Tutorial Questions in Commerce ~ Part 1 (SS 2)

SECTION A – OBJECTIVES 

1. Which of the following is sent as a reply to an inquiry____________                    (a) tender (b) estimate (c) advice note (d) statement (e) quotation 

2. E&O.E stands for ___________ (a) error and omissions expected    (b) errors and orders excepted (c) expect omissions and errors (d) errors and omissions excepted (e)expects omissions excluded. 

3. If a seller discovers that he has undercharged a buyer which of the following documents will he use to correct the error? ________ (a) a promissory note (b) a credit note (c) an advice note (d) a debit note (e) a statement of account. 

4. A document which a retailer sends to a wholesaler requesting him to supply certain items is called _____________ (a)a letter of inquiry (b)a catalogue (c)an invoice (d)an order (e) a tender invoice




5. When a seller sends a pro-forma invoice to potential customer it is ___________ (a) an indication that the seller is out of business (b)an indication that the goods are out of stock (c) a polite way of asking him to return the goods already purchased (d) an invitation to the purchaser to buy on hire purchase (e) an indication that credit will not be granted. 

6. Which of the following accompanies goods supplied and forms a receipt when signed by the consignee__________ (a) invoice (b) order (c) delivery note (d) requisition note (e) advice note 

7. A deduction made by a wholesaler from the catalogue price and which represents retailer’s profit margin is called____________ (a)cash discount (b)deferred payment (c) trade discount (d) quantity discount (e) cash on delivery. 

8. Which of the following relies on the government for its initial capital _____________ (a) co- operative society (b) private limited company (c) public corporation (d) public limited company (e) credit and thrift society 

9. Which of the following is sent when credit is not allowed ______  (a) debit note (b) proforma invoice (c)credit note (d) statement (e) advice note 

10. An invoice is prepared in ___________ copies (a) two (b)three (c)four (d)six (e)five 

11. Which of the following is an essential information on an invoice ____________(a) amount debited (b)details of goods purchased (c) amount credited (d) reasons for the debit (e) cover note 

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12. Terms of trade refers to _______________(a) agreement between two trading countries (b) condition attached to specific trade transactions (c) the relationship between exports and import price (d)the difference between the value of imports and export (e) all payments made to other countries and receipts from them 

13. Another name for shares, stocks and debentures traded in the stock exchange is _____________(a) collaterals (b) securities (c) wares (d) participation preference shares (e) cumulative preference shares 

14. Which of the following abbreviations indicates that the seller reserves the right to correct errors on the invoice_____________(a) E & OE (b) CIF (c) C.O.D (d)CWO (e)E&DE 

15. Which of the following terms of price quotation includes cost of transport to the buyer’s premise ___________ (a) F.O.B. (b)C&F (c)FOR (d) EX-SHIP (e)FAS 

16. Which of the following is true of a delivery note it _____________ (a) is sent in anticipation of delivery (b) does not show the price of the goods (b) gives additional information about the goods (c)show the pictures of goods being delivered (e) is a demand for payment 

17. A parcel of shoe value at #2,000 was invoiced at #200 only. Which of the following would be used by the seller to correct this error____________ (a)An invoice for #200 (b)A credit note for #1800 (c)A debit note for #1800 (d) a debit note for #2000 (e) A credit note for #2,200 

18. Okoni & co law chamber is an example of a _____________ (a) sole proprietorship (b) partnership (c) co- operative society (d) public limited company (e) chamber of Okoni 

19. Which of the following is a reduction in the catalogue price ___________ (a)rebate (b) cash discount (c) commission (d) trade discount (e) discount allowed 

20. A member of co – operative society who has one share will have ____________ voting right (a) one (b) two (c) three (d) four (e) five 

21. In the deed of partnership one of the following is not included _____________ (a) the nature of the business (b) the full names of the partners (c) the amount of profits to be generated (d) the manner in which the profit will be shared (e) the capital contributed by each partner 

22. Business owned by 2 – 20 people is called ___________ (a) sole trader (b) partnership (c) limited liability company (d) cooperative society (e) public enterprises 

23. The owner of a business enterprise is called a (an) __________ (a) production manager (b) supervisor (c)entrepreneur (d) coordinator (e) chairman 

24. A company that invites the general public to subscribe for shares is a ________ (a) sole trader (b) partnership (c) public limited liability company (d) private limited liability company (e) trade limited company 

25. All the following are types of cooperative society except____________ (a) credit and thrift cooperative societies (b) multipurpose cooperative societies (c) consumers’ cooperative societies (d) producers’ cooperative societies (e) producer and consumer cooperative societies. 

