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COMMERCE EXAM QUESTIONS FOR

SS1 THIRD TERM
 12 minutes read

THIRD TERM SS1 COMMERCE EXAM

QUESTIONS – EDUDELIGHT.COM

Examination malpractices may lead to a repeat of the subject or suspensions

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SUBJECT COMMERCE CLASS: S. S. S ONE DURATION 2HRS

SECTION A
 1. The process of buying, selling and distribution of goods and services is
known as (a) retail trade (b) commerce (c) marketing concept (d)
marketing mix (e) wholesale trade

2. The practice of employing specialist in relevant occupations is a feature

of (a) subsistence economy (b) mobility of labor (c) mixed
economy (d) exchange economy (e) division of labor

3. Which of the following converts raw materials into finished

goods? (a) extractive industry (b) manufacturing industry (c)
commercial occupation (d) constructive industry (e) tertiary industry

4. Production ends when goods (a) and services are used by the producer
(b)are packed and labeled (c) are sold in the market (d) and services
reached the final user (e) are advertised to be consumed

5. The assured is the (a) insurance company (b) insurance company’s client
(c)insurance broker (d) insurance agent (e) insurance manager

6. Organization formed mainly by traders and manufacturers to cater for the

interest of their members is called (a) trade union (b) co-operative
societies (c) trade association (d) chamber of commerce (e)
manufacturers associations

7. If a business man import stock fish with a view to export them to other
countries, this form of trade is known as (a) invisible trade (b) entrepot
trade (c) export trade (d) import trade (e) bilateral trade

8. A deficit in the balance of trade occurs when (a) visible export exceed
visible imports (b) total payment exceed visible export (c) visible imports
exceed visible exports (d) invisible export exceed invisible import (e)
visible export exceed invisible imports

9. The factor of production which is described as wealth set aside for the
production of further wealth is called (a) entrepreneur (b) land (c) capital
(d)goodwill (e) labor

10. Buying and selling of goods and services within the geographical areas of
a country is called (a) entrepot trade (b) external trade (c) domestic
trade (d) regional trade (e) import trade

11. Which of the following conditions may make the manufacturer sell
directly to the consumer? (a) break in communication (b) inaccessibility
of wholesaler\s warehouse (c) the nature of the commodity involved
(d)inadequate transport facility (e) trade in balance
12. Which of the following is primarily responsible for protecting consumers
against poor quality goods? (a) Nigerian National Supply Company
(b)Manufacturers Association of Nigeria (c) Industrial Arbitration
Panel (d) Standards Organization Of Nigeria (e) Nigeria Chamber of
Commerce

13. Information about new goods is passed on to buyers through (a)

wholesale trade (b) retail trade (c) market research (d) advertising (e) the
manufacturer

14. The main disadvantage of rail transport to the trader is that (a) it carried
bulky goods only (b) its cost of carriage is high (c) it is slow and inflexible
(d) it causes road congestion (e) it travels on schedule

15. Warehousing is one of the functions of the (a) wholesaler (b) retailer
(c)chamber of commerce (d) ministry of trade and industry (e) export
promotion department

16. Which of the following is not one of the functions of warehousing?

(a) goods are available where they are required (b) goods are
stored until required (c) production takes place ahead of demand (d)
change are avoided in price which may result from shortage and gluts (e)
goods are available when required

17. The last link in the chain of distribution is the (a) wholesaler (b)
retailer (c) consumer (d) factor (e) advertiser

18. Which of the following is an insurance principle? (a)

endowment (b) premium (c) proximate cause (d) fidelity
guarantee (e) surrender value

19. The major division of commerce are (a) import, export and transport
(b)trade, communication and warehousing (c) trade and auxiliaries to
trade (d) exchange, consumption and production (e) import, trade and
production

20. Which of the following statements is not true? (a) Commercial services
are the life blood of the country’s economic system. (b) there cannot
occur commercial services until goods have been produced (c) without
commercial services most goods and services will not be produced (d)
there is no stage of production that does not employ commercial
services (e) commercial services add to the value of a product.
21. The oldest and commonest form of business in Nigeria is (a) partnership
(b)the co-operative society (c) sole proprietorship (d) joint stock venture
(e)public corporation

