Commerce Objective And Theory Question Bank

This page will continuously be updated with Commerce Questions. Practice as many Commerce Questions as possible.

The definition of commerce means the buying and selling goods on a large scale or social relations. An example of commerce is trade between two countries.

Waec Commerce 2019 Objective Questions

1. A firm which turns timber into wooden office desks belongs to the

1. extractive industry
2. direct service industry
3. indirect service industry
4. constructive industry

 

2. E-commerce is an activity which involves

1. trading in products through the post office
2. trading in products through the internet
3. buying and selling of products through telegram messages
4. buying and selling of products through fax messages

 

3. Rent is the return on

1. a loan
2. labour
3. land
4. a share

 

4. A partner whose contribution to the partnership is his name and goodwill is

1. an active partner
2. a limited partner
3. a nominal partner
4. a sleeping partner

 

5. Computer manufacturers in an area could form a

1. producer association
2. thrift society
3. chamber commerce
4. consumer association

 

6. The problem of double coincidence of wants is that

1. it is hard to determine the exchange rate for goods
2. it does not encourage the purchase of large quantities and varieties
3. deferred payment is not possible because goods exchanged are not durable
4. one has to find someone who wants his surplus and also has what he wants

 

7. The type of business where management is separated from ownership is referred to as

1. sole proprietorship
2. public company
3. partnership
4. cooperative society

 

8. Where there is no deed of partnership, members share profit on

1. the basis of participation
2. the basis of shares held
3. patronage basis
4. equal basis

 

9. The factor of production that is fixed in nature is

1. land
2. labour
3. entrepreneurship
4. capital

 

10. A means of payment through the post office is

1. standing order
2. money order
3. debit card
4. credit card

 

11. A stock exchange broker is engaged in

1. construction occupation
2. commercial occupation
3. extractive occupation
4. manufacturing occupation

 

12. A group of companies formed to carry out an activity that is beyond the ability of any individual company is

1. a subsidiary
2. a merger
3. a consortium
4. an acquisition

 

13. The share capital of a company stated in the Memorandum of Association and approved by the registrar of companies is

1. working capital
2. paid-up capital
3. nominal capital 
4. called up capital

 

14. One aim of a trade association is to

1. liaise with other trade associations in other countries
2. organize trade fair and exhibitions
3. provide quality goods and services
4. promote commercial activities in their business

 

15. Retail outlets which sell from vehicles are called

1. supermarkets
2. mobile shops
3. departmental stores
4. chain stores

 

16. Cash in hand and at bank, plus debtors are components of

1. intangible assets
2. current assets
3. current liabilities
4. depleting assets

 

17. Goods sold under a distinctive trademark are

1. branded goods
2. unsought goods
3. perishable goods
4. public goods

 

18. A firm which imports goods with the view of re-exporting them is engaged in

1. bilateral trade
2. entrepot trade
3. multilateral trade
4. counter trade

 

19. A risk whose profitability of occurrence is impossible to estimate is

1. uninsurable risk
2. pure risk
3. particular risk
4. insurable risk

 

20. An instruction to a bank to make a regular payment to a third party on behalf of a customer is

1. standing order
2. money order
3. money transfer
4. credit transfer

 

21. An international trade practice where goods are exchanged for other goods is

1. entrepot trade
2. bilateral trade
3. barter trade
4. counter trade

 

22. The diagram above shows a

1. standing order
2. receipt
3. cheque
4. bill of exchange

 

23. ZYZ Bank of Commerce PLC is the

1. payee
2. endorser
3. drawer
4. drawee

 

24. Oki Williams is the

1. payee
2. endorser
3. drawer
4. drawee

 

25. A proportion of the total deposit that a commercial bank must keep as cash and convertible papers is

1. special deposit
2. liquidity ratio
3. interest rate
4. bank rate

 

26. The principle that applies when Greene and Sunwar Insurance companies jointly indemnified Fatou for the destruction of her storey building by fire is

