2017 JAMB COMMERCE
Question 1
Which of the following has powers to order withdrawal of a particular food item from circulation?
A. Standards Organisation of Nigeria
B. Federal High Courts in Nigeria
C. Food and Drugs Department of the Federal Ministry of Health
D. Local government health inspectors
Answer: C. Food and Drugs Department of the Federal Ministry of Health
Explanation: Food and drug authorities under the Federal Ministry of Health, such as NAFDAC, may require harmful products to be withdrawn from circulation.
Question 2
Which of the following maxims negates the principle of collective bargaining?
A. Individual employees have equal bargaining base
B. Individual employees attain strength when they come together in a union
C. Only members of the union can benefit from agreement negotiated by the union
D. Collective bargaining covers the vast majority of employees, whether union members or not
Answer: A. Individual employees have equal bargaining base
Explanation: Collective bargaining enables employees to increase their negotiating strength through shared representation. Saying individual employees already possess equal bargaining power conflicts with this purpose.
Question 3
NACCIMA stands for
A. Nigerian-American Centre for Culture, Industry, Mines and Arts
B. Nigerian Association for Culture, Civics, Industry, Minerals and Arts
C. National Agency for Culture, Civilization, Investments, Manufacturing and Agriculture
D. Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture
Answer: D. Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture
Explanation: NACCIMA stands for Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture.
Question 4
For the establishment of a powerful consumers’ association in Nigeria to exist, there must be
A. Financial and moral support from the public
B. Honest and committed leadership
C. Allocation of goods from the producers
D. Freedom from external influence
Answer: D. Freedom from external influence
Explanation: External interference contributes to the failure of many Nigerian associations. Greater freedom to operate could help them perform beyond their present level.
Question 5
Which of the following is the most important business resource?
A. Money
B. Management
C. Materials
D. Manpower
Answer: D. Manpower
Explanation: People are a business’s most important resource. Human effort makes virtually all business activities possible, whereas little can be achieved without it.
Question 6
The assembling of products into usable forms is known as
A. Manufacturing
B. Creation
C. Construction
D. Formation
Answer: A. Manufacturing
Explanation: Manufacturing transforms raw materials into finished products, making them more useful.
Question 7
One of the requirements necessary for setting up a business is
A. Documentation
B. Registration
C. Advertisement
D. Knowledge of the business
Answer: D. Knowledge of the business
Explanation: A business promoter needs a clear understanding of the enterprise they intend to establish.
Question 8
Which of these factors of production is relatively fixed in supply?
A. Natural resources
B. Human resources
C. Capital
D. Entrepreneur
Answer: A. Natural resources
Explanation: Natural resources belong to the land factor of production, whose supply is fixed.
Question 9
In the event of the liquidation of a company, the first to be settled are
A. Members of the board
B. Ordinary shareholders
C. Debenture holders
D. Preference shareholders
Answer: C. Debenture holders
Explanation: When a company winds up, creditors are paid first, beginning with short-term creditors and then long-term creditors before other claimants.
Question 10
Entrepreneurship mainly involves
A. Knowledge
B. Risk-taking
C. Initiating
D. Skilled manpower
Answer: B. Risk-taking
Explanation: Bearing risk is a defining characteristic of an entrepreneur.
Question 11
Public relations and advertising are similar in terms of
A. Customer education
B. Creating a favourable attitude
C. The mode of operation
D. Communicating product information
Answer: B. Creating a favourable attitude
Explanation: Public relations seeks to build a positive attitude towards the company it represents.
Question 12
Which of the following best describes inputs for any production activity?
A. Material resources
B. Human resources
C. Business resources
D. Natural resources
Answer: C. Business resources
Explanation: A business uses financial, material and human resources. These resources flow into and out of its operations.
