1. The practice of employing specialists in relevant occupations is a feature of …………….

A. Division Labour
B. Mobility of labour
C. Mixed economy
D. Exchange economy.
2. Branding is a good example of ………..
A. Marketing mix
B. Competitive advertising
C. Consumerism
D informative advertising.

3. Which of the following converts raw materials into finished goods?

A. Extractive industry

B. Manufacturing industry

C. Constructive industry

D. Commercial occupation.

4. A deficit in the balance of trade occurs when ………….

A. Visible exports exceed Visible import

B. Total payment exceeds visible exports

C. Visible imports exceeds visible exports

D. Invisible exports exceeds invisible imports.

5. A telephone call within a town is called …………

A. Home call

B. Trunk call

C. Zonal call

D Local call.

6. Which of the following shows the financial position of a business on a given date?

A. Bank statement

B. Cash book.

C. Balance sheet

D. Trial balance.

7. The oldest and commonest form of business in Nigeria is …………….

A. Partnership
 B. Cooperative society

C. Sole proprietorship

D. Public corporation.

8. Which of the following is not a factor of production?

A. Capital

B. Land

C. Staffing

D. Labour.

9. On which of the following should a small retailer place highest priority when choosing a

business site?

A. Customer accessibility

B. Employment convenience

C. Nearness to similar businesss

D. Closeness to banks.

10. Poor shop location leads to ………………..

A. Higher rents

B. Increase in profits

C. Low sales

D. Poor image.

11. The critical factor in organizing a business is ………..

A. Money

B. Capital

C. Machinery

D. Management.

12. The exchange of goods for goods in home trade is ……….

A. Entreport trade

B. Home trade

C. Barter trade

D. Counter trade.
 13. Buying and selling of goods within a geographical area is called ……………..

A. Entrepot trade

B. External trade

C. Domestic trade

D. Foreign trade.

14. When a major motor dealer undertakes routine maintenance of customer’s vechicles , he is
offering …………..

A. Self services

B. Pre-sales service

C. After sales service

D. Auto-mobile service.

15. Which of the following is an invisible export of Nigeria?

A. Shipping service Nigeria rendered to Russia

B. Stock fish from Germany

C. Nigeria crude oil to London

D. Banking service rendered to Americans resident in Nigeria.

16. Farmers, Fishermen and Miners are examples of people who works in …………

A. Tertiary production

B. Primary production

C. Commerce

D. Secondary production.

17. Which of the following is not a function of the retailer?

A. Buying in bulk and Warehousing

B. Buying and selling in bits to the consumers

C. Advising consumers on the right type of goods

D. Granting credits to the customers.

18. A public limited liability company can enter into contract because …………..

A. Has many employee

B. Has shareholders
 C. Is a legal entity

D. Is allowed to take out debrntures.

19. A retailer sells his products at ‘’Buy -two – take – three’’. The sales promotion method is referred is
……..

A. Free sample

B. Trade discount

C. Gift

D. Premium.

20. Which of the following is the best channel of for th sale of an Aircraft?

A. Producer – Wholesaler – Consumer

B. Producer – Retailer – Consumer

C. Producer – Consumer

D. Producer – Wholesaler – Retailer – Consumer.

21. Which of the following is an advantage of large scale retailing?

A. Pilfering

B. High overhead cost

C. Declining in personal service

D. One stop shopping.

22. The distribution and exchange of goods and services for the satisfaction of wants is the concern of
……..

A. Production

B. Utility

C. Commerce

D. Industry.

23. Which of the following has no limit to its membership?.

A. Ordinary partners

B. Co-operative society

C. Private limited company

 D. Limited partner.

24. Which of the following is an internal source of capital to a business conern?

A. Trade

B. Debenture

C. Overdraft

D. Retained profit

25. Which of the following coordinates other factors of production to achieve set objectives?

A. Land

B. Labour

C. Entrepreneur

D. Capital.

26. An advantage of a public limited company over a private one is the …………….

A. Limited liability

B. Easy transferable of shares

C. Access to retained earnings

D. Less taxation by government.

27. The rate which a country’s currency is converted to the currency of another country is known as
………..

A. Terms of payment

B. Bank rate

C. Exchange rate

D. Terms of trade.

28. What is the life span of a cheque which is drawn but not presented immediately for payment?

A. 30 days

B. 2months

C. 6months

D. 12months.

29. The minimum charge at which the central bank lends money to commercial bank is called ………….

A. Market rate
 B. Discount rate

C. Bank rate

D. Interest rate.

30. Production is defined as …………

A. An industrial Undertaking

B. Creation of Utility

C. Earning one’s daily bread

D. Changing of raw materials.

31. Who among the following can not be regarded as itinerant trader?

A. Stall owner

B. Barrow pusher

C. Pedlar

D. Gypsy.

32. Which of the following will not be considered in choosing a channel of distribution?.

A. Nature of product

B. Quality of product

C. Preference of consumers

D. Volume of sales.

33. The ancillary to trade which ensures that people gain access to facts pertaining to goods is ……….
A. Insurance

B. Advertising

C. Warehousing

D. Banking.

34. Public enterprises are financed mainly by ……………….

A. the shareholders

B. Commercial banks

C. Government grants

D. The world bank.

35. Which of the following is the function of the small retailer?

 A. Financing manufacturers

B. Wharehousing of goods

C. Selling to consumers

D. Branding of goods.

36. Who among the following does not render direct service?

A. Teachers

B. Doctors

C. Musician

D. Retailers.

37. The process of making goods attractive and easy to handle is ……..

A. Branding

B. Labelling

C. Packaging

D. Merchandising.

38. Net profit is calculated as ………………….. A. Sales less purchases B. Sales less expenses C. Gross
profit less expenses D. Gross profit less less purchases.

Use the following information to answer questions 39 to 42.

This extract is from ENIOLA Computer Services, Ikeja.

Sales 200,000

Stock 1/1/2004 25,000

Stock 31/12/2004 35,000

Purchases 145,000

Returns inwards 20,000

Sales and Distribution expenses 13,000

Wages and and salaries. 8.000

39. The average stock is …………..

A. N60,000

B.N35,000
 C. N30,000

D.N25,000.

40. The gross profit ………………..

A. N65,000

B. N55,000

C. H30,000

D. N20,000

41. Cost of goods sold ………………..

A. N135,000

B. N115,000

C. N60,000

D. N35,000.

42. Net sales is ………………………………

A. N180,000

B.N190,000

C. N160,000

D. N110,000

43. Which of the following advertising media combines the advantages of both sight and sounds?

A. Television

B. Billboard

C. Radio

D. Neon sign.

44. Which of the following is not a sales promotion method?.

A. Demonstration

B. Free sample

C. Exhibition

D. Newspaper.

45. Which of the following receives dividend based on patronage?.

A. Preference shareholders
 B. Co.operative society member

C. Debenture holder

D. Cumulative preference shareholder.

46. Working capital is ……………

A. Current Asset less total liabilities

B. Total asset less Total liabilities

C. Current asset less Current liabilities

D. Current asset plus Current liabilities.

47. If a customer opens a deposit account with bank, he will ………..

A. Received a crossed cheque booklet

B. Be given a tally

C. Be given a loan

D. Receive interest.

48. A stale cheque is one on which the date for payment is ……………..

A. overdue

B. Yet to come

C. Missing

D. Due.

49. Which of the following is a source of capital to a sole proprietorship?.

A. Loan from friends

B. Issues of shares

C. Admission of new member

D. Issues of debenture.

50. The mode of conveying liquids and gases through an underground channel is …………..

A. Pipeline

B. Rail transport

C. Road transport.

D. Sea transport.
 ATTEMPT THREE QUESTIONS FROM THIS SECTION.

1. Define a cooperative society.2mks.

b. State three characteristics of a cooperative society.3mks.
c. Mention and explain three types cooperative.5mks.
2. Explain a wholesaler.2mks.
b. State four functions performed by the wholesaler in the channel of distribution to
the retailer
4mks.
c. Explain four factors that encourage the elimination of middlemen from the channel
of distribution.4mks.

3. Give four reasons why retail shops adopt self service.4mks.

b. Explain six facilities that a retail shop should have to encourage self service.6mks.

4. Explain international trade.2mks.

b. List and explain four barriers to international trade.6mks.

c. Mention two similarities of international trade.2mks.

5. Define a Public limited liability company.2mks.

b. In a tabular form, list five differences between private limited liability company and

public limited liability company.8mks.

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