JAMB Past Questions

JAMB Commerce 2021
Questions & Answers

40 questions · Correct answers highlighted · 40 with explanations

40 Total Questions
2021 Exam Year
40 With Explanations
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1
Question 1 of 40
JAMB · Commerce · 2021

Tolu purchased goods from Yemisi and is to pay custom duties before collection. The goods are likely to be collected from

A. a manufacturer’s warehouse
B. a bonded warehouse
C. an importer’s warehouse
D. a wholesaler’s warehouse
Explanation

A bonded warehouse stores imported goods pending customs duty payment, allowing buyers like Tolu to clear duties before collection.

2
Question 2 of 40
JAMB · Commerce · 2021

The three major functional units which the modern computer has are

A. the input, processor, and output units
B. the black box, output, and input units
C. BASIC, COBOL, and output units
D. BASIC, the processor, and PASCAL
Explanation

A modern computer consists of input units (e.g., keyboard), a processor (CPU), and output units (e.g., monitor), handling data entry, processing, and display.

3
Question 3 of 40
JAMB · Commerce · 2021

In international trade, the capital account includes which of the following? I. Foreign investment, II. Long-term lending, III. Short-term lending, IV. Foreign exchange reserve, V. Short-term borrowing

A. I, II, and III
B. I, II, and V
C. II and V
D. I and II
Explanation

The capital account records capital flows like foreign investment (I), long-term lending (II), and short-term borrowing (V). Foreign exchange reserves and short-term lending typically fall under other accounts.

4
Question 4 of 40
JAMB · Commerce · 2021

The elimination of faults in a computer program is called

A. console
B. debug
C. dump
D. loop
Explanation

Debugging is the process of identifying and fixing errors (bugs) in a computer program to ensure it operates correctly.

5
Question 5 of 40
JAMB · Commerce · 2021

Aliyu bought 100 shares at the stock market through a stockbroker. He was told the price of each share was N3 cum div. This means that Aliyu

A. is entitled to a cumulative dividend on the shares
B. is entitled to the next dividend accruing from the shares
C. will not be entitled to the next dividend due to the shares
D. still owes N3 on the shares which will be subtracted from the dividends
Explanation

‘Cum div’ means the share price includes the right to the next dividend, so Aliyu will receive it upon purchase.

6
Question 6 of 40
JAMB · Commerce · 2021

The forum for the selling and buying of securities of small and medium companies is called

A. Second Tier Foreign Exchange Market
B. Foreign Exchange Market
C. Securities and Exchange Commission
D. Second Tier Security Market
Explanation

The Second Tier Security Market facilitates trading of securities for small and medium-sized companies, aiding their capital access.

7
Question 7 of 40
JAMB · Commerce · 2021

A wholesale dealer in securities is known as

A. a stockbroker
B. speculator
C. jobber
D. stag
Explanation

A jobber is a professional dealer who buys and sells securities in bulk, acting as a market maker on the stock exchange.

8
Question 8 of 40
JAMB · Commerce · 2021

Modern business philosophy emphasizes

A. quality products
B. customer satisfaction
C. sales volume
D. public relations
Explanation

Modern business philosophy prioritizes customer satisfaction, focusing on meeting customer needs to ensure loyalty and long-term success.

9
Question 9 of 40
JAMB · Commerce · 2021

The main role of advertising is to

A. convince prospective buyers to buy
B. show the actual shape, form, and colour of the products
C. inform people where to obtain goods and services
D. capture the attention of people
Explanation

Advertising primarily aims to persuade prospective buyers to purchase products or services through compelling and targeted messages.

10
Question 10 of 40
JAMB · Commerce · 2021

The concept of limiting the types, sizes, and other characteristics of a product line without sacrificing utility or durability is called

A. simplification
B. standardization
C. specialization
D. satisfying
Explanation

Simplification reduces product variety while maintaining utility and durability, streamlining production and inventory management.

11
Question 11 of 40
JAMB · Commerce · 2021

The focal point of all marketing efforts is the

A. customer
B. competition
C. product
D. market share
Explanation

The customer is the core of marketing efforts, as satisfying their needs drives effective strategies and business success.

12
Question 12 of 40
JAMB · Commerce · 2021

Aligun displays goods on shelves in his supermarket. This is an example of

A. invitation to treat
B. offer to purchase
C. offer to sell
D. invitation to sell
Explanation

Displaying goods on shelves is an invitation to treat, prompting customers to make an offer to buy, which the seller can accept or reject.

