Neco Commerce 2001 Past Questions and Answers

Question 21:

• NECO 2001

What best explains the principle of subrogation in insurable?

A. Both parties of the insurance contract must deal openly and honestly with each other and disclose all relevant facts
B. The right that a person has to stand in the place of another and enjoy all the rights and remedies of that other person
C. There must be a close connection between the risk insured against and the cause of the loss
D. The insurer who insures the same risk with more than one insurer can only recover to the extent of the loss and nothing more, in the occurrence of the event
E. The insured discloses all the material facts which would affect the premium which the insurer charges

Question 22:

• NECO 2001

What is a statement of account? It is a/an ____________

A. Note to inform the customer of an addition to his business transaction
B. Original letter sent to customer asking them to settle their bills
C. Statement of acceptance of credit facilities to a customer
D. Summary of customer’s transactions for a given period
E. Summation of goods sold to a customer for a particular item

Question 23:

• NECO 2001

A syndicate is an/a ____________

A. Association formed by the joining together of firms which were previously independent
B. Association of firms at the same stage of production, formed for the purpose of keeping up prices
C. Association of firms for the regulation of output and prices
D. Combination of firm which carry on the same kind of business such as retailing
E. Company that controls one or more other companies by holding majority of their shares

Question 24:

• NECO 2001

The bringing of ownership and management of a former private industry under the control of the government is called

A. Corporation
B. Industrialization
C. Nationalization
D. Participation
E. Privatization

Question 25:

• NECO 2001

The feature of a supermarket is ____________

A. Having central control from head-office
B. Sales common household goods
C. Sales of goods without owning shops
D. Similarity in shops’ frontages
E. That there are many shops under a roof