Commerce past questions and answers, WAEC, 1989, part 2

Commerce past questions and answers, 1989:

Please read questions 1 - 25 here

26. The power of attorney that transfers to a third party the share holders right to vote is called _____.

1. warrant
2. shareholder’s benefit
3. proxy
4. bond
5. rights of issue

27. The means by which printed messages sent by cable are recorded is called _____.

1. telegram
2. poster restante
3. telecommunication
4. telephone
5. telex service

28. In which of the followings would you advice Mr. XY to check and confirm the exact telephone number of a bank located in Ibadan?

1. Post Office guide
2. Official gazette
3. Travellers guide
4. Private branch exchange
5. Telephone directory

29. Which of the following is a function of NIPOST?

1. Issuing money order
2. Issuing dividend warrants
3. Issuing traveller’s cheque
4. Minting coins
5. Printing trade journals

30. Which of the followings is charged by the NIPOST on postal order?

1. Interest
2. Tax
3. Poundage
4. Premium
5. Dividend

31. Which of the following describes a distinctive symbol title or design that readily identifies the company of its product?

1. trust
2. trade mark
3. trade name
4. brand name
5. copyright

32. One disadvantage of advertising is that it _____.

1. could be misleading through its false claims
2. decreases sales
3. makes new product known
4. teaches the consumer to use the advertised product
5. creates employment

33. The activities of a company designed to stimulate consumers by giving them samples, premium, or conducting contests are referred to as _____.

1. consumer protection
2. marketing mix
3. sales promotion
4. marketing concept
5. advertising

34. A clean bill of lading is so called because _____.

1. the colour is pure white
2. it is not stained
3. it is a document of authority
4. it has no record of damaged goods
5. it could be transferred to any body

35. The receipt issued by a warehouse keeper for goods taken into the store is called _____.

1. drawback warrant
2. warranty
3. dividend warrant
4. dock warrant
5. customs warrant

36. If a business man imports stockfish with view to exporting them to other countries, this form of trade is known as _____.

1. invisible trade
2. entrepot trade
3. export trade
4. import trade
5. bilateral trade

37. A trader who wants to buy goods from another country sends _____.

1. an advice note
2. an invoice
3. a bill of exchange
4. a statement
5. an indent

38. Which of the following is an invincible export of Nigeria?

1. Shipping services Nigeria renders to Russia
2. Nigeria’s crude oil to London
3. Banking services rendered to American residents in Nigeria
4. Stockfish from Germany to Nigeria
5. Nigeria’s groundnut to Egypt

39. Most payments in international trade are made by means of _____.

1. cash
2. bills of lading
3. personal cheques
4. letters of credit
5. trevellers cheques

40. A deficit in the balance of trade occurs when _____.

1. visible exports exceed visible imports
2. total payments exceed visible exports
3. visible imports exceeds visible exports
4. invisible exports exceed invisible imports
5. visible exports exceed invisible imports

41. The amount of capital with which a new company proposes to be registered is called _____.

1. called-up capital
2. nominal capital
3. fixed capital
4. issued capital
5. circulating capital

42. The part of business capital that does NOT change its form in the process of production is known as _____.

1. circulating capital
2. nominal capital
3. liquid capital
4. fixed capital
5. working capital

43. Which of the following is a glit-edged security?

1. Government bonds and stock
2. Gold mine stocks
3. Company shares and stocks
4. Life assurance policy
5. Bank stocks and security

44. Pure profit is the element of profit paid _____.

1. for land
2. for capital
3. to a manager
4. to n entrepreneur
5. for labour

45. The factor of production which is described as wealth set aside for the production of further wealth is called _____.

1. entrepreneur
2. land
3. capital
4. goodwill
5. labour

46. Buying and selling goods and services and services within the geographical areas of a country is called _____.

1. entrepot trade
2. external trade
3. domestic trade
4. regional trade
5. import trade

47. Which of the following is NOT an obligation of a common carrier?

1. carrying goods securely and safely
2. liability for losses and damages
3. delivery of goods at appropriate places
4. insuring goods in transit
5. passing through agreed routes

48. Which of the following conditions may make the manufacturer sell directly to the consumer?

1. Break in communication
2. Inaccessibility of the wholesaler’s warehouse
3. The nature of the commodity involved
4. Inadequate transport facility
5. Trade imbalance

49. Which of the following is a disadvantage of Hire Purchase to the consumer?

1. It increases turnover
2. Temptation to buy more than one can pay for
3. It demands more capital from the seller
4. Increased sales lowers the sellers unit cost

50. The three main types of speculators found in the stock exchange market are:

1. stags, brokers and bulls
2.  bulls, bears and stag
3. Bears, jobbers and stags and bears
4. Bulls, brokers and bears
5. Stags, agents and jobbers

Please read questions 51 - 75 here

Please read questions 76 - 98. Answers are present here

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