JAMB Past Questions

JAMB Commerce 2025
Questions & Answers

40 questions · Correct answers highlighted · 40 with explanations

40 Total Questions
2025 Exam Year
40 With Explanations
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1
Question 1 of 40
JAMB · Commerce · 2025

Ships that sail across the ocean and operate on scheduled timetables are

A. Ferries
B. Ocean liners
C. Tramp steamers
D. Coastal liners
Explanation

Ocean liners operate on fixed schedules across oceans, transporting passengers. Ferries cover short routes, tramp steamers lack fixed schedules, and coastal liners stay near coastlines.

2
Question 2 of 40
JAMB · Commerce · 2025

Non-insurable risks include

A. Gambling
B. Damage to property
C. Death
D. Marine problems
Explanation

Gambling is a non-insurable risk due to its speculative nature. Property damage, death, and marine issues are insurable as they can be actuarially assessed.

3
Question 3 of 40
JAMB · Commerce · 2025

The program that makes up the operating system in a computer is

A. Microprograms
B. Software
C. System flowchart
D. Syntax
Explanation

The operating system consists of software, managing hardware and resources. Microprograms are low-level, flowcharts are diagrams, and syntax relates to coding rules.

4
Question 4 of 40
JAMB · Commerce · 2025

When an organization studies a market that is underserved by others and creates a product or service for the segment, it is engaged in

A. Market integration
B. Market positioning
C. Product differentiation
D. Market segmentation
Explanation

Market segmentation targets underserved market segments with tailored products. Integration combines markets, positioning shapes brand image, and differentiation focuses on unique features.

5
Question 5 of 40
JAMB · Commerce · 2025

Coverage against unexpected events is called

A. Insurance
B. Assurance
C. Warranty
D. Reinsurance
Explanation

Insurance covers unexpected events like accidents. Assurance is for certain events, warranties cover product defects, and reinsurance is for insurers.

6
Question 6 of 40
JAMB · Commerce · 2025

An insured risk which occurs accidentally as a result of a defect in a ship is

A. Voyage policy
B. A total loss
C. An emergency
D. A particular average
Explanation

A particular average is a partial loss from an accidental ship defect, covered by insurance. Voyage policy is a type, total loss is complete loss, and emergency is not a term here.

7
Question 7 of 40
JAMB · Commerce · 2025

Communication enhances business activities by

A. Facilitating interaction between producers and consumers
B. Facilitating interaction among media houses
C. Ensuring the movement of goods from the producer to the consumer
D. Keeping the goods safe until they are needed
Explanation

Communication enables producer-consumer interactions, supporting marketing and feedback. Other options are unrelated to communication’s business role.

8
Question 8 of 40
JAMB · Commerce · 2025

In business, the computer is very important especially in

A. Financial management
B. Marketing management
C. Educational management
D. Information management
Explanation

Computers are vital for information management, handling data storage and processing. They support financial, marketing, and educational tasks, but information management is primary.

9
Question 9 of 40
JAMB · Commerce · 2025

What is the most important use of promotion in marketing?

A. Persuasion
B. Conviction
C. Information
D. Education
Explanation

Promotion’s primary role is to inform customers about products, creating awareness. Persuasion, conviction, and education are secondary effects.

10
Question 10 of 40
JAMB · Commerce · 2025

The current highest decision-making body on privatization and commercialization of public enterprises in Nigeria is the

A. National Council on Privatization
B. Securities and Exchange Commission
C. Nigeria Investment Promotion Commission
D. Bureau of Public Enterprises
Explanation

The National Council on Privatization oversees privatization and commercialization in Nigeria. Other bodies have related but secondary roles.

11
Question 11 of 40
JAMB · Commerce · 2025

The members of the Niger Basin Commission include

A. Guinea, Ghana and Niger Republic
B. Burkina Faso, Guinea and Nigeria
C. The Gambia, Benin Republic and Chad Republic
D. Nigeria, the Gambia and Cameroon
Explanation

The Niger Basin Commission includes Burkina Faso, Guinea, and Nigeria, among others in the Niger River Basin. Other options include non-members.

12
Question 12 of 40
JAMB · Commerce · 2025

Business environment refers to all elements that are

A. Outside an organization but relevant to its operations
B. Inside an organization but relevant to its operations
C. Internal to an organization and relevant to its operations
D. External to an organization but indirectly related to its operations
Explanation

The business environment comprises external factors (economic, political) impacting operations, outside the organization’s control.

