss if the property is insured by more than one company is called "contribution". Essentially, this principle ensures that the insured is not overcompensated for their loss by multiple insurers. Under this principle, each insurer will pay a proportionate amount of the loss based on the value of the policy they issued compared to the total value of all policies covering the property. For example, if a property is insured for $100,000 by two different insurance companies, and it sustains a loss of $50,000, each company will pay $25,000 towards the loss.

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Legal Aspect Of Business

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Question 35 Report

An undertaking to repair a customer's vehicle for a certain period after it has been sold is

After-sales service

marketing mix

market segmentation

sales promotion

Answer Details

After-sales service is the correct answer. After-sales service refers to the support provided to customers after they have purchased a product or service. This includes services such as repair, maintenance, and technical support. In this case, the undertaking to repair a customer's vehicle for a certain period after it has been sold is an example of after-sales service. The purpose of after-sales service is to ensure customer satisfaction, build customer loyalty, and increase the likelihood of repeat business.

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Occupation

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Question 36 Report

An internal source of finance to an entrepreneur is

trade credit

retained earning

overdraft

debenture

Answer Details

An internal source of finance to an entrepreneur is "retained earnings." Retained earnings are the profits earned by a company that are kept within the company instead of being distributed as dividends to shareholders. These retained earnings can be used by the company to finance its operations, invest in new projects or ventures, or pay off debt. Therefore, it is an internal source of finance as the entrepreneur does not need to seek external sources like banks or other financial institutions to get funds.

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Financing Business

Business Capital And Profits

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Question 37 Report

The quality of money which makes it possible to buy goods in small quantities is

portability

homogeneity

divisibility

durability

Answer Details

The quality of money which makes it possible to buy goods in small quantities is divisibility. Divisibility refers to the ability of money to be divided into smaller units and still retain its value. This allows for transactions to occur for small amounts, as well as for larger amounts. For example, a dollar can be divided into 100 cents, making it possible to buy goods that cost less than a dollar. This quality is important for the convenience of trade and commerce, as it enables the exchange of goods and services for any desired amount of money.

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Money

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Question 38 Report

Which of the following documents would a shareholder inspect to know his voting rights?

Articles of Association

Certificate of Incorporation

Certificate of Trading

Memorandum of Association

Answer Details

A shareholder would inspect the Articles of Association to know his voting rights. The Articles of Association outlines the rules and regulations governing the internal management of a company, including the voting rights of shareholders. The document specifies the number of votes each shareholder is entitled to, the conditions under which votes can be cast, and the procedures for voting. The other options, such as the Certificate of Incorporation, Certificate of Trading, and Memorandum of Association, do not provide information about the voting rights of shareholders.

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Legal Aspects Of Business

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Question 39 Report

Consumers could be encouraged to purchase a company's products through

research

planning

distribution

Answer Details

Consumers could be encouraged to purchase a company's products through advertisement. Advertisement is a form of marketing communication that is used to persuade and encourage consumers to buy a product or service. It involves creating awareness and promoting the features and benefits of a product or service to a target audience through various media channels such as television, radio, newspapers, magazines, social media, and billboards. Effective advertisement campaigns are designed to create a favorable impression of a company's product in the minds of consumers, ultimately leading to increased sales and revenue for the company.

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Elements Of Marketing

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Question 40 Report

A retail store that sells a single product from a particular manufacturer is a

tied shop

shopping mall

hypermarket

chain store

Purchase And Sale Of Goods

Commerce

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Question 41 Report

A document that instructs an agent to buy goods from a named firm is

proforma invoice

open indent

consular invoice

closed indent

Answer Details

A document that instructs an agent to buy goods from a named firm is called a "closed indent". It is a type of purchase order that specifies the details of the goods to be purchased, such as the quantity, price, and delivery date. The indent is "closed" because it is issued to a specific supplier or firm, as opposed to an "open indent" which is issued to multiple suppliers for competitive bidding. The closed indent is commonly used in international trade to facilitate the purchase of goods from a foreign supplier through a local agent or middleman.

