JAMB Commerce questions

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

1. Question 121· Elements of commercial law· JAMB

   A contract induced by misrepresentation is usually

   • Aillegal
   • Bvoid from the start
   • Cvalid and unchangeable
   • Dvoidable

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2. Question 122· Elements of commercial law· JAMB

   A trademark is

   • Aa distinctive sign identifying a firm's goods
   • Ba contract
   • Ca patent
   • Dan export licence

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   Explanation and discussion

3. Question 123· Elements of commercial law· JAMB

   A contract to commit a crime is

   • Avalid
   • Billegal and void
   • Cvoidable
   • Denforceable

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4. Question 124· Financing a business· JAMB

   Gross profit is ₦40,000 on sales of ₦160,000. The gross profit margin is

   • A33⅓%
   • B40%
   • C25%
   • D16%

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5. Question 125· Financing a business· JAMB

   Holders of ordinary shares in a company

   • Areceive a fixed rate of dividend
   • Bbear the greatest risk and may receive variable dividends
   • Care paid before debenture holders
   • Dare creditors of the company

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6. Question 126· Financing a business· JAMB

   Trade credit as a source of finance means

   • Aleasing equipment
   • Bborrowing from a commercial bank
   • Cselling shares to the public
   • Dreceiving goods now and paying the supplier later

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7. Question 127· Financing a business· JAMB

   Working capital is calculated as

   • Acapital minus drawings
   • Bfixed assets plus current assets
   • Ccurrent assets minus current liabilities
   • Dsales minus cost of sales

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8. Question 128· Financing a business· JAMB

   Trade credit is a source of finance in which

   • Ashares are sold
   • Bbanks give overdrafts
   • Csuppliers allow goods to be paid for later
   • Dgovernment gives grants

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9. Question 129· Financing a business· JAMB

   A trader's capital is ₦600,000 and liabilities are ₦150,000. Total assets are

   • A₦450,000
   • B₦750,000
   • C₦600,000
   • D₦150,000

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10. Question 130· Financing a business· JAMB

    Leasing allows a firm to

    • Aown an asset at once
    • Buse an asset by paying rent without buying it
    • Csell shares
    • Dborrow from friends

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11. Question 131· Financing a business· JAMB

    Gross profit is ₦150,000 on sales of ₦600,000. Find the gross profit margin.

    • A4%
    • B15%
    • C40%
    • D25%

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12. Question 132· Financing a business· JAMB

    A business has current assets of ₦300,000 and current liabilities of ₦150,000. Its current ratio is

    • A₦450,000
    • B1 : 2
    • C2 : 1
    • D₦150,000

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13. Question 133· Financing a business· JAMB

    A trader's opening stock is ₦20,000, closing stock ₦30,000 and cost of goods sold ₦100,000. The rate of turnover is

    • A4 times
    • B5 times
    • C3.3 times
    • D10 times

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14. Question 134· Financing a business· JAMB

    Cost of sales is ₦240,000 and average stock is ₦40,000. Find the rate of stock turnover.

    • A6 times
    • B4 times
    • C10 times
    • D9,600 times

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15. Question 135· Financing a business· JAMB

    Ploughing back profit into the business is a source of

    • Aexternal finance
    • Binternal finance
    • Cshort-term borrowing
    • Dtrade credit

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16. Question 136· Financing a business· JAMB

    Venture capital is provided mainly to

    • Agovernment ministries
    • Bnew or risky businesses with growth potential
    • Cpensioners
    • Dthe Central Bank

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17. Question 137· Financing a business· JAMB

    Which of the following is a source of long-term finance for a company?

    • ABank overdraft
    • BIssue of debentures
    • CTrade credit
    • DHire purchase of stationery

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18. Question 138· Financing a business· JAMB

    Debenture holders differ from shareholders because debenture holders

    • Aown the company
    • Bshare in the profit as dividend
    • Cvote at general meetings
    • Dare creditors who receive a fixed rate of interest

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19. Question 139· Financing a business· JAMB

    Capital used for the day-to-day running of a business is

    • Afixed capital
    • Bloan capital
    • Cworking capital
    • Dcalled-up capital

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20. Question 140· Foreign trade· JAMB

    Goods imported into a country only to be re-exported to another country are involved in

    • Aentrepôt trade
    • Bbarter trade
    • Ccounter trade
    • Dretail trade

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    Explanation and discussion