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

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 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 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.

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 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.

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.

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.

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

One important requirement for the membership of the ECOWAS is ________

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

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.

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