UTME CBT FREE Practice Test – Commerce

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Location (City/State)

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.

A pattern that shows the kinds of participants involved in the production, distribution and ultimate use of a product is referred to as ______

A. strategy   B. synergy   C. selection   D. structure.

Find the current ratio

A. 0.50:1   B. 0.87:1   C. 1.53:1   D. 1.85:1

A trader’s turnover was D36,000. Purchases was D28,000. The opening stock was D2,000 and the closing stock D3,000

What is the rate of turnover?

A. 13.5 times.    B. 10.8 times.    C. 9 times.    D. 5.4 times.

Which of the following are elements of a valid contract?

A. Discharge and performance.
B. Offer and acceptance.
C. Age and maturity.
D. Promise and capacity.

Buildings and machinery used in the running of a business are examples of _______

A. current assets.    B. intangible assets.    C. liquid assets.    D. fixed assets.

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.

Which of the following is used to inform the addressee that he has a registered parcel for collection?

A. Counterfoil   B. Express label    C. Slip.    D. Telegram.

Manufacturers’ Association of Nigeria contributes to development by advising the government on

A. budget and budgetary control
B. industrial policy and harmony
C. environmental protection policy
D. budget and industrial policy

A guarantee given by one person or party to another in which the integrity of the person is assured is ______

A. term assurance   B. indemnity   C. fidelity   D. subrogation.

Before the advent of legal tender and credit instrument, which of the following was used as a medium of exchange?

A. Currency notes.    B. Cowries.    C. Cheques    D. Bank drafts.

The last link in the channel of distribution is the ______

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

Liquid capital in a business means the ______

A. movable assets of the business.
B. authorised capital.
C. issued capital.
D. Assets easily convertible to cash

An important principle of a good organizational structure is ______

A. ideal standard   B. span of control   C. clarity of mission   D. adequacy of resources.

The slogan, a wonderful world, used by a communication network is a form of ______

(a) packaging   (b) publicity   (c) product differentiation   (d) persuasive advertising

The exclusive right of an author over his book is _______

A. Trade mark.    B. Brand name.    C. Copy right.    D. Patent right.

A ltd. Company has an authorized capital of 2,000,000 shares of D5 each. If the company issued 1,200,000 shares, it issued capital is ______

A. D10,000,000       B. D6,000,000       C. D4,000,0000       D. D2,000,000

The shares of a company listed on the stock exchange for sales are referred to as

A. deferred shares   B. quoted shares   C. registered shares   D. issued shares.

The collection of tariffs on imported goods is the function of _______

A. Ports Authority.
B. Customs and Excise Authority.
C. Clearing and Forwarding Agents.
D. Export Promotion Council.

A market which deals in the purchase and sale of second-hand securities is the ______

A. Stock Exchange    B. Building Society    C. Shippers Council    D. Co-operative Society.

The Stock Exchange is a market where _____

A. Long-term securities are sold
B. All types of securities are sold
C. Short term securities are sold
D. Medium term securities are sold.

Discounts offered by firms to middlemen for bulk purchases are ______

A. cash discounts   B. seasonal discounts   C. trade discount   D. sales bonanza.

Which of the following acted as the central bank for West African countries before their independence?

A. The West African Clearing House
B. The British Bank for West Africa
C. The West African Currency Board
D. The African Development Bank

A business partner who provides capital but abstains from participation in administration of a firm is a ______

(a) general partner   (b) nominal partner   (c) dormant partner   (d) secret partner

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

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

The document which helps in ascertaining the correct value of imports in order to assess the custom duty is ______

A. bill of lading.    B. consular invoice.    C. bill of sight.    D. ships manifest.

If Karamo who lives in The Gambia imports goods from Senegal and later sells in Guinea Bissau; Karamo is engaged in ______

A. multi-lateral trade.    B. counter trade.    C. barter trade.    D. entrepot trade.

A percentage reduction from the quoted price of goods given to a buyer to encourage bulk purchase is called ______

A. cash discount.    B. trade discount.    C. commission.    D. bonus.

An issuing house is an outlet for ________

A. new shares and bonds.
B. non listed companies shares.
C. existing shares and bonds.
D. only gilt-edged securities.

Money can simply be referred to as a _______

A. standard of value
B. medium of exchange
C. means for the settlement of debts
D. durable asset for doing business.

The two main forms of communication are ______

(a) oral and written   (b) verbal and non-verbal   (c) traditional and modem media    (d) e-mail and fax

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 type of marine insurance which covers either damage or loss to the vessel and such as caused by it to other vessels is ________

A. freight insurance   B. cargo insurance   C. bull insurance   D. time insurance.

Which of the following is used to inform the addressee that a registered parcel is ready for collection?

A. Express label   B. Counterfoil   C. Telegram   D. Slip.

The combination of product, price, promotion and distribution decisions employed by a company is referred to as its ______

A. pricing policy.     B. marketing mix.     B. product mix.     D. marketing concept.

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.

An insurance policy that covers the body of the ship only is called ______

A. Haulage insurance    B. Voyage insurance    C. Hull insurance    D. Cargo insurance

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.

The functions of credit and thrift society does not include ______

A. charging low interest rate on loan.
B. providing savings facilities.
C. encouraging mutual co-operation of members.
D. providing security for members' property.

To endorse a cheque means to ______

A. write and sign one's name at the back of the cheque
B. write "pay cash" on the cheque
C. cross the cheque
D. stop the payment of the cheque

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