JAMB Commerce: practice questions.

Question 1 · Commerce

A Kano groundnut farmer sells through a cooperative, the bags are stored in Kano, moved by rail to Lagos, insured, and bought by a Lagos processor. The function of commerce that bridges the gap between Kano and Lagos is

1. A.the removal of the hindrance of time through warehousing
2. B.the removal of the hindrance of risk through insurance
3. C.the removal of the hindrance of knowledge through advertising
4. D.the removal of the hindrance of place through transportation

eZine practice question (original, teacher-reviewed)

Question 2 · Purchase and sale of goods

"E. & O.E." printed on an invoice means

1. A.export and overseas entry
2. B.exchange of orders effected
3. C.errors and omissions excepted
4. D.ex-works on export

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Question 3 · Tourism

Nigerians travelling to Saudi Arabia for Hajj is an example of

1. A.religious tourism
2. B.domestic tourism
3. C.eco-tourism
4. D.medical tourism

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Question 4 · Elements of business management

A structure in which authority flows directly from the top to the bottom in a straight chain, with no specialist advisers, is

1. A.line and staff organisation
2. B.functional organisation
3. C.matrix organisation
4. D.line organisation

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Question 5 · Communication

Which is the correct sequence in the communication process?

1. A.Receiver → decoding → channel → encoding → sender → feedback
2. B.Sender → decoding → channel → encoding → receiver → feedback
3. C.Sender → encoding → channel → decoding → receiver → feedback
4. D.Channel → sender → receiver → encoding → decoding → feedback

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Question 6 · Business units

A public corporation is established by

1. A.an Act of the National Assembly (or a state law)
2. B.registration with the CAC as a private company
3. C.a partnership deed
4. D.a cooperative by-law

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Question 7 · Financing business

Gross profit is ₦420,000. Rent is ₦95,000, salaries ₦40,000 and electricity ₦35,000. Net profit is

1. A.₦590,000
2. B.₦325,000
3. C.₦170,000
4. D.₦250,000

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Question 8 · Purchase and sale of goods

The main difference between a bill of exchange and a promissory note is that

1. A.a bill is an order to pay drawn by the creditor; a note is a promise to pay by the debtor
2. B.a promissory note has three parties, while a bill of exchange has two
3. C.a promissory note is drawn by the creditor, while a bill of exchange is a promise made by the debtor
4. D.a promissory note is legal tender

eZine practice question (original, teacher-reviewed)

Question 9 · Money

The main problem of barter that money solved is

1. A.the need for double coincidence of wants
2. B.too many goods being available
3. C.the existence of markets
4. D.specialisation

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Question 10 · Stock exchange

Bonds issued by the Federal Government of Nigeria are often called

1. A.gilt-edged securities
2. B.ordinary shares
3. C.preference shares
4. D.blue-chip shares

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Question 11 · Legal aspects of business

A 15-year-old enters a contract to buy a car on credit. The contract is likely to be

1. A.valid and binding in all cases
2. B.illegal because cars cannot be sold on credit in Nigeria
3. C.void because there is no offer
4. D.unenforceable against him for lack of capacity

eZine practice question (original, teacher-reviewed)

Question 12 · Commodity exchange

The Nigeria Commodity Exchange (NCX) and AFEX are examples of

1. A.stock exchanges
2. B.commodity exchanges in Nigeria
3. C.commercial banks
4. D.insurance companies regulated by NAICOM

eZine practice question (original, teacher-reviewed)