Senior secondary

school three (3)

commerce
SCHEME OF WORK FOR FIRST TERM
WEEK 1: BUSINESS LAW
WEEK 2: TYPES OF CONTRACT
WEEK 3: LAW OF AGENCY
WEEK 4: HIRE PURCHASE/DEFERRED PAYMENT
WEEK 5: CONTRACT OF SALES OF GOODS
WEEK 6: CONTRACT OF EMPLOYMENT
WEEK 7: GOVERNMENT REGULATION OF BUSINESSES
WEEK 8: STRUCTURE OF BUSINESS
WEEK 9: INTRODUCTION TO BUSINESS MANAGEMENT
WEEK 10: REVISION
WEEK 11: EXAMINATION
 WEEK 1&2

BUSINESS LAW/TYPES OF CONTRACT

Objectives: At the end of the lesson the 6. Corporate law: These laws deal with
students should be able to; business and stockholders

a. Identify the essential elements of a DEFINITION OF CONTRACT

Contract A contract is decided as an agreement between
b. Itemise the different types of contract two or more persons which is intended to be
c. State the reasons for the termination of enforced by law. It is also defined as an
a contract agreement which the law will enforce or
recognise as affecting the legal rights and
CONTENT duties of the parties to an agreement.
MEANING OF BUSINESS LAW All contracts involve some sort of agreement
Business Law are laws that regulate the but not all agreements are contract e.g social
or domestic agreement. The vital thing which
operations of business activities. Business is
turns an agreement into a contract is when the
affected by two branches of law- Private and parties intend to be legally bound to carry out
Public Laws. Private law which is often called their agreement e.g. sales, hire purchase
business law sets up the ground rules private
business parties dealing with each other must ESSENTIAL ELEMENTS OF A
follow. Public law on the other hand regulates CONTRACT
the business practises those in business must 1. Offer and Unqualified Acceptance: An
follow. offer is a proposal or an intention to enter a
valid contract. An acceptance is an expressed
These laws which deal with business activities assent in terms of offer. In a contract, a
are better classified as COMMERCIAL definite offer must be made by one party to the
LAWS. other and the offer must be unconditionally
accepted. Acceptance must be absolute and
BRANCHES OF COMMERCIAL LAWS once it is completed cannot be revoked.
Advertising is not an offer.
1. Contract or Commercial Law: These laws
deal solely on matters that involve contracts Characteristics of an Offer
among people
i. An offer must be made to a specific person,
2. Law of tort: These law deals with injuries a group of persons or the world at large
caused to a person by other individuals or
ii. An offer must be expressly made or implied
companies
by the conduct of the parties.
3. Property law: These law deals with the
iii. An offer must be communicated to the
ownership and use of property
offeree
4. Inheritance or succession law: These laws
iv. An offer must be definite, clear and final
deal with the rights of inheritance of property
Termination of an Offer
5. Family law: These govern the legal aspect
of the family such as the rules of adoption, An offer may be terminated if any of the
marriage, divorce and duly support following happens;
i. If the offer is withdrawn before acceptance 5. Legality of Objects of the Contract: The
i.e revocation contract must be taken for legal purpose. Any
contract in which the object is to commit
ii. If the offeree gives a counter offer or crime or civil wrong e.g contract that is
refuses to accept the offer promoting sexual immorality cannot be
enforced by the court. A contract must
iii. Lapse of offer: If the time stated in the conform with the rules and regulations/laws of
offer has lapsed the land and public policy.
iv. If the offer is accepted in ignorance
6. The Parties Must Have Contractual
Rules Guiding the Communication of Capacity: Those entering into a contract must
Acceptance have legal capacity to a contract. This means
that such parties must be of contractual age i.e
i. Acceptance is not effective if communicated 18 years and above, sane, must not be anybody
in ignorance of the offeree. declared bankrupt and must not be an illegal
alien.
ii. It must be communicated by the offeree or
by someone with his authority. 7. Certainty of Terms of Contract: The
terms of contract must be clearly stated. The
iii. It must be communicated to the offeror and parties can expressly state every term of their
response received by the offeree. contract i.e its warranties, conditions, implied
terms left to be deduced from the surrounding
iv. The offeree must positively accept the offer. circumstances.
2. Intention to Create Legal Relations: The 8. Possibility of Performance: The parties to
terms of agreement must state clearly that the a contract can enter into a contract once they
parties intended to create legally binding are sure they are sure they can do the job. It
contracts. Parties to a contract must always must be possible to carry out the contract
declare their intentions whether or not they
wish their agreement to be binding on them. 9. Formality of a Contract: This refers to the
form in which the law requires a contract to
3. There Must be Valuable Consideration: take. A valid contract must be rendered in the
All simple contract must be supported by form which the law requires it e.g contract that
valuable consideration, that is some elements require it to be in written copyrights are only
of exchange which is measurable in money or valid if they are in writing.
money’s worth. The benefit of one party must
be balanced by the benefit to the other. TYPES OF CONTRACT
Consideration is the price for which a promise
is bought. 1. VOIDABLE CONTRACT: This is a
contract which is valid unless and until the
Essentials of Consideration party entitled to void it actually does so. It is
an agreement that may be binding and
i. Consideration must move from the promise. enforceable but may be rejected by one of the
parties as a result of the circumstances
ii. It must not be past.
surrounding its execution or the capacity of the
iii. It must be definite other party. An example may be one in which
one of the parties signed under duress which
iv. It must be real, but may not be adequate. he will avoid liability to the contract.

4. Genuineness of Consent: The consent of 2. VALID CONTRACT: This is an

the parties involved in a contractual agreement agreement in which the parties are legally
must be genuine. Agreement of the parties to a bound to carry out their obligations. It is
contract must not be obtained under duress, binding and enforceable by law. It is an
undue influence, misrepresentation or mistake. agreement with all the essential requirements
that is binding and enforceable.
3. VOID CONTRACT: This is one which is Written contracts are contracts which are
destitute of legal effect; it is no contract at all. documented. The duties and obligations of the
A void agreement is without legal effect parties as well as terms of agreement are
because it is usually incapable of enforcement clearly stated so as to establish clear cut
e.g ultra vires contract, contract entered by a evidence in the case of default.
minor.
8. EXECUTED AND EXECUTORY
4. FORMAL AND INFORMAL CONTRACTS: Executed contracts are
CONTRACT: Formal contract can be divided contracts that have been completed. In this
into a) Contract under seal b) Contract of contract, the duties and obligations of the
record. A contract of record is leasehold, Bill parties have been carried out and nothing
of exchange, promissory notes, contract of remains to be done.
employment, cover seal is carried out by
affixing a seal on it. Executory contracts are contracts in the
process of being executed. The contract has
Informal contract are simple contracts which not been totally carried out, the parties have
must possess all the essential characteristics of obligations to carry out as some things still
a valid contract e.g contract of sales. need to be done before it is totally completed

5. BILATERAL OR UNILATERAL 9. UNENFORCEABLE AND ILLEGAL

CONTRACT: Here, the promise to do CONTRACT: This is one which although
something is given in exchange for another. valid cannot be enforced in the court because
Promise will flow in two directions and the of the absence of some written evidence or
parties involved must as a matter of necessity because the time stipulated bringing action has
carry out their promises for example when a elapsed.
school calls a supplier in March to deliver
books to the school in August. This is a Illegal contract is not only a void contract but
promise between two parties. any other contract related to it will also be
void, if the main contract was strictly illegal
Unilateral Contract is a contract where the
offer consists of a promise to pay money in 10. SEVERABLE CONTRACT: Where a
return for the performance of an act. Promise contract can be divided into several parts,
is not given in exchange for another e.g. Mr. payment for parts that have been completed
Kings promised to compensate whoever found can be claimed. Whether a contract is
his stolen furniture if it is found and returned. severable or not depends on the intention of
the parties.
6. EXPRESSED OR IMPLIED
CONTRACT: These are contracts in which 11. QUASI CONTRACT: This contract is
the parties have expressed their duties or said to exist in those exceptional
obligations and terms of agreement orally or circumstances where a court feels compelled
through written form e.g construction contract. to impose obligation upon one person even
though the person has no intention of making a
Implied contract are contracts entered into contract e.g doctor who rendered first aid
through the acts and conducts of the parties. treatment to an unconscious man and later sent
The terms of agreement are not shown by oral him a bill for his services. The court in this
or written declaration e.g a person getting her case, pretends there is a contract.
hair done at a hairdresser's shop or cloth made
at a tailor shop actually desires the services TERMINATION OF A CONTRACT
and pays for it.
A contract can be terminated or brought to an
7. ORAL AND WRITTEN CONTRACTS: end through the following means.
Oral contracts are contracts entered through
the use of verbal communication or spoken 1. By lapse of time: It can come to an end
words. They are not documented or written when the period fixed for the agreement comes
down. to an end.
2. Bankruptcy: A contract can be brought to an person making the highest bid i.e the
end when either of the parties is bankrupt. highest bidder
10. Guarantor: This is a third party who
3. Death or insanity of the party: The death or assures one party to a contract of the
insanity of a party can bring a contract to an other party’s compliance
end 11. Quantum merit: This means “as much
as you deserve”
4.By frustration: A contract can come to an 12. Conveyance: A conveyance is the
end when the subject matter basis of the document which transfers the title of
contract has been destroyed or frustrated by a unregistered land.
natural disaster e.g. earthquake, flood etc.
EXERCISES
5. Illegality of object: if the subject matter is
illegal e.g. prostitution, stealing, etc. such 1. The elements of a Contract are offer (a)
contract can be terminated acceptance and performance (b) legality and
formality (c)consideration and performance
6. By breach: A contract can come to an end (d)acceptance and consideration (WAEC 2019,
when one of the party failed to perform his Q35)
own duty in the contract.
2. A new offer of contract that terminates the
7. By performance; The general rule is that original offer is (a) void contract (b)a counter
when both parties have performed their offer (c)an invalid offer (d)quasi offer (WAEC
obligations or duties the contract can come to 2019, Q40)
an end
3. A contract terminated by occurrence of an
8. By Agreement of the parties: A contract can event which makes performance impossible is
come to an end when both parties agree to discharged by (a)breach (b)agreement
release each other from contractual obligations. (c)frustration (d)performance (WAEC 2018,
It can be unilateral or bilateral Q28)
TERMINOLOGIES USED IN 4. An agreement between two parties which
CONTRACT can be enforced is (a)a warranty (b)an offer
1. Tender: A tender is an estimate (c)consideration (d)a contract (WAEC 2017,
submitted in response to a prior Q24)
request. It does not amount to an offer. 5. Mr. Ojo paid Noak the sum of #3,000 for a
2. Party: This refers to each person or piece of land without signing a deed of sale.
group of persons in a contract. The element of contract which is lacking in
3. Minor: This is an infant who is under their transaction is (a)valuable consideration
18 years of age. (b)formality (c)offer and acceptance
4. Damages: This is compensation (d)capacity (WAEC 2017, Q24)
awarded by a court of law to a
plaintiff who has suffered loss as a 6. In a law of contract a counter offer operates
result of an act of the defendant. as (a)an acceptance (b)consensus ad idem (c)a
5. Promisor: This is a person who makes rejection (d) a contract (WAEC 2016, Q8)
a promise in a contract
6. Promisee: This is the person to whom 7. Who among the following has no capacity
the promise is made to enter into a valid contract (a)school
7. Offeror: This is the person that makes principals (b)infants (c)agents (d)religious
an offer ministers (WAEC 2012, Q38)
8. Offeree: This is the person to whom
offer is made and he accepts the offer 8. A false statement made by one party with an
9. Auction: In auction sales, bids are intention of inducing the other party to enter
made by prospective buyers and the into a contract with him is known as
commodity would be sold to the (a)misrepresentation (b)legally capacity
(c)consensus ad idem (d)consideration (d)promise and capacity (WAEC 2011, Q9;
(WAEC 2011, Q48) 1995, Q79)

9. Mr. Orji was contracted to sell 10 color TV 18. Musa entered into a contract to supply two
sets to Mr. Ede, unknown to both of them the cows to Aro. Before the agreed date of supply
TV sets were stolen in transit. The contract and without the knowledge of the two parties,
may be terminated on the grounds of (a) thieves stole the cows. This is an example of
breach of contract (b)performance termination of contract by A. default B. breach
(c)bankruptcy (d)frustration (WAEC 1995, C. frustration D. performance (WAEC 2004,
Q63) Q39)

10. Master Ojo is 14 years old. He entered into 19. In a law of contract what is given in
a contract with Ade for the supply of 20 T exchange for the promise to perform is (a)offer
shirts. Ojo received the T shirt but has refused (b)acceptance (c)consideration (d)warranty
to pay. Ade's lawyer said that the contract is (WAEC 2003, Q48)
void because it lacked one of the elements of a
valid contract which is (a) offer and 20. A void contract is one that (a)is
acceptance (b)consideration (c)intention to enforceable (b)has no maturity (c)has no legal
create legal relations (d)capacity (WAEC 1995, effect (d)is discharged (WAEC 2003, Q46)
Q75)
21. In a contract, offer is described as a
11. Musa places his bicycle for sale at #800.00 counter offer if (a)a new clause is introduced
and Dada has agreed to pay the amount. In this (b)it is not understood (c)it is not addressed to
transaction, Musa is the (a)offerer (b)offeree a particular person (d)it leaves no room for
(c)buyer (d)Guarantor (WAEC 1996, Q50) renegotiation (WAEC 2002, Q47)

12. Ola presented his motorcycle for sale to 22. A counter offer in a contract is regarded as
Musa at a cost of #8,000. Musa agreed and (a)an acceptance (b)an invitation to treat (c)a
bought the vehicle at the same amount. The rejection (d)a consideration (WAEC 2000,
#8,000 for the sale is (a)an offer (b)an Q41; 1989 Q12)
acceptance (c)a consideration (d)a warranty
23. Which of the following is a basic
13. If Baba is forced to agree to the terms of a requirement for a valid contract
contract at gun point, the contract is entered (a)representation (b)consideration (c)interest
into (a)under duress (b)through frustration (d)performance (WAEC 2000, Q46)
(c)through misrepresentation (d)by mistake
(WAEC 2002, Q44) 24. Which of the following has no legal
capacity to a contract A. Public Limited
14. The reward received by a party in a Company B. Public Corporation C. Co-
contract agreement is known as operative Society D. A Minor E. A Limited
(a)consideration (b)acceptance (c)offer Partnership (WAEC 1998, Q84)
(d)warranty (WAEC 2011, Q2)
25. When an acceptance to an offer is
15. Which of the following is not a method of conditional, the offer becomes (a)accepted
discharging a contract (a) performance (b)a counter offer (c)valid (d)void (e)frustrated
(b)breach (c)consideration (d)frustration (WAEC 1997, Q47)
(WAEC 2002, Q46)
Use the following information to answer
16. An agreement that is enforceable by law is questions 26 and 27(WAEC 1997, Q45&46)
(a)contract (b)an offer (c)an acceptance (d)a
consideration (WAEC 2016, Q30; 1997, Q70) Ola presented his motor-cycle for sale to Musa
at a cost of #8,000. Musa agreed and bought
17. Which of the following are elements of a the vehicle at the same amount.
valid contract (a)discharge and performance
(b)offer and acceptance (c)age and maturity 26. The #8,000 for the sale is A. an offer B. an
acceptance C. a consideration D. a warranty E.
a security
27. Ola is the A. offeror B. offeree C. acceptor Use the following information to answer
D. guarantor E. surety questions 36 and 37 (JAMB 2001, Q40&41)

28. Which of the following is not an essential Musa rented a room to Adamu for N1,500 and
element of a valid contract (a)offer N1,000 part-payment was made. Adamu
(b)acceptance (c)legality (d)consideration brought Audu and Jacob his friends to stay in
(e)compensation (WAEC 1994, Q80; 1996 the room. The two friends later paid balance of
Q60) N500 to Musa.

29. An agreement between two parties which 36. Who are the parties to the contract of
can be enforced is called (a)an agency (b)a renting the room? A. Musa and Jacob B. Musa
contract (c)a consideration (d)a warranty (e)an and Audu C. Adamu and Musa D. Audu and
offer (WAEC 1994, Q4) Jacob (JAMB 2001)

30. Which of the following is not an essential 37. Who is the offeree in this contract? A.
element of a Contract? (a) offer and Musa B. Audu C. Adamu D. Jacob
acceptance (b)all contracts must be in writing
(c)intention to create legal relation (d)legality 38. Okeze contracted to sell TV sets to Ojo.
of an object (e)consideration (WAEC 1990, Unknown to them, the sets were stolen in
Q31; 1993, Q90) transit. This contract may be terminated on the
ground of A. bankruptcy B. frustration C.
31. Auctions and tenders become binding fraudulence D. breach of contract (JAMB
when they are (a)accepted (b)offered 2002)
(c)received (d)advertised (e)communicated
(WAEC 1990, Q24) 39. An announcement of a person's willingness
to enter into a contract is referred to as? A. a
32. Mr Amusa says to Mr Bello 'I will sell you proxy B. an offer C. a consideration D. an
this hat for N30'. And Mr Bello replied I will acceptance (JAMB 2007)
pay N29. The contract is A. an offer and
acceptance B. an implied contract C. a 40. An opportunity to reject a binding contract
complete simple contract D. an offer but no at will by a third party is said to be a? A. valid
acceptance (JAMB 1994) contract B. quasi contract C. voidable contract
D. conditional contract (JAMB 2010)
33. Sabo and Gambo entered into a contract
for the sale of two baskets of tomatoes 41. To make a simple contract valid, the
belonging to Gambo. Before the date the date intention must be? A. legal and written B.
of delivery and without any default by Gambo, legal and binding C. legal and attractive D.
the tomatoes were stolen. This is an example legal and harmonious (JAMB 2011)
of termination of contract by A. breach B.
performance C. fault D. frustration (JAMB 42. A contract that is acknowledged before the
1998) law court is referred to as A. informal contract
B. formal contract C. contract of records D.
34. A minor is not permitted to enter into a specialty contract (JAMB 2013)
valid contract because he A. Cannot pay the
consideration B. Is too young to interpret the 43. A motor dealer who agreed to sell a car to
law C. Is young in the eye of the law D. May Mr X but delivered it to Mr Y on the delivery
not be able to write the contract (JAMB 1998) date agreed with Mr X. He has discharged the
contract by A. performance B. frustration C.
35. The basic elements of a valid contract are an agreement D. breach (JAMB 2013)
A. offer, acceptance, consideration and
witness B. offer, intention, acceptance and 44. A contract can be terminated through A.
legality C. offer, acceptance, intention, physical combat B. family intervention C.
capacity and legality D. offer, acceptance, frustration D. consultation (JAMB 2013)
capacity, legality and consideration 45. Mr. Taiwo entered into a contract to let a
car to Mr Bunmi for his wedding for two days.
However, the car had an accident before the
first day. Mr Bunmi attempted to claim 46. A contract which is devoid of legal effect
damages but failed. This implies the contract is A. void contract B. unenforceable contract C.
was terminated by A. bankruptcy B. voidable contract D. valid contract (JAMB
frustration C. breach D. lapse of time (JAMB 2014)
2014)
THEORY

1. What is a contract?
__________________________________________________________________________________
______________________________________________________

2. Explain six reasons for a contract to be terminated (WAEC 1999, Q10, 2012 Q7)

i.________________________________________________________________________________
_______________________________________________________

ii.________________________________________________________________________________
_______________________________________________________

iii._______________________________________________________________________________
_______________________________________________________

iv._______________________________________________________________________________
_______________________________________________________

v.________________________________________________________________________________
_______________________________________________________

vi._______________________________________________________________________________
_______________________________________________________

3. State the essential elements of a contract

i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.

4. Briefly discuss any five of them

i.________________________________________________________________________________
______________________________________________________________________

ii.________________________________________________________________________________
_____________________________________________________________________

iii._______________________________________________________________________________
_____________________________________________________________________

iv._______________________________________________________________________________
______________________________________________________________________
v.________________________________________________________________________________
_____________________________________________________________________

5. Discuss extensively any five types of contact

i.________________________________________________________________________________
__________________________________________________________________________________
________________________________________________________________________________

ii.________________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________________________________

iii._______________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________________________________

iv._______________________________________________________________________________
__________________________________________________________________________________
________________________________________________________________________________

v.________________________________________________________________________________
__________________________________________________________________________________
________________________________________________________________________________

6. Business relationship are deeply rooted in the law of contract. What is a contract? b. State the
essential elements of a contract (c)Briefly discuss any three of them
 WEEK 3

LAW OF AGENCY

Objectives: At the end of the lesson, the third party. He receives a commission
students should be able to; called brokerage.
6. Shipping and forwarding agents: These are
a. Distinguish between the rights and agents that act on behalf of the principal to
duties of the principal and agent clear and receive goods from the seaports
b. Identify the different ways of or airports. They arrange for the delivery
appointment of agents of the goods to a particular place through
c. Itemise the reasons for the termination the air, sea or land.
of an agency 7. Advertising agents: This is an agent who
help in assisting a firm in planning and
CONTENT executing their advertising programmes.
An agency can be defined as a legal 8. Universal agent: This is an agent who is
relationship that exists between two parties, not restricted to enter into a contract on
when one called the agent is employed by behalf of the principal. He may even act or
another called the principal to bring the perform as the principal. This kind of
principal into a legal relationship with the third agent is appointed by a deed known as
party. power of attorney.
9. Del Credere Agent: This is an agent who
An agent is a person who is given the authority undertakes to indemnify the principal
by the principal to enter into a contract on hid against any loss arising from failures of
behalf. The agent has the power to make a the people to pay for goods sold. He
binding contract between his principal and a receives in return an extra remuneration
third party without himself becoming a party which is higher than all other agents. The
the contract. additional commission is called del
credere commission
TYPES OF AGENTS 10. Auctioneers: These are agents authorized
or empowered by the law to sell goods for
1. Special Agent: This is agent appointed for their principal at a public auction to their
a particular purpose, normally not part of highest bidder.
his normal business activities and is
therefore given limited powers. APPOINTMENT OF AGENT
2. Commission Agent: This a merchant who
buys and sell goods based on commission. Agents can be appointed in the following ways
This agent exercises physical control over
and negotiates the sale of the goods 1. By Ratification: This arises when the
handled by him principal ratifies or approves the action of a
3. General Agent: This is an agent who has person having no authority to act as his agent.
the authority to act in all matters of a 2. By Necessity: Agency by necessity arises
particular business, he can perform any when an emergency situation happens when
duties within the scope of a particular somebody who is in possession of another
business entrusted into his hands. person’s property has to do something to
4. Factor: This is an agent who is employed preserve the property.
to sell goods delivered to him by the
principal for a commission. He has 3. By Estoppel: This is a situation where
possession of the goods and can sell in his somebody by conduct or words allows another
own name. party to believe that somebody is acting as his
5. Broker: A broker is an agent who brings authorized agent even when no agency was
the principal into a contractual relationship intended.
to buy or sell goods or services with the
third party, he links the principal with the 4. Expressly: This arises when an agent is
appointed verbally or in writing by the
principal. The agent can now enter into 5. Recovery of possession from the buyer: An
contract on behalf of the principal. unpaid seller has the right recover the goods
already delivered to the buyer.
5. By implication: An agent can be appointed
impliedly where the principal, without PRINCIPAL
expressly conferring authority on him, places
him in a situation in which it is understood by A principal is someone who employs another
them that he can act on behalf of the principal person called an agent to act on his behalf. A
principal contracting through an agent must
DUTIES OF AN AGENT have contractual capacity

1. An agent must follow the terms of DUTIES OF A PRINCIPAL

agreement of the agency
2. He must obey or carry out all lawful 1. The principal must pay the agent the
instructions by the principal commission or agreed renumeration
3. He has to exercise reasonable care,
skill and diligence in performing his 2. He must not interfere with the efforts of the
duties agent
4. He must act in good faith and honesty 3. He must provide all necessary facilities to
by not engaging in any competing the agent for proper execution of the contract
business to the detriment of the
principal. 4. He must indemnify the agent for any
5. He must not take any secret gain expenses or losses incurred by the agent
beyond the authorized commission
and any other remuneration 5. He must follow strictly the terms of the
6. He must render an account i.e contract of the agency.
stewardship to the principal whenever
required RIGHTS OF THE PRINCIPAL
7. He must not delegate his duties to
1. The principal can sue the third party for
another party
damages
8. He must not misuse the confidential
information in respect to the affairs of 2. He can sue the agent for default
the principal
9. He must keep proper account of all 3. He can recover any secret profit from the
transactions connected to the agency agent
RIGHTS OF AN AGENT 4. He can summarily dismiss the agent
1. Right of resale: An agent has the right to 5. He can refuse to pay the agent his agreed
resell the goods especially perishable goods commission
when he has notified the defaulting buyer who
despite the notice fail to pay. TERMINATION OF AGENCY

2. Right of stoppage in transit: The seller has 1. By Agreement to terminate

the right to stop the goods going to the buyer
in order to regain and retain possession of the 2. Death of the principal or the agent
goods until he is paid.
3. By breach
3. Right to retain goods: The seller has a right
4. By completion of the agency
to retain the possession of the goods if not paid
for. 5. By operation of law: The law of a country
can render a trade or service illegal. In such
4. Issue of ultimatum: Unpaid seller has the
situation, any agency agreement with respect
rights to give ultimatum to the buyer
to such trade is terminated.
compelling him to pay.
6. Insanity of either of the party
7. By performance 10. Which of the following is not the duty of
an agent to the principal (a)acting on good
8. Bankruptcy faith (b)Rendering accurate account
(c)disclosing all profits made (d)making secret
EXERCISE profit (WAEC 2006, Q29)
1. Who is liable for contracts entered into by 11. An individual employed to act on behalf of
an agent on behalf of the principal? The another within a specified guideline is
(a)agent (b)principal (c) agent and the (a)jobber (b)an agent (c)a broker (d)a
principal (d)third party (WAEC 1991, Q94; distributor (WAEC 2018, Q29)
1993, Q65)
12. Who among the following is not an agent
2. A del credre agent is distinguished from (a)broker (b)factor (c)manufacturer’s
other agent in that he (a)is a principal in a representative (d)auctioneer
Yalding firm (b)works for his principal on
commission (c)is a middleman in a transaction 13. An agent with authority to bind his
involving two or more people (d)usually principal in everything provided he acts
guarantees payment in any transaction (WAEC lawfully is called (a) a del credre agent (b)a
1992, Q24) special agent (c)a universal agent (d)a factor
(WAEC 2019, Q38)
3. Agents who link buyers with sellers receive
(a)factorage (b)brokerage (c)bonus (d)interest 14. An agent who takes possession of goods
(WAEC 1994, Q44) and sells in his own name but does not
guarantee payment is known as (a)del credre
4. Del credre commission is an (a) allowance agent (b)general agent (c)broker (d)factor
paid to a supplier (b)extra allowance for (WAEC 1994, Q87)
guaranteeing recovery of debts (c) allowance
paid to a commission Agent (d)allowance paid 15. An agent who guarantees payment for
by the agent (WAEC 1995, Q15) goods sold is a/an (a)factor (b)del credre agent
(c)broker (d)partner (e)auctioneer (WAEC
5. A mercantile agent having title to goods in 1996, Q98; 2000 Q44)
his possession is known as (a)factor (b)broker
(c)jobber (d)stag (WAEC 1998, Q48) 16. An agent who takes possession of goods
and sells in his own name is known as
6. A transporter who had to sell some (a)broker (b)del credre agent (c)auctioneers
perishable goods without the authority of the (d)factor (WAEC 2001, Q28)
owner becomes an agent by (a)Estoppel
(b)necessity (c)Ratification (d)conduct 17. The extra commission for pledging full
(WAEC 1998, Q49) settlement of the purchase of goods is given to
the (a)credre agent (b)factor (c)broker
7. Which of the following have lien on goods (d)jobber (WAEC 2001, Q30)
in their possession until their commission is
paid is (a)brokers (b)factors (c)Auctioneers 18. An agent who earns extra commission for
(d)wholesale merchants (WAEC 1999, Q44) guaranteeing debts is a (a)factor (b)broker
(c)commission Agent (d)del credre agent
8. The duty of an agent of necessity to a (WAEC 2013, Q6)
principal is based on (a)trust (b)ability
(c)negotiation (d)mutual agreement (WAEC 19. Commercial agents who are authorised to
2002, Q48) keep goods until they are sold are (a)factor
9. Which of the following is a means by which (b)distributors (c)brokers (d)Auctioneers
a contract of agency could be terminated (WAEC 2018, Q33)
(a)mutual agreement (b)lack of consideration
(c)failure to insure the contract (d)payment of
commission (WAEC 2005, Q39)
THEORY

1. Explain five conditions under which an agency can be terminated (WAEC 1995, Q6b)

i.________________________________________________________________________________
_______________________________________________________

ii.________________________________________________________________________________
_______________________________________________________

iii._______________________________________________________________________________
_______________________________________________________

iv._______________________________________________________________________________
_______________________________________________________

v.________________________________________________________________________________
_______________________________________________________

2. Distinguish between the following (WAEC 2016, Q7a; 1989 Q6)

a. broker and factor

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

b. factors and del credere agent

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

c. commission agent and a del credre agent

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

3. Define agency (WAEC 1998, Q4)

__________________________________________________________________________________
______________________________________________________

4. Explain the features of the following agents (i)factor (ii)broker (iii)del credre agent (iv)auctioneer

i. Factor
__________________________________________________________________________________
_____________________________________________________

ii. broker
__________________________________________________________________________________
_____________________________________________________

iii. Del credre agent

__________________________________________________________________________________
____________________________________________________

iv. Auctioneer agent

__________________________________________________________________________________
____________________________________________________
5. Give six duties of an agent to the principal (WAEC 2001, Q7b)

i. _________________________________________________________________________

ii. _________________________________________________________________________

iii. _________________________________________________________________________

iv. _________________________________________________________________________

v. _________________________________________________________________________

vi. _________________________________________________________________________

6. State four duties of an agent to the principal (WAEC 2007, Q4b)

i. _________________________________________________________________________

ii. _________________________________________________________________________

iii. _________________________________________________________________________

iv. _________________________________________________________________________

7. State three rights of an agent

i. _________________________________________________________________________

ii. _________________________________________________________________________

iii. _________________________________________________________________________

8. State three rights of the principal

i. _________________________________________________________________________

ii. _________________________________________________________________________

iii. _________________________________________________________________________

9. Explain the following (WAEC 2011, Q6)

a. Auctioneer
__________________________________________________________________________________
____________________________________________________

b. Factor
__________________________________________________________________________________
___________________________________________________

c. Broker
__________________________________________________________________________________
__________________________________________________

10. State two distinguishing features between each of the following (WAEC 2013, Q7)

a. Factor and a broker

i. ___________________________________________________________________________
_________________________________________________________
 ii. ___________________________________________________________________________
_________________________________________________________

b. Commission agent and a del agent

i. ___________________________________________________________________________
_________________________________________________________

ii. ___________________________________________________________________________
_________________________________________________________
 WEEK 4

HIRE PURCHASE/DEFERRED PAYMENT

Objectives: At the end of the lesson, the 2. Customers may fail to pay their debts which
students should be able to; may lead to bad debts

a. Identify the advantages of hire 3. It may lead to court case thereby disturbing
purchase to both the buyer and the the business of the seller
seller
b. Itemise the disadvantages of hire 4. Goods repossessed may be difficult to sell
purchase to both the buyer and the
seller 5. There is possibility that the buyer may run
c. Differentiate between deferred away with the goods
payment and hire purchase 6. Attempts to repossess the goods may lead to
CONTENT squabbles

Meaning of Hire Purchase ADVANTAGES OF HIRE PURCHASE

TO THE BUYER
Hire purchase is a system whereby the buyer
or hirer has possession and the use of goods 1. Buyer enjoys the use of goods even when he
while the owner retains ownership of goods has not fully paid for them
until the final instalment has been made. It is a 2. The seller renders more after sale service to
system of installment payments which is used goods purchases under hire purchase
for purchasing durable goods.
3. It encourages prudent spending on the part
It is also a system of installment payment of the buyer inorder to meet up with the
whereby the seller allows the buyer to take payment of final instalment
possession of the product on a hire basis after
making initial deposit. 4. It leads to improvement of standard of
living of the people because it makes more
ADVANTAGES OF HIRE PURCHASE goods available to them
TO THE SELLER
5. It forces buyers to save money in order to
1. Hire purchase facilitates the promotion of own durable goods
durable goods
6. Buyer has access to credit which he could
2. The profit will increase as a result of otherwise not have obtained from the banks.
increase in price
DISADVANTAGES OF HIRE PURCHASE
3. Hire purchase increases the rate of turnover TO THE BUYER
4. Increase in demand for goods will lead to 1. Customers are tempted to over buy
mass production
2. They will pay more than they would under
5. The seller can repossess the goods in order cash transactions
to prevent bad debts
3. The customer pay high rate of interest
6. The seller retains ownership of goods until
full payment is made 4. He may not be able to insist on high quality
goods
DISADVANTAGES OF HIRE PURCHASE
TO THE SELLER 5. The buyer may not be able to negotiate for a
buyer contract
1. A lot of capital can be tied down
EFFECTS OF HIRE PURCHASE ON A 6. It also increase in bad debts as a result of
BUYER debtors running away

1. He is able to beat any future increase in DEFERRED PAYMENT

price by buying now in hire purchase
Deferred Payment is a system whereby
2. Buyer will find it convenient paying by ownership and possession are transferred
instalments immediately to the buyer from the seller after
paying an initial deposit. Payment for the
3. He enjoys increaes standard of living balance will be paid later.
4. He can return the goods after paying 50% of In Deferred Payment, the buyer takes
the price possession and ownership of the product on
paying first instalment and defer or put off the
5. He could loose through repossession in the payment of other instalments to later periods
event of default
SIMILARITIES BETWEEN HIRE
6. Buyer pays more for goods PURCHASE AND DEFERRED
EFFECTS OF HIRE PURCHASE ON A PAYMENT
SELLER 1. Both system of credit ensure that the buyer
1. There will be increase in sales takes possession of the goods

2. Seller gets more profit selling on credit as 2. Both accommodate instalmental payments
hire purchase price is more than the cash price and credit facilities

3. It encourages faster sales of durable 3. The hirer or buyer can use and enjoy the
expensive goods goods

4. Seller can repossess his goods 4. Durable goods are involved

5. He can only repossess the goods through the 5. Initial deposit is required in both system
courts after 2/3 of the price has been paid
DIFFERENCES BETWEEN HIRE PURCHASE AND DEFERRED PAYMENT

HIRE PURCHASE DEFERRED PAYMENT

1. Goods are on hire Goods are sold

2. Seller retains ownership of goods until final Buyer retains ownership after paying initial
instalment is paid deposit

3. The price charged is hirer. Price charged is lower

4. Hire purchase favors the seller Deferred Payment favours the buyer

5. Durable goods are involved Less durable goods are sold

6. On default, seller cam repossess the goods Seller cannot repossess the goods

EXERCISES

1. Which of the following is a disadvantage of the seller (d)increased sales by the sellers unit
hire purchase to the consumer (a)it increases cost (WAEC 1989, Q49)
turnover (b)temptation to buy more than one
can pay for (c)it demands more capital from 2. A sales agreement whereby the buyer takes
possession but not title to the goods is called
(a)mortgage (b)auction sale (c)deferred 11. An agreement by which a buyer pays
payments (d)hire purchase (e)warranty instalmentally but does not own the goods
(WAEC 1992, Q37) until the final settlement is made is (a)hire
purchase (b)deferred payment (c)conditional
3. An installmental buying system where sale (d)features trading (WAEC 2003, Q23)
ownership immediately transfers to the buyer
is known as (a)deferred payments (b)hire 12. Which of the following is not suitable for
purchase (c)spot trading (d)cash sales hire purchase (a)textiles (b)furniture
(e)prompt payment (WAEC 1993, Q66) (c)refrigerator (d)printing machine (WAEC
2005, Q24)
4. In a hire purchase contract, the customer
becomes the legal owner of the goods by 13. Yahaya bought a piece of furniture on a
(a)taking possession of the goods (b)paying credit sale agreement from Ahmed and resold
the first instalment (c)paying the last it to Ali before all installments were made.
instalments (d)paying monthly hire charges The court upheld that Ahmed could not
(e)paying half the purchase price (WAEC recover possession of the items from Ali. The
1995, Q64) reason for the judgement was because A.
ownership was transferred on completion of
5. In which of the following do the goods installment B. ownership was transferred on
become the property of the buyer on the first delivery C. Yahaya could not pass title to a
instalment (a) hire purchase (b) deferred third party D. Ali was still indebted to Yahaya
payment (c) leasehold (d)cash with order (JAMB 2012)
(e)forward trading (WAEC 1997, Q20)
14. In hire purchase agreement, the buyer is
6. An agreement to deliver goods in the future the (a)agent (b)hirer (c)lessee (d)lessor
after the payment of the final instalment is (WAEC 2017, Q22)
known as (a)credit sales (b)hire purchase
(c)conditional sale (d)trade in sale (e)leasing 15. Goods becomes the property of the buyer
(WAEC 1998, Q14) on the transfer of liability and possession
without immediate payment under the (a)hire
7. Which of the following is not a feature of purchase agreement (b)credit sale agreement
hire purchase (a)customers pays final deposit (c)auction sale agreement (d)conditional sales
(b)customer pays purchase price plus interest agreement (WAEC 2016, Q40)
(c)payment is by instalment (d)ownership of
goods passes to the customer on payment of 16. A system of sales where goods are sold to
deposit (e)generally suitable for sale of the highest bidder is known as (a)credit sales
durable goods (WAEC 1998, Q17) (b)hire purchase (c)clearance sales (d)auction
8. A hire purchase transaction becomes a sale sale (WAEC 2016, Q10)
when (a)hirer accepts the hire purchase terms
(b)finance company agrees to pay (c)hirer 17. Which of the following will be suitable for
takes possession of goods (d)hirer pays full hire purchase sale (a)shares (b)refrigerator
cost of carriage (WAEC 1999, Q42) (c)shoes (d)textiles (WAEC 2013, Q5)

9. A contract of sale where ownership passes 18. An advantage of hire purchase to the
to the buyer on the payment of the first consumer is the? A. economies of scale in
instalment is known as (a)hire purchase production B. possession of goods before
(b)cash with order (c)deferred payment
payment C. increase in turnover and profit D.
(d)cash on delivery (WAEC 1999, Q48)
low interest rate chargeable (JAMB 2002)
10. A contract of sale where ownership passes
to the buyer on the payment of the first 19. Hire purchase is beneficial to the seller
instalment is known as (a)hire purchase because? A. it enhances his living standard B.
(b)lease (c)cash on delivery (d)credit sale it increases his turnover C. people pay
(WAEC 2000, Q43)
instalmentally D. of the patronage he enjoys (JAMB 2006; 2014)
THEORY

1. Give three similarities and three differences between Hire Purchase and Deferred payments
(WAEC 1996, Q7a)

Similarities

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

Differences

i. ___________________________________________________________________________
_________________________________________________________

ii. ___________________________________________________________________________
__________________________________________________________

iii. ___________________________________________________________________________
________________________________________________________

2. Differentiate between Hire Purchase and credit sale (WAEC 2001, Q2a, 2007 Q4e)

i. ___________________________________________________________________________
_________________________________________________________

ii. ___________________________________________________________________________
_________________________________________________________

iii. ___________________________________________________________________________
_________________________________________________________

iv. ___________________________________________________________________________
__________________________________________________________

v. ___________________________________________________________________________
__________________________________________________________

3. Give four advantages of Hire Purchase each to the following (WAEC 2001, Q2b)

a. A Seller

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________
b. A buyer

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

4. State five effects of Hire Purchase on each of the following

a. Buyer

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

v. __________________________________________________________________________

b. Seller

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

v. ___________________________________________________________________________

5. What is hire purchase? (WAEC 2008, Q7a)

__________________________________________________________________________________
__________________________________________________________________________________

b. Give two advantages and two disadvantages each of hire purchase to the (WAEC 2008, Q7b)

a. Buyer

Advantages

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

Disadvantages

i. ___________________________________________________________________________

ii. __________________________________________________________________________
b. The Seller

Advantages

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

Disadvantages

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

6. Mr. Sylva is considering hire purchase as a source of finance for his business operations. State four
advantages and three disadvantages of this source of finance (WAEC 2019)

Advantages

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

Disadvantages

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________
 WEEK 5

CONTRACT OF SALES OF GOODS

Objectives: At the end of the lesson, the PROVISION OF SALES OF GOODS ACT
students should be able to; 1893

a. Describe the meaning of sales of goods 1. Right to Sale: The seller has a right to pass a
b. List and explain the terms of contract of good title. It is an implied condition that he
sale has a right to sell the goods.
c. Describe terminologies associated with
contract of sales 2. Mercantile Quality Goods: The goods sold
are to be of mercantile quality.
CONTENT
3. Goods Must Correspond with Description:
Meaning of Contract of Sales Where goods are sold by description, there is
an implied condition that the goods will
A contract of sale is a legal contract. It is a correspond with the description.
contract for the exchange of goods, services or
property that are the subject of exchange from 4. Enjoyment of Quiet Possession by the
seller (or vendor) to buyer (or purchaser) for Buyer: The buyer shall enjoy quiet possession
an agreed upon value in money (or money of the goods and the goods should be free from
equivalent) paid or the promise to pay same. any encumbrance not known to the buyer.

TERMS OF CONTRACT OF SALES 5. Bulk Must Correspond with Samples:

Where goods are sold by sample, the bulk
1. The Price: The provisions of the contract must correspond with sample and buyer must
states that the price in a contract may be have opportunity of comparing bulk with
determined by the contract or left to be fixed sample.
in a manner thereby agreed.
6. Fitness for Purpose: The goods supplied are
2. The Subject Matter: The subject matter of reasonably fit for the purpose for which it was
the contract is the ownership of goods bought. meant.
The seller can sue for price the moment the
goods passes to the buyer. 7. Delivery and Acceptance: It is the duty of
the seller to deliver the goods and of the buyer
3. Condition: This is a major term which goes to accept and pay in accordance with the terms
to the root of the contract, a breach of which of agreement.
normally entitles the innocent party to treat the
contract as having come to an end. It can be Conditions that Constitute Acceptance
defined as a fundamental term of a contract. If
the seller, for example, breaches condition in a A buyer is deemed to have accepted the goods
contract of sale, it may give the buyer the right under the following conditions:
to reject the goods completely. a 1. When he signifies his approval or
4. Warranties: This is a minor term which is acceptance to the seller.
subsidiary to the main purpose of the contract, 2. When he does any other act adopting the
the breach of which only entitles the innocent transaction.
party to damages, but he cannot regard the
contract as having come to an end. 3. If he retains the goods without giving notice
of rejection within a reasonable time.
4. When he did something inconsistent with owner (bailor) to some other person (bailee) to
the title of the seller. be employed for a specific purpose.

Remedies for the Seller Gifts: A gift is a transfer of property without

any consideration attached. It is not binding
The act confers certain rights on the unpaid but executory.
seller, namely:
Contract of Skill and Labour: If the main
1. He has lien on the goods for the price when purpose is not for the sale of goods but
he is in possession of them. provision of labour, the contract of sales act
does not apply.
2. He has the right to resale as limited by the
Act. Agreement to Sell: This is executors with
ownership being transferred at a later date.
3. If the buyer becomes insolvent, he has a
right to stop the goods in transit after he has EXERCISES
parted with possession.
1. Goods that are manufactured or acquired by
4. The seller can maintain an action for the the seller after the contract of sale are? A.
price. specialty goods B. future goods C. specific
5. He can sue for damages for non-acceptance goods D. general goods (JAMB 2003)
of the goods. 2. In the contract of sale of goods, “let the
buyer beware" is signified by? A. del credere
Remedies for the Buyer
B. uberrima fidei C. caveat emptor D. res ipsa
1. The buyer can sue for damages for non- loquitor E. caveat vendetta (WAEC 1989, Q13)
delivery of the goods.
3. An agreement whereby the seller transfers
2. The buyer can sue for specific performance. the title of goods at a price is called (a)contract
of sale (b)hire purchase agreement (c)an
3. He may maintain an action for conversion. agency agreement (d)a contract of carriage of
goods (e)haggling (WAEC 1995, Q95)
4. When there is a breach of warranty
(subsidiary terms), the buyer can set up a 4. A contract for the sale of goods involved the?
claim against the seller (supplier). A. producer, seller and the buyer of goods B.
offering of goods to customers C. transferring
TERMINOLOGIES ASSOCIATED WITH
of the title to goods for money D. exchange of
CONTRACT OF SALE
goods (JAMB 2002)
Lien: A lien is the right to retain possession of
5. The most important attributes in a sale of
goods (but not to sell them) until the contract
goods contract are? A. offer and consideration
price has been paid.
B. price and goods C. offer and acceptance D.
Stoppage in Transit: This refers to the right demand and supply
to stop the goods and retake possession.
6. The right to retain possession of goods until
Unpaid Seller: A seller of goods is an unpaid the contract price is paid is referred to as A. a
seller when the whole price has not been paid. promise B. ultra vires C. a breach D. a lien
(JAMB 2013)
Contract of Bailment: This is the temporary
transfer of property, including cash, from the 7. In the Sale of Goods Act, goods which have
been identified and agreed upon at the time of
contract are called A. existing goods B. fixture 9. An agreement whereby a seller transfers or
goods C. Unascertained D. specific (NECO agrees to transfer the property in goods for a
2009) monetary consideration is called (a)contract of
sale (b)hire purchase (c)conditional sale
8. The law by which the seller transfers the (d)party selling (WAEC 2012, Q12)
property in goods to the buyer at an agreed
price is the (a)Hire Purchase Act (b)Trade
Description Act (c)Foods and Drugs Act
(d)Sales of Goods Act (WAEC 2001, Q49)

THEORY

1. What is a contract of sale of goods (WAEC 1993, Q7a; 2014 Q6a)

__________________________________________________________________________________
__________________________________________________

b. State any three of its provision

i. ___________________________________________________________________________
_________________________________________________________

ii. ___________________________________________________________________________
_________________________________________________________

iii. ___________________________________________________________________________
_________________________________________________________

c. Explain two conditions that constitute acceptance in the contract of sale of goods

i. ___________________________________________________________________________
_________________________________________________________

ii. ___________________________________________________________________________
_________________________________________________________

2. State any four rights of an unpaid seller of goods (WAEC 2001, Q7a)

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

3. Outline six items that must be contained in a contract of sale

i. ___________________________________________________________________________
_____________________________________

ii. ___________________________________________________________________________
_____________________________________
iii. ___________________________________________________________________________
_____________________________________

iv. ___________________________________________________________________________
______________________________________

v. ___________________________________________________________________________
______________________________________

vi. ___________________________________________________________________________
______________________________________
 WEEK 6

CONTRACT OF EMPLOYMENT

Objectives: At the end of the lesson, the 6. Provision of training facilities: The
students should be able to; employer must provide training facilities as
well as incentives to motivate his employees
a. Differentiate between employer and
employee RIGHTS OF THE EMPLOYER
b. Describe the duties of employer to
employee 1. Right to fix remuneration: The employer
c. Describe the duties of employee to has right to fix wages and salaries of his
employer employee
d. Highlight the rights of both employee
and employers 2. Right to relieve employee of his job: He can
terminate the appointment of his employee
CONTENT after giving due notice.