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Purchase And Sale Of Goods

Commerce

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Question 42 Report

One of the aims of ECOWAS is to

promote commereialization policies

promote commereializati10n policies

discourage foreign investors

ensure production of quality goods

Introduction To Business Management

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Question 43 Report

An article used as a means of exchange in the early days of trade in West Africa was

Cedi

Cowrie

Dalasi

Naira

Answer Details

The article used as a means of exchange in the early days of trade in West Africa was Cowrie. Cowrie shells were used as a form of currency in many parts of Africa, including West Africa, due to their natural beauty, rarity, and durability. Cowrie shells were easy to transport, and their value was universally recognized, making them an ideal form of currency for use in trade. Cowries were used for trade in many parts of West Africa, including Ghana, Nigeria, and Gambia.

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Commerce

Production

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Question 44 Report

Sea vessels that do not operate on regular times and routes are

tramps

ocean liners

container ships

ferries

Transport, Tourism, Communication And Warehousing

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Question 45 Report

When a share with a nominal value of N50 is quoted at N70, it is being sold

cum div.

ex-div.

at a discount

at a premium

Answer Details

When a share with a nominal value of N50 is quoted at N70, it is being sold "at a premium". This means that the market value of the share is higher than its face value or nominal value. In other words, investors are willing to pay more than the actual value of the share because they expect the company's profits to increase, and the share price to rise further in the future. This is a common occurrence in the stock market, and it reflects the demand for the company's shares by investors.

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Stock Exchange

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Question 46 Report

Which of the following is not a right of a consumer?

Right to a fair hearing

Right to buy on credit

Right to obtain replacement

Right to a safe product

Answer Details

The right to buy on credit is not a right of a consumer. This is because credit is not a right but a privilege, which is extended to a consumer based on their creditworthiness. While consumers have the right to obtain credit if they meet the requirements, they do not have an inherent right to buy on credit. The other options listed are all rights of consumers. The right to a fair hearing ensures that consumers have a chance to express their views when there is a dispute. The right to obtain replacement guarantees that consumers can replace products that are faulty or defective. The right to a safe product ensures that products meet safety standards and do not pose a risk to consumers.

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Purchase And Sale Of Goods

Commerce

Occupation

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Question 47 Report

Which of the following is not a function ol management?

Controlling

Delegating

Directing

Organizing

Elements Of Business Management

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Question 48 Report

The service of a retailer is part of production because it

creates a link between consumers and producers

enables finished goods to reach consumers

increases consumers' standard of living

is a commercial occupation

Answer Details

The service of a retailer is considered a part of production because it plays a critical role in making finished goods available to consumers. Retailers provide the necessary link between producers and consumers by purchasing goods from manufacturers and making them available for purchase by end-users. Without retailers, finished goods would not be able to reach the intended consumers, which would disrupt the entire production process. Furthermore, retailers also help to increase consumers' standard of living by providing them with access to a wide variety of goods and services. Hence, the service of a retailer is an integral part of the production process.

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Production

Trade

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Question 49 Report

Payment made to a carrier for transportation of goods is

frights

fee

fare

duty

Answer Details

The correct term for the payment made to a carrier for transportation of goods is "freight". Freight refers to the charge or fee paid for the transportation of goods by land, sea, or air. The cost of the freight can depend on various factors, such as the distance to be covered, the weight of the goods, the mode of transportation, and any additional services required.

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Transport, Tourism, Communication And Warehousing

Finance And Financial Institutions

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Question 50 Report

Average stock is derived by adding

closing stock to purchases divided by 2

closing stock to opening stock

opening stock to closing stock divided by 2

opening stock to purchases

Answer Details

Average stock is a measure used in accounting to determine the average value of inventory held during a particular accounting period. It is calculated by adding the opening stock and closing stock of the accounting period and dividing the sum by 2. This gives the average stock held during the period. The formula for calculating average stock is: (Opening stock + Closing stock) ÷ 2. Therefore, the correct option is "opening stock to closing stock divided by 2".

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Stock Exchange

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