Neco Commerce 2002 Past Questions and Answers

Question 6:

• NECO 2002

What is defined as an agreement to pay an initial deposit for an object and then pay the balance in regular instalments while having the use of the object”?

A. Conditional sales
B. Credit sales
C. Hire purchase
D. Leasing
E. Trade-in sales

Question 7:

• NECO 2002

What is a characteristic of a public limited company?

A. The dividend is shared equally
B. Shares are not dealt with in the stock exchange
C. Shares are offered freely to members
D. The liabilities are not limited
E. There is no limit to the number of members

Question 8:

• NECO 2002

Which insurance principle indicates that only the person who might suffer financial loss will be allowed to take out insurance?

A. Indemnity
B. Insurable interest
C. Pooling of risks
D. Subrogation
E. Uberrimae tides

Question 9:

• NECO 2002

The document usually sent to each customer by the bank periodically showing the balance outstanding in an account is known as ____________

A. Balance sheet
B. Petty cash voucher
C. Receipt
D. Statement of account
E. Voucher

Question 10:

• NECO 2002

An already existing line of product is advertised in order to ____________

A. Build brand recognition
B. Develop customers’ awareness
C. Entertain customers
D. Introduce a price deal
E. Retain old customers