SUBJECT: COMMERCE

CLASS: 853

1. Commerce can be defined as (a) activities involved buying and selling (b)all the
activities involved in distribution of good and exchange of goods and services (C)the
activitier involves trading (d)activities involving money (e) all of the above

2. one of the charactenstic of commerce (a) profit (b) selling (C)economy actives (d)
trading (e) none
3. —— is an agreement of one party promising another indemnity (a) contract (0)
insurance(c) assurance(4) law() all of the above

4. ——- is the system which provides financial compensation for loss (a)
insurance(b) indemnity(insufficient(d)insured (e) insurable

5. Compensation depend on (a) the insured (b)the premum amount contributed (c) the
level of the loss (d( risk incured (s) all of the above

6. Insurance also offer (a) security for loss (b) cancellation of risk (c) monetary
assistance 05) loan

7. insurance in a binding (a) contract (b) vow (c) promise (d) protection (e) none

8. The first insurance company was established in the year. ———

9. At independent insurance company grow to what number ———-

10. is the name of the first establish insurance company in Nigeria ——

11. is an unplan an unforeseen event in business (a) death (b)risk (c) fire (d) flood
(e) none

12. Risk where provision are made in know as (a) insurable(b) uninsurable
(c)indemnity(d) all of the above

13. —— is a System of credit which bank assist the public in payment of building fee
(a) load (b)hire purchase (c) mortgage (d) contributions (e) none

14. ——- Is a sum of money borrowed by bank in which an individual is allowed to

withdrew More than the money his/her account balances (a) Load (b) Book me down
(c) overdraft (d) all of the above

15. ——- System that allows the b to take possession of good bought then pay up on
installment. (a) Credit (b) Hire Purchase (c) Load (d)discount allow (e) none
16. To much credit sales can lead to —— (a) fighting (b) war (c) court action (d)
problem of bad debt (d) problem of non payment (e) all of the above
17. —— can be done to a hiree that has defaulted in his payments by the hirer (a)
reposses if goods (b) the buyer should run away (c) debt (d) increase the interest rate
(e) none
18. —- is one of the advantage of hire purchase to the seller (a) increase in price (b)
repossession of goods (c) debtors running away (d) increases in sales
19. —— is a card issued to an approved individual to enable them pay for goods and
services in advance country (a) load facilities (b)credit card (c) credit note (d)
contribution (e) credit permit

20. Credit instruments are —— and —— (a) credit card and bonds (b) Credit note
and bill of exchange (c) debenture and physical exchange (d) none
21. —— is the system whereby the owner of a property grants another permission to
make use of his property at a fixed time and duration (a) contract of business (b)
credit (c) hiring and leasing (d) mortgage (e) housing bill
22. The main purpose of a business organization is to make ——- (a) connection (b)
friends (c) customer (d) profit (e) communication
23. The excess of income over. Expenditure is ——- (a) credit (b) load (c) profit (d)
net profit
24. ——- and ——- are types of profit (a) excess turnover and income gain (b) fixed
assets and current liabilities (c) profit and loss (d) gross profit and net profit
25. The economist defines profit as the reward of An entrepreneur (a) true (b) false
26. At the removal of all expenses the total sum is called ——-
27. ——- purchases are known as ———
28. Return inward are known as —— (a) purchase returned to the seller (b) purchase
returned by the buyer (c) purchase returned to the customer (d) all of the above
29. Expenditure are also known as —— (a) sundry (b) expenses made (c) purchases
(d) drawings
30. ——- factor affect profit (a) price of good (b) increase in demands (c) scarcity (d)
competition (e) all of the above
31. ——- is the Formula for calculating net profit
32. Opening stock + closing stock is equal to (a) average stock (b) closing (c) stock at
the beginning of the month (d) none
33. ——- is a set of laws that regulate or govern the operations of a business. (a) law
(b) commercial law (c) rule and regulations of a business (d) contract of a business
34. —- is a legal binding agreement between two or more parties in business (a)
business agreement (b) consideration (c) contract of business (d)memorandum
35. The elements of good contracts must involves ——- and —— (a) agreement and
signature (b) oral and written agreement (b) offer and acceptance (d) time and
duration
36. ——- can lead to termination of contracts
37. a legal relationship between a principal with another individual is known as—-
(a) vice principal (b) directing (c) responsibility (d) agency (e) none
38. Insanity of the parties involved in agency agreements can lead to —- (a)
termination of agency (b) bankruptcy (c) damages (d) loss (e) disagreement
39. Agency laws can be terminated in the following manner (a)agreement (b)
performances evaluation (c) death (d) all the the above
40. Risks where provision are made is known as —- (a) insurances (b) insurable risk
(c) indemnity (d) all of the above
41. ———- risk can be measured and forecast
42. What is another word for indemnity
43. —— is a risk that is not insurable
44. When a cost of repairing and abject that was insured is higher than the cost of the
object it lead to ——- (a) bad debt (b) abandonment (c) proximate cause (d)
contribution (d) sharing of interest
45. ——- is one of the important of insurance
46. — defines capital as wealth owned (a) accountant view (b) economist view (c)
commerce (d) lay man view
47. The original fund to start up a business is known as ——
48. ——- is a capital issued to the public (a) paid up capital (b) call up capital (c)
issued capital (d) start up capital
49. What is the formula for capital employed
50. Another name for network is called —- (a) capital owned (b) fixed capital (c)
gross income (d) current capital
51. ——— is the total amount of money borrowed from external sources into the
business (a)load (b). Shareholders money c) bond (d) shares and bond
52. ——- is known as a promise to pay in future
53. ——- is the process whereby the seller grants the buyer permission to enjoy a
commodity
54. ——/ should be considered when give out credits (a) time of payment (b) agreed
interest (c) the buyers name (d) the buyer address (e) the buyers health
55. ——- is one of the merits of credit sales (a) increase in interest (b) increases in
sales (c) goods are not tight down (d) court orders
56. One of this is a source of credit (a) load (b)clubs houses (c) mortgages (d)
contributions
57. —— is an asset that can be converted into cash (a) liquid capital (b) current assets
(c) cheque (d) stock (e) all of the above
58. ——— is a type of capital (a) load capital (b) issued capital (c) credit capital (d)
liquid capital
59. ——- enjoys commodity (a) consumer (b) manufacturer (c) producer (d) public
(e) marketers
60. One of this is a right of an agent (a) right to legal action (b) right to repossess (c)
the seller as the right to stop goods on resell (d) the agent must be keep proper
account of all transaction

SECTION B

1. list 7 non insurable risk 1ii)list 3 insurable risk (1iii) define the word credit (1v) list
5 things to consider before given out credit
2. Explain the term insurance. (2i) explain the differences between insurable and non
- insurable risk (2ii) Highlights any four circumstances that an insured may not be
indemnified, according to the principle of insurance ((3iii) List 5 payment instructions
3.
4. From the following question of Ogo Oluwa farms ltd as at 31 December 1990
Furniture. - 200000
Equipment - 500000
Debtor. - 200000
Stock. - 350000
Credit. - 52000
Sale return. - 20000
Capital. - 700000
Motor van. - 350000
Sales. - 150000
Net profit. - 350000
Calculate the value of the working capital net sales, fixed assets, capital owned, total
assets,

4. defined consumer protection ( 4b) enumerate 5 reasons for consumer protection

5. List 3 reasons for granting discount (5b) write short note on the following words I)
cash discount ii) seasonal discount iii) quality discount