Definition of Employer 3. Right to use invention of employee: He has

every right to make use of anything invented
Employer can be defined as a person or an by the employee with his facilities and more
institution that hires or provide job opportunity especially during the working period.
for another person called employee for an
agreed remuneration. 4. Right to hire and employ anybody: The
employer has the right to hire whoever he
The employer can hire anybody he pleases and pleases without being questioned.
relieve any of this employees of work if
misbehaves contrary to the laid down rules and THE EMPLOYEE
regulations.
The employee is someone who agrees to
DUTIES OF AN EMPLOYER perform services to an employer in exchange
for the payment of an agreed remuneration.
1. Provision of safe place for work: Employer
must be able to provide a good and safe place The employee works for another person called
for his/her workers to carry out their duties the employer for an agreed sum of money and
appropriately. is accountable to his employer.

2. Job security: The employer must provide DUTIES OF THE EMPLOYEE

adequate job security. He must assure the
employee that their employment is permanent. 1. Must serve faithfully and honestly: The
employee must be serve faithfully and
3. He must Accept Responsibility for personal honestly. His /her interest must not conflict
injury: The employer must accept with the interest of his/her employer.
responsibility for injury sustained by an
employee during the course of carrying out his 2. Exercises good faith: The employee has a
obligations. duty to act in good faith when discharging
his/her duties
4. Provision of necessary tools and equipment:
He must provide all necessary tools and 3. Must not delegate his duties: He/she is not
equipment for proper execution of his to delegate the performance of his duties to
employee’s duties another person without the authority of the
employer
5.He must indemnify his employee: He must
indemnify his employee against any loss 4. Obeys order and instruction given by the
arising from the proper performance of his employers
duties
5. The employee must perform all his duties right to? A. regular emolument B. job security
and obligations according to the terms stated C. working facilities D. annual leave (JAMB
in the contract 2005)

6. He keeps the secret of this employer 2. One of the obligations of an employer to an

employee is to? A. indemnify him against
7. He must not accept bribe and not to use his liabilities incurred on duty B. award
employer's equipment for secret profit scholarship to his children C. terminate his
appointment without prior notice D. indemnity
RIGHTS OF EMPLOYEE him against injuries caused through negligence
1. They have the reject or accept offer (JAMB 2011)

2. They have the right to annual leave 3. One of the duties of the employer to his
employee is to A. delegate his duties to others
3. Right to receive the agreed remuneration staff B. charge the employee on the use of
equipment C. serve faithfully and honestly D.
4. Right to receive compensation for loss provide job security (JAMB 2016)

EXERCISES 4. Failure to pay an employee’s wage is a

breach of A. right B. warranty C. agreement D.
1. The most important right of the employee in trust (NECO 2009)
discharging his duties to the employer is the
THEORY

1. Describe four obligations of the employer to the employee (WAEC 1994, Q9)

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

b. State four duties of the employee to the employer

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

2. State three duties of an employer to an employee (WAEC 2016, Q7b)

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________
 WEEK 8

GOVERNMENT REGULATION OF BUSINESS

Objectives: At the end of the lesson, the has registered a trade mark, any infringement
students should be able to; will attract the wrath of the law.

a. Describe government regulation of 4. COPYRIGHTS: This is an exclusive or

business sole right granted to writers of literary works
b. List and explain methods of (authors), musicians and artists to produce his
government regulation of business work for a specified period of time. Another
person cannot reproduce such work without a
CONTENT written permission from the copyright owner.
Literary copyright will last for 50 years after
The government lays down certain rules and the death of the author while musical right will
regulations that will help to control and only last for 50 years after its release.
regulate business activities in a country. There
is need to ensure uniformity in commercial 5. Approval of Business Location:
policies and to regulate business activities so Government can also control and regulate
as to encourage smooth operations because of business by giving approval for the location of
the inherent intricacies and complexities in the a business enterprise. Sometimes they do this
commercial world. by establishing industrial estates.
METHODS OF GOVERNMENT 6. Publication of Accounts: Public liability
REGULATION OF BUSINESS companies are mandated to publish their
annual accounts for public consumption. This
1. BUSINESS LICENSE/REGISTRATION: is to prevent fraudulent practice.
Under the Company Act, all businesses must
be registered either as a sole trading, 7. Taxing Company's Profit: Business can
partnership or public company or cooperative. also be regulated by introducing tax on the
In Nigeria, it is mandatory for all business profit of some business enterprises while poor
enterprises to be registered with the Corporate companies may have their tax reduced through
Affairs Commission (CAC) before concession in order to encourage them.
commencing operation. A certificate of
incorporation will be issued to any business 8. Use of Standard Weight and Measures:
incorporated. Such organisation must abide by All business enterprises are mandated to use
the provisions of the Company and Allied standard weights and measures for the product
Matters Act. offered for sale, e.g. in soft drinks industry,
there are 25cl, 30cl and 35cl measures.
2. PATENT RIGHTS: This is an exclusive
right granted by government to a person to 9. Ensure Production of Safe Goods:
make use or sell an invention for a certain Another way is to ensure that goods offered
period of years. This gives the owner some for consumption are safe and of high quality.
degree of monopoly of the invention. Nobody
can make use of such invention without 10. Regulation of Disposal of Waste:
permission from the right owner. This is to Businesses are also mandated to introduce
encourage innovation and allow the inventor measures to dispose their waste in such a way
to recoup his research cost. that there will be no environmental pollution.

3. TRADE MARKS: Trade mark is a 11. Regulation Over Ownership of Business:

distinctive symbol; special mark or design hat Ownership of business can also be regulated
is given to a producer to distinguish or identify through some policies like indigenisation,
its products from other products. It is a form of commercialisation and privatisation.
product differentiation. Trade mark is a legal
term covering words and symbols which can Reasons for Government Regulation of
be registered and protected. Once a producer Business
1. To ensure uniformity in commercial and mark (c)patent (d)copyright (e)label (WAEC
economic policies. 1993, Q66; 2006, Q38)
2. To ensure industrial harmony between the 7. Goods sold under a distinctive trademark
employers and workers.
are A. branded goods B. unsought goods C.
3. To ensure provision of quality products perishable goods D. public goods E. Speciality
goods (WAEC 1993, Q76)
4. To ensure regular supply of essential goods
and services 8. A symbol that is used to represent a
company product from others is (a)license
5. To ensure the development of the economy
(b)trade mark (c)patent right (d)trade permit
6. To raise revenue through tax imposition for (e)copyright (WAEC 1998, Q99)
certain purposes.
9. The label on "three crown milk" is a form of
EXERCISES (a)patent right (b)branding (c)packaging
(d)copyright (WAEC 2002, Q39)
1. The difference between trademark and
patent right is that the latter? A. gives 10. A major reason why government regulates
exclusive right to import a particular good B. business activities is to (a)prevent producers
is conferred by the government C. confers from selling at point (b)provide employment
monopoly on a product D. confers exclusive to school leavers (c)ensure fair practices and
right to publish literary works (JAMB 2010) consumer protection (d)force producers to
export more goods (WAEC 2002, Q45)
2. Patent Right gives the owner the exclusive
right to? A. produce any type of goods B. his 11. A person who invented a new machine for
invention C. form a new business D. sell to making beverages may protect his exclusive
other manufacturer E. produce the same goods right by (a)labelling the product (b)obtaining a
with other manufacturers (WAEC 1991, Q18) patent (c)choosing a name for the product
(d)obtaining a trade mark (WAEC 2009, Q1)
3. An author’s exclusive right to published and
unpublished work is known as (a)patent right 12. The exclusive right of an author over his
(b)fundamental human right (c)copy right book is (a)trade mark (b)brand name
(d)authorship (e)constitutional right (WAEC (c)copyright (d)patent right (WAEC 2012,
1990, Q50; 1993 Q89) Q50)
4. The sign on a Volkswagen represents the 13. Using symbols, letters, name or
(a)trademark (b)trade name (c)patent right combination of these by a company to
(d)copy right (e)brand name (WAEC 1992, distinguish its products is A. product cycle B.
Q75) marketing mix C. trade mark D. market
segmentation (WAEC 2011, Q35)
5. A patent is usually granted to an individual
whose work (a)can be linked with an existing 14. A term which describes the value of
artistic work (b)is a new invention (c)too many business connection made by a company over
years to accomplish (d)is a transfer from a the years is known as (a)patent (b)copyright
foreign intervention (e)is a capital intensive (c)goodwill (d)trade mark (WAEC 2013, Q46)
(WAEC 1994, Q88)
15. A distinctive symbol, title or design that
6. Which of the following gives an exclusive readily identifies the company and its products
right to an inventor (a)brand name (b)trade is (a)patent right (b)trade mark (c)trade name
(d)brand name (WAEC 2016, Q50)
16. The law that protects a musicians work Trademark D. hire purchase (WAEC 2017,
from piracy is A. usury law B. copyright law C. Q44)
THEORY

1. Explain the following terms (WAEC 2009, Q8a)

a. goodwill
__________________________________________________________________________________
__________________________________________________

b. patents
__________________________________________________________________________________
__________________________________________________

c. Trade mark
__________________________________________________________________________________
__________________________________________________

d. copyright
__________________________________________________________________________________
__________________________________________________

2. State how the government uses the following to regulate business:

a. registration of business name

__________________________________________________________________________________
__________________________________________________

b. patent
__________________________________________________________________________________
__________________________________________________

c. trade mark
__________________________________________________________________________________
__________________________________________________

d. copyright
__________________________________________________________________________________
__________________________________________________

3. Explain four ways by which government regulates businesses (WAEC 1995, Q4b)
 WEEK 8

STRUCTURE OF BUSINESS

Objectives: At the end of the lesson, the 5. Authority and Responsibility: Authority and
students should be able to; responsibility should be properly stated and
both should matter to each other, i.e. authority
a. Draw an organisational chart of a should be commensurate with responsibility
company showing various positions for effective supervision.
b. Differentiate between authority and
responsibility 6. Unity of Direction: People engaged in the
c. Describe the term span of control same kind of activities must have objectives in
d. Discuss the factors that determine a single plan. This means that the corporate
span of control interest must supersede individual interest.

CONTENT 7. Scalar Chain: Henry Fayol said "a hierarchy

is necessary for the unity of direction. Formal
The organisational set up of a business communication must move up and down the
involves the allocation of responsibilities and line of authority, i.e. vertical communication
functions to different components of an whereby there would be proper
organisation and delegating authority to each communication from the top to the bottom and
position in order to ensure the smooth from the bottom to the top.
operation of the business so as to achieve the
planned objectives. 8. Discipline de Corps: In any organization,
discipline must be maintained in all
In other words, an organisational structure departments. A fair disciplinary system with
must show the flow of responsibilities, penalties judiciously applied by worthy
authority and channels of communication. It superiors will definitely strengthen the
can also be defined as arrangement and organization.
interrelationship of the various component
parts and positions of a business. 9. Espirit de Corps: Management should foster
the morale of its employees and build up a
PRINCIPLES OF MANAGEMENT team spirit. Management should be guided by
the popular slogan; "United we stand, divided
1. Clarity of Objective: The aims and we fall".
objectives of an organization, the strategies,
and means of achieving them must be clearly 10. Remuneration: The remuneration of
stated. employees should be fair and satisfactory to
both the employer and the employee.
2. Span of Control: This is the number of
subordinates under the direct supervision of a ORGANISATIONAL CHART
manager to ensure efficiency and effectiveness.
The number of subordinates should be Organisational chart is a diagrammatic
restricted to what is mentally possible for him representation of the relationship between the
to control.
various organs of the organisation, i.e., the
3. Unity of Command: This principle states structure of the organisation. It shows the line
that subordinates should receive instruction of authority and responsibility.
from their boss only as dual command affects
effectiveness. In other words, it is a diagram of an
organisation's structure, showing the
4. Division of Labour: The organization will departments, functions and positions in the
achieve efficiency if work is divided into the
organisation and how they are related.
smallest possible units as specialization
increases productivity.
 2. Functional Organization: This applies where
the activities of the organization are arranged
according to the basic functions of the
business undertaken. Therefore similar or
Uses of Organisational Chart related activities are grouped together under
each department.
i..Organisational chart shows the flow of line
of authority and responsibilities. Functional organisation is a set up where
certain functional relationships exist between
ii. It shows the various positions in an specialist or functional managers and line
organisation. managers, e.g. the personnel manager has a
functional responsibility for all activities
iii. The span of control will be shown within concerning personnel in all the departments of
an organisation. the organisation, even though each employee
has his own manager in their department.
iv. The whole structure of the organisation will
be shown.

v. A chart shows the relationship between

various organs in an organisation.

vi. The boundaries of each position holder will

be shown.

TYPES OF ORGANISATIONAL
3. Line and Staff Organisation: The line and
STRUCTURE
staff organisation is a combination of line or
1. Line Organisation: This refers to the direct direct executives and the specialist's auxiliary
working relationship between the subordinates services (functional) whereby a line
and the superiors in which the line of authority organisation engages experts who are to advise
and responsibility flow from the top the line managers in the performance of their
executives to the lowest subordinates. A line duties. Line executives do the actual work
manager has unlimited authority over a required in the operation of the organisation,
subordinate to whom he gives orders. whereas staff are specialists who advise
executives.
4. Committee Organization: This applies assigned to him or her. It is the liability of a
where a group of people are appointed to carry person to be called upon to account for the
out special duties. A committee, for instance action and results from assigned duty.
may be set up to make recommendations or to Responsibility cannot be delegated.
execute projects. In the committee type of
organisation, the management team is assisted Henry Fayol says, "authority should be
by a number of standing advisory committee. commensurable with responsibility."
This is common in many business enterprises. According to him, responsibility is feared
The advisory committee members are among the people, whereas authority is sought
appointed to carry out special duties. A after. A good leader should encourage those
committee, for instance, may be set up to around him to accept responsibility.
make recommendations or to execute projects.
SPAN OF CONTROL
AUTHORITY, POWER, The span of control or span of management
ACCOUNTABILITY AND refers to the number of subordinates a manager
RESPONSIBILITY can effectively control or number of
AUTHORITY can be defined as power which subordinates working with him. To ensure
has legitimacy. It is the right to give command effective control, the number of subordinates
or directive and to ensure compliance. The under a manager's control should be restricted
authority of a manager is derived from his to what is mentally possible for him to handle.
office and no manager can command or direct As suggested by Henry Fayol, span of control
unless he has the authority to do so. should be limited to between three and six.

Authority can also be referred to as the FACTORS DETERMINING SPAN OF

instrument of office or anything that enables CONTROL
individuals to secure obedience from other i. The nature of work
persons. ii. The qualification, training and
POWER can be defined as the ability to exert experience of the manager
influence and to compel obedience. To have iii. The personality of the manager
power is the ability to change the behaviour or iv. The size of the organisation
attitudes of other individuals through having v. The quality of lateral communication
the means of sanctioning them. The power of which may enable the subordinates to
an officer is derived from the authority given get job done without constant reference
to him. to the superior for consultations
vi. The demands on a manager's time in
ACCOUNTABILITY simply means a other jobs
situation whereby a subordinate is accountable vii. The frequency of interpersonal
to his superior in an organisation for his relationship between a manager and the
actions and he is obliged to report to his subordinates
superior how well he has discharged his
responsibilities and use the authority delegated DELEGATION OF AUTHORITY
to him. The extent to which somebody is Delegation of authority means the transfer of
accountable will depend solely on the amount power or right to a subordinate to give orders
of authority delegated to him. and enforce obedience in the performance of a
RESPONSIBILITY can be defined as the particular job. The complicated nature and
individual obligations to carry out the duties growth of organizational activities have made
it imperative for senior officers to delegate 4. The fear of losing touch with the
authority to their subordinates in the department, work and staff
performance of a particular job.
5. The fear of the subordinate making costly
Advantages of Delegation of Authority mistakes

1. Reduction of the burden or work on the 6. The fear of the subordinates detecting their
superior faults

2. Training of subordinates 7. The fear of the subordinates becoming more

knowledgeable than the boss
3. It saves time as managers will have time for
high level duties 8. Sometimes due to lack of capable
subordinates
4. Jobs can be executed easily
9. The fear of subordinates taking
5. It makes smooth succession possible as
subordinates are prepared adequately EXERCISES

6. It brings cordial relationship between the 1. The act whereby a manager assigns some of
subordinates and superior his duties and power to a subordinate is known
as (a)authority (b)assignment (c)decision
7. It motivates subordinates and in doing so making (d)delegation (e)reorganisation
increases efficiency and productivity. (WAEC 1993, Q86)
Disadvantages of Delegation of Authority 2. Span of control is the (a)ability of the
1. It may lead to confusion as role and supervisor to control the staff (b)qualification
responsibilities are not clearly stated possessed by the supervisor (c)number of staff
under the control of supervision (d)authority
2. Insufficient delegation may lead to of the supervisor to control the staff (e)total
unfinished tasks number of staff in the whole organisation
(WAEC 1993 Q100)
3. It leads to duplication of management
efforts 3. The process of entrusting part of the work
of a superior and the corresponding authority
4. Abuse of Delegation to a subordinate in an organisation is called
(a)delegation (b)deputizing (c) co-ordinating
5. Delegation may affect the quality of job if
(d)supervision (e)motivation (WAEC 1994,
delegated to less experienced staff
Q55)
REASONS WHY A MANAGER MAY
4. A diagram showing the formal lines of
REFUSE TO DELEGATE AUTHORITY
authonty in any establishment is known as (a)
1. Fear of expressing favouritism among the a map of the organisation (b)span of control
subordinates (c)an organisational chart (d)channel of
distribution (e)unity of Command (WAEC
2 Fear of repercussion and personal 1995, Q86)
judgement being called to question
5. The process of transfering decision making
3. The fear of the subordinate performing to low levels of the organisation hierarchy is
better than the boss called (a)span of control (b)delegation of
authority (c)management of authority
(d)centralisation of authority (e)unity of 12. The Managing Director would be located
Command (WAEC 1995, Q89) in Box (a) V (b)T (c)U (d)W (e) F

6. The number of subordinates that one person 13. Which of the following is represented by
can supervise effectively in an organisation is the chart? A. Committee organization B. Staff
refered to as (a)unity of command (b)chain of organization C. Line and staff organization D.
command (c)organisation hierachy Line organization E. Centralised organization
(d)delegation of authority (e)span of control
(WAEC 1995, Q92) 14. The transfer of authority by a superior to
his subordinate in an organisation is
7. which of the following stresses the use of (a)controlling (b)decentralisation (c)delegation
only specialists to head departments? (d)directing (WAEC 2018, Q41)
(a)commitee organisation structure (b)line
organisation structure (c)line and staff 15. A diagram showing the positions of the
organisation (d)functional organisation structure of a company is (a)span of control
(e)centralisation (WAEC 1996, Q10) (b)organisational chart (c)vertical integration
(d)flow chart (WAEC 2019, Q33)
Use the chart below to answer questions 8-13
(WAEC 1996 Q20-25) 16. The management term which refers to the
number of management of staff a superior
ORGANISATIONAL CHART OF OLUWA officer can effectively supervise is
PLC (a)Delegation of authority (b)division of
labour (c)unity of command (d)span of control
(WAEC 2019, Q42)

17. A key advantage of delegation is that A.

workers are prepared for higher responsibilites
B. the manager has less work to do C. the
manager spends less time on planning. D. the
organization grows larger in size (JAMB 1997)

18. In delegation of authority, the subordinate

offer is? A. accountable to his immediate
8. In which of the boxes in the organization superior B. responsible for his superiors
chart would you locate the shareholders of actions C. only answerable to top management
OLUWA PLC? (A)F (b) X (c) V (d)T (e)W D. expected to replace his superior (WAEC
2020)
9. The position of the Departmental Manager
would be located in Box (a)T (b)F (c)W (d)X
(e) U

10. The Board of Directors of Oluwa Plc

would be in Box (a) V (b)W (c)X (d)T (e)U

11. The position of the Accounts Clerk would

be located in Box (a)F (b)T (c)V (d)U (e)X
THEORY

1. Adama's Pure Water Production Company Ltd. has the following officers: General manager,
Marketing manager, Administration manager, Purchasing manager, Production manager, Accounts
manager, Marketing officers, Production supervisors, Accounts officers; Purchasing officers and
Administration officers. (a) Draw an organizational chart for the company (WAEC 2018, Q4a)

2. Give four uses of an organisation chart (WAEC 1996, Q9)

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

b. Explain three reasons why managers may refuse to delegate authority

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

c. State three (4) advantages of delegation of authority (WAEC 1990, Q7b)

i. ___________________________________________________________________________
______________________________________

ii. ___________________________________________________________________________
______________________________________

iii. ___________________________________________________________________________
______________________________________

2. Explain five disadvantages of delegation of authority (WAEC 1994, Q10b)

i. ___________________________________________________________________________
________________________________________________

ii. ___________________________________________________________________________
________________________________________________

iii. ___________________________________________________________________________
________________________________________________

iv. ___________________________________________________________________________
_________________________________________________

v. ___________________________________________________________________________
__________________________________________________

3. What is delegation of authority (WAEC 1990, Q7a)

__________________________________________________________________________________
__________________________________________________

4. Explain four factors that determine the span of control (WAEC 1997, Q7a)
 i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

5. Explain the following terms

a. Power
__________________________________________________________________________________
_____________________________________________________

b. Authority
__________________________________________________________________________________
______________________________________________________

c. Responsibility
__________________________________________________________________________________
______________________________________________________

6. Explain the types of an organisational structure

i. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

ii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iv. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

7. Explain any six principles of management

i. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

ii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________
iii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iv. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

v. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

vi. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________
 WEEK 9

INTRODUCTION TO BUSINESS MANAGEMENT

Objectives: At the end of the lesson, the 1. PLANNING: This is the function which
students should be able to; involves setting goals and devising specific
activities, procedures and schedules for
a. Describe the term management
b. Discuss the functions of management meeting the goals or objectives. It is a process
c. Discuss the social responsibilities of a which entails formulating targets or objectives
business for an organisation and outlining the strategies
d. Discuss the importance of inter and or means of achieving these objectives.
intra departmental communication
e. Discuss various business resources 2. CONTROLLING: This involves setting
standards, measuring progress with the set
CONTENT
standard and taking corrective action to
Meaning of Management minimise or avoid errors, thus achieving the
objectives. It helps in reducing wastage by
Management is the process of getting things taking corrective measures. Actual
done through other people. It is the act of performance will be compared with the set
controlling, organising, directing, planning and standards and where there is deviation,
formulating organisation activities so as to corrective measures will be taken.
achieve organisational objective.
3. ORGANISING: This is another function
Management is also the process of directing all which involves the bringing together or
the human and physical resources in an arranging whatever resources that are available,
organisation so as to achieve the objectives of e.g. people, time, money, equipment to
the organisation. achieve the objectives of an organisation.
Organising involves the division of work into
Management is also the process of using
different sections, allocating responsibilities
authority to organise, direct, and control
and authority to all components of the
subordinates in order to achieve the goals of
organisation in order to achieve the objectives.
the organisation.
4. STAFFING: This is the process of
Management is the process of setting
organising human resources in such a way that
organisational goals, deciding what actions
the organisation has the right people in the
and resources must contribute to meeting goals
right place or position at the right time to
and then co-ordinating, guiding and
achieve the objectives. It involves the
encouraging the co-operative work of other
provision of qualified, skilled and efficient
people to meet the goals.
personnel to manage the affairs of the
In a summary, it is the process of co- organisation.
ordinating all resources through the process of
5. MOTIVATING: This is the process which
planning, organising, leading and controlling
deals with the various ways by which an
in order to attain stated objectives.
organisation's leader can channel the inner-
force in the people towards behaving in the
ways that will coincide with the corporate
goals.

FUNCTIONS OF MANAGEMENT 6. DIRECTING: This involves getting people

to carry out the decisions quickly, efficiently
and with minimum fuss. Directing entails Finance can be obtained through borrowing,
using leadership, motivation and other skills to selling shares, debentures and retained profit.
ensure that people in the organisation know
what their work is and have it. 3. Material Resources: Material resources
include input-raw and semi-finished raw
7. COMMUNICATION: This is the transfer materials, equipment, tools, plant and
of information and ideas with feedback machinery which are needed for production.
between people. It is the process by which For a business to operate efficiently, the
people attempt to share meaning via quality and quantity of the material resources
transmission of symbolic messages. Planning, must be taken into consideration.
organising and leading require managers to
communicate with subordinates so that group 4. Opportunities / Goodwill: These include
goals can be achieved. facilities within the environment which the
business uses. They include water, roads,
MEANING OF BUSINESS electricity and telephone services. The name
and reputation of a business which is referred
Business can be defined as the sum total of all to as goodwill is also good for business
economic activities which people engage in to operation.
create, procure or provide desired goods and
services to the consumers in proper quantities BUSINESS ENVIRONMENT
at suitable times and at satisfactory prices in
order to make profit. It can also be defined as Business environment consists of a number of
any activity that people engage in directly or activities that affect the operations of a
indirectly in order to make profit. It can be business. The business environment is
owned privately or by the government. classified into

BUSINESS RESOURCES 1. Technological Environment:

Technological development makes previous
Business resources are the inputs which are materials to become outdated obsolete. A
required for effective and efficient running of business must be concerned about the
a business concern. The resources must be technical know-how as technological
organised by the manager to achieve the set development will lead to increase in the
objectives of an organisation. They include; quality and quantity of goods to be produced,
e.g. computers. Technological environment
1. Human Resources: This is the most includes provision for training in research
important resources because plans, controls, institutions.
organises and ordinates all other resources to
achieve maximum efficiency Human resources 2. Political Environment: The policie of the
refer to the personnel required to run the political party in power would affec the
business to achieve the organisation's operation of business. Government policies
objectives. They may be skilled or unskilled will determine business practice and
labour. investment climates in a country.

2. Money Resources: Financial resources 3..Financial Environment: The effect of the

include the money to float a business and to present economic crisis is reflected in the
purchase other resources. Money as a resource financial position of many business
is important because it is used to finance all organisations. Businesses are suffering 8 from
aspects of a business such as purchase of a deficiency of liquid financial ta resources.
machinery, materials and payment of labour. The inability to obtain, raise th shares and
debentures affects the h performance of will definitely affect the operation and
business. performance of a business.

4. Economic Environment: A country's DEPARTMENTALISATION

economic system will determine the nature of
business, e.g. in a socialist economy, there is Departmentalisatiom is the grouping of
much state intervention while under capitalism, departments of work activities that are similar
market forces prevail.The state of the economy and logically connected.
affects business operation, e.g. period of also
FUNCTIONS OF EACH DEPARTMENT
boom or recession will affect a business
positively or negatively as the case may be. 1. PERSONNEL DEPARTMENT: This is
concerned with the general administration of
5. Infrastructural Environment: The the whole organisation. The Personnel
availability of social amenities like road,
Manager is the head of this department. The
telephone, railway, airports and seaports will main functions are:
affect the operation of a business. The
facilities within the environment of a business i. Human resources planning
play crucial role in the survival of an ii. Recruitment, interviewing and
organisation. selection Industrial training and
development
6. Cultural Environment: A business iii. Staff discipline
organisation must take into consideration the iv. Appraisal
beliefs, attitudes, needs, values and lifestyles
v. Promotion
of the people. The socio-cultural attitudes of vi. Welfare, safety and health of workers
the people will undoubtedly affect their vii. Maintaining good industrial and
consumption pattern. labour relations
7. Legal Environment: A great deal of viii. Trade union matters
government legislations, laws, acts and ix. Demotion and dismissal
decrees, e.g. Company Act, Partnership Act, 2. FINANCE DEPARTMENT: This is
Employment Act etc will affect the conduct of
concerned with the financial aspect of the
a business. To avoid any legal action, the organisation. There are various divisions like
business must abide by the various legislations accounting, costing and auditing within this
in its operation. department. The main functions of the Finance
8. Demographical Environment: This takes Department are:
into consideration the composition of the i. To control expenditure
population, i.e., size and structures and how it ii. To take account of revenue
will affect the performance of a business. The iii. To keep proper books of accounts
total population distribution and structure will iv. To ensure that profits justifies
determine the quantity and types of goods to investments
be produced, v. To ensure that resources are managed
9. Natural Condition and Ecological adequately
Environment: These include the climatic and 3. PRODUCTION DEPARTMENT: This
ecological changes in an environment. The department produces goods under the direction
changes will include drought, erosion, of the production manager who is the head of
pollution, flood and the water resources which the department. The functions of this
department are:
 i. Cost control vi. Production of goods at the right time
ii. To produce goods of right quality
iii. To produce goods of actual quantity 4. MARKETING DEPARTMENT: This is
iv. To research and develop new products concerned with the marketing, sales and
v. To design products distribution of goods produced. Its key
functions are:

i. To advertise iv. Distribution of goods

ii. To sell goods v. Consumers' orientation
iii. To make market research vi. Marketing
5. PURCHASING DEPARTMENT: The ii. Purchase of assets
purchasing department makes arrangement for iii. Storage and control of stock
purchase of all items required by the business. iv. Warehousing of goods
They perform functions such as: v. Maintaining accurate record of sources
of materials
i. Purchase of raw materials
i. They ensure business profit.
ii. They distribute dividends to
SOCIAL RESPONSIBILITIES OF A shareholders.
BUSINESS iii. They organize annual general meeting
iv. They prepare statement of account
A. RESPONSIBILITY TO THE
GOVERNMENT: D. RESPONSIBILITIES TO THE
i. Business organization offer COMMUNITY:
employment opportunities to citizens i. A business has the responsibility of
ii. Payment of taxes to the government so controlling environmental pollution in
as to contribute to the development of the community.
the county ii. Should provide social amenities to the
iii. Business organization must comply community.
with rules and regulation guiding their iii. Employment of community member
operation. iv. Provide support for sports and games
iv. Business organization must accept v. Award scholarships to students from
government role in business affairs. the community
vi. provision of quality goods and
B. RESPONSIBILITIES TO THE
services to the community member.
CONSUMERS:

i. They educate the consumers E. RESPONSIBILITIES TO THE

ii. They provide quality service to the EMPLOYEES
consumers. i. Must ensure payment of wages and
iii. Prevention of product defects salaries.
iv. Provision of pre-sales services to ii. Provision of conducive working
consumer environment for the workers.
v. Must attend to customers complaint iii. Provision of Welfare Package.
vi. Must be truthful in advertising. iv. Recruitment and promotion of staffs.
v. They provide training facilities to the
C. RESPONSIBILITIES TO THE
staffs.
SHAREHOLDERS:
INTERDEPARTMENTAL AND 5. It leads, directs, motivates and creates a
INTERDEPARTMENTAL climate in which people want to contribute to
COMMUNICATION the growth of the enterprise.

INTERDEPARTMENTAL 6. It provides permanent records for reference

COMMUNICATION: purposes.

Inter-departmental communication is the 7. Communication makes it possible for the

process of sending and receiving messages or day-to-day activities to be speedily attended to.
information from one department to another
within an organisation. It refers to 8. It bridges the gap between the top
communication among the various management and the subordinates.
departments in an organisation. 9. It helps to develop plans for the
The various media of communication in an achievement of the goals and objectives of the
establishment include: Telephone, Radiophone, enterprise.
Loud speakers, Circulars and Computer
EXERCISES
terminals.
1. The critical factor in organizing a business
INTRA-DEPARTMENTAL is? A. money B. capital C. machinery D.
COMMUNICATION: management E. control (WAEC 1989, Q15)
This involves the sending and receiving of 2. Which of the following is not an attribute of
information within the departments of an an effective business manager (a)empathy
organisation. In a department, there are (b)subjectivity (c)altruism (d)objectivity
various units and sections which must be co- (e)self awareness (WAEC 1989, Q16)
ordinated through effective communication
system. 3. The management function of evaluating the
company's performance to determine whether
The various media of communication available ut is achieving its set objectives is
for intra-departmental communication are:
(a)controlling (b)directing (c)organising
Intercom, circulars, direct communication, (d)planning (e)consulting (WAEC 1989, Q53)
bells, buzzers and notice boards.
4. The management function of anticipating
IMPORTANCE OF COMMUNICATION the future determining the best course action to
IN BUSINESS achieve company objective is? A. directing B.
1. It establishes and disseminates the goals of organizing C. controlling D. planning E.
an enterprise consulting (WAEC 1989, Q95)

2. It facilitates official transactions between 5. What is planning? (a) unificatíon of effect

the various units, sections and departments. and coordination of all activities in pursuance
of the same goal (b)exchange of information
3. It helps to organise human and other among different people in an organisation
resources in the most effective and efficient (c)giving information to ensure that decisions
way. are carried out to achieve a company's
objective (d)division of work and the
4. It helps to select, develop and appraise allocation of duties, authority and
members of the organisation. responsibilities (e)anticipating the future and
making decistons for future actions to achieve
company's objective (WAEC 1990, Q74)
6. Management can be defined as (a)getting and policies is? A. organizsing B. planning C.
things done through people (b)implementation communicating D. directing E. coordinating
of business decisions (c)the number of levels (WAEC 1994, Q53)
in an organisation (d)the general manager and
the employees (e)decision making (WAEC 15. The art of achieving stated objectives in a
1990, Q75; 1996, Q74) business organisation in a more efficient way
through the use of human and material is
7. Which of the following concepts is (a)planning (b)co-ordinating (c)management
concerned with determining the business (d)motivation (e)control (WAEC 1994, Q58)
objectives and how they can be achieved? A.
Planning B. Organization C. Co-ordinating D. 16. The process by which the structure and
Motivating E. Delegating (WAEC 1990, Q86) allocation of jobs are determined is a
management function of (a)staffing
8. The accomplishment of a good company's (b)directing (c)controlling (d)organising
objective by guiding and motivating (e)directing (WAEC 1995, Q90)
subordinates is known as? A. Planning B.
Organizing C. Managing D. Controling E. 17. The process of establishing objectives for
Directing (WAEC 1990, Q88) the organisation and determining the best ways
to achieve them is a management function of
9. The system of parting with authority not (a)communicating (b)organising (c)planning
responsibility is known as? A. controlling B. (d)controlling (e)motivating (WAEC 1995,
planning C. delegating D. movtivating E. co- Q91)
ordinating (WAEC 1991, Q91)
18. Measuring performance against set
10. The process whereby business objectives in an organisation is a management
organisations regularly compares physical function that relates to (a)staffing (b)planning
events with the standard set and takes (c)organising (d)departmentalisation
corrective action is (a)coordinating (e)controlling (WAEC 1995, Q93; 1998 Q58)
(b)organising (c)planning (d)controlling
(e)motivating (WAEC 1992, Q68) 19. Which of these management functions
involves checking performance against set
11. Which of the following is not one of the standards (a)controlling (b)co-ordinating
4m's of resources (a)method (b)men (c)money (c)planning (d)directing (e)organising (WAEC
(d)material (e)machine (WAEC 1993, Q52; 1996, Q13)
1996, Q7; 1998 Q97)
20. Which of the following clearly defines
12. The management technique that anticipates business (a)the process of planning,co-
the future and determines the appropiate line ordinating, organising, and controlling (b)the
of action is known as (a)planning act of achieving goals with the help of others
(b)organising (c)consulting (d)directing (c)the act of buying and selling (d)sole
(e)controlling (WAEC 1993, Q99) proprietorship, partnership and public limited
companies (e)any productive activity
13. Which of the following is not a function or undertaken for profit motive (WAEC 1996,
management (a)staffing (b)planning Q89)
(c)organising (d)directing (e)Distributing
(WAEC 1994, Q17) 21. The setting of objectives and determination
the best way to achieve them are known as
14. The giving of clear instructions and (a)coordinating (b)planning (c) controlling
information to all concerned in an organisation (d)organising (e)directing (WAEC 1998, Q59)
to ensure proper understanding of decisions
22. The process of placing the right people in 29. Which of the following is the basic
the right position in an organisation is? A. function of a personnel department? A.
planning B. motivating C. staffing D. directing Recruiting staff B. Organizing training for
(WAEC 2017, Q37) staff dependants C. Settling disputes among
trade unions D. Processing staff salaries and
23. Whichof the following roles is performed wages E. Conducting product research(WAEC
by middle management in an organisation? A. 1993,Q98)
Formulation of objectives and results B.
Review of masters plan, programmes and 30. Which of the following is responsible for
budgets C. Review and approval of operational the welfare of staff in an organisation?A.
results D. Implementation of organizational Accounts department B. Administrative
plans and objectives (WAEC 2019, Q41) department C. Personnel department D. Sales
department E. Public relations department
24. The selection and promotion of staff in an (WAEC 1994, Q18)
organisation is the function of the? A.
Marketing department B. Finance department 31. In which of the following environment
C. Personnel department D. Production does a firm use outdated equipment operate
department E. Public relations department (a)economic (b)technological (c)social
(WAEC 1990, Q97) (d)political (e)legal (WAEC 1994, Q21)

25. The state of scientific knowledge and 32. The activities of competitors in the market
production process obtainable in a country is are part of the (a)technological environment
part of the?A. Economic environment of (b)social environment (c)legal environment
business B. Political environment of business (d)political environment (e)economic
C. Legal environment of business D. environment (WAEC 1994, Q85)
Technological environment of business E.
Cultural environment of business. (WAEC 33. Which of the following is primarily
1991,Q30) responsible for projecting the image of the
company (a)sales department (b)Personnel
26. Which of the following are elements of the department (c)public relations department
economic environment of business? A. (d)accounts department (e)legal department
Government policy B. Norm and value C. (WAEC 1994, Q95)
Politics D. Inflation and unemployment E.
Family and peer groups.(WAEC 1991,Q64) 34. Which of the following is responsible for
preparing the balance sheet of a public limited
27. Which of the following is responsible for company (a)public relations department
advertising vacant positions existing in (b)Personnel department (c)administration
companies? A. Sales department B. Public department (d)research department (e)finance
relations department C. Personnel department department (WAEC 1995, Q87)
D. Marketing department E. Finance
department.(WAEC 1992,Q66) 35. When a company contributes to the
immediate community it is performing
28. Which of the following department may a (a)political responsibility (b)economic
wholesale warehouse organisation not have? A. responsibility (c)social responsibility (d)legal
Buying department B. Stores department C. responsibility (e)technological responsibility
Despatch department D. Production (WAEC 1995, Q94)
department E. Sales department (WAEC
1992,Q86) 36. An organization that builds access roads
for the benefit of the community in which it is
located has fulfilled its A. legal responsibility
B. political responsibility C. social 40. Which of the following persons is a part of
responsibility D. technological responsibility E. business internal environment? (a)employee
economic responsibility (WAEC 1996, Q15) (b)supplier (c)creditor (d)customer (WAEC
2016, Q44)
37. The deportment that deals with internal
grievances and maintenance of discipline in an 41. If a business uses part of its profit to
organisation is the (a)accounts (b)maintenance develop where it operates, the business is said
(c)personnel (d)public relations (e) production to be fulfilling its (a)economic responsibility
(WAEC 1996, Q17) (b)marketing responsibility (c)social
responsibility (d)managerial responsibility
38. In a business environment, which of the (WAEC 2017, Q47)
following variables can a businessman
conveniently control? (a)products (b)politics 42. The provision of scholarships by a firm to
(c)culture (d)economy (e)the laws (WAEC needy students is part of its (a)political
1996, Q82) responsibility (b)economic responsibility
(c)social responsibility (d)legal responsibility
39. Which of the following is a function of (WAEC 2018, Q42)
marketing department in a firm? A. Add value
to goods and services B. Protect those who
engage in business transactions C. initiate
general policies in the organization D. Handle
all staff masters in the system (WAEC 2014,
Q16)
THEORY

1. What is planning? (WAEC 1994, Q10a)

__________________________________________________________________________________
_____________________________________________

b. What are the benefits of planning in business management (WAEC 1992, Q7)

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

v. ___________________________________________________________________________
2. Mention and explain four business resources (WAEC 1995, Q4a)

i. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

ii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________
 iii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iv. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

3. Mention and explain five ways in which a business discharges its social responsibility (WAEC
1991, Q5)

i. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

ii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iv. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

v. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

3. Mention five types of business environment (WAEC 1992, Q3a)

i. _________________________________________________________________________

ii. _________________________________________________________________________

iii. _________________________________________________________________________

iv. _________________________________________________________________________

v. _________________________________________________________________________

4. Mention four functions of personnel department in a business establishment (WAEC 1992, Q7a)

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________
5. Mention and explain four environments under which a business operates (WAEC 1993, Q9)

i. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

ii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iv. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

6. Explain the social responsibility of the following (WAEC 1996, Q6)

a. The community

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

b. The employee

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

c. The shareholders

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

d. The government

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

e. The consumers

i. ___________________________________________________________________________
 ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

7. Identify four environmental factors that affect business (b)Explain how each of the factor
mentioned above affects business operations (WAEC 1997, Q4)

i. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

ii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iv. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

7. State two functions each of the following (WAEC 2018, Q4b)

a. Accounts

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

b. Administration

i. ___________________________________________________________________________

ii. _________________________________________________________________________

c. Marketing

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

d. Production

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

8. Differentiate between interdepartmental communication and intra-departmental communication

__________________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________
9. State five functions of inter and intra departmental communication

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

v. ___________________________________________________________________________

10. Madam Fana, the human resources manager of Baku limited, is due to start her annual leave. She
wishes to assign one of her assistants to perform her duties in her absence (WAEC 2021, Q6)

(i) identify and explain the organizational principle on which Madam Fana has based her decision

_________________________________________________________________________

(ii) State four duties of Madam Fana in Baku limited.

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

(iii) Explain the following management functions:

(a) Planning
__________________________________________________________________________________
______________________________________________________

(b) Organizing
__________________________________________________________________________________
_______________________________________________________

(c) Directing
__________________________________________________________________________________
_______________________________________________________

(d) Controlling
__________________________________________________________________________________
________________________________________________________
SS3 SECOND TERM SCHEME OF WORK

WEEK 1: INTRODUCTION TO MARKETING

WEEK 2: ADVERTISING

WEEK 3: BUSINESS DOCUMENTS AND MEANS OF PAYMENT

WEEK 4: PRIVATISATION AND COMMERCIALIZATION

WEEK 5: ECONOMIC GROUPINGS IN WEST AFRICA

WEEK 6: ECONOMIC GROUPINGS IN WEST AFRICA II

WEEK 7: REVISION

WEEK 8: EXAMINATION
 WEEK 1

INTRODUCTION TO MARKETING

Objectives: At the end of the lesson, the 4. Buying/Selling/Exchange: This covers

students should be able to; purchase of raw materials and goods from so
many sources and transfer of ownership of
a. Define marketing such goods to the consumer at the right quality.
b. State and discuss the functions of
marketing 5. Grading and Standardizing: It involves
c. Discuss the importance of marketing ensuring that the goods conformed to the
d. Explain components of marketing mix required standard and quality with respect to
e. Distinguish between marketing shape, colour,taste, etc.
concept and market segmentation
6. Marketing Information Research: This
CONTENT involves collection of information from many
sources and dissemination to producers and
Meaning of Marketing distributors.
Marketing consists of the performance of 7. Transportation: This covers movement of
business activities that direct the flow of goods goods from where they are produced to the
and services from the producer to the point where they are required.
consumer or users in order to satisfy customers
and accomplish the company's objectives. It 8. Pricing: Marketing, assisting in fixing price
encompasses all activities aimed at facilitating at a level reasonable enough to give profit to
exchange. the company.

Marketing creates time, place and possession. IMPORTANCE OF MARKETING IN AN

It arranges for production and making goods ECONOMY
available at the right time, in the right place
and form. Marketing embraces all the 1. Marketing bridges the gap between the
activities relating to the product itself. These producer and the consumer.
activities include the pricing, distribution, 2. It also reduces wastages through marketing
promotion, research and sales forecasting. research thus indirectly increasing production.
FUNCTIONS OF MARKETING 3. Marketing converts peoples' needs into
1. Risk bearing: anticipating business risks and profitable company opportunities, through the
taking appropriate measures to reduce their movement of industrial goods to rural
impact by taking the necessary insurance consumers by promotion and consumer
cover. education.

2. Financing: This covers the provision of 4. Marketing is a creative employer because

funds throughout the period of production to all the numerous activities performed therein
the point of selling through loans and credit are possible employment avenues.
facilities. 5. The excercise improves the standard of
3. Storage/Warehousing: This makes it living by making goods produced in one area
possible for goods to be produced ahead of available in another area.
demand so that they can be available when 6. Marketing creates market for goods and
needed.
services.
7. It assists in the transfer of goods from the The planning and operations of the
producer to the consumers. organisation must be consumer oriented, i.e.,
having the consumers at the centre of the mind
8. Marketing informs the consumers about the while planning. It is assumed that consumers
availability of goods and services. are always right, i.e., consumer sovereignty.
9. It also ensures consumer satisfaction. A company adopts marketing concept when all
its efforts are directed towards meeting the
Types of Utility
needs and aspirations of the consumers.
1. Form Utility: Form utility is created by
changing the form of raw materials into MARKETING RESEARCH
finished goods, e.g. production in agriculture Market research is the study of consumers'
or manufacturing creates form utility. demand by a firm in order to assist it in
2. Place Utility: This is reflected in the expanding its output and the marketing of its
transportation of the product from the point of product. It is the systematic and objective
production to the final consumers. search for and the analysis of information to
guide managers in production and marketing.
3. Possession Utility: Possession utility is
reflected in the transfer of title and in MARKETING MIX
providing information about the product so Marketing mix is a collection of controllable
that the buyer may use or enjoy it to the best factors that can be used to influence the
advantage. behaviour of customers or consumers.
MARKETING SEGMENTATION Marketing mix is a combination of
controllable variables such as, product, price,
Market segmentation is the process of dividing
a total market into market groups, consisting distribution place and promotion which spells
of people who have relatively similar product out the marketers' strategy to satisfy the needs
need. The market will be subdivided into of the consumers and to increase the sales of
the goods. The concept of marketing mix was
homogeneous subsets of customers where any
subset may be selected as a target market to be popularised by Neil Bordon, and Mc Carthy
reached with a distinct mix. uses a useful mnemonic: "the four Ps" to
denote the four elements of the mix.
Market segmentation is the division of a
market into identifiable sub markets for the ELEMENTS OF MARKETING MIX
purpose of reaching target customers with the 1. PRODUCT MIX: This is the
most appropriate marketing mix. It enables the merchandise/goods and services offered for
seller to make appropriate set of product mix, sale. A product may be defined a bundle of
quality, price are advertisement. physical and psychological satisfaction that a
buyer receives from purchase, e.g. sugar. It
MARKETING CONCEPT
can be an idea service or goods.
Marketing concept is the idea or belief that
consumers/customers should be treated as Product mix is therefore concerned with
'Kings'. The interest and desires of developing the right product for the target
consumers/customers must be taken into market. The crux of the matter is to develop
consideration in bringing out products or any something which will satisfy the consumers'
business activities. The basic idea behind needs. Marketing mix determines the product
marketing concept is consumer orientation. line, assortment differential, branding,
labelling and packaging, product additions, products can be distributed through a limited
modifications and deletions, durability, quality number of outlets.
and style variation.
4. PROMOTION MIX: Promotion mix deals
2. PRICE MIX: Price is the money with the communication aspect. The purpose is
consideration for goods and services, i.e., the to make the goods and services known to
exchange value, whereas price mix is the prospective customers, i.e., creation of
placing of price on a particular product that awareness. It stimulates market interest in the
will suit the customers and fetch higher product by determining the relative
revenue to the manufacturer. The components contributions to be made by advertising,
of price mix are discounts, margins, freights, personal selling and sales promotion. Other
payments, credit terms, allowances, mark up, components are choosing advertising message,
setting base price. media and managing the sales force.

