JAMB Past Questions

JAMB Commerce 2002
Questions & Answers

40 questions · Correct answers highlighted · 40 with explanations

40 Total Questions
2002 Exam Year
40 With Explanations
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1
Question 1 of 40
JAMB · Commerce · 2002

The body that organizes and participates in local and foreign trade exhibitions is the

A. Ministry of Commerce and Tourism
B. Ministry of Finance
C. Chambers of Commerce
D. Export Promotion Council
Explanation

Chambers of Commerce promote trade by organizing exhibitions to connect businesses locally and internationally.

2
Question 2 of 40
JAMB · Commerce · 2002

The Continental West African Conference is a

A. group trading similar products
B. conference for West African unity
C. group of shipping lines on West African routes
D. trust with West African shareholders
Explanation

It coordinates shipping lines to streamline maritime trade along West African routes.

3
Question 3 of 40
JAMB · Commerce · 2002

The main function of thrift, credit, and loans co-operative societies is to

A. lend money to members
B. collect money from members
C. disburse money to members
D. raise investment finance
Explanation

These co-operatives provide loans to members using pooled savings.

4
Question 4 of 40
JAMB · Commerce · 2002

Management is described as

A. getting things done through people
B. implementing business decisions
C. the number of organizational levels
D. people in authority
Explanation

Management directs people to achieve organizational goals efficiently.

5
Question 5 of 40
JAMB · Commerce · 2002

A business enterprise can be ideally structured by

A. products, functions, or territories
B. personalities in the enterprise
C. management rulings
D. stockholder orders
Explanation

Structuring by products, functions, or territories enhances efficiency.

6
Question 6 of 40
JAMB · Commerce · 2002

Which sequence best fits a functional business structure?

A. People, control, finance, marketing
B. Material, marketing, production, ideas
C. Finance, marketing, production, product
D. Material, production, product, ideas
Explanation

Finance, marketing, production, and product reflect key functional areas in a business.

7
Question 7 of 40
JAMB · Commerce · 2002

Free services provided by a business to its environment are

A. civic responsibility
B. philanthropic consideration
C. social responsibility
D. political consideration
Explanation

Social responsibility involves community benefits to enhance public image.

8
Question 8 of 40
JAMB · Commerce · 2002

Inventory control is an aspect of

A. operation research
B. materials management
C. organizing functions
D. span of control
Explanation

Inventory control manages stock, a key part of materials management.

9
Question 9 of 40
JAMB · Commerce · 2002

Reduced import duties among ECOWAS countries are

A. preference duties
B. preferential treatment
C. preferential tariffs
D. preferential excise
Explanation

Preferential tariffs lower trade barriers within ECOWAS.

10
Question 10 of 40
JAMB · Commerce · 2002

In a common market, member countries agree to

A. ban non-members’ products
B. wage war on outsiders
C. set common external barriers
D. negotiate favorable trade terms
Explanation

Common markets set external tariffs to protect internal trade.

11
Question 11 of 40
JAMB · Commerce · 2002

A stock release form is a

A. goods received note
B. materials release note
C. store issues voucher
D. materials requisition note
Explanation

A store issues voucher authorizes inventory release.

12
Question 12 of 40
JAMB · Commerce · 2002

Marine losses are categorized as

A. particular and average loss
B. actual and general loss
C. total and partial loss
D. voyage and time policy loss
Explanation

Marine losses are total (complete) or partial (partial damage).

13
Question 13 of 40
JAMB · Commerce · 2002

The principle of indemnity in insurance means the insured receives

A. half the loss
B. double the loss
C. premiums paid
D. loss compensation
Explanation

Indemnity compensates the actual loss to restore pre-loss position.

14
Question 14 of 40
JAMB · Commerce · 2002

The key difference between community banks and people’s banks is

A. government ownership
B. rural vs. urban focus
C. service vs. profit orientation
D. loan recipient scope
Explanation

Community banks focus on rural areas; people’s banks serve both rural and urban.

15
Question 15 of 40
JAMB · Commerce · 2002

A distressed bank’s assets and liabilities are managed by

A. IBRD
B. NIDB
C. NDIC
D. NBCI
Explanation

NDIC manages distressed banks to protect depositors.

16
Question 16 of 40
JAMB · Commerce · 2002

The stock exchange deals with

A. warrants, currency, money orders
B. cheques, drafts, promissory notes
C. bonds, treasury bills, debentures
D. stocks, shares, bonds, warrants
Explanation

Stock exchanges trade stocks, shares, bonds, and warrants.

17
Question 17 of 40
JAMB · Commerce · 2002

A private limited liability company must have

A. unlimited shareholders, public trading
B. minimum seven shareholders, restricted transfers
C. maximum fifty shareholders, restricted transfers
D. no shareholder limit, public trading
Explanation

Private companies cap at 50 shareholders with restricted share transfers.

18
Question 18 of 40
JAMB · Commerce · 2002

A key marketing principle is that firms should be

A. staff-trained
B. consumer-oriented
C. advertising-focused
D. outlet-based
Explanation

Consumer orientation meets customer needs effectively.

19
Question 19 of 40
JAMB · Commerce · 2002

Product X, introduced at N40.00 (cost N30.90) while competitors sell at N50.00, uses

A. market skimming
B. market penetration
C. product line promotion
D. above-market pricing
Explanation

Low pricing (N40.00 vs. N50.00) aims for market penetration.

20
Question 20 of 40
JAMB · Commerce · 2002

Oral presentation to prospective buyers for sales is

A. branding
B. personal selling
C. packaging
D. publicity
Explanation

Personal selling involves direct buyer persuasion.

21
Question 21 of 40
JAMB · Commerce · 2002

Activities promoting an organization’s image are

A. advertising
B. sales promotion
C. public relations
D. business correspondence
Explanation

Public relations enhances organizational reputation.

22
Question 22 of 40
JAMB · Commerce · 2002

An agent is rewarded by the principal through

A. remuneration and indemnity
B. commission and salary
C. business concessions
D. business links
Explanation

Agents earn commissions or salaries for services.

23
Question 23 of 40
JAMB · Commerce · 2002

A contract for tomato sales terminated due to theft is an example of

A. breach
B. performance
C. fault
D. frustration
Explanation

Frustration occurs when unforeseen events prevent performance.

24
Question 24 of 40
JAMB · Commerce · 2002

A minor cannot enter a valid contract because he is

A. unable to pay
B. too young to understand law
C. young in the law’s eyes
D. unable to write contracts
Explanation

Minors lack legal capacity except for necessities.

25
Question 25 of 40
JAMB · Commerce · 2002

A cheated person in a business deal can seek remedy

A. even if verbal and large
B. only if sole proprietorship
C. regardless of business type
D. only if documented
Explanation

Verbal agreements are enforceable with evidence.

26
Question 26 of 40
JAMB · Commerce · 2002

The most essential product element is

A. price
B. utility
C. design
D. colour
Explanation

Utility satisfies consumer needs, defining a product’s value.

27
Question 27 of 40
JAMB · Commerce · 2002

A disadvantage of nationalization is

A. poor economic planning
B. non-market service costs
C. resource nationalization costs
D. retarded local skills
Explanation

Nationalization may hinder local skill development.

28
Question 28 of 40
JAMB · Commerce · 2002

A consumer protection agency is the

A. Nigerian Bar Association
B. Nigerian Medical Association
C. Federal Environmental Protection Agency
D. Manufacturers Association of Nigeria
Explanation

FEPA ensures safe products via environmental standards.

29
Question 29 of 40
JAMB · Commerce · 2002

The least contributor to Nigeria’s commercial evolution was

A. banks
B. transportation
C. traders’ unions
D. currencies
Explanation

Traders’ unions had less impact than banks, transport, or currencies.

30
Question 30 of 40
JAMB · Commerce · 2002

A critical factor in choosing an occupation is

A. training
B. skill
C. aptitude
D. interest
Explanation

Aptitude determines suitability for an occupation.

31
Question 31 of 40
JAMB · Commerce · 2002

Direct industries are also called

A. primary industries
B. servicing industries
C. minor industries
D. indirect industries
Explanation

Primary industries extract raw materials directly.

32
Question 32 of 40
JAMB · Commerce · 2002

The primary objective of a business is to

A. meet owners’ needs
B. make returns
C. serve citizens
D. improve proprietors’ living
Explanation

Profit generation ensures business sustainability.

33
Question 33 of 40
JAMB · Commerce · 2002

Absolute monopoly services are best provided by

A. private companies
B. limited liability companies
C. public companies
D. public enterprises
Explanation

Public enterprises ensure accessible monopoly services.

34
Question 34 of 40
JAMB · Commerce · 2002

A warehouse authority’s document acknowledging goods deposit is a

A. bill of lading
B. warehouse warrant
C. consignment note
D. certificate of origin
Explanation

A warehouse warrant confirms goods storage.

35
Question 35 of 40
JAMB · Commerce · 2002

A feature of a cooperative society is

A. unlimited member liability
B. profit based on patronage
C. shareholder-only membership
D. external management
Explanation

Profits are distributed by member patronage.

36
Question 36 of 40
JAMB · Commerce · 2002

Converting a cheque to cash immediately is

A. clearing
B. discounting
C. cashing
D. encashment
Explanation

Cashing converts a cheque to cash instantly.

37
Question 37 of 40
JAMB · Commerce · 2002

A letter of credit in international trade

A. confirms importer creditworthiness
B. guarantees exporter payment
C. insures goods against loss
D. loans to the importer
Explanation

It ensures exporter payment upon meeting terms.

38
Question 38 of 40
JAMB · Commerce · 2002

The main purpose of a business plan is to

A. secure funding and guide operations
B. advertise to customers
C. distribute profits
D. comply with regulations
Explanation

A business plan secures funding and guides operations.

39
Question 39 of 40
JAMB · Commerce · 2002

A function of the Central Bank of Nigeria is

A. accepting public deposits
B. issuing currency, regulating money
C. providing consumer loans
D. managing commercial accounts
Explanation

It issues currency and regulates money supply.

40
Question 40 of 40
JAMB · Commerce · 2002

The primary role of advertising is to

A. increase production costs
B. inform and persuade consumers
C. distribute products
D. regulate market prices
Explanation

Advertising informs and persuades consumers to buy products.

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