22. Which of the following is not a factor of production? (a) capital (b) land
(c)labor (d) entrepreneur (e) staffing

23. In which class of occupation would you place a taxi-driver? (a) extractive
(b) indirect services (c) personal services (d) primary production
(e)commercial services

24. The exchange of goods for other goods in home trade is known as
(a)entrepot trade (b) home trade (c) barter trade (d) Foreign trade
(e)counter trade

25. A business is in existence primarily to (a) make profit (b) provide goods
and services (c) provide employment (d) compete with others in business
(e)sell goods at reasonable price

26. A number of shops under one roof is the feature of a (a)supermarket

(b)chain store (c) department store (d) order business (e) shopping
centre

27. Entrepot trade refers to (a) importing for domestic consumption

(b)importing for industrial use (c) importing government concerns (d)
exporting for factory use (e) importing for re-exporting

28. An individual who makes the final use of goods and services provided by
a firm is the (a) manufacturer (b) wholesaler (c) consumer (d) retailer
(e)trader

29. In insurance the term Uberrimae fidae stand for (a) utmost good faith
(b) subrogation (c) insurable interest (d) indemnity against loss
(e)proximate cause

30. The amount paid by the insurance company to the insured upon giving up
his policy is called (a) surrender value (b) cash bonus (c) assured sum
(d)dividend (e) premium

31. An overdraft is usually granted to a (a) saving account holder (b) deposit
account holder (c) current account holder (d) loan account holder (e)
fixed deposit account holder

32. The production of goods in anticipation of demand is made possible by

(a)packaging (b) warehousing (c)branding (d) advertising (e) transporting
33. Which of the following is not the function of a small retailer? (a)
supplying goods to the final consumer (b) breaking goods into small units
(c) granting credits to known customers (d) furnishing information to the
wholesaler (e)selling in large quantities.

34. The reward of capital is (a) dividend (b) interest (c) profit (d) rent (e)
rebate

35. Which of the following is not an advantage of advertising? It (a) gives

information about products (b) increase sales (c) increase
production (d) improves the quality of product (e) introduces
new product

36. Retail outlets which sell from specialized vans are (a) super
markets (b) multiple shops (c) mail order firm (d) department
store (e) mobile shops

37. The sole purpose of production is (a) employment (b) promotion

(c)consumption (d) competition (e) enterprise

38. Which of the following is concerned with obtaining raw material from
their natural locations? (a) extractive industry (b) manufacturing
industry (c) constructive industry (d) transport industry (e)
engineering industry

39. The market for short term loans is known as the (a) capital
market (b) discount market (c) money market (d) stock market
(e) open market

40. The main criticism of advertising is that it (a) leads to increase in the size
of the market (b) leads to war of brands (c)increase the price of product
(d) decreases employment opportunities (e) uses bad language

41. Workers involved in mining, quarry or fishing are engaged in (a)

secondary production (b) primary production (c) tertiary production (d)
the manufacturing industry (e) the construction industry

42. Which of the following is not a method of trade restriction (a) exchange
control (b) stock exchange (c) import license (d) embargo (e) quota

43. Which of the following is a retail outlet to eliminate the profit of middle
man? (a) producer co-operative (b) consumer co-operative (c) thrift and
credit society (d) department store (e) Multiple shop
 44. A trade deficit means that (a) the balance of trade is favorable (b)
export are less that imports (c)import are less than exports (d)export are
decreasing (e)the balance of payment is unfavorable

45. Building, machines and motor vehicles used for purpose of production
are example of (a) current assets (b) current liabilities (c) working capital
(d)fixed assets (e) liquid assets

46. Who among the following is not a middle man? (a) a retailer (b) broker
(c)factor (d) consumer (e) wholesaler

47. The reward of land as a factor of production is known as (a) interest (b)
rent (c) profit (d) wage (e) toll

48. The relationship between a country’s total receipts and payment in

international trade in a given year is called (a) balance of trade (b)
balance of payment (c) terms of trade (d) balance of current account (e)
balance on capital account

