ISONYIN GRAMMAR SCHOOL SENIOR CLASS

2nd TERM SCHOOL EXAMINATION

2023/2024 ACADEMIC SESSION
SUBJECT: Commerce CLASS: SS 3 TIME: 2 HRS
SECTION: A [OBJECTIVE]
INSTRUCTION: ANSWER ALL QUESTION IN THIS SECTION
1. Which of the following is not a function of commerce? A. advertising goods B. Creation of good C. Increasing profit made
D. Distribution of good.
2. Any activity that changes raw materials into consumer, or industrial goods is A. Constructive B. Assembling C. Extractive
D. manufacturing.
3. The divisions of production are A. industry, banking and services B. industry, manufacturing, and services C. industry,
commerce and services D. industry, transportation, and services.
4. Risks in business are borne by the A. consumer B. entrepreneur C. marketing manager D. personnel manager.
5. The main aim of credit and thrift societies is to A. settle disputes among members B. educate their members C. secure loans for
members D. encourage savings among members.
6. In which of the following business units are profits shared on the basis of membership patronage? A. public enterprise
B. partnership C. co-operative society D. public limited liability company
7. A business becomes a separate legal entity after it has A. started operation B. been incorporated C. Been insured D. been
accepted by the public.
8. The amalgamation of firms engaged in cotton processing and the manufacturing of textiles is A. horizontal integration B.
vertical integration C. lateral integration D. joint venture.
9. A private company's ability to raise capital is limited because A. its borrowing powers are limited B. membership does not
exceed 50 C. shares cannot be made public D. of limited collateral security.
10. An increase in the volume of sales is also an increase in ________ A. Profit B. Turnover C. Fixed assets D. Owner’s equity.
11. The working capital of a firm is calculated as A. current assets minus current liabilities B. current liabilities minus fixed assets
C. value of all assets D. value of issued capital.
12. Dividend is always expressed as a percentage of total A. earnings of the business B. value of shares owned C. working capital
D. volume of business.
13. Which of the following is a duty of the Employers Association? A. procuring raw materials at regular intervals B. establishing a
uniform wage scale C. negotiating with the government on sites for firms D. discharging workers when production is low.
14. A very effective way of resisting the producer's exploitation is to A. ban the producer B. Campaign against the company C.
form consumers' association D. form a trade union.
15. Which of the following makes sales possible without a sales attendant? A. telex machine B. fax machine company C. vending
machine D. Franking machine
16. Which of the following distinguishes supermarkets from other retail outlets? A. use of self-service B. Standard shop front C.
sale of food items and household goods D. provision of parking spaces and delivery services
17. Manufacturers sell directly to consumers when they A. want to make profit B. wish to eliminate all transport costs C. live far
away from them D. deal in perishable goods.
18. Which of the following is regarded as a document of title in foreign trade? A. consular invoice B. bill of lading C. bill of sight
D. certificate of origin
19. The most acceptable means of payment in foreign transaction is A. personal cheques B. central bank cheques C. irrevocable
letters of credit D. backdrafts.
20. Which of the following is not a function of the Ports Authority? A. controlling pollution in rivers Providing parking space for
vehicles C. providing storage and warehousing facilities at the docks D. providing facilities for water traffic movement.
21. Terms of trade refers to A. agreement between two trading countries B. the difference between the value of imports and exports
C. the relationship between export and import prices D. all payments made to other countries and receipts from them.
22. The aid to trade responsible for the preservation of perishable items is A, warehousing C. transportation D. Advertising
23. Which of the following abbreviations permits the seller to correct any error in an invoice? A. F.O.R. B. C.I.F. C. E, & O.E
D. I.O.U
24. C & F as a price quotation in foreign trade means that the buyer A. is responsible for clearing and forwarding the goods B. Has
to pay for cost and freight C. pays for both the freight and insurance D. pays for insurance only
25. A bill of exchange is made more negotiable if it has been A. endorsed B. accepted C. honoured instantly D. given special
crossing.
26. The primary objective of insurance is to A. prevent accidents B. meet uncertainties in future C. give loan to businessmen
D. control the flow of cash.
27. Which of the following services is rendered by Central Bank? A. provision of brokerage services B. safe keeping of cash and
other valuables C. discounting bills of exchange D. issuing currency notes
