2019 JAMB COMMERCE PAST QUESTIONS AND ANSWERS

The correct answer is “Skill” because a person’s skills often influence the job they pursue. “Training” refers to the education one receives, while “Aptitude” relates to a natural ability, and “Interest” pertains to personal enjoyment. Skill reflects acquired abilities necessary for job success.

“Primary industries” is the correct answer, as extractive industries involve raw material extraction. “Direct industries” is incorrect as it doesn’t specify extraction, “Servicing” pertains to non-tangible products, and “Indirect industries” are less directly associated with production.

The correct answer is “Stock release form,” used for tracking material movement in production. Other documents listed here serve different roles, such as tracking incoming goods or storing materials, not specifically transferring materials to production.

The correct answer, “The actual value of the loss paid prior to the loss,” highlights indemnity, where insurers compensate for the actual loss value. Options “No loss,” “Double claims,” and “The loss paid in full” misinterpret indemnity principles.

The correct answer is “Eliminates competition and waste,” as cartels reduce redundancy by regulating production and pricing. “Maximizes productive efficiency” and “Maximizes profit from operations” are secondary effects but not the primary aim.

The correct answer is “Enhanced trade” as monetary integration facilitates trade by reducing currency conversion challenges. “Improved exchange,” “Improved regulations,” and “Enhanced development” are benefits but not the primary one associated with monetary integration.

The correct answer is “Marketing department,” as this department is directly responsible for generating revenue through sales. “Public relations,” “Estate or properties,” and “Legal” departments are supportive functions, not directly tied to the core manufacturing output.

The correct answer is “Paid-up share capital,” which represents the amount of capital shareholders have paid into the company. “Issued,” “Called-up,” and “Subscribed share capital” refer to different stages of capital allocation but may not necessarily be paid-in capital.

“Communication, advertising, and banking” are key facilitators in merchandising as they enable effective product distribution and sales. “Trading, warehousing, and production,” “Banking, insurance, and transportation,” and “Management, insurance, and advertising” are less specific to merchandising’s core functions.

The correct answer is “A current liability” since overdrafts are repaid within a year. “Granted to a newly opened account,” “Repayable after more than a year,” and “An overdrawn account” do not define the short-term nature and obligations associated with overdrafts.

The correct answer is “Publicly on the Stock Exchange” since PLC (Public Limited Company) shares can be bought by the public. “Privately on the Stock Exchange,” “To the public at the company,” and “Publicly but not privately” misrepresent PLC characteristics.

The correct answer is “Laser printer,” as it uses laser technology to etch images onto paper. “Dot matrix,” “Daisy wheel,” and “Thermal printers” employ different mechanisms for printing and are not image-burning printers.

“Ordinary shareholders” are the correct answer as they receive remaining assets after liabilities are settled. “Creditors,” “Debenture holders,” and “Preference shareholders” have priority claims but do not hold residual rights after liquidation.

The correct answer is “Credit transfer form,” specifically designed for transferring funds to creditor accounts. “Demand form,” “Customer transfer form,” and “Bank transfer form” serve various purposes but not for creditor transfers specifically.

The correct answer is “Lack of common currency,” which hinders seamless trade and policy integration. “Colonial links,” “Sovereignty of states,” and “Language differences” also pose challenges, but currency unification is a primary economic hurdle.

“Organizing” is the correct answer, as departmentalization groups tasks to enhance organizational efficiency. “Planning,” “Controlling,” and “Staffing” relate to distinct aspects of management not specifically tied to structuring departments.

“Indigenization” is the correct answer, a policy that promotes local ownership to limit foreign capital outflow. “Nationalization,” “Divestiture,” and “Naturalization” are methods affecting ownership but not specifically designed to curb capital repatriation.

“Bureau of Public Enterprises” is the correct answer as it manages privatization. “Securities and Exchange Commission,” “Technical Committee on Privatization,” and “Nigerian Stock Exchange” handle different aspects of finance or have been superseded in this role.

