RESONANCE MODEL SECONDARY SCHOOL

UMUAHIA FIRST TERM EXAMINATION 2022/2023 ACADEMIC YEAR

SUBJECT: COMMERCE

CLASS: SS 2 ARTS TIME: 2HRS

SECTION A: OBJECTIVE

1. Which of the following would not be stated in a memorandum of association ( a) Objective of

the company ( b)Registered office ( c)Name of the company ( d) Right of shareholders
2. If a company wishes to discourage imports ( a)It subsidizes exports ( b)It removes quatas ( c)It
imposes tariffs ( d) it encourages free trade
3. An advantages of a public limited company over a private one is the ( a) Limited liability of share
holders( b)easy transferability of shares ( c)access to retained earnings ( d)Less taxation
4. An organization formed mainly by traders on the same line of business is known as ( a)Trade
union ( b) Corporate society ( c)Chamber of commerce ( d) Trade association
5. A dormant partner is one who ( a)Does not ( b) Lent his name to the business ( c)Does not
partake in running the business ( d) has limited liability
6. The right that a debenture holder has on the earnings of a company is ( a) Dividend ( b) Lien( c)
Interest( d)Rent
7. A limited company can raise long term capital through the ( a)Stock exchange Market ( b)
Foreign exchange ( c) Commodity Market( d)Export Market
8. The buying and selling of goods and services within a country is called ( a) Counter Trade
( b)Home Trade ( c)Foreign Trade ( d)Entrepot trade
9. The relationship between partners is stipulated in the ( a) Memorandum of association ( b)
Certificate of incorporation ( c) Article of association ( d) Partnership deed
10. A firm that accepts sells and delivers goods by post is ( a) Mail order Business( b) department
stores( c) Multiple store( d) Super Market
11. A business that is independent of its owners is a ( a) Sole proprietorship( b) Co-operative Society
( c) Partnership( d)Limited liability Company
12. An organization of producers of similar products, which controls output with the intention to fix
a price is ( a) Cartel( b) Consortium ( c)Trust ( d) Syndicate
13. One of the functions of a trade association is to ( a) Provide infrastructure for member (
b)Provide employment for member ( c)promote members welfare ( d)pay members salaries
14. A document through which the public is invited to subscribe to the shares of a company is a (
a)Financial report ( b) Prospectus ( c) Memorandum of association ( d) Article of association
15. The internal regulations of a limited company are stated in the ( a) Memorandum of association
( b)Share certificate ( c) Certificate of incorporation( d)Articles of association
16. A private limited company differs from a public limited company because is _________
( a) Cannot al transfer share( b) Declares dividend ( c)Has a separate entity from the owner (
d)Offers right issue to existing shareholders
17. Which of the following justifies the existence of public enterprises ( a) Making quick decision (
b)Creating Monopoly ( c)Making profit for government ( d) Providing essential services
18. Those who are engaged in exploiting natural resources are in ( a) Commercial occupation (b)
Extractive occupation ( c) Manufacturing occupation ( d) Construction Occupation
19. The cooperative society that performs a combination of the functions of other types of
cooperative is called ( a) Consumer (b)Producer cooperative ( c) Thrift Cooperative ( d)
Multipurpose cooperative
20. Trade as a division of commerce is usually classified into ( a) Retail and wholesale (b) Home and
foreign ( c) Import and export ( d)visible and invisible
21. The document that permits public liability company to commence operation after incorporation
is ( a) Certificate of trading (b) Prospectus ( c) Article of association ( d) Memorandum of
association
22. An article used as a means of exchange in the early days of trade in west Africa was ( a) Cedi (b)
Cowrie( c) Dalasi ( d)Naira
23. The provision of services is classified under ( a) Batch production (b) Bag of cement ( c)
Television ( d)Chair
24. One of the products of the construction industry is a ( a)Pie of cloth (b) Bag of cement( c)
Television ( d) Chair
25. The resources put together to create goods and services are ( a) Working capital(b)Producer
goods ( c) factors of production ( d) Consumer goods
26. Which of the following organization provide essential goods and services at low cost to citizens (
a) Thrift Societies(b) Public Enterprises ( c) Private companies ( d) Cooperative societies
27. A group of sellers who pool their resources to buy goods in large quantities and sell to its
members is a ( a) Wholesale cooperative society(b) Thrift and credit society( c)consumer
cooperative society ( d) Chambers of commerce
28. A partner who contributes only his name to the formation of a partnership is ( a)a nominal
partner (b) A limited partner ( c)a general partner ( d) an active partner
29. The quality of money which makes it possible to buy goods in small quantities is ( a)Portability
(b)Homogeneity ( c) Divisibility ( d)Durability
30. An association of traders or producers engaged in the same line of business or trade is ( a)
Chambers of commerce (b)Carted ( c) Consortium ( d)Trade association
31. Another name for shares, stocks, debentures traded in the stock exchange is ( a) Securities(b)
Wares ( c) Bills ( d) Collaterals