49. The three main division of production are (a) extraction, manufacturing
and construction (b) import, export and entrepot (c) industry, commerce
and direct services (d) land, labour and capital

50. Into which of the following two broad areas can trade be divided? (a)
home and foreign trade (b) home and retail trade (c) wholesale and retail
trade (c)foreign and wholesale trade (d) import and exports

THIRD TERM SS1 COMMERCE EXAM QUESTIONS – EDUDELIGHT.COM

SECTION B

ANSWER ANY 5 IN ALL

1a. What is production?

b. Explain the following (i) Primary Production

(ii) Secondary Production

(iii) Tertiary Production

c. List and explain factors of production

2a. Define retailing

b. Give two examples of small-scale retail outlets and three examples of

large scale retail outlets

c. Explain 5 functions of a retailer

3a. Define (i) custom and excise authority

ii. port authority

b. Explain 5 functions of the customs and excise authority.

4a. Define sole proprietorship

b. Outline 5 attributes of ole trading .

c. List 5 sources of capital available to a sole trader.

5a. State 5 sources of capital for partnership

b. Define partnership

c. List and explain 3 types of partnership.

6. Write short note on he following, showing their main uses in foreign

trade.

a. Shipping note b. Shipping Manifest c. Consular invoice d.

Dock warrant

e. Bill of lading

7a. Define transportation

b. Explain 5 benefits of transportation

c. outline 5 factors that determine the choice of transportation

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THIRD TERM SS1 COMMERCE EXAM QUESTIONS – EDUDELIGHT.COM

SS 1

Commerce

Answer all questions

I. The study of all the activities involved in the distribution of goods and
services is known as A. Trade B. Commerce C. AIDS to trade D. Chain of
distribution

2. The final person and the last link in the chain of distribution is are
respectively A. Consumer and retailer B. Retailer and consumer C. The Agent
and the consumer D. The consumer and the agent

3. The aids to trade that covers the conveying of people and goods from where
they are produced to where they are needed is know as A. Warehouse B.
Banking C. Communication D. Transportation

4. The fastest means of transportation is by A. Air B. Land C. Rail D. Water

5. The type of activity which turns processed raw materials into consumer and
industrial goods is described as A. extractive B. manufacturing C. constructive
D. processing

6. A distinguishing characteristics of a limited liability company is that it A. is a

collection of many sole proprietors B. is a multiple partnership C. can sue and
be sued D. has limited resources

7.Which of the following groups is paid first when a firm liquidates? A.

Preference shareholders B. Debenture holders C. Ordinary shareholders D.
Cumulative preference shareholders

8. What are fixtures and fittings in a balance sheet? A. liquid capital B. current
assets C. fixed assets D. working capital

9. Governments impose import duties for the following reasons EXCEPT A. to

raise revenue for other services B. to act as a retaliatory measure against other
governments C. to discourage the redistribution of income at home D. to
protect home industries from external competition

10. The use of coin-operated machines to sell goods is a form of A. personal

selling B. retailing C. wholesaling D. mail-order selling

11. What is the major function of the wholesaler? A. buying from small-scale
producers and selling to exporters B. buying in bulk and selling in small
quantities C. granting of credit facilities to retailers D. providing information to
people

12. The difference between the total payments for imports and the receipts
from exports within a given period is referred to as A. balance of payments B.
balance of trade C. comparative cost advantage D. comparative advantage

13. Which of the following is both direct and indirect credit enterprise?

A. A co-operative and thrift society B. retail co-operative society C. consumer

co-operative society D. wholesaler co-operative society
14. Which of the following is a form of sales promotion

A. advertising on radio B. offering free sample C. distributing printed materials

D. advertising on television

15. Nationalization of an industry means that its ownership becomes that ofA.
government B. shareholders C. taxpayers D. indigenes

16. which of the following is the most important business resource?A. money
B. management C. materials D. manpower

17. Paper money originated in form of receipt given by?A. money lenders B.
goldsmiths C. bankers D. traders

18. The process of buying and selling and distribution of goods and services is
known as?A. retail trade B. commerce C. marketing concept D. marketing mix

19. Which of the following convert raw materials into finished goods?A.
Extractive industry B. Manufacturing C. Commercial occupation D.
Constructive industry

20. A partnership is formed for banking business is made up of?A. 2 – 10

members B. 2 -20members C. 2 – 30 members D. 2 – 40 members

21. If a businessman imports stockfish with a view to exporting them to other

countries, this form of trade is known as?A. invisible trade B. entrepot trade C.
export trade D. import trade

22. A trader who wants to buy goods from another country sends?A. an advice
note B. an invoice C. a bill of exchange D. am indent

23. Which of the following is an invisible export of Nigeria?A. Shipping services

Nigeria renders to RussiaB. Nigeria’s crude oil to londonC. banking services
rendered to Americans resident in NigeriaD. Stockfish from Germany to Nigeria

24. A deficit in balance of trade occurs when?A. visible exports exceeds

invisible importsB. total payments exceed visible exportsC. visible imports
exceeds visible exportsD. invisible exports exceeds invisible imports

25. Pure profits is the elements of the paid?A. for land B. for capital C. a
manager D. to an enterpreneur

26. The factor of production which is described as wealth set aside for the the
production of further wealth is called?

A. entrepreneur B. land C. capital D. goodwill

27. Which of the following conditions may make the manufacturer sell directly
to the consumer?A. brake in communicationB. Inaccessibility of the
wholesaler’s warehouseC. The nature of the commodity involvedD. inadequate
transport facility

28. Information on new goods is passed on to buyers through?A. wholesale

trade B. retail trade C. market research D. advertising

29. Which of the following is not a means of money?A. Divisibility B. Portability

C. Accessibility D. Recognizability

30. The main disadvantage of rail transport to traders is that?A. it carries bulky
goods only B. its cost of carriage is highC. it is slow and flexible D. it causes
road congestion

31. A telephone call within a town is called?A. home call B. trunk call C. district
call D. Local call
32. Which mode of transport would you suggest as the most suitable for
natural gas?A. Air B. Sea C. Pipeline D. Road

33. Which of the following is not one of the functions of warehousing?A.

Goods are avaiable where the are requiredB. Goods are stored until the are
requiredC. Production takes place ahead of demandD. changes are avoided in
prices which may result from shortage and gults

34. Which of the following shows the financial position of a business on a

given date?A. Bank statementB. Balance sheetC. journalD. Cash book

35. Which of the following shows the financial position of a business on a

given date?A. Bank statement B. Balance sheet C. journal D. Cash book

36. Opening stock……………..N1000

Closing stock……………..N9000

Purchases…………………N14,000

The average stock is?

A. N2000 B. N3000 C. N5000 D. N6000

37. The oldest and commonest form of business in Nigeria is?

A. partnership B. the co-operative society C. sole proprietorship D. joint stock

venture
38. In which class of occupation would you place a taxi driver?

A. Extractive B. Indirect services C. Personal services D. Commercial services

39. Which of the following is the most suitable means of transporting bulky
goods from Lagos to Kaduna? By

A. Train B. Aeroplane C. Ship D. Lorry

40. The word Ltd written after the name of a company means that?A. the
individual member’s capital is limitedB. the total sum of the company’s capital
is limitedC. members are liable to the extent of their holdingD. company’s
location is limited

41. .Another name for home trade is [a]domestic trade[b]entreport[c]external

trade

42.The buying,selling and exchange of goods and services over a computer is

called [a]E-Commerce[b]utility[c]jumia
43.Which of the following aide to trades helps a business man to bear his
risk[a]insurance[b]banking[c]tourism

44.One of the following is a problem of trade by barter[a]expensive [b]double

coincidence[c]employment

45.Which of the following is listed under direct service[a]barbing[b]Police

[c]NAFDAC

46.Which of the following is under extractive industry[a]brick

making[b]farming[c]plumbing

47.Which is the most important factor of production[a]Land[b]Money[C]

Entrepreneur

48.The reward for capital is [a]interest[b]rent[c]profit

49.Who sales in small quantity to consumers[a]Wholesaler[b]Retailer[c]middle

man
50.Which of the following is under large scale retailing [a]mobile shop[b]street
traders [c]stores

COMMERCE EXAM QUESTIONS FOR SS1 THIRD TERM