Question 13
Personal selling is most effective in marketing industrial goods because it involves
A. After-sales services and product demonstrations
B. Demonstrations and product acceptability
C. Personal interaction and information gathering
D. Recognition and attachment to customers
Answer: A. After-sales services and product demonstrations
Explanation: Industrial goods often need installation, demonstrations and after-sales support, making personal selling especially appropriate.
Question 14
The controllable variables that a firm uses to achieve its marketing objectives are called
A. Marketing functions
B. Marketing principles
C. Marketing concepts
D. Marketing mix
Answer: D. Marketing mix
Explanation: Management can decide the marketing mix of product, price, place and promotion. These are therefore controllable business variables.
Question 15
The body regulating the sale and purchase of shares in Nigeria is the
A. Securities and Exchange Commission
B. Corporate Affairs Commission
C. Nigeria Stock Exchange
D. Securities and Exchange Tribunal
Answer: A. Securities and Exchange Commission
Explanation: The Securities and Exchange Commission oversees activities on the Nigerian stock exchange.
Question 16
Unresolved disputes between the employer and employees are usually referred to the
A. Code of Conduct Bureau
B. Personnel unit
C. Disciplinary committee
D. Industrial Arbitration Tribunal
Answer: D. Industrial Arbitration Tribunal
Explanation: When negotiations fail, the industrial court or industrial arbitration tribunal resolves disputes between employers and employees.
Question 17
The process of eliminating a virus from a computer program is
A. Programming
B. Debugging
C. Formatting
D. Looping
Answer: B. Debugging
Explanation: Debugging identifies and removes actual or potential errors, called bugs, in software code that could produce unexpected behaviour or crashes.
Question 18
The primary memory component of a computer is the
A. Cache
B. Console
C. Assemblers
D. Compilers
Answer: A. Cache
Explanation: A cache is a hardware or software facility that retains data to speed up later access. It may hold results of earlier calculations or copies of data kept elsewhere.
Question 19
A customer with XYZ Plc sent money through his account to his sister’s account in another branch. This is an example of
A. E-business
B. E-commerce
C. E-finance
D. E-banking
Answer: D. E-banking
Explanation: Electronic banking, or e-banking, transfers funds using electronic signals instead of exchanging cash, cheques or other paper documents.
Question 20
The economic environment of a business is concerned with
A. Climatic conditions
B. Changing values
C. The growth rate
D. The interest rate
Answer: C. The growth rate
Explanation: The growth rate is an element of a business’s economic environment.
Question 21
The sales of goods through a medium that accepts money and delivers the items to the customer is
A. An automated teller machine
B. A vending machine
C. A counting machine
D. A branding machine
Answer: B. A vending machine
Explanation: A vending machine automatically receives payment and dispenses goods according to the amount inserted.
Question 22
The main purpose of branding is to
A. Create identity for a product
B. Make a product look attractive
C. Create product awareness
D. Increase sales volume
Answer: A. Create identity for a product
Explanation: Branding establishes a product’s identity by giving it a distinctive name that separates it from close substitutes.
Question 23
The basis for international trade is embedded in the principle of
A. Absolute advantage
B. Globalization
C. De-regulation
D. Comparative advantage
Answer: D. Comparative advantage
Explanation: Comparative cost advantage suggests that countries should specialize in producing and exporting goods they can make at a relative cost advantage.
Question 24
The major problem encountered in international trade is that of
A. Distance
B. Differences in culture
C. Politics
D. Differences in currency
Answer: A. Distance
Explanation: The distance goods must travel is a major difficulty in international trade and can discourage exporters.
Question 25
The document a seller uses in dispatching goods to a customer by a carrier is
A. A bill of lading
B. An invoice
C. An advice note
D. A delivery note
Answer: D. A delivery note
Explanation: A delivery note accompanies a shipment and lists the goods supplied and their quantities.
Question 26
The physical and psychological satisfaction a customer derives from the purchase of goods and services is
A. Price mix
B. Production mix
C. Marketing mix
D. Promotion mix
Answer: B. Production mix
Explanation: Production mix.
