Business Units - Jamb Commerce Past Questions and Answers

Question 1:

• JAMB 1994

Commerce is defined as the study of how

A. Man utilizes the resources in his physical environment
B. Man produces, distributes and consumes his goods and services
C. Man buys, sells and distributes goods and services
D. Raw materials are changed into finished goods

Question 2:

• JAMB 1994

A distinguishing characteristics of a limited liability company is that it

A. is a collection of many sole proprietors
B. is a multiple partnership
C. Can sue and be sued
D. has limited resources

Question 3:

• JAMB 1994

Which of the following takes place when firms producing at different stages in the same industry combine?

A. conglomeration
B. vertical integration
C. horizontal integration
D. Cartel

Question 4:

• JAMB 1994

Which of the following groups is paid first when a firm liquidates?

A. Preference shareholders
B. Debenture holders
C. Ordinary shareholders
D. Cumulative preference shareholders

Question 5:

• JAMB 1994

Sole enterprise may flourish best in

A. a mining business
B. a retailing business
C. an oil exploration business
D. A car assembly business