Basic Pricing Policies Forms of Promotion Mix

i. Market Penetration: This is a strategy in 1. PERSONAL SELLING: It involves the

which the price of the product is set relatively direct personal contact of sellers with the
low in order to gain instant dominance of the potential buyers with view to making sales. It
market. Low prices are set in order to can also be referred to as the face-to-face
penetrate the market, to gain a major market meeting of the salesmen with the potential
share within a short time. Market penetration buyers in their houses, offices or market place,
pricing policy is good for new products. e.g. door-to-door selling. It is good for
industrial goods or specialised goods.
ii. Market Skimming: This is a strategy of
setting the price relatively high to appeal to the Importance of Personal Selling
more affluent segment of the market. High
prices are set in order to make as much profit a. It encourages the spot purchase and orders
as possible in the short run. The skimmer can b. It makes personal contact between buyer
start with high price and then lowers it as and seller possible thus facilitates
competition increases. Others includes: immediate feedback
c. Best for selling technical goods as it
i. Target pricing policy makes use of demonstration on the uses
ii. Product line pricing d. Used for introducing new product to the
iii. Variable pricing market
iv. Bid pricing e. Suitable for sale of custom made,
v. Pricing with market leader perishable and expensive goods
vi. Pricing above the market f. It affords the marketer opportunity of
explaining the qualities and usefulness of
3. PLACE MIX: Place mix is concerned with the products to consumers
the distribution of goods and services to the g. The product can be modified to suit the
consumers at the required place. The personal needs of the consumers
components are selecting and managing the
middlemen, choice of channel, establishment Disadvantages
of a logistic system of storing, handling,
transporting and channel strategy. All i. Lack of financial resources
distribution decisions must be made to be ii. Geographically scattered market
consistent with other aspects of the marketing iii. Inadequate skilled salesman
programme for the product, e.g. high quality
2. SALES PROMOTION: Sales promotion ii. It dramatises a company and its
can be defined as any activity that is used to products or services.
stimulate sales of a product. It is a special iii. It secures a favourable public image
promotion technique designed to encourage for the firm.
brand patronage. Sales promotion may be iv. Creates awareness for a company and
directed at customers in the form of consumer its products or services.
promotion or to middlemen as trade promotion.
It usually lasts for a period of time. Forms of Publicity

Reasons for the Use of Sales Promotion i. Photographs

ii. Feature stories
i. To encourage slow-selling lines. iii. News conference
ii. To create dealers' interest and iv. Work visits
encourage stocking v. Press release or news items
iii. To encourage more frequent use of a
product 5. PUBLIC RELATIONS: This is a
iv. To stimulate off peak period sales deliberate but sustained effort by a firm to
v. To introduce a new product establish good image for the organisation in
vi. To boost sales in a particular the of its numerous public and by so eye doing
geographical area create goodwill and favourable trading
vii. To offset price competition (business) environment for the company and
its products or services.
Forms of Sales Promotion
Public relations is the maintenance of a
1. Consumer Promotions: The following are favourable relationship between an
examples of consumer promotions: organisation and the general public.

a. Free Sample Distribution Public relations can also be defined as the

b. Special Price Sales activities of a corporation in building and
c. Premium Offer maintaining sound and productive relations
d. Competitions with special publics such as customers,
e. Trade fairs shareholders and with the public at large, so as
to adapt itself to its environment and interpret
2. Trade Promotions itself to the society.
a. Free goods In a summary, public relations is the image
b. Special discounts building done by an organisation to give the
c. Co-operative adverts public favourable impression about its aims
D. Sales competition for sales staff and policies.
3. PUBLICITY: Publicity may be defined as Importance of Public Relations
news about products or companies, appearing
in the form of editorial material without cost to i. Public relations ensures the
the sponsor in the press, on radio or television maintenance of a favourable
etc. Large departmental stores use publicity for relationship between an organisation
fashion related lines. and its publics.
ii. It helps in maintaining good personal
Uses of Publicity relations with the employees.
i. Publicity accords credibility to a iii. Public relations helps to increase the
company. goodwill of a company.
 iv. One of the aims is to advertise the Branding is a general term covering brand
products of the organisation. names, designs, trademarks, symbols which
v. It helps to build the image of a may be used to distinguish one firm's product
company or organisation. from that of another. Branding is the act of
giving a distinctive label or name to a product.
Media/Methods of Public relations
The brand name may be registered as a trade
a. Feature articles: These consist of literature mark, thus protecting it from competitors. The
and publications about a firm's product. main aim of branding is to distinguish one
b. Gifts/Free samples: Public relations manufacturer's product from similar product of
activities can take the form of gifts other manufacturers
distributed to members of the public. The
gifts can include biro, pens, rulers etc. Arguments (Reasons) for Branding a
c. Trade fairs: They are like exhibitions Product
where the goods are displayed in such a
way as to appeal to the emotions of the i. Branding encourages standardised
buyers. pricing.
d. Exhibitions: They are organised by ii. It facilitates self-selection.
individual firms in selected public places iii. It ensures easy recognition of product.
like hotels, schools, etc for the display of iv. Brand loyalty may give a producer
their goods. greater control over the market.
e. Sponsored programmes: A company can v. Branding is useful for introducing
sponsor programmes to boost its image. new products.
f. Discharging social responsibilities: These vi. It prevents the adulteration of the
involve providing the community with branded product.
such needs as bridges, roads, hospital, vii. Branding leads to a more readily
schools, etc. acceptance of a product by middlemen.
g. Cinemas: The image of an organisation viii. It allows the producer to enjoy some
can be built through the use of special form of monopoly.
films to arouse customer's interest. ix. Branding is an assurance that the
h. Seminars/Conferences: Seminars can be quality of the product will be
organised to boost the image of a company. maintained.
x. It makes market segmentation easier
6. PRODUCT DIFFERENTIATION as different brands of similar products
may be developed to meet the needs of
Product differentiation can be defined as any specific categories of people.
means by which a producer attempts to xi. Branding helps to differentiate
distinguish his product from similar products products.
made by rival producers. It is the practice by xii. It informs the customers about the
which a company offers its product in unique existence of a product.
colours, different brands and packaging in
order to make it look different from that of Arguements Against Branding
other products. They hope to establish in
customer's minds that their products are i. The cost of branding may be
superior and preferable to competing brands. prohibitive.
ii. It is disadvantageous to the retailer in
7. BRANDING that he will have to stock many
varieties of the same product in order
to please all his customers.
 iii. Too many brands may confuse iii. Buyers are compelled to rely on the
customers. information stated on the package.
iv. It creates false buying on the part of iv. Actual inspection of the goods is not
the consumers. possible unless the packaging is to be
destroyed.
8. PACKAGING v. End users often litter the environment
Packaging involves the development of a with wrappers and empty cans.
container and a graphic design for a product. A EXERCISES
package can be a vital part of a product. It can
make the product more versatile, safer or 1. The activities of a company designed to
easier to use. Packaging influences consumers' stimulate consumers by giving them Samples,
attitudes which in turn affects their purchasing premiums or conducting contests are referred
decision. to as (a)consumer protection (b) markating
mix (c)sales promotion (d)marketing concept
Reasons Why Manufacturers Prepackage (e)advertising (WAEC 1989, Q33)
their Goods
2. Which of the following is not a component
i. The middlemen are relieved of the of a company's marketing mix? A. Production
burden of having to prepackage the planning and price structure B. Promotional
goods. plan C. Distribution plan D. Economic plan E.
ii. False measuring and weighing by Public relations plan (WAEC 1989, Q56; 1992,
unscrupulous retailers are minimised Q72)
where producers have prepackaged
their goods. 3. An important marketing concept is that all
iii. Branding and labelling are possible company planning and operations should be?
with packaged goods. A. profit-oriented B. company-oriented C.
iv. It protects the products as they move organization-oriented D. dividend-oriented E.
from the producers to sellers and to customer-oriented (WAEC 1989, Q57)
the final users.
v. Since prepackaged goods are 4. The essence of marketing is (a) exchange
standardised, it facilitates self service, (b)sales (c) trade (d)research (e)profit (WAEC
retailing and mail order businesses. 1989, Q89)
vi. It makes advertising easy. 5. Which of the following is a form of sales
vii. There is possibility of recycling the promotion? A. Promotion through radio B.
package. Advertising by television C. Distributing
viii. It makes for easy handling. printed sales literature D. Offering free
ix. For corrosive products, prepackaging samples to customers E. Advertising by
protects both buyers and sellers from posters (WAEC 1990, Q50)
any harm.
6. Efforts geared towards establishing and
Disadvantages of Prepackaging maintaining good image for a company is
i. Prepackaging makes the product to be termed? A.human relations B. professional
more expensive and the cost is borne relations C. public relations D. trade relations
by the consumers. E. personnel relations (WAEC 1990, Q16)
ii. Information on prepackaged goods 7. The main purpose of branding is to? A.
may be deceitful to buyers. increase the quantity of goods demanded B.
differentiate goods from other similar goods
made by other producers C. increase the 15. Which of the following refers to sales
selling price of goods D. enhance turnover of promotion? (a)Non-personal presentation of a
goods E. introduce the product to the product (b)offering free samples of products (c)
customers (WAEC 1990, Q37) Providing information about a company and
its products (d)direct contact with the ultimate
8. Which of the following is an aspect of buyer (e)gathering information about a product
marketing concept A. product differentiation B. (WAEC 1991, Q22)
sales orientation C. consumer orientation D.
price differentiation E. Mass demand (WAEC 16. Which of the following involves gathering
1990, 71; 2015 Q29) and analysing information about demand,
consumers wants and new products? A. Sales
9. A study to discover consumers preferences promotion B. Market research C. Personal
and needs is called? A. marketing B. consumer selling D. After-sales service E. Physical
orientation C. market research D. marketing distribution (WAEC 1991, Q32)
mix E. market demand (WAEC 1990, Q72)
17. Which of the following is a function of
10. The concept of marketing as a process marketing? (a)manufacturing (b)quality
which begins and ends with the needs and control (c)book-keeping (d)distribution
wants of the consumer rather than those of the (d)extraction (WAEC 1991, Q61)
organization is called? A. caveat venditor B.
consumer orientation C. consumer association 18. The marketing concept which begins and
D. consumer protection E. caveat emptor ends with satisiying the needs and wants of the
(WAEC 1990, Q90) consumer is called (a)Caveat Venditor
(b)consumer orientation (c)consumer
11. Which of the following is not an element association (d)consumer protection (e)Cavent
of the marketing mix? A. Product B. Pricing C. emptor (WAEC 1991, Q91)
Promotion D. Merchandising E. Distribution
(WAEC 1990, 99; 1993 Q38) 19. Which of the following has the main
objective to differentiate between similar
12. Which of the following deals worth the products from different manufacturers? A.
problems Involved in the selling of a particular Branding B. Wrapping C. Packaging D. Mark
product? (a)Market research (b) market up E. Display (WAEC 1992, Q12)
segmentation (c)market sharing (d)Marketing
research (e) Merchandising (WAEC 1991, 20. The System of collecting information with
Q12) a view to determining the extent of demand for
a product is known as (a)advertising
13. Activities aimed at creating an image for (b)marketing research (c)marketing
an organization are known as (a)advertising (d)marketing Segmentation (e)communication
(b)market research (c)public relation (WAEC 1992, Q54)
(d)exhibition (e)mass marketing (WAEC 1991,
Q17) 21. Which of the following is not a basic
utility created by marketing? A. Time B.
14. The interplay of such variables as product, Ownership C. Place D. Possession E. Form
price, distribution and promotion is known as? (WAEC 1992, Q74)
A. the distribution mix B. market
segmentation C. the market mix D. the 22. The essence of marketing concepts is that
marketing concept E.produce mix (WAEC all company planning, operations and other
1991, Q21) activities should be? A. consumer- oriented B.
dividend - oriented C. profit - oriented D.
product- oriented E. company - oriented 31. Which of the following is not a method
(WAEC 1992, Q79) employed by a firm to promote public
relations? (a)Bill boards (b)features article
23. The giving of free samples to stimulate (c)Public Campaign (d)free gifts and samples
consumers' demand for a company's product is (e)Donations and scholarships awards (WAEC
called (a) advertising (b)consumer protection 1995, Q60)
(c)marketing research (d)marketing concept
(e)sales promotion (WAEC 1992, Q88) 32. Collecting information on the taste of
consumers and the extent of demand for a
24. Which of the following is form of sales product is A. market research B. market
promotion? (a) advertising through radio segmentation C. marketing mix D. marketing
(b)Advertising by television (c) Distributing concept (WAEC 1995, Q62; 2012 12)
printed sales literature (d)Offering free
samples to Customers (e)Advertising by 33. The face to face contact between sellers
posters (WAEC 1993, Q36) and buyers with the aim of selling a product is
known as (a)personal Selling (b)Customer Co-
25. The performance of business activities that ordination (c)promotion (d)advertising
directs the flow of goods and services from the (e)public relations (WAEC 1996, Q84)
producer to the consumer is? A. marketing B.
merchandising C. transportation D. production 34. Which of the following is the main tool of
E. marketing mix (WAEC 1993, Q37) mass selling A. public relations B. personal
selling C. Consumer research D. Customer
26. One advantage of personal selling is the orientation E. Advertising (WAEC 1996, Q85)
(a)low cost (b)immediate feedback (c)appeal
to many people at a time (d)Self Service 35. Which of the following are functions of
(e)speedy market coverage (WAEC 1993, Q88; marketing? (a) Buying, financing, selling and
1996, Q61; 1998 Q96) transporting (b)sorting, grading, managing and
storage (c)Risk-bearing, storage, production
27. Which of the following is not a marketing and promotion (d)Organizing, risk-bearing
function (a)packaging (b)branding transporting and Storage (e)Production,
(c)advertising (d)accounting (e)pricing promotion, distribution and pricing (WAEC
(WAEC 1994, Q19) 1996, Q100)
28. Plaas as a component of the marketing mix 36. Which of the following is the basic
is the same as (a)market centre (b)central principle of marketing concept? (a)Seller-
location (c)distribution (d)communication oriented (b)Product-oriented (c)Consumer-
(e)warehouse (WAEC 1994, Q83) oriented (d)manufacturer oriented (e)Product
29. Which of the following is not a tool for oriented (WAEC 1997, Q31)
sale promotion A. publicity B. exhibition C. 37. Which of the following is not true of
competition D. free samples E. Advertising branding? (a)facilitates identification of goods
(WAEC 1994, Q89; 2017 Q41) (b)leads to increased Sales and deeper loyalty
30. A firm that emphasizes the satisfaction of (c)makes market segmentation easier
the consumers is applying the principles of (d)Encourages pilfering (e)facilitates
(a)consumerism (b) selling concept advertising (WAEC 1997, Q51)
(c)marketing mix (d) marketing concept 38. Which of the following monitors people's
(e)salesmanship (WAEC 1995, Q57; 1996, opinion about a firm and takes measures to
Q67) correct adverse impressions? (a)Public
Relations (b)Advertising (c)Sales promotion
(d) Exhibitions (e)Trade fairs (WAEC 1997, 46. Direct selling by a producer to a consumer
Q64) is possible when the A. goods have to be made
on demand B. manufacturer has a good
39. Which of the following mostly serves as a knowlegde of the market C. customer buys in
useful promotional device for consumer goods? small quantities D. goods are fashionable
A.Trade mark B. Labelling C. Standardization (WAEC 1999, Q34)
D. Grading E. Packaging (WAEC 1997, Q65)
47. The task of grouping consumers according
40. Business activities that direct the flow of to their buying habits is known as market A.
goods and Services from the producer to the diversification B. development C. expansion D.
consumer is (a) promotion (b)advertsing segmentation (WAEC 1999, Q35)
(c)selling (d)marketing (e)transportation
(WAEC 1997, Q69) Use the diagram below to answer questions
48 and 49 (WAEC 1999, Q45&46)
41. Which of the following is not performed
by marketing? (a)Provision of revenue
(b)Provision of employment (c)Export
promotion (d) Enlargement of the market
(e)Changing the nature of marketable goods
(WAEC 1997, Q71)

42. Which of the following describes the

marketing mix? A. Distribution, production
48. From the diagram, the distribution of
policy, promotion, pricing policy B. Product
goods to the consumers would be considered
planning, development , market research, price
under A. place B. price C. promotion D.
C. Product, Price, place, development D.
product
Communication, advertising, pricing,
promotion E. Advertising, pricing, 49. The above diagram which shows
development, communication (WAEC 1998, consumes' needs as the focus of attention
Q10) illustrates the meaning of A. market
segmentation B. marketing concept C. market
43. Business activities responsible for
research D. sales orientation
identfying, anticipating and satisfying
customers' requirements profitably are called 50. The marketing activity that stimulate
(a)advertising (b)public relations (c)marketing immediate demand for a product is? A. sales
(d)sales promotion (e)sales management promotion B. pubilicity C. consumer relations
(WAEC 1998, Q41) D. personnel selling (WAEC 2000, Q37)
44. Which of the following is a form of public 51. Branding is a tool for? A. competitive
relations ? (a) Feature articles (b)window advertising B. consumerism C. marketing
display (c)Catalogue (d)transportation and research D. pricing policy (WAEC 2000, Q39)
delivery services (e)Personal selling (WAEC
1998, Q43) 52. The deliberate and sustained efforts to
maintain a good iamgr of a company is known
45. When a firm sets a low price for new as? A. personal relaxations B. public relations
product, this is said to be A. market swimming C. professional relations D. industrial relations
B. competitive pricing C. penetration pricing (WAEC 2000, Q42)
D. loss leader pricing E. target pricing (WAEC
1998, Q44)
53. Branding is an aspect of marketing mix promotion B. advertising C. public relations D.
associated with? A. price B. product C. place consumer protection (WAEC 2004, Q36)
D. distribution (WAEC 2001, Q6)
63. The concern of a marketing manager
54. Which of the following is a customer whose company has adopted the marketing
Service? (a)Delivery (b)Merchandizing mix concept is to? A. recruit more salesmen B.
(c)Branding (d)Market research (WAEC 2002, make maximum profit C. identify and satisfy
Q41) customers needs D. maintain the company's
share of the market (WAEC 2004, Q44; 2018
55. The grading of products to satisfy different Q50)
buyers is referred to as? A. product mix B.
product differentiation C. product concept D. 64. Which of the following would be
product line (WAEC 2002, Q43) necessary before the introduction of a new
product? A. Product differentiation B. Target
56. Which of the following does not belong to marketing C. Market research D. Market
the group? A. Posters B. Window display C. segmentation (WAEC 2005, Q40)
Free samples D. Hoarding of goods (WAEC
2003,Q40) 65. Which of the following is not a favorable
condition under which personal selling can be
57. A retailer sells his products at "Buy-two- practiced? A. When advertising entails
take three". The sales promotion method relatively high costs B. When the market is
referred to is (a)free Sample (b)gift concentrated C. When the market is dispersed
(c)premium (d)trade discount (WAEC 2003, D. When personal touch is needed (WAEC
Q41) 2008, Q49)
58. It is often said that "the consumer is 66. Establishing and maintaining mutual
always right" This describes the doctrine of? A. adresing understanding between an
consumer movement B. consumer sovereignty organization and its customers is known as
C. caveat emptor D. consensus ad idem (a)marketing concept (b)advertising (c)public
(WAEC 2003, Q44) relations (d)sales promotion (WAEC 2009,
59. Activities undertaken to create awareness Q15)
for a product by giving out samples premium 67. The practice of selling the product below
or conducting contest are known a? A. the cost price to attract customers to a shop is
marketing mix B. marketing concept C. known as A. hedging B. loss leader C.
consumerism D. sales promotion (WAEC skimming D. under-invoicing (WAEC 2010,
2003, Q44) Q41)
60. Marketing skimming is an example of? A. 68. The essence of adopting marketing concept
market penetration B. sales promotion C. by a firm is the recognition that goods and
pricing policy D. advertising (WAEC 2003, services have no values unless they are A.
Q45, JAMB 2009) desirable to customers B. company oriented C.
61. Any activity aimed at creating more beautifully packaged D. profit oriented
markets for a product is A. packaging B. (WAEC 2011, Q49)
branding C. promotion D. merchandising 69. The target of all marketing activities is the
(WAEC 2004, Q35) A. consumer B. middleman C. producer D.
62. Activities aimed at boosting the image of distributor (WAEC 2014 Q22)
an organization are regarded as A. sales
70. Good Customer service practice on when busy (c)patience towards ill-mannered
requires (a)charging high prices so as to make customers (d)promoting hard working
profit (b)hanging up customers phone calls employees (WAEC 2019, Q34)
THEORY

1. What is marketing? (WAEC 1990, Q5a; 1991 Q8a)

__________________________________________________________________________________
__________________________________________________

2. What is marketing concept (WAEC 1990, Q9)

__________________________________________________________________________________
__________________________________________________

b. Explain the four elements of marketing mix

i. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

ii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iv. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

3. Distinguish between marketing and selling (WAEC 1991, Q8)

__________________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________________________

b. Explain five functions of marketing

i. ___________________________________________________________________________
_____________________________________________

ii. ___________________________________________________________________________
_____________________________________________

iii. ___________________________________________________________________________
______________________________________________

iv. ___________________________________________________________________________
______________________________________________
 v. ___________________________________________________________________________
_______________________________________________

4. What is personal selling (WAEC 1992, Q5)

__________________________________________________________________________________
_________________________________________________

b. Explain five ways in which personal selling is important to a firm

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

v. ___________________________________________________________________________

5. What is public relations? (WAEC 1993, Q8)

__________________________________________________________________________________
____________________________________________________________________

b. State and explain any five methods a firm can use to promote its public relations

i. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

ii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iv. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

v. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

6. Describe five reasons why a manufacturer may brand his product (WAEC 1995, Q9a)

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________
 v. ___________________________________________________________________________

7. Explain branding and give two suitable examples (WAEC 1999, Q5)
__________________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________

b. In which five ways does branding affects the consumers

i. ___________________________________________________________________________
_____________________________________________

ii. ___________________________________________________________________________
________________________________________________

iii. ___________________________________________________________________________
_______________________________________________

iv. ___________________________________________________________________________
_______________________________________________

v. ___________________________________________________________________________
________________________________________________

8. Give six reasons why manufacturers pre-package their products (WAEC 2000, Q4)

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

v. ___________________________________________________________________________

vi. ___________________________________________________________________________

b. State four disadvantages of pre-packaging

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

9. Explain the following (WAEC 2000, Q10)

a. Marketing concept
__________________________________________________________________________________
_______________________________________________________
b. Marketing mix
__________________________________________________________________________________
______________________________________________________

c. Market segmentation
__________________________________________________________________________________
_____________________________________________________

d. Product differentiation
__________________________________________________________________________________
___________________________________________________

10. Differentiate between branding and packaging (WAEC 2007, Q4b)

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

11. List and explain four factors to be considered in segmenting a market (WAEC 2013, Q8b)

i. ___________________________________________________________________________
_________________________________________________________

ii. ___________________________________________________________________________
_________________________________________________________

iii. ___________________________________________________________________________
_________________________________________________________

iv. ___________________________________________________________________________
_________________________________________________________

12. Jones Ltd, a textile manufacturer has been advised to use sales promotion to stimulate sales. List
and explain four promotional tools Jones Ltd could use (WAEC 2018, Q5b)

i. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

ii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iv. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

13. Emeka has been a sales representative for three years but has never met his target.
(a) State five reasons that could have accounted for his inability to meet his target.

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

v. ___________________________________________________________________________

(b) Explain five promotional tools he could use to stimulate sales of his company's products

i. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

ii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iv. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

v. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________
 WEEK 2

ADVERTISING

Objectives: At the end of the lesson, the 5. It Promotes the Image of the Firm:
students should be able to; Advertising builds corporate image for a
company.
a. Define advertising
b. Discuss the roles of advertising 6. It Increases the Firm's Turnover:
c. Explain types of advertising Advertising facilitates sales for: firm, and as a
d. Discuss advertising media result the turnover and profit of a business
e. State the merits and demerits of each may enhanced.
medium
7. Development of Large Markets Advertising
CONTENT creates large market segment which leads to
the development of larger markets.
Meaning of Advertising
8. Provision of Technical Information About a
Advertising can be defined as any paid form of Product: Advertising provides information that
non-personal communication which is directed are needed by the consumers. Such
to the customers or target audience through information as quality, price changes and
various media in order to present and promote special offers are provided by advertising.
products, services and ideas. It is a branch of
commerce which is used to create awareness 9. It Helps to Improve the Quality of Goods:
for a particular product and it must be paid for. Research can be embarked upon to improve
quality of products in order to outplay
Advertising informs, educates and persuades competitors, i.e., healthy competition can help
people to buy the advertised goods and to improve the quality of products.
services.
10. To Create Brand Loyalty: The demand of
ROLES/FUNCTIONS OF ADVERTISING the customers can be maintained by constantly
1. To Introduce New Product: One of the roles arousing their interest on a particular product
of advertising is to inform customers about the and this will ultimately create brand danau
existence of new products in the market, i.e., loyalty.
creation of awareness. TYPES OF ADVERTISING
2. To Persuade Customers to Buy: Advertising 1. INFORMATIVE ADVERTISING: This
helps in arousing the customers' interest and is a kind of advertising which is aimed at
by so persuades them to buy the product doing disseminating information that will let
3. Creation of Demand: Advertising stimulates consumers know what goods and services are
demand by constantly reminding potential available. Informative advertising informs the
consumers about the availability of the product public about the existence of a product. It also
in the market. assists the customers to choose between
alternatives on offer. It supplies information
4. To Educate the People on the Uses of a which are useful to the consumers by calling
Product: It educates consumers on the usage of their attention to a particular product. It also
the product and the benefits to be derived. gives information about the benefits and uses
of a product.
Informative advertising is good for introducing or targeted at a particular audience or group,
new products or job vacancies. e.g. youths, schools and hospitals.

2. PERSUASIVE ADVERTISING: This is a Indirect Advertising: Indirect advertising is

type of advertising which tries to persuade directed to the totality or generality of the
customers to buy a particular brand of a consuming public. It is not aimed at providing
product as being different from other brands. information to a section or a group but to
Persuasive advertising, which is emotional in advertise goods and services consumed by all
nature, is used to induce or arouse consumers' categories of people, e.g. advertisement on
interest in order to persuade them to buy a bread, salt and sugar.
particular product. It sometimes lays emphasis
on the distinctive characteristics of a product FACTORS INFLUENCING BUYING
and appeals to people to buy and use a DECISIONS
particular product, e.g. medicine and 1. Packaging
cosmetics.
2. Performance of the product
3. COMPETITIVE ADVERTISING: This is
a type of advertising which is aimed at 3. Service facilities available
persuading customers to buy one brand of
product in preference to another brand by 4. Channels of distribution and location
another producer. It tries to woo customers to
5. Availability of goods and services
consume a product at the expense of another.
Competitive advertising is good for products 6. Opinion of others
with close substitutes and it is associated with
clear cut competition. It emphasises on the fact 7. Credit facilities
that a product is far better than another in
8. Advertising
terms of quality, e.g. 7up and Coke.
9. Sales promotions which offer special
4. MASS AND SPECIFIC ADVERTISING:
This is a type of advertising in which 10. incentives 10. Branding and the quality of
manufacturers of similar products or same the product
commodity come together to jointly advertise
their products to the consuming public. They 11. Price to the ultimate buyer
will not lay emphasis on or mention a
ADVERTISING MEDIA
particular product brand. The major reason is
to reduce the cost of advertising. Specific Advertising media are means through which
advertising provides information specially on information concerning goods and services are
some lines of goods or a particular brand conveyed to the audience, target market or the
which is unique in nature. general public. The various advertising media
available to advertisers are:
METHODS OF ADVERTISING
1. The press, (newspapers, magazines/journals
Direct Advertising: Direct advertising is a
and books)
method of advertising which is aimed at
providing information to a section, target 2. Television
market segment or group of people with
relatively similar needs. The market will be 3. Radio
segmented and advertising will be directed to
4. Cinema
5. Hoarding (Billboards) iii. Magazines and journals have low
frequency.
6. Window display iv. They lack immediacy.
7. Catalogues v. Their flexibility is limited.

8. Exhibitions and Trade fairs 2. TELEVISION ADVERTISING

9. Free samples Television is a medium of advertising which is

audio-visual (oral and visual) attracting the
10. Direct mail advertising largest audience. It provides certain features
like sound, movement and colour. Television
11. Handbills/fliers is ideal for advertising products where action
is involved or a demonstration is to be made.
12. Others are bell ringing, car stickers, fliers,
Television advertising is very effective.
handbills, neon signs, T shirts, caps, sign-posts,
posters, etc. Advantages of Television Advertising
1. THE PRESS: The press (newspapers, i. Television has large audience reach.
magazines / journals and books) as advertising ii. In this kind of advertising, there is
media appeal to a general audience because of more sensory stimulation as it gives
the extent of circulation which is usually live and direct display.
throughout a country and beyond. It provides iii. It brings high prestige.
suitable means of advertising. They include iv. The true form and colour of the
magazine, journals, newspapers, books product can be easily seen.
v. It is ideal for the demonstration of
Advantages of Advertising in the Print
method of usage.
Media (Press)
vi. Understanding of advertisement is
i. They appeal to general audience as simple and quick for viewers.
well as special groups. vii. Television advertising makes it
ii. They have wider coverage. possible to see and hear information
iii. Pictures of the products are displayed about the product at the same time.
in fine colour reproduction.
Disadvantages of Television Advertising
iv. They can be stored for many days or
even years, hence have relatively long i. It is the most expensive medium of
life. advertising.
v. They provide opportunity for daily ii. There may be wasted coverage.
and continuous advertising. iii. Impulse buying may be misleading.
vi. Print media can be read as many times iv. Only people with television can be
as possible. aware of the product advertised.
vii. The print media provide opportunity v. When there is power cut,
for multiple readership. advertisement cannot be watched.
vi. Photo tricks and exaggeration
Disadvantages of Advertising in the Print
employed about a product can mislead
Media (Press)
the viewer.
i. Print media appeal to only the literate vii. There is no time to convey a lot of
in the society. information
ii. They are expensive because of the viii. It is prone to censorship
high cost of advertising.
3. RADIO ADVERTISING Advantages of Cinema Advertising

Radio is a medium of advertising which is oral i. Cinema makes it possible to see and
or verbal and has the widest reach of all the hear information about the product at
media in Nigeria. Radio signals (messages) are the same time.
received virtually in all rural and urban areas ii. Advertisement on cinema is more
in Nigeria. sensitive and captivating.
iii. Since youths constitute the audience,
Advantages of Radio Advertising advertisement can be directed to a
target group.
i. It is a very cheap means of
advertisement. iv. The advertisement appears in
ii. It offers good target market selectivity; distinctive colours.
it is possible to select the required v. The benefit of large screen with
target market by sponsoring a suitable magnified images make the advertised
programme. message more real.
iii. It has widest reception and is widely Disadvantages of Cinema Advertising
available.
iv. Advertising can be made in local i. There is low audience reach since
languages for the benefit of many people do not attend cinema
uneducated people. house.
v. It has relatively low cost, when ii. When there is a cut in power supply,
gmcompared with other media like the advertisement cannot be watched.
To press and television. iii. Photo tricks and exaggerations about a
vi. It is very flexible; it has the ability to product can also mislead the viewers.
change message quickly. iv. They are not common in rural areas

Disadvantages of Radio Advertising 5. HOARDING(BILLBOARD)

ADVERTISING
i. Pictures of the product cannot be seen.
ii. It gives short message which may be Hoarding is a form of outdoor advertising in
too brief to have any effect on the which large poster painted bulletins that use
consumer. bright and flashing light and colours are
iii. Radio advertising has only audio mounted on special structures called hoarding
effect as it appeals to the ears only. or billboards located at suitable places by the
iv. There is inadequate data on listening road, market place, roundabout and motor
habits which can affect targeting parks,
negatively.
v. There is lack of excitement. Advantages of Hoarding

4. CINEMA ADVERTISING i. It provides very large colourful

display of a product.
Cinema advertising employs theatrical films ii. It has good reach and frequency.
which is a unique medium of advertising. iii. It is good for creating awareness.
Theadvertisements are presented before the iv. There is geographical selectivity.
showing of the film and at intervals. v. It is effective for illiterates as large
colourful pictures can convey the
message.

Disadvantages of Hoarding
 i. There is limit to the message. 8. EXHIBITION AND TRADE FAIR
ii. There are legal restrictions. ADVERTISING
iii. It is expensive.
iv. It is not possible to get reliable data on Exhibition and trade fairs are avenues for
the number of people reached by the displaying goods to promote sales. They can
advertisement. be held annually and they normally attract
national and international exhibitors. Different
6. WINDOW DISPLAY ADVERTISING countries and firms display their goods in their
stand, e.g. Lagos International Trade Fair.
Window display is a form of advertising in They attract a very large audience and enable
which goods are carefully arranged and the product to be displayed, operated, tested,
displayed on window shelves in a shop. The dismantled and adjusted.
goods displayed behind transparent glasses
attract customers which may lead to impulse Advantages of Exhibition and Trade Fair
buying. Advertising

Advantages of Window Display Advertising i. It is good for industrial marketing.

ii. It enables the product to displayed,
i. It is appealing and persuasive. tested and operated.
ii. It can bring about impulse buying, iii. It attracts a very large audience.
iv. It attracts international and local
Disadvantages of Window Display
producers and customers.
Advertising

i. It is expensive. Disadvantages of Exhibition and Trade Fair

ii. It has a limited reach. Advertising

i. It is held occasionally.
7. CATALOGUE ADVERTISING
ii. It is very expensive.
A catalogue is in the form of a booklet which
contains coloured photographs, features, 9. FREE SAMPLE ADVERTISING
descriptions and prices of goods produced by a Free sample is a medium of advertising in
particular company. It is a medium of which the manufacturer distributes samples of
advertising as it can be sent on request to its product to members of the public so as to
buyers who will have to choose from different test the products. This is the most effective
goods presented. The catalogue can be posted way of advertising a new product, but it is
or delivered by hand to individual customers. very expensive.
Advantages of Catalogue Advertising 10. DIRECT MAIL ADVERTISING
i. The colouration can appeal to the Direct mail advertising consists of any advert
customers. sent through the mail to specific people. It
ii. It enables customers to know about includes cards, letters, circulars and booklets.
such products. Direct mail advertising becomes handy when
iii. It is persuasive in nature. the advertisement is to be directed to a limited
number of people falling into certain defined
Disadvantages of Catalogue Advertising
category. The cheapest medium is often the
i. It is limited in circulation. circular distributed by post. The people to
ii. It is expensive to produce. receive the message are selected and
communicated to directly.
Advantages of Direct Mail Advertising 6. Flexibility of a Medium: This refers to the
number of different things the advertiser can
i. More information are conveyed. do using the same medium, e.g. direct mail
ii. It is very effective as there is always allows the enclosure of money, coupons and
higher percentage of response. pencils.
iii. The needs of consumers can be
conceived and personalised. 7. Nature of the Goods: The nature of the
iv. It is the most flexible of all media of products will determine the choice of media to
advertising be used for advertising.

Disadvantages of Direct Mall Advertising 8. Geographical Selectivity: This is the ability

of the medium to reach out to homes in
i. It is relatively expensive. specific geographical areas such as villages
ii. It is sometimes viewed negatively. and hamlets.
iii. There may be delay in delivery.
iv. There may be the problem of 9. The media used by competitors
selectivity.
MERITS/ADVANTAGES OF
11. HANDBILL/FLIER ADVERTISING ADVERTISING

Handbills are printed leaflets containing 1. It Helps in Creating Job Opportunities

information about a product which are
distributed to different people at various 2. It Provides Information About Features
locations like market place, on the road etc in 3. Reduction of Cost: The cost per unit of
order to draw their attention to the product or goods will be reduced thereby consumers will
services. This is good for introducing new pay less.
products.
4. Increase in Profit: Advertising increases the
FACTORS AFFECTING THE CHOICE profitability of a organisation.
OF MEDIA
5. Higher Revenue: The advertising firms also
1. Coverage or extent of circulation gain in terms of revenue.
2. Frequency: This refers to the number of
6. Provision of Information about Existence of
times the same viewer or reader may be Goods: Advertising provides information
exposed to the same advert. about the existence of a product.
3. Communication Effectiveness: This refers
7. Improvement in Quality of Goods: It helps
to the ability of a medium to deliver the impact
in improving the quality of goods as a result of
as desired by the advertiser to the target healthy competition.
market.
8..Increase in Production: Advertising can lead
4. The Target Audience: The type and social to increase in production as more goods will
group to which an advertisement is directed be demanded.
and their purchasing power must be taken into
consideration. 9. Creation of Awareness: It helps in creating
awareness for a product.
5. Cost: The cost of using a particular medium
will determine the one to be chosen by the
advertiser.
DEMERITS/DISADVANTAGES OF Sale (d) door to door sale (e) neon Signs
ADVERTISING ( WAEC 1989, Q96).

1. Some advertisement may be false and 5. Which of the following advertising media
misleading as they make exaggerated claims. combines the advantages of Sound and Motion?
(a) Radio (b) Neon signs (c) Press (d)
2. Leads to Monopoly: Heavy advertising by a Hoarding (e) Television ( WAEC 1990, Q14).
dominant supplier may restrict competition by
preventing new entries to the market. 6. Which of the following is not an advantage
of advertising? (a) gives information about
3. High Cost: The high cost of advertising is projects (b) increases sales (c) increases
passed on to the consumer in form of higher Production (d) improves the quality of
prices. products (e) introduces new products. ( WAEC
4. Irrational Appeal: Advertising appeals 1990, Q91).
mainly to the irrational motives in people. 7. The Main criticism of advertising is that it
5. Buyers can Buy Unnecessarily: Advertising (a) Leads to increase in the size of the market
(b) leads to war of brands (c) Increases the
encourages buyers to make unnecessary
price of products (d) decreases employment
purchases.
Opportunities (e) uses bad language (WAEC
6. Encourages too many Brand 1991, Q29).

7. It is wasteful in terms of resources 8. The form of Advertising which aims at

winning the market for One Particular brand is
8. It can lead to unhealthy competition known as (a) Informative advertisement (b)
generic advertisement (c) persuasive
9. It interferes with the free choice of
advertisement (d) Competitive advertisement
consumers
(e) direct advertisement (WAEC 1991, Q98)
EXERCISES
9. Any paid form of non-personal presentation
1. Branding is a good example of of Goods and services by an Identified
(a)informative advertising (b)marketing mix Sponsor is Known as (a) Merchandising (b)
(c)persuasive advertising (d)consumerism Advertising (c) Publicity (d) public relation (e)
(e)competitive advertising (WAEC 1989, Q14) warrant (WAEC 1992, Q38).

2. One of the disadvantages of advertising is 10. Which of the following requires the use of
that it (a) could be misleading through false indirect Advertising? (a) Baby Milk (b)
claims (b) decrease sales (c) makes new Smoker's toothpaste (c) Detergent (d)
products known (d) teaches the consumer the Textbooks (e) Soccer boots (WAEC 1992,
use of advertised products (e) creates Q81).
employment ( WAEC 1989, Q32.
11. Branding is a Good example of (a)
3. Information About new goods is passed on Competitive advertising (b) Marketing
to the buyers through (a) wholesale trade (b) research (c) generic advertising (d)
retail trade (c) market research (d) advertising Consumerism (e) Marketing Concept (WAEC
(e) the manufacturer ( WAEC 1989, Q55). 1992, Q96).

4. All Advertising Campaigns for Consumer 12. The cost of advertising a product is
Goods must pay attention to (a) Cinema ultimately borne by the (a) Manufacturer (b)
advertising (b) radio advertising (c) Point Of
Wholesaler (c) agent (d) consumer (e) Retailer persuasive advertising (c) mass selling (d)
(WAEC 1993, Q32). informative advertising (WAEC 1999, Q47).

13. Which of the following is used to stimulate 21. Branding is a tool for (a) Competitive
sales? (a) Finance (b) Insurance (c) advertising (b) consumerism (c) marketing
Warehousing (d) Advertising (e) Banking research (d) pricing policy (WAEC 2000,
(WAEC 1993, Q33). Q39).

14. Which of the following is not an aim of 22. Firms wishing to defend established
advertising? (a) Drive away smaller firms (b) products as well as launch new ones will make
Satisfy Consumers (c) help Firms compete use of (a) franchising (b) product
with others (d) Make one's Product Known (e) differentiation (c) Branding (d) Advertising.
Increase Sales (WAEC 1994, Q20). (WAEC 2000, Q40).

15. Any paid form of Non-personal 23. Which of the following does not belong to
presentation of ideas, goods or services but an the group (a) posters (b) window display (c)
identified sponsor is known as (a) market free samples (d) Hoarding of goods (WAEC
research (b) market orientation (c) open 2003, Q40).
market operations (d) advertising (e) Sales
promotion (WAEC 1994, Q57). 24. When all producers in an industry combine
to advertise their products instead of each firm
16. Which if the following is most suitable for advertising its own brand, this is referred to as
demonstrating the features of a new product? (a) mass advertising (b) Competitive
(a) Radio (b) Newspaper (c) Loudspeaker (d) advertising (c) persuasive advertising (d)
Poster (e) Television (WAEC 1994, Q73). direct advertising (WAEC 2000, Q42).

17. Which of the following is a function of 25. When consumers are unaware of the
advertising (a) Stimulation of demand (b) quality of a product, the best advertising
Lead to market segmentation (c) Maintenance technique to use is (a) informative advertising
of quality (d) Determining selling price (e) (b) Competitive advertising (c) direct
Provision of Market Information (WAEC 1997, advertising (d) indirect Advertising (WAEC
Q66). 2004, Q37).

18. The main reason for advertising an already 26. The choice of medium used in advertising
existing line of Product is to (a) develop is not determined by the (a) cost of a particular
Customers awareness (b) Entertain Customers medium (b) age group to which the medium
(c) Introduce a price deal (d) build brand appeals (c) nationality of people using the
recognition (e) retain old customer (WAEC medium (d) number of people reached by the
1997, Q67). medium. (WAEC 2004, Q46).

19. A manufacturer of machinery who wants 27. People who are against advertising claim
to reduce cost of promotion can use (a) that it (a) Widens the market for consumer
Samples (b) Public relations techniques (c) goods (b) Encourages consumers to buy what
show rooms (d) catalogues (WAEC 1999, they do not need (c) Emphasis the good
Q33). feature of a particular product (d) Promotes
Competition among firms (WAEC 2005, Q41)
20 . A picture which indicates that success in
life can only be achieved through the use of 28. A practice where producers of the same
products an example of (a) market research (b) product come together to advertise is known as
(a) mass advertising (b) institutional
advertising (c) direct advertising (d) goods have access to information pertaining
persuasive advertising ( WAEC 2006, Q50) to goods ( a) Insurance ( b) Advertising (c)
Warehousing (d) Banking ( WAEC 2013,Q47)
29. Which of the following advertising media
combines the advantages of both sight and 38. An advertising campaign designed to sell
sound? (a) Television (b) radio (c) neon Signs ones own products at the expense of other
(d) bill board. ( WAEC 2008, Q 32) brand is (a) competitive (b) persuasive (c)
direct (d) informative ( WAEC 2014,Q50).
30. One of the advantage of advertising to the
consumer is that (a) brings confusion on the 39. Lack of permanent record for the
choice of goods (b) increase demand (c) necessary receiver is a disadvantage of (a)
persuades the public to buy What they need Television (b) direct mail (c) Catalogue (d)
(d) decrease the cost of goods ( WAEC 2008, Magazine (WAEC 2016, Q10)
Q33)
40. One disadvantage of advertising is that it
31. The cost of advertising is ultimately borne (a) Could be misleading (b) decreases sales (c)
by the (a) Manufacturer (b) consumer (c) reduces profits (d) causes over stocking
Wholesaler (d) retailers ( WAEC 2009, Q 50). (WAEC 2016, Q23)

32. Which of the following is a more 41. The advertising medium that makes only
suitable medium for advertising a new tractor audio impressions is (a) Cinema (b) radio (c)
(a) radio (poster (c) neon Signs (d) trade fair. television (d) Hoarding (WAEC 2017, Q29).
( WAEC 2010, Q 22).
42. Which of the following activities aim at
33. Which of the following is an advertising Increasing sales? (a) insurance (b) Banking (c)
function (a) packaging (b) persuading (c) Warehousing (d) Advertising (WAEC 2017,
grading (d) segmenting ( WAEC 2010, Q 23) Q31).