1. contribution
2. insurable interest
3. proximate cause
4. subrogation

 

27. The charge paid by a speculator for non-settlement of his account within the specified period is

1. backwardation
2. brokerage
3. commission
4. contango

 

28. A cheque for which payment is refused due to insufficient fund is a

1. bearer cheque
2. crossed cheque
3. dishonoured cheque
4. stale cheque

 

29. The keyboard of a computer is classified as

1. an input device
2. a memory device
3. an output device
4. a storage device

 

30. A communication equipment which is stationed in space for sending signals is

1. data processor
2. internet
3. satellite
4. telex machine

 

31. One of the factors which determine the choice of transport for goods is the

1. cost of purchasing the mode of transport
2. maintenance cost of the mode of transport
3. number of users of the mode of transport
4. nature of the goods to be transported.

 

32. Which of the following activities increases demand for goods and services?

1. Advertising
2. Banking
3. Transportation
4. Warehousing

 

33. A diagram showing the positions of the structure of a company is

1. span of control
2. organizational chart
3. vertical integration
4. flow chart

 

34. Good customer service practise requires

1. charging high prices so as to make profit
2. hanging up customers phone calls when busy
3. patience towards ill-mannered customers
4. promoting hard-working employees

 

35. The elements of a contract are offer,

1. acceptance and performance
2. consideration and performance
3. legality and formality
4. acceptance and consideration

 

36. Which of the following types of advertising is aimed at taking away existing buyers from their suppliers?

1. negative
2. competitive
3. informative
4. Mass

 

37. The marketing concept emphasizes the need to

1. identify and satisfy customer wants
2. maximise foreign investment
3. maximise profit for the company
4. build a strong and solid brand

 

38. An agent whose authority, as conferred by the principal, has no limit is a

1. del credere agent
2. general agent
3. special agent
4. universal agent

 

39. A new offer of a contract that terminates the original offer is

1. a void contract
2. a counter offer
3. an invalid offer
4. quasi contract

 

40. An agreement in which Philip paid half the price of a car and accepted to pay the rest in instalment is

1. conditional sale contract
2. credit sale contract
3. hire purchase contract
4. haulage contract

 

41. Which of the following roles is performed by middle management in an organization?

1. Formulation of objectives and strategies
2. Review of master plans, programmes and budgets
3. Review and appraisal of operational results
4. Implementation of organizational plans and objectives

 

42. The management term which refers to the number of staff a superior officer can efficiently supervise is

1. delegation of authority
2. division of labour
3. unity of command
4. span of control

 

43. which of the following business units could be commercialized?

1. public corporation
2. cooperative society
3. private company
4. Sole proprietorship

 

44. The restructuring of a government enterprise with the intention of making it profit-oriented is

1. privatization
2. nationalization
3. commercialization
4. deregulation

 

45. The headquarters of the Mano River Union is in

1. Freetown
2. Monrovia
3. Conakry
4. Abidjan

 

46. A source of capital to a public company which attracts a fixed rate of interest is

1. an ordinary share
2. a subvention
3. a debenture
4. an overdraft

 

47. Which of the following is not an economic grouping in West Africa?

1. Lake chad Basin Commission
2. Economic community of west African states
3. European union
4. niger basin commission

 

48. A customer who wishes to withdraw an amount greater than the balance in his current account would apply for

1. a standing order
2. an overdraft
3. a loan
4. a credit transfer

 

49. The combination of business activities of Abbas Ltd and Denko Ltd to form one large company is

1. amalgamation
2. a consortium
3. an acquisition
4. a cartel

 

50. The difference between commercialization and privatization is that commercialized businesses

1.  are government-owned while privatized businesses are owned by individuals
2. are non-profit making ventures while privatized businesses are profit-oriented
3. can sell shares while privatized businesses cannot
4. employ more workers than privatized businesses.