32. Industrial, commercial and direct services are branches of ( a)exchange (b)Distribution ( c)
Manufacturing ( d) Occupation
33. A private company is one which ( a) Restrict the rights to transfer its shares (b)Must publish its
audited account ( c) is owned by maximum of twenty members( d) floats its share on the stock
exchange
34. A business from which controls more than half of another firm’s equity is a ( a) Holding
company(b) Syndicate ( c) Cartel ( d) Consortium
35. Which of the following has open membership? ( a) Public enterprise (b) co –operative society (
c) Limited company ( d) Partnership
36. The main aim of credit and thrift societies is to ( a) Encourage savings among members (b)
Settle disputes among members( c) Educate ( d)Secure loan for members
37. Which of the following is not an aid to trade? ( a) Banking(b) Production( c) Insurance (
d)Advertising
38. The main feature of a holding company is ( a) That resources are used for the interest of the
community (b) Accepting responsibilities beyond the aim of private enterprise ( c) That it has
financial control over other companies ( d) That it has profit sharing schemes for employees
39. Entrepot trade means ( a)Exchange of goods between two countries(b)Exchange of goods
among countries ( c) Importing goods to be re - exported ( d) Exporting goods to be re-
imported
40. A partner with an unlimited liability is known as (a)dormant partner ( b) nominal partner (c)
General partner ( d) sleeping partner
41. A public limited company can enter into contract because it ( a) has many employees (b) is legal
entity ( c)Is allowed to take out debentures ( d) has shareholders
42. Taxes imposed on locally made goods are known as ( a) ad valoren duties(b) Import duties ( c)
Excise duties ( d) Export draw back
43. The greatest risk in a business venture is borne by the ( a)Trade creditors (b) Entrepreneurs( c)
Employees( d) Trade debtors
44. A private company is ability to raise capital is limited because ( a)Its shares cannot be made
public (b) Its borrowing powers are limited( c) Membership does not exceed fifty ( d) of limited
collateral security
45. Who among the following does not render direct services? ( a) Wholesaler (b) Cook ( c) Doctors
( d)Barber
46. Contributing money to buy equipment for making and marketing product is a feature of ( a)
Consumers cooperative (b) Producers cooperatives( c) Thrift societies ( d) barber
47. The operations of a private company is guided by the ( a) Certificate of incorporation (b)
Certificate of training ( c) deed ( d)articles of association
48. The various rights attached to different classes of shares are stated in the ( a)Memorandum of
association (b) Articles of association ( c) Financial of reports ( d) Certificate of incorporation
49. Which of the following business can raise capital through the stock exchange ( a)Sole
proprietorship (b) Cooperative society ( c) Public company ( d) Private company
50. Which of the following must be included in the article of association ( a)The objective of the
business (b)Voting right of the shareholders ( c)The address of the registered office ( d)list of
types of shares
51. A group of people representing a cross section of business interest in area is ( a) Consumers
association (b) Employers association ( c) Manufacturer’s association ( d) Chamber of commerce
52. Bonded warehouses are supervised by ( a) Clearing and forwarding agents (b) Immigration
officers ( c)Customs and excise authorities ( d)Post authorities
53. The collection of import duty is function of the ( a) Customs and excise authority(b)Ports
authority ( c) Marketing boards ( d) Clearing and forwarding agents
54. A number of shops under one roof is a ( a)Chain store (b) discount store ( c) Department store (
d) Unit store
55. The reward of land as a factor of production is ( a)Wage (b) Rent ( c) Profit ( d) Interest
56. All activities geared towards the distribution and exchange of goods and services is ( a) Market
survey (b)Commerce ( c) Personal selling ( d) Trade
57. The word ‘Limited’ written after the name of a company means that ( a) It has a democratic
system of management (b) profit is determined by management ( c) The company is a going
concern ( d) Members are liable to the extent of their shareholdings only
58. Commerce started as a result of a ( a)Competition (b) Specialization ( c) Distribution ( d)
Privatization
59. The process of changing raw materials into finished goods is ( a) Construction (b) Extraction( c)
Manufacturing ( d) Marketing
60. The practice of selling goods to a foreign country at lower prices than obtainable in the
exporting country is ( a)Dumping (b) Speculation ( c) Skimming ( d) Heading

SECTION B THEORY

Answer five questions only

1. Outline four functions of trade association

2. Explain the following documents used in formation of a company ( a) Memorandum of
Association(b)Article of Association ( c) Prospectus ( d) certificate of incorporation
3. Highlight four advantages of public corporation
4. Explain four differences between private limited company and public limited company and
public limited company in a tabular form
5. a. What is Chamber of commerce?
b. State three functions of chamber of commerce

6. a. What is cooperative society

b. Explain three types of co-operative societies

7. a. What is career? b. State three factors to consider in choosing a career.