JAMB Past Questions

JAMB Commerce 2023
Questions & Answers

40 questions · Correct answers highlighted · 40 with explanations

40 Total Questions
2023 Exam Year
40 With Explanations
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1
Question 1 of 40
JAMB · Commerce · 2023

The most important factor that delayed the development of commerce in Nigeria was

A. inefficient means of communication
B. few entrepreneurs
C. unavailability of infrastructural facilities
D. few developed markets
Explanation

Lack of infrastructure like roads and ports hindered the movement of goods, significantly delaying commerce in Nigeria, more than communication or markets.

2
Question 2 of 40
JAMB · Commerce · 2023

Secondary production involves changing the

A. shape of raw materials through construction
B. physical form of raw materials into finished goods
C. utility of raw materials by engineering
D. nature of raw materials through manufacturing
Explanation

Secondary production transforms raw materials into finished goods (e.g., timber to furniture), altering their physical form for consumer use.

3
Question 3 of 40
JAMB · Commerce · 2023

The major responsibility of an entrepreneur is

A. employing all factors of production
B. determining the proportion of what to produce
C. planning and organizing all business activities
D. directing and controlling business affairs
Explanation

Entrepreneurs primarily plan and organize business activities, coordinating resources and strategies to ensure success, beyond just employing factors or directing.

4
Question 4 of 40
JAMB · Commerce · 2023

The scope of commerce best includes

A. all commercial exchanges and manufacturing
B. buying, selling, and construction
C. occupational exchanges in industries
D. buying, selling, and resource extraction
Explanation

Commerce encompasses all activities facilitating exchange, including trade and supporting industries like manufacturing, not limited to construction or extraction.

5
Question 5 of 40
JAMB · Commerce · 2023

Capital as a factor of production is used as

A. money regarded as assets
B. goods useful in business
C. input for further production
D. services providing satisfaction
Explanation

Capital (e.g., machinery) is an input used to produce goods and services, facilitating further production, distinct from money or services.

6
Question 6 of 40
JAMB · Commerce · 2023

The agency overseeing privatization and commercialization in Nigeria is

A. Securities and Exchange Commission
B. Technical Committee on Privatization
C. Nigeria Stock Exchange
D. Bureau of Public Enterprises
Explanation

The Bureau of Public Enterprises manages Nigeria’s privatization and commercialization, ensuring efficient transitions of public enterprises.

7
Question 7 of 40
JAMB · Commerce · 2023

Okeze contracted to sell TV sets to Ojo, but the sets were stolen in transit. This contract may be terminated due to

A. breach of warranty
B. frustration
C. fraudulence
D. breach of contract
Explanation

The contract is frustrated as the unforeseen theft makes fulfillment impossible without fault, not due to breach or fraud.

8
Question 8 of 40
JAMB · Commerce · 2023

Which country is not a member of the Lake Chad Basin Commission?

A. Nigeria
B. Benin
C. Chad
D. Cameroon
Explanation

The Lake Chad Basin Commission includes Nigeria, Chad, Cameroon, and Niger, but Benin is not a member, as it’s outside the region.

9
Question 9 of 40
JAMB · Commerce · 2023

A core investor in Nigeria’s privatization process is one who

A. can buy most enterprise shares
B. is at the enterprise’s core
C. can mobilize foreign currency
D. has technical know-how
Explanation

A core investor has technical expertise to manage and improve privatized enterprises, beyond just financial capacity.

10
Question 10 of 40
JAMB · Commerce · 2023

The agency ensuring products meet government quality standards in Nigeria is

A. Standards Organisation of Nigeria
B. Nigeria Consumers Association
C. Manufacturers Association of Nigeria
D. Nigeria Chamber of Commerce
Explanation

The Standards Organisation of Nigeria enforces quality standards, ensuring products comply with government specifications.

11
Question 11 of 40
JAMB · Commerce · 2023

The most important factor influencing industrial location in Nigeria is

A. proximity to raw materials
B. availability of labour
C. access to markets
D. government policy
Explanation

Proximity to raw materials reduces costs and ensures supply, making it the primary factor for industrial location in Nigeria.

