1. The practice of giving a particular name to a product by a manufacturer is

A. branding

B. standardization

C. publicity

D. advertising


2. An extra commission paid to an agent who guarantees credit sales made by firm is

A. del-credere

B. guarantor’s fee

C. jobber’s turn

D. brokerage


3. A professional in insurance who evaluates the level of loss for claims is an

A. adjuster

B. assessor

C. underwriter

D. actuary


4. The insurance service rendered to a foreign shipping company are treated as

A. invisible export

B,. invisible import

C. visible export

D. balance of trade


5.Dividing the market for a product according to potential buyers who have common characteristics is

A. market analysis

B. market penetration

C. market segmentation

D. market research


6. Which of the following aids to trade  facilitates production ahead of demand

A. insurance

B. transportation

C. Advertising

D. Warehousing


7. When a government acquires business enterprise formerly owned by individuals, it is termed

 A. commercialization

B. indigenization

C. privatization

D. nationalization


8. How many countries make up River Niger Basin Commission?

A. 16



D. 9


9. Which of the following means of payment makes bank both drawer and drawee

A. Standing order

B. Bill of exchange

C. Bank draft

C. Opening Cheque


10. An association that protects the interest of members in the same line of business is a

A. Consumer Association

B. Trade union

C. Trade Association

D. Chamber of Commerce


Use the following information to answer question 11 to 13.

Bamidel Co. Ltd has authorised capital of 40,000,000 ordinary share of N4 each. Shares issued and fully paid are N25,000,000.


11. The value Bamidele Co. Ltd’s authorized share capital is

A. N160,000,000

B. N100,000,000

C. N65,000,000

D. N40,000,000


12. The value of the issued capital of the company is

A. N160,000,000

B. N100,000,000

C. N65,000,000

D. N15,000,000


13. The un-issued capital amounts to

A. N160,000,000

B. N60,000,000

C. N40,000,000

D. N15,000,000


14. Which of the following aids to trade is used to stimulate demand for goods?

A. Banking

B. Transport

C. Insurance

D. Advertising


15. The term consumer sovereignty means that

A. seller is the king

B. product is supreme

C. buyer is the king

D. producer is the king


16. Which of the following activities is classified under extractive industry?

A. Exploration of minerals

B. Construction of roads

C. Canning of tomatoes puree

D. Assembling of cars


Use the information below to answer questions 17 and 18

BYX Enterprises has the following balance at the end of March 2010

Opening Stock

D 6,000





Closing Stock





17.Calculate the gross profit of BYX Enterprise

A. D13,000

B. D 9,000

C. D 5,000

D. D 1,000


18 What is the turnover of BYX Enterprises?

A 5.0 times

B. 3.5 times

C. 3.0 times

D. 1.5 times


19. Which of the following workers is engaged in construction occupation?

A. Mason

B. Shop Assistant

C. Farmer

D. Train Driver


20.  A cheque which the bank refused to pay because the drawer had insufficient funds in his account is

A. a bounced cheque

B. a bearer cheque

C. a crossed cheque

D. an order cheque


21. Which of the following is a function of the retailer to the wholesaler?

A. Providing after sales services


B. providing information on market trends

C. Sales of variety of goods

D. Sales of goods in smaller quantities


22. The term utmost good faith in insurance means

A.  Both the insured and insurer must disclose all information

B. only the insurer must disclose all information

C. the beneficiary must disclose all information

D. only the insured must disclose all information


23. Which of the followinmg units enjoys government subsidies

A. Private Limited company

B. Limited partnership

C. public limited company

D. Public corporation


24. Duty drawback refers to duties paid on

A. exported goods  produced with local content

B. re-exported goods previously imported

C. imported goods for sales locally

D. locally manufactured goods for sales locally


25. The capital that is used in the day to day running of a business is

A. nominal capital

B. working capital

C. paid up capital

D. authorized capital


26. Which of the following is classified under current asset?

A. machinery

B. Motor Vehicle

C. Stock

D. Fittings


27. The reduction in value of a country’s currency in relations to other is

A. redenomination

B. devaluation

C. inflation

D. deflation


28. Retail outlets which sell from specialized vans are called

A. supermarkets

B. multiple shops

C. mail order firms

D. mobile shops


29. Which of the following is an aspect of marketing concept?

A. product differentiation

B. sales orientation

C. Consumer orientation

D. price Differentiation


30. The practice of selling goods in foreign markets at price lower than the cost price is

A. fair trading

B. under invoicing

C. hedging

D. dumping


31.A cheque made payable to named person is

A. a crossed cheque

B. a certified cheque

C. an order cheque

D.a confirmed cheque


32. A house insured against damage by flood was burnt down and the owner has no claims. Which of the following principle prevented him for making claims?

A. indemnity

B. Contribution

C. Insurable interest

D.Proximate market


33. The market for short term capital is called

A. commodity market

B. discount market

C. money market

D. stock market


34. Which of the following principle of Insurance stipulates that the insured must be in a position to suffer financial loss?

A. Indemnity

B. proximate cause

C. Insurable interest

D. Subrogation


35.When share are sold”ex-div” it means the

A. buyer is entitled to the next dividend

B. shares are sold at par

C. shares are sold above par

D. Seller has right to the next dividend


36. Turnover could be increased by  

A. increasing prices and product differentiation

B. advertising and cutting prices

C. refusing credits and customer services

D. increasing the mark up and margin


37. Commerce started as a result of

A. speculation

B. competition

C. specialization  

D. nationalization


38.Which of the following is used for making payments to many people in a single cheque

A. Debit transfer

B. certified cheques

C. Bank draft

D. Credit transfer


39. Equity interest in a company us represented by  

A. Preference share

B. Dividend

C. debenture

D. ordinary share


40.When two insurers are liable under a given common policy, the principle of insurance that applies

A. indemnity

B. subrogation

C. proximate cause

D. contribution


41. All activities aimed at creation of goods image for an organization are referred to as

A. market segmentation

B. market research

C. public relation

D. consumer orientation


42. Which of the following is a disadvantage of foreign trade?

A. it encourage dumping

B. it widens the world market

C. it encourage specialization

D. it provides variety of goods


43.A study to discover consumers’ preference and need is called

A. market segmentation

A .consumer orientation

C. market research

D. marketing mix


44.Which of the following is a disadvantage of retailing?

A. selling on credit

B. lower prices of goods

C. selling in smaller quantities

D. location of convenient places


 45. A  private limited liability company differs from a public limited company because it

A. does not issues its shares to the public

B. has a separate entity

C. has many directors

D. is a going concern


46.A tax charged in proportion to the value of imported goods is

A. specific duty

B. ad valorem duty

C. custom duty

D. exercise duty


47. Which of the following is a reason for the failure of public corporations?

A. Legal requirement

B. Inadequate funding

C. Political stability

D. Lack of competitions


48.The factor that is not considered when determining the means of transport suitable for cargo is

A. size

B. weight

C. manufacturer

D. perishability


49. Which of the following is a document of title of goods

A. bills of exchange

B. bill of entry

C. letter of hypothecation

D. bill of lading


50. The fee paid of transporting goods by ship is

A. fare

B. freight

C. demurrage

D. charges