JAMB Commerce questions

307 questions with answers and explanations. Tap an option to check yourself.

1. Question 201· Home trade: retail and wholesale· JAMB

   Which of these is a function of the wholesaler to the manufacturer?

   • Abuying in bulk, so the manufacturer can concentrate on production
   • Bgiving credit to consumers
   • Cdisplaying goods in shops
   • Dselling in small quantities to consumers

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   Explanation and discussion

2. Question 202· Home trade: retail and wholesale· JAMB

   A franchise is an arrangement in which

   • Agoods are bartered
   • Ba firm closes
   • Cgovernment owns a shop
   • Da business is allowed to trade under another firm's brand

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   Explanation and discussion

3. Question 203· Insurance· JAMB

   The document setting out the terms of an insurance contract is the

   • Apolicy
   • Bproposal form
   • Ccover note
   • Dclaim form

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   Explanation and discussion

4. Question 204· Insurance· JAMB

   Proximate cause in insurance means

   • Athe premium
   • Bany remote cause
   • Cthe main, direct cause of a loss
   • Dthe policy date

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   Explanation and discussion

5. Question 205· Insurance· JAMB

   Marine insurance covers

   • Afire in homes
   • Blife
   • Cships and their cargoes against risks at sea
   • Dmotor vehicles

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   Explanation and discussion

6. Question 206· Insurance· JAMB

   Insurable interest means the insured

   • Aowns no property
   • Bwould suffer financial loss if the event occurred
   • Cis a broker
   • Dis the insurer

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   Explanation and discussion

7. Question 207· Insurance· JAMB

   Mr Ade insured his shop for ₦600,000 with Company X and for ₦400,000 with Company Y. A fire causes a loss of ₦500,000. Under the principle of contribution, Company Y pays

   • A₦200,000
   • B₦250,000
   • C₦400,000
   • D₦500,000

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   Explanation and discussion

8. Question 208· Insurance· JAMB

   Reinsurance means

   • Aan insurer passing part of a large risk to another insurer
   • Binsuring the same risk twice for profit
   • Ccancelling a policy
   • Dpaying the premium twice

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   Explanation and discussion

9. Question 209· Insurance· JAMB

   The principle that the insured must stand to lose financially if the insured item is damaged is

   • Autmost good faith
   • Binsurable interest
   • Ccontribution
   • Dproximate cause

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   Explanation and discussion

10. Question 210· Insurance· JAMB

    A cover note is

    • Aa claim form
    • Bthe final policy
    • Ca temporary document giving cover until the policy is issued
    • Da premium receipt

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    Explanation and discussion

11. Question 211· Insurance· JAMB

    After paying a claim, the insurer takes over the insured's right to recover the loss from a third party. This is

    • Acontribution
    • Bsubrogation
    • Cindemnity
    • Dabandonment

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    Explanation and discussion

12. Question 212· Insurance· JAMB

    Reinsurance is

    • Afraud
    • Ba second policy by a customer
    • Cinsurance by an insurer of part of its risk with another insurer
    • Da refund

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    Explanation and discussion

13. Question 213· Insurance· JAMB

    Contribution in insurance applies when

    • Athe insured dies
    • Bonly one insurer exists
    • Cthere is no loss
    • Da property is insured with more than one insurer

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    Explanation and discussion

14. Question 214· Insurance· JAMB

    The principle of proximate cause means the insurer pays only when the loss

    • Ais larger than the premium
    • Bwas caused directly by the risk insured against
    • Chappened at night
    • Dwas reported late

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    Explanation and discussion

15. Question 215· Insurance· JAMB

    Third-party motor insurance is compulsory in Nigeria because it

    • Aprotects other people who are injured or whose property is damaged
    • Bcovers the owner's car
    • Ccovers theft of the car
    • Dis very cheap

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    Explanation and discussion

16. Question 216· Insurance· JAMB

    Under the principle of indemnity, after a loss the insured should be

    • Arestored to the position just before the loss
    • Bpaid twice the value of the loss
    • Callowed to profit from the loss
    • Dpaid only the premium back

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    Explanation and discussion

17. Question 217· Insurance· JAMB

    The principle of insurance that requires the insured to disclose all material facts is

    • Aindemnity
    • Bsubrogation
    • Ccontribution
    • Dutmost good faith

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    Explanation and discussion

18. Question 218· Insurance· JAMB

    Life assurance differs from insurance because life assurance covers

    • Aan event that is certain to happen
    • Ban event that may never happen
    • Conly fire risks
    • Donly marine risks

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    Explanation and discussion

19. Question 219· Insurance· JAMB

    The amount paid regularly by the insured to the insurer is the

    • Aindemnity
    • Bpremium
    • Cclaim
    • Dsurrender value

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    Explanation and discussion

20. Question 220· Insurance· JAMB

    Marine insurance covering a ship itself is

    • Afreight insurance
    • Bcargo insurance
    • Chull insurance
    • Dlife insurance

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    Explanation and discussion