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
- A.voluntary liquidation
- B.bankruptcy
- C.recession
- 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
- A.Total assets less current liabilities
- B.Current liabilities less current assets
- C.Fixed liabilities less current assets
- 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?
- A.Constructive occupation
- B.Manufacturing occupation
- C.Industrial occupation
- 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
- A.cost paid for an empty space left in the ship
- B.charge for each day a performance was delayed
- C.persons that hire a ship for a specific purpose
- 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
- A.specialist wholesaler
- B.rack jobber
- C.drop shipment
- 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 ?
- A.Kiosk
- B.Mobile shop
- C.Vending machine
- 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
- A.after the offeror has made an offer
- B.when the offeror's letter has reached the offeree
- C.when the offeree's letter has been posted
- 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
- A.store of value
- B.medium of exchange
- C.measure of value
- 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?
- A.Fiduciary note
- B.Token money
- C.Commodity money
- 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
- A.an information bank
- B.a network
- C.a database
- 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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