Question 27
Which of the following aspects of marketing stimulates buying by providing free gifts?
A. Personal selling
B. Sales promotion
C. Advertising
D. Publicity
Answer: B. Sales promotion
Explanation: Sales promotion encourages purchases through incentives, such as receiving three items for the price of two or paying 70% of the total purchase cost.
Question 28
Which of the following is used as a pricing policy?
A. Labelling
B. Packaging
C. Market selection
D. Market skimming
Answer: D. Market skimming
Explanation: Market skimming introduces a product at a high price and progressively lowers it to reach additional buyers.
Question 29
Mr. Taiwo entered into a contract to let a car to Mr. Bunmi for his wedding for two days. However, the car had an accident before the first day. Mr. Bunmi attempted to claim damages but failed. This implies that the contract was terminated by
A. Bankruptcy
B. Frustration
C. Breach
D. Lapse of time
Answer: B. Frustration
Explanation: The accident was outside Mr. Taiwo’s control. An event beyond a contracting party’s control may cause the agreement to end through frustration.
Question 30
Hire purchase is advantageous to the seller in that
A. It elevates his living standard
B. His turnover will increase
C. People pay incrementally
D. It enhances level of patronage
Answer: B. His turnover will increase
Explanation: Hire purchase can raise a seller’s turnover because its credit facility attracts more customers.
Question 31
The breaking down of a market into separate and identifiable elements is known as
A. Differentiation
B. Segmentation
C. Penetration
D. Skimming
Answer: B. Segmentation
Explanation: Market segmentation separates the target market into accessible groups sharing similar interests.
Question 32
A country’s terms of trade are said to improve when the ratio of her export
A. Decreases
B. Equals import
C. Remains constant
D. Increases
Answer: D. Increases
Explanation: A country’s terms of trade improve when the rate at which its exports pay for imports increases.
Question 33
Money is generally acceptable for transaction due to
A. The legal backing
B. The rule of law
C. The Central Bank Governor’s signature
D. Its acceptability in the global market
Answer: A. The legal backing
Explanation: Money’s legal backing supports its general acceptance as a medium of exchange.
Question 34
Which of the following advertising media appeals to only the literate in the society?
A. Radio advertising
B. Cinema advertising
C. Print advertising
D. Television advertising
Answer: C. Print advertising
Explanation: Printed media require literacy, so only people who can read and write can benefit from them.
Question 35
The essential utility derived from the use of products is known as
A. Augmented benefit
B. Branded benefit
C. Formal benefit
D. Core benefit
Answer: D. Core benefit
Explanation: Utility means usefulness. The essential utility a product supplies is its core benefit.
Question 36
The coming together of consumers to protect their rights is referred to as
A. Consumerism
B. Consumer sovereignty
C. Estoppels
D. Caveat emptor
Answer: A. Consumerism
Explanation: Consumerism seeks to safeguard consumers’ interests and ensure they receive value for their money.
Question 37
The final link in the chain of distribution is
A. Middlemen
B. Retailing
C. Wholesaling
D. Consumer
Answer: D. Consumer
Explanation: A distribution channel traces goods as they pass from the producer to the final consumer.
Question 38
The sub-division of a market into homogeneous subsets of consumers with relatively similar product needs is
A. Marketing concept
B. Marketing mix
C. Market segmentation
D. Market research
Answer: C. Market segmentation
Explanation: Market segmentation separates the target market into accessible groups sharing similar interests.
Question 39
A contract can be terminated through
A. Physical combat
B. Family intervention
C. Consultation
D. Frustration
Answer: D. Frustration
Explanation: Frustration ends a contract when an unexpected event, attributable to neither party, makes performance impossible or fundamentally different from the original agreement.
Question 40
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 crediting account
Answer: A. Credit transfer system of payment
Explanation: Through credit transfer, an employer funds the complete payroll and directs the bank to send the specified payments to employees’ accounts.