2023 NECO COMMERCE PAST QUESTION AND ANSWER.
In this post you will have shared with you the 2023 neco commerce past question and answers.
2023 NECO COMMERCE OBJECTIVES QUESTIONS
1.Selling a product to the buyer who
pays the highest price is
A.auctioning.
B.forward sale.
C.hire purchase.
D.marketing.
E.tendering.
2.A letter of enquiry is usually writtenby the
A.agent to transporter.
B.buyer to seller.
C.seller to buyer.
D.seller to transporter.
E.transporter to seller.
3.Customer services can besub-divided intoA.occasional and on-the-spotdelivery.B.packaging and labelling.C.personal and special.D.pre-sales and after-sales.E.special and home delivery.
4.Commercialization is concerned
A. withA.dissolution of governmententerprises.
B.foreign ownership ofcompanies.
C.ownership of companies bycitizens.
D.running of governmententerprises with profitmotive.
E.taking over of privateenterprises by government.
5. The document sent by the seller to the buyer to correct error of undercharge is note.
A. advice
B..credit
C. debit
D. delivery
E. promissory
6. The commonest means of settling business transactions in Nigeria is
A. bank draft.
B. bank note.
C. bearer cheque.
D. credit card.
E. credit transfer.
7. The combination of mental and physical efforts in production simply defines
A. entrepreneurship.
B. labour.
C. organizing.
D. planning.
E. specialization.
8. Sales promotion is mostly used to
A. introduce a new product to the market.
B. market hardwares to companies.
C. sell luxury goods.
D. sell only consumable products.
E. sell products in rural areas only.
9. Mining of minerals belongs to occupation.
A. commercial
B. constructive
C. extractive
D. manufacturing
E. tertiary
10. The actual cash and assets used in running a business are known as
A. capital employed.
B. fixed assets.
C. liquid assets.
D. loan capital.
E. working capital.
11. The abbreviation"E" and"OE”stands for
A. end of error.
B. errors and omissions excepted.
C. errors and options expected.
D. errors of exception.
E. estimate and order error.
12. Human resources of any business organization are referred to as
A. machinery and plants.
B. management and
opportunities.
C. money and credit.
D. personnel and manpower.
E. tools and equipment.
13. A cheque that is drawn on a bank by itself is called
A. bank draft.
B. bank note.
C..bearer cheque.
D. certified cheque.
E. order cheque.
14. Indomie noodles produced in LagoS is made available to consumers in Sokoto through
A. advertising.
B. distribution.
C exchange.
D. franchising.
E. warehousing.
15. Granting permission to pay at intervals the amount involved in purchase of goods explains
A. credit.
B. deferred payment.
C. hire purchase.
D. loan.
E. overdraft.
16. The most suitable means of transporting crude oil within Nigeria is by
A. air.
B. pipeline.
C. rail.
D. road.
E. water.
17. The common units of Nigeria currency are
A..cheque and bank draft.
B. cheque and naira.
C. dollar and pounds.
D..naira and kobo.
E..postal and money order.
18..Which of the following is mostly used to sell technical goods that require demonstration?
A..Bill board
B..Consumer service
C..Featured article
D..Personal selling
E. Window display.
19. The fastest and safest means of payment in foreign trade is by
A..bank draft.
B. bill of exchange.
C..electronic transfer.
D. letter of credit.
E. promissory note.
20. Which of the following abbreviated terms includes the price of goods, insurance charges and cost of transport?
A. C&F.
B. C.I.F.
C. F.A.S.
D. F.O.B.
E. LOCO.
21. Standing order is also known as
A..bank giro.
B. banker's order.
C. credit transfer.
D. money order.
E.postal order.
22. In which of the following business ventures is capitalraised through sale of shares?
A. Cooperative society
B. Partnership
C..Public enterprise
D..Public liability company
E. Sole proprietorship
23. Telephone and telex services are rendered by
A. courier.
B. mail order.
C. post office.
D. telecommunication.
E. teleprinter.
24. The Central Bank is owned by
A..board of directors.
