2021 WAEC Commerce Question and Answer
Study the questions and answers below. 1. Which of the following must be present in an agency by agreement? A. intentions B. will C. consent D. authority ANSWER: A ( intentions ) 2. An agreement to sell is distinguishable from sale because in the former, the transfer of goods is A. not anticipated B. not discussed C. deferred D. immediate ANSWER: C ( deferred ) 3.Mr Amusa says to Mr Bello ‘i will sell you this hat for N30’. And Mr Bello replied ‘i will pay N29’. The contract is A. an offer and acceptance B. an implied contract C. a complete simple contract D. an offer but no acceptance ANSWER: D ( an offer but no acceptance ) 4.Nationalization of an industry means that its ownership becomes that of A. government B. shareholders C. taxpayers D. indigenes ANSWER: A ( government ) 5.The comprehensive import supervision scheme was set up by the federal government in order to A. reverse Nigeria’s unfavourable balance of trade B. promote fair trade between Nigeria and other countries C. counteract all fraudulent business deals of Nigeria with other nationals D. ensue that import into Nigeria are of the correct quality, value and quantity ANSWER: D ( ensue that import into Nigeria are of the correct quality, value and quantity ) 6. Commerce can be defined as the study of how A. man utilizes the resources in his physical environment B. man produces, distributes and consumes his goods and services C. man buys, sells and distributes goods and services D. raw materials are changed into finished goods ANSWER: C (man buys, sells and distributes goods and services) 7. …… activity turns processed raw materials into consumer and industrial goods is described as A. extractive B. manufacturing C. constructive D. processing ANSWER: B ( manufacturing ) 8. The production process that combines two or more raw materials into one end product is A. conditioning B. blending C. merging D. synthesis ANSWER: B (blending) 9. A demonstrationofsocialresponsibility by a business is the payment of
A. taxes to government B. dividends to shareholders C. interests on loans D. premium on insurance ANSWER: A (dividends to shareholders) 10. 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 ANSWER: C (can sue and be sued) 10. What is an advantage of telephone communication in business? A copies of documents may be transmitted B messages can be corrected before transmission C problems may be discussed D visual contact is made. 11. Which methods of transport are most likely to be used to transport oil from Australia to Singapore? A canal and sea B pipeline and sea C rail and pipeline D road and air. 12. What is an advantage of containerisation in sea transport? A avoidance of customs duty B carriage of one type of product at a time C fast turnaround of ships at ports D quick unpacking of goods at docks. 13. A washing machine manufacturer wishes to promote a newly-designed product. Which advertising medium would reach the most consumers? A cinema B flyers C radio D television. 14. Which factor plays a part in the increasing volume of air freight that is being transported worldwide? A availability of larger aircraft B fluctuating aviation fuel prices C increased international terrorism D increased tourism. 15. Which airport facility is likely to be the most important to a business exporting goods through an airport? A currency exchanges B duty free shops C lifting gear D luggage handling. 16. Warehousing is unlikely to be part of the chain of distribution for A canned food. B clothes. C milk. D toys. 17. The diagram shows part of a credit note. How is the document used? A The buyer sends it to the supplier after goods have arrived damaged. B The buyer sends it to the supplier’s bank to pay for goods supplied. C The supplier sends it to the buyer after goods have been returned damaged. D The supplier sends it to the buyer’s bank to cancel