“Standards Organization of Nigeria (SON)” is responsible for quality control. The “Nigerian Consumers’ Association,” “Manufacturers’ Association of Nigeria,” and “Nigerian Chambers of Commerce” advocate for various groups but do not enforce quality standards.

“The Central Bank” is the correct option, as central banks often facilitate discounting of bills. “At least two banks,” “A local bank,” and “A foreign bank” are less specific and do not align with centralized bill discounting policies.

The correct answer is “Span of control,” which refers to the optimal number of subordinates managed by one supervisor. “Ideal standard,” “Clarity of mission,” and “Adequacy of resources” are valuable but do not define structural effectiveness.

“Staffing” is the correct answer, describing efforts to recruit and retain employees. “Selection,” “Recruitment,” and “Employment” involve steps within staffing but do not encompass the full process of workforce mobilization.

“1.5:1” is the correct ratio, reflecting a standard for liquidity. “0.87:1” and “1.85:1” might indicate weaker or stronger liquidity, while other figures do not represent optimal current ratios.

The correct answer is “200,000,” calculated from total assets minus total liabilities. Other options may reflect non-equity assets or incorrect calculations.

“Trade imbalance between countries” is the correct answer, as it often leads to economic conflicts. “Cost of finance,” “Quantity and quality of labor,” and “Availability of local market” affect trade but do not directly obstruct it.

“Certificate of occupancy” is the correct answer, as it signifies legal ownership rights. Other options may grant access but not the full legal ownership indicated by a certificate.

The correct answer is “Insurance,” which provides financial protection against unforeseen events. “Assurance” is typically for life coverage, “Re-insurance” is insurance for insurers, and “Warranty” is a guarantee on products, not general risk coverage.

“Ocean liners” is correct, as these ships travel across oceans on set schedules. “Cargo liners,” “Coastal liners,” and “Ferries” have different purposes, often limited to specific regions or non-regular schedules.

“Environmental responsibility” is correct, referring to a company’s duty to minimize environmental impact. “Community,” “Civic,” and “Social responsibility” are related but do not directly address waste management and environmental care.

“A bond” is correct because bonds can offer fixed returns, protecting against inflation’s erosion of value. “A share,” “An option,” and “A warrant” are investment tools but do not provide as stable inflation protection as bonds.

The correct answer, “Selling price includes the cost of carriage,” relates to CSF (Cost, Insurance, and Freight) pricing. Other options do not correctly interpret the components of CSF.

“Extraction” is correct, referring to the procurement of natural resources. “Construction,” “Farming,” and “Agriculture” involve different activities, not strictly focused on raw material extraction.

“Factors of production” is correct, encompassing resources like land, labor, and capital. “Technology and labor,” “Land and entrepreneurship,” and “Raw materials” are components but do not cover all production factors.

“Bank draft” is the correct answer, as it is drawn from a bank’s funds. “Cashier’s cheque” is similar but used more commonly within the U.S., “Bank cheque” and “Crossed cheque” refer to cheques drawn on individual accounts.

“Outdoor media” is correct, referring to advertising in public spaces. “Electronic media,” “Print media,” and “Window display media” describe different forms, not specifically outdoor advertising.

“Pricing policy” is correct, as market skimming sets high initial prices. “Market penetration,” “Sales promotion,” and “Advertising” are strategies but do not define a pricing method like skimming.

“Industrial arbitration” is correct, a process for resolving work disputes. “Code of conduct,” “Personnel unit,” and “Disciplinary committee” serve roles in employee management but do not resolve legal disputes.

“Debugging” is correct, which involves removing software errors including viruses. “Programming,” “Formatting,” and “Coding” describe different programming activities unrelated to virus removal.

“Can generally be accessed by the public” is correct, as the internet is open access, unlike extranets, which are restricted. “Requires a modem,” “Is restricted to employees,” and “Requires internet protocols” describe features but not the primary distinction.