A voluntary association which consists of people who represents a cross section of business interests in an area is a
A)Trade Association
B)Trade Union
C)Chamber of Commerce
D)Consumer's Association
When a ship overstays the allowed number of days at the port, it is made to pay
A)interest
B)tariff
C)demurrage
D)commission
The place where bankers meet daily to exchange cheques drawn on each other is known as
A)interest
B)tariff
C)demurrage
D)commission
An advertising campaign designed to sell one's own products at the expense of other brands is
A)competitive
B)persuasive
C)direct
D)informative
The issue of Certificate of Incorporation to a company means that it has
A)started production
B)legally come into being
C)appointed a board of directors
D)merged with another company
The part of authorized capital of a company sold to shareholders is
A)paid-up capital
B)called-up capital
C)issued capital
D)nominal capital
A person who contributes money to a partnership business and is also involved in its general supervision is called
A)an active partner
B)a limited partner
C)a dormant partner
D)a nominal partner
A business obtains part of its short-term capital from
A)bonds
B)debentures
C)trade credit
D)ordinary shares
A postal service that allows a company's customers to reply to its advertisements at the expense of the company is
A)recorded delivery service
B)post restante
C)express delivery service
D)business reply service
A cheque bearing a date showing that it was issued more than six months ago is termed a
A)blank cheque
B)bearer cheque
C)stale cheque
D)order cheque
A system of buying products from a machine is known as
A)Impulse buying
B)branding
C)automatic vending
D)loss leader
Carpentry is an activity classified under
A)extractive occupation
B)tertiary occupation
C)commercial occupation
D)constructive occupation
A system of buying goods by an agent where the supplier is determined by the principal is
A)tied shop
B)closed shop indent
C)open indent
D)ring trading
One of the functions of a central bank is to
A)perform supervisory role among all the banks in the country
B)provide the means of payment to individuals
C)ensure the smooth transfer of shares
D)accept private deposits
A fixed deposit account is beneficial to its holders because
A)cheques can be issued to settle huge debts
B)customers can become shareholders of the bank
C)it attracts higher interest rate
D)it allows customers overdraw their accounts
An amount paid by a bull who wishes to defer the purchase of shares to the next accounting period is
A)brokerage
B)backwardation
C)contango
D)commission
Foreign trade is concerned with
A)exchange of goods and services among companies
B)buying and selling of imported goods
C)exchange of goods and services among citizens
D)buying and selling of goods and services among countries
The distribution of goods creates
A)time utility
B)place utility
C)form utility
D)possession utility
The documents issued by the Registrar of companies which allows a public company to commence business is called
A)trading certificate
B)prospectus
C)certificate of incorporation
D)memorandum of association
The throwing of goods over board to prevent a ship from sinking is known as
A)floatsam
B)abandonement
C)jettison
D)particular average
In insurance, risks that have no statistics for their calculations are
A)insurable risks
B)certain risks
C)un-insurable risks
D)uncertain risks
The practice of selling goods in foreign countries at lower prices than obtainable int he exporting country is known as
A)entrepot trade
B)dumping
C)hedging
D)counter trade
The entertainment industry is classified under
A)extractive industry
B)manufacturing industry
C)constructive industry
D)commercial industry
Buying on impulse is encouraged by
A)co-operative shops
B)hawkers
C)supermarket
D)mail order firms
A principal member of the stock exchange who buys and sells securities on his own is a
A)jobber
B)promoter
C)broker
D)speculator
Consumer protection council places an obligation on producers to ensure that their products
A)are wholesome and safe
B)are cheap
C)do not evade customs examination
D)are branded
The target of all marketing activities is the
A)consumer
B)middleman
C)producer
D)distributor
Small-scale retailers continue to exist in spite of the dominance of large firms because they
A)render personal service
B)employ few salesmen
C)can raise large capital from relatives
D)deal in specific goods
Buildings and machinery purchased for use in business are examples of
A)current assets
B)fixed assets
C)capital employed
D)paid up capital
A firm that specializes in packing and shipping of goods is known as a
A)forwarding agent
B)general agent
C)del credere agent
D)cargo handling company
Which of the following is a function of marketing department in a firm?
