Exam Body

Year

Subject

Paper Type

UTME 2023 Commerce | Objective

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Question 1

A pro-forma invoice is NOT required when

A. quoting for the supply of goods

Correct B. dealing regularly with a customer

C. goods are sent on approval

D. final prices are uncertain

Correct Answer: B

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Question 2

Taking a new product to a particular part of a country to test the reaction of consumers to the product is referred to as

A. advertising

Correct B. sampling

C. promotion

D. merchandizing

Correct Answer: B

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Question 3

A close indent is an instruction to an agent to

A. order goods from any manufacturer

B. sell goods to a certain firm

C. sell goods to a certain firm

Correct D. order goods from a particular manufacturer

Correct Answer: D

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Question 4

Services which are absolute monopoly can be best provided by

Correct A. public enterprises

B. private companies

C. limited liability companies

D. public companies

Correct Answer: A

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Question 5

The proposed monetary integration with ECOWAS sub-region has the overriding benefit of

A. improved exchange

B. enhanced development

Correct C. enhanced trade

D. improved trade

Correct Answer: C

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Question 6

The legal aspect of business is designed to

A. safeguard consumers from undue business practices

Correct B. protect business organizations and consumers

C. protect infant industries from collapse

D. encourage free exchange among businesses

Correct Answer: B

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Question 7

A functional organization structure is where

Correct A. staff performing similar functions are grouped together

B. staff performing the same functions are grouped together

C. departments performing similar functions are grouped together

D. activities of similar nature are grouped together

Correct Answer: A

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Question 8

A wholesaler who possesses the title to the goods he sells is known as

A. a multiple wholesaler

B. an agent wholesaler

Correct C. a merchant wholesaler

D. a general wholesaler

Correct Answer: C

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Question 9

Money can simply be referred to as

A. a means for the settlement of debts

B. durable assets for doing business

C. standard of value

Correct D. medium of exchange

Correct Answer: D

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Question 10

Discounts offered by firms to middlemen for bulk purchases are

A. sales bonanza

Correct B. trade discounts

C. cash discounts

D. seasonal discounts

Correct Answer: B

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Question 11

The market where only indigenous firms are considered is the

A. second tier securities market

B. money market

Correct C. local market

D. stock exchange

Correct Answer: C

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Question 12

Given: Sales 15,000, Opening stock 5,600, Purchases 9,700, Closing stock 4,400, Gross profit 4,500, Net profit 2,000. From the data above, calculate the rate of turnover.

A. 3.50 times

B. 3.00 times

Correct C. 2.18 times

D. 2.00 times

Correct Answer: C

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Question 13

A shop which consists of many stores trading under a single roof and which stocks varieties of goods with each unit having its own head is a

A. multiple shop

Correct B. departmental store

C. supermarket

D. superstore

Correct Answer: B

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Question 14

Consumerism aims at protecting the consumer from

A. drug addiction

B. smoking cigarettes

C. alcohol consumption

Correct D. harmful products

Correct Answer: D

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Question 15

A share premium is an example of

Correct A. capital reserve

B. issued capital

C. capital stock

D. equity capital

Correct Answer: A

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Question 16

The difference between the selling and buying price of shares is known as

A. brokerage

B. jobber's turn

Correct C. margin

D. gross profit

Correct Answer: C

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Question 17

An account maintained with a commercial bank for the purpose of foreign exchange transaction is the

A. foreign account

B. international account

C. foreign reserves account

Correct D. domiciliary account

Correct Answer: D

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Question 18

A warehouse which is used to store goods whose custom duty is not yet paid is a

Correct A. bonded warehouse

B. wholesale warehouse

C. public warehouse

D. branded warehouse

Correct Answer: A

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Question 19

TABLE - Bola's Balance Sheet

Use the information below to answer questions 19 and 20.

\( \text{Bola's Balance Sheet as at 31st December, 2006} \)
\(
\begin{array}{l  r | l  r}
\hline
 & \mathbb{N} & & \mathbb{N} \\
\text{Capital} & 10,000 & \text{Land and building} & 12,000 \\
\text{Drawings} & \underline{600} & \text{Fittings} & 850 \\
 & 9,400 & \text{Motor vans} & 1,600 \\
\text{Profit} & \underline{6,200} & \text{Cash} & 2,150 \\
 & 15,600 & \text{Prepayments} & 700 \\
\text{Creditors} & \underline{1,800} & \text{Debtors} & \underline{100} \\ \hline
\text{Total} & \underline{\underline{17,400}} & \text{Total} & \underline{\underline{17,400}} \\ \hline
\end{array} \)
10% is charged on depreciation of fixed assets.

Determine the value of Bola's fixed assets.

Correct A. ₦13,005

B. ₦12,005

C. ₦14,450

D. ₦13,450

Correct Answer: A

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Question 20

TABLE - Bola's Balance Sheet

Use the information below to answer questions 19 and 20.

\( \text{Bola's Balance Sheet as at 31st December, 2006} \)
\(
\begin{array}{l  r | l  r}
\hline
 & \mathbb{N} & & \mathbb{N} \\
\text{Capital} & 10,000 & \text{Land and building} & 12,000 \\
\text{Drawings} & \underline{600} & \text{Fittings} & 850 \\
 & 9,400 & \text{Motor vans} & 1,600 \\
\text{Profit} & \underline{6,200} & \text{Cash} & 2,150 \\
 & 15,600 & \text{Prepayments} & 700 \\
\text{Creditors} & \underline{1,800} & \text{Debtors} & \underline{100} \\ \hline
\text{Total} & \underline{\underline{17,400}} & \text{Total} & \underline{\underline{17,400}} \\ \hline
\end{array} \)
10% is charged on depreciation of fixed assets.

What is Bola's working capital?

Correct A. ₦2,150

B. ₦1,150

C. ₦1,950

D. ₦1,800

Correct Answer: A

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Question 21

The three components of staffing are

Correct A. recruitment, selection and placement

B. recruitment, interview and appointment

C. recruitment, test and placement

D. recruitment, selection and appointment

Correct Answer: A

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Question 22

An illegal arrangement by manufacturers to control the price or condition of sale of a product is

Correct A. ring

B. factoring

C. merger

D. consortium

Correct Answer: A

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Question 23

Activities undertaken to create awareness for goods by conducting contests is

A. marketing concept

Correct B. sales promotion

C. marketing mix

D. consumerism

Correct Answer: B

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Question 24

One of the obligations of an employer to an employee is

A. award scholarship to his children

B. terminate his appointment without prior notice

C. indemnify him against injuries caused through negligence

Correct D. indemnify him against liabilities incurred on duty

Correct Answer: D

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Question 25

The provision of quality and safe products which guarantee the health of consumers is an example of

Correct A. social responsibility

B. price control

C. quality control

D. civic responsibility

Correct Answer: A

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