WAEC Commerce questions

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

1. Question 121· Elements of commercial law· WAEC

   In the sale of goods, 'caveat emptor' means

   • Alet the seller beware
   • Blet the buyer beware
   • Cgoods must be returned
   • Dprices are fixed

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2. Question 122· Elements of commercial law· WAEC

   A contract made by a minor for necessities is

   • Abinding
   • Bvoid in all cases
   • Cillegal
   • Dcriminal

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3. Question 123· Elements of commercial law· WAEC

   A valid contract must have

   • Aa lawyer present
   • Bonly an offer
   • Coffer, acceptance and consideration
   • Da written document in every case

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4. Question 124· Elements of commercial law· WAEC

   Goods displayed in a shop window with price tags are

   • Aa binding offer
   • Ban invitation to treat
   • Can acceptance
   • Da completed contract

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5. Question 125· Elements of commercial law· WAEC

   A patent protects

   • Aa building
   • Ba song
   • Ca company name
   • Dan invention

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6. Question 126· Elements of commercial law· WAEC

   An essential element of a valid contract is

   • Aadvertisement
   • Boffer and acceptance
   • Can invoice
   • Da witness

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7. Question 127· Elements of commercial law· WAEC

   Consideration in a contract means

   • Aa legal penalty
   • Bthe written agreement
   • Ca court case
   • Dsomething of value given by each party

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8. Question 128· Elements of commercial law· WAEC

   A contract is

   • Aany promise between friends
   • Ba legally binding agreement between two or more parties
   • Ca social arrangement
   • Da type of tax

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9. Question 129· Elements of commercial law· WAEC

   The essential elements of a valid contract include

   • Adelivery only
   • Badvertisement and display
   • Cbargaining only
   • Doffer, acceptance and consideration

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10. Question 130· Financing a business· WAEC

    Debentures are

    • Aprofits kept
    • Bordinary shares
    • Cgrants
    • Dloans to a company carrying fixed interest

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11. Question 131· Financing a business· WAEC

    Ploughed-back profit is a source of

    • Ainternal finance
    • Bexternal loan
    • Cgovernment grant
    • Dforeign aid

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12. Question 132· Financing a business· WAEC

    Turnover means

    • Awages paid
    • Btotal profit
    • Cfixed assets
    • Dtotal sales over a period

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13. Question 133· Financing a business· WAEC

    Holders of debentures receive

    • Adividends only when profit is made
    • Bfixed interest whether or not the company makes a profit
    • Cvoting rights at meetings
    • Da share of ownership

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14. Question 134· Financing a business· WAEC

    Debenture holders receive

    • Avoting rights
    • Bdividends from profit
    • Cfixed interest whether or not the company makes a profit
    • Dthe business's goodwill

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15. Question 135· Financing a business· WAEC

    Capital employed is

    • Aturnover
    • Bcurrent assets only
    • Ccash in hand
    • Dtotal assets minus current liabilities

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16. Question 136· Financing a business· WAEC

    A source of long-term finance for a company is

    • Aa bank overdraft
    • Bissuing shares or debentures
    • Ctrade credit
    • Daccrued expenses

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17. Question 137· Financing a business· WAEC

    Ordinary shareholders receive

    • Adividends that vary with profit
    • Bfixed interest
    • Cno voting rights
    • Dguaranteed returns

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18. Question 138· Financing a business· WAEC

    Which of these is NOT a short-term source of finance for a business?

    • Aaccrued expenses
    • Bbank overdraft
    • Ctrade credit
    • Dissue of ordinary shares

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19. Question 139· Financing a business· WAEC

    A business has current assets of ₦80,000 and current liabilities of ₦50,000. Its working capital is

    • A₦80,000
    • B₦130,000
    • C₦50,000
    • D₦30,000

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20. Question 140· Financing a business· WAEC

    Capital that a business uses for its day-to-day operations is

    • Aauthorised capital
    • Bfixed capital
    • Cworking capital
    • Dcalled-up capital

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    Explanation and discussion