B. businessmen.
C. commercial banks.
D. government.
E. shareholders.
25. The following services are provided by credit unions except
A. advising members on the use of funds.
B. confirming members' indebtedness.
C. granting loans to the general public.
D. helping members to save.
E. sharing profit to members.
26. Assets that can easily be converted into cash are referred to as
A. capital.
B..fixed assets.
C. goodwill.
D. liquid assets.
E. working capital.
27. The method of payment common to supermarkets is
A. cash on delivery.
B. cash with order.
C. credit sales.
D. prompt cash.
E. spot cash.
28. Which of the following is an electronic medium of advertisement?
A. Catalogue
B. Exhibition
C. Television
D. Trade fair
E. Window display.
29. A representative who has
unrestricted authority to enter into a
contract on behalf of his principal is
called agent.
A. advertising
B. commission
C. general
D. special
E. universal.
30. Which of the following goods has the lowest rate of turnover?
A. Clothing
B. Exercise books
C. Office stationery
D. Refrigerator
E. Staple foods
31. Which of the following is an industrial occupation?
A. Banking
B. Hair dressing
C..Retailing
D. Soap making
E. Teaching
32..The part of capital that is required for the payment of salaries and wages,rates and other running costs is capital.
A. authorised
B. circulating
C. fixed
D. registered
E. social.
33. Which of the following is not an objective of a business?
A. Cost maximization
B. Maximization of profit
C..Production of quality products
D..Provision of employment opportunities
E. Provision of social amenities.
34..One major disadvantage of a credit and thrift cooperative is that it
A. allows each member to vote during meetings.
B. can approach govemnment for a loan.
C. creates cooperation among members.
D. encourages savings habit.
E. has danger of nonpayment of loan.
or
Use the information below to answer questions 35 and 36.
XYZ Limited total sales was
N200,000.It had opening stock of
N120,000 and closing stock of
N22,000.It bought goods worth
N80,000 and paid N2,000 forrent.
35. XYZ Limited gross profit is
A. N20,000:00.
B. N22,000:00.
C. N38,000:00.
D. N42,000:00.
E. N58,000:00.
36. XYZ Limited net profit is
A. N20,000:00.
B. N22,000:00.
C. N24,000:00.
D. N38,000:00.
E.N58,000:00.
37. The Act which ensures quality control of finished products in Nigeria is Act.
A. Food and Drugs
B. Hire Purchase
C.Price Control
D. Sales of Goods
E. Standards Organisation.
38. Which of the following is a manufacturing activiy?
A..Bag making
B..Bricklaying
C. Bridge building
D. Farming
E. Mining.
39. Seyi received a cheque of N500,000 from Mrs.Regu and the cheque got lost. What must Seyi do?
A. Inform his bank to stop payment
B. Inform Mrs.Regu to tell her bank to stop payment
C. Simply ask Mrs. Regu for another cheque
D. Tell his bank to add the amount to Mrs.Regu's bank balance
E. Wait until the cheque is found.
40. Door-to-door sales of goods and services is also referred to as
A. consumer services.
B. personal selling.
C. public relations.
D. sales promotion.
E. window shopping.
41. The importance of warehousing has increased recently due to the need t
A. hoard some goods.
B. fight increase in smuggling.
C. keep durable goods only.
D. produce in anticipation of demand.
E. store perishable goods.
42. Which of the following is not a modern means of making payment
A. Bank draft
B. Cheque
C. Cowrie
D. Postage stamp
E. Postal order.
43. The collective name for factors of production is
A. advanced technology.
B. capital.
C. gift of nature.
D. outputs.
E. resources.
44. The advertisement message "Be important,be successful,use Macleans toothpaste" is an example of
A. direct advertising.
B. advertising.
C. personal selling.
D. persuasive advertising.
E. sales promotion.
45. When the holder of a current account issues standing order to the bank,it means that
A. a specified number of guarantors must be supplied by the account holder.
B. the account holder cannot obtain loan over a certain ceiling from the bank.
C. the account holder receives overdraft facility regularly.
D. the bank makes regular payment on behalf of the account holder.
E. the bank must regularly supply statement of account to the account holder.
46. An advantage of road transport over other means of transport is
A. cheapness.
B. convenience.
C. flexibility.
D. safety.
E. speed.
47. The wide range of services rendered to customers before the purchase of a product is
A. after-sales services.
B. consumer services.
C. customer warranty.
D. personal selling.
E. pre-sales services.
48. Fedex, UPS, DHL,IAS are examples of
A. commercial banks.
B. courier service companies.
C. government corporations.
D. international organizations.
E. public postal services.
49. Activities other than advertising, personal selling and publicitygeared towards increasing the sales of a particular product or service are referred to as
A. large scale selling.
B. premium offer.
C. public relations.
D. sales promotion.
E. trade fair.
50. Which of the following documents is not used in the shipment of goods?
A. Bill of exchange
B. Bill of lading
C. Insurance certificate
D. Letter of indent
E. Mate's receipt
51. The reward for labour is
A. interest.
B. premium.
C. profit.
D. rent.
E. wage.
52. The Nigeria Labour Congress (NLC) is an example of
A association of firms,
B. chambers of commerce.
C. cooperative society.
D. holding company.
E. trade union.
53. The workers concerned with changing raw materials into finished goods are involved in occupation.
A. commercial
B. constructive
C. extractive
D. manufacturing
E. tertiary.
54. Which of the following is the most important business resource?
A. Machines
B. Manpower
C. Materials
D. Money
E. Motivation.
55. Circulating capital consists of
A. M currency notes and coins that pass from one person to another.
B. houses,motor vans and bank loans.
C. land, buildings,fixtures and fittings.
D. old and new securities traded in the stock market.
E. stock,cash in hand,cash at bank and debtors.
56. An advantage of division of labour that it
A. increases unemployment.
B. is very expensive.
C. leads to monotony.
D. makes workers to acquire th relevant skills.
E. makes workers to be interdependent.
57. The Sales of Goods Act of 1893 an Trade Description Act of 1968 are meant to give protection to
A. consumers.
B. manufacturers.
C. producers.
D. retailers.
E. wholesalers.
58. A person who acts on behalf of another is called a/an
A. agent.
B. broker.
C. client.
D. principal.
E. tycoon.
59. Rendering expert advice to a customer on how to use a purchased product is an example of
A. after-sales services.
B. M customer warranty.
C. personal selling.
D. pre-sales services.
E. public relations.
60. The following are hard commodities traded on the commodity exchange except
A. coal.
B. cocoa.
C. gold.
D. silver.
E. tin.
2023 NECO COMMERCE THEORY QUESTIONS
1. Enumerate and discuss five roles of advertising.
2. Give two differencs between an employer and an empioyee.
List and explain four duties of an employee.
3. (a)Define insurance.
(b) Mention and expatiate four principles of insurance.
4.
(a)Give four reasons small business units tend to survive in spite of stiff competition from large ones.
(b) State two differences between small and large scale retail outlets. (4 marks)
(c) Mention four examples each of small and large scale retail outlets. (8 marks)
5.(a) What is second-tier securities market?
(b) Explain four requirements for admission into second-tier securities market.
(c) List four methods of admission into second-tier securities market.
6. (a) Define economic grouping.
(b) Highlight eight objectives of Economic Community of West African States (ECOWAS).
7.
(a) Mention and explain four institutions that are involved in the money market.
(16 marks)
(b) Give two differences between soft and hard commodities traded in commodity exchange.
8. (a) What is Customs and Excise Authority?
Enumerate and explain four functions of Customs Authority.
9. Write short notes on the following:
i. Bond
ii. Carrier
iii. Communication
iv. Debenture
V. Transportation.
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