13
Question 13 of 40
JAMB · Commerce · 2021

The process of bringing a company under exclusive ownership and control is known as

A. nationalization
B. commercialization
C. indigenization
D. privatization
Explanation

Nationalization involves the government taking full ownership and control of a company, often to serve public interests.

14
Question 14 of 40
JAMB · Commerce · 2021

Quoting as the agent of P, Q lawfully and reasonably incurs the amount of N50 as expenses. If Q comes to P for payment, this instance of P’s duty is to

A. repay Q
B. indemnify Q
C. maximize Q
D. settle Q
Explanation

P has a duty to indemnify Q, compensating for reasonable expenses incurred while acting as P’s agent, as per agency law.

15
Question 15 of 40
JAMB · Commerce · 2021

In a hire purchase agreement between Argungu Ltd and Maikudi, Argungu Ltd inserted a provision that it can enter Maikudi’s premises at any time and remove the hired vehicle for any breach. This provision is

A. lawful to both
B. unlawful to both
C. beneficial to both
D. detrimental to both
Explanation

The provision is unlawful as it violates Maikudi’s privacy and property rights, rendering it unenforceable under contract law.

16
Question 16 of 40
JAMB · Commerce · 2021

In every simple contract, the price which was paid to purchase a promise is called

A. offer
B. acceptance
C. consideration
D. representation
Explanation

Consideration is the value or price exchanged for a promise in a contract, making it legally binding and enforceable.

17
Question 17 of 40
JAMB · Commerce · 2021

One major disadvantage of a cartel is that it

A. maximizes productive efficiency
B. reduces competition
C. maximizes profits from operation
D. eliminates waste
Explanation

A cartel reduces competition by colluding to control prices and output, leading to higher prices and inefficiencies for consumers.

18
Question 18 of 40
JAMB · Commerce · 2021

Staff position in an organization borders on

A. authority
B. advice
C. responsibility
D. control
Explanation

Staff positions provide advisory and support roles to line managers, lacking direct authority over operational decisions.

19
Question 19 of 40
JAMB · Commerce · 2021

The line function in a typical manufacturing enterprise is normally performed by the

A. public relations department
B. estate or properties department
C. marketing department
D. security department
Explanation

The marketing department performs line functions, directly contributing to core activities like sales and promotion in a manufacturing firm.

20
Question 20 of 40
JAMB · Commerce · 2021

Which of the following are basic requirements as business resources?

A. Men, machines, and markets
B. Men, materials, and money
C. Machines, markets, and money
D. Materials, markets, and management
Explanation

The basic business resources, known as the 4Ms, include men (human resources), materials, money, and machines, essential for operations.

21
Question 21 of 40
JAMB · Commerce · 2021

Under what function of management would the motivation of employees fall?

A. Staffing
B. Organizing
C. Controlling
D. Directing
Explanation

Directing involves leading, motivating, and guiding employees to achieve organizational goals, making it the function for motivation.

22
Question 22 of 40
JAMB · Commerce · 2021

The main thrust of government policy in the evolving good business environment in Nigeria is the need to

A. attract local and foreign investors
B. for more export commodities
C. for consumer-oriented products
D. to have viable local markets
Explanation

Nigerian government policies focus on attracting local and foreign investors to stimulate economic growth and improve the business environment.

23
Question 23 of 40
JAMB · Commerce · 2021

The business environment includes which of the following components?

A. Economic, social, and political factors
B. Production, marketing, and distribution
C. Finance, operations, and logistics
D. Planning, organizing, and controlling
Explanation

The business environment comprises external factors like economic, social, and political conditions that impact business operations.

24
Question 24 of 40
JAMB · Commerce · 2021

When a business enterprise provides free service to its environment, the service is said to be a

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

Providing free services to the community is an act of social responsibility, contributing to societal welfare beyond profit motives.

25
Question 25 of 40
JAMB · Commerce · 2021

Inventory control is an aspect of

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

Inventory control is a key component of materials management, ensuring efficient tracking, storage, and use of goods.

26
Question 26 of 40
JAMB · Commerce · 2021

The reduction of import duties among the member countries of ECOWAS is an example of

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

Preferential tariffs involve reduced import duties among ECOWAS members to promote regional trade and economic integration.

27
Question 27 of 40
JAMB · Commerce · 2021

In a common market, member countries agree basically to

A. harmonize tariffs on other countries’ products
B. eliminate barriers against other countries
C. erect common barriers against countries outside the market
D. negotiate with countries outside the market for favorable terms of trade
Explanation

A common market establishes free trade among members and imposes common external tariffs on non-members to protect the regional market.

28
Question 28 of 40
JAMB · Commerce · 2021

Which of the following group of countries are members of the Niger Basin Commission?

A. The Republic of Guinea, Burkina Faso, and Nigeria
B. Ghana, Liberia, and the Republic of Benin
C. Mali, Liberia, and Nigeria
D. Burkina Faso and Chad
Explanation

The Niger Basin Commission includes countries like Nigeria, Burkina Faso, and Guinea, which share the Niger River Basin.

29
Question 29 of 40
JAMB · Commerce · 2021

The desired monetary integration within ECOWAS sub-region has the overriding benefit of

A. improved exchange
B. enhanced trade
C. enhanced relations
D. improved transportation
Explanation

Monetary integration in ECOWAS reduces currency barriers, facilitating enhanced trade among member states by simplifying transactions.

30
Question 30 of 40
JAMB · Commerce · 2021

A document that confirms ownership of goods stored in a warehouse is known as

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

A warehouse warrant confirms ownership of stored goods, often used as collateral or proof of ownership in trade.

31
Question 31 of 40
JAMB · Commerce · 2021

The process of dividing a market into distinct groups with similar needs is called

A. market penetration
B. market segmentation
C. market analysis
D. market differentiation
Explanation

Market segmentation divides a market into groups with similar needs or characteristics to tailor marketing strategies effectively.

32
Question 32 of 40
JAMB · Commerce · 2021

A letter of credit in international trade is used to

A. insure goods against loss during shipment
B. provide a loan to the importer
C. guarantee payment to the exporter upon fulfilling terms
D. confirm the creditworthiness of the importer
Explanation

A letter of credit ensures the exporter receives payment from the importer’s bank once trade terms are met, reducing payment risks.

33
Question 33 of 40
JAMB · Commerce · 2021

The primary function of the Nigerian Deposit Insurance Corporation (NDIC) is to

A. provide loans to commercial banks
B. regulate the money supply
C. insure bank deposits against bank failure
D. manage foreign exchange reserves
Explanation

The NDIC insures bank deposits, protecting depositors from losses due to bank failures, thus promoting financial stability.

34
Question 34 of 40
JAMB · Commerce · 2021

Which of the following is a feature of a cooperative society?

A. Unlimited liability for members
B. Profit distribution based on patronage
C. Restriction on membership to shareholders
D. Management by external consultants
Explanation

In a cooperative society, profits are distributed based on members’ patronage or participation, reflecting their cooperative principles.

35
Question 35 of 40
JAMB · Commerce · 2021

The document that specifies the maximum amount of capital a company can raise is the

A. articles of association
B. prospectus
C. memorandum of association
D. certificate of incorporation
Explanation

The memorandum of association specifies the authorized share capital, the maximum amount a company can raise through shares.

36
Question 36 of 40
JAMB · Commerce · 2021

The process of converting a cheque into cash immediately is known as

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

Cashing a cheque involves converting it into cash immediately at a bank, typically for the account holder or authorized recipient.

37
Question 37 of 40
JAMB · Commerce · 2021

A public limited company raises capital primarily through

A. bank overdrafts
B. the capital market
C. the money market
D. private loans
Explanation

Public limited companies raise long-term capital through the capital market by issuing shares or bonds to the public.

38
Question 38 of 40
JAMB · Commerce · 2021

The primary objective of a business plan is to

A. advertise the business to customers
B. secure funding and guide operations
C. distribute profits among shareholders
D. comply with government regulations
Explanation

A business plan outlines goals and strategies to secure funding from investors and provides a roadmap for operational success.

39
Question 39 of 40
JAMB · Commerce · 2021

Which of the following is a function of the Central Bank of Nigeria?

A. Accepting deposits from the public
B. Issuing currency and regulating money supply
C. Providing consumer loans
D. Managing commercial bank accounts
Explanation

The Central Bank of Nigeria issues currency and regulates the money supply to maintain economic stability and control inflation.

40
Question 40 of 40
JAMB · Commerce · 2021

The use of online platforms to buy and sell goods and services is known as

A. e-commerce
B. telemarketing
C. digital advertising
D. direct selling
Explanation

E-commerce involves using online platforms to conduct buying and selling of goods and services, facilitating global trade and convenience.

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