2023 JAMB COMMERCE PAST QUESTIONS AND ANSWERS

External factors influence business operations by creating constraints such as regulatory policies, economic conditions, and social trends. Other options focus on internal or specific influences.

Backwardation is a payment made when a seller cannot deliver stock on the agreed date, compensating the buyer for the delay. Other terms refer to specific financial mechanisms or contracts.

A bill of lading is a detailed list of a shipment of goods in the form of a receipt, given by the carrier to the shipper. It serves as a contract and receipt for the shipped goods.

Public liability companies do not limit the number of shareholders, allowing them to raise substantial capital from the public. Other forms of business may have limitations on the number of owners or shareholders.

Organizing involves structuring tasks and assigning responsibilities across various departments and levels, enabling effective management. Other terms refer to distinct management functions like hiring or guiding.

Communication can lead to distortion of facts when messages are altered unintentionally, unlike the other options which address different issues in goods transport or payment.

The SEC (Securities and Exchange Commission) regulates the Nigerian Stock Exchange by enforcing financial regulations to ensure fair practices, unlike CBN, BPE, or NDIC, which focus on other financial services.

An agent by necessity can act without prior consent, especially for perishable goods, to avoid losses. This differs from agents by estoppel or ratification, who act with specific authorization or acceptance.

Government financial grants are not a common source for public companies, as they typically rely on bank loans, sales of shares, or internally generated funds for financing.

A prospectus is an official document issued to inform potential investors about shares available for sale, while the other documents relate to transactions or requests in business.

Profit making is the primary goal of business resources, focusing on maximizing returns, unlike objectives like public relations which support but do not drive revenue.

Inland letters are domestic, delivered within the country, while airmail and express are international services. Registered letters offer tracking.

Called-up capital refers to the portion of issued shares for which the company requests payment from shareholders, different from authorized, subscribed, or issued capital.

The Trade Description Act is intended to safeguard consumers from deceptive practices, while other acts focus on business structures and contracts.

Wholesaling involves bulk purchasing and distributing smaller quantities to retailers, which is different from retailing and other activities.

A wholesaler acts as an intermediary between producers and retailers, handling bulk goods before distribution to retail markets.

The withdrawal of a major partner and risk-bearing are both advantages and disadvantages in partnerships, affecting stability and risk distribution.

Consumer proximity ensures efficient product delivery and quick access, unlike factors like labor, capital, or raw materials in warehousing decisions.

Uberrimae fidei, or utmost good faith, obliges insurers to reveal all risk-related facts to avoid misrepresentation, unlike the other principles.

Advertising can mislead if it exaggerates product claims, impacting consumer trust, unlike the options that affect sales, profit, or stock levels.

An irredeemable bond requires periodic interest payments but does not repay the principal, unlike redeemable bonds or other loans.

The holder can discount a bill at any bank, where they receive less than the face value before maturity, offering liquidity options.

Commercialization focuses on enabling an organization to generate revenue, unlike deregulation or privatisation, which relate to government involvement.

A contract is legally binding, with all parties agreeing to terms, unlike acceptance or consideration which are parts of contract formation.

Retailers break bulk to sell in smaller units, facilitating consumer access, while other options like financing relate to wholesaling or production.

Partnerships allow members to utilize each other’s strengths to offset weaknesses, unlike joint ventures which are temporary alliances.

The Nigeria Export Promotion Council facilitates export procedures, unlike the Customs and Excise Authority, which focuses on tariffs and border control.

Indemnity insurance compensates the insured for loss, which includes policies against burglary, unlike non-insurable risks which aren’t covered.

Trade refers to the buying and selling of goods and services, unlike tariff, industry, or marketing which are related but distinct activities.

A liquidator handles the sale of assets during business dissolution, unlike an auditor or broker, who manage accounts and trading, respectively.

An offer signifies a party’s readiness to form a binding contract, distinct from acceptance, which is the agreement to the offer’s terms, or consideration, which involves value exchange.

OPEC is a known example of a cartel, where countries collaborate to control oil prices, unlike AU or ECOWAS, which are regional organizations without trade price-fixing.

Gross profit is calculated by deducting the cost of goods sold from net sales, here ₦370,000 – ₦230,000 = ₦140,000. The other figures relate to net profit or total sales.

Net profit is the income left after deducting expenses from gross profit, here ₦140,000 – ₦35,000 = ₦105,000. Other options don’t reflect this calculation.

Commerce links the stages of production by facilitating the movement and distribution of goods, unlike extraction, which is a production activity itself.

Indigenization promotes local ownership of businesses, distinct from nationalization, which involves government control, and privatization, which moves control to private individuals.

Terms of trade indicate the relative value of exports to imports, unlike balance of trade, which simply records surplus or deficit in trade transactions.

Chambers of commerce promote trade within and beyond the country, unlike organizations focused on specific sectors or maximizing profit.

Poundage is the fee for processing postal orders, differing from premiums or brokerage fees associated with insurance and securities.

Division of labour increases productivity by allowing workers to specialize, leading to higher output. Other options reflect challenges or losses from specialization.