A)Add value to goods and services
B)Protect those who engage in business transactions
C)initiate general policies in the organization
D)Handle all staff masters in the system
An individual or company that engages in the transportation of any type of goods for a fee is called a
A)common carrier
B)hawker
C)porter
D)clearing agent
Debentures which are secured by the fixed assets of a company are called
A)Mortgaged Debenture
B)Naked Debenture
C)Redeemable debenture
D)irredeemable Debenturs
The central bank sometimes calls for special deposits from the commercial banks in order to
A)reduce bank lending
B)increase bank lending
C)withraw defaced currencies
D)issue notes and coins
A system of sales where goods are sold to the highest bidder is known as
A)credit sale
B)hire purchase
C)clearance sale
D)auction sale
The term "fiduciary issue" means
A)money issued without gold backing
B)money issued with gold backing
C)money issued as currency note
D)gold reserve
An insurance principle which prevents an insured from making profit when compensated is known as
A)proximate cause
B)indemnity
C)insurable interest
D)utmost good faith
A retail outlet with many branches all dealing in similar line of goods is described as a
A)department store
B)supermarket
C)chain store
D)hypermarket
A person who gave his building as a security for loan is known as a
A)trustee
B)mortgagee
C)mortgagor
D)guarantor
"Net 3 months" on an invoice means the buyer will
A)pay interest after 3 months
B)gets discount if he pays within 3 months
C)pay full invoice amount after 3 months
D)have discount if he pays after 3 months
The ratio between a country's exports and her imports prices is the
A)balance of trade
B)balance of payments
C)terms of trade
D)exchange rate
The charge paid to a ship owner for the unused part of a ship is known as
A)penalty
B)dock dues
C)dead freight
D)demurrage
Fidelity guarantee insurance will only cover
A)cashier's fraud
B)daylight robbery
C)loss of profit
D)unpaid loan
In the absence of the bill of lading, which of the following is used o clear the goods
A)Bill of sight
B)Dock warrant
C)Certificate of Origin
D)Mate's receipt
A price quotation which includes all the expenses involved in loading the goods into a ship is
A)Free on Board (FOB)
B)Free Alongside Ship (FAS)
C)Cost, Insurance, Freight (C.I.F)
D)ex-ship
Shares, bonds, stocks and debentures traded on the stock exchange are collectively called
A)collaterals
B)commodities
C)resources
D)securities
In a hire purchase contract, the customer becomes the legal owner of the goods by
A)paying the last installment
B)paying the first installment
C)taking possession of the goods
D)paying half the purchase price
Which of the following is engaged in commercial occupation?
A)a brick layer
B)an engineer
C)an insurance broker
D)a barber
THEORY
Compare a public limited company with partnership under the following headings
(a) formation:
(b) Ownership and Control:
(c) Source of Capital:
(d) Liability:
(e) Dissolution:.
(a) Define a multiple shop
(b) State three features of a multiple shop
(c) Explain three advantages and three disadvantages of a Multiple shop.
(a) State five problems of barter system of trading
(b) Explain five ways in which the introduction of money has solved the problems stated in 3 (a) above.
Explain each of the following insurance concepts
(a) non indemnity insurance
(b) Group insurance
(c) Re-insurance
(d) Under insurance
(e) Consequential loss insurance.
(a) What is packaging
(b) State three disadvantages of packaging
(c) State five reasons for the packaging of products by Manufacturers.
(a) What is a stock exchange market.
(b) Explain six functions of the stock exchange market
(a) Explain current assets giving two examples.
(b) State two uses of working capital
(c) The state of affairs of Zig stores as at 31st December, 2009 shows the following.
Furniture and fittings 30,000
Motor van 164,000
Stocks 76,000
Debtors 50,000
Creditors 60,000
Cash in hand 20,000
Bank overdraft 10,000
You are required to calculate Zig Stores:
(i) current liabilities (ii) current assets (iii) working
(a) Define a contract of sale
(b) Outline six items that must be contained in a contract sale.
a) Explain the term “exchange in commerce
b) What is impulse buying?
a) What is branding?
b) State three advantages of branding to each of the following:
Manufacturer;
Retailer;
Consumer
: