Commerce past questions and answers, WAEC, 1989, part 4

Commerce past questions and answers, 1989:

Please read questions 51 - 75 here

 

Use the following information to answer questions 76 – 78.

A company had an authorized share capital of N30,000. It offered applicants N20,000 share out of which the company collected N15,000.

76. What was the issued capital?

1.  N5,000
2. N10,000
3. N15,000
4. N20,000
5. N35,000

 

77. What was the paid-up capital?

1. N35,000
2. N30,000
3. N20,000
4. N15,000
5. N5,000

 

78. What was the unissued capital?

1. N35,000
2. N30,000
3. N15,000
4. N10,000
5. N5,000

 

79. Which of the following is NOT necessary when ordering goods?

1. Trade journal
2. Letter of enquiry
3. Invoice
4. Order form
5. Catalogue

 

80. With regard to payment, the amount payable when no deductions are made is called _____.

1. net price
2. spot cash
3. net profit
4. prompt cash
5. draft

 

81. Sending a proforma invoice to a potential customer is _____.

1. an indication that the seller is out of business
2. an indication of the seller’s willingness to grant credit
3. a polite way of asking the customer to return the goods
4. an invitation to the buyer to buy on hire purchase
5. a polite way of refusing to sell on credit

 

82. Exchange in the international market which does NOT involve the use of money as medium is known as _____.

1. foreign aid
2. counter trade
3. monetization
4. foreign trade
5. entrepot trade

 

83. A shipping company’s document detailing the charges for carrying a particular cargo for a specified journey is known as _____.

1. dock warrant
2. freight note
3. carriage forward
4. weight note
5. credit note

 

84. Which of the following is true of debenture?

1. They are part of the company’s authorized capital
2. Debenture holders receive interest
3. Debenture holders receive dividend
4. Debenture holders are owners of the company
5. Debenture holders control the company

 

85. Which of the following is drawn up as a guide to the running of a partnership?

1. Deed of agreement
2. Partnership act
3. Memorandum of Association
4. Prospectus
5. Articles of Association

 

86. Which of the following documents contain complete information on goods available in the wholesaler’s warehouse? The _____.

1. catalogue
2. order
3. consignment note
4. invoice
5. delivery note

 

87. The essence of marketing is _____.

1. exchange
2. sales
3. trade
4. research
5. profit

 

88. For continuous existence, a service oriented concern depends on _____.

1. liquid assets
2. middleman
3. patronage of consumers
4. legislation of the ruling political party
5. staff strength of the concern

 

89. Which of the following is NOT a problem of distribution, sales and merchandising?

1. Transporting goods
2. Trade malpractices
3. Pressure of sales
4. Sales force complacency
5. Easy payments for purchases

 

90. Which of the following is NOT one of the functions of warehousing?

1. Goods are available where they are required
2. Goods are stored until required
3. Production takes place ahead of demand
4. Changes are avoided in prices which may result from shortage of gluts
5. Goods are available when required

 

91. Which of the following show the financial position of a business on a given date?

1. Bank statement
2. Balance sheet
3. Journal
4. Cashbook
5. Trial balance

 

92. The last link in the chain of distribution is the _____.

1. wholesaler
2. retailer
3. consumers
4. factor
5. advertiser

 

93. The management functions of anticipating the future and determining the best course of action to achieve company objective is _____.

1. directing
2. organizing
3. controlling
4. planning
5. consulting

 

94. All advertising campaigns for consumer goods must pay attention to _____.

1. cinema advertising
2. radio advertising
3. point of sale
4. door to door sale
5. neon sign

 

95. Which of the following is an insurance principle?

1. Endowment
2. Premium
3. Proximate cause
4. Fidelity guarantee
5. Surrender value

 

96. Which of the following is insurance cover undertaken by the government for its employees?

1. Endowment
2. Marine insurance
3. Fidelity guarantee insurance
4. Pensions scheme
5. Fire insurance

 

97. The treaty establishing ECOWAS on May 28, 1975 was signed by _____.

1. 15 Heads of States
2. 14 Heads of States
3. 13 Heads of States
4. 12 Heads of States
5. 11 Heads of States

 

98. One of the main aims of the ECOWAS is to _____.

1. foster interchange of goods and services among its members
2. provide a reliable for stock and shares
3. have a common political system
4. have a common language
5. have one currency

 

Please read questions 1 - 25 here

Please read questions 26 - 50 here

You can read various topics on Commerce here

 

Answers to WAEC Commerce, 1989

.1. C   2. A   3. D   4. B   5. C   6. B   7. E   8. B   9. A   10. E

11. D   12. C   13. C   14. E   15. D   16. B   17. C   18. B   19. B   20. B

21. D   22. A   23. D   24. E   25. C   26. C   27. E   28. E   29. A   30. C

31. B   32. A   33. C   34. D   35. D   36. B   37. E   38. A   39. D   40. C

41. B   42. D   43. A   44. D   45. C   46. C   47. D   48. C   49. B   50. B

51. C   52 B   53. A   54. D   55. D   56. D   57. E   58. D   59. B   60. C

61. B   62. C   63. C   64. A   65. E   66. C   67. E   68. C   69. B   70. A

71. E   72. C   73. D   74. D   75. D   76. D   77. D   78. D   79. C   80. E

81. E   82. B   83. B   84. C   85. B   86. A   87. A   88. A   89. E   90. D

91.    92. C   93. D   94. B   95.    96. D   97.    98. A