12
Question 12 of 40
JAMB · Commerce · 2023

The aim of commercializing public enterprises is to

A. increase efficiency and self-sufficiency
B. advertise enterprise goods and services
C. increase public patronage
D. sell enterprises for profit
Explanation

Commercialization improves efficiency and financial self-sufficiency by adopting commercial principles, not just advertising or selling.

13
Question 13 of 40
JAMB · Commerce · 2023

An author’s exclusive right to their works is known as

A. author’s right
B. constitutional right
C. patent right
D. copyright
Explanation

Copyright protects an author’s exclusive rights to published and unpublished works, preventing unauthorized use.

14
Question 14 of 40
JAMB · Commerce · 2023

In a hire-purchase agreement, ownership passes to the buyer when

A. first installment is paid
B. final installment is paid
C. deposit is made
D. agreement is signed
Explanation

Ownership transfers after the final installment in a hire-purchase agreement, completing the payment terms.

15
Question 15 of 40
JAMB · Commerce · 2023

The machine used for sending telex messages is a

A. telegram
B. fax machine
C. dictaphone
D. teleprinter
Explanation

A teleprinter sends and receives telex messages for business communication, distinct from fax or telegram systems.

16
Question 16 of 40
JAMB · Commerce · 2023

The insurance principle linking actual loss to the insured risk is

A. risk-benefit
B. proximate cause
C. indemnity
D. subrogation
Explanation

Proximate cause ensures the loss is directly caused by the insured risk, determining insurer liability.

17
Question 17 of 40
JAMB · Commerce · 2023

The unit displaying processed data results is the

A. logic unit
B. display unit
C. control unit
D. output unit
Explanation

The output unit (e.g., monitor) displays processed data, unlike logic or control units which process or manage.

18
Question 18 of 40
JAMB · Commerce · 2023

The document informing an addressee of a registered parcel for collection is a

A. express label
B. counterfoil
C. telegram
D. slip
Explanation

A slip notifies the addressee of a parcel available for collection, ensuring secure delivery.

19
Question 19 of 40
JAMB · Commerce · 2023

The type of computer commonly found in offices is

A. laptop
B. desktop
C. hybrid computer
D. mainframe computer
Explanation

Desktop computers are prevalent in offices for their reliability and suitability for stationary tasks, unlike laptops or mainframes.

20
Question 20 of 40
JAMB · Commerce · 2023

The mode of transporting crude oil to ports for export is by

A. tanker
B. rail
C. road
D. pipeline
Explanation

Pipelines efficiently transport crude oil to ports, minimizing costs for large volumes, unlike tankers or rail.

21
Question 21 of 40
JAMB · Commerce · 2023

A temporary insurance document issued before a policy is a

A. certificate
B. cover note
C. proposal form
D. time policy
Explanation

A cover note provides temporary coverage before the full insurance policy is issued.

22
Question 22 of 40
JAMB · Commerce · 2023

Bulls and bears in the Stock Exchange help minimize

A. number of shares sold
B. price increases of securities
C. price fluctuations of securities
D. elasticity of security prices
Explanation

Bulls (buyers) and bears (sellers) enhance liquidity, stabilizing security prices by reducing extreme fluctuations.

23
Question 23 of 40
JAMB · Commerce · 2023

Debentures differ from shares in that

A. they are secured on company assets
B. they are secured on company ownership
C. they form part of business capital
D. rewards are paid from profit
Explanation

Debentures are loans secured on assets, unlike shares, which represent unsecured ownership.

24
Question 24 of 40
JAMB · Commerce · 2023

The Stock Exchange is a market for

A. long-term securities
B. all types of securities
C. short-term securities
D. medium-term securities
Explanation

The Stock Exchange trades long-term securities like stocks and bonds, not short or medium-term ones.

25
Question 25 of 40
JAMB · Commerce · 2023

An accepted bill of exchange can be discounted by the holder at

A. documentary credit
B. an accepting house
C. the Central Bank
D. any bank
Explanation

Any bank can discount an accepted bill of exchange, providing immediate cash before maturity.

26
Question 26 of 40
JAMB · Commerce · 2023

A retail cooperative society sells to non-members at

A. higher prices
B. lower prices
C. market prices
D. subsidized prices
Explanation

Cooperatives sell to non-members at market prices, reserving benefits like discounts for members.

27
Question 27 of 40
JAMB · Commerce · 2023

An important principle of a good organizational structure is

A. clarity of mission
B. span of control
C. adequacy of resources
D. ideal standard
Explanation

Span of control, the number of subordinates a manager oversees, ensures effective organizational structure and management.

28
Question 28 of 40
JAMB · Commerce · 2023

A company registered with the Corporate Affairs Commission but not listed on the Stock Exchange is a

A. public liability company
B. joint venture company
C. limited company
D. registered company
Explanation

A limited company is registered with the CAC but not listed, unlike public companies on the Stock Exchange.

29
Question 29 of 40
JAMB · Commerce · 2023

A contract for the sale of goods involves

A. producer, seller, and buyer
B. offering goods to customers
C. transfer of title for money
D. exchange of goods
Explanation

A sale contract transfers ownership (title) of goods for payment, defining the legal exchange between seller and buyer.

30
Question 30 of 40
JAMB · Commerce · 2023

The total share capital a company is allowed to issue is known as

A. called-up capital
B. paid-up capital
C. nominal capital
D. issued capital
Explanation

Nominal capital is the total authorized share capital a company can issue, per its memorandum of association.

31
Question 31 of 40
JAMB · Commerce · 2023

The process of mobilizing and maintaining workers for an organization is

A. staffing
B. selection
C. recruitment
D. employment
Explanation

Staffing involves recruiting, engaging, and retaining workers to meet organizational needs, encompassing more than just selection or recruitment.

32
Question 32 of 40
JAMB · Commerce · 2023

Which industry is typically located near its raw material source?

A. footwear
B. cement factory
C. textile industry
D. automobile assembly
Explanation

Cement factories are located near limestone quarries to minimize transport costs of heavy raw materials, unlike footwear or textiles.

33
Question 33 of 40
JAMB · Commerce · 2023

A key function of marketing is

A. encouraging research to meet needs
B. creating merchant classes
C. extending markets for businesses
D. providing business finances
Explanation

Marketing researches consumer needs to develop products that satisfy them, driving business success, beyond just market extension.

34
Question 34 of 40
JAMB · Commerce · 2023

Securities without physical certificates are known as

A. bearer securities
B. registered securities
C. dematerialized securities
D. inscribed securities
Explanation

Dematerialized securities are held electronically, easing trading without physical certificates, unlike bearer or registered securities.

35
Question 35 of 40
JAMB · Commerce · 2023

Deferred shares are also called founders’ shares because holders

A. receive cumulative dividends
B. receive dividends after others
C. receive dividends before others
D. are not entitled to dividends
Explanation

Deferred shares receive dividends after preference and ordinary shareholders, delaying returns for founders.

36
Question 36 of 40
JAMB · Commerce · 2023

An example of a service-rendering trade association is

A. Association of Nigerian Miners
B. National Association of Chambers of Commerce
C. Cocoa Farmers’ Association
D. Manufacturers’ Association of Nigeria
Explanation

The National Association of Chambers of Commerce provides advocacy and networking services, unlike production-focused associations.

37
Question 37 of 40
JAMB · Commerce · 2023

An obstacle to international trade is

A. trade imbalance between countries
B. availability of local market
C. quantity of local labour
D. cost of finance
Explanation

Trade imbalances create economic tensions, hindering international trade, more than local markets or labour.

38
Question 38 of 40
JAMB · Commerce · 2023

The right of ownership over goods or property is called

A. right of occupancy
B. proxy
C. title
D. certificate of occupancy
Explanation

Title represents legal ownership of goods or property, distinct from occupancy or proxy rights.

39
Question 39 of 40
JAMB · Commerce · 2023

The main motive of chambers of commerce and trade associations is to

A. assist government objectives
B. protect consumer interests
C. maximize profit
D. promote members’ interests
Explanation

Chambers of commerce advocate for members’ interests through favorable policies, not primarily consumer or government goals.

40
Question 40 of 40
JAMB · Commerce · 2023

A pattern showing participants in production, distribution, and use of a product is called

A. selection
B. strategy
C. structure
D. synergy
Explanation

The structure outlines the chain of participants (producers, wholesalers, retailers) in delivering a product to the end user.

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