13
Question 13 of 40
JAMB · Commerce · 2025

Consumer rights include the right to

A. Credit
B. Free samples of a product
C. Redress
D. A share of profits
Explanation

Consumers have the right to redress, seeking remedies for faulty products. Credit, samples, and profits are not standard rights.

14
Question 14 of 40
JAMB · Commerce · 2025

One important requirement for the membership of the ECOWAS is

A. Population
B. Independence
C. Integrity
D. Landmass
Explanation

ECOWAS membership requires sovereign independence in West Africa. Population, integrity, and landmass are not specific criteria.

15
Question 15 of 40
JAMB · Commerce · 2025

In Nigeria, the body that ensures that its members operate according to their professional ethics is the

A. SON
B. MAN
C. NMA
D. NAFDAC
Explanation

The Nigerian Medical Association (NMA) enforces ethical standards for medical professionals. SON, MAN, and NAFDAC have different roles.

16
Question 16 of 40
JAMB · Commerce · 2025

A transporter who had to sell some perishable goods without the prior authority of the owner becomes an agent by

A. Conduct
B. Necessity
C. Ratification
D. Estoppel
Explanation

An agent by necessity acts without prior authority in emergencies, like selling perishable goods to prevent loss.

17
Question 17 of 40
JAMB · Commerce · 2025

Poor sewage disposal, oil spillage and indiscriminate refuse dumping all lead to

A. Land and water pollution
B. Air and water pollution
C. Land pollution only
D. Air pollution only
Explanation

Sewage, oil spillage, and refuse dumping contaminate land and water, causing land and water pollution.

18
Question 18 of 40
JAMB · Commerce · 2025

One of the advantages of commercialization is that it

A. Encourages entrepreneurship
B. Increases the salaries of workers
C. Motivates government to establish more business
D. Gives workers on-the-job training
Explanation

Commercialization fosters entrepreneurship by making businesses profit-driven and competitive.

19
Question 19 of 40
JAMB · Commerce · 2025

A common element in all contracts is

A. Offer
B. Consideration
C. Acceptance
D. Agreement
Explanation

An agreement, encompassing offer and acceptance, is essential for all contracts. Consideration is also key but part of the agreement.

20
Question 20 of 40
JAMB · Commerce · 2025

Sources of finance available to a business include personal savings, loans from banks, and

A. Central bank loans
B. Overdrafts
C. Central bank money
D. Money from political parties
Explanation

Overdrafts are a common business finance source, allowing overdrawing. Central bank loans and political funds are not typical sources.

21
Question 21 of 40
JAMB · Commerce · 2025

Charges for loans paid by commercial banks to the Central Bank of Nigeria are called

A. Bank rates
B. Credit charges
C. Interest rates
D. Bank charges
Explanation

Bank rates are the interest rates commercial banks pay to the Central Bank for loans.

22
Question 22 of 40
JAMB · Commerce · 2025

In the primary market, new shares are issued through

A. Personal selling
B. Advertising and advertising
C. A prospectus
D. An offer for sale and a bill of exchange
Explanation

New shares in the primary market are issued via a prospectus, inviting public investment.

23
Question 23 of 40
JAMB · Commerce · 2025

The instruments of credit include

A. Billboards and postal stamps
B. Payment vouchers and statement of account
C. Bills of exchange and promissory notes
D. Bills of exchange and salary vouchers
Explanation

Bills of exchange and promissory notes are credit instruments facilitating transactions.

24
Question 24 of 40
JAMB · Commerce · 2025

The shares of a company listed on the stock exchange for sale are referred to as

A. Registered shares
B. Deferred shares
C. Issued shares
D. Quoted shares
Explanation

Shares listed on the stock exchange are quoted shares, publicly traded.

25
Question 25 of 40
JAMB · Commerce · 2025

What is the role of the capital market in the privatization exercise in Nigeria?

A. Selling the shares and stocks of the companies to be privatized
B. Encouraging private companies to participate in the exercise
C. Negotiating with individuals who want to buy public companies
D. Advertising for government
Explanation

The capital market sells shares of companies being privatized, enabling public investment.

26
Question 26 of 40
JAMB · Commerce · 2025

The most important function of commerce is

A. Aids to trade
B. Advertising
C. Manufacturing
D. Industry
Explanation

Commerce’s primary function is providing aids to trade (e.g., banking, transport) to facilitate exchange.

27
Question 27 of 40
JAMB · Commerce · 2025

In international trade, documentary credit is also known as

A. Credit note
B. Letters of credit
C. Bankers’ drafts
D. Letter of hypothecation
Explanation

Documentary credit, or a letter of credit, ensures payment in international trade.

28
Question 28 of 40
JAMB · Commerce · 2025

A specialized institution in Nigeria that deals in capital investments in the form of stocks, shares, bonds and debentures is the

A. Securities and Exchange Commission
B. Commodity market
C. Nigerian Stock Exchange
D. Central Bank of Nigeria
Explanation

The Nigerian Stock Exchange handles capital investments like stocks and bonds.

29
Question 29 of 40
JAMB · Commerce · 2025

A group of assets which a business acquires with the intention of reselling them are referred to as

A. Current assets
B. Investment assets
C. Fixed assets
D. Intangible assets
Explanation

Current assets, like inventory, are acquired for resale within a short period.

30
Question 30 of 40
JAMB · Commerce · 2025

Authorized share capital is also known as

A. Called-up share capital
B. Paid-up share capital
C. Registered share capital
D. Issued share capital
Explanation

Authorized share capital, or registered share capital, is the maximum a company can issue.

31
Question 31 of 40
JAMB · Commerce · 2025

An action taken by a company outside its object clause is regarded as

A. Ultra vires
B. A trespass
C. Uberrimae fides
D. Caveat Emptor
Explanation

Ultra vires actions exceed a company’s legal object clause.

32
Question 32 of 40
JAMB · Commerce · 2025

The strategy adopted by a firm that ceases to operate at one or more locations because of inactivity is

A. Consolidation
B. Focus
C. Rejuvenation
D. Diversification
Explanation

Consolidation involves closing unprofitable locations to focus on viable ones.

33
Question 33 of 40
JAMB · Commerce · 2025

A written partnership contract is known as

A. An invoice
B. A deed
C. A prospectus
D. A proposal
Explanation

A partnership deed is the written contract outlining partnership terms.

34
Question 34 of 40
JAMB · Commerce · 2025

The merger of a textile mill, a cement company and a tannery is referred to as

A. Conglomerate merger
B. Horizontal merger
C. Lateral merger
D. Vertical merger
Explanation

A conglomerate merger involves unrelated industries like textiles, cement, and tannery.

35
Question 35 of 40
JAMB · Commerce · 2025

The occupational structure of a country typically includes sectors like extraction, trade, services, and public administration, which are collectively referred to as

A. Commerce
B. Industry
C. Finance
D. Construction
Explanation

Commerce includes trade, services, and administration, facilitating economic exchange.

36
Question 36 of 40
JAMB · Commerce · 2025

Activities such as banking, transportation, and warehousing that support trade are known as

A. Aids to trade
B. Advertising
C. Manufacturing
D. Extractive industries
Explanation

Aids to trade, like banking and transport, support the exchange of goods.

37
Question 37 of 40
JAMB · Commerce · 2025

The primary objective of a cooperative society is to

A. Raise capital for members
B. Promote members' welfare
C. Maximize profit for investors
D. Secure government grants
Explanation

Cooperatives aim to promote members’ welfare through mutual support and shared benefits.

38
Question 38 of 40
JAMB · Commerce · 2025

A document issued to a buyer showing the quantity, description, and price of goods bought is called

A. Receipt
B. Invoice
C. Waybill
D. Cheque
Explanation

An invoice details the quantity, description, and price of goods sold to a buyer.

39
Question 39 of 40
JAMB · Commerce · 2025

The difference between the cost price and the selling price of an article is

A. Gross profit
B. Net profit
C. Markup
D. Discount
Explanation

Gross profit is the difference between selling price and cost price before expenses.

40
Question 40 of 40
JAMB · Commerce · 2025

The process of buying and selling within a country is referred to as

A. International trade
B. Domestic trade
C. Barter trade
D. Entrepot trade
Explanation

Domestic trade involves buying and selling goods within a country’s borders.

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