2012 JAMB COMMERCE PAST QUESTIONS AND ANSWERS

The question checks the type of paper assigned for the exam. It ensures candidates are using the correct test form, thus maintaining exam integrity.

Government benefits from commerce by generating revenue through taxes, aiding growth, and public services. Commerce is essential for economic development.

Bricklaying is a construction industry activity, typically associated with building structures, making it part of the secondary sector.

Labor, unlike capital or land, is directly incentivized through wages, making remuneration crucial for motivating the workforce.

Division of labor assigns specific tasks to workers based on their skills, improving efficiency in the production process.

A vending machine automates the purchase process by accepting money and dispensing goods, common in convenient locations.

Branding creates a unique identity for a product, helping distinguish it from competitors, which aids in customer recognition and loyalty.

Comparative cost advantage forms the basis of international trade, allowing countries to benefit from specializing in goods they produce efficiently.

Distance remains a significant hurdle in international trade, impacting logistics and increasing transport costs between trading countries.

A bill of lading provides details of goods shipped and is essential for transferring goods between sellers, shippers, and receivers.

An indent specifies items a buyer wants, providing essential purchase details for suppliers.

The notation 3/9; net 30 means a 3% discount if payment is made within nine days, otherwise, full payment is due within 30 days.

A bearer cheque can be cashed by anyone who presents it, unlike a crossed or named cheque, making it less secure but more convenient.

Discounting allows early payment of a bill of exchange, benefiting the holder by providing immediate funds, though at a lower value.

Mass advertising reaches a broad audience, making it ideal for promoting branded products widely, thereby increasing brand visibility.

Bank charges are fees that current account holders pay for transaction handling, rather than interest payments.

Telegrams transmit messages over long distances by cable, a traditional method of long-distance communication.

Communication ensures goods and services are delivered efficiently by reducing misunderstandings, delays, and improving service delivery.

Subrogation allows an insurer to claim against a third party responsible for a loss, ensuring the insured does not profit from the claim.

Assurance provides coverage based on certainty, like life assurance, rather than risk, distinguishing it from general insurance.

The person covered in a life insurance policy is known as the “assured,” distinguishing them from the insurer who provides the coverage.

Tourism promotes economic development, cross-cultural exchange, and national growth by attracting foreign investment and boosting local businesses.

Inland letters are typically used for domestic correspondence through regular or express mail services, distinguishing them from registered or special services.

Partnerships leverage the strengths of individual members, sharing resources to benefit the organization and addressing each other’s weaknesses collaboratively.

Businesses primarily aim to improve investments to ensure long-term growth, while other objectives like quality products and consumer satisfaction are secondary.

Debenture holders are prioritized in liquidation, as they are creditors, unlike shareholders who are residual claimants and get paid only after debts are cleared.

Both types of companies have the legal right to sue or be sued, providing a legal identity independent from their shareholders.

Long-term financing is typically secured by issuing shares, unlike short-term options such as overdrafts or credit purchases.

Issued capital represents the part of the authorized share capital that is available for public investment, not retained or reserved by the company.

The 8 million shares are considered “unissued,” as they have not been made available for public subscription.

Turnover is calculated by multiplying the rate of turnover by the average stock, resulting in a turnover of ₦194,900 (4 x ₦49,600).

The unused stock value is ₦500, which represents the closing stock remaining after all other transactions.

Trade associations aim to protect members against external challenges like victimization, boosting unity and representation within their sector.

The Chamber of Commerce organizes trade fairs to support and promote sectors like industry, trade, and agriculture.

Only authorized companies are permitted to engage in formal exchange, ensuring regulated trade activities.

Bonds provide investors with fixed interest or coupon payments, differentiating them from equities or other instruments.

Directing is the management style where lack of motivation is likely, as it involves oversight without personal engagement.

“Esprit de corps” refers to fostering unity and teamwork within an organization, aligning employees with shared goals.

A good organizational chart aids communication, helping members understand roles and reporting structures, improving organizational flow.

The marketing concept emphasizes consumer satisfaction, ensuring products or services meet customer needs and preferences.

The channel of distribution involves intermediaries and systems to deliver goods from producers to consumers efficiently.

A commission agent sells goods on credit and is responsible for payment in case of buyer default, providing added security to sellers.

Ownership transferred on delivery, enabling Yahya to legally pass the title to Ali despite the credit agreement.

NAFDAC monitors and regulates consumer goods in Nigeria to ensure safety, particularly for consumables and drugs.

Decryption is the process of converting encoded or encrypted data into readable form, essential for secure data transmission.

Utility programs are essential system software, supporting basic computer functions and maintenance tasks, unlike hardware or applications.

Digital computers process data in binary code (zeros and ones), unlike analog computers which use continuous data.

E-banking enables digital transactions, providing a convenient and secure method for modern financial activities, including mobile and online payments.

Social responsibility involves ensuring product quality and consumer safety, promoting ethical practices and consumer trust.

Businesses need to consider their impact on society, balancing profit motives with societal welfare and sustainable practices.