UTME CBT FREE Practice Test – Commerce (Questions with Answers and Explanations)

A voluntary association of business executives within a locality is known as ______

A. Trade Union.     B. Consumers' Association.     C. Chamber of commerce.     D. Trade association.

Privatization is concerned with _______

A. government ownership of companies
B equal ownership between the public and the government
C. the dilution of ownership among the public
D. The individual ownership companies.

The instruments of credit include ______

A. bills of exchange and promissory notes
B. bill boards and Postal stamps
C. bills of exchange and salary vouchers
D. payment vouchers and statement of account.

Business environment refers to all elements that are _______

A. inside an organization but irrelevant to its operations
B. outside an organization but relevant to its operations
C. external to an organization but indirectly related to its operations
D. internal to an organization and relevant to its operations.

The founders’ shares are usually referred to as deferred shares because the holders ______

A. are entitled to cumulative dividends
B. receive their dividends after other shareholders
C. receive their dividends before other shareholders
D. are not entitled to any dividends.

Which of the following is an example of large-scale retailing?

A. Hawking    B. Mobile shops    C. Kiosks    D. Department stores

The ECOBANK is the initiative of ______

A. West African states to foster trade
B. the Lagos State Government to enhance capital mobilization
C. some well-meaning Nigerian shareholders
D. the Federal Government of Nigeria.

Banks are engaged in the business of buying and selling of ______

A. land   B. intangible product   C. bills of exchange   D. instruments of credit.

The last link in the channel of distribution is the ______

A. retailer.    B. consumer.    C. wholesaler.    D. producer.

The evolution of commerce in Nigeria is traceable to the ______

A. primitive stage of existence of human beings
B. development of human civilizations and the desire to meet their needs
C. period of barter economy as human needs became limitless
D. desire human beings to satisfy their needs through the service of other people in the society.

A collective bundle of shares is called _______

A. debenture.    B. stock.    C. bond.    D. share.

The box marked ‘Y’ stands for

A. Wholesale.    B. Indirect services.    C. Aids to trade.    D. Foreign

A wholesaler who possesses the title to the goods he sells is known as ______

A. a merchant wholesaler   B. a multiple wholesaler   C. a general wholesaler   D. an agent wholesaler.

The concept that refers to the sale, transfer is exchange of goods and services is ______

A. tariff   B. marketing   C. trade   D. industry.

Under an endowment policy, the money handed over to the insured at the expiration of the stipulated time or at death is the ______

A. indemnity   B. surrender value   C. lump sum benefit   D. insurance premium.

Social responsibility is the ability of an organization to ______

A. meet the needs of its community
B. operate without disrupting the very essence of the environment
C. tackle the socio-economic problem of its community
D. contribute to sustaining and developing its community.

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

A. Nigeria.    B. Chad.    C. Gabon.   D. Cameroun

Shipping services rendered by Nigeria to The Gambia would be classified by The Gambia as _____

A. invisible imports.   B. invisible exports    C. visible imports.   D. visible exports.

Which of the following is not a function of warehousing?

A. Creating scarcity of goods
B. stabilization of price
C. Production ahead of demand
D. Storage of goods.

Mr Biu has been paying the premium of a straight Life Assurance policy for several years. The surrender value of the policy if the amount that ______

A. would be paid to Mr. Biu if he should discontinue with the policy.
B. would be paid to Mr. Biu’s beneficiaries if he dies
C. is paid annually to Mr. Biu to the insurance company
D. the amount Mr Biu has paid plus interest

Payment to a ship owner for carrying one's cargo is ______

A. demurrage.    B. fare.    C. dock due.    D. freight.

The final link in the chain of distribution is ______

(a) middleman   (b) retailing   (c) wholesaling   (d) consumer

Which of the following protects consumers against poor quality goods?

A. Chambers of Commerce
B. Standard Organisation
C. Trade Association
D. Manufacturers Association

One of the advantages of air transport over other forms of transport is ______

A. safety.    B. flexibility.    C. cost.    D. speed

The agency that currently oversees the privatization and commercialization processes in Nigeria is the _________

A. Securities and Exchange Commission
B. Technical Committee on privatization
C. Nigerian Stock Exchange
D. Bureau of Public Enterprises.

The physical components of a computer system is _____

(a) software   (b) hardware   (c) floppy disc   (d) hard disc

Gilt-edged securities are issued mainly by ______

(a) individuals   (b) non-governmental   (c) multi-national companies   (d) government.

An example of a service-rendering trade association is _____

A. Cocoa Farmers’ Association
B. Nigerian Bar Association
C. Manufacturers’ Association of Nigeria
D. Association of Nigerian Miners.

Which of the following is quoted when the buyer is responsible for the cost of loading the goods from the seller’s warehouse up to his own warehouse?

A. F.O.R.    B. C.I.F    C. E.A.S     D. Loco

The various rights attached to different classes of shares are stated in the _______

A. articles of association     B. memorandum of association     C. balance sheet     D. prospectus

Which of the following is an advantage to a sole trader?

A. Guaranteed profit     B. A quick decision making     C. Unlimited liability     D. Buying on credit

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

A. necessity   B. estoppel   C. conduct   D. ratification.

Coverage against unexpected events is called ______

A. assurance    B. re-insurance    C. insurance    D. warranty.

The entitlement of a debenture holder from a company's income is known as _______

A. commission    B. interest.    C. lien.    D. dividend.

The process of transferring data from one computer to another is referred to as ______

(a) downloading   (b) faxing   (c) decoding   (d) browsing

A country is said to be experiencing an unfavourable balance of trade if her _______

(a) exports exceeds imports
(b) visible imports exceed visible exports
(c) visible exports exceed visible imports
(d) imports and exports are equal

Organizing trade fairs in Nigeria is the responsibility of _______

A. trade associations   B. chambers of commerce   C. Federal Ministry of Commerce   D. National Directorate of Employment.

Which of the following is used as a pricing policy?

(a) packaging  (b) market location   (c) market skimming  (d) labeling

Direct sales to consumers by manufacturers is a means of eliminating _______

A. wholesalers only    B. retailers only    C. middleman    D. agent.

The completion of the production process by grading and branding of goods is a function of the ______

A. transporter.    B. wholesaler.    C. retailer.    D. consumer.