26. If a limited liability company wishes to finance expansion in operation by using its retained earnings, it will issue ______________ (a) debenture stock (b) preferred stock (c) divided warrants (d) bonus shares (e) rights issue 

27. A partnership formed for banking business is made up of ______________ (a) 2 – 10 members (b) 2-20 members (c) 2 – 30 members (d) 2 – 40 members (e) 2 – 50 members 

28. Which of the following statements is true of limited partnership ____________ (a) Every member is a limited partner (b) All members are general partners (c)All members are limited liability (d) There is at least one ordinary partner (e) limited and ordinary must be equal in number 

29. Which of the following is not required for the dissolution of a partnership _________ (a) Expiration of the partnership deed (b)Termination of the venture (c) one partner notifying the other of his intention to dissolve it (d) Mutual consent of the partners (e) order from the register of companies 

30. When a business is insolvent it may result in ______________ (a)incorporation (b)recuperation (c)liquidation (d)restoration (e)nationalization 

31. The word Ltd, written after the name of a company means that ___________ (a) the individual member’s capital is limited (b) the total the company’s capital is limited (c) members are liable to the extent of their holding (d) company’s location is limited (e) a shareholder has only one vote 

32. Which of the following is a public corporation? The ________________ (a) Nigeria Breweries Limited (b)Nigerian Ports Authority (c)Lagos Chamber of Commerce (d) Nigerian Bottling Company (e) Nigeria Merchant bank Ltd 

33. Which of the following is not required in a memorandum of Association? The __________(a)name of the company (b)location of the company (c) names of the board of director’s (d) limitation of member’s liability (e)objects of the company 

34. A private limited liability company differs from a public limited liability company because ____________(a) of its inability to offer shares to the public (b) it has a separate entity (c) it has many shareholders (d) it declares dividends to shareholders (e) it pays salaries to its managers 

35. Which of the following is a feature of co- operative society __________ (a) dividend is based on the number of shares sold (b) limited membership (c) owned and run by the state (d) democratic control and management (e)voting rights are not equal 

36. A memorandum of association is a document ___________(a) inviting the public to buy a company’s shares (b) governing the affairs of a partnership (c)showing the assets and liabilities of a company at a certain date (d)defining a company’s relationship with the public (e)regulating a company’s internal affairs 

37. The main source of capital for a limited liability company is _________ (a) bank overdraft (b) government subsidy (c)undistributed profits (d)bank lone (e)share subscription 

38. The Nigerian Television Authority is an example of a _______________     (a) private limited liability company (b)public limited liability company (c)multinational corporation (d) co – operative society (e) public corporation 

39. Details of a new share for which the public is being invited to subscribe are contained in the ____________ (a) A memorandum of Association (b) certificate of trading (c) certification of incorporation (d)prospectus (e) balance sheet 





SECTION B – THEORY 

1. Describe any four types of cooperative societies. 

Explain three advantages and three problems of cooperative societies. 



2. State any four sources of capital for a public limited company. 

b. Explain any four advantages and disadvantages respectively 

of converting a business into a public limited company. 



3. List and explain 3 requirements for trading. 

b. Write five tradable commodities. 



4. Define public corporation. 

b. State three advantages of public corporation. 



5. List five constraints facing commodity exchange. 

State three differences between commodity and stock. 



6. Explain the following : 

a. Letter of enquiry. 

b. catalogues and price list. 

c. quotation. 

d. order. 

e. invoice. 


FOR ANSWERS AND CLARIFICATIONS CONTACT THE EXAMINER

https://web.facebook.com/awoliyi.ibironke

MRS. IBIRONKE ANIMASHAUN, +234 809 458 4081

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