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JAMB Commerce Past Questions 2016

10 questions from the JAMB 2016 Commerce paper, with answers and explanations. Tap "Show answer" under each one when you are ready.

JAMB 2016Question 1 · Business Organisation and Management
The winding up of a firm by a resolution of its shareholders is an example of
  1. A.voluntary liquidation
  2. B.bankruptcy
  3. C.recession
  4. D.involuntary liquidation
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Answer: A. voluntary liquidation

Winding up by shareholders' resolution is voluntary liquidation.

JAMB 2016Question 2 · Business Organisation and Management
Which of the following is the best method for computing working capital
  1. A.Total assets less current liabilities
  2. B.Current liabilities less current assets
  3. C.Fixed liabilities less current assets
  4. D.Current assets less current liabilities
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Answer: D. Current assets less current liabilities

Working capital is best computed as current assets less current liabilities.

JAMB 2016Question 3 · Commerce Fundamentals and Occupations
Which of the following types of occupation involues services that can be referred to as auxiliaries trade?
  1. A.Constructive occupation
  2. B.Manufacturing occupation
  3. C.Industrial occupation
  4. D.Commercial occupation
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Answer: D. Commercial occupation

Commercial occupation involves services referred to as aids/auxiliaries to trade.

JAMB 2016Question 4 · Communication and Transportation
In the transportation industry, dead freight is used to describe the
  1. A.cost paid for an empty space left in the ship
  2. B.charge for each day a performance was delayed
  3. C.persons that hire a ship for a specific purpose
  4. D.cost of shipping a particular cargo for a specific voyage
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Answer: A. cost paid for an empty space left in the ship

Dead freight is the cost paid for empty space left unused in a ship.

JAMB 2016Question 5 · International, Wholesale, and Retail Trade
The type of wholesaler that combines selling, delivery and collection in one operation is
  1. A.specialist wholesaler
  2. B.rack jobber
  3. C.drop shipment
  4. D.truck wholesaler
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Answer: D. truck wholesaler

A truck wholesaler combines selling, delivery and collection in one operation.

JAMB 2016Question 6 · International, Wholesale, and Retail Trade
Which of the followingis a modern trend in retailing ?
  1. A.Kiosk
  2. B.Mobile shop
  3. C.Vending machine
  4. D.Tied shop
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Answer: C. Vending machine

The vending machine is a modern trend in retailing.

JAMB 2016Question 7 · Law of Contract and Agency
A supplier of flour who intends to sign a contract with a baker through post can establish a binding agreement only
  1. A.after the offeror has made an offer
  2. B.when the offeror's letter has reached the offeree
  3. C.when the offeree's letter has been posted
  4. D.after the offeree's letter has been recieved by the offeror
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Answer: C. when the offeree's letter has been posted

Under the postal rule, a binding agreement forms once the offeree's acceptance letter is posted.

JAMB 2016Question 8 · Money, Banking, and Stock Exchange
The function of money that is mostly affected by inflation is
  1. A.store of value
  2. B.medium of exchange
  3. C.measure of value
  4. D.unit of account
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Answer: A. store of value

Store of value is the function of money most affected by inflation.

JAMB 2016Question 9 · Money, Banking, and Stock Exchange
Which of the following is NOT backed by gold but by government securites?
  1. A.Fiduciary note
  2. B.Token money
  3. C.Commodity money
  4. D.Fiat money
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Answer: A. Fiduciary note

A fiduciary note issue is backed by government securities rather than gold.

JAMB 2016Question 10 · Office Practice and ICT
A group of computers that exchange data is referred to as
  1. A.an information bank
  2. B.a network
  3. C.a database
  4. D.an intranet site
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Answer: B. a network

A group of computers exchanging data is a network.

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