34. The publication of facts on a firm's product 43. Informative advertising is aimed at (a)
is called (a) Merchandising (b) Exhibitions (c) giving advice on the use of a product (b)
features articles (d) mass advertising ( WAEC influencing customers to buy a product (c)
2010, Q 43) giving gifts to attract Customers (d)
encouraging specific customers to buy a
35. Advertising efforts geared towards a product (WAEC 2018, Q26).
particular audience is known as (a) mass
advertising (b) direct advertisement (c) 44. An Advertising method whose objectives
persuasive advertising (d) indirect Advertising. is to convince customers to buy a product is (a)
( WAEC 2013, Q2013è Informative advertisement (b) Persuasive
advertisement (c) Competitive advertisement
36. Trade fairs and exhibitions are media of (a) (d) mass advertisement (WAEC 2018, Q34).
sales Promoter (b) customers services ( c)
market segmentation. (d) advertising ( WAEC 45. Which of the following activities
2013. increases demand for goods and services? (a)
Advertising (b) Banking (c) Transportation (d)
Trade fairs and exhibitions are media of Warehousing (WAEC 2019, Q32).
(a)sales promotion (b)customers serviced c)
marketing Segmentation(d)advertising. ( 2013 46. Which of the following types of
Q26) advertising is aimed at taking away existing
buyers from their suppliers? (a) Negative (b)
37. The axillary to trade which ensures that
people have access to access pertaining to
Competitive (c) Informative (d) Mass ( WAEC 2019, Q36).
THEORY

1. Give any five advantages of advertising (WAEC 1989, Q5)

i. ___________________________________________________________________________
___________________________________________________

ii. ___________________________________________________________________________
____________________________________________________

iii. ___________________________________________________________________________
___________________________________________________

iv. ___________________________________________________________________________
___________________________________________________

v. ___________________________________________________________________________
_________________________________________________

b. What are five distinctive merits of television as a medium of advertising

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

v. ___________________________________________________________________________

2. Why do companies continue to advertise in spite of criticisms leveled against it (WAEC 1992, Q3b)

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

v. ___________________________________________________________________________

3. Explain five roles of advertising (WAEC 1995, Q7a)

i. ___________________________________________________________________________
________________________________________

ii. ___________________________________________________________________________
________________________________________

iii. ___________________________________________________________________________
________________________________________
 iv. ___________________________________________________________________________
________________________________________

v. ___________________________________________________________________________
________________________________________

4. What is advertising medium? (WAEC 1997, Q5)

__________________________________________________________________________________
_______________________________________________________________

b. State any five factors to be considered before choosing a particular advertising medium

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

v. ___________________________________________________________________________

c. Give eight examples of advertising

i. ________________________________

ii. ________________________________

iii. ________________________________

iv. ________________________________

v. ________________________________

vi. ________________________________

vii. ________________________________

viii. ________________________________

5. Write short notes on the following (WAEC 2001, Q3)

a. Persuasive advertising
__________________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________

b. Informative advertising
__________________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________

c. Competitive advertising
__________________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________

d. Mass advertising
__________________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________

e. Direct advertising
__________________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________

6. State two advantages of using each of the following media of advertising (WAEC 2004, Q10)

a. Newspaper

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

b. Radio

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

c. Television

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

d. Posters

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

e. Direct mail

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

7. List and explain six media available to an advertiser of goods and services (WAEC 2009, Q3b)

i. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

ii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________
 iii. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

iv. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

v. ___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

8. Give four arguments for and three argument against advertising (WAEC 2003, Q2a)

Argument for

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

Argument against

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________
 WEEK 3

BUSINESS DOCUMENTS AND MEANS OF PAYMENT

Objectives: At the end of the lesson, the prospective buyer may request for the price
students should be able to; lists of the goods.

a. Define business documents 3. Catalogue and Price list: Catalogue is a

b. Identify and describe the uses of each pictorial presentation of goods and services
document available for sale, especially in mail order
c. Identify and discuss the various means of business. It is a medium of advertising. Price
payments list shows the current prices of the various
products of a firm. It guides the customer in
CONTENT making a choice. It also an be used as a
quotation or a reply to Enquiry
Meaning of Business Documents

Business documents are official papers which 4. Quotation: A quotation is used to let a
facilitates the act of buying and selling of potential customer know the cost of goods or
goods. All business transactions must be services before they decide to purchase them.
backed by relevant documents in order to When a seller sends a quotation, it commits
show authenticity as well as for record them to a certain price. Quotation is a
purposes statement prepared by a supplier of goods or
services for a particular order which shows the
Types of Business Documents current price and terms of trade .

1. Trade Journals: Trade journals are 5. Order: An order is a statement sent by the
publications which serve as sources of buyer to the seller, stating the full description
information to the buyer as it contains articles and quantity of goods required. The order will
on matters of interest to people in a particular show the goods required, the quantity, type,
trade. Trade journals contain information conditions of payment, purchases and method
about price, terms of payment, terms of sales of delivery.
and delivery. The description of the goods will
also be shown in the journal. 6. Invoice: This is a commercial document
used in business transaction, giving a complete
2. Letter of Enquiry: This is written by the or comprehensive summary of a transaction
buyer to the producer or supplier asking for involving sales or purchases of goods. It
information about certain goods which are for serves as a receipt. It is a document showing
sale. The letter will enquire about the terms of details of the goods bought. Most invoice
sale, payment, delivery and other relevant bears the term E & OE (Errors and Omissions
information before the buyer decides on one Expected). It is sent by the seller to the buyer
particular producer and what to buy. The to provide him the following information:
i. List of goods bought and description. vi. Total amount expected from buyer after
discount.
ii. Quantity of each purchase and price.
vii. Discount granted.
iii. Charges for packing.
viii. Name and address of suppliers.
iv. Means of transport.
7. Delivery Note: A document accompanying
v. Terms of delivery and payment. a shipment of goods that lists the description,
and quantity of the goods delivered. A copy of the payments, cash discounts, details of the
the delivery note, signed by the buyer or credit note, debit note and the amount due. It
consignee, is returned to the seller or gives the customer an idea to know his
consignor as a proof of delivery. It is used as financial standing at a given period. It shows
an evidence of delivery. It used when goods the balance due for payment
are transported by the wholesaler's means of
transport 13. A proforma invoice: This is an invoice
that is usually submitted before goods are
8. Advice Note: This is a document sent by a despatched as a polite request for payment to
supplier to a customer to inform him that be made in advance when a seller is not
goods he ordered have been dispatched. It willing to sell on credit and to show the goods.
usually gives details such as the quantity of If the goods are retained, it becomes an
goods and how they have been sent. It is used ordinary invoice. It is used when goods are
to show the mode of transport used. sent on approval to a customer

9. Consignment Note: Consignment note is a Differences between ordinary invoice and

document supplied to a carrier when goods are pro-forma invoice
to be sent from one place to another. It gives
details of the goods, number of packages, i. Ordinary invoice is used as an evidence of
weight, name and address of the sender and credit sale while proforma is used when the
consignee. The document after being seller did not want to sell on credit.
completed by the sender is handed over to the ii. Ordinary invoice is always sent with the
carrier and signed by the consignee on the goods while proforma invoice can be sent
delivery of the goods, thus providing proof of without the goods.
delivery.
iii. Ordinary invoice is not used to provide
10. Credit Note: Is a document sent by the information but to confirm sales while
seller to the buyer to correct an overcharge. It
proforma invoice can be used when the buyer
arises because some goods which had been needs information from the seller on terms of
charged were returned as damaged or not as sales.
ordered. Credit nite is sent to a customer for
reduction in the amount owed to him. To avoid 14. Receipt: Is a document which
confusion, it is usually printed in red. It is sent acknowledges that payment has been received
when the seller has decided to give an from the buyer. When the customer receives
allowance to the buyer. the goods and he sends the money to the seller
who in turn issues the receipt as evidence of
11. Debit note: It is prepared by the seller and payment. It must be written and signed by the
sent to the buyer who has been undercharged seller and sent to the buyer, stating the actual
on an invoice. It is an additional invoice sent amount received. Receipt is used for auditing
to the buyer to pay the short amount. It purposes. It shows the actual amount received
informs the buyer that his account is debited,
and who received it.
increasing the amount that he owes. It is used
when the invoice is not well priced. MEANS OF PAYMENT

12. Statement of account: It is sent by the There are various means of payment or
seller to the buyer showing the summary of the settlement for financial or business
transactions between the buyer and the seller transactions. These can be classified into ;
for a particular period of time. It shows the
amount of goods purchased, the returns made, 1. Legal Tender
2. Payments through bank 3. Bank Draft: Bank draft is a cheque drawn
on a bank. It is a safe means of payment. Draft
3. Means of payment provided by the post is a cheque drawn on a bank by itself or its
office agent. It is used by a debtor when his creditor
4. Businessmen means of payment is unwilling to accept a personal cheque. The
debtor pays the bank for it at the time of issue.
1. LEGAL TENDER: Legal tender is a form
of payment by which a creditor is compelled 4. Credit Transfer (Bank Giro): Credit transfer
by the law of a state to accept in settlement of is also a method of payment whereby a
customer's bank pays directly into the bank w
debt. This is referred to as cash and it is the
commonest means of payment. Coins and account of the creditor. He has ve already the
notes are legal tenders because they must be name, account number, address of the bank of
accepted by a creditor for debt settlement as the creditor. It can also be referred to as a
required by law. They include: payment made on instruction to a bank to
credit a creditor in the same or other bank.
a. Bank Notes: Bank notes are slip of papers or
currency notes issued by the banks. They have 5. Travellers Cheque: A travellers cheque is an
their origin in the receipts that goldsmiths gave order drawn on commercial bank which
for precious metals deposited with them. Bank travellers and businessmen can use as means
notes are in different denominations and are of payment in the settlement of debts. To
portable. In Nigeria for example, bank notes prevent misuse, they have to be signed in the
include: N5, N10, N20, N50, #100, #200, #500 presence of the bank clerk who issued them
and 1000. and countersigned when cashing it.

b. Coins: Coins are precious metallic currency 6. Certified Cheque: Certified cheque is a
made of silver. They can have a public stamp cheque which has been ratified by the bank on
placed on them and are always in different behalf of its customer to guarantee that the
cheque will be paid. It is also a means of
shapes. Coins are homogenous and over
indestructible. They are in different payment.
denominations, Examples are 10k, 25k and 7. Direct Debit: Direct debit is a transfer
50k in Nigeria. system in which a creditor by agreement with
the debtor gave instruction to the debtor's bank
2. PAYMENT THROUGH THE BANK
pay him a specified amount b debiting the
1. Cheque: Is an order written by the drawer to account of the debtor and crediting his own
a bank to pay on demand a specified sum of account. This is good for products in which
money to the person named in it as payee. It is quantity delivered are not constant.
portable. Cheques are demands on the bank by
the account holder to pay the stated amount. 3. MEANS OF PAYMENT PROVIDED BY
All institutions accept cheques in settlement of THE POST OFFICE
debts. 1. Postage Stamps: Postage stamp is a means
2. Standing Order: Is an order or instruction by of payment by which small sums can be sent
an account holder to the bank to pay a certain by post. Postage stamps are used in settlement
sum of money on his behalf at regular of small amount on items being purchased,
intervals to a named person or organisation, such as sending for samples. Post office
c.g. insurance premium. It can be paid weekly, commission for this service.
monthly or quarterly. 2. Postal Orders: Postal orders a are means of
payment provided by the post office for
transfer of small sums of money. Postal order EXERCISES
sind fixed denominations can be bought at post
offices. A commission known as poundage is 1. Which of the following is not necessary
charged on postal order purchased. The sender when ordering goods (a)trade journal (b)letter
fills the names of the person to be paid and can of enquiry (c)invoice (d)order form
only be cashed by him. It is not negotiable. (e)catalogue (WAEC 1989, Q79)

3. Money Orders: Money orders as a means of 2. Sending a pro-forma invoice to a potential

payment are issued for larger amount of customer is (a)an indication that the seller is
money than postal orders. Money orders are out of business (b) an indication of the seller's
issued out after completing a form at a post willingness to grant credit (c)a polite way of
office. It is good for a person without a current asking the customer to return the goods (d)an
account. Commission is also charged on the invitation to the buyer to buy on hire purchase
money order. (e)a polite way of refusing to sell on credit
(WAEC 1989, Q81; 1991 Q53; 2018, Q20)
4. Telegraphic Money Order: Telegraphic
money order is used when it is desired to remit 3. Which of the following document contains
a sum of money as fast as possible. The cost of the complete information on goods available
dispatching the money ordered by telegram in the wholesaler’s warehouse (a)the catalogue
will be charged to the sender. (b)order (c)consignment note (d)invoice
(e)delivery note (WAEC 1989, Q87)
5. Postal Giro: Postal giro is a means of
making monetary transfer through the post 4. If a retailer Mr. Aigbojie buys goods
office. All accounts are kept in such a way that manufactured by Adefila Limited from
debts can be settled by transfer from one wholesaler Mrs. Jamai, who will prepare the
account to another or through giro cheques. delivery note (a)Mr. Aigbojie (b)Adefila Ltd
Here, people open accounts with the post (c)Mrs. Jamai (d)Mr. Aogbojie and Adefila
office. Limited (e)Adefila Limited and Mrs. Jumai
(WAEC 1990, Q9)
4. BUSINESSMEN'S MEANS OF
PAYMENT 5. The purpose of issuing a credit note is to (a)
correct errors of overcharging (b)correct errors
1. Bill of Exchange: Bill of exchange is an of undercharging (c)write off bad debts
unconditional order in writing, addressed by (d)encourage immediate payment
the seller to the buyer, requesting the person to (e)encourage bulk buying (WAEC 1990, Q12)
whom it is addressed to pay on demand a
certain sum of money at a particular time. 6. Which of the following is sent as a reply to
an enquiry (a)tender (b)estimate (c)statement
2. I Owe You (IOU): IOU is a written (d)advice note (e)quotation (WAEC 1990,
acknowledgement or undertaking of an Q17)
outstanding debt. IOU is not a legal document.
It is a non-negotiable evidence of debt 7. If a seller discovers that he had
consisting of a written account. undercharged a buyer, which of the following
documents will he use to correct the error
3. Promissory Note: Promissory note is an (a)promissory note (b)a credit note (c)an
unconditional promise written and signed by a advice note (d)a debit note (e)a statement of
debtor to a creditor agreeing to pay on demand account (WAEC 1991, Q13)
a certain sum of money to the creditor at at
specified date 8. The use of catalogues with associated with
(a)hawkers (b)Road side traders (c)mobile
shops (d)chain stores (e)mail order business 16. Which of the following is used when
(WAEC 1991, Q79) goods are sent through a common carrier
(a)receipt (b)delivery note (c)pro-forma
9. A document which a retailer sent to the invoice (d)consignment note (e)advice note
wholesaler requesting him to supply certain (WAEC 1994, Q78; 1996 Q72; 2018 Q22)
items is called (a)letter of enquiry (b)a
catalogue (c)an invoice (d)an order (e)a tender 17. Another name for consignment note is
invoice (WAEC 1991, Q52) (a)quotation (b)debit note (c)credit note
(d)waybill (e)receipt (WAEC 1996, Q18)
10. Which of the following accompanies good
supplied and forms a receipt when signed by 18. For which of the following reasons will a
the consignee (a)invoice (b)order (c)delivery seller not issue credit note to a customer? If
note (d)requisition note (e)advice note (WAEC (a)goods are undercharged (b)goods are
1991, Q67) damaged (c)bottles are Returned (d)goods are
overcharged (e)fewer goods are returned
11. A document sent to a customer at regular (WAEC 1996, Q72)
intervals to enable him know his indebtedness
to supplier is known as (a)debit note 19. Statement of account is a (a)summary of
(b)invoice (c)statement (d)receipt goods sold a customer for a particular item
(e)consignment note (WAEC 1993, Q67) (b)note to inform the customer of an addition
to the business transaction (c)standard letter
12. Which of the following is not true of a sent to customer who have not settled their
delivery note? It (a)is sent as an anticipation of bills (d)statement of acceptance of credit
delivery (b)does not show the prices of the facilities to a customer (e)summary of a
goods (c)gives additional information about customer's transactions over a given period
the goods (d)shows the pictures of goods being (WAEC 1996, Q73)
delivered (e)is a demand for payment (WAEC
1993, Q68) 20. Which of the following is usually sent to
prospective buyer when the seller expects
13. A parcel of shoes valued at #2000 was payment of the good dispatched (a)pro-forma
invoiced at #200 only. Which of the following invoice (b)advice note (c)consignment note
would be used by the seller to correct this error? (d)statement of account (e)delivery note
(a) an invoice for #200 (b)a credit note for (WAEC 1997, Q44; 2009 Q46)
#1800 (c)a debit note for #1800 (d)a debit note
for #2000 (e)a credit note for #2200 (WAEC 21. A carton of spoons valued at $3000 was
1993, Q69) invoiced at #300 only. Which of the following
documents is used by the seller to correct the
14. Which of the following is sent when credit error (a)a credit note for #3300 (b)a Debit note
is not allowed (a)debit note (b)pro-forma for #3000 (c)a credit note for #2700 (d)an
invoice (c)credit note (d)statements (e)advice invoice for #300 (e)a debit note for $2700
note (WAEC 1994, Q22) (WAEC 1997, Q58)
15. Zaico Ltd invoiced goods valued at 22. The documents which gives the current
#80,000 to Victory Ltd for #8000. Which of price and terms of trade of a product is called
the following will Zaico Ltd send to Victory (a)letter of credit (b) invoice (c)an advice note
Ltd to correct the error (a) consignment note (d)a consignment note an (e)an order form
(b)credit note (c)advice note (d)debit note (WAEC 1997, Q92)
(e)statement (WAEC 1994, Q34)
23. A document issued to a buyer showing the
quantity description and prices of goods
bought is called (a)a catalogue (b)an invoice 32. A documents from a seller which corrects
(c)a price list (d)an order (e)an advice note an undercharge on a buyer's account is known
(WAEC 1998, Q9) as (a)proforma invoice (b)credit note (c)debit
note (d)statement of account (WAEC 2001,
24. A supplier who needs make additional Q26)
charges for goods delivered will send (a)a
debit note (b)a credit note (c)a consignment 33. Which of the following is my customers
note (d)an advice note (e)a delivery note who wish by know the price, quality and terms
(WAEC 1998, Q79) of sale of a product (a)quotation (b)letter of
enquiry (c)pro-forma invoice (d)advice note
25. Price list, catalogues and C.O.D are mainly (WAEC 2002, Q24)
used in operating (a)chain stores
(b)supermarket (c)department stores (d)mail- 34. Which of the following tell the customer
order business (e)Hypermarket (WAEC 1998, exactly what has been sold to him, the amount
Q89) due and any discount granted (a)advice note
(b)statement of (c)invoice (d)credit note
26. What is the purpose of debit note to (WAEC 2003, Q24)
(a)reduce the credit in the buyer's account
(b)reduce the debit charged to an invoice 35. Which of the following contains the
(c)compensate for damaged goods returned complete information on goods available for
(d)allow for a rebate (WAEC 1999, Q21) sale (a)invoice (b)delivery note
(c)consignment note (d)catalogue (WAEC
27. A consignment note is used to when 2003, Q29)
(a)goods are wrapped and labelled for easy
identification (b)goods are dispatched to 36. Which of the following is used to inform
agents through transporters (c)damaged goods the buyer that goods are on the way
are being returned (d)there is over invoicing (a)quotation (b)proforma invoice (c)advice
(WAEC 2000, Q12) note (d)despatch book (WAEC 2003, Q30)

28. Which of the following is not contained in 37. Which of the following is the sequence in
an advice note (a)type of goods (b)price of which the following documents are used
goods (c)date or despatch (d)means of (a)order, delivery note, debit note, invoice,
despatch (WAEC 2000, Q13) statement (b)order, advice note, debit note,
invoice, statement (c)order, statement, delivery
29. Which of the following is sent in reply to a note, invoice, debit note (d)order, delivery
letter of enquiry (a)quotation (b)order note, invoice, debit note, statement (WAEC
(c)consumer invoice (d)advice note (WAEC 2005, Q26)
2000, Q19)
38. The printing of catalogues is one of the
30. The abbreviated phrase E & O.E is usually costs associated with the operation of (a)tied
printed on (a)an invoice (b)a cheque (c)a shops (b)mobile shops (c)mail order shops
delivery note (d)a debit note (WAEC 2000, (d)department stores (WAEC 2006, Q5; 2008,
Q20) Q24)
31. Which of the following is most appropriate 39. Mr. Ojo buys a book from a bookseller and
for a "Cash with order" terms of sale pays in cash. The bookseller will issue him a
(a)proforma invoice (b)credit note (c)debit (a)debit note (b)credit note (c)voucher
note (d)consignment note (WAEC 2001, Q7) (d)receipt (WAEC 2007, Q21)
40. A grocier invoiced a carton of fish valued 44. Which of the following pieces of
at #2500 for #2000 only. To correct the error, information would be found in a typical debit
which of the following documents would be note (a)customer code (b)date of invoice
sent to the buyer (a)credit note for #500 (c)brief reason for the debit (d)E & O.E
(b)debit note for #500 (c)credit note for #2500 (WAEC 2011, Q44)
(d)debit note for #2500 (WAEC 2008, Q8)
45. Which of the following arrangement of
41. The main purpose of sending delivery documents is the correct sequence as used in
notes always is to (a)enable the goods to be the retail trade I. Quotation II. Enquiry III.
checked on arrival (b)enable the buyers to pay Order IV. Invoice (a)I, II, III and IV (b)II, I,
the correct delivery charges (c)ensure the safe III, IV (c)I, IV, III only (d)I, III, IV only
delivery of goods (d)prevent the goods from (WAEC 2012, Q42)
being stolen on transit (WAEC 2008, Q13)
46. Which of the following is contained in the
42. Which of the following is sent by a consignment note (a)name of the buyer
supplier who does not want to sell on credit (b)name of the seller (c)description of goods
(a)proforma invoice (b)quotation (c)consular (d)cost of goods (WAEC 2018, Q3)
invoice (d)debit note (WAEC 2009, Q3; 2013,
Q1)

43. Which of the following is used when

goods are sent through independent carriers
(a)delivery note (b)despatch note
(c)consignment note (d)advice note (WAEC
2009, Q12)

A. B and Sons limited

Aba, Nigeria
20th October, 1986
AVO Ire Youths Ltd,
27 Amadi Road,
Accra, Ghana.
Bought of Avo Ire Youths Ltd
Order No 131 Carriage paid
100 cartons of baby powder at #10 a carton #1,000.00
200 pairs of lady shoes at #15 a pair #3,000.00
#4,000.00
E & O. E
Terms 2½% one month
47. The above trade document is called (a)an 49. Which of following is not a means of
order (b)a standing order (c)a debit note (c)an making payments to a businessman (a)Bank
invoice (e)a catalogue (WAEC 1990, Q18) draft (b)cash (c)money order (d)cheque
(e)statements (WAEC 1990, Q55)
48. Status enquiry is necessary when (a)goods
are ordered from a mail order firm (b)money is 50. Parties to a bill of exchange that is
withdrawn from a fixed deposit account endorsed to a third party are the (a)drawer,
(c)granting credit to a new customer (d)goods payee, creditor (b)drawer, drawee and debtor
are produced according to specifications (c)payee, drawer, debtor (d)drawer, drawee,
(WAEC 1999, Q22) payee (e)creditor, debtor, drawer (WAEC
1992, Q49)
51. The most acceptable and convenient means 53. Which of the following is a means of
of payment in foreign trade is (a)letter of payment (a)I.O.U (b)Postal order
credit (b)bank draft (c)telegraphic Money (c)promissory note (d)C.I.F (WAEC 2011,
Order (d)promissory note (e)bill of exchange Q14)

52. Which of the following requires 54. Which of the following is used for making
acceptance before it is valid (a)promissory payment to many people in a single cheque
note (b)bill of exchange (c)letter of credit (a)debit transfer (b)certified cheque (c)bank
(d)cheque draft (d)credit transfer (WAEC 2015, Q38)

THEORY

1. Give two uses of each of the following documents (WAEC 2009, Q9)

a. price list

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

b. delivery note

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

c. consignment note

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

d. advice note

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

e. pro-forma invoice

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

2. State one use each of the following (WAEC 2006, Q10a)

a. letter of enquiry
__________________________________________________________________________________

b. invoice
__________________________________________________________________________________
c. advice note
__________________________________________________________________________________

d. credit note
__________________________________________________________________________________

e. statement of account
__________________________________________________________________________________

f. debit note
__________________________________________________________________________________

g. catalogue
__________________________________________________________________________________

3. Differentiate between cash receipt and invoice (WAEC 2007, Q4d)

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

4. State the difference between an ordinary invoice and a proforma invoice (WAEC 2003, Q1a)

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

5. State two distinguishing features between consular invoice and pro-forma invoice (WAEC 2013,
Q7d)

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

6. Define a bill of exchange (WAEC 1998, Q3)

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
_________

b. State six essential features of a bill of exchange

i. _________________________________________________________________________

ii. _________________________________________________________________________

iii. _________________________________________________________________________

iv. _________________________________________________________________________

v. _________________________________________________________________________

vi. _________________________________________________________________________
c. List the parties to a bill of exchange
__________________________________________________________________________________
__________________________________________________________________________________

7. List four means of payment in business (WAEC 2011, Q4a)

i. _________________________________________________________________________

ii. _________________________________________________________________________

iii. _________________________________________________________________________

iv. _________________________________________________________________________

8. Explain the following business terms (WAEC 2017, Q7)

a. Standing order
__________________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________

b. Bank Draft
__________________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________

c. Legal tender
__________________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________

d. Money Order
__________________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________

e. I.O.U
__________________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________

PROJECT; Write a note on negotiable instrument. Study the basics of computer (the students would
be evaluated on this topics)

1. Explain to Domingo five benefits of using computers in the conduct of his business
 WEEK 4

PRIVATISATION AND COMMERCIALIZATION

Objectives: At the end of the lesson, the 4. Autonomy of enterprises: It helps to provide
students should be able to; autonomy for the enterprises.

a. Explain the meaning of privatization 5. Removal of unproductive enterprises: They

and Commercialization also assist to remove or divest unproductive
b. Discuss the merits and demerits of enterprises in the economy.
privatization
c. Analyse the demerits and merits of ADVANTAGES OF
Commercialization COMMERCIALISATION AND
d. Define deregulation PRIVATISATION
e. Mention and explain the advantages 1. Reduction in public expenditure:
and disadvantages of deregulation Commercialisation and privatisation help in
CONTENT reducing public expenditure on enterprises that
are not viable.
COMMERCIALIZATION AND
PRIVATISATION 2. It promotes efficiency: Commercialisation
and privatisation do help to promote efficiency
Commercialisation is a policy geared towards in production.
making state-owned enterprises to become
more efficient and profit-oriented. The policy 3. Generation of more revenue: Both policies
makes it possible for public enterprises to equally help to boost the generation of revenue
become more viable and effective. for the government.

Privatisation on the other hand is a policy 4. Emergence of innovations: The existence of

designed to enable individuals and private or competition in the industries assists in the
corporate organisations take over the emergence of innovations
ownership and control of government 5. Better choice by consumers: Both policies
businesses such as public companies and do assist the consumers to have a wide range
corporations. of choice where there are abundant products.
REASONS FOR COMMERCIALISATION DISADVANTAGES OF
AND PRIVATISATION COMMERCIALISATION AND
1. Efficient management: Commercialisation PRIVATISATION
and privatisation help to develop a good and 1. Poor standard of living: Commercialisation
efficient management of enterprises. and privatisation lead to poor standard of
2. Participation of private individuals: They living of the people due to a shift in interest
also assist individuals to participate in from pure service delivery to profit
economic activities through ownership of maximisation.
enterprises. 2. High cost of products: These policies are
3. To generate more revenue: They assist the aimed at profit maximisation hence they are
government to generate more revenue. usually associated with high cost of products
or goods.
3. Reduction in employment: Many workers by the government. Hence, government may
are usually laid off when industries are decide to take over such enterprises, e.g.
commercialised or privatised. railway.

4. Uneven distribution of income: Income is 6. To Prevent Wasteful Competition: In order

often unevenly distributed as few individuals to prevent wasteful competition among
are now in control of the industries companies, government can come in and take
over ownership and management.
5. Loss of consumers' welfare scheme: Under
commercialisation and privatisation, 7. To Provide Uninterrupted Services:
consumers' welfare is not catered for. Government can take over an enterprise in
order to ensure constant and uninterrupted
NATIONALISATION supply of such products or services.
Nationalisation is a deliberate policy by which ADVANTAGES OF NATIONALISATION
government takes over the control and
ownership of private enterprises due to 1. Elimination of Wastes: Nationalisation
economic, political, social or strategic reasons. helps to prevent and eliminate wasteful
In other words, nationalisation is the process competition.
by which the government takes over the
ownership and management of an industry 2. Encouragement of Efficient Use of
from private control by bringing it under its Resources: It encourages more efficient use of
exclusive control. economic resources.

REASONS FOR NATIONALISATION 3. Protection of Strategic Industries: It helps to

protect and develop key strategic industries
1. For Strategic Reasons: Government can take which cannot be left in private hands
over the ownership and control of an
enterprise for strategic reasons like security, 4. Ensures Equitable Distribution of Resources:
defence and political consideration. It also ensures equitable distribution of
resources as well as correcting imbalances in
2. To Prevent Exploitation: Nationalisation of the means of production.
enterprises can take place in order to prevent
monopolistic exploitation of the citizens. 5. Elimination of Monopoly: Another
advantage is to eliminate monopoly by private
3. Political Reason: Break in diplomatic businessmen.
relations between two countries can
necessitate nationalisation. Political 6. Mobilisation of Capital: Large capital can
differences can encourage retaliatory measures be mobilised to ensure large scale investment.
being taken by two countries against each 7. Helps for Planning Purposes: It helps the
other. e.g. America and Iraq at the instance of government to influence and control various
the Gulf war. economic activities for planning purposes.
4. To Avoid Foreign Dominance of the 8. Employment Opportunities: It creates more
Economy: Government can also take over employment opportunities.
some companies in order to prevent
dominance of the economy by foreigners. 9. Helps to Check Exploitation:
Nationalisation of industry helps to check
5. Need for Large Capital: For an industry to exploitation by foreign businessmen.
perform effectively and efficiently, it may
need large capital which can only be provided
10. Ensures Steady Supply of Service: It confer monopoly power which can be used to
ensures the provision and steady supply of exploit the consumers, e.g. PHCN.
essential services.
4. Corruption and Mismanagement: Most
DISADVANTAGES OF nationalised industries are not efficiently
NATIONALISATION managed because of corruption and
mismanagement.
1. Prevention of Private Initiatives: Private
initiatives can be destroyed when government 5. Excessive Control may Hinder
takes over all industries. Development:

2. Low Productivity and Inefficiency: Lack of 6. It can Lead to Retaliation: Nationalisation

competition can encourage low productivity can lead to retaliation from other countries.
and this inefficiency.
7. Resources can be Misallocated: The
3. Consumers Can be Exploited: By resources of the country can be misallocated as
nationalising an enterprise, government may a result of political interference.
DIFFERENCES BETWEEN NATIONALISED INDUSTRY AND PUBLIC LIABILITY
COMPANY

Nationalised Company Public Liability Company

Ownership It is owned by the government It is owned by shareholders

Aim To provide essential services Profit making

Capital Provided by the government Provided by selling shares

Control Controlled by the board of directors Controlled by Board of Directors

appointed by the government elected by shareholders

Publication of Do not usually publish accounts Must publish their accounts

Accounts

INDIGENIZATION 1. Ensures Indigenous Participation:

Indigenization ensures greater participation of
Indigenization is the transfer of ownership and indigenes in the control and running of
control of business enterprises from foreigners business enterprises of their country.
to the indigenes. It is a policy designed to
ensure greater participation of indigenes in the 2. Development of Local Technology: It leads
ownership, control and management of to the development of local skills and
business enterprises. The major aim is to technology.
reduce foreign domination of the economy and
to ensure indigenous participation. 3. Acceleration of Industrial Development: It
Indigenization tries to stimulate indigenous leads to the promotion and acceleration of
entrepreneurship. industrial development.

ADVANTAGES OF INDIGENIZATION 4. Reduces Foreign Control of the Economy:

Indigenization can reduce foreign control and
domination of the nation's economy.
5. Leads to Local Retention of Profit: It leads industries may become more efficient in
to local retention of profits which otherwise deregulated economies
would have been taken to other countries as
capital flight. Deregulation in Nigeria refers to the doing
away with regulations that are concerned with
6. Ensures Self-reliance: Indigenization financial markets and trades from 1994 1998.
eliminates the problem of dependence on This is considered as an element of economic
foreign goods by ensuring self-reliance. reform programme aimed at improving the
overall economy through well spelt out ways.
7. Provision of Employment Opportunities
Deregulation is therefore the opposite of
DISADVANTAGES OF regulation which refers to the process of the
INDIGENIZATION government regulating certain activities.
1. Discouragement of Foreign Investment in a Deregulation also means removing
country government control from the operation,
2. It Can Lead to Disharmony between production, storage and distribution of goods
and handing them over to private sector.
Countries: Indigenization can lead to
disharmony among countries of the world as ADVANTAGES/BENEFITS OF
friendship will be discouraged. DEREGULATION
3. It can Lead to Capital Flight: Indigenization 1. Competition: Deregulation lowers barriers
can lead to capital flight as foreign investors to entry in a given industry. When more firms
will be forced to relocate to other countries. enter an industry, competitions increases and
4. Inexperience and Incompetence Can consumers have more choices for products and
services. Individual businesses tend to
Destroy the Business: As a result of
indigenization, business can be transferred to decrease prices, to achieve a more competitive
people who are not experienced and competent position in the market
enough to handle such business. This will 2. Cost savings: Deregulated industries
adversely affect the success of the business. provide cost savings to customers. By greatly
5. Rich People Can Hijack the Economy: Few reducing or eliminating tariffs, deregulation
rich people can use their financial wealth to can lower prices, company profits increase and
buy and take over all such businesses. cost savings can be passed on to customers.

3. Reduced Bureaucracy: Society can benefit

DEREGULATION
from a reduction of bureaucracy. Resources
Deregulation is the act or process of removing not spent on regulation can be channeled to
or reducing state regulations. It is the other programmes.
reduction or elimination of government power
in a particular industry, usually enacted to 4. Consolidation: Deregulation aids industry
consolidation for instance, a 1996 law
create more competition within the industry.
allowing out-of-state holding companies to
In other words, deregulation refers to a buy banks allowed strong banks to acquire
decrease in state or federal government weaker-performing banks.
oversight of industries and business. It is
characterised by repeal of laws that restrict 5. Generation of employment: Deregulation do
trade and competition. Through this process, bring private individuals to set up industries
which can generate employment
6. Steady supply of goods: Deregulation (e) to drive away foreigner investors (WAEC
ensure steady supply of goods to customers as 1991, Q27).
against government control of industries
5. In nationalised industries, losses are born by
7. Reduction in corruption: Deregulation do the (a) tax payers (b) shareholders (c)
reduce corruption as the industries are no debentures holders (d) ministers of industries
longer in the hands of government officials. (e) Board of Directors (WAEC 1991, Q69).

8. Removal of cheats in the system: 6. One of the objectives of the indigenisation

Deregulation helps to remove cheats from the programme of the federal Government Of
system e.g. smugglers are kick out of oil Nigeria is to (a) Encourage the use of local
smuggling. raw materials (b) maximise retention of profits
(c) make Nigerians Businessmen very rich (d)
DISADVANTAGES OF DEREGULATION Expel all foreigners from Nigeria (e) Promote
1. It could lead to consumer exploitation Foreign trade (WAEC 1992, Q69).

2. It may be difficult to create competition 7. Which of the following statement is not

true ? (a) Government does not nationalise
3. It may lead to poorer service Business owned by citizens(b) Government
nationalize foreign business (c) Government
EXERCISES does not give nationalised industries to private
owners(d) Government nationalises viable
1. Which of the following is the main aim of
industries(e) Public corporation are owned by
the Indigenization decree? To (a) Alleviate the
the government (WAEC 1993, Q24).
effects of inflation (b) eliminate foreigners
from Nigeria economy (c) remove all 8. Which of the following are advantages of
obstacles to commercial activities (d) allow indigenization? (I)The economy is controlled
Nigerians greater participation in commercial by the nationals (ii) entrepreneurial skill is
activities (e) Alleviate the effects of a developed (iii) Foreigners are encouraged to
depressed economy (WAEC 1989, Q58). invest in Nigeria (Iv) The Standard of living of
the indigenes is improved: (a) I and II Only (b)
2. One of the objectives of the indigenisation
I, II And III only (c) III And IV only (d) II and
programme of the federal Government of
Iv Only (e) I, II And IV only ( WAEC 1993,
Nigeria is to (a) Encourage the use of local
Q25)
raw materials (b) Expel all foreigners from
Nigeria (c) Make Nigerian Businessmen very 9. When an industry is nationalised,
rich (d) Maximizer local retention of profits (e) Ownership belongs to the (a) Shareholders (b)
Promote Foreign trade ( WAEC 1990, Q29). Government (c) tax payers (d) Indigenes (e)
foreigners (WAEC 1993, Q26).
3. The taking over by state of ownership and
control of certain business enterprises is 10. One of the main problems of
known as (a) Indigenization (b) nationalization nationalization is that (a) nationals may not
(c) Privatization (d) Commercialization (e) welcome the change of Ownership (b)
rationalization ( WAEC 1990, Q89). Foreigners will not be able to control the
economy (c) Repatriation of profit Increased
4. One of the reasons for Nationalization of
(d) There may be capital Flight (e) There will
industries is (a) for efficient management (b)
be adverse balance of payment (WAEC 1993,
to control corruption and repotism (c) to
Q27).
increase the number of shareholders (d) to
control the performance of strategic industries
11. The process of selling Government 18. When an industry formerly owned by
businesses to the public is known as (a) individuals is taken over by the government,
naturalization (b) nationalization (c) such an industry becomes (a) privatized (b)
Privatization (d) Commercialization (e) nationalised (c) Commercialized (d)
Indigenization ( WAEC 1993, Q28). indigenized (e) legalised ( WAEC 1998, Q61).

12. Which of the following is an objective of 19. The major aim of Indigenization is to (a)
Indigenization? To (a) Increase Foreign Standardise products (b) accelerate
Participation in Business (b) Attract Foreign Participation of citizens in business (c)
Capital (c) Help Nigerian Entrepreneurs Promote international Co- operation (d)
become monopolist (d) Help Citizens differentiate a country product from the others
Participate fully in the economy (e) distribute (e) discourage Foreign investments ( WAEC
income (WAEC 1994, Q26). 1998, Q62).

13. The process of taking over private business 20. The process by which the government
by government is known as (a) naturalisation takes over the ownership and control of and
(b) nationalisation (c) Privatization (d) existing private business (a) industrialization
Commercialisation (e) Indigenization (WAEC (b) Privatization ( c) nationalization (d)
1994, Q32). Commercialization (WAEC 2000, Q49).

14. The process of involving local 21. The taking over by government of
Businessmen in the ownership and control of enterprises formerly owned by private person
business that were formerly owned by is referred to as (a) privatisation (b)
Foreigners is called (a) nationalization (b) nationalization ( c) Commercialization (d)
Industrialisation (c) Indigenization (d) Indigenization (WAEC 2003, Q49).
Commercialization (e) Privatization (WAEC
1996, Q11). 22. Abuse of monopoly by industrialist could
lead to (a) privatisation (b)Commercialization
15. When the Government decides to run a (c) nationalization (d) Indigenization (WAEC
statutory Corporation as a Profit Oriented 2004, Q40).
enterprise, this is known as (a) nationalization
(b) Commercialization (c) Take-Over bid (d) 23. Which of the following is an objective of
Privatization (e) Indigenization ( WAEC 1996, Indigenization policy? To (a) prevent all
Q39). foreign interference in business (b) encourage
local participation (c) prevent smuggling (d)
16. Which of the following is not one of the encourage more production (WAEC 2004,
aims of Indigenization? To (a) Reduce the Q41).
remittance of profit abroad (b) increase the
control of the government over its economy (c) 25. Which of the following is an advantage of
expose the Indigenes to different business indigenization? (a) checks exploitation by
enterprises (d) discourage Foreign investors (e) citizens (b) business risks are shared (c)
encourage joint ventures among foreigners and fosters self reliance (d) leads to Monopoly of
Indigenes ( WAEC 1997, Q87). power (WAEC 2005,Q2)

17. When an industry is nationalised, 26. The process of taking over the
Ownership belongs to the (a) private investors management and control of a privately owned
(b) Indigenes (c) state (d) shareholders (e) business by government? (a) Indigenization (b)
foreigners (WAEC 1997, Q98). nationalization (c) participation (d)
Privatization (WAEC 2006, Q36)
27. Which of the following is not a reason for business is A. indigenisation B. privatisation
nationalization? (a) Encouraging Foreign C. deregulation D. commercialisation (WAEC
investors (b) Reducing the remittance of profit 2016, Q49)
abroad (c) Training local entrepreneurs (d)
Controlling the country's key industries 33. The purpose of commercialization is to? A.
(WAEC 2006,vQ40) encourage the participation of the private
sector B. make state-owned firms more
28. One disadvantage of Indigenization is that efficient C. encourage the flow of foreign
it (a) discourages Foreign control of the capital D. enable state-owned firms pay tax
economy (b) Encourages local retention of (WAEC 2018, Q47)
profits (c) Encourages the participation of
indigenes in economic development (d) 34. The difference between commercialization
Discourages Foreign investments (WAEC and privatization is that commercialized
2008, Q45) businesses A. are government-owned while
privatized businesses are owned by individuals
29. The takeover by government of Sanking B. are non-profit making ventures while
and Sons Ltd is referred to as (a)privatisation privatized businesses are profit oriented C. can
(b)Indigenization (c)Commercialization sell shares while privatized businesses cannot
(d)nationalisation (WAEC 2008, Q46) D. employs more workers than privatized
businesses (WAEC 2019, Q50)
30. The taking over of privately owned
businesses by the government is called A. 35. The restructuring of a government
indigenization B. commercialization C. enterprise with the intention of making it profit
nationalization D. privatization (WAEC 2009, oriented is A. privatization B. nationalization
Q10) C. commercialization D. deregulation (WAEC)

31. When the government gives up its

ownership and control of a business to
individuals, this is known as A. nationalization
B. commercialization C. privatization D.
indigenization (WAEC 2018, Q47)

32. The process of converting a non-profit

making organisation to a profit-making
THEORY

1. Distinguish between nationalization and Indigenization (WAEC 1990, Q4; 2009, Q9a)

__________________________________________________________________________________
__________________________________________________________________________________
_______________________________________________________

b. State any five advantages of nationalization and two objectives of indigenization

Advantages

i. ___________________________________________________________________________
______________________________________________

ii. ___________________________________________________________________________
______________________________________________
 iii. ___________________________________________________________________________
______________________________________________

iv. ___________________________________________________________________________
______________________________________________

v. ___________________________________________________________________________
______________________________________________

Objectives

i. ___________________________________________________________________________

ii. __________________________________________________________________________

2. Give five advantages and three disadvantages of indigenization (WAEC 1995, Q10b; 2009 Q9b)

Advantages

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

v. ___________________________________________________________________________

Disadvantages

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

3. What is Indigenization (WAEC 2003, Q10a)

__________________________________________________________________________________
__________________________________________________

4. What is the difference between privatisation and nationalisation (WAEC 2004, Q5)
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

b. Explain four reasons why a country may choose to privatize state-owned enterprises

i. ___________________________________________________________________________
_________________________________________________________

ii. ___________________________________________________________________________
_________________________________________________________
 iii. ___________________________________________________________________________
_________________________________________________________

iv. ___________________________________________________________________________
_________________________________________________________

5. Explain three reasons why government nationalises some business (WAEC 2005, Q9b)

i. ___________________________________________________________________________
__________________________________________________

ii. ___________________________________________________________________________
__________________________________________________

iii. ___________________________________________________________________________
___________________________________________________

6. State six reasons why a country would indiginize some industries (WAEC 2012, Q9b)

i. ___________________________________________________________________________
_______________________________________________________

ii. ___________________________________________________________________________
________________________________________________________

iii. ___________________________________________________________________________
________________________________________________________

iv. ___________________________________________________________________________
________________________________________________________

v. ___________________________________________________________________________
_________________________________________________________

vi. ___________________________________________________________________________
__________________________________________________________

7. Define the following terms (WAEC 2013 Q9)

a. Nationalization
__________________________________________________________________________________
__________________________________________________

b. Indigenization
__________________________________________________________________________________
__________________________________________________

c. Commercialization
__________________________________________________________________________________
__________________________________________________
d. Privatisation
__________________________________________________________________________________
__________________________________________________

8. State four advantages and four disadvantages of privatisation (WAEC 2017, Q1b)

Advantages

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. __________________________________________________________________________

Disadvantages

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________
 WEEK 5

ECONOMIC GROUPINGS IN WEST AFRICA

Objectives: At the end of the lesson, the

students should be able to;

a. Trace the history of ECOWAS

and Niger Basin Commission
b. State the objectives of ECOWAS
and Niger Basin Commission
c. Discuss the achievements of
ECOWAS and Niger Basin
Commission
d. Discuss the problem of
ECOWAS and Niger Basin ECONOMIC COMMUNITY OF WEST
Commission AFRICAN STATES(ECOWAS)

CONTENT Economic Community of West African States

(ECOWAS) formed purposely to promote co
Meaning of Economic Groupings operation, development and economic
integration of the West African sub-region.
Economic grouping may be defined as the
coming together of different countries with a A concrete step towards the establishment of
common economic interest and goals with a ECOWAS was taken with the agreement in
view to promoting economic cooperation and May, 1975 to set up an economic grouping in
development among member states, protecting the West African sub-region. The idea was
and promoting the economic and business mooted by the then Nigeria head of state and
interest of members as well as stimulating the the Togolese president. The aim is not only for
socio-economic cum cultural development and the expansion of trade within the sub-region
cooperation among its members. but also for co operation in other areas, e.g.
communication and culture.
In the West African sub-region, some of the
economic groupings in existence include the On 28 May, 1975, the representatives of
Economic Community of West African States, fifteen West African nations signed the treaty
the Lake Chad Basin Commission, Niger establishing ECOWAS with headquarters in
Basin Commission among others. International Lagos, Nigeria while the seat of operation of
groupings also exist. the fund is in Lome, Togo. Later, the
economic community admitted Cape Verde as
the 16th member. Meanwhile, Mauritania
opted out of ECOWAS in the year 2000.

ECOWAS Member Countries:

1. Nigeria 5. Cape Verde

2. Senegal 6. Burkina Faso

3. Ghana 7. Cote d'Ivoire

4. Niger Republic 8. Benin Republic

9. Togo 13.. The Gambia

10. Liberia 14. Sierra Leone

11. Guinea Bisau 15. Guinea.

12. Mali

AIMS AND OBJECTIVES OF ECOWAS 14. To set up military body that will maintain
peace in the sub region, e.g. ECOMOG
1. To expand trade among countries by
widening the markets in the region Problems of ECOWAS

2. Improvement of transportation: To improve 1. Fear of Domination: The members are

the transport and communi-cation system, i.e., usually suspicious and afraid of each other
infrastructural facilities. because of uneven development in the region.

3. To ensure free movement of factors of 2. Different Currencies: The existence of

production to member states by removing different currencies in the sub region has
every obstacle greatly reduced trading activities among
member states, for instance, the transfer of
4. To promote economic co-operation and capital is difficult.
develop-ment in the fields of industry,
agriculture, science, etc 3. Political and Ideological Differences: The
countries in the region are divided along
5. To maintain economic and political stability political ideologies. Some of these countries
in the sub region. practise capitalism while others adopt socialist
6. To harmonise the agricultural policies and economy.
to promote joint projects in the area of 4. Political Instability: Constant changes in
research government as a result of coups has led to
7. To foster closer relations among member political instability in the sub region, and this
countries has adversely affected ECOWAS.

8. To contribute to the industrial development: 5..Colonial Ties: The region is polarised into
To contribute to the industrial development of French speaking and English speaking blocs
West Africa and Africa as a whole. according to their former colonial linkage, and
this has weakened the unity of the community.
9. To harmonise monetary policies among its
members 6. Irregular Financial Contribution of
Members: Another problem of ECOWAS is
10. To establish a common fund for the problem of fund; member countries have
cooperation, compensation and development not been honouring their financial obligations
to the community. They do not contribute
11. To abolish tariffs and other restrictions on regularly to the community's fund.
movement of goods and services within the
sub region 7. Failure of Members to Implement
Resolutions: Members of ECOWAS have
12. To promote sporting activities in the sub failed to implement some of the resolutions
region. passed by the community as these resolutions
are not binding on the countries.
13. To settle disputes among its members
8. Lack of Infrastructural Facilities: Lack of 6. To promote studies on the agricultural
social amenities in the sub region has greatly potentials of the River Niger.
hindered the attainment of the aims and
objectives of the community. Many countries EXERCISES
in the sub region have inefficient social 1. The treaty establishing ECOWAS on May
amenities that can adequately facilitate trade. 28, 1975 was signed by? A. 15 Heads of State
NIGER BASIN COMMISSION (NBC) B. 14 Heads of State C. 13 Heads of State D.
15 Foreign Ministers E. 12 Heads of State
The Niger Basin Commission (NBC) was (WAEC 1989, Q99)
established by countries located in the Niger
basin to maintain better co-operation on the 2. One of the main aims of the ECOWAS is to
use of the River Niger. The treaty establishing (a) foster interchange of goods and services
the commission was signed by the countries in among its members (b)provide a reliable
October, 1963. These countries are: The market for stock and shares (c) have common
Republic of Benin, Chad Cameroun, Guinea, political system (d) have common language
Burkina Faso, Nigeria, Mali, Cote de Ivoire (e)have common currency (WAEC 1989,
and Niger Republic. Q100)

River Niger is one of the longest and largest 3. Which of the following currencies does/do
rivers in the world. It flows through many not belong to any country within the
countries of the West African sub region. The ECOWAS? A. naira and kobo B. dalasi C.
headquarters of the commission is located in cedis and pesewas D. leo E. kwasha and
Niamey, Niger Republic. shilling (WAEC 1990, Q58)

4. which of the following arguements are in

favour of establishing I. The countries
concerned would be able to expand market
beyond their territional boundaries II.
Currency union is the final objective of
member countries III. Capital movement is not
allowed accross the boundaries. IV. Free
movement across the borders of members
would be allowed (a) I, II and III only (b) II
AIMS AND OBJECTIVES OF THE and IV only (c)I, II and IV only (d)II and III
COMMISSION only (e)I and III only (WAEC 1990, Q94)

1. To guide navigations on the Niger river 5. Which of the following countries is not a
member of ECOWAS (a)Nigeria (b)Gambia
2. To ensure the most effective utilisation of (c)Sierra Leone (d) Ghana (e)Cameroun
the resources of the river (WAEC 1990, Q95)

3. To streamline the construction of dams on 6. The main aim of ECOWAS is the

the Niger (a)elimination of apartheid (b)formation of
West African High command (c) formation of
4. To ensure the most effective use of the
government of West African States
Niger water
(d)promotion of economic and cultural
5. To undertake schemes to control floods and interaction (e)promotion of ethnic and rural
erosion integration among member states (WAEC
1991, Q70)
7. When and where was the ECOWAS treaty D. Diversified economy for West Africa
signed? (a)May 28, 1976 in Accra (b)April 28, (WAEC 1998, Q64)
1975 in Freetown (c)May 24, 1975 in Lagos (d)
April 28, 1976 in Abidjan (e)June 28, 1970 in 14. Which of the following is not an economic
Monrovia (WAEC 1992, Q99) grouping? A. International Bank for
Reconstructing And Development (IBRD) B.
8. Into which of the following countries does a Lake Chad Basin Commission (LCBC) C.
Nigerian not need a Visa to enter? (a)America United Nations Organization (UNO) D. Niger
(b)Ghana (c)Russia (d)kenya (e)Libya (WAEC Basin Commission (NBC) E. Mano River
1992, Q100) Union (MRU) (WAEC 1998, Q66; 1999, Q36)

9. What is the total number of the member 15. Which of the following is not an objective
countries of ECOWAS? (a)4 (b)5 (c)16 (d)17 of ECOWAS? (a)Expansion of trade (b)
(e)20 (WAEC 1993, Q92) Encouraging free movement of persons within
member states (c)Improvement of
10. The main objective of ECOWAS is infrastructural facilities (d)Promoting a
(a)promoting economic cooperation and common language (WAEC 2001, Q14)
development (b)promoting industry
(c)promoting transport (d)promoting 16. ECOWAS is a form of (a)economic union
agricultural production (e)providing credit (b)political union (c)trade union (d)free trade
facilities (WAEC 1993, Q95) association (WAEC 2002, Q40)

11. ECOWAS headquarters is located in 17. Which of the following has as one of
(a)Ghana (b)Nigeria (c)Senegal (d)Sierra objectives the removal obstacles to movement
Leone (e) Togo (WAEC 1994, Q60) of people and goods across the boundaries of
member countries? A. OAU B. ECOWAS C.
12. Which of the following is not a barrier to OPEC D. LCBC (WAEC 2003, Q50)
smooth trade among ECOWAS member
nations? (a)Differencies in currencies and 18. How many countries makes up the River
languages (b)establishment of a common tariff Niger Basin Commission? (a)16 (b)12 (c)10
(c)constant changes in government (d)Political (d)9 (WAEC 2015, Q8)
and ideological differences (e)fear of
domination by bigger countries (WAEC 1994,
Q96; 1996 Q42)

13. Which of the following is not a problem of

ECOWAS? A. Different levels of economic
development in member countries B.
Transportation and communication links C.
Different economic policies member countries
THEORY

1. Explain five obstacles working against the achievement of the objectives of ECOWAS (WAEC
1992,Q10)

i. ___________________________________________________________________________
_____________________________________________

ii. ___________________________________________________________________________
_____________________________________________
 iii. ___________________________________________________________________________
____________________________________________

iv. ___________________________________________________________________________
____________________________________________

v. ___________________________________________________________________________
____________________________________________

2. State five objectives of establishing the Economic Community of West African States (WAEC
1997, Q10a; 2000 Q8a)

i. ___________________________________________________________________________
_________________________________________

ii. ___________________________________________________________________________
_________________________________________

iii. ___________________________________________________________________________
_________________________________________

iv. ___________________________________________________________________________
_________________________________________

v. ___________________________________________________________________________
_________________________________________

3. List any five member countries of the Niger Basin Commission

i. ______________________________________ (ii) _________________________________

iii) _____________________________________ (iv) _________________________________

v) ______________________________________

b. State five objectives of the Niger Basin Commission (WAEC 2010, Q9)

i. ___________________________________________________________________________
_________________________________________________

ii. ___________________________________________________________________________
_________________________________________________

iii. ___________________________________________________________________________
_________________________________________________

iv. ___________________________________________________________________________
_________________________________________________

v. ___________________________________________________________________________
_________________________________________________
 WEEK 6

ECONOMIC GROUPINGS IN WEST AFRICA II

Objectives: At the end of the lesson the MANO RIVER BASIN COMMISSION
students should be able to;
MRBC was established on October 1973 by
a. State the objectives of West African heads of state of Liberia and Sierra Leone. It
Clearing House has its headquarter in Freetown. It is now
b. State the objectives of Mano River Basin made up of four members namely- Liberia,
Commission Sierra Leone, Guinea and Ivory Coast.
c. State the objectives of International
Monetary Funds OBJECTIVE OF MANO RIVER BASIN
COMMISSION
CONTENT
1. To promote regional integration among
WEST AFRICA CLEARING member nations
HOUSE(WACH)
2. To distribute the resources in the basin
The WACH was established in 1975 with equitably among member nations
headquarters in Freetown, Sierra Leone. It
comprises of ten member Central Banks of 3. To manage the resources in the basin
fifteen member states whose main objective is effectively and efficiently
to facilitate multilateral clearing mechanism 4. To manage the ecosystem of the basin
among Central Banks of members.
5. To foster regional economic development.
AIMS AND OBJECTIVES OF WACH
LAKE CHAD BASIN COMMISSION
1. To promote the use of members’ natioal
currencies for ultra sub-regional transactions. The Lake Chad Basin Commission was
established in 1964 by four nations but now
2. To bring about savings in the use of foreign has eight member states. It is headquartered in
reserves N’Djamena, the capital city Chad. Its main
3. To advice members nation as regards the objective is to oversee and ensure the
appropriate monetary policy to adopt. effectiveness and efficient use of the natural
resources in the basin.
4. To encourage trade liberalization
OBJECTIVES OF LCBC
5. To foster monetary co-operation in the sub-
1. To sustainably manage resources in the lake
region
2. To equitably distribute the resources of the
ACHIEVEMENTS OF WACH
lake among member states
1. The facilitation of clearing mechanism
3. To foster unity among members
among member state
4. To preserve the ecosystem in lake Chad
2. The facilitation of the use of members’
national currency for transactions. 5. To provide water for rural and urban areas

6. To construct and ensure proper maintenance

of dams, well and boreholes
INTERNATIONAL MONETARY to stabilise exchange rate among member
FUND(IMF) countries.

The International Monetary Fund was set up Some IMF Member Countries and their Unit
after the Second World War in order to of Currency
encourage the development of foreign trade. It
began operation in 1947 with headquarters in
the United States of America.

The International Monetary Fund was

established as a result of proposals adopted at
an international conference held at Bretton
Woods in 1944. Presently, it has about 138
member countries. IMF was established to
encourage balance of payment equilibrium and
1. Nigeria --------- Naira 5. The Gambia ------ Dolasi

2. Ghana ---------- Cedis 6. Liberia------------ Dollars

3. America---------- Dollars 7. Benin Republic-------- CFA

4. Britian ----------- Pounds 8. Sierra Leone---------- Leone

OBJECTIVES OF IMF 5. To promote co-operation among member

countries on financial matters.
1. To establish and stabilise exchange rate
among member nations 6. To facilitate settlement of debts in foreign
transactions.
2. To make fund available to members to
finance balance of payment deficit. EUROPEAN UNION(EU)

3. To make recommendations to members The European Union was established by the

concerning economic policies to be adopted treaty of Rome, Italy in 1957 by six European
countries. These countries were:
4. To encourage the development of
international trade

1. France 4. Belgium

2. West Germany 5. The Netherlands

3. Italy 6. Luxembourg.

The EEC actually became a reality on the 1st OBJECTIVES OF EUROPEAN UNION
of January, 1958 after the national parliaments (EU)
of the six countries ratified the Rome treaty
with overwhelming majority. Denmark, 1. To eliminate all tariffs and quotas between
Britain and Ireland later joined the EEC in 19 member countries.
73, thereby increasing its membership to nine. 2. To establish a common external tariffs on
all goods imported from outside the EEC.
3. To encourage the free movement of service, West African Countries (e)International
capital and people Monetary Fund (IMF)

4. To evolve common policies for agriculture, 5. The West African Clearing

transport and communication House(WACH)was established to A. dredge
the rivers in West Africa for easy navigation B.
5. To establish currency fluctuations between expand the volume of traffic within member
EU countries and the introduction of monetary countries C. coordinate the efforts to member
union with a single currency (Euro). states to tap their natural resources D. promote
the use of currencies of all members for inter
6. To maintain a free trade area through the
removal of trade barriers. regional trade (WAEC 2004, Q50)

6. One objective of the European Union is to

EXERCISES
(a)fight the guilty nation in time of war
1. Which of the following is not a member (b)eliminate drug addiction among member
country of the Lake Chad Basin Commission? countries (c)eliminate all tariffs and quotas
A. Chad B. Togo C. Cameroun D. Niger E. among member Countries (d)fight against
Nigeria (WAEC 1992, Q71; 1995 Q100; 2011 child abuse in member countries (WAEC 2016,
Q47) Q43)

2. Which of the following encourages free 7. Which of the following countries is a

trade among member nations? A. IMF B. member of the Lake Chad Basin Commission?
UNO C. WHO D. OAU E. EEC (WAEC 1994, (a)The Gambia (b)Cameroon (c)Ghana
Q59) (d)Guinea (WAEC 2017, Q45)

3. Which of the following specializes in 8. One of the aims of the European Union is to
granting loans to distressed economies? (a) (a)ease trade among member countries
UNESCO (b)ECA (c)IMF (d)IBRD (e)UNDP (b)enhance better trade with Africa (c)enhance
(WAEC 1998, Q63) free trade with America (d)Offer financial
assistance to poor countries (WAEC 2018,
4. Which of the following facilitates settlement Q46)
of Sub-regional Indebtedness? (a)Niger Basin
Commission (NBC) (b) Lake Chad Basin 9. The headquarters of the Mano River Union
commission (LCBC) (c)The West African is in (a)freetown (b)Monrovia (c)Conakry
Clearing House (d)Economic Community of (d)Abidjan (WAEC 2019, Q45)
THEORY

1. What are the objectives of Lake Chad Basin Commission (WAEC 1993, Q10c)

i. ___________________________________________________________________________
________________________________________

ii. ___________________________________________________________________________
________________________________________

iii. ___________________________________________________________________________
_______________________________________

iv. ___________________________________________________________________________
________________________________________
 v. ___________________________________________________________________________
________________________________________

2. Give five reasons why Lake Chad Basin Commission was established (WAEC 1997, Q10b)

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

v. ___________________________________________________________________________

3. Give five aims for establishing International Monetary Fund (IMF) (WAEC 2000, Q8; 2007 Q7)

i. ___________________________________________________________________________

ii. ___________________________________________________________________________

iii. ___________________________________________________________________________

iv. ___________________________________________________________________________

v. ___________________________________________________________________________
PAST QUESTIONS (OBJECTIVES AND THEORY)

SS1
INTRODUCTION TO COMMERCE

1. The process of buying, selling and distribution of 9. Commerce developed as a means of

goods and services is known as (a)retail trade (a)speculation (b)competition (c)specialization
(b)commerce (c)marketing concept (d)wholesale (d)importation (WAEC 1991, Q5)
trade (WAEC 1989 Q6)
10. Which of the following was not used as a
2. The major divisions of commerce are (a)Import, medium of exchange by the early Europeans that
Export and Transport (b)Trade, Communication came to West Africa? (a)pounds and shillings
and warehousing (c)Trade and Auxiliaries of trade (b)copper manilas (c)iron bars (d)cowries (WAEC
(d)Exchange, Consumption and Production 2007, Q 1)
(WAEC 1990 Q1)
11. The development of commerce encouraged the
3. Which of the following statement is not true? desire to (a)get goods and services of others
(a)Commercial services are lifeblood of a country's (b)work with others (c)create wealth for the nation
economic system (b)there cannot occur commercial (d)satisfy all wants and needs (WAEC 2011, Q 46)
services until goods has been produced (c)without
commercial services most goods will not be 12. The development of trade in West Africa was
produced (d)there is no stage of production that aided by (a)emergence of traditional rulers
does not employ commercial services (WAEC (b)arrival of the Portuguese (c)introduction of tax
1990 Q2) money (d)introduction of money (WAEC 2012, Q1)

4. Which of the following is one of the functions of 13. Commercial activities among West African
commerce (a)manufacturing (b)growing of countries are greatly hindered by (a)nationalisation
tomatoes (c)storage of goods (d)construction of Decree (b)lack of an acceptable medium of
roads (WAEC 1990 Q4) exchange (c)good road network (d)too many
commercial banks (WAEC 2017, Q 1)
5. Into which of the following two broad areas can
trade be divided? (a)home and foreign trade 14. Which of the following is not a function of
(b)home and retail trade (c)wholesale and retail commerce (a)the conversion of raw materials into
trade (d)imports and Exports (WAEC 1992 Q3) semi-finished products (b)the conversion of semi-
finished products into end products (c)provision of
6. If a businessman imports stock fish with a view services to customers (d)the exchange and
of exporting them to other countries, this form of distribution of goods and services (WAEC 2013, Q
trade is known as (a)invisible trade (b)entrepot 10)
trade (c)export trade (d)import trade (WAEC 1989,
Q2) 15. Which of the following aids to trade facilitates
production ahead of demand (a)insurance
7. Which of the following supports the view that (b)transportation (c)advertising (d)warehousing
there was commerce in Nigeria many years ago? (WAEC 2015, Q6)
(a)communities were interdependent (b)the
economy was subsistent (c)specialisation was 16. Commerce is defined as the study of how A.
minimal (d) cowries were used as money (WAEC man utilizes the resources in his physical
1989 Q 9) environment B. man produces, distributes and
consumes his goods and services C. man buys, sells
8. Which of the following towns was important to and distributes goods and services D. raw materials
trans-Saharan traders? (a)Kaduna (b)Oyo (c)Ilorin are changed into finished goods
(d)Kano (WAEC 1989, Q10)
17. Which of the following is an invisible export of
Nigeria? (a)shipping services Nigeria renders to
Russia (b)Nigeria's crude oil to London (c)Banking
services rendered to America residents in Nigeria (c)Exchange and distribution of goods and services
(WAEC 1989, Q38) (d)satisfy human wants (WAEC 2016, Q5)

18. Commercial activities among West African 25. Which of the following aids to trade is used to
countries are greatly hindered by (a)nationalisation stimulate demand for goods (a)Banking
Decree (b)lack of acceptable medium of exchange (b)transport (c)Insurance (d)advertising (WAEC
(c)good road network (d)too many commercial 2015, Q14)
banks (WAEC 2005, Q37)
26. Foreign trade is concerned with (a)Exchange of
19. Entrepot trade refers to (a)importing for goods and services among companies (b)buying
domestic consumption (b)importing for industrial and selling of imported goods (c)Exchange of
use (c)exporting for factory use (d)importing for re- goods and services among citizens (d)buying and
export (WAEC 1990, Q34) selling of goods and services among countries
(WAEC 2014 Q32)
20. Into which of the following is two broad areas
of trade can be divided (a)home and foreign trade 27. The scope of commerce is limited to (a)home
(b)imports and Exports (c)wholesale and retail and foreign trade (b)wholesale and retail trade
trade (d)home and retail trade (WAEC 1992, Q3) (c)Trade and aids to trade (d) wholesale and export
trade (WAEC 2003 Q1)
21. Commerce increases the utility of goods by
making them available when they are wanted. The 28. The aid to trade responsible for the preservation
function is performed by the use of (a)banks of perishable items is (a)warehousing (b)insurance
(b)insurance (c)transport (d)warehousing (WAEC (c)transportation (d)advertising (WAEC 2004, Q22)
1992, Q45)
29. The ancillary to trade which ensures that people
22. Which of the following ancillary services helps gain access to facts pertaining to goods is
to maintain close contact between buyers and (a)insurance (b)advertising (c)warehousing
sellers (a)transportation (b)insurance (c)production (d)Banking (WAEC 2007, Q2)
(d)Banking (WAEC 1993, Q5)
30. The safe keeping of goods from the point or
23. Activities which facilitates commerce includes production to the time they are needed is
(a)engaging youth in environmental salutation (a)standardisation (b)Warehousing (c)hoarding (d)
(b)funding political campaign (c)providing stock controlling (WAEC 1999, Q8)
recreational facilities in communities (d)improving
road network (WAEC 2018, Q1) 31. Given: i. Retail ii. Export iii Transport iv.
Import V. Insurance Vi. Banking and finance Vii.
24. The main concern of commerce is to (a)create Wholesale Viii Communication. Which of the
wealth (b)buy and sell goods and services above is aid to trade? A. i, ii, iii and Viii B. iii, V,
Vi and Viii C. i, ii, iii and Vi D. ii, V, Vi, and Vii

THEORY 4. With the aid of a diagram illustrate the scope of

commerce (WAEC 2001, Q1)
1. Distinguish between trade and commerce
(WAEC 2005, Q1a) 5. Explain five factors that has contributed to the
growth of commerce (WAEC 1995, Q5b)
2. State and explain any five ancillaries to trade
(WAEC 1989, Q1b) 6. Explain five factors that adversely affect the
growth of commerce in West Africa (WAEC 2000,
3. Explain five ways in which commerce is Q6)
important in the life of a nation (WAEC 1997 Q1,
2016 Q1)
CAREER OPPORTUNITIES IN COMMERCE

1. The following are the types of management Nigerian Institute of Marketing (NIMARK)
positions except ……. (a) Personnel Officers (c)International Monetary Fund (IMF) (d)Chartered
(b)Management Trainees (c)Security personnel Institute of Bankers of Nigeria (CIBN)
(d)Middle Level Managers
4. Career opportunities in the private sector include
2. Which of the following is not a job opportunity the following except …… (a) Managers (b)Budget
for accounting professionals? (a)Fashion designer analyst (c) Cost Accountants (d) Account Clerk
(b)Tax Consultant (c) Financial Managers (d)Cost
Accountants 5. The Basic requirement for top management or
executive level is ……. (a)Master or Second
3. One of the following is not among institutes degree (b)first degree (c)Senior school certificate
conducting professional examinations. (a) Institute (d)Testimonial
of Chartered Accountants of Nigeria (ICAN) (b)

THEORY

1. List five career opportunities available to a

student of commerce

E-COMMERCE

1. The whole world has become a global village as 5. One of the following is a feature of E commerce
a result of (a)E-banking (b)communication (c)E- (a)Planning Management (b) Ease of interaction (c)
commerce (d)Commerce Supply Relationship (d) Customer Planning

2. The process of buying and selling of goods and 6. E-commerce is an activity which involves (a)
services over the internet is called (a)e-mail (b)e- trading in products through the post office
retailing (c)e-service (d)e-commerce (b)trading in products through the Internet
(c)buying and selling of products through telegram
3. E-commerce affects commerce in the following messages (d)buying and selling of products through
ways except (a) enhances connectivity fax messages
(b)Decreased use of cash (c)decrease in risk
bearing (d)decreased transaction cost

4. A direct retail shopping on the internet is called

(a)electronic interchange (b)E-retailing (c)internet
trading (d)commerce

THEORY

1. What is e-commerce? (WAEC 2017, Q1a) 2. In five ways, describe how e-commerce has been
of help to the nation

TOURISM

1. The benefits that students derive from tourism of a country travel within it D. resident of a country
are A. education and revenue B. recreation and travel within it
education C. purchase of artifacts and sightseeing
D. sale of artefacts and relaxation 3. Tourism involving residents of the given country
travelling only within this country is called A.
2. Inbound tourism occurs when? A. non-residents Domestic Tourism B. Inbound Tourism C.
of a country travel to other countries B. resident of Outbound Tourism D. Traveler’s Tourism
a country travel to another country C. non-resident
4. Tourism serves the purpose of _____ A. cross- 9. The first stage in tourism planning is (a)
cultural understanding and peaceful interaction B. assessing feedback from tourists (b)preparing list
opening values for leaving the country C. economic of tourist (c)creating recreational opportunities
development and naturalization D. exploiting the (d)building community support
country's natural endowment
10. The World Tourism Organisation has its
5. A major hindrance to tourism growth in Nigeria headquarters in (a)New York (b)Paris (c)Madrid
is? A. absence of genuine tour operators B. lack of (d)London
tourism master plan C. inadequate tourist centres D.
non-compliance to immigration laws 11. An important social reason for development
tourism in Nigeria is the? A. promotion of culture
6. The fear of many communities concerning interaction B. provision of job opportunities C.
tourism development is the? A. influence of foreign improvement of the balances of payments D.
culture B. fear of disease transmission C. fear of encouragement of international relations
pollution D. religious intolerance
12. Tourism serves the purpose of A. cross-cultural
7. The factors essential for tourism are (a) understanding and peaceful interaction B. Opening
accessibility, capital, amenities and scenery values for leaving the country C. economic
(b)good weather, amenities, accessibility and development and naturalization D. exploiting the
markets (d)good weather, capital, schools and country's natural endowment
scenery
13. The development of tourism in Nigeria will
8. Tourism can be classified as (a)intangible import enhance? A. agriculture B. revenue generation C.
(b)visible export (c)intangible export (d)invisible Export D. labour mobility
export

OCCUPATION

1. Carpentry is an activity classified under and iv only C. i and ii only D. ii and iii only
(a)extractive occupation (b)tertiary occupation (WAEC 2009, Q2 and 1993, Q10)
(c)Commercial occupation (d)constructive
occupation (WAEC 2014 Q39) 6. Which of the following groups of activities are
commercial services A. Manufacturing, weaving
2. Industrial Occupation does not involve the and storing B. Vending, purchasing and banking C.
following (a) growing and extraction of raw Advertising, farming and harvesting D. Fishing,
materials (b)use of machinery (c)construction and constructing and transporting (WAEC 2006, Q8)
manufacturing of goods (d)movement of people
and goods (WAEC 2012, Q45) 7. The police and army are engaged in (a)direct
Services occupation (b)indirect service occupation
3. Those who are engaged in the distribution of (c)industrial occupation (d)primary occupation
goods belong to (a)extractive industry (WAEC 2009, Q34)
(b)commercial occupation (c)manufacturing
industry (d)construction industry (WAEC 2012, Q8) 8. Arrange the following occupational activities in
the sequence in which they are performed I.
4. The entertainment industry is classified under Wholesaling II. Fishing III. Canning IV. Retailing
(a)extractive industry (b)manufacturing industry (a) I, II and IV (b) II, I, IV and III (c)III, II, I and
(c)constructive industry (d)Commercial industry IV (d)II, III, I and IV (WAEC 1993, Q2)
(WAEC 2014 Q30)
9. Which of the following converts raw materials
5. Which of the following occupations come under into finished goods (a) extractive industry
the extractive industry? i. Cattle rearing, lumbering, (b)manufacturing industry (c)tertiary industry
farming ii. Mining, quarrying, hunting iii. Ship (d)constructive industry (WAEC 1989, Q8)
building, road construction, iron bending iv.
Singing, dancing, barbing A. i, ii and iii only B. i, ii 10. In which class of occupation would doctors,
teachers and entertainers be grouped? A. Extraction
B. Industrial C. Direct Service D. Commercial 21. One of the factors which critically determines
(WAEC 1993, Q9) the choice of occupation is (a)training (b)skills
(c)aptitude (d)interest
11. Which of the following statements is true of the
manufacturing industry? A. The factors of 22. Given: i. Shoemaker ii. Policeman iii.
production cannot move to other occupations B. It Fisherman iv. Gardener v. Broker. The persons
is involved in changing raw materials to finished engaged in primary occupation are? A. i, iii and iv
goods C. Its product cannot be distributed to B. iii and iv C. iii and v D. i, ii and v
consumers D. It doesn't not benefit from the
services of direct labour (WAEC 1993, Q12) 23. The three main classification of occupation are?
A. construction, trade and services B.
12. In which of the following classes of occupation manufacturing, industry and services C. farming,
would you place a doctor (a)extractive banking and trading D. industry, commerce and
(b)commercial (c)indirect service (d) direct services
Services (WAEC 2000, Q50)
24. In which of the following classes of occupation
13. Which of the following is concerned with the would you place a commerce teacher
actual production of goods and services (a)Commercial (b)extractive (c)direct Service
(a)commerce (b)Trade (c)industry (d)service (d)manufacturing (WAEC 1991, Q7)
(WAEC 2002, Q3)
25. Mrs. Jones who lives in the riverine community
14. Which of the following is classified as an of Rivers State makes her living through crabbing
extractive industry (a)digging for minerals and fishing. This type of occupation she is in is
(b)digging for road building (c)canning for tomato _____ A. commercial B. manufacturing C. service
puree (d)assembling of cars (WAEC 1994, Q35) D. extractive

15. Who among the following does not render 26. Those involved in obtaining the gifts of nature
direct service (a)teacher (b)musician (c)doctor from land and sea are engaged in (a)extractive
(d)retailer (WAEC 2013, Q11) occupation (b)manufacturing occupation
(c)Commercial occupation (d)constructive
16. An insurance broker is engaged in occupation (WAEC 1995, Q3)
(a)manufacturing occupation (b)distributive
occupation (c)Commercial occupation (d)extractive 27. House builders belong to (a)manufacturing
occupation (WAEC 1989 Q5) industry (b)constructive industry (c)Commercial
industry (d)tertiary occupation (WAEC 2006, Q7)
17. Which of the following does not belong to the
extractive industry (a)farming (b)insuring 28. Which of the following categories of workers
(c)drilling (d)fishing (WAEC 1990, Q5) does not provide direct Services (a)teachers
(b)doctors (c)wholesalers (d)musicians (WAEC
18. In which class of occupation would you place a 1994, Q84)
taxi driver? (a)extractive (b)indirect service
(c)personal services (d)Commercial services 29. Which of the following is not engaged in
(WAEC 1990, Q11) commercial occupation (a)stock broker (b)an
engineer (c)a Banker (d)a common carrier (WAEC
19. Which of the following is a commercial service 1998, Q3)
(a)transporting (b)garri processing (c)oil drilling
(d)tailoring (WAEC 1991, Q1) 30. Which of the following is a direct Service
(a)banking (b)teaching (c)advertising (d)fishing
20. Which of the following is concerned with (WAEC 1996, Q68)
obtaining raw materials from their natural locations
(a)extractive industry (b)manufacturing industry
(c)transport industry (d)construction industry
THEORY

1. Define occupation (WAEC 2015, Q1a) a. Commercial workers b. Industrial workers c.

Direct Service workers
2. Show with the aid of a diagram, the
classification of occupation and give one example 7. Distinguish between commerce and industry
of each classification (WAEC 2015, Q1b) (WAEC 2013, Q1a)

3. List any four factors affecting occupation 8. Explain the following activities giving two
examples of each
4. Explain any five types of Commercial
Occupation and three industrial occupations (a) Extractive industry (b) Construction industry (c)
(WAEC 2000, Q2a) Manufacturing industry (d)Tertiary industry

a. Commercial Occupation b. Industrial Occupation

5. Distinguish between industrial occupation and

commercial occupation

6. Give five examples each of:

PRODUCTION

1. The function of commerce in production is that daily bread (d)the changing of raw materials
(a) It helps in the extraction of raw materials (WAEC 2005, Q5; 2008, Q3)
(b)provides a link between the different arms of
production (c)is the only branch that satisfies wants 8. One of the inputs of production that can be
(d)yields results (WAEC 1993, Q1) motivated by remuneration is (a)capital
(b)entrepreneur (c)labour (d)land
2. Which of the following enables production to
take place ahead of demand (a)transportation 9. The production process is complete when what is
(b)advertising (c)importing (d)warehousing produced (a)is in the manufacturer's warehouse
(b)has reached the manufacturer's agent (c)has
3. Land as a factor of production comprises (a)all reached the retailers (d)has reached the final users
resources provided by nature (b)the earth surface (WAEC 1998, Q83)
only (c)land surface and vegetation (d)efforts to
exploit the earth (WAEC 1995, Q13) 10. The divisions of production are (a)industry,
banking and service (b)industry, manufacturing and
4. A person which decides what to produce and service (c)industry, commerce and service
combines the other factors of production is the (d)industry and commerce (WAEC 1992, Q1; 2004,
(a)entrepreneur (b)distributor (c)engineer Q3)
(d)retailer (WAEC 2001, Q19)
11. Specialisation is possible as a result of (a)good
5. All human efforts geared towards the production roads (b)education (c)demand for goods
of goods and services is (a)entrepreneurship (d)Exchange (WAEC 1996, Q19)
(b)labour (c)capital (d)occupation (WAEC 2001, Q
24) 12. Division of labour often result in (a)decrease in
production (b)increase in production (c)waste of
6. Industry is a branch of production because it time (d)greater craftsmanship (WAEC 1997, Q14)
(a)is a division of commerce (b)increases utility of
goods (c)involves the use of machine (d)deals with 13. The goods that are used in the production of
durable goods (WAEC 2003, Q4) other goods are known as (a)Commercial goods
(b)consumer goods (c)capital goods (d)non-durable
7. Production is defined as (a)an industrial goods (WAEC 1999, Q2)
undertaking (b)creation of utility (c)earning one’s
14. Goods are usually classified into (a)saleable are used by the producers (c)are packed and
and non-saleable goods (b)inferior and superior labelled (d)reach the final consumer (e)are sold in
goods (c)luxurious and essential goods (d)producer the market (WAEC 1989, Q11; 1992, Q30; 2016
and consumer goods (WAEC 1995, Q14) Q48)

15. Babou Penn, a fisherman says he has all 27. Which of the following is not a branch of
necessary materials to go to sea today, except the production (a)consumption (b)extraction
captain of the boat. Captain here refers to____ as a (c)manufacturing (d)distribution (e)direct Services
factor of production (a)entrepreneur (b)capital (WAEC 1993, Q8)
(c)labour (d)land (WAEC 2008, Q4)
28. Which of the following is not a basic want of
16. Transforming raw materials into finished goods man (a)transport (b)food (c)water (d)clothing
is an example of (a)primary production (e)shelter (WAEC 1993, Q2)
(b)secondary production (c)tertiary production
(d)direct Services (WAEC 2002, Q2) 29. Which of the following is not a factor of
production (a)capital (b)land (c)labour
17. Which of the following brings about (d)organisation (e)staffing (WAEC 1992 Q10;
specialisation (a)recruitment of staff (b)division of 1994, Q66)
labour (c)business resources (d)employer of labour
(WAEC 1999, Q3) 30. Which of the following is not the duty of an
entrepreneur (a)provision of initial capital
18. Which of the following is classified under (b)bearing of risk (c)organisation of other factors of
primary production (a)cloth making (b)shoe production (d)decision on what to produce
making (c)coal mining (d)Road construction (e)decision on the amount of tax to pay (WAEC
(WAEC 2001, Q3) 1996, Q1)

19. Risk bearing in business organisation is borne 31. The reward for entrepreneurship as a factor of
by (a)employee (b)entrepreneur (c)customers production is (a)interest (b)commission (c)profit
(d)manager (WAEC 2016, Q21; 2 0 0 4, Q4) (d)salary (e)rent (WAEC 1998, Q8)

20. The sole purpose of production is 32. Which of the following refers to all resources
(a)employment (b)promotion (c)consumption used in creating utilities (a)a fixed capital (b)factors
(d)competition (WAEC 1991, Q4) of production (c)entrepreneurship (d)labour
(WAEC 1999, Q4)
21. Pure profit is the element of profit paid (a) for
land (b)for capital (c)to an entrepreneur (d)for 33. Which of the following is concerned with the
labour (WAEC 1989, Q44) actual production of goods (a)commerce (b)Trade
(c)industry (d)service (WAEC 2003, Q4)
22. The factor of production that is set aside for the
production of wealth is called (a)entrepreneur 34. The greatest risk in business venture is borne
(b)land (c)capital (d)goodwill (WAEC 1989, Q45) by (a)trade creditors (b)employees (c)Trade debtors
(d)entrepreneurs
23. The reward of capital is (a)dividend (b)interest
(c)profit (d)rent (WAEC 1990, Q67) 35. Which of the following coordinates all other
factors of production to achieve set objectives
24. Workers engaged in mining, quarrying or (a)land (b)labour (c)entrepreneur (d)capital
fishing are engaged in (a)secondary production (WAEC 2005, Q4)
(b)primary production (c)tertiary production (d)the
manufacturing industry (WAEC 1991, Q35) 36. The last link in the production process is
(a)transporter (b)wholesaler (c)consumer (d)retailer
25. The reward for land as a factor of production is (WAEC 2013, Q21)
known as (a)interest (b)Rent (c)profit (d)wages
(WAEC 1991, Q96) 37. Rent is the return on (a)a loan (b)labour (c)land
(c)share (WAEC 2019, Q3)
26. Manufacturing/Production ends when goods
(a)are advertised to the consumers (b)and services
38. Land as a factor of production does not vary in? 46. The quality and quantity of production mostly
A. quantity B. Nature C. quality D. cost depend on the? A. effectiveness of factors B.
availability of factors C. level of education of
39. The primary motive behind an individual entrepreneurs D. level of cooperation among
engaging in production is to? A. fully engaged all workers
the factors of production B. make available goods
and services C. meets projected profit D. meet 47. In the long run, all factors of production are? A.
basic human needs fixed B. variable C. marginal D. constant

40. Capital as a factor of production can be used as? 48. The part of business capital with which capital
A. Money that is regarded as assets B. Goods that that does not change its form in the process of
are useful in business C. Input for further production is known as? A. circulating capital B.
production D. Services that provide satisfaction nominal capital C. liquid capital D. fixed capital E.
working capital
41. Secondary production has to do with changing
the? A. shape of raw materials through construction 49. The allocation of tasks to different skills in a
operations B. physical form of raw materials into production process is referred to as A. production
finished goods C. utility of raw materials by an technique B. production function C. division of
engineering process D. nature of raw materials labour D. delegation of responsibility
through manufacturing processes
50. The allocation of tasks to different skills in a
42. Factors of production can be described as the? production process is referred to as A. production
A. resources required for the provision of goods technique B. production function C. division of
and services B. skills involves in deciding and labour D. delegation of responsibility
directing the flow of goods C. monetary tools
employed by government to ensure stable 51. One of the major determinants of the volume of
production D. elements involved in the process of production is A. the market size B. the availability
formulating policies on production of banks C. sex distribution D. government policy

43. Which of these factors of production is 52. Production means A. changing the form of a
relatively fixed in supply? A. Capital B. good at any stage from the raw material to the
Entrepreneur C. Human resources D. Natural finished products B. increasing economic welfare
resources of people by producing more goods and services C.
moving goods from one place to another for proper
44. Materials used for further production of goods use D. the amount of satisfaction derived from the
and services are known as? A. export goods B. consumption of goods and services E. the provision
intermediate goods C. capital goods D. consumer of goods and services which are capable of
goods satisfying human wants

45. 1The most important concept on production is? 53. The factor of production which involves both
A. utility B. wealth creation C. transformation D. the mental and physical effort of man is called A.
distribution capital B. Entrepreneur C. labour D. land E. work

THEORY

1. What is production? (WAEC 1994, Q2a, 1998, a. Land b. Labour c. Capital

Q1a, 2010, Q2a)
3. State four uses each of the following factors of
2. Illustrate with a well labelled diagram the main production (WAEC 2011, Q1)
divisions of production and subdivision of
production (WAEC 1998, Q1b) a. Capital b. Land c. Entrepreneur

3. Explain extensively the following factors of 4. Explain the following and give two example of
production (WAEC 2010, Q2b) each (WAEC 2012, Q1b)
a. Primary production b. Secondary production c. 7. State five advantages of division of labour
Tertiary production
8. In your own way, explain the interrelationship
5. Explain three factors that limit the application of between division of labour, specialisation and
division of labour (WAEC 2018, Q1) exchange

6. State three disadvantages of division of labour

THE BARTER SYSTEM

1. The form of trade practised by the early men was 2. The exchange of goods for goods in home trade
characterised by (a)Exchange for goods for money is known as (a)entrepot trade (b)Trade by Barter
(b)efficient distribution system (c)Exchange of (c)commodity trade (d)distributive trade (WAEC
goods for goods (d)organised warehousing (WAEC 2010, Q15)
2005, Q1).

THEORY 2. Explain five ways in which the introduction of

money has solved the problems stated in
1. State five problems of barter system of trading Q1(WAEC 2014, Q3b)
(WAEC 2014, Q3a)

TRADE

1. Entrepot trade refers to (a)importing for 7. The two main branches of trade are (a)commerce
domestic consumption (b)importing for industrial and aids to trade (b)home and foreign trade
use (c)importing for government concerns (c)foreign and entrepot trade (d)wholesale and
(d)exporting for factory use (e)importing for re- retail trade (e)visible and invisible trade (WAEC
export (WAEC 1990, Q34) 1998, Q2)

2. A trade agreement in which countries exchange 8. The buying and selling of goods and services
goods and services is known as (a)export trade within a country is called (a)counter trade
(b)bilateral trade (c)multilateral trade (d)entrepot (b)entrepot trade (c)foreign trade (d)home trade
trade (e)barter trade (WAEC 1992, Q15) (WAEC 2008, Q18)

3. Trade can be described as (a)purchase of goods 9. The exchange of goods for goods in home trade
and services (b)production of goods (c)buying and is known as (a)entrepot trade (b)Trade by Barter
selling (d)distribution of goods (e)storage of goods (c)commodity trade (d)distributive trade (WAEC
(WAEC 1993, Q7) 2015, Q15)

4. Foreign trade is also known as (a)domestic trade 10. The selling of goods in small units is normally
(b)international trade (c)counter trade (d)entrepot performed by (a)Chambers of commerce
trade (e)export trade (WAEC 1993, Q74) (b)wholesaler (c)distributors (d)retailers (WAEC
2013, Q 40)
5. Which of the following refers to the practice of
importing for re-export (a)counter trade 11. If Karamo who lives in the Gambia imports
(b)dumping (c)entrepot trade (d)forward trading good from Senegal and later sells them in Guinea
(e)bilateral trade (WAEC 1994, Q61) Bissau, Karamo is engaged in (a)multilateral trade
(b)counter trade (c)barter trade (d)entrepot trade
6. A trade in which many countries exchange goods (WAEC 2011, Q12)
and services is called (a)bilateral trade (b)entrepot
trade (c)economic Union (d)multilateral trade 12. Foreign trade is concerned with (a)Exchange of
(e)counter trade (WAEC 1995, Q18) goods and services among companies (b)buying
and selling of imported goods (c)exchange of good 13. A firm which imports goods with the view of
and services among citizens (d)buying and selling re-exporting them is engaged in (a)bilateral trade
of goods and services among countries (WAEC (b)multilateral trade (c)entrepot trade (d)counter
2014, Q34) trade (WAEC 2019, Q18)

THEORY 4. Explain five advantages of home trade over

foreign trade
1. What is foreign trade (WAEC 2006, Q1)
5. Explain the division of home trade with
2. Explain five ways in which foreign trade is examples
different from home trade (WAEC 2006 Q1b)
6. List five means of payment in home trade
3. Explain the divisions of Foreign Trade with (WAEC 2021, Q4a)
examples
RETAIL TRADE

1. The selling of goods in small units is normally (e)provide a means of identifying the holder
performed by (a)Chambers of commerce (WAEC 1996, Q12)
(b)wholesaler (c)distributors (d)retailers (WAEC
2013, Q40) 9. The following factors must be considered before
setting up a retail business except (a)capital
2. Which of the following is a function of the (b)experience (c)location (d) size of market
retailer to the wholesaler (a)providing after sales (e)public relationship (WAEC 1992, Q52)
service (b)providing information on market trends
(c)sale of variety of goods (d)sale of goods in small 10. which of the following determines the quality
quantities (WAEC 2015, Q21) of goods and that a retailer sells? A. the mode of
contract of sales B. the type of manufacturer C. the
3. Which of the following is not a function of a regulations regarding sales in the area D. the
retailer (a)providing after sales services (b)stocking location of his shop
variety of goods (c)selling in small quantities to the
consumers (d)financing manufacturers (WAEC 11. Which of the following are true of small shops?
2010, Q40) I. They exist to serve a local market II. They
provide personal services to customers III. There is
4. Which of the following factors is not to be
not much opportunity for expansion IV. There is no
considered in starting a retail trade (a)size of the
business (b)nature of the business (c)amount of need to employ paid assistants (a)I, II and III only
capital needed (d)level of tax payers (WAEC 2010 (b)II, III and IV only (c)III and IV only (d)I, II and
Q6) IV only (e)II and III only (WAEC 1989, Q88)

5. Which of the following features is common to all 12. Retail outlets which sell from specialised vans
retailers (a)operating as sole proprietors (b)selling are (a)supermarket (b)multiple shop (c)mail order
to the final consumers (c)operating with small shops (d)department stores (e)mobile shops
capital (d)selling on hire purchase to consumers
(WAEC 1990, Q22)
(WAEC 2009, Q28)

6. Which of the following is a function of the small 13. Small unit shops continue to exist in spite of
scale retailer (a)financing manufacturers stiff competition by large stores because they (a)are
(b)Warehousing of goods (c)branding of goods located near large shops (b)employ travelling
(d)selling to consumers (WAEC 2007, Q24) salesman (c)stock one line of goods (d)maintain
personal contact with their customers (d)buy in
7. Which of the following is not considered when
bulk and sell at cheaper prices (WAEC 1994, Q94)
setting a retail shop (a)advertising (b)Rent
(c)accessibility (d)target population (e)proximity to
14. Small scale retail attracts a lot of new
the source of supply
entrepreneurs in West Africa because (a)many
8. Which of the following functions is not people have had some good training in retail trade
performed by retailers (a)breaking bulk (b)ensuring (b)it is easy to succeed with the business (c)bank
regular stock for consumers (c)branding and are always ready to lend to retailers (d)only a small
packaging (d)insuring goods for consumers
amount of capital needed to start the business
(e)government excerpts retailers from paying tax because they (a)buy from many manufacturers
(WAEC 1996, Q35) (b)maintain personal relationship with customers
(c)stock only one line of goods in their stalls (d)do
15. Which of the following is an example of not separate business money from personal money
itinerant trading? (a)mobile shops (b)mail order (WAEC 2010, Q5, 2014, Q24)
business (c)stall holding (d)selling from kiosks
(WAEC 2001, Q13) 20. The selling of articles from place to place on
foot is (a)mail order (b)itinerant trading (c)barter
16. A retail outlet meant to sell only to a particular (d)self-service (WAEC 2010, Q9)
manufacturer's product is known as (a)co-operative
shop (b)chain store (c)department store (d)tied 21. Mobile shopping involves shopping (a)from
shops (WAEC 2002, Q16) motor van (b)at a particular spot in the city (c)in
multiple shops only (d)from vending machine
17. Who among the following cannot be regarded (WAEC 2010, Q27)
as an itinerant trader (a)gypsy (b)barrow boy
(c)peddler (d)stall owner (WAEC 2005, Q18) 22. Retail outlets which sell from specialised vans
are called (a)supermarket (b)multiple shops (c)mail
18. A shop that sells only the products of a order firms (d)mobile shops (WAEC 2016, Q42,
particular manufacturer is known as (a)mobile 2019 Q15)
shops (b)unit shop (c)tied shops (d)small shops
(WAEC 2008, Q14) 23. Retail outlets that have identical store design,
layout and stock display are (a)multiple shop (b)
19. Small scale retailers continue to survive in spite tied shops (c)mobile shop (d) supermarkets
of serious competition from large scale retailers (WAEC 2009, Q4)
THEORY 7. Give two examples of small scale retail outlets
(WAEC 1996 Q1a)
1. What factors should be considered in siting a
small scale retail shop (WAEC 1992, Q4b) 8. Explain five reasons for the survival of small
2. Give two examples of small scale retail outlets scale retailers (WAEC 1996, Q1b; 2006 Q8; 2016,
and three examples of large scale retail outlets Q3b)
(WAEC 1996, Q1a)
9. Give five reasons why small scale retail
3. With the aid of a diagram illustrate six branches businesses may fail (WAEC 1998, Q8c)
of trade and show six types of retail outlets (WAEC
1999, Q4a) 10. State eight features of Hawking (WAEC 1999,
Q4b)
4. Explain five functions of a retailer
11. Explain five features of itinerant trading
4. Mr. Touray wants to establish in retail shop for
the sale of consumer goods (a)State five factors he (WAEC 2000, Q5a)
should consider before locating his shop (WAEC
2018, Q2a) 12. Write short notes on each of the following; a.
Small stores b. Mobile shops c. Tied shops d.
5. Explain five ways a wholesaler can aid Mr. Peddling (WAEC 2003, Q5)
Touray's business (WAEC 2018, Q2b)
13. List four types of i) Small scale retailers
6. Give any four reasons why small scale retailing (WAEC 2006, Q8a)
is common in Nigeria (WAEC 1993, Q1b)

