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

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.

As the branches indicates, iv is ______

A. finance   B. commerce   C. construction   D. exchange.

As the branches indicates, iv is ______

A. finance   B. commerce   C. construction   D. exchange.

A personal computer on sale in an office equipment shop is an example of ______

A. stock    B. fixed asset    C. liability    D. fixed capital

The main source on pollution in Nigeria is _______

(a) industrial waste   (b) organic waste   (c) domestic waste   (d) gas flaring

The total of the share capital which a company would be allowed to issue is known as ______

A. called up capital   B. paid- up capital   C. nominal capital   D. issued capital.

The abbreviation E & O. E. on an invoice seeks to ______

A. draw the attention of the buyer to the contents of the document.
B. show that there is no error about prices quoted on the invoice.
C. protect the seller against any error on the document.
D. draw the attention of the seller to the contents of the document.

When an organization studies a market that is underserved by others and creates a product or service for the segment, it is engaged in ______

A. product differentiation    B. market integration   C. market positioning    D. market orchestration

The satisfaction of consumers in all business activities is emphasized by ______

A. market research.     B. marketing concept.     C. marketing mix.     D. product differentiation.

Those who are engaged in the distribution of goods belong to _______

A. commercial occupation.     B. extractive industry.     C. manufacturing industry.     D. construction industry.

The Central Bank’s monetary policy instrument by which it buys and sells Treasury bills is known as _________

A. Open Market Operation.
B. Bank rate.
C. Cash reserve ratio.
D. Special deposit.

Which of the following protects consumers against poor quality goods?

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

The merger of a textile mill, a cement company and a tannery is referred to as ______

A. vertical merger   B. conglomerate merger   C. horizontal merger   D. lateral merger.

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.

A group of companies is a collection of ______

A. subsidiaries and their holding company
B. firms
C. associates and their holding company
D. industries.

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.

In order to increase the capital owned, a sole trader may ______

(a) seek for bank loan
(b) issue debentures
(c) draw less of his profit for personal use
(d) acquire extra shop fittings credit

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

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

What is the role of the capital market in the privatization exercise in Nigeria?

A. Advertising for government
B. Negotiating with individuals who want to buy public companies
C. selling the shares and stocks of the companies to be privatized
D. Encouraging private companies to participate in the exercise.

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.

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.

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.

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

When the government gives up its ownership and control of a business to individuals, this is known as _______

A. nationalization.    B. commercialization.    C. privatization.    D. indigenization.

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.

An efficient transport system enables a trader to _______

A. widen the market for his products.
B. avoid customs examination of goods.
C. adopt better price policy.
D. reduce cost of production.

The object clause of a limited liability company is stated in the ______

A. Memorandum of Association
B. Article of Association
C. Certificate of incorporation
D. Trading certificate

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

Buying, selling and distribution of goods and services are components of ______

(a) retail trade   (b) commerce    (c) wholesale trade   (d) marketing

A major benefit derivable from the privatization and commercialization of public enterprises in Nigeria is _______

A. revenue generation
B. information technology
C. employment generation
D. increase in wages.

A term which describes the value of business connections made by a company over the years is known as ______

A. patent    B. copyright    C. goodwill    D. trade mark

Which of the following price quotations requires the buyer to take delivery at the manufacturer’s warehouse?

A. Ex-works    B. F.O.R    C. F.O.B    D. F.A.S

An order sent by an importer to an overseas supplier stating the details of goods required is known as ______

A. ship’s manifest   B. an indent   C. bill of lading   D. export invoice.

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

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

The final link in the chain of distribution is ______

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

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

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.

Which of the following distinguishes home trade from foreign trade?

A. Payments are easily arranged
B. Taxies are levied.
C. Goods have to be warehoused.
D. Middlemen are not required.

The coming together of consumers to protect their rights is referred to as _____

(a) consumerism   (b) consumer sovereignty    (c) estoppel   (d) caveat emptor

Which of the following is not contained in a consignment note'?

A. Name of the buyer     B. Name of the seller     C. Description of goods     D. Cost of goods

A major factor that affects business operations is _______

(a) technology   (b) supply   (c) rivalry    (d) product