10 questions from the JAMB 2021 Commerce paper, with answers and explanations. Tap "Show answer" under each one when you are ready.
JAMB 2021Question 1 · Business Organisation and Management
The principle of span of control stipulates that?
A.The number of employees reporting to one superior should be kept to a workable maximum
B.An employee should report to only one superior
C.Managers must demand accountability from their subordinates
D.Resources have to be economized within the various divisions
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Answer: A. The number of employees reporting to one superior should be kept to a workable maximum
Span of control stipulates that the number of employees reporting to one superior stays at a workable maximum.
JAMB 2021Question 2 · Business Organisation and Management
A provision in the charter of a company which gives holders of common stock the first option to purchase additional issues of the firm's common stock is the
A.pre-emptive right
B.over-subscription right
C.ex-dividend right
D.shareholders right
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Answer: A. pre-emptive right
A pre-emptive right gives common stockholders first option to purchase additional share issues.
JAMB 2021Question 3 · Business Organisation and Management
Use the information below to answer this question A B C Balance Sheet as at 31/12/2004 ₦ Share capital 200,000 Reserves 100,000 Long term liabilities 40,000 Current liabilities 30,000 370,000 ₦ Fixed assets 180,000 Investment 100,000 Current assets 50,000 Fictitious assets 40,000 370,000 What is the capital employed?
A.₦ 340,000
B.₦ 200,000
C.₦ 300,000
D.₦ 170,000
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Answer: A. ₦ 340,000
Capital employed = Share capital 200,000 + Reserves 100,000 + Long-term liabilities 40,000 = N340,000.
JAMB 2021Question 4 · Business Organisation and Management
Departmentalization is an aspect of
A.directing
B.organizing
C.planning
D.controlling
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Answer: B. organizing
Departmentalization is an aspect of organizing.
JAMB 2021Question 5 · Communication and Transportation
Communication process involves the transmission of a message over a selected channel to the
A.encoder
B.receiver
C.audience
D.sender
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Answer: B. receiver
Communication transmits a message over a channel to the receiver.
JAMB 2021Question 6 · Communication and Transportation
The best mode of ensuring that items posted get to the named addresses is through
A.recorded delivery
B.certificate of posting
C.registered mail
D.express mail
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Answer: C. registered mail
Registered mail best ensures posted items reach the named address.
JAMB 2021Question 7 · Law of Contract and Agency
An agency contract must involve
A.a principal and a consumer
B.a principal and an agent
C.a principal and a producer
D.a principal and a third party
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Answer: B. a principal and an agent
An agency contract must involve a principal and an agent.
JAMB 2021Question 8 · Money, Banking, and Stock Exchange
A form of money that has gone out of use is
A.paper money
B.commodity money
C.foreign money
D.bank money
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Answer: B. commodity money
Commodity money has largely gone out of use.
JAMB 2021Question 9 · Money, Banking, and Stock Exchange
A form of money with face value which is greater than the value of the metal contents is
A.bank notes
B.legal tender
C.commodity money
D.token money
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Answer: D. token money
Token money has a face value greater than its metal content's value.
JAMB 2021Question 10 · Production and Insurance
The conversion of raw materials into finished products creates
A.form utility
B.time utility
C.marginal utility
D.place utility
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Answer: A. form utility
Converting raw materials into finished products creates form utility.
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