LARGE SCALE RETAILING

1. A number of shops under one roof is the feature 2. Which of the following is a retail outlet to
of (a)supermarket (b)chain store (c)department eliminate the profits of middlemen (a)producer co-
store (d)mail order business (e)shopping centre operative (b)consumer co-operative (c)thrift and
(WAEC 1990, Q22) credit societies (d)department store (e)mail order
business (WAEC 1991, Q50)
3. The use of catalogue is associated with 13. One of the features of Supermarkets is
(a)Hawkers (b)roadside traders (c)mobile shops (a)having similar shop fronts (b)having many shops
(d)chain Stores (e)mail order business (WAEC under one roof (b)having many shops under one
1991, Q51) roof (c)selling common household goods (d)having
control from headquarters (e)selling without shoes
4. A group of retailing shops under one (WAEC1996, Q87)
management and selling then same products is
known as? (a)multiple shop (b)supermarket 14. Which of the following is not a feature of a
(c)department stores (d)variety store (e)unit shop department store (a)one stop shopping (b)deals in
(WAEC 1992, Q6) one line of goods (c)use of trolleys (d)convenient
location (WAEC 1999, Q18)
5. Which of the following saves consumers the
time and cost involved in travelling to commercial 15. A major cost component of running a mail
centres for shopping (a)department store order firm is the (a)printing of catalogues (b)paying
(b)supermarket (c)mobile shop (d)wholesale trade salesmen salaries (c)renting shops (d)travelling
(d)stall holders (WAEC 1992, Q7) expenses (WAEC 1999, Q19)

6. UTC, Kingsway Stores, Leventis Stores are 16. A retail outlet which sells a fairly narrow range
typical examples of (a)unit shops (b)department of goods with a number of branches in different
stores (c)mobile shops (d)chain Stores towns is a (a)supermarket (b)mail order shops
(e)hypermarkets (WAEC 1992, Q17) (c)mobile shops (d)multiple shops (WAEC 2000,
Q11)
7. Department stores are usually located where
(a)Low income earners live (b)in suburban towns 17. Which of the following is not a feature of a
(c)at City centres (d)in low rental areas (e)in areas department store (a)located at the centre of a city
free from traffic jams (WAEC 1993, Q11) (b)Bulk buying (c)attractive layout (d)selling one
line of goods (WAEC 2001, Q40)
8. The retailers operates from a stall while the
wholesaler operates from a (a)supermarket 18. A chain store is also known as (a)department
(b)mobile shops (c)hypermarket (d)chain store store (b)multiple shop (c)supermarket
(e)warehouse (WAEC 1993, Q96) (d)hypermarkets (WAEC 2002, Q21)

9. Which of the following is not a feature of 19. Department stores usually (a)offer a wide
supermarket (a)standard shop fronts (b)self-service variety of goods (b)specialise in selling only
(c)use of trolleys (d)small number of sales household goods (c)offer a few line of goods
assistants (e)stocking mainly food items (WAEC (d)sell on cash on delivery basis (WAEC 2002,
1994, Q24) Q22)

10. Which of the following is a problem facing 20. Which of the following is an advantage of large
mail order business (a)expensive shop fronts scale retailing (a)decline in personal service
(b)Cost of postage and advertisements (b)pilfering (c)High overhead cost (d)one stop
(c)commission to agents (d)increase in branded shopping
goods (e)increase in the variety of catalogue
(WAEC 1994, Q42) 21. Which of the following distinguishes
supermarket from other retail outlets (a)use of self-
11. Which of the following is centrally controlled service (b)standard shop fronts (c)sale of food
(a)multiple shop (b)mobile shops (c)department items and household goods (d)provision of parking
stores (d)supermarket (e)mail order (WAEC 1994, spaces and delivery services (WAEC 2004, Q16)
Q99)
22. Which of the following is a feature peculiar to
12. A group of retailing shops with standard shops multiple shops (a)central location (b)self-service
fronts and centralised buying is known as (c)central buying (d)one stop shopping (WAEC
(a)department stores (b)unit shops (c)mobile shops 2005, Q21)
(d)supermarket (e)multiple stores (WAEC 1995,
Q74)
23. C.O.D transactions are associated with (a)mail 32. Which of the following is an example of large
order firms (b)mobile shops (c)supermarket scale retailing (a)Hawking (b)mobile shops
(d)multiple shops (WAEC 2005, Q29) (c)kiosks (d)department stores (WAEC 2012, Q5)

24. A retail outlet is described as a multiple shop 33. Which of the following is a feature of mail
when it (a)has many shops under one roof (b)sells order business (a)employs many shop assistants
goods which are not standardised (c)sells through (b)practices self-service (c)provides attractive shop
catalogues (d)deals with one line of goods (WAEC front (d)rents large warehouse (WAEC 2012, Q21)
2005, Q32)
34. Which of the following is a feature of
25. The printing of catalogues is one of the cost supermarket (a)gives credit to reliable customers
associated with the operation of a (a)tied shop (b)specialises in one line of product (c)goods are
(b)mobile shops (c)mail order shops (d)department on display with price tags (d)does not have provide
stores (WAEC 2006, Q5) storage facilities (WAEC 2013, Q29)

26. Which of the following retail outlets is 35. A retail outlet with many branches all dealing
described as selling without shops (a)multiple in similar line of goods is described as
stores (b)supermarket (c)mail order business (a)department store (b)supermarket (c)chain store
(d)department stores (WAEC 2006, Q46) (d)hypermarkets (WAEC 2014, Q13)

27. Which of the following is not required in the 36. Buying on impulse is encouraged by (a)co-
mail order business (a)warehouse (b)catalogue operative shops (b)Hawkers (c)supermarket (d)mail
(c)Display room (d)Post office (WAEC 2007, Q6) order firms (WAEC 2014, Q31)

28. A firm that accepts, sells and delivers goods by 37. Specialising in the sale of one line of goods is
post is a (a)supermarket (b)multiple stores the main feature of (a)supermarket (b)chain store
(c)department store (d)mail order business (WAEC (c)mail order firms (d)mobile shops (WAEC 2016,
2008, Q21) Q42)

29. Which of the following is mostly used by a 38. A retail cooperative society aims at (a)hoarding
mail order business to sell goods (a)posters manufactured goods (b)cutting off profits of the
(b)catalogues (c)journals (d)magazines (WAEC middlemen (c)lending money to members at a low
2008, Q24) interest rate (d)encouraging members to save
money
30. One roof containing a number of shops is
(a)tied shop (b)mail order firms (c)department store
(d)chain store (WAEC 2010, Q8)

31. Catalogues are mostly used by (a)chain Stores

(b)department stores (c)mail order firms
(d)supermarket (WAEC 2010, Q13)

THEORY 5. Give four disadvantages of Mail Order business

(WAEC 2001, Q4b)
1. Describe any four features of a multiple shop
(WAEC 1993, Q1a) 6. Explain five advantages of large scale retailing
(WAEC 2007, Q2a)
2. Give three examples of large scale retail outlets
(WAEC 1996, Q1b) 7. State five characteristics of; a. Department stores
b. Supermarket (WAEC 2007, Q2b)
3. State five features of a supermarket (WAEC
2000, Q5b) 8. Write short notes on the following a.
Supermarket b. Department stores c. Chain Stores
4. State six distinguishing features of a mail order (WAEC 2008, Q2)
firm (WAEC 2001, Q4a)
9. What is Mail order business? (WAEC 2013, Q3)
10. Define a multiple shop (WAEC 2014, Q2a) 12. State three advantages and three disadvantages
of a multiple shop (WAEC 2014, Q2c)
11. State three features of a multiple shop (WAEC
2014, Q2b) 13. State six reasons why supermarkets are popular
with shoppers

MODERN TRENDS IN RETAILING

1. When a motor dealer undertakes routine cheque (e)provide a means of identifying the holder
maintenance of customers' vehicles, he is offering (WAEC 1996, Q6)
(a)self-service (b)pre-sales service (c)after sales
service (d)automobile service (e)free service 9. Which of the following is a pre-sales service to
(WAEC 1992, Q11) the customers (a)installation of a product
(b)provision of credit facilities (c)maintenance of
2. Which of the following has the main objective to products for a period of time (d)transportation and
differentiate between similar products from delivery services (e)acceptance of damaged goods
different manufacturers (a)branding (b)wrapping (WAEC 1998, Q15)
(c)packaging (d)Mark up (e)Display (WAEC 1992,
Q12) 10. Which of the following is not connected with
after sales services (a)installation (b)granting trade
3. A method of retailing whereby customers can discount (c)providing spare parts (d)repairing of
make their purchases without the help of an products (e)replacing damaged goods (WAEC
assistant or cashier is called (a) impulse buying 1998, Q18)
(b)one stop shopping (c)self-service (d)automatic
vending (e)auction sales (WAEC 1992, Q56; 1995 11. Which of the following can be sold through a
Q67, 2016 Q25) vending machine (a)cigarettes (b)shorts
(c)handbags (d)shoes (WAEC 1999, Q38)
4. The use of vending machines in retailing is
hindered in a developing economy owing to? A. 12. Which of the following makes sales possible
poor distribution network B. low level of education without a sales attendants (a)telex machine (b)fax
C. ineffective communication system D. lack os machine (c)vending machine (d)franking machine
steady power supply (WAEC 2004, Q15)

5. The major components of modern retailing 13. Which of the following trends in retailing
include? A. branding, doorstep selling and provides the convenience of shopping without cash?
customer stimulation B. branding, sales promotion (a)automatic vending (b)self-service (c)Credit
and mail order C. chain store, customer stimulating cards (d)window display (WAEC 2006, Q22)
and doorstep selling D. branding, supermarkets and
14. Which or the following is not a feature of self-
after sales service (JAMB 2009)
service store? (a)It is found mainly in urban areas
6. A trend in retailing which enables consumers to (b)it offers steady employment opportunities
have free access to different products is? A. after- (c)goods carry price tags (d)it operates on a large
sales services B. branding C. self-services D. floor space (WAEC 2007, Q29)
vending machine (JAMB 2010)
15. The process of making goods attractive and
7. The retail of goods through currency operated easy to handle is (a)branding (b)merchandising
machines is known as (a)mail order business (c)packaging (d)labelling (WAEC 2008, Q6)
(b)automatic vending (c)party selling (d)impulse
16. Which of the following is not a pre-sale service
buying (e)merchandising (WAEC 1994, Q56)
(a)repair and maintenance work (b)providing
8. The primary purpose of credit cards is to detailed information about the goods to be
(a)obtain goods without paying cash on the spot purchased (c)demonstrating the use and
(b)obtain a loan from a bank (c)Obtain a loan from performance of the products to be sold (d)setting
a trader (d)persuade a businessman to cash a
up facilities for storing the products to be bought (c)automatic vending (d)loss leader (WAEC 2014,
(WAEC 2011, Q4) Q38)

17. A system of buying goods from a machine is

known as (a)impulse buying (b)branding
THEORY 4. Identify two advantages and two disadvantages
of automatic vending (WAEC 2006, Q10b)
1. Give four reasons why retail shops adopt self-
service (WAEC 2005, Q5a) 5. List and explain six trends in retailing (WAEC
2003, Q2b)
2. Explain six facilities that a real shop should have
to encourage self-service (WAEC 2002, Q5b) 6. What is a vending machine? (WAEC 2015, Q2a)

3. Explain the following and give three benefits of 7. List four features of a self-service shop (WAEC
each a. Branding b. After sales service c. Self 2016, Q2a)
service d. Vending machine (WAEC 2005, Q7)
8. State four disadvantages of a self-service shop
(WAEC 2016, Q2b)

WHOLESALE TRADE

1. Warehousing is one of the functions of the agent (e)allowance to ensure delivery of goods by
(a)wholesaler (b)retailer (c)chamber of commerce commission agent (WAEC 1995, Q15)
(d)Ministry of Trade and Industry (e)Export
Promotion (WAEC 1989, Q70) 7. Which of the following functions of the
Wholesaler helps to stabilise prices (a)financing
2. A merchant wholesaler is one who (a)takes title (b)advice to retailers (c)provision of credits
to the goods he sells (b)does not own the goods he (d)advertising (e)warehousing (WAEC 1997, Q12)
sells (c)earns a commission for serving an agent
(d)sometimes makes retail sales (e)engages in 8. Who among the following is not an agent
merchandising (WAEC 1991, Q54) (a)broker (b)factor (c)jobber (d)manufacturer’s
representative (e)auctioneer (WAEC 1997, Q15)
3. A del credre agent is distinguished from other
agents in that he (a)is a partner in a trading firm 9. An agent who takes possession of goods and
(b)works for the principal on commission basis sells in his own name but does not guarantee
(c)is a middleman in a transaction involving two or payment is known as (a)del credre agent (b)General
more people (d)usually guarantees payment in any agent (c)broker (d)factor (e)special agent (WAEC
transaction (e)is a dealer on the stock exchange 1997, Q83)
(WAEC 1992, Q24)
10. A mercantile agent having title of goods in his
4. A person selling goods belonging to another possession is known as (a)factor (b)broker
person in his own name and receives commission is (c)jobber (d)auctioneer (e)stag (WAEC 1998, Q48)
a (a)wholesaler (b)retailer (c)sole trader (d)factor
11. Which of the following have lien on goods in
(e)merchant (WAEC 1993, Q40)
their possession until their commission is paid
5. Which of the following takes possession of (a)brokers (b)factors (c)auctioneer (d)wholesale
goods and sells in his own name (a)factor (b)del merchant (WAEC 1999, Q44)
credre agent (c) auctioneers (d)broker (e)special
12. Which of the following is not a service
agent (WAEC 1994, Q87, 2001, Q28)
rendered by the wholesaler to the Manufacturer
6. Del credere commission is an (a)allowance paid (a)warehousing (b)quality control (c)financing
to a supplier (b)extra allowance paid for (d)Bulk breaking (WAEC 2001, Q29)
guaranteeing recovery of debts (c)allowance paid
13. The extra commission for pledging full
to all commission agents (d)allowance paid to an
settlement of the purchase price of goods is given
to (a)del credre agent (b)factor (c)broker (d)jobber commission proportionate to the value of the
(WAEC 2001, Q30) transaction is called a (a) broker (b)commissioned
agent (c) del-credere agent (d) factor (e) speculator
14. Which of the following services is not offered (NECO 2005)
to retailers by wholesalers (a)keeping them
informed on the demands of consumers (b)keeping 24. The type of wholesaler that combines selling,
them informed of a new products (c)offering a delivery and collection in one operation is
wide range of products (d)granting credit (WAEC (a)specialist wholesaler (b)rack jobber (c) drop
2008, Q17) shipment (d) truck wholesaler (JAMB 2016)

15. The completion of the production process by 25. Which of the following conditions may make
grading and branding of goods is a function of the the manufacturer sell directly to the consumer?
(a)transporter (b)wholesaler (c)retailer (d)consumer (a)break in communication (b)inaccessibility of the
(WAEC 2011, Q45) wholesaler’s warehouse (c)the nature of the
commodity involved (d)inadequate transport
16. A person who earns extra commission for facility (e)trade imbalance (WAEC 1989, Q48)
guaranteeing debts is a (a)factor (b)broker
(c)commission agent (d)del credre agent (WAEC 25. The manufacturer will bypass the wholesaler
2013, Q6) and the retailers in the distribution of his products
if the (a)demand is widespread (b)wholesaler and
17. The function of a merchant wholesaler is to retailer lack office accommodation (c)volume of
(a)buy in bulk, store and sell to retailers as desired production is high (d)the product make-up and use
(b)possess title to the goods, store and sale to are highly technical (e)manufacturer has no
retailers (c) bring buyers and sellers together (d) warehouse (WAEC 1991, Q48)
find markets for producers' finished goods (JAMB
2000) 26. Who among the following is not a middleman?
(a)retailer (b)broker (c)factor (d)consumer
18. What is the major function of the wholesaler? (e)wholesaler (WAEC 1991, Q89)
(a) buying from small-scale producers and selling
to exporters (b)buying in bulk and selling in small 27. Manufacturing ends when goods (a)are
quantities (c) granting of credit facilities to retailers advertised to the consumers (b)and services are
(d) providing information to manufacturers on used by producers (c)are packed and labelled (d)are
market situation (JAMB 1994) sold in the market (e)reach the final users (WAEC
1992, Q30, 2016, Q48)
19. The merchant wholesaler is referred to as
(a)del-credere agent (b) a broker (c) rack jobber 28. Which of the following is not a sound argument
(d)a factor (JAMB 2 0 0 1) for the Elimination of the wholesaler (a)large
retailers can buy from producers (b)retail
20. A wholesaler who possesses the title of goods cooperative societies can jointly buy in bulk
he sells is known as? (a) a merchant wholesaler (c)prices are lowered when the wholesaler is
(b)a multiple wholesaler (c) a general wholesaler eliminated (d)some manufacturers prefer to
(d)an agent wholesaler (JAMB 2002) distribute branded goods (e)the retailers buys and
stores goods until they are demanded (WAEC 1992,
21. Wholesalers can be divided into? A. sales agent
Q91)
and brokers B. full service C. cooperative
wholesale society and limited service wholesalers 30. Which of the following comes last in the chain
D. merchant wholesaler and agent middlemen of distribution? The (a)consumer (b)manufacturer
(JAMB 2005) (c)retailer (d)wholesaler (e)agent (WAEC 1993, Q4,
2011, Q10, 2013, Q12)
22. One of the functions of the wholesaler is to? (a)
forecast prices (b) reduce prices of goods 31. Who among the following comes first in the
(c)promote sales (d) analyse sales periodically channel of distribution? (a)consumer (b)retailer
(JAMB 2009) (c)consignor (d)manufacturer (e)wholesaler
(WAEC 1997, Q16)
23. A wholesaler who acts as an agent on behalf of
the owner of the goods in buying or selling fora
32. Which of the following is the most suitable 37. Who among the following is a middleman
channel of distribution for technical goods (a)manufacturer (b)agent (c)insurer (d)consumer
(a)manufacturer - retailer - consumer (WAEC 2006, Q37)
(b)manufacturer - wholesaler - retailer - consumer
(c)manufacturer - wholesaler - consumer 38. Manufacturer may sell goods to consumers
(d)manufacturer - consumer (WAEC 1999, Q39) where goods are I. Made to customers’
specifications II. Advertised by the manufacturers
33. Which of the following is the best channel foe III. Perishable IV. Highly technical V. Widely
the sale of an aircraft? (a) Producer - wholesaler - demanded (a)I, III and IV only (b)I and III only
consumer (b)producer - retailer - consumer (c)III, IV and V only (d) III and IV only (WAEC
(c)producer - consumer (d)producer - wholesaler - 2011, Q13)
retailer - consumer (WAEC 2003, Q7, 2017, Q17)
39. The distribution of goods creates (a)time utility
34. Which of the following requires the services of (b)Place Utility (c)form utility (d)possession Utility
middlemen (a)technical goods (b)expensive goods (WAEC 2014, Q35)
(c)Convenience goods (d)perishable goods (WAEC
2003, Q21) 40. The path through which a product moves from
the manufacturer to the consumer is a (a)channel of
35. Manufacturers sell directly to consumers when communication (b)line of production (c)means of
they (a)want to make profit (b)wish to eliminate all production (d)channel of distribution (WAEC 2018,
transport costs (c)live far away from them (d)deal Q15)
in perishable goods (WAEC 2004, Q17)
41. The role of a wholesaler in the channel of
36. Which of the following will not be considered distribution is to? (a)produce goods in large
in choosing a channel of distribution (a)nature of quantities and sell in small quantities (b) buy goods
products (b)preference of consumers (c)volume of directly from the manufacturers (c) buy goods in
sales (d)quality of products (WAEC 2005, Q19) large quantities and sell in small quantities (d) sell
goods directly to the consumers (JAMB 2006)

THEORY 7. In a tabular form, distinguish in six ways the

differences between the wholesaler and the retailers
1. Explain the features of the following agents a.
Factor b. Broker c. Del credere agent d. Auctioneer 8. State any five channels of distribution for
(WAEC 1998, 4b) consumer goods (WAEC 1995, Q2a)

2. State five functions performed by the wholesaler 9. Explain five factors to be considered before
in the channel of distribution (WAEC 2002, Q2a) choosing a particular channel (WAEC 1995, Q2b)

3. State six functions of wholesaler to 10. Illustrate any four channels of distribution of
manufacturers (WAEC 2006, Q1a) manufactured goods (WAEC 1998, Q8a)

4. State two distinguishing features between each 11. Explain the statement "the longer the channel,
of the following a. A factor and a broker b. A the higher the price " (WAEC 1998, Q8b)
commission agent and a del credre agent (WAEC
2013, Q7b) 12. Explain five factors that encourage the
elimination of middlemen from the channel of
5. State four functions of a wholesaler to a retailer distribution (WAEC 2002, Q2b)
(WAEC 2016, Q3a)
13. What is channel of distribution (WAEC 2012,
6. Mr Touray wants to establish a retail shop for the Q3a)
sale of consumer goods. Explain five ways a
wholesaler can aid Mr. Touray's business (WAEC
2016, Q7b)
FOREIGN TRADE

1. If a businessman imports stock fish with a view 11. Shipping services rendered by Nigeria to the
of exporting them to other countries, this form of Gambia would be classified as (a)invisible imports
trade is known as (a)invisible trade (b)entrepot (b)invisible export (c)visible imports (d)visible
trade (c)export trade (d)import trade (WAEC 1989, exports (WAEC 2011, Q15)
Q2)9Q
12. Which of the following distinguishes home
2. Which of the following is an invisible export of trade from foreign trade (a)payments arr easily
Nigeria? (a)shipping services Nigeria renders to arranged (b)taxes are levied (c)goods have to be
Russia (b)Nigeria's crude oil to London (c)Banking warehoused (d)middlemen are not required
services rendered to America residents in Nigeria (WAEC 2011, Q29)
(WAEC 1989 Q, 38)
13. Foreign trade is concerned with (a)Exchange
3. Entrepot trade refers to (a)importing for of goods and services among companies (b)buying
domestic consumption (b)importing for industrial and selling of imported goods (c)Exchange of
use (c)exporting for factory use (d)importing for re- goods and services among citizens (d)buying and
export (WAEC 1990, Q34, 2003, Q22) selling of goods and services among countries
(WAEC 2014 Q34)
4. Foreign trade is also known as (a)domestic trade
(b)international trade (c)counter trade (d)entrepot 14. The insurance services rendered to a foreign
trade (e)Export trade (WAEC 1993, Q72) shipping company are treated as (a)invisible export
(b)invisible imports (c)visible export (d)balance of
5. A trade which many countries exchange goods trade (WAEC 2015, Q4)
and services is called (a)bilateral trade (b)entrepot
trade (c)economic Union (d)multilateral trade 15. An example of an invisible item of trade is
(e)counter trade (WAEC 1995, Q18, 2008, Q9) (a)oil (b)shipping (c)machinery (d)textile (WAEC
2017, Q21)
6. A nation's earning from tourism are classified as
(a)visible exports (b)invisible export (c)visible 16. Multilateral trade is carried out (a)between two
imports (d)invisible imports (e)entrepot trade items countries only (b)within many countries (c)among
(WAEC 1996, Q47) many countries (d)between neighboring countries
only (WAEC 2018, Q12)
7. The services rendered by Nigeria Airways to
foreign companies are part of Nigeria's (a)visible 17. A firm which imports goods with the view of
exports (b)visible imports (c)invisible imports re-exporting them is engaged in (a)bilateral trade
(d)invisible exports (e)entrepot trade (WAEC 1997, (b)entrepot trade (c)multilateral trade (d)counter
Q17) trade (WAEC 2019, Q18)

8. Importing goods into a country for re-exporting 18. Which of the following accurately describes the
is known as (a)home trade (b)retail trade basis for International Trade (a)terms of trade
(c)entrepot trade (d)counter trade (WAEC 2007, (b)absolute cost advantage (c)comparative cost
Q23) advantage (d)division of labour (e)specialisation
(WAEC 1995, Q99)
9. The import of foreign produced goods to be re-
exported is known as (a)domestic trade 19. Which of the following is a disadvantage of
(b)wholesale trade (c)entrepot trade (d)counter foreign trade? (a)encourages dumping (b)makes
trade (WAEC 2010, Q7) available the products that a country cannot
produce (c)widens the world market (d)encourages
10. If Karamo who lives in the Gambia imports specialisation (e)makes possible the transfer of
goods from Senegal and later sells them in Guinea- technology (WAEC 1996, Q69)
Bissau. Karamo is engaged in (a)multilateral trade
(b)counter trade (c)entrepot trade (d)export trade 20. Which of the following describes the reason for
(WAEC 2011, Q12) International Trade (a)balance of payment
(b)comparative cost advantage (c)absolute cost
advantage (d)balance of trade (WAEC 2010, Q4)
THEORY 4. What five benefits does Nigeria derives from
engaging in international trade? (WAEC 1992, Q1a)
1. What is foreign trade (WAEC 2006, Q1a)
5. State and explain five problems likely to be
2. Explain four ways by which foreign trade is faced by a businessman who wants to sell his goods
different from home trade (WAEC 2006, Q1b) overseas (WAEC 1992, Q1b)

3. Explain the following a. Entrepot trade b. Import

trade c. Invisible trade (WAEC 2008, Q5a)

6. State five disadvantages of foreign trade (WAEC

2010, Q5b)
FOREIGN TRADE II

1. A deficit in the balance of trade occurs when (c)import License (d)embargo (e)quota (WAEC
(a)visible exports exceed visible imports (b)total 1991, Q36)
payment exceed visible exports (c)visible imports
exceed visible exports (d)invisible exports exceed 8. A trade deficit means that (a)the balance of true
invisible imports (e)visible export exceed invisible is favourable (b)exports are less than imports
imports (WAEC 1989, Q40) (c)imports are less than exports (d)exports are
decreasing (e)the balance of payments is
2. Exchange in the international market which does unfavourable (WAEC 1991, Q55)
not involve the use of money as a medium is
known as (a)foreign aid (b)counter trade 9. The relationship between a country's total
(c)monetization (d)foreign trade (e)entrepot trade receipts and payments in international trade in a
(WAEC 1989, Q82) given year is called (a)balance of trade (b)balance
of payment (c)terms of trade (d)balance of current
3. Which of the following could not account for a account (e)balance of capital account (WAEC 1991,
favourable Balance of payment (a)High capital Q100)
repayment (b)High debt service repayment
(c)higher imports than exports (d)higher exports 10. The difference between the value of imports
than imports (e)higher public spending (WAEC and exports for a particular year is known as
1990, Q35) (a)balance of payment (b)balance sheet (c)terms of
trade (d)balance of trade (e)terms of payment
4. The term capital account in international trade (WAEC 1992, Q44)
includes I. Foreign investment II. Long term
lending III. Short term lending IV. Foreign 11. In foreign trade, a country specialises in the
exchange reserve V. Short term borrowing (a)I & II production of a commodity in which it has (a)High
only (b)III and IV only (c)II, III & IV only (d)II & production potential (b)the greatest relative
III only (e)I & III only (WAEC 1990, Q76) advantage (c)a large market (d)political influence
(e)the highest relative cost (WAEC 1992, Q46)
5. Which of the following is not a reason for
imposing a tariff? To (a)correct an adverse balance 12. Import duties are imposed for the following
of payment (b)raise revenue for the government reasons except to (a)raise revenue from income tax
(c)encourage imports (d)protect infant industries (b)improve the balance of trade (c)protect infant
(e)encourage the consumption of home produced industries (d)maintain employment (e)prevent
goods (WAEC 1990, Q81) dumping (WAEC 1992, Q92)

6. The practice of selling goods in foreign markets 13. Which of the following measures cannot be
at less than the cost price is known as (a)fair used to correct a balance of payment deficit in
trading (b)over invoicing (c)smuggling (d)hedging Nigeria (a)imposing import licences (b)devaluing
(e)dumping (WAEC 1991, Q26) the naira (c)placing total ban on some commodities
(d)increasing import duties (e)increasing imports
7. Which of the following is not a method of trade (WAEC 1993, Q93)
restriction (a)Exchange Control (b)stock exchange
14. The rate at which one country's products are payments (d)current account balance (e)terms of
exchanged for the products of another is (a)balance trade (WAEC 1996, Q2)
of trade (b)balance on current account (c)terms of
trade (d)balance of payments (e)foreign exchange 23. Which of the following may be used to restrict
(WAEC 1994, Q38) imports I. Bill of lading II. Specific licenses III.
Foreign exchange rationing IV. Letter of credit V.
15. The practice of selling goods in foreign Custom duties and tariffs (a)I, II and V only (b)II,
countries are at lower prices than obtainable in the III and V only (c)III, IV and V only (d)I, II and IV
exporting country is known as (a)hedging (b)black only (e)II, III and IV only (WAEC 1996, Q53)
market (c)dumping (d)speculation (e)gambling
(WAEC 1994, Q44) 24. Which of the following is not a reason for
16. A country resorts to counter trade when (a)It imposing import duties? To (a)improve balance of
does not belong to any cartel organisation (b)its trade (b)improve quality of goods for consumers
imports are less than exports (c)it wants to raise (c)Obtain revenue (d)protect infant industries
domestic production (d)its foreign exchange is not (e)prevent dumping (WAEC 1996, Q83)
sufficient to pay for imports (e)it desires to be
25. Dumping means selling goods abroad (a)at a
known abroad (WAEC 1994, Q75)
lower price than in the home market (b)at a higher
17. Which of the following is classified as an price than in the home market (c)at the same price
invisible trade in the balance of payments (a)export as in the home market (d)on credit I'm the foreign
of goods (b)import of machinery (c)gifts (d)sales of market (e)for ready cash in the foreign market
assets (e)salaries of expatriates (WAEC 1995, Q16, (WAEC 1996, Q99)
2012 Q11)
26. The difference between the total amount owed
18. A refund usually granted for goods imported to a country and the total amount owed by it is
and later re-exported is called (a)commission (a)trade surplus (b)terms of trade (c)trade gap
(b)discount (c)customs drawback (d)dock due (d)balance of trade (e)balance of payment (WAEC
(e)demurrage (WAEC 1995, Q21,2008 Q20) 1997, Q50)

19. When the balance of trade is unfavourable 27. A restriction on the quantity of a commodity
which or the following conditions prevails? that could be imported is known as (a)licence
(a)export exceeds imports (b)imports exceed (b)price control (c)quota (d)tariff (e)ban (WAEC
exports (c)customs duty is high (d)invisible exports 1997, Q94)
exceeds visible imports (e)the value of money falls
28. One way of importing goods without the use of
(WAEC 1995, Q23)
foreign exchange is through (a)Exchange Controls
20. Terms of trade refers to (a)agreement between (b)entrepot trade (c)quota (d)tariffs (e)counter trade
two trading countries (b)conditions attached to (WAEC 1998, Q76)
specific trade transactions (c)the relationship
29. Balance of trade is said to be favourable when
between export and import prices (d)the difference
(a)visible imports exceed visible exports
between export and import prices(e)all payments
(b)invisible exports exceed visible imports
made to other countries and receipts from them
(c)invisible imports exceed visible exports
(WAEC 1995 Q27, 2004, Q21)
(d)visible exports exceed visible imports (e)visible
21. Restricting the quantity of goods which may be exports exceed invisible imports (WAEC 1998,
imported into a country is achieved through Q77)
(a)dumping (b)tariffs (c)terms of payments
30. When a country's total visible and invisible
(d)terms of trade (e)quotas (WAEC 1995, Q72)
exports are more than its visible and invisible
22. The difference between the total amount of imports, it has (a)favorable balance of payment
money received by a country and the total amount (b)favourable Balance of trade (c)unfavorable
paid to other countries with a given period is the balance of trade (d)unfavorable balance of payment
(a)trade gap (b)balance of trade (c)balance of (WAEC 2000, Q15)
31. Which of the following is not used to correct an 41. Taxes on imported foreign goods are also
adverse balance of payment (a)increasing imports known as (a)excise duties (b)tariffs (c)ad valorem
(c)decreasing export (d)devaluation (WAEC 2001, taxes (d)dock dues (WAEC 2011, Q11)
Q31)
42. The relationship between all imports and
32. An unfavourable balance of trade for a country exports of a country is known as (a)terms of trade
means that her (a)export exceed imports (b)visible (b)balance of trade (c)balance of payment (d)terms
imports exceed visible exports (c)invisible exports of payment (WAEC 2012, Q4)
exceed visible imports (d)imports and Exports are
equal (WAEC 2002, Q19) 43. A tariff refers to (a)fees imposed on contraband
goods (b)fees paid on exports (c)taxes imposed on
33. If a country wishes to discourage imports, it imported goods (d)taxes paid on home made goods
(a)removes quota (b)encourages free trade (WAEC 2013, Q39)
(c)imposes tariffs (d)subsidizes exports (WAEC
2004, Q47) 44. A physical restriction placed on the quantity of
goods that can be imported is (a)a ban (b)a quota
34. Terms of trade is the (a)rate at which the central (c)an excise duty (d)an import tax (WAEC 2013,
bank discounts first class bills (b)rate at which Q42)
country's export exchange for its imports
(c)expected rate of returns of an investment (d)rate 45. A country is said to achieve a trade surplus
of payment for goods and services purchased when total (a)visible exports exceed total visible
(WAEC 2005, Q22) imports (b)invisible export exceeds total invisible
imports (c)visible exports exceed total invisible
35. An outright prohibition on the importation of imports (d)visible imports exceeds total visible
goods to a country is referred to as (a)quota exports (WAEC 2013, Q43)
(b)tariffs (c)embargo (d)devaluation (WAEC 2006,
Q18) 46. A country's deliberately decision to reduce the
value of her currency is called (a)deregulation
36. The reduction in the value of a country’s (b)inflation (c)devaluation (d)revaluation (WAEC
currency in relation to other countries’ currencies is 2013, Q36, 2015 Q77)
(a)devaluation (b)inflation (c)deregulation
(d)fluctuation (WAEC 2006, Q42) 47. The ratio between a country's exports and her
import prices is the (a)balance of trade (b)balance
37. The rate at which a country's import exchanges of payments (c)terms of trade (d)Exchange rate
for its exports is known as (a)terms of trade (WAEC 2014, Q6)
(b)balance of trade (c)Rate of exchange (d)terms of
exchange (WAEC 2007, Q8) 48. Balance of trade deficit may be caused by
(a)revaluation of currency (b)sales of foreign
38. Which of the following cannot be used to reserves (b)sales of foreign reserves (c)unrestricted
regulate importation (a)import quota (b)import exports (d)unrestricted imports (WAEC 2017, Q50)
License (c)imposition of embargo (d)increase of
excise duty (WAEC 2008, Q20) THEORY

39. If a country devalues its currency, there would 1. Give the meaning of each of the following a.
be (a)reduction in imports (b)Reduction in exports Balance of trade b. Balance of payment (WAEC
(c)Increase production locally (d)increase in 1990, Q10 2007, Q3a)
standard of living (WAEC 2009, Q14)
2. Describe four ways by which an adverse balance
40. The tax paid on goods produced within a of payment may be corrected (WAEC 1990, Q10b)
country is known as (a)Import Duty (b)excise duty
3. Describe five measures each which government
(c)advalorem duty (d)customs drawback (WAEC
may take to a. Restrict imports b. Promote exports
2009, Q18)
(WAEC 1991, Q2a, b, 2002, Q6a&b)
3. Explain five reasons why tariffs are imposed 7. Country X is facing a situation where its total
(WAEC 2000, Q3a) payment to other countries is greater than its total
earnings from abroad a. State the term that relates
4. List and explain six methods used in correcting to the above situation b. Explain six measures that
an adverse balance of payment (WAEC 2007, Q3b) the country could take to correct the situation
(WAEC 2019, Q6)
5. Explain counter trade (WAEC 2008, Q5ai)

6. List five reasons countries introduce restrictions

in foreign trade (WAEC 2019, Q3b)

DOCUMENTS USED IN FOREIGN TRADE

1. A clean bill of lading is so called because (a)the certificate of origin (d) Pro-forma invoice (e)
color is pure white (b)it is not stained (c)it is a consular Invoice (WAEC 1990 Q98, 2002, Q25)
document of authority (d)it has no record of
damaged goods (e)it could be transferred to 9. A document issued by the government
anybody (WAEC 1989, Q34, 2016 Q16) authorizing a person to take a goods out of the
country for sale abroad is known as (a) export
2. A trader who wants to buy goods from another licence (b) import licence (c) dock warrant (d) bill
country sends (a) an advice note (b) an invoice (c)a of lading (e) consular invoice (WAEC, 1991 Q56)
bill of exchange (d) a statement (e) an indent
(WAEC, 1989 Q37) 10. A bill of exchange to which documents of title
are attached is known as (a) documentary credit (b)
3. Most payment in international trade are made by irrevocable bill (e) bill of lading (WAEC, 1991
means of (a) cash (b) bill of lading (c)personal Q74)
cheque (d)letters of credit (e) traveler’s cheque
(WAEC, 1989, Q39) 11. A document certifying that goods have been
entirely or largely manufactured in the county
4. A shipping company's document detailing the stated is called (a)certificate of origin (b) bill of
charges for carrying a particular cargo for a lading (c) letter of hypothecation (d) consular
specified journeys known as (a) dock warrant (b) invoice (e) ship manifest (WAEC, 1991 Q78)
freight note (c) carriage forward (d) weight note (e)
credit note (WAEC 1987 Q93) 12. Which of the following is a receipt for goods
deposited in a public warehouse (a) bond (b) mates
5. Charges paid by a ship for staying at a port receipt (c) warrant (d) warranty (e) bill of exchange
beyond agreed sailing time is called (a) profit (b) (WAEC, 1992 Q19)
interest (c) holding (d) carriage cost (e) demurrage
(WAEC, 1990 Q33) 13. A bill of lading is best Describe as the (a)
document of title to the on board a ship (b)
6. Which of the following document may be used certificate of value of goods on board (c) evidence
when an importer requires a longer period of credit of payment of custom duties (d) certificate of
before settlement? (a) letter of credit (b) goods (e) certificate of quality of goods imported.
documentary credit (c) bill of lading (d)sight of
draft (e) bill of exchange (WAEC ,1990 Q53) 14. Which of the following document in foreign
trade states where goods are manufactured? (a) bill
7. Which of the following document transfer title to of lading (b) consular invoice (c) certificate of
goods? (a)bill of exchange (b) treasury bill (c) bill origin (d) insurance certificate (e) bill of sight
of lading (d) bill of sight (e) bill of sale (WAEC, (WAEC, 1993 Q73)
1990 Q83)
15. A foreign bill of exchange is drawn by the (a)
8. A trade document signed by a representative of importer (b) shipping and forwarding agent (c)
the country to which goods are being sent is called importers bank (d) exporter (e) discount house
(a)export invoice (b) consignment note (e) (WAEC, 1993 Q94)
16. Which of the following is used to ascertain the invoice (d) export licence (e) letter of
correct value of imports for purpose of assessing hypothecation
customs duty (a) certificate of origin (b) open -
indent (c) bill of lading (d) chips manifest (e) bill 26. Which of the following are true of a bill of
of entry (WAEC 1995 Q19, 2012 Q24) lading I. It is a means of payment in foreign trade II.
it is a document of title to goods III. it is a contract
17. Which of the following is a declaration by the of carriage IV. it is usually drawn in triplicate (a) I
captain of a ship as to the cargo on board (a) bill of and III only (b) I, II and III only (c) II and III only
lading (b) mates receipt (c) ships manifest (d) bill (d) II and IV only (e) II,III and IV only (WAEC
of sight (e) dock warrant (WAEC 1995 Q22) 1997 Q49)

18. A refund usually granted for goods imported 27. Which of the following is issued to the exporter
and later re-exported is called (a) commission (b) or his agent when goods are been loaded in the ship
discount (c) custom drawback (d) dock due (e) (a) bill of exchange (b) mates receipt (c) ships
demurrage (WAEC 1995 Q21) manifest (d) bill of sight (e) customs declaration
form (WAEC 1997 Q54)
19. A document of title goods which also serves as
a contract between the seller and the shipping 28. Which of the following is a contract of carriage
company is known as (a) bill of lading (b) bill of and a document of title (a)indent (b)bill of lading
exchange (c)ship's manifest (d) bill of entry (e) (c)proforma invoice (d)bill of exchange (WAEC
letter of hypothecation (WAEC 1995 Q85) 1999, Q17)

20. The form given by the customs Authority to 29. Which of the following serves as a receipt for
enable an importer examine goods before the goods kept in a bonded warehouse (a)dock warrant
arrival of the bill of lading is known as (a)entry for (b)bill of sight (c)foul bill (d)dock due (WAEC
warehousing (b) certificate of origin (c) bill of sight 1999, Q43)
(d) bill of exchange (e) dock warrant (WAEC 1996
Q14) 30. A foreign bill of exchange is retired when it is
(a)paid before maturity (b)marked "accepted"
21. Which of the following is applicable to foreign (c)discounted (d)dishonored (WAEC 1999, Q50)
trade only (a)proforma invoice (b) insurance policy
(c) order (d) bill of exchange (e) consular invoice 31. Which of the following is an agreement to
(WAEC 1996 Q16) transport goods but not a document of title
(a)airway bill (b)bill of lading (c)charter party
22. A document signed by a custom officer of the (d)freight note (WAEC 2000, Q49)
exporting Country to confirm the country of the
goods is(a) an export invoice (b) a consular invoice 32. Which of the following documents is required
(c) a certificate of origin (d) a letter of when a bill of lading is not readily available to
hypothecation (e) a bill of lading (WAEC 1996 enable the goods to be landed (a)bill of exchange
Q16) (b)certificate of origin (c)consumer invoice (d)bill
of sight (WAEC 2003 Q25)
23. Which of the following enables customs
officers to correctly access import duties on goods 33. Which of the following is regarded as a
(a) pro-forma invoice (b) bill of exchange (e) document of title in foreign trade (a)consular
documentary credit (d) consular invoice (e) bill of invoice (b)bill of lading (c)bill of sight
lading (WAEC 1996 Q91) (d)certificate of origin (WAEC 2004, Q18, 2015
Q49)
24. A foreign order which instructs an agent to buy
certain goods at a particular place is called (a) letter 34. A banks undertaking to pay an exporter on
of credit (b) letter of attorney (c) open indent (d) behalf of an importer is a (a)documentary bill
closed indent (e) bill of lading (WAEC 1996 Q95) (b)letter of credit (c)letter of hypothecation (d)bill
of exchange (WAEC 2005, Q17)
25. The document stating the particular country
from which goods are imported is called (a) 35. Which of the following is only used in foreign
certificate of origin (b)export invoice (c) consular trade (a)letter of enquiry (b)certificate of origin
(c)proforma invoice (d)consignment note (WAEC 42. The document in which the full details of goods
2006, Q10) and the ship carrying the goods are contained is
known as (a)bill of exchange (b)bill of sight
36. Which of the following is used to show that (c)certificate of origin (d)shipping advice note
goods imported where produced in an ECOWAS (WAEC 2012, Q49)
member country (a)insurance policy (b)certificate
of origin (c)bill of lading (d)bill of exchange 43. In the absence of the bill of lading, which of the
(WAEC 2007, Q22) following is used to clear the goods (a)bill of sight
(b)dock warrant (c)certificate of origin (d)mate's
37. The content of a bill of lading does not include receipt (WAEC 2014, Q9)
the (a)name of the shipper (b)date and shipment
(c)name and destination of the vessel (d)demurrage 44. A document of title to goods written by the ship
payable (WAEC 2007, Q25) owner, specifying that certain goods are being
conveyed in the ship is a (a)bill of sale (b)bill of
38. Who is responsible for the payment of the in a sight (c)bill of entry (d)bill of lading (WAEC 2018,
documentary bill (a)exporter (b)importer Q25)
(c)importers bank (d)exporters Bank (WAEC 2007,
Q26) 45. A shipping document detailing the charges for
carrying a particular cargo for a specified voyage is
39. A document showing that a person has shipped (a)dock warrant (b)freight note (c)bill of lading
certain goods through a named ship is (d)mate's receipt (WAEC 2018, Q32)
(a)consignment note (b)ship manifest (c)bill of
entry (d)bill of lading (WAEC 2010, Q24) 46. Which of the following is not related to imports
(a)customs duties (b)excise duties (c)certificate of
40. The document which specifies the manufacturer origin (d)bill of lading (e)ships manifest (WAEC
from whom goods are to be imported is (a)closed 1995, Q95)
indent (b)open indent (c)export invoice
(d)consignment note (WAEC 2012, Q37)

41. The document which is used when a country

imposes ad valorem duties is (a)bill of lading
(b)consular invoice (c)certificate of origin (d)open
indent (WAEC 2012, Q40)

THEORY 4. Describe the following document and state one

use of each a. Bill of sight b. Manifest c. Waybill
1. Distinguish between the following F.O.B and (WAEC 2005, Q10)
C.I.F (WAEC 1989, Q6e)
5. Write the following abbreviations in full a.
2. Write short notes on the following showing their C.O.D b. C.I.F c. F.O.B (WAEC 2008, Q10a)
main uses of the following a. Shipping notes b.
Ship's manifest c. Bill of sight d. Dock warrant e. 6. Explain the following documents used in
Bill of entry (WAEC 1993, Q3) international trade a. Indent b. Bill of lading c.
Consular invoice d. Certificate of origin e. Bill of
2. List five documents used in foreign trade exchange (WAEC 2012, Q8)
(WAEC 1995, Q6a)

3. What is bill of lading? b. State six contents of a

bill of lading c. Distinguish between a clean bill of
lading and a foul bill of lading (WAEC 2001, Q6)

CUSTOMS AND EXCISE AUTHORITY

1. Customs duties are (a)excise duties (b)dock dues 2. Which of the following is statutorily responsible
(c)customary dues (d)custom officer’s duties for providing information and incentives required
(e)import tariffs (WAEC 1990, Q82) to increase the volume of Made-in-Nigeria goods in
the foreign markets (a)Association of Nigeria 8. Which of the following functions is not
Exports (b)Nigeria Export Promotion performed by the export promotion Council
Council(NEPC) (c)General Agreement on Tariffs (a)prevention of importation of harmful goods
and Trade (GATT) (d)Association of Nigerian (b)provision of credit facilities to exporters
Importers (e)Manufacturers Association of Nigeria (c)provision of technical advise to exporters
(WAEC 1991, Q49) (d)creation of export free zones (WAEC 2018, Q38)

3. Bonded warehouses are controlled by 9. Which of the following assists a Nigerian

(a)wholesale merchants (b)co-operative wholesale producer to participate in trade fairs and exhibitions
society (c)shipping and forwarding agents abroad (a)Nigeria Ports Plc (b)Shipping and
(d)Customs and Excise authority (e)freight clearing agents (c)Federal Airports Authority of
forwarded (WAEC 1992, Q50, 1999, Q41) Nigeria (d)Customs and Excise Authority
(e)Nigerian Export Promotion Council (WAEC
4. Goods in bonded warehouse are under strict 1998, Q75)
supervision of the (a)customs authority (b)ports
authority (c)importers (d)clearing agents THEORY
(e)exporter (WAEC 1996, Q29)
1. What are the functions of the Nigeria Export
5. Contraband goods seized by the Customs and Promotion Council (NEPC)? (WAEC 1990, Q6a,
Excise Authority are kept in the (a)ordinary WAEC 2020, Q6a)
warehouse (b)bonded warehouse (c)public
auctioneers store (c)state warehouse (d)private 2. What are the steps an exporter would take to
warehouse (WAEC 1998, Q40) export goods from the receipt of an indent to the
shipment of the goods? (WAEC 1990, Q6b)
6. Which of the following accesses duties payable
on imports and exports (a)Port Authority (b)Central 3. State five reasons for the presence of Customs
Bank (c)customs and Excise authority (d)export and Excise Authority at seaports (WAEC 2015,
promotion Council (WAEC 2006, Q21) Q4a, 2009, Q6a, 2000 Q3b, 1999 Q9c)

7. The collection of tariffs on imported goods is the 4. Outline five roles performed by the Customs and
function of (a)Ports Authority (b)Customs and Excise Authority towards the growth of commerce
Excise Authority (c)clearing and forwarding agents (WAEC 2020, Q6b)
(d)export promotion Council (WAEC 2012, Q15)

NIGERIA PORTS AUTHORITY

1. Which of the following is not part of the Airline (d)Nigeria Airports Authority (e)Nigeria
facilities provided by the Nigerian Ports Authority? Air force (WAEC 1995, Q49)
(a)dredging (b)Warehousing (c)collection of
custom duties (d)loading and offloading of cargoes 4. Which of the following is not a function of the
(e)offloading of cargos (WAEC 1990, Q36) Nigeria Airport Authority? (a)maintains the
building and tarmac (b)collect Airport taxes
2. Which of the following is not a function of the (c)controls movement of aircrafts (d)maintain all
Nigerian Ports Authority (a)caring and aircrafts in the country (e)maintains security
conservation of rivers, Ports and harbours (WAEC 1998, Q12)
(b)ensuring safe movement of ships (c)collecting
import and export duties (d)providing storage and 5. Which of the following is not a functions of the
warehousing services (d)maintaining law and order Ports Authority (a)ensuring safe movement of ships
in docks (WAEC 1992, Q93) (b)collecting import and export duties (c)providing
warehousing services (d)ensuring law and order in
3. The provision and administration of air traffic the harbour (WAEC 2001, Q33, 2011 Q34)
controls at Benin Airport is the function of
(a)Okada airline (b)Nigeria Airways (c)Central
6. Which of the following is not a function of the 9. The provision of adequate number of berths by
port authority (a)controlling pollution in rivers which ships can load and offload is the function of
(b)providing parking space for vehicles the (a)department of customs and Excise (b)Ports
(c)providing storage and warehousing facilities at Authority (c)Shipping and forwarding agents
the docks (d)providing facilities for water and (d)National shipping line (WAEC 2011, Q34)
traffic movement (WAEC 2004, Q20)
10. The facility which is not provider by the ports
7. The provision of dredging and dry dock facilities authority is (a)berths (b)warehouse (c)tarmac
at any sea port is the responsibility of (a)Ports and (d)cranes (WAEC 2017, Q8)
Harbours Authority (b) Customs and Excise
Authority (c)National Health Authority (d)National
Water and Electricity Authority (WAEC 2006, Q24)
THEORY
8. Which of the following arranges for the
1. Give five functions of the Nigeria Airports
conveyance of goods abroad (a)Ports Authority
Authority (WAEC 1996, Q2b, 2015 Q4b)
(b)Customs and Excise Authority (c)Airports
Authority (d)Export Promotion Council (WAEC 2. Explain six facilities a good seaport should have
2006, Q47) (WAEC 2007, Q9a)

BUSINESS ORGANISATION: SOLE PROPRIETORSHIP

1. The oldest and commonest form of business 7. Which of the following is not a feature of sole
organisation in Nigeria is (a)partnership (b)the trader (a)quick decision making (b)guaranteed
cooperative society (c)sole proprietorship (d)joint profits (c)unlimited liability (d)bearing losses alone
stock venture (e)public corporation (WAEC 1990, (WAEC 2006, Q49)
Q8)
8. Which of the following is a source of capital to a
2. Which of the following is not true of Sole sole proprietorship (a)loan from friends
proprietorship (a)It has a separate legal entity (b)it (b)admission of new members (c)issues of shares
has unlimited liability (c)it has slim chances of (d)issue of debentures (WAEC 2009, Q21)
expansion (d)the capital is small (e)it can convert
into a company (WAEC 1992, Q4) 9. Which of the following is not a disadvantage of a
one-man business (a)unlimited liability of owner
3. Which of the following is not a source of capital (b)life of a business limited to life of owner
to a sole proprietor (a)loan from friends (b)personal (c)personal control of business (d)difficulty in
savings (c)ploughing back profits (d)borrowing raising additional capital (WAEC 2010, Q29)
from relations (e)borrowing from debentures
(WAEC 1993, Q20) 10. Sole proprietorship is a form of business owned
by (a)an individual (b)two or more persons (c)a
4. One of the demerits of sole trading is (a)quick registered business subsidiary (d)the government
decision making (b)flexibility in operation (WAEC 2010 Q31)
(c)unlimited liability (d)pride of ownership (e)Ease
of commencement (WAEC 1996, Q93) 11. Which of the following is not a source of fund
for sole proprietorship (a)personal savings
5. Which of the following is not a source of finance (b)borrowing from friends and relatives
to a sole proprietor (a)trade credit (b)overdrafts (c)borrowing from financial institutions
(c)debentures (d)leasing of equipment (WAEC (d)government bonds (WAEC 2010, Q33)
2000, Q2)
12. Which of the following is an advantage to a
6. Which of the following is a feature of a sole sole trader (a)guaranteed profits (b)quick decision
proprietorship (a)issue of shares (b)limited liability making (c)unlimited liability (d)buying on credit
(c)limited capital (d)legal entity (WAEC 2001, Q9; (WAEC 2013, Q35)
2009 Q13)
13. One disadvantage of a sole proprietorship is (c)pride of ownership (d)unlimited sources of
(a)quick decision making (b)unlimited liability capital (WAEC 2018, Q9)
THEORY 3. Explain five advantages of a sole proprietor

1. Explain five characteristics of a sole 4. State five reasons why a sole proprietor will
proprietorship (WAEC 1999, Q5b) continue to survive despite the emergence of
companies
2. State five disadvantages of Sole Proprietorship

PARTNERSHIP

1. A partnership formed for banking business is (d)deed of partnership (e)deed of conveyance

made up of (a)2-20 members (b)2-30 members (WAEC 1993, Q23)
(c)2-40 members (d)2-50 members (WAEC 1989,
Q22) 8. Which of the following is drawn up as a guide to
the running of a partnership (a)deed of agreement
2. Which of the following statements is true of (b)partnership Act (c)Memorandum of association
limited partnership (a)every member is a limited (d)prospectus (e)articles of association (WAEC
partner (b)all members are general partners (c)all 1996, Q31; 1998 Q73)
members have limited liability (d)there is at least
one ordinary partner (e)limited and ordinary 9. The law governing the operations of companies
partners must be equal in number (WAEC 1989, and partnership in Nigeria (a)Nigerian companies
Q23) decree (b)Nigerian Partnership Act (c)Nigerian
Enterprises Promotion Decree (d)Companies and
3. Which of the following is not required for the Allied Matters Act (e)Sale of Goods Act (WAEC
dissolution of a partnership (a)expiration of the 1996, Q32)
partnership deed (b)termination of the venture
(c)one partner notifying the other of his intention to 10. A partner who does not play an active role in a
dissolve it (d)mutual consent of the partners business but contributes capital is a (a)secret
(e)order from the registrar of companies (WAEC partner (b)dormant partner (c)nominal partner
1989, Q24) (d)limited partner (e)general partner (WAEC 1996,
Q62; 1998 Q74)
4. A partnership agreement specifying the
relationship amongst partners is called (a)Article of 11. Which of the following is not a source of
association (b)Memorandum of association capital to a partnership? (a)buying on credit
(c)partnership Act (d)partnership deed (b)ploughed back profits (c)borrowing (d)shares
(d)certificate of incorporation (WAEC 1990, Q73) (e)personal savings (WAEC 1997, Q11)

5. Which of the following is true of limited 12. A business unit whose membership ranges from
partnership (a)all partners enjoy unlimited liability 2 to 20 is a (a)co-operative society (b)partnership
(b)the death of a partner prolongs the life span of (c)private limited company (d)public limited
the organisation (c)capital can be withdrawn company (e)public enterprise (WAEC 1997, Q73)
without the consent of other partners (d)all
13. Which of the following conditions may lead to
members are paid by the partners (e)a limited
the dissolution of a partnership (a)expiry of agreed
partner has no share in the management of the firm
time (b)termination of venture (c)one partner
(WAEC 1992, Q83)
becoming dormant (d)mutual consent of the
6. In a limited partnership, the liability of the partners (e)bankruptcy of partner (WAEC 1997,
partner is (a)pegged (b)unlimited (c)limited Q74)
(d)unpredictable (e)restricted (WAEC 1993, Q22)
14. The document which regulates the operation of
7. The rights, responsibilities and liabilities of each a partnership is known as (a)deed (b)articles of
partner are specified in the (a)Memorandum of association (c)partnership (d)certificate of trading
association (b)prospectus (c)articles of association (WAEC 1999, Q9)
15. Partners who allow their names to be used in (b)brewing and distribution of beer (c)designing
partnership but do not take part in the management and building of houses (d)assembling and
of the business are (a)active partners (b)limited marketing of vehicles (WAEC 2007, Q10)
Partners (c)General partners (d)nominal partner
(WAEC 2000 Q3) 25. Which of the following statements can be found
in a partnership deed (a)names of partners (b)nature
16. Which of the following businesses must have at of business (c)payment of tax (d)interest of capital
least one member with unlimited liability (a)limited (WAEC 2008, Q15; 2010, Q42)
liability company (b)limited partnership (c)nominal
partnership (d)public enterprise (WAEC 2001, Q8) 26. The relationship between partnerships is
stipulated in (a)Memorandum of association
17. Which of the following does not lead to the (b)articles of association (c)partnership deed
dissolution of a partnership (a)absence of deed of (d)certificate of incorporation (WAEC 2008, Q19)
partnership (b)withdrawal of a partner (c)incapacity
of any of the partner (d)completion of contractual 27. Okoni & Co. Law chamber is an example of
term (WAEC 2002, Q5) (a)sole proprietorship (b)partnership (c)co-
operative society (d)public limited company
18. A partner with an unlimited liability is known (WAEC 2008, Q22)
as a (a)dormant partner (b)nominal partner
(c)General partner (d)active partners (WAEC 2003, 28. Which of the following is not an advantage of
Q10) partnership (a)diversified managerial talents
(b)greater financial resources (c)freedom to
19. A partnership without a deed shares terminate business (d)Account is not made public
profit/losses (a)in the ratio of partners' capital (WAEC 2010, Q34)
(b)equally among the partners (c)proportionate to
patronage (d)proportionate to assets introduced 29. The "relationship that subsists between two or
(WAEC 2003, Q11; 2019, Q8) more persons carrying on a business with a view of
profit" is (a)co-operative society (b)partnership
20. Partnership form of a business is most (c)public limited company (d)credit union (WAEC
appropriate (a)where professionals are needed 2011, Q41)
(b)for non profit making ventures (c)where very
large capital is required (d)where the liability of 30. In limited partnership, the partners' (a) capital is
members is limited (WAEC 2005, Q10) limited (b)liability is limited (c)participation is
unlimited (d)ownership is unlimited (WAEC 2011,
21. A dormant partner is one who (a)does not work Q43)
hard (b)lent his name to the business (c)has limited
liability (d)does not partake in the running of the 31. A person who contributes money to a
business (WAEC 2006, Q2) partnership business and is also involved in its
general supervision is called (a)an active partner
22. In a limited partnership, one of the members (b)a limited partner (c)a dormant partner (d)a
must be (a)a general partner (b)a nominal partner nominal partner (WAEC 2014, Q44)
(c)an active partner (d)a dormant partner (WAEC
2006, Q 34) 32. A partnership is dissolved due to (a)liquidity of
the firm (b)death of an employee (c)insanity of a
23. Where a limited partner exists in a partnership partner (d)resignation of an employee (WAEC
(a)no active partner is needed (b)other partners 2016, Q26)
must be nominal (c)at least one ordinary partner
must be there (d)at least one member must be a 33. A partner whose only contribution to
legal practitioner (WAEC 2007, Q9) partnership is his name and goodwill is (a)an active
partner (b)a limited partner (c)a nominal partner
24. Which or the following is best organised as a (d)a sleeping partner (WAEC 2019, Q4)
partnership (a)drilling and marketing crude oil
THEORY partnership. Explain to Sule how such partnership
could be to their benefit (WAEC 1990, Q1) b. State
1. Akanni and Sule are sole proprietor. Akanni
proposed that their business be merged to form
ressons why Sule might be reluctant to accept the likely to derive b. State five provisions in the
proposal partnership deed (WAEC 2004, Q6)

2. Explain to a group of Sole Proprietors who wish 4. Compare a partnership and public limited
to form a partnership any seven problems they are company as business units under the following
likely to face (WAEC 2000, Q7a, b) b. State three headings (a)formation (b)ownership (c)raising of
conditions suitable for the formation of partnership capital (d)liability (e)transfer of shares
business (f)dissolution (WAEC 2008, Q1; 2014 Q1)

3. Adama and Awa have teamed up to form a 5. State five features of a partnership business
partnership business. Explain five benefits they are (WAEC 2011, Q2a)
9. Which of the following features of money
facilitates small transactions (a) portability (b)
MONEY durability (c) divisibility (d) scarcity (e)
recognisability (WAEC 1994 Q97)
1. Paper money originated in form of receipts given
by(a)money lenders (b)goldsmiths (c)bankers (d) 10. Which of the following Is a legal tender (a)
traders (e) thrift society (WAEC,1989 Q4) central bank cheque (b) bank note (d) bank draft (d)
travellers cheque (e)bill of exchange (WAEC, 1997
2. Which of the following is not a quality of money
Q75; 2007, Q36)
(a)divisibility (b) portability (c) Accessibility
(d)recongnizability (e) durability (WAEC, 1989 11. Which of the following shows the quality of
Q62) money (a) ability to represent both small and large
values (b) used for deferred payments (c) used as a
3.Which of the following is a function of money (a)
unit of account (d) facilitating exchange (e) serving
provision of double coincidence of wants (b)
as a store of wealth (WAEC, 1998 Q25)
durability (c) standard for deferred payment
(d)portability (e)divisibility (WAEC, 1990 Q51) 12. Note and coins are legal tender because they
are (a) printed by the Central Bank (b) backed by
4. The naira is a legal tender because It is
law (c) backed by gold (d) issued by all banks
(a)recognizable (b)backed by law (c) generally
(WAEC,1999 Q26)
acceptable (d) homogeneous (e) portable
(WAEC,1991 Q57) 13. Which of the following qualities of money is
generally undermined by inflation (a) stability (b)
5. Which of the following is not a function of
scarcity (c) durability (d) portability (WAEC, 1999
money (a) unit of account (b)store of value (c)
Q29)
determination of exchange rate (d) medium of
exchange (e) standard for deferred payment 12. Which of the following is not a function of
(WAEC, 1991 Q82) money It (a) is a medium of exchange (b)serves as
a store of value (c) is easily recognizable (d) makes
6. Which of the following is mostly is mostly used
deferred payments possible (WAEC, 2002, Q33;
in Nigeria for settling business transaction (a) bank
2018 Q24)
transfers (b) standing order (c) cheques (d) bank
note and coins (e) bank draft (WAEC, 1991 Q83) 13. The term legal tender refers to (a) coins and
bank notes (c) cheques and bank notes (d) poster
7. Cash is said to be legal tended because it (a) can
and money orders (WAEC, 2002 Q35; 2005 Q50)
be converted to money order (b)can be offered and
accepted for payment (c) is negotiable (d) also 14. Which of the following is not a function of
takes the form of bank draft (e)is portable (WAEC , money (a)double coincidence of wants (b)medium
1993 Q44) of exchange (c)measure of value (d)store of wealth
(WAEC 2005, Q47)
8. Which of the following must any form of money
passed in order to be generally acceptable (a) 15. Which of the following was not used as a
divisibility (b) mobility (c) durability (d) legality (e) medium of exchange by the early Europeans that
scarcity (WAEC, 1994 Q65)
came to West Africa (a)pounds and shillings medium of exchange (a)currency notes (b)cowries
(b)copper and manillas (c)iron bars (d)cowries (c)cheques (d)bank drafts (WAEC 2011, Q30)
(WAEC 2007, Q1)
18. The part of the money in circulation not backed
16. Which of these qualities guarantees keeping of up by gold is known as (a)Exchange equalisation
money for a long period (a)acceptability fund (b)fiduciary issue (c)notes and coins
(b)divisibility (c)durability (d)homogeneity (d)ordinary note issue (e)fictitious assets (WAEC
(WAEC 2010, Q32) 1991, Q92)

17. Before the advent of legal tender and credit

instrument, which of the following was used as a
THEORY 2. Explain what legal tender means (WAEC 2017,
Q7a)
1. Explain five ways in which the introduction of
money has solved the problem of barter system of 3. Explain any five types of money
trading (WAEC 2014, Q3b)
4. State four functions of money (WAEC 2021,
Q3a)

BANKS

1. Which of the following is not a means of (b)increase loan prospects (c)control the supply of
effecting payments through current account money and credits (d)check bank fraud
(a)cheques (b)standing order (c)giro system (e)encourage rural banking services (WAEC 1992,
(d)credit transfer (e)credit card (WAEC 1989, Q63) Q63)

2. An overdraft is usually granted to (a)savings 7. The difference between an overdraft and a loan
account holder (b)deposit account holder (c)current is that an overdraft (a)does not yield interest (b)is
account holder (d)loan account holder (e)fixed given to the savings account holder only (c)yields
deposit account holder (WAEC 1990, Q52; 1997, interest on total balance in the account (d)yields
Q7; 2017 Q19) interest only on the sum drawn (e)requires no
application by the customer before it is granted
3. A customer is granted overdraft by the bank (WAEC 1993, Q42)
subject to his operating a (a)savings account
(b)fixed deposit account (c)call-deposit account 8. Which of the following is more considered by
(d)current account (e)loans account (WAEC 1991, banks when granting loans to customers
Q42) (a)character of the customer (b)amount needed
(c)period of payment (d)amount of interest payable
4. Which of the following enhances the lending (e)purpose of the loan (WAEC 1994, Q46)
powers of commercial banks (a)High Bank rate
(b)increased cash reserve ratio (c)provision for bad 9. It is important for banks to maintain a high
and doubtful debts (d)decreased liquidity Ratio percentage of cash ratio in order to (a)make more
(e)increased capital base (WAEC 1991, Q58) profits (b)invest in long term ventures (c)encourage
more cash deposits (d)meet their customers'
5. The main similarity between commercial banks demand for cash at any time (e)lend to their
and other financial institutions is the (a)acceptance customers any time (WAEC 1994, Q92)
of customers’ deposit and making payments on
their behalf (b)financing of Balance of payments 10. Mr. Ojo borrowed #54,000 from a commercial
deficits (c)creating and destroying money (d)giving bank and deposited his life assurance certificate
credits to individuals or organisations (e)giving with the bank. The certificate deposited will serve
night safe facilities (WAEC 1992, Q21) as (a)a loan repayment (b)a current asset (c)an
interest charged (d)a collateral security (e)a part
6. Commercial banks deposits with the Central payment (WAEC 1995, Q38)
bank helps to (a)increase bank customers
11. Which of the following is not an acceptable transfer (b)credit transfer (c)certified cheque
collateral security of a bank loan (a)certificate of (d)Crossed Cheque (WAEC 2010, Q35)
occupancy (b)life assurance policy (c)lien on
deposit account (d)family building (e)warehouse 21. An overdraft is the (a)amount permitted to be
warrant (WAEC 1997, Q30) withdrawn in excess of one's deposit (b)excessive
cash withdrawn by commercial banks from central
12. Which of the following services is not rendered bank (c)Credit balance standing in the name of a
by commercial banks (a)business advice customer (d)special deposit made by commercial
(b)currency notes (c)accepting deposits (d)credit banks (WAEC 2011, Q24)
transfer (WAEC 2000, Q28)
22. Current account holders withdraw money by
13. Which of the following is not a financial means of (a)credit card (b)draft (c)withdrawal form
institution (a)commodity board (b)insurance (d)cheque (WAEC 2012, Q20)
company (c)clearing house (d)stock exchange
(WAEC 2000, Q24) 23. A written instruction by a current holder to his
bank to debit his account at regular intervals with a
14. The authority given to a bank to make regular specified amount for a given period is known as
payments on behalf of a customer for specific (a)standing order (b)money order (c)bank draft
purposes is known as (a)bank draft (b)credit (d)overdraft (WAEC 2012, Q24)
transfer (c)standing order (d)certified cheque
(WAEC 2001, Q20; 2009, Q9; 2010 Q20; 2019 24. The use of current account in business is
Q20) convenient because (a)a withdrawal can be made at
any time (b)deposits earn higher interest (c)loans
15. Which of the following is a creditor legally are always available (d)notices are necessary
bound to accept for settlement of a debt (a)bank before withdrawals (WAEC 2013, Q20)
drafts (b)bank note (c)money order (d)cheque
(WAEC 2001, Q23) 25. A fixed deposit account is beneficial to its
holder because (a)cheques can be issued to settle
16. The liquid assets of commercial banks are huge debts (b)customers can become shareholders
(a)treasury bills, bills of exchange and cash (b)cash, of the bank (c)its attracts higher interest rate (d)it
current account and other money bearing assets allows customers to overdraw their accounts
(c)deposit account and cash (d)cash only (WAEC (WAEC 2014, Q32)
2004, Q29)
26. Which of the following means of payment
17. The fee which the bank charges for services makes the bank both the drawer and the drawee
rendered to their current account customers is (a)standing order (b)bill of exchange (c)bank draft
(a)commission on turnover (b)bank rate (d)open cheque (WAEC 2015, Q9)
(c)minimum lending rate (d)interest (WAEC 2005,
Q8) 27. A proportion of the total deposit that a
commercial bank must keep as cash and
18. If a customer opens a deposit account with a convertible papers is (a)special interest (b)liquidity
bank, he will (a)receive a Crossed Cheque (b)be Ratio (c)interest rate (d)bank rate (WAEC 2019,
given a tally (c)be given a loan (d)receive interest Q25)
(WAEC 2008, Q41)
28. A customer who wishes to withdraw an amount
19. Which of the following is not a function of greater than the balance in his current account
commercial banks (a)collection of deposit (b)safe would apply for (a)a standing order (b)an overdraft
custody services (c)issuing of currency (d)agents of (c)a loan (d)a credit transfer (WAEC 2019, Q48)
payments (WAEC 2009, Q40)
29. Through which of the following does the
20. Which of the following is used for a single central bank carry out the monetary policy of the
payment of many people at the same time through a country (a)discounting bills (b)bank rate
bank instead of writing separate cheques (a)debit (c)granting overdrafts (d)acting as lender of last
resort (e)acting as banker to commercial banks 37. Which of the following central bank functions
(WAEC 1989, Q61) inspires confidence in the banking system in case
of emergency (a)issuing of currency (b) lender of
30. The technique of controlling money supply last resort (c)banker's bank (d) banker to the
through the purchase and sale of government bonds government (WAEC 2004, Q31)
is called (a)bond control technique (b)Exchange
control technique (c)open market operations 38. Which of the following is not a function of the
(d)price control mechanism (e)span of control Central bank (a)banker to the government
technique (WAEC 1991, Q38) (b)banker's bank (c)issuing of currency (d)granting
loan to the public (WAEC 2007, Q34)
31. Which of the following is not used by the
Central bank to restrict lending by commercial 39. The central bank monetary policy instrument
banks (a)management of national debt (b)reserves by which it buys and sells treasury bills is known
requirement (c)open market operations (d)special as (a)open market operations (b)bank rate (c)cash
deposit (e)cash ratio (WAEC 1994, Q6) reserve ratio (d)special deposit (WAEC 2012, Q18)

32. The best method of making payment to an 40. Which of the following acted as the Central
overseas supplier is by (a)bank draft (b)bill of bank for West African Countries before their
exchange (c)travellers cheque (d)letter of credit independence (a)The West African Clearing House
(e)certified cheque (WAEC 1995, Q20) (b)The British Bank for West Africa (c)The West
African Currency Board (d)The African
33. Which of the following is not a means of Development Bank (WAEC 2012, Q19)
controlling credit by the Central bank (a)facing the
bank rate (b)open market operations (c)clearing 41. The central bank sometimes calls for special
interbank indebtedness (d)special deposit (e)cash deposit from commercial banks in order to
liquidity Ratio (WAEC 1998, Q22) (a)reduce bank lending (b)increase bank lending
(c)withdraw defaced currencies (d)issue new notes
34. Government can borrow money from the public and coins (WAEC 2014, Q19)
through (a)issuing of treasury bills (b)increasing
taxation (c)increasing the lending rate 42. One of the functions of the central bank is to
(d)establishing more banks (WAEC 1999, Q24) (a)perform supervisory role over the banks in the
country (b)provide the means of payment to
35. The minimum charge at which the central bank individuals (c)ensure the smooth transfer of shares
lends to commercial banks is called (a)discounting (d)accept private deposits (WAEC 2014, Q41)
rate (b)bank rate (c)Market rate (d)interest rate
(WAEC 2002, Q42) 43. The central bank carries out its monetary policy
through (a)discounting bills (b)credit calling
36. Which of the following services is rendered by (c)replacement of worn out notes (d)bank rate
central bank (a) provision of brokerage services (WAEC 2017, Q26)
(b)safe keeping of cash and valuables
(c)discounting bills of exchange (d)issuing 44. A bank draft is a cheque drawn by the bank on
currency notes (WAEC 2004, Q27) (a)another bank (b)itself (c)creditor's (d)customers'
deposits (WAEC 2018, Q36)
THEORY 3. Explain three ways by which banks grant credit
to customers (WAEC 1994, Q1b)
1. Mention and explain five functions performed by
the Central Bank of Nigeria showing how they 4. Distinguish between commercial banks and
facilitate commercial activities (WAEC 1991, Q3; merchants’ banks (WAEC 1994, Q6a)
2000 Q9a; 2005 Q5; 2008 Q8b)
5. Describe to Kola a new recruit in your office, the
2. Explain any factors which a bank manager steps he may take to open a current account
would take into consideration in evaluating (WAEC 1999 Q3a; 2003 Q3a)
application for a loan (WAEC 1990, Q2b; 2000
Q9b)
6. State six services provided by a commercial 9. State four differences between a loan and an
bank (WAEC 2000, Q3b) overdraft (WAEC 2011, Q8a)

7. Explain seven functions of a commercial bank 10. Explain the following terms a. Standing order b.
(WAEC 2006 Q6a) Bank draft c. Travellers cheque d. Bank certified
cheque . (WAEC 2017, Q7)
8. Explain three types of accounts that are operated
in a commercial bank (WAEC 2006, Q6b)

8. A cheque dated 5/8/91 but presented for payment

in 2/8/91 was dishonoured because it was a
SPECIALISIED BANKS AND CHEQUES (a)certified cheque (b)marked cheque (c)specially
crossed Cheque (d)post-dated cheque (e)stale
1. When a cheque has special crossing it should be
cheque (WAEC 1992, Q52)
(a)cashed by the drawer (b)cashed over the counter
(c)paid into a named bank (d)paid to the drawee 9. A bank whose name is printed on a cheque leaf
(e)paid into the central bank (WAEC 1989, Q60). is known as the (a)drawer (b)payer (c)drawee
(d)payee (e)acceptor (WAEC 1993, Q46)
2. A cheque made payable to "bearer" (a)can be
negotiated for cash by the drawer only (b)can only 10. A bank may dishonor a cheque if (a)It is not
be paid into an account (c)can be negotiated for crossed (b)an alteration on the cheque is initiated
cash by any holder (d)it is not regarded as a (c)the amount on the cheque is less than the amount
negotiable instrument (e)must be endorsed to in the account (d)it has been endorsed to a third
another account for settlement (WAEC 1990, Q93) party (e)the amount on the cheque is more than the
amount in the account (WAEC 1993, Q51)
3. When a customer writes a cheque to withdraw
cash from his account, he is both the (a)drawer and 11. A cheque does not contain (a)cheque number
the payee (b)drawee and the payee (c)drawer and (b)cashier's signature (c)payee's name (d)drawee
the debtor (d)drawer and the creditor (e)drawee and name (e)date of issue (WAEC 1994, Q8)
the debtor (WAEC 1991, Q37)
12. A cheque that is drawn on a bank is called
4. When an order cheque is endorsed, it becomes (a)certified cheque (b)bank draft (c)bank note
(a)a bearer cheque (b)a certified cheque (c)an open (d)order cheque (e)bearer cheque (WAEC 1994,
cheque (d)a confirmed cheque (e)a dishonoured Q48; 1995, Q36)
cheque (WAEC 1991, Q84)
13. Commercial banks meet to exchange cheques
5. Which of the following is not a reason for drawn in on one another and settle the differences
dishonoring a cheque (a)Irregular signature between them at the (a)money market (b)stock
(b)signed alteration on the cheque (c)insufficient exchange market (c)discount house (d)clearing
funds in the drawer's account (d)drawer stopped house (e)Banking hall (WAEC 1995, Q70)
payment on time (e)amount in words differs from
that written in figures (WAEC 1992, Q42) 14. A cheque is cleared (a)when it has been
accepted by the drawer (b)when the amount
6. A cheque is specially crossed if (a)It has two specified has been credited to the payee (c)when it
parallel lines across it (b)the words &Co are is deposited (d)when the alterations are signed
written in between the lines (c)the name of the (e)when it has been taken away for safe keeping
bank is written across it (d)the words not (WAEC 1995, Q73)
negotiable are written across it (e)tye name of the
drawer is printed on the cheque (WAEC 1990, Q43) 15. Which of the following is not a reason for
dishonoring a cheque (a)insufficient funds
7. A cheque that is drawn in the name of a bank (b)different amount in words and in figures
instead of the account holders name is called (c)uninitiated alteration (d)wrong signature
(a)bank statement (b)bill of exchange (c)specially (e)special crossing (WAEC 1996, Q54)
crossed Cheque (d)certified cheque (e)bank draft
(WAEC 1992, Q57)
16. If Ade issues a Union Bank cheque to Chukwu, 25. The drawer of a bill of exchange which is not
the Union Bank is the (a)drawee (b)payee discounted is also the (a)drawee (b)acceptor
(c)drawer (d)acceptor (e)creditor (WAEC 1997, Q4) (c)endorser (d)payee (WAEC 2002, Q26)

17. Which of following is the clearing house for all 26. What is the lifespan of a cheque which is drawn
banks in the country (a)The Federal Mortgage but not presented immediately for payment (a)30
Bank of Nigeria (b)The Nigerian Industrial days (b)2 months (c)6 months (d)12 months
Development Bank (c)The Central Bank of Nigeria (WAEC 2002, Q27)
(d)The Nigeria Bank for Commerce and Industry
(e)The National Bank of Nigeria (WAEC 1997, Q5) 27. Which of the following types of cheques
protects the holder against the risk of loss (a)open
18. Which of the following indicates special cheque (b)bearer cheque (c)post-dated cheque
crossing on a cheque? Two parallel lines with (d)Crossed Cheque (WAEC 2002, Q42)
(a)"&Co" and "not negotiable" (b)the abbreviation
"&Co" only (c)"account payee" only (d)the name 28. The process of dealing with a cheque once it
of a particular bank (e)"not negotiable only" has been paid into the creditor's bank is (a)clearing
(WAEC 1997, Q43) (b)accepting (c)negotiation (d)discounting (WAEC
2003, Q32)
19. Which of the following is not a functions of
development banks (a)give long term loans Use the diagram below to answer questions 29 and
(b)invest directly in agriculture (c)issue currency 30 (WAEC 2006, Q19 and 20)
notes (d)give technical advice to investors
(e)embark on priority projects of government
(WAEC 1998, Q22)

20. The words "Account payee only" on a cheque

means (a)It is transferable (b)pay only to the
holder's account (c)a special crossing (d)it is a
banker's cheque (e)jt is for endorsement (WAEC
1998, Q53) 29. The above document is (a)foreign bill of
exchange (b)promissory note (c)money order
21. Which of the following guarantees payment on (d)cheque
presentation (a)certified cheque (b)crossed Cheque
(c)order cheque (d)bearer cheque (e)open cheque 30. Penny bank Plc is the (a)drawer (b)payee
(WAEC 1998, Q95) (c)drawer (d)endorser

22. The counterfoil of a cheque book enables the 31. The beneficiary of a cheque is called
drawer to (a)request for a new cheque book (a)acceptor (b)drawee (c)drawer (d)payee (WAEC
(b)reconcile his books of accounts (c)know who the 2007, Q33)
debtors are (d)obtain an overdraft from the bank
(WAEC 2000, Q25) 32. Which of the following is not a reason for
dishonoring a cheque (a)insufficient funds in
23. Which of the following encourages people to drawer's account (b)when the cheque is stale
save towards owning a house (a)merchant banks (c)amount in figures differs with amount in words
(b)development banks (c)mortgage banks (d)poor handwriting (WAEC 2007, Q33)
(d)Commercial banks (WAEC 2000, Q27)
33. A cheque dated 30th July, 2004 but is presented
24. Agricultural cooperative banks are best for payment on 28th February, 2005 is (a)post
classified under (a)Commercial banks (b)savings dated (b)crossed (c)opened (d)stale (WAEC 2008,
bank (c)merchant banks (d)specialised banks Q36)
(WAEC 2001, Q22)
34. A stale cheque is one on which the date for
payment is (a) overdue (b)yet to come (c)missing
(d)due (WAEC 2009, Q7)
35. When an order cheque is endorsed it becomes a his accounts is (a)a bounced cheque (b)a bearer
(a)confirmed cheque (b)bearer cheque cheque (c) a crossed Cheque (d) an order cheque
(c)dishonoured cheque (d)cleared cheque (WAEC (WAEC 2015, Q20)
2009, Q8)
46. A cheque made payable to a named person is
36. The letters R/D on a cheque shows that the (a)a crossed cheque (b)a certified cheque (c)an
cheque is (a)paid (b)dishonoured (c)certified order cheque (d)a confirmed cheque (WAEC 2015,
(d)accepted (WAEC 2009, Q19) Q31)

37. A cheque issued in January 1997 which the 47. Another name for dishonored cheque is (a)an
holder failed to present for payment until order cheque (b)a bounced cheque (c)a bearer
September 1997 is called (a)a crossed Cheque cheque (d)an open cheque (WAEC 2016, Q3)
(b)travellers cheque (c)post-dated cheque (d)stale
cheque (WAEC 2010, Q18) 48. When a cheque is paid by the bank on which it
is drawn, the cheque is (a)discounted (b)credited
38. A mortgage bank is primarily concerned with (c)debited (d)cleared (WAEC 2016, Q19)
financing the acquisition of (a)motor vehicle
(b)research equipment (c) computer machine (d) 49. A cheque could be dishonoured as a result of
dwelling houses (WAEC 2010, Q37) (a)insufficient funds (b)same amount in words and
figures (c)General crossing (d)regular signature
39. A Cheque dated 15th March, 2012 will become (WAEC 2017, Q9)
stale on (a)16th June, 2012 (b) 16th July, 2012
(c)16th August 2012 (d)16th September 2012. 50. Interbank indebtedness is settled at the
(a)clearing house (b)money market (c)discount
40. The bank on which a cheque is drawn is known houses (d)stock exchange (WAEC 2018, Q49)
as the (a)drawer (b)drawee (c)cashier (d)payee
(WAEC 2012, Q30)

41. To endorse a cheque means to (a)write and sign

one’s name at the back of the cheque (b) write "
Use the diagram below to answer questions 51 to
pay cash" on the cheque (c) cross the cheque
53 (WAEC 2019, Q21 to 23)
(d)stop the payment of the cheque (WAEC 2013,
Q16)

42. "Not Negotiable" on a cheque means

(a)ownership can be transferred to the third party
by mere delivery (b)the cheque can be paid over
the counter on endorsement (c)the holder has no
better title than the person who transfers it
(d)ownership rests with the one who issued the
cheque (WAEC 2013, Q22)
51. The diagram above shows a (a)standing order
43. The person who gave his building as a security (b) receipt (c)cheque (d) bill of exchange.
for loan is known as (a)trustee (b)mortgagee
52. XYZ Bank of Commerce PLC is the (a) payee.
(c)mortgagor (d) guarantor (WAEC 2014, Q14)
(b) endorser (c) drawer (d)drawee.
44. A cheque bearing a date showing that it was
53. Oki Williams is the (a) payee (b) endorser (c)
issued more than six months ago is termed (a)blank
drawer (d)drawee.
cheque (b)bearer cheque (c)stale cheque (d)order
cheque (WAEC 2014, Q37) 54. Commercial banks usually settle their interbank
indebtedness through the (a)money market
45. A cheque which the bank refused to pay the
(b)clearing house (c)discount house (d)stock
drawer because the drawer had insufficat funds in
exchange (WAEC 2006, Q45)
THEORY
1. Explain the following terms a. Bearer Cheque b.
Open cheque c. Order Cheque d. Crossed Cheque
(WAEC 1990, Q2a)

2. Distinguish between commercial banks and

Merchant Banks b. Explain the following i.
Certified Cheque ii. Non-negotiable cheque
(WAEC 1994, Q6a)

3. State right reasons why a bank may dishonor a

cheque (WAEC 2004, Q1b)

4. On June 17, 2006, Mr Cham write am order

cheque for M. Sumarch for D500 on Standard
Chartered Bank, Bakau. a. State the drawer, the
payee and the drawee from the above information b.
The cheque is crossed "Account payee only" and
"Not negotiable". Explain four effects of the
crossing c. State three advantages of payment by
cheque (WAEC 2007, Q8)
SS2 PAST QUESTIONS

PUBLIC ENTERPRISE

1. Which of the following is a public partnership (c) private company (d) public
corporation? The (a) Nigerian Breweries Ltd corporation (WAEC 2010, Q21)
(b) Nigerian Ports Authority (c) Lagos
Chamber of Commerce (d) Nigerian Bottling 10. Which of the following justifies the
Company (WAEC 1990, Q45) existence of public enterprises (a) making
quick decisions (b) creating monopoly (c)
2. The main purpose of establishing a public making profit for government (d) providing
corporation is to (a) make profit (b) provide essential services (WAEC 2009, Q37)
employment (c) provide essential services (d)
establish a monopoly (WAEC 1990, Q79) 11. The Nigerian Television Authority is an
example of (a)private limited liability
3. Key industries and those requiring huge company (b)public limited liability company
capital is usually established as (a) public (c)multinational corporation (d)co-operative
corporation (b) public limited company (c) society (e)public corporation (WAEC 1991,
private limited company (d) partnership Q14)
(WAEC 1998, Q6)
12. Which of the following relies on the
4. Which of the following relies on government for its initial capital
government subvention for its operation (a) (a)Cooperative society (b)private limited
Cooperative society (b) public limited company (c)public corporation (d)public
company (c) public corporation (d) private limited company (e)credit and thrift society
limited company (WAEC 2017, Q49) (WAEC 1994, Q7)

5. The Water Corporation is an example of (a) 13. Which of the following brings a public
private enterprise (b) public enterprise (c) corporation into existence (a)certificate of
commerce operative society (d) partnership incorporation (b)certificate of trading (c)Acts
(WAEC 2016, Q25) of Parliament (d)registration (e)prospectus
(WAEC 1998, Q51)
6. Which of the following is a reason for the
failure of public corporation? (a) legal 14. Government financial grants is a source of
requirement (b) inadequate funding (c) capital to (a)partnership (b)public limited
political stability (d) lack of competition company (c)public corporation (d)co-operative
(WAEC 2015, Q47) society (WAEC 2010, Q39)

7. Public enterprises are financed mainly by

the (a) shareholders (b) commercial banks (c)
government grants (d) mortgage banks THEORY
(WAEC 2007, Q11; 2013, Q30)
1a. Explain six reasons for government
8. The Board of Directors of Public participation in business enterprise b. State
corporation is appointed by (a) government (b) four demerits of government participation in
shareholders (c) management (d) employees business (WAEC 2001, Q5)
(WAEC 2013, Q13) 3. State five features of public corporation
9. The enterprise whose main objective is to (WAEC 2013, Q2a)
provide the public with essential services is
4. Differentiate between public enterprise and
known as (a) Cooperative society (b) public companies under the following heading;
(a) formation (b) ownership (c) purpose (d) 8. Debentures which are secured by fixed
management (e) sources of funds assets of a company are called (a) mortgaged
debenture (b) naked debentures (c) redeemable
5. Explain five problems encountered by shares (d) irredeemable Debentures
government businesses (WAEC 2015, Q7b)
9. A person who undertakes responsibility for
6. State five advantages of public corporation forming a new company is (a) auditor (b)
(WAEC 2012, Q2b) solicitor (c) registrar (d) promoters

10. Which of the following gets extra dividend

LIMITED LIABILITY COMPANY after its due rate of dividend is (a) Preference
Shares (b) cumulative preference shares (c)
1. The type of business where management is ordinary shares (d) participating Preference
separate from ownership is a (a) sole Shares
proprietorship (b) public company (c)
partnership (d) co- operative society 11. The operations of a private company is
guided by the (a) deed (b) certificate of trading
2. A business which requires a certificate of (c) certificate of incorporation (d) company's
trading in order to commence operation is a (a) act
co-operative society (b) private company (c)
sole proprietorship (d) public company 12. If the amount of dividend paid varies
according to the level of profit, what type of
3. Which of the following statement is true of share is involved (a) cumulative preference
debenture? (a) its holders receive interest (b) It shares (b) preference shares (c) deferred shares
forms part of a company's authorised capital (c) (d) ordinary shares
Its holders are co-owners of the company (d)
its holders control the company. 13. Detailed information about a public offer
to a company's share is contained in the (a)
4. A document through which invitation is memorandum of association (b) articles of
extended to the public to subscribe to its association (c) letter of enquiry (d) prospectus
shares is (a) article of association (b)
prospectus (c) memorandum of association (d) 14. Which of the following are features of a
quotation limited liability company? I. Separate legal
entity II. Right to sue and not be sued III. Has
5. A memorandum of association is a its own corporate name IV. The liability if the
document (a) defining a company’s members is limited (a) I, II and III (b) II, III
relationship with the public (b) inviting the and IV (c) I, II and IV (d) I, III and IV.
public to subscribe to its shares (c) governing
the affairs of partnership (d) regulating the 15. When shares are fully paid, they can be
company's internal affairs converted into (a) bonds (b) debentures
(c)Stocks (d) treasury bills
6. Equity interest in a company is represented
by (a) Preference share (b) dividend (c) 16. Which of the following interest holders are
debenture (d) ordinary share settled first in case of a company's liquidation
(a) board of directors (b) debenture holders (c)
7. The issue of certificate of Incorporation to a ordinary shareholders (d) Preference
company means it has (a) started production (b) shareholders
legally come into being (c) appointed board of
directions (d) merged with another company 17. The word 'Ltd' written after a name of
company means that (a) the individual
members capital is limited (b) the total sum of fixed rate of dividend (d) the shares of
the company capital is limited (c) members are preference shareholders cannot be sold on the
liable to terminate extent of their holding (d) stock exchange
company's location is limited
24. The reward of shareholding in a company
18. Which of the following is not required in a is (a) profit (b) dividend (c) interest (d) bonus
Memorandum of Association. The (a) name of
a company (b) location of the company (c) 25. An alternative term for ordinary shares is
names of the Board of Director (d) limitations (a) unit trust (b) gilt-edged securities (c)
of members’ liability equities (d) bonus issues

19. Which of the following must be submitted 26. Debentures differ from shares in that (a)
to the Registrar of Companies before a They form part of the capital of the business (b)
company is incorporated (a) Articles of rewards are usually paid for out of profits (c)
Association and Certificate of Incorporation (b) ownership is open to the public (d) They are
Memorandum of Association and Certificate usually secured by a charge on the company's
of Incorporation (c) Articles of Association assets
and Memorandum of Association (d) 27. A public limited company has the rights
Memorandum of Association and Prospectus and duties of an individual because it (a) has a
20. The document issued to a lender under a board of directors (b) has a trading certificate
company's seal acknowledging a debt is called (c)has corporate status (d) has a memorandum
(a) Stock (b) share (c) dividend warrant (d) of association
debenture 28. Which of the following is true about
21. Which of the following is a public limited cumulative preference shares? (a) any unpaid
company? (a) Nigerian Agricultural dividend is carried forward (b) the
Development Banks (b) Nigerian Industrial shareholders can obtain a capital refund (c)
Development Bank (c) Federal Mortgage They are entitled to further share in profit (d)
Banks (d) United Bank for Africa any unpaid dividend is forfeited

