UTME CBT FREE Practice Test – Commerce (Score 70% and Above and WIN FREE Airtime)


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Which of the following advertising medium appeals to only the literate in the society?

(a) radio advertising    (b) cinema advertising   (c) print advertising   (d) television advertising


The bulls and bears in the Stock-Exchange market help to minimize _______

A. the number of shares and bonds sold
B. price increase of securities
C. fluctuations in the prices of securities
D. the elasticity of the prices of securities.


The body charged with the responsibility to register shares for subscription on the stock market in Nigeria is the ______

A. Central Bank of Nigeria
B. Securities and Exchange Commission
C. Nigerian Stock Exchange
D. Nigerian Deposit Insurance Corporation.


The essential utility derived from the use of products is known as ________

(a) augmented benefit   (b) branded benefit   (c) formal benefit   (d) core benefit


Public debt management is one of the functions of a _______

A. merchant bank   B. central bank   C. commercial bank   D. development bank


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.


The process of dividing tasks into jobs and departments and of delegating authority is known as _____

A. leading   B. directing   C. organizing   D. staffing.


The members of the Niger Basin Commission include _______

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


Which of these factors of production is relatively fixed in supply?

A. Natural resources     B. Human resources    C. Capital    D. Entrepreneur.


In product pricing, which of these elements needs more consideration than others?

A. The demand for the product
B. The demography of the buyers of the product
C. The economic conditions in the market
D. The cost of producing the product.


An organization that issues a cheque to cover the salaries of its employees is using _____

(a) credit transfer system of payment
(b) a standing order of payment
(c) an overdraft system of payment
(d) bank order of crediting account


The term 4 net 7 on an invoice means that _______

A. 4% discount will be allowed on the price charged i payment is made within seven days
B. 4% discount will be allowed on the price charged if payment is made after seven days.
C. 4% surcharge will be made unless payment is made within seven days
D. 4% discount will be allowed on the price charged only if the goods are bought within seven days.


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

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


Factors of production can be described as the _______

A. elements involved in the process of formulating policies on production
B. resources required for the provision of goods and services
C. skills involved in deciding and directing the flow of goods
D. monetary tools employed by government to ensure stable production.


The document issued by the seller which gives details of the goods he sells is known as _____

A. catalogue   B. tender   C. price list   D. invoice.


The main motive of chambers of commerce and trade associations is to ______

A. protect the interest of consumers
B. assist government in achieving its objectives
C. protect and promote the interest of members
D. maximize profit.


The temporary insurance certificate issued to the insured before drawing up a policy is a _____

A. cover note   B. testimonial   C. time policy   D. proposal form.


The agency in Nigeria which ensures that products conform to government quality specifications is the ______

A. Standards Organization of Nigeria
B. Nigeria Consumers’ Association
C. Manufacturers’ Association of Nigeria
D. Nigerian Chamber of Commerce.


In international trade, documentary credit is also known as ______

A. letters of credit   B. credit note    C. letter of hypothecation   D. banker’s draft


The organizational structure relates the positions of specialists to the line managers is called ____

A. line structure   B. staff structure   C. line and staff structure   D. functional structure.


The principal objectives of the Central Bank of Nigeria can be classified broadly into ______

A. bankers’ bank, lender of last resort and issuance of currency
B. service, currency management and financial intermediation
C. banking services, foreign exchange operations and open market operations
D. service, monetary policy arid developmental functions.


Which of the following industries is normally located near the source of its raw materials?

A. Footware industry   B. Cement factory   C. Textile industry   D. Automobile assembly.


A type of long-term loan granted to companies with fixed interest as well as with redeemable and irredeemable features is referred to as ______

A. a bond   B. an overdraft   C. a debenture   D. a term loan.


A contract for the sale of goods involves the ______

A. producer, the seller and the buyer of goods
B. offering of goods to customers
C. transfer of title to goods for money
D. exchange of goods.


One of the most important functions of marketing is ______

A. encouraging research activities to meet needs
B. Creating classes of merchants among businessmen
C. the extension of markets for business
D. providing finances to business.


Management of a business involves the development of ideas of the _______

(a) distribution of goods and services that man wants
(b) transportation of goods and services that man wants
(c) production of goods and services that satisfy man needs
(d) transfer of tile of ownership of goods and services to individuals


One of the requirements necessary for setting up a business is ________

A. documentation
B. registration
C. advertisement
D. knowledge of the business.


Which of these insurance principles requires a close connection between the actual loss suffered and the risk insured?

A. Indemnity   B. Proximate cause   C. Contribution   D. Subrogation.


Which of the following involves foreign trade?

A. Supermarkets   B. Chain stores   C. Departmental stores   D. Commodity market.


A software application which enables a user to display and interact with text and video is the ___

(a) web server   (b) web browser   (c) file transfer protocol   (d) internet protocol


The rate of turnover of a firm in a given year is 5 times while the average stock is N 12, 500. What is the turnover of the firm?

(a) N 24, 000   (b) N 46, 000   (c) N 65, 000   (d) N 62, 500


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.


One important requirement for the membership of the ECOWAS is ________

A. population   B. integrity   C. independence   D. landmass.


The type of computer found in offices is ______

A. laptop   B. desktop   C. the hybrid computer   D. the main computer.


The use of vending machines in retailing is hindered in a developing economy owing to ______

A. ineffective communication system
B. poor distribution network
C. lack of steady power supply
D low level of education.


An obstacle to international trade is ______

A. cost of finance
B. quantity and quality of labour
C. availability of local market
D. trade imbalance between countries.


Loan schemes by thrift societies are ______

A. conventional schemes   B. unconventional schemes   C. mortgage schemes   D. mutual schemes.


The machine used for sending telex messages is known as a ________

A. radar   B. fax machine  C. dictaphone   D. teleprinter.


Communication process involves the transmission of a message over a selected channel to the ____

A. encoder   B. receiver   C. audience   D. sender.


Trading position of Nigeria is the same as her ______

(a) desire to trade with many countries   
(b) terms of trade   
(c) willingness to grant credit to foreigners   
(d) balance of trade


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