The pivot on which the wheel of commerce rotates is
Trade, the exchange of goods and services, is the foundation of commerce, driving economic activities.
A distinguishing characteristic of labour is that it is
Labour is mobile, as workers can move between jobs, industries, or locations to meet demand.
Land as a factor of production does not vary in
Land is fixed in quantity; its total supply is limited and cannot be increased.
Which of the following services does a lawyer render?
A lawyer provides direct services, such as legal advice or representation, directly to clients.
The partner that only contributes part of the capital used in the formation and running of a business is known as
A dormant partner contributes capital but does not participate in managing the business.
One major advantage of a credit and thrift cooperative is that
Credit and thrift cooperatives promote regular saving, fostering financial discipline among members.
A form of ownership which exploits the strengths of one partner to remedy the weaknesses of the other is a
A joint venture combines partners’ strengths to address weaknesses, often for a specific project.
At the collapse of a business enterprise, the person appointed to dispose of the assets is called
A liquidator sells assets during liquidation to settle debts and close the business.
Entrusting the management of a company to the courts to enable the settlement of the company’s obligations is an indication of
Bankruptcy involves court oversight to manage assets and settle debts when a company is insolvent.
The financial instrument for borrowing in which collateral is usually more than the amount borrowed is
A mortgage bond secures a loan with collateral, often property, valued higher than the loan.
Awarding scholarships and sponsoring sports by a business organization are examples of
These actions reflect social responsibility, contributing to community welfare.
The difference between total current assets and total current liabilities of a business is known as
Working capital (current assets - current liabilities) measures a business’s short-term liquidity.
Using the balance sheet: Liabilities (N) - Capital 140, Opening capital 350, Add Net profit 80, Current liabilities 800; Assets (N) - Fixed 1000, Debtors 200, Bank 70, Cash 50, Total 1,370. What is the capital employed?
Capital employed = Total assets - Current liabilities = 1,370 - 800 = N570.
Using the balance sheet: Liabilities (N) - Capital 140, Opening capital 350, Add Net profit 80, Current liabilities 800; Assets (N) - Fixed 1000, Debtors 200, Bank 70, Cash 50, Total 1,370. What is the capital owned?
Capital owned = Opening capital + Net profit = 350 + 80 = N430.
One of the reasons why wholesaling must continue is that
Wholesalers bridge manufacturers and retailers, streamlining distribution.
A merchant wholesaler is best described as a
A general wholesaler buys in bulk, stores, and sells to retailers.
A proforma invoice is sent to inform a buyer about the
A proforma invoice provides a preliminary quote, detailing prices.
The balance of payments of countries is
The balance of payments records all financial transactions between countries over a period.
The major procedures in the purchase and sale of goods are enquiry
The process includes enquiry, quotation, order, and invoice.
Mr. Awala offers a trade discount of 5%, a quantity discount of 3% for purchases above 1,000 units, and a cash discount of 2/10 net 30. The selling price is N100 per unit. Mr. Bacus purchased 1,500 units on credit and paid within 10 days. What is the cash discount receivable by Mr. Bacus?
Cost = 1,500 × N100 = N150,000. Trade discount = 5% × N150,000 = N7,500. Quantity discount = 3% × N150,000 = N4,500. Net = N150,000 - N7,500 - N4,500 = N138,000. Cash discount = 2% × N138,000 = N2,760.
Bank Giro is a method of settling debt from a
Bank Giro allows customers to transfer funds to settle debts.
Warehousing is a productive function because it increases the
Warehousing adds time utility by storing goods until needed.
A factor necessary for siting a warehouse is nearness to
Proximity to consumers reduces transport costs and speeds delivery.
Pooling of risk in insurance means that
Premiums are pooled into a fund to pay for insured losses.
The major difference between insurance and assurance is that while insurance
Insurance indemnifies risks (e.g., property); assurance covers life events.
A documentary bill will normally be accompanied by
A documentary bill includes sales invoice, bill of lading, and insurance certificate.
The temporary working area of the central processing unit is called the
RAM is the CPU’s temporary workspace for data processing.
The significance of money to modern economic systems is that it
Money measures value and facilitates exchange in modern economies.
The Nigerian Stock Exchange publishes a daily official list that gives full information on the
The list provides updates on security prices and earnings.
The main factors that determine the value of a stock on the Stock Exchange are dividend and
Stock value depends on dividends and capital gains.
One of the main objectives of the second-tier securities market in Nigeria is to
The second-tier market helps smaller companies raise capital.
The activities aimed at finding out customers’ needs and satisfaction can be described as
Micro-marketing targets specific customer needs and preferences.
The most effective type of advertising for branded products is
Competitive advertising highlights a brand’s edge over rivals.
Companies I, II, III, and IV sell electronic videos. Company I: N14,000 with advice. Company II: N14,000 with free installation. Company III: N15,000 with credit at N15,500. Company IV: N15,000. Which are engaged in public relations activities?
Companies I (advice) and II (installation) build goodwill.
Companies I, II, III, and IV sell electronic videos. Company I: N14,000 with advice. Company II: N14,000 with free installation. Company III: N15,000 with credit at N15,500. Company IV: N15,000. Which offers after-sales services?
Company II offers after-sales service via free installation.
Musa rented a room to Adamu for N1,500, with N1,000 part payment. Adamu brought Audu and Jacob to stay. Audu and Jacob paid N500. Who are the parties to the contract?
Musa and Adamu agreed on the rental contract.
Musa rented a room to Adamu for N1,500, with N1,000 part payment. Adamu brought Audu and Jacob to stay. Audu and Jacob paid N500. Who is the offeree?
Adamu, the tenant, is the offeree accepting Musa’s offer.
The maximum number of shareholders in a public liability company is
Public limited companies have unlimited shareholders.
One way by which government reduces the repatriation of capital is through
Indigenization promotes local ownership, limiting capital repatriation.
One of the major functions of a chamber of commerce is to
Chambers promote and protect trade and industry.
Now practice in exam mode
You've studied the answers — now test yourself under real exam conditions with the timer running.
Start JAMB Commerce 2007 Quiz