22. Founders Shares are usually referred to as 29. Dividends paid by public limited
deferred shares because the holders (a) are not companies is (a) based on patronage (b)
entitled to any dividend (b) receive their depends on the price of the shares (c) based on
dividends before others shareholders (c) are stock exchange rating (d) depends on profit
the managers of the company (d) receive declared
dividends after other shareholders
30. The law governing the operations of
23. Preference shareholders are different from companies and partnership in Nigeria is the (a)
ordinary shareholders because (a) preference Nigerian Companies Decree (b) Nigerian
shareholders are creditors to the company (b) Partnership Act (c) Nigerian Enterprises
the number of shares are held by shareholders Promotion Decree (d) Companies and Allied
is more (c) Preference shareholders take a Matters

THEORY

1. Explain five procedures to be followed in Formation (b) Ownership and control (c)
the formation of a private limited company Source of capital (d) Source of capital (e)
Dissolution
2. Compare a public limited company with
partnership under the following headings (a)
3. Explain the following: i) limited liability ii) 7. Explain the following i) prospectus ii) share
separate legal entity iii) certificate of certificate iii) dividend warrant iv) ordinary
incorporation iv) participating preference shares v) underwriting of shares
shares v) ordinary shares
8. State and explain any five classes of shares
4. State five features common to both public a public limited company can issue
and private limited companies
9. List 4 reasons for mergers
5. State five provisions for a memorandum of
association 10. Give six features of a public limited
company
6. State three differences between i)
shareholders and debenture holders ii)
ordinary shares and preference shares

LIMITED LIABILITY COMPANY II

1. A source of capital to a public company (a) termination (b) dissolution (c) voluntary
which attracts a fixed rate of interest is (a) an liquidation (d) compulsory liquidation
ordinary share (b) a subvention (c) a debenture
(d) an Overdraft 9. Building and machinery used in running a
business are examples of (a) current Assets (b)
2. A portion of share capital which the Intangible Assets (c) liquid assets (d) fixed
company has asked shareholders to pay is (a) assets
called up capital (b) authorised capital (c) paid
up capital (d) unpaid capital 10. The par value of a share is known as its (a)
premium price (b) market price (c) discount
3. A person authorised to sell the property of a price (d) nominal price
company in winding up is (a) an auctioneer (b)
an agent (c) a liquidator (d) a bailee 11. Which of the company can quote its shares
on the stock exchange? (a) partnership (b) sole
4. A business which becomes insolvent may proprietorship (c) co-operative society (d)
result in (a) continuity (b) expansion (c) public limited company
liquidation (d) re-incorporation
12. The nominal value of KC Ltd.’s shares are
5. Which of the following is classified under 50k and the market value is 70k. This means
current assets? (a) machinery (b) motor that the company shares are selling (a)at Par (b)
vehicle (c) Stock (d) fittings ex dividend (c) cum dividend (d) at premium

6. The part of authorised capital of a company 13. A private liability company differs from a
sold to shareholders is (a) paid up capital (b) public limited company because it (a) offers
called up capital (c) issued Capital (d) nominal rights issues to shareholders (b) has a separate
capital entity from its owners (c) cannot easily
transfer shares (d) declares dividends
7. A person who takes responsibility for
forming a new company is (a) auditor (b) 14. A limited company can raise long term
solicitor (c) registrar (d) promoters capital through the (a) commodity market (b)
Stock exchange market (c) export market (d)
8. The process of winding up of a public foreign exchange market
limited company by a court order is known as
15. If a share is sold below its face value, it is 23. On which of the following grounds may a
sold (a) above par (b) at a discount (c) at pat (d) company be compulsorily wound up? (a) the
at premium company is making abnormal profits (b) it did
not declare dividends every year (c) it fails to
16. A company may wound up when (a) there commence business within the year of its
is disagreement among the directors (b) there incorporation
are too many shareholders (c) many of the
shareholders die (d) its products compete with 24. The Intangible benefits arising from the
that of the government business connections and reputation of a firm
is called (a) interest (b) goodwill (c)
17. An advantage of a public limited company commission (d) bonus
over a private one is the (a) limited liability of
shareholders (b) Easy transferability of shares 25. Which of the following is not a source of
(c) access to retained profits (d) less taxation capital to a public limited company (a)
by government equipment leasing (b) debt factoring (c)
debentures (d) transporting
18. Which of the following sources of capital
to a business requires mortgaging a specific 26. The minimum number of membership for
asset? (a) overdraft (b) ordinary shares (c) a public limited company is (a) two (b) seven
fixed debentures (d) Trade credit (c) seventeen (d) fifty

19. A private company's ability to raise capital 27. The authorised capital of a company is also
is limited because (a) its borrowing powers are referred to as (a) called up capital (b) issued
limited (b) membership does not exceed fifty Capital (c) nominal capital (d) unissued capital
(c) shares cannot be made public (d) of limited
collateral security 28. The main source of capital of a limited
liability company is (a) bank overdrafts (b)
20. The portion of authorised capital made government subsidy (c) undistributed profits
available to the public for subscription is (a) (d) share subscription
called up capital (b) paid up capital (c) call in
arrears (d) issued capital 29. Which of the following is not a means of
raising capital by a promoter? (a) goodwill (b)
21. A public limited company wishing to borrowing (c) selling of shares (d) selling real
obtain more capital may have to (a) apply for assets
subvention (b) buy treasury bills (c) buy
second hand securities (d) issue debentures 30. If a limited liability company wishes to
finance expansion in operation by using its
22. A company is said to be insolvent when (a) retained earnings it will issue out (a) debenture
It makes loss in one year (b) its total liabilities stock (b) rights issue (c) bonus shares (d)
exceed total assets (c) the ordinary preferred stocks
shareholders receive no dividend from the
company (d) the preference shareholders could
not be paid by the company

THEORY company b) What are the disadvantages of

such a decision
1a. Explain five reasons why many small
businesses turn into private limited liability 2. State any five sources of capital for a public
limited company
3. Explain five ways in which nationalized 6. Explain the following terms; a) fixed assets
industries differ from public limited b) certificate of trading c) dividend d)
companies authorised capital e) promoters

4. Explain four reasons for the winding up of a 7. State four advantages of a public limited
public limited company company

5. State five features common to both public

and private limited companies

COOPERATIVE SOCIETY

1. Which of the following is a feature of 6. A retail cooperative society aims at

cooperative society? (a) dividend is based on (a)encouraging members to save money
the number of shares sold (b) limited (b)buying seeds and fertilizers
membership (c)democratic control and (c)manufacturing goods as cheaply as possible
management (d)owned and run by the state (d)lending money to members at a low rate of
(e)voting rights are not equal (WAEC 1990, interest (e)cutting off the profits of middlemen
Q61) (WAEC 1996, Q56)

2. Which of the following is a feature of 7. In which of the following business units at

cooperative societies (a)each member has the owners mostly the customers
several voting during meeting (b)profits are (a)cooperative societies (b)partnership
shared on the basis of shares held (c) all (c)public corporation (d)limited liability
members have equal votes during meetings companies (e)sole proprietorship (WAEC
(d)members are not involved in running the 1996, Q80)
business (e)the welfare of the members is not
taken into consideration (WAEC 1991, Q34) 8. An Association that mobilizes the savings
of members and channels them to name the
3. Which of the following investors earns members is known as (a)consumer cooperative
profit on the basis of his patronage (b)producer co-operative (c)thrift and credit
(a)debenture holder (b)partner (c)sole society (d)multi-purpose cooperative (e)trade
proprietor (d)cooperative member union (WAEC 1997, Q3)
(e)shareholder (WAEC 1992, Q5)
9. The management and control of cooperative
4. An association of local, independent societies are in the hands of the (a)contributors
retailers formed to encourage buying in bulk (b)board of directors (c)committee (d)financial
from manufacturers is known as (a) voluntary controller (e)registrar (WAEC 1998, Q5)
chain (b)producers’ cooperative (c)multiple
store (d)department store (e)Hypermarket 10. A business unit in which profits are shared
(WAEC 1993, Q49; 1998 Q54) on the basis of members’ patronage is known
as (a)partnership (b)public limited company
5. Which of the following is found primarily to (c)cooperative society (d)private limited
promote savings and loans among the company (WAEC 1999, Q6; 2004, Q6)
members (a)consumer cooperative society
(b)producers’ cooperative society 11. The following has no limit with
(c)cooperative wholesale Society (d)retail membership (a) ordinary partnership
cooperative society (e)cooperative thrift and (b)private limited company (c)limited
credit Society (WAEC 1995, Q37) partnership (d)cooperative society (WAEC
2002, Q4)
12. The main aim of credit and thrift Society is Company (d)cooperative society (WAEC 2010,
to (a)settle disputes among members Q26)
(b)educate their members (c)secure loans for
members (d)encourage savings among 17. Which of the following is not a feature of
members (WAEC 2004, Q5; 2010 Q10) cooperative society (a)owners are the
customers (b)capital can be repaid by a
13. The distribution of profits based upon the member (c)votes are according to shares held
level of patronage in the business is a common (d)dividend is based patronage (WAEC 2010,
feature of (a)partnership firms (b)public Q40)
limited companies (c)cooperative societies
(d)private limited companies (WAEC 2005, 18. The Co-operative society that performs a
Q7) combination of the functions of cooperatives is
called (a)consumer cooperative
14. Which of the following is not a duty of a (b)multipurpose cooperative (c)producer
credit union (a)helping members to save cooperative (d)thrift and credit cooperative
(b)granting loans (c)advising on the use of (WAEC 2011, Q6)
funds (d)confirming members’ indebtedness
(WAEC 2006, Q16) 19. The function of credit and thrift Society do
not include (a)charging low interest on loan
15. Contributing money to buy equipment for (b)providing saving facilities (c)encouraging
making and marketing a product is a feature of mutual cooperation of members (d)providing
(a)thrift societies (b)public limited companies security for members’ property (WAEC 2012,
(c)consumer cooperatives (d)producers’ Q47)
cooperatives (WAEC 2007, Q12)
20. The business units that applies the
16. In which of the following organisations principle of one-man-one-vote is (a)sole
and members entitled to one vote irrespective proprietorship (b)partnership (c)public
of the numbers of shares held (a)public company (d)cooperative society (WAEC 2016,
corporation (b)Partnership (c)Limited Q24)
THEORY 6. Mention four types of cooperative societies
b. State two distinguishing features and two
1. Give five main differences between a retail functions of each type mentioned above
co-operative Society and a public limited (WAEC 1998, Q2a)
liability company (WAEC 1989, Q9b, 1996
Q5b) 7. State four characteristics of co-operative
society (WAEC 2002, Q1a)
2. Describe any four types of cooperative
societies (WAEC 1992, Q2a, 2002 Q1b) 8. The staff of Kander Manufacturing
Company Limited formed a co-operative
3. Explain three advantages and three Society to enable them access to funds a.
problems of cooperative societies (WAEC Name the type of cooperative society they
1992, Q2b, 2007 Q1b) formed b. State four features of the Co-
4. What are thrift societies b. Describe five operative Society c. State three advantages and
services rendered by thrift societies to their two disadvantages of the Co-operative Society
members (WAEC 1993, Q5) (WAEC 2019, Q2)

5. Give any five features that are common to

both cooperative societies and private limited
companies (WAEC 1996, Q4a)
COMMODITY EXCHANGE 3. Explain the benefits one derives from
commodity trading (WAEC 2019, Q4)
1. Explain the requirements for commodity
trading (WAEC 2019, Q4) 4. What are the problems of commodity
trading?
2. Explain two methods of trading in a
commodity exchange (WAEC 2019, Q4b)
TERMS OF TRADE

1. Which of the following is a reduction in the 8. Which of the following is quoted when the
catalogue price (a)rebate (b)cash discount buyer is responsible for the cost of loading the
(c)commission (d)trade discount (WAEC 2009, goods from the sellers Warehouse up to his
Q25) own Warehouse (a)loco (b)FOR (c)FAS
(d)CIF (e)CF (WAEC 1995, Q17)
2. A deduction made by a wholesaler from the
catalogue price and which represents a 9. A retailer who receives a trade discount of
retailer's profit margin is called (a)cash 33⅓% and a cash discount of 10% on goods
discounts (b)deferred payments (c)trade worth #360 would pay (a)#240 (b)#226
discount (d)quantity discount (e)cash on (c)#216 (d)#204 (e)#120 (WAEC 1995, Q25)
delivery (WAEC 1992, Q58)
10. The allowance given to a retailer to enable
3. When payment is required for good at time him make profit is known as (a)interest
the order is placed in term of payment is (b)commission (c)trade discount (d)cash
quoted (a)C.O.D (b)C.W.O (c)C.I.F (d)F.O.R discount (e)dividend (WAEC 1996, Q86)
(e)F.O.B (WAEC 1992, Q38)
11. If goods invoiced at #1500 were sold to
4. Which of the following terms of price Etim at less 15% trade discount, he would pay
quotation includes cost of transportation to the (a)#1725 (b)#1425 (c)#1275 (d)#1225
buyer's premises (a)FOB (b)C &F (c)FOR (d) (e)#1200 (WAEC 1997, Q82)
FAS (e)Ex-ship (WAEC 1993, Q63)
12. Trade discount is given to the buyer for
5. Which of the following abbreviations (a)prompt payment (b)credit purchases (c)cash
famous the drawer of a document to correct purchase (d)retailers mark up (WAEC
any errors therein (a)V.A.T (b)C.I.F (c)E & 1999,Q23)
O.E (d)I.O.U (e)C.W.O (WAEC 1992, Q13;
2016 Q12) 13. Which of the following implies that the
price quoted includes the cost of insurance and
6. When the exporter arranges for the dispatch carriage (a)F.O.B (b)F.A.S (c)C.O.D (d)C.I.F
of goods but leaves the the cost of (WAEC 1999, Q40)
transportation to be paid by the importer the
price quoted is (a)carried forward (b)Franco 14. Which of the following refers to a price
(c)loco (d)free on board (e)free alongside ship reduction based on the size of order (a)cash
(WAEC 1994, Q43) discount (b)trade discount (c)seasonal discount
(d)cash on delivery (WAEC 2000, Q21)
7. The rebate given to the retailer by the
wholesaler to enable him make profit is known 15. Which of the following abbreviations
as (a)trade discount (b)cash discount (c)credit indicates that the seller reserves the right to
guarantee (d)commission (e)mark-up (WAEC correct errors on the invoice (a) E& O.E (b)
1994, Q50; 1997 Q13) C.I.F (c)C.O.D (d)C.W.O (WAEC 2001, Q25;
2004, Q23)
16. A price quotation that carries the cost of paid by the buyer (d)carriage has been paid
goods and all other expenses including (WAEC 2013, Q2)
delivering the goods to the buyer is called
(a)C.I.F (b)FAS (c)Franco (d)LOCO (WAEC 25. Which of the following price quotation
2001, Q27) requires the buyers to take delivery at the
manufacturers warehouse (a)ex works
17. The term "2½% 30 days" refers to (a)mark (b)F.O.R (c)F.O.B (d)F.A.S (WAEC 2013,
up (b)trade discount (c)cash discount (d)value Q49)
added tax (WAEC 2001, Q42)
26. A price quotation which includes all the
18. Quantity discount is offered to persuade expenses in loading goods into a ship is (a)
the buyer to (a)pay promptly (b)defer payment free on board(FOB) (b)Free alongside
(c)pay a deposit (d)buy more (WAEC 2003, ship(FAS) (c)Cost insurance and freight (CIF)
Q31) (d)Ex ship (WAEC 2014, Q1)

19. C&F as a price quotation in foreign trade 27. "Net 3 months" on an invoice means the
means that the buyer (a)os responsible for buyers (a)will pay interest after 3 months
clearing and forwarding the goods (b)has to (b)get discounts if he pays within 3 months
pay for cost and freight (c) pays for both the (c)pay full invoice amount after 3 months
freight and insurance (d)pays for insurance (d)have discount if he pays after 3 months
only (WAEC 2004, Q24) (WAEC 2014, Q5)

20. A seller quoting his goods LOCO price 28. Which of the following price quotation
means that (a)all charges are borne by the contains the cost price, insurance charges and
seller (b)all charges are borne by the buyer the cost of transporting the goods (a)F.O.R
(c)the seller pays carriage as far as the buyers (b)C &F (c)FAS (d)F.O.B (e)C.I.F (WAEC
warehouse (d)the price includes cost insurance 1989, Q71)
and freight (WAEC 2005, Q25)
29. E & O.E stands for (a)errors and omission
21. When a quotation is marked "CWO" it exempted (b)errors and orders exempted
means (a)no credit facilities allowed (b)no (c)expect omissions and errors (c)errors and
discount is allowed (c)the buyer should Omissions exempted (d)errors and Omissions
beware (d)the seller should beware (WAEC excluded (WAEC 1990, Q19)
2005, Q34)
30. Terms of payment are quoted on the
22. The price quotation where the buyer uses (a)order form (b)a device note (c)credit note
their own means to collect goods from (d)debit note (e)invoice (WAEC 1990, Q88)
producers Warehouse is (a)F.O.B (b)ex-works
(c)F.A.S (d)F.O.R (WAEC 2006, Q9) THEORY

23. When C.I.F is quoted on an invoice, it 1. Distinguish between (WAEC 1989, Q2b,e)a.
means that the price includes (a)the cost of the Cash Discount and trade discount (WAEC
goods only (b)cost of insurance only (c)cost of 2007, Q4) b. F. O. B and C.I.F
carriage only (d)cost, insurance and carriage
2. Write the following in full and explain their
(WAEC 2011, Q31) meaning (WAEC 1998, Q6; 2015 Q8a; 2017
24. Carriage forward on an invoice means Q8a)
(a)carriage will be paid next time (b)carriage a. C.I.F b. F.O.B c. F.A.S d. F.O.R e. C.F (f).
will be paid by the seller (c)carriage will be E & O.E (WAEC 2008, Q10iv) g. C.O.D
3. Explain the following terms in connection 5. The sale of consumer goods costing
with an invoice a. 5% discount b. Net 3 #100,000 attracts a cash discount of 7½% and
months c. E &O. E d. Carriage forward e. a quantity discount of 5%. You are required to
2½% cash discount (WAEC 2003 Q1b) calculate (i)value of the quantity discount
(ii)value of cash discount (iii)net amount of
4. The sale of consumer goods costing money payable by the buyer (WAEC 2015,
#100,000 attracts a cash discount of 5% and a Q8b)
quantity discount of 5%. You are required to
calculate (i)quantity discount value (ii)cash
discount value (iii)net amount of money
payable by the customer (WAEC 2010, Q10b;
2017 Q8b)

CREDIT

1. Which of the following is a disadvantage of (d)enables consumers to enjoy goods without

hire purchase to the consumer (a)it increases immediate payment (WAEC 1997, Q19)
turnover (b)temptation to buy more than one
can pay for (c)it demands more capital from 7. In which of the following do the goods
the seller (d)increased sales by the sellers’ unit become the property of the buyer on the first
cost (WAEC 1989, Q49) instalment (a) hire purchase (b) deferred
payment (c) leasehold (d)cash with order
2. A sales agreement whereby the buyer takes (e)forward trading (WAEC 1997, Q20)
possession but not title to the goods is called
(a)mortgage (b)auction sale (c)deferred 8. An agreement to deliver goods in the future
payments (d)hire purchase (e)warranty after the payment of the final instalment is
(WAEC 1992, Q37) known as (a)credit sales (b)hire purchase
(c)conditional sale (d)trade in sale (e)leasing
3. An instalmental buying system where (WAEC 1998, Q14)
ownership immediately transfers to the buyer
is known as (a)deferred payments (b)hire 9. Which of the following is not a feature of
purchase (c)spot trading (d)cash sales hire purchase (a)customers pays final deposit
(e)prompt payment (WAEC 1993, Q66) (b)customer pays purchase price plus interest
(c)payment is by instalment (d)ownership of
4. In a hire purchase contract, the customer goods passes to the customer on payment of
becomes the legal owner of the goods by deposit (e)generally suitable for sale of
(a)taking possession of the goods (b)paying durable goods (WAEC 1998, Q17)
the first instalment (c)paying the last
instalments (d)paying monthly hire charges 10. A hire purchase transaction becomes a sale
(e)paying half the purchase price (WAEC when (a)hirer accepts the hire purchase terms
1995, Q64) (b)finance company agrees to pay (c)hirer
takes possession of goods (d)hirer pays full
5. Which of the following is not a credit cost of carriage (WAEC 1999, Q42)
instrument used in business transactions
(a)luncheon voucher (b)bill of exchange 11. A contract of sale where ownership passes
(c)promissory note (d)bank note (e)fuel to the buyer on the payment of the first
voucher (WAEC 1996, Q8) instalment is known as (a)hire purchase
(b)cash with order (c)deferred payment
6. Which of the following is a disadvantage of (d)cash on delivery (WAEC 1999, Q48)
credit transactions (a)increases turnover
(b)Facilitates the sale of durable goods 12. A contract of sale where ownership passes
(c)encourages the habit of bad debts to the buyer on the payment of the first
instalment is known as (a)hire purchase
(b)lease (c)cash on delivery (d)credit sale 19. The primary purpose of credit cards is to A.
(WAEC 2000, Q43) obtain goods without paying cash on the spot
B. obtain a loan from the bank C. obtain a loan
13. An agreement by which a buyer pays from a trader D. persuade a business man to
instalmentally but does not own the goods cash a cheque E. provide a means of
until the final settlement is made is (a)hire identifying the holder (WAEC 1996)
purchase (b)deferred payment (c)conditional
sale (d)features trading (WAEC 2003, Q23) 20. Leasing is the right to use asset for an
agreed period in return for (a)profit (b)interest
14. Which of the following is not suitable for (c)wages (d)rents
hire purchase (a)textiles (b)furniture
(c)refrigerator (d)printing machine (WAEC 21. An overdraft is A. amount permitted to be
2005, Q24) withdrawn in excess of one's deposit B.
excessive cash withdrawn by commercial
15. Yahaya bought a piece of furniture on a banks from the Central Bank C. credit balance
credit sale agreement from Ahmed and resold standing in the name of a customer D. special
it to Ali before all installments were made. deposits made by commercial banks (WAEC
The court upheld that Ahmed could not 2011)
recover possession of the items from Ali. The
reason for the judgement was because A. 22. In hire purchase agreement, the buyer is
ownership was transferred on completion of the (a)agent (b)hirer (c)lessee (d)lessor
installment B. ownership was transferred on (WAEC 2017, Q22)
delivery C. Yahaya could not pass title to a
third party D. Ali was still indebted to Yahaya 23. Goods becomes the property of the buyer
(JAMB 2012) on the transfer of liability and possession
without immediate payment under the (a)hire
16. The form of credit sales common to low purchase agreement (b)credit sale agreement
income groups is A. hire purchase B. club (c)auction sale agreement (d)conditional sales
trading C. booking -me-down D. credit trading agreement (WAEC 2016, Q40)

17. The different between an overdraft and 24. A system of sales where goods are sold to
loan is that an overdraft? A. does not yield the highest bidder is known as (a)credit sales
interest B.is giving to savings account holders (b)hire purchase (c)clearance sales (d)auction
only C. yields interest on the customer before
sale (WAEC 2016, Q10)
it is granted D. yields interest only on the sum
drawn E. requires no application by the 25. Which of the following will be suitable for
customer before it is granted
hire purchase sale (a)shares (b)refrigerator
18. A person who gave his building as a (c)shoes (d)textiles (WAEC 2013, Q5)
security for loan is known as a (a)trustee
(b)mortgagee (c)mortgagor (d)guarantor

THEORY 3. Give three similarities and three differences

between Hire Purchase and Deferred payments
1. Messrs Ola and Musa are both merchants. (WAEC 1996, Q7a)
Ola trades on cash basis only while Musa
allows credit. Give four reasons each why Ola 4. Differentiate between Hire Purchase and
insists on cash payments and Musa allows credit sale (WAEC 2001, Q2a, 2007 Q4e)
credit sales (WAEC 1989, Q2a)
5. Give four advantages of Hire Purchase each
2. What is credit? b. Give two advantages and to the following (WAEC 2001, Q2b)
three disadvantages of Credit sales (WAEC
1994, Q1a,c, 2012, Q4a) 6. State five effects of Hire Purchase on each
of the following (a) buyer (b)seller
7. What is hire purchase? (WAEC 2008, Q7a) 8. Write short notes on any five types of credit
sales
b. Give two advantages and two disadvantages
each of hire purchase to the (a) buyer (b)seller
(WAEC 2008, Q7b)

TRADE ASSOCIATION

1. Organisations formed mainly by traders and 6. The organisation that aims at protecting the
manufacturers to cater for the interest of their business interests of a particular area is the
members is called (a)trade union (a)trade association (b)manufacturers
(b)cooperative societies (c)trade association Association of Nigeria (c)Chambers of
(d)chamber of commerce (e)manufacturers commerce (d)confederation of industrialists
Association (WAEC 1989, Q25) (e)trade union (WAEC 1993, Q80)

2. Which of the following is not a true 7. Which of the following is not a trade
characteristics of a chamber of commerce (a)it association (a)Nigeria Union of Teachers
is not for profit making (b)it is open only to (b)Nigerian Medical Association (c)Patent
political party members (c)it is democratically Medicine Dealers Association (d)Motor Spare
administered (d)it is a voluntary organization Parts Dealers Union (e)Textile Manufacturers
(e)it is independent of government control (WAEC 1994, Q64)
(WAEC 1989, Q52; q018 Q19)
8. A voluntary body formed by people in the
3. An association formed by tyre same line of business for the purpose of
manufacturers to safeguard and promote their protecting their interest is (a)business
interests is known as (a)co-operative society participation (b)trade association (c)trade
(b)chamber of commerce (c)trade union union (d)Chambers of commerce (e)trading
(d)consortium (e)trade association (WAEC partners (WAEC 1995, Q87; 2012 Q7; 2015
1990, Q66) Q10)

4. Which of the following associations will be 9. An association of businessman engaged in

directly affected by legislations on tariffs and both commerce and industry is called (a)trade
taxes on raw materials? The (a)Nigerian Bar association (b)trade union (c)chamber of
Association (b)Nigerian Employers' commerce (d)Trust (e)Cartel (WAEC 1996,
Consultative Association (c)Nigerian Medical Q38)
Association (d)Manufacturers' Association of
Nigeria (e)Nigerian Union of Road Transport 10. An association of employees in an
Workers (WAEC 1992 Q67) organisation are called (a)trade union (b)trade
association (c)consumer association (d)credit
5. Which of the following is not a function of a union (e)co-operative society (WAEC 1996,
chamber of commerce (a)duplication of Q48)
journals for members (b)consideration of
customs regulations and tariffs (c)issuing 11. An association of businessmen including
certificates of origin (d)issuing consular manufacturers, traders, bankers and people
invoice to exporters (e)organising trade fairs engaged in business in am area is known as
(WAEC 1992, Q87) (a)trade association (b)chamber of commerce
(c)trade union (d)cooperative society (WAEC
2001, Q44)
12. A voluntary body formed by people in the (a)trade union (b)Consumers' Association
same line of business is known as (a)trade (c)Chamber of Commerce (d)Trade
union (b)trade association (c)Cartel Association (WAEC 2011, Q33)
(d)Employers' Association (WAEC 2002, Q50)
19. An organisation formed mainly by traders
13. An association formed mainly by traders and manufacturers to cater for interest of
on the same line of business is known as members is (a)trade union (b)cooperative
(a)trade union (b)cooperative society (c)trade society (c)trade association (d)chamber of
association (d)chamber of commerce (WAEX commerce (WAEC 2016, Q28)
2005, Q16)
20. Which of the following is not performed
14. Which of the following refers to a by trade association (a)research and
voluntary association that represents a cross- development (b)standardization of products
section of business interest in an area (c)credit facilities (d)technical information
(a)manufacturer association (b)chamber of (WAEC 2016, Q32)
commerce (c)consumers association
(d)employer association (WAEC 2007, Q21; 21. The coming together of people who
2014 Q47) engage in trade and industry in a particular
area is (a)an employers' association (b)a trade
15. A chamber of commerce normally consist association (c)a chamber of commerce (d)a
of (a)officials of trade unions of commercial trade union (WAEC 2017, Q39; 2018 Q13)
workers (b)all the people engaged in one
aspect of trading and manufacturing (c)all the 22. The organisation of local and international
workers in one branch of commerce (d)the trade fairs is the responsibility of (a)trade
people who represent a cross-section of association (b)labour unions (c)Chambers of
business interests in a town (WAEC 2008, commerce (d)customs and Excise authorities
Q42) (WAEC 2017, Q42)

16. A group of musicians can come together to 23. One of the aims of trade associations is to
form a (a)chamber of commerce (b)public (a)liaise with other trade associations in other
corporation (c)trade association (d)trade union countries (b)organise trade fairs and
(WAEC 2008, Q43) exhibitions (c)provide quality goods and
services (d)promote commercial activities in
17. Encouraging a high quality of members’ their business (WAEC 2019, Q14)
products through the circulation of research
information is a function of (a)Manufacturers
Association (b)Trade Union (c)Employers
Association (d)Consumer Association (WAEC
2011, Q32)

18. A voluntary association of business

executives within a locality is known as
THEORY 1990, Q8b; 2006 Q9) a. Chamber of
commerce b. Trade Association
1. Explain each of the following (WAEC 1990,
Q8) a. Chamber of commerce (WAEC 2002, 3. Give five examples of Trade Association
Q4a) b. Trade association (WAEC 1998, Q10) (WAEC 1993, Q10a; 1998, Q10ii)

2. Give any four functions each of a Chamber 4. State six functions of Manufacturing
of Commerce and Trade Association (WAEC Association (WAEC 2002, Q4b; 1999, Q9d)
OTHER FORMS OF TRADE ASSOCIATION

1. The process whereby a firm buy over the 9. A company that acquires a majority of the
assets and liabilities of another firm is known shares of other companies with voting rights is
as (a)amalgamation (b)Cartel (c)factoring regarded as (a)a consortium (b)a holding
(d)holding (e)combine (WAEC 1989, Q73) company (c)an amalgamator (d)a subsidiary
company (e)Cartel (WAEC 1993, Q77)
2. The Organisation of Petroleum Exporting
Countries (OPEC) is an example of a (a)Cartel 10. A group of companies that agrees to pool
(b)Trust (c)holding company (d)consortium its resources to achieve a particular objective
(e)chamber of commerce (WAEC 1990, Q39) is known as (a)consortium (b)holding
company (c)Cartel (d)Trust (e)subsidiary
3. The purchase of one company by another is (WAEC 1993, Q82)
called (a)incorporation (b)merger (c)Cartel
(d)nationalisation (e)privatisation (WAEC 11. If a motor assembly plants absorbs a tyre
1990, Q84) manufacturing company solely for its tyre
needs such an arrangement is known as
4. The main objective of a Cartel agreement is (a)vertical integration (b)lateral integration
to control (a)output to maintain price (c)horizontal integration (d)diagonal
(b)directors to achieve higher profits integration (e)forward integration (WAEC
(c)workers to increase output (d)requirement 1993, Q83)
to cut costs (e)shareholders to maintain shares
(WAEC 1990, Q85) 12. Which of the following is formed with a
view of fixing output for members so that
5. A holding company assumes control of its price is maintained at a high level (a)price
subsidiaries through (a)taking over routine control board (b)Chambers of commerce
administration (b)becoming the principal (c)cartels (d)holding companies (e)trade union
customer (c)majority shareholding (d)paying (WAEC 1993, Q84)
all the debts outright (e)taking over the assets
(WAEC 1990, Q87; 1995, Q83) 13. An association of firms producing similar
commodities formed in order to keep up
6. The outright purchase of one company by proces by restricting output is called
another is called (a)absorption (b)merger (a)chamber of commerce (b)custom union
(c)Cartel (d)acquisition (e)privatisation (c)an amalgamation (d)Cartel (e)combination
(WAEC 1991, Q97) (WAEC 1994, Q11)
7. Groups of firms cooperating to carry out a 14. The coming together of firms at different
giant projects too large for a single firm to stages of the production process is known as
undertake is called a (a)merger (b)trade (a)horizontal integration (b)vertical integration
association (c)consortium (d)Cartel (c)consortium (d)Cartel (e)holding company
(e)chamber of commerce (WAEC 1992, Q84) (WAEC 1994, Q28)
8. Business mergers are on the increase these 15. Firms merge in order to (a)discourage the
days for the main purpose of (a)having more employment of specialists (b)encourages
directors (b)enjoying advantages of large scale competition (c)discourage the use of each
activities (c)easy settlement of disputes among other bye products (d)create a monopoly
businessmen (d)organising trade fairs and (e)decrease the size of the business (WAEC
exhibitions (e)government recognition 1994, Q62)
(WAEC 1992, Q90)
16. A group of firms that agree to operate a 25. A business firm which control more than
common price is a (a)Cartel (b)Customs union half of another's firms’ equity is a (a)holding
(c)price rings (d)holding companies company (b)consortium (c)Cartel (e)syndicate
(e)subsidiary company (WAEC 1994, Q91) (WAEC 2001, Q12)

17. When firms producing similar 26. Where two or more companies agree to
commodities join together, this is (a)vertical work on a project too large for one of them,
merger (b)holding companies (c)horizontal this is called (a)consortium (b)merger
merger (d)cartel (e)lateral merger (WAEC (c)combination (d)Cartel (WAEC 2002, Q15)
1995, Q10)
27. The main feature of a holding company is
18. Which of the following is specifically (a)that resources are used for the interest of the
formed to finance projects that are too large community (b)accepting responsibilities
for a single firm to undertake (a)trust beyond the aims of private enterprises (c)that
(b)merger (c)holding companies (d)Cartel it has financial control over other companies
(e)consortium (WAEC 1995, Q81) (d)that it just profit sharing schemes foe
employees (WAEC 2003, Q6)
19. An organisation that aims at restricting
supply in order to keep up price is known as 28. The amalgamation of firms engaged in
(a)cartel (b)price rings (c)GATT (d)ECOWAS cotton processing and the manufacturing of
(e)customs union (WAEC 1995, Q84) textiles is (a)horizontal integration (b)vertical
integration (c)lateral integration (d)joint
20. A group of public limited companies that venture (WAEC 2004, Q8)
collectively own a joint venture is known as
(a)holding company (b)consortium (c)Cartel 29. A group of companies formed to carry out
(d)Trust (e)merger (WAEC 1996, Q88) an activity that is beyond the ability of any
individual company is (a)a subsidiary (b)a
21. A company which acquires more than 50% merger (c)a consortium (d)an acquisition
voting shares of another company is called (WAEC 2019, Q12)
(a)trust (b)Cartel (c)an amalgamation (d)a
consortium (e)a holding company (WAEC 30. The combination of business activities of
1997, Q45) Abbas Ltd and Denko Ltd to form one large
company is (a)an amalgamation (b)a
22. Which of the following is true of a merger consortium (c)an acquisition (d)a Cartel
(a)original names of the companies are (WAEC 2019, Q49)
retained (b)expansion is restricted (c)all debts
are written off (d)the company formed THEORY
acquires a new name (e)all workers are paid
bonuses (WAEC 1997, Q47) 1. What is business merger b. Explain the
reasons why businesses merge c. Give three
23. The coming together of firms at different disadvantages of business merger (WAEC
stages of the production process is known as 199Q, Q7)
(a)horizontal merger (b)vertical merger
(c)amalgamation (d)Cartel (WAEC 2000, Q5) 2. Write short notes on the following (a)price
rings (b)syndicate (c)holding company
24. When firms that operate at different stages (d)cartel (e)trust
in the production of a commodity merge, this
is known as (a)horizontal integration
(b)vertical integration (c)absorption
(d)conglomerate (e)Cartel (WAEC 1997, Q91)
INSURANCE (d)burglary (e)loss from staking in lotteries
(WAEC 1992, Q64)
1. The assured is the (a)insurance company
(b)insurance company's client (c)insurance 9. The term subrogation relates to (a)finance
broker (d)insurance agent (e)insurance (b)Banking (c)premium (d)advertising
manager (WAEC 1989, Q20) (e)insurance (WAEC 1992, Q95)

2. Which of the following is an insurance 10. The insured is prevented from making
principle (a)endorsement (b)premium profit from claims under more than one policy
(c)proximate cause (d)fidelity guarantee for the same risk by the principle of
(e)surrender Value (WAEC 1989, Q97; 2012 (a)contribution (b)subrogation (c)utmost Good
Q26) Faith (d)proximate cause (e)insurable interest
(WAEC 1993, Q35)
3. In insurance, the term "Uberimae Fides"
stands for (a)utmost Good Faith 11. When an insured person admits that he has
(b)subrogation (c)insurable interest been indemnified, he means that (a)the
(d)indemnity against loss (e)proximate cause insurance company has accepted his claims
(WAEC 1989, Q41) (b)the damaged property has been recovered
(c)he has paid his premium fully (d)the
4. The amount paid by the assured to the
insurance company has restored him to his
insured is called (a)interest (b)premium
former position (e)he has recovered benefits
(c)dividend (d)indemnity (e)surrender Value
lost through acting in bad faith (WAEC 1993,
(WAEC 1990, Q48, 2008 Q28)
Q44)
5. When a number of insurers are liable under
12. Which of the following is not an insurable
one given policy, the principle of insurance
risk (a)fire accident (b)life assurance
that applies is (a)indemnity (b)subrogation
(c)burglary (d)marine disaster (e)loss of profit
(c)abandonment (d)contribution (e)proximate
(WAEC 1993, Q97)
cause (WAEC 1991, Q20)
13. Which of the following term relates to
6. A house insured against damaged by flood
insurance I. Proximate cause II. Letter of
was burnt down and the owner had no claims.
Hypothecation III. Indemnity IV. Caveat
Which of the following prevented him from
Emptor V. Uberimae Fidei (a)I, II and IV only
making any claim? The principle of
(b)II, IV and V only (c)I, III and V only (d)II,
(a)indemnity (b)subrogation (c)insurable
III and V only (e)III, IV and V only (WAEC
interest (d)proximate cause (e)utmost good
1994, Q5)
faith (WAEC 1991, Q25)
14. An establishment that specialises in taking
7. The principle of subrogation in insurance
care of risks is called (a)a hire purchase
means that (a)the insured could make a profit
company (b)an accepting company (c)an
from his loss (b)the insured must be fully
insurance company (d)a finance company (e)a
indemnified (c)those insured should pool their
conforming house (WAEC 1994, Q10)
risks (d)parties to the insurance contract must
reveal all relevant facts (e)the insurer takes the 15. Business risks that can be insured against
place of the insured in respect of claims due includes I. Imitation of a company's product II.
from third parties (WAEC 1991, Q62) Damages caused by the use of a company's
product III. Changes in fashion IV. Damages
8. Which of the following is not an insurable
caused by fire V. Damages caused by flood
risk (a)loss from fire accident (b)loss from
(a)I, II and V only (b)II and IV only (c)III and
accidents and sickness (c)fidelity guarantee
IV only (d)IV and V only (e)I, II, III and V (b)the probability of a third world war (c)flood
only (WAEC 1994, Q90) resulting from excessive rain in a year (d)the
death of a business partner (e)loss due to
16. Which of the following is not true of change in fashion (WAEC 1998, Q23)
insurance (a)a large number of people face the
same risk (b)possibility of making a profit out 24. If Mr. Ola insures Mr. Obi's house the
of an event (c)only a small number will insurance may in the event of a loss, refuse to
actually suffer the loss in any one year (d)a pay compensation based on the principle of
large number makes a small contribution to a (a)utmost good faith (b)subrogation
common pool (e)possibility of accessing the (c)insurable interest (d)indemnity
frequency of occurrence of the event (WAEC (e)contribution (WAEC 1998, Q24)
1995, Q30)
25. The amount which the insured pays the
17. Which of the following is a non-indemnity insurer periodically is (a)surrender Value
insurance (a)marine (b)life (c)fire (d)bad debts (b)premium (c)interest (d)compensation
(e)burglary (WAEC 1995, Q34) (e)contribution (WAEC 1998, Q68)

18. When an insurance policy is declared void 26. Insurance is necessary because of the need
because of a false declaration, the principle to (a)pool resources together (b)meet
involved is (a)indemnity (b)insurable interest uncertainties in future (c)make profit (d)lend
(c)proximate cause (d)utmost Good Faith money to individuals (WAEC 1999, Q25)
(e)subrogation (WAEC 1995, Q39; 2012 Q9)
27. Mr. Ajai did not disclose that he stores
19. Which of the following is a non-indemnity drums of petrol when he took a fire insurance
insurance (a)personal accident insurance policy. Under which of the following principle
(b)burglary insurance (c)fire insurance will the insurance company reject his claims
(d)consequential loss insurance (e)third party (a)subrogation (b)utmost good faith
insurance (WAEC 1996, Q33) (c)insurable interest (d)proximate cause
(WAEC 1999, Q49)
20. The insurance principle which expects the
insured and the insurer to disclose all facts 28. When an insurance company indemnifies
about a proposed contract is called the insured and takes over his rights, this is
(a)Uberimae Fidei (b)indemnity (c)proximate known as (a)abandonment (b)subrogation
cause (d)insurable interest (e)contribution (c)proximate cause (d)contribution (WAEC
(WAEC 1997, Q34) 2000, Q31)

21. The principle of insurance that restores the 29. Which of the following means restoring
insured to the position he occupied the insured to the position he was just before
immediately before the loss occurred is called the loss occurred (a)indemnity (b)subrogation
(a)utmost good faith (b)indemnity (c)proximate cause (d)utmost good faith
(c)subrogation (d)contribution (e)insurable (WAEC 2001, Q16)
interest (WAEC 1997, Q68)
30. The principle of subrogation imposes an
22. The payment made to the insured for loss obligation on the insured to (a)disclose all
incurred is called (a)premium (b)indemnity material information (b)have financial risks in
(c)ex gratia payment (d)surrender Value the object insured (c)collect compensation
(e)interest (WAEC 1997, Q99) from only one insurer (d)surrender legal rights
after compensation (WAEC 2002, Q32)
23. Which of the following is an example of
an insurable risk (a)change in consumer's task
31. If the insured has been fully indemnified, compensation? A. indemnity B. insurable
the insurers are entitled to take any advantage interest C. Proximate cause D. Utmost good
due to the insured. The principle of insurance faith
involved is (a)indemnity (b)subrogation
(c)contribution (d)insurable interest (WAEC 38. The amount D60,000 quoted represents A.
2003, Q35) Premium B. sum insured C. contribution D.
compensation
32. The primary objective of insurance is to
(a)prevent accidents (b)meet uncertainties in 39. Which of the following is not a contract of
the future (c)give loan to businessmen indemnity (a)Marine Insurance (b)fire
(d)control the flow of cash (WAEC 2004, Q26) insurance (c)life assurance (d)burglary
insurance (WAEC 2009, Q6)
33. Which of the following is not a principle
of insurance (a)indemnity (b)insurable risk 40. Which of the following insurance
(c)subrogation (d)insurable interest (WAEC principles states that a person must be in a
2005, Q45; 2011 Q25) position to suffer financially in the event of a
loss (a)proximate cause (b)indemnity
34. The principle where many insurance (c)insurable interest (d)subrogation (WAEC
companies join to compensate one policy 2010, Q12; 2015 Q34)
holder is called (a)contribution (b)subrogation
(c)compensation (d)indemnity (WAEC 2006, 41. Which of the following is not an insurance
Q32) of indemnity (a)life (b)marine (c)burglary
(d)fire (WAEC 2012, Q13)
35. The term "Utmost Good Faith" in
insurance requires that the insured must (a)not 42. An insurance principle that prevents a
make profits from the loss suffered (b)receive person from insuring what he does not stand to
his compensation fully in the event of loss lose financially if the insured risk occurs is
(c)disclose all relevant facts on what is being called (a)indemnity (b)insurable risk
insured (d)pay his premium regularly (WAEC (c)proximate cause (d)subrogation (WAEC
2006, Q44; 2015 Q22) 2013, Q7)

Use the following information to answer 43. The insurance principle of indemnity does
questions 36 to 38 not apply to (a)fire insurance (b)life assurance
(c)burglary insurance (d)marine insurance
Madam Tope insured her shop premises for (WAEC 2013, Q48)
the sum of D60,000, when insuring the shop,
she did not tell the Insurance company that she 44. An insurance principle which prevents an
cooks in the shop, but told the insurance insured from making profit when compensated
company that she sells second hand clothes. is known as (a)proximate cause (b)indemnity
Hence she insured her store against natural (c)insurable interest (d)utmost good faith
causes. Tope's shop got burnt yesterday by fire (WAEC 2014, Q12)
from the cooking pot. (WAEC 2007, Q39-41) 45. A house insured against damage by flood
36. Which of the following insurance was burnt down and the owner has no claim.
principles was breached by Madam Tope? A. Which of the following principles prevented
Insurable interest B. Contribution C. Utmost him from making a claim (a)indemnity
good faith. D. Subrogation. (b)contribution (c)insurable interest
(d)proximate cause (WAEC 2015, Q32)
37. Which of the following insurance
principles will prevent her from claiming
46. Where a number of insurance companies (b)insurable interest (c)proximate cause
are liable under one policy, the principle (d)subrogation (WAEC 2019, Q26)
applicable is (a)subrogation (b)contribution
(c)indemnity (d)utmost good faith (WAEC 50. With the exception of life assurance and
2016, Q1) personal accident insurance, contracts of
insurance are contracts of (a)premium
47. Under the principle of subrogation, the (b)indemnity (c)proximate cause (d)utmost
insurer has the right to (a)abrogate the contract good faith (e)general average cause (WAEC
(b)re-insure the property (c)take over any legal 1990, Q49)
rights of the insured (d)take over all liabilities
of the insured (WAEC 2017, Q43) 51. In insurance, risks that have no statistics
for their calculations are (a)insurable risks
48. A risk whose probability of occurrence is (b)certain risks (c)jettison (d)particular
impossible to estimate is (a)uninsurable risk average (WAEC 2014, Q28)
(b)pure risk (c)particular risk (d)insurable risk
(WAEC 2019, Q19)

49. The principle that applied when Greece

and Sunwar Insurance companies jointly
indemnified Fatou for the destruction of her
storey building by fire is (a)contribution
THEORY 5. What is non-indemnity insurance? (WAEC
2006, Q3a)
1. What is meant by the term insurable risk b.
Explain any four circumstances when an 6. Differentiate between indemnity and
insured may not be indemnified (WAEC 1989, compensation (WAEC 2007 Q4c)
Q8)
7. Explain the following insurance terms
2. Differentiate between contribution and (WAEC 2008, Q3) a. Proximate cause
group insurance (WAEC 1998, Q7b) (WAEC 2013 Q5) b. Utmost good faith c.
Contribution d. Contract of non-indemnity
3. Distinