Filter by exam, subject and year then load questions instantly
Advertisement
gce2025commerce
Q1. What is the primary purpose of commerce?
AProduction of goods
BFacilitating the exchange of goods and services
CStorage of goods
DConsumption of goods
Correct Answer: B
Commerce involves all activities that facilitate the exchange of goods and services between producers and consumers, bridging the gap in time, place, and possession.
Generating AI explanation...
AI Explanation
gce2025commerce
Q2. Which of the following is a feature of a sole proprietorship?
ALimited liability
BOwnership by one person
CPublic share issuance
DSeparation of ownership and management
Correct Answer: B
A sole proprietorship is owned and managed by a single individual who bears all risks and enjoys all profits.
Generating AI explanation...
AI Explanation
gce2025commerce
Q3. A document that gives legal backing to a company is called?
AProspectus
BMemorandum of Association
CPartnership Deed
DArticles of Association
Correct Answer: B
The Memorandum of Association defines the company's relationship with the outside world and is the foundational legal document for incorporation.
Generating AI explanation...
AI Explanation
gce2025commerce
Q4. Which of these is a primary source of capital for a cooperative society?
ABank loans
BMembers' contributions
CGovernment grants
DSale of bonds
Correct Answer: B
Cooperative societies primarily raise capital through shares purchased by members, promoting democratic ownership.
Generating AI explanation...
AI Explanation
gce2025commerce
Q5. The process of buying and selling goods over the internet is known as?
AE-commerce
BRetail trade
CWholesale trade
DBarter trade
Correct Answer: A
E-commerce refers to electronic commerce conducted via the internet, enabling global transactions without physical presence.
Generating AI explanation...
AI Explanation
gce2025commerce
Q6. Which of the following is NOT a function of a wholesaler?
ABulk breaking
BFinancing
CRisk-bearing
DDirect selling to consumers
Correct Answer: D
Wholesalers sell in bulk to retailers, not directly to end consumers, who are served by retailers.
Generating AI explanation...
AI Explanation
gce2025commerce
Q7. The term “carriage forward” means?
ATransport cost is paid by the seller
BTransport cost is paid by the buyer
CTransport is free of charge
DGoods are delivered at no cost
Correct Answer: B
Carriage forward indicates that the buyer is responsible for paying the transportation costs upon receipt of goods.
Generating AI explanation...
AI Explanation
gce2025commerce
Q8. Which of the following is an example of an intangible product?
AA car
BInsurance policy
CA television set
DFurniture
Correct Answer: B
An insurance policy is intangible as it provides a promise of protection rather than a physical item.
Generating AI explanation...
AI Explanation
gce2025commerce
Q9. The difference between the cost price and selling price of a product is?
AProfit
BLoss
CMarkup
DMargin
Correct Answer: A
Profit is calculated as selling price minus cost price when SP > CP; markup and margin are related but profit is the direct difference.
Generating AI explanation...
AI Explanation
gce2025commerce
Q10. Which type of market is characterized by a single seller?
AOligopoly
BMonopoly
CPerfect competition
DMonopolistic competition
Correct Answer: B
A monopoly exists when one firm dominates the market, controlling supply and prices without close substitutes.
Generating AI explanation...
AI Explanation
gce2025commerce
Q11. A document used to acknowledge the receipt of goods is called?
AInvoice
BReceipt
CDelivery note
DWaybill
Correct Answer: C
A delivery note accompanies goods and is signed by the recipient to confirm safe delivery.
Generating AI explanation...
AI Explanation
gce2025commerce
Q12. Which of the following is a function of advertising?
AReducing production costs
BCreating awareness of products
CSetting product prices
DDistributing goods
Correct Answer: B
Advertising promotes products by informing and persuading potential customers, increasing awareness and demand.
Generating AI explanation...
AI Explanation
gce2025commerce
Q13. The main aim of a trade association is to?
AMaximize profit
BProtect members’ interests
CSell goods directly to consumers
DRegulate prices
Correct Answer: B
Trade associations represent members' collective interests, such as lobbying for favorable policies and standards.
Generating AI explanation...
AI Explanation
gce2025commerce
Q14. Which of the following is a characteristic of money?
AScarcity
BDurability
CBulkiness
DInstability
Correct Answer: B
Money must be durable to withstand repeated handling without deteriorating quickly.
Generating AI explanation...
AI Explanation
gce2025commerce
Q15. A business owned by two or more individuals is called?
ASole proprietorship
BPartnership
CPublic corporation
DCooperative society
Correct Answer: B
A partnership is formed by two or more persons who share profits, risks, and management.
Generating AI explanation...
AI Explanation
gce2025commerce
Q16. Which of the following is a function of the central bank?
AAccepting deposits from customers
BIssuing currency
CProviding loans to individuals
DManaging commercial banks’ accounts
Correct Answer: B
The central bank has the sole authority to issue legal tender currency to control money supply.
Generating AI explanation...
AI Explanation
gce2025commerce
Q17. The process of transferring goods from the producer to the consumer is called?
AProduction
BDistribution
CMarketing
DConsumption
Correct Answer: B
Distribution involves the physical movement and handling of goods through channels to reach consumers.
Generating AI explanation...
AI Explanation
gce2025commerce
Q18. Which of the following is NOT a type of general insurance?
AMarine insurance
BFire insurance
CHealth insurance
DLife insurance
Correct Answer: D
Life insurance is a long-term assurance policy, while the others fall under general (non-life) insurance covering property and liability risks.
Generating AI explanation...
AI Explanation
gce2025commerce
Q19. A business that operates in more than one country is called?
AMultinational company
BPublic limited company
CPrivate limited company
DCooperative society
Correct Answer: A
Multinational companies have operations and subsidiaries in multiple countries, facilitating global trade.
Generating AI explanation...
AI Explanation
gce2025commerce
Q20. The document issued by a warehouse to show proof of storage is?
ABill of lading
BWarehouse warrant
CInvoice
DReceipt
Correct Answer: B
A warehouse warrant certifies that goods are stored and can be used as collateral for loans.
Generating AI explanation...
AI Explanation
gce2025commerce
Q21. Which of the following is a disadvantage of large-scale retailing?
AHigh customer service
BEconomies of scale
CImpersonal customer service
DWide product variety
Correct Answer: C
Large-scale retailers often provide less personalized service due to high volume and standardized operations.
Generating AI explanation...
AI Explanation
gce2025commerce
Q22. What is the main purpose of a stock exchange?
ATo regulate banks
BTo facilitate buying and selling of securities
CTo issue currency
DTo provide loans
Correct Answer: B
Stock exchanges provide a regulated marketplace for trading shares, bonds, and other securities.
Generating AI explanation...
AI Explanation
gce2025commerce
Q23. A business letter requesting information about goods is called?
AOrder
BQuotation
CInquiry
DInvoice
Correct Answer: C
An inquiry letter seeks details on prices, terms, and availability before placing an order.
Generating AI explanation...
AI Explanation
gce2025commerce
Q24. The process of converting raw materials into finished goods is known as?
ACommerce
BProduction
CMarketing
DDistribution
Correct Answer: B
Production transforms inputs (raw materials) into outputs (finished goods) through manufacturing processes.
Generating AI explanation...
AI Explanation
gce2025commerce
Q25. Which of the following is a feature of a public limited company?
ALimited liability
BOwnership by one person
CNo legal identity
DRestricted share transfer
Correct Answer: A
Shareholders in a public limited company have limited liability, protecting personal assets from business debts.
Generating AI explanation...
AI Explanation
gce2025commerce
Q26. Which of the following is NOT a source of finance for a business?
ABank loan
BRetained profit
CTrade credit
DAdvertising
Correct Answer: D
Advertising is an expense for promotion, not a source of finance; the others provide funds for operations.
Generating AI explanation...
AI Explanation
gce2025commerce
Q27. The term “franchise” refers to?
AA license to sell a company’s products under its name
BA partnership agreement
CA government-owned business
DA type of cooperative
Correct Answer: A
Franchising allows a franchisee to operate a business using the franchisor's brand, systems, and support.
Generating AI explanation...
AI Explanation
gce2025commerce
Q28. Which of the following is a function of a retailer?
ABreaking bulk
BFinancing producers
CWarehousing goods
DTransporting goods
Correct Answer: A
Retailers break bulk by selling goods in small quantities to individual consumers.
Generating AI explanation...
AI Explanation
gce2025commerce
Q29. The document that specifies the terms of a partnership is called?
AMemorandum of Association
BPartnership Deed
CArticles of Association
DCertificate of Incorporation
Correct Answer: B
The Partnership Deed outlines partners' rights, duties, profit-sharing, and dispute resolution.
Generating AI explanation...
AI Explanation
gce2025commerce
Q30. Which of the following is a characteristic of a cooperative society?
AProfit maximization
BDemocratic control
CLimited liability for shareholders
DPublic share issuance
Correct Answer: B
Cooperatives operate on 'one member, one vote,' ensuring democratic management regardless of capital contribution.
Generating AI explanation...
AI Explanation
gce2025commerce
Q31. The process of promoting a product to increase sales is called?
AAdvertising
BProduction
CDistribution
DPricing
Correct Answer: A
Advertising is a promotional tool to communicate product benefits and persuade consumers to buy.
Generating AI explanation...
AI Explanation
gce2025commerce
Q32. Which of the following is a type of credit offered by a seller to a buyer?
ABank overdraft
BTrade credit
CMortgage
DDebenture
Correct Answer: B
Trade credit allows buyers to pay for goods after delivery, typically within 30-90 days.
Generating AI explanation...
AI Explanation
gce2025commerce
Q33. A market where goods are sold in small quantities is called?
AWholesale market
BRetail market
CCommodity market
DCapital market
Correct Answer: B
Retail markets involve selling to final consumers in small units for personal use.
Generating AI explanation...
AI Explanation
gce2025commerce
Q34. Which of the following is a function of the Nigerian Ports Authority?
ARegulating air transport
BManaging seaports
CIssuing driver’s licenses
DControlling road transport
Correct Answer: B
The Nigerian Ports Authority oversees port operations, including cargo handling and infrastructure management.
Generating AI explanation...
AI Explanation
gce2025commerce
Q35. The term “CIF” in international trade means?
ACost, Insurance, and Freight
BCarriage and Insurance Free
CCost and Freight
DCarriage, Insurance, and Freight
Correct Answer: A
CIF is an Incoterm where the seller pays for cost, insurance, and freight to the destination port.
Generating AI explanation...
AI Explanation
gce2025commerce
Q36. Which of the following is a feature of a debit card?
AAllows borrowing
BDirect deduction from account
CInterest-free credit
DNo need for a bank account
Correct Answer: B
Debit cards deduct funds directly from the linked bank account at the time of transaction.
Generating AI explanation...
AI Explanation
gce2025commerce
Q37. The body responsible for regulating trade practices in Nigeria is?
ASON
BNAFDAC
CFCCPC
DNDLEA
Correct Answer: C
The Federal Competition and Consumer Protection Commission (FCCPC) regulates consumer rights and fair trade practices in Nigeria.
Generating AI explanation...
AI Explanation
gce2025commerce
Q38. Which of the following is a disadvantage of a sole proprietorship?
AQuick decision-making
BUnlimited liability
CAccess to large capital
DShared responsibility
Correct Answer: B
The owner has unlimited liability, meaning personal assets can be used to settle business debts.
Generating AI explanation...
AI Explanation
gce2025commerce
Q39. The term used to describe goods returned to the supplier is?
ACarriage forward
BReturns inward
CReturns outward
DDelivery note
Correct Answer: C
Returns outward are goods returned by the buyer to the supplier due to defects or errors.
Generating AI explanation...
AI Explanation
gce2025commerce
Q40. Which of the following is a function of the marketing department in a firm?
ARecruiting staff
BProduct promotion
CFinancial planning
DProduction scheduling
Correct Answer: B
The marketing department focuses on promoting products through advertising, sales, and market research to drive revenue.