28. Which of the following gives businessman the opportunity to buy share of public limited companies A. Insurance companies
B. Commercial banks C. Discount houses D. The stock exchanges.
29. The liquid assets of commercial banks are A. Treasury bills, bills of exchange and cash B. Cash, current account and other
money bearing assets C. Deposit account and cash D. Cash only.
30. The insurance policy which covers damages to the body of a ship is _____ A. Marine insurance B. Cargo insurance C. Ship
liability insurance D. hull insurance.
31. Which of the following central bank function inspires confidence in the banking system in case of emergency? A. Issuing of
currency B. Lender of last resort C. Banker’s bank D. Banker to government
32. Which of the following proves that important documents have reached their destination? A. Business reply services B.
Telegram business C. Recorded delivery services D. Express delivery services.
33. The main advantage of sea transport over air transports is _______ A. Capacity B. Safety C. Speed D. patronage.
34. The mode of transport that conveys good at low cost per unit is _______ A. Road B. Rail C. Pipeline D. Air
35. Any activity aimed at creating more market for a product is __________ A. Packaging B. Branding C. Promotion
D. Merchandising
36. Activities aimed at boosting the image of an organization are regarded as A. sales promotion B. public relations C. public
relations D. consumer protection.
37. When consumers are unaware of the quality of a product, the best advertising technique to use is A. Informative B. competitive
advertising C. direct advertising D. indirect advertising.
38. Which of the following is not an obstacle to the achievement of the objective of ECOWAS? A. Lack of capital B. Sabotage by
other organizations C. Lack of commitment of member state D. Slow pace of development of member countries
39. Musa entered into a contract to supply two cows to Aro. Before the agreed date of supply and without the knowledge of the two
parties, thieves stole the cows. This is an example of termination of contract by A. default B. Breach C. Frustration
D. performance.
40. Abuse of monopoly power by industrialists could lead to A. Privatization B. Commercialization C. Nationalization
D. indigenization.
41. Which of the following is an objective of indigenization policy? To A. prevent all foreign interference in business B. Encourage
local participation in business C. prevent smuggling D. Encourage more production.
42. One of the objectives of ECOWAS is to A. Promote indigenization policy B. Ensure that quality good are produced C. Promote
trade within the region D. Discourage foreign investors.
43. The amount of insurance premium to be paid depends on the ____ A. Supply and demand of a particular company’s service
B. Extent of the possible loss and the frequency of risk C. Number of insurance companies in a place D. Amount of profit to be
made by the insurer.
44. Which of the following is the main task of the marketing manager whose company has adopted the marketing concept? A.
Identify and satisfy customer needs B. Maintain the company’s share of the market C. Recruit more salesmen D. Make
maximum profit.
45. The money market is the A. Market for long-term loans B. Market for short- term loans C. Market for government securities
D. Banking Hall of commercial banks.
46. The choice of medium used in advertising is not determined by the A. cost of using a particular medium B. age group to
which the medium appeals C. nationality of people using the medium D. number of people reached by the medium
47. If a country wishes to discourage imports, it A. removes quotas B. encourages free trade C. imposes tariffs D. subsidizes
exports
48. Which of the following sources of capital to a business requires mortgaging a specific asset? A. Overdraft B. Ordinary shares
C. Fixed debenture D. Trade credit
49. Which of the following interest holders are settled first in case of a company's liquidation? A. board of directors B. Debenture
holders C. ordinary shareholders D. preference shareholders
50. The West African Clearing House (WACH) was established to A. dredge the rivers in navigation B. expand the volume of
traffic within member countries C. coordinate the efforts to member state to tap their nature resource D. Promote the use of
currencies of all members for inter regional trade.
SECTION B

Answer four question only.

1a. What is a capital market?

b. State eight (8) reason why a bank may dishonour a cheque
2. List and explain five problems associate with international trade
3. Explain the following
a. Prospectus
b. Share certificate
c. Underwriting of share
d. Ordinary share
e. Dividend warrants
4. State five effects of hire purchase on each of the following
a. Buyer
b. Seller
5a. What is the difference between privatization and nationalization?
b. Explain four reason why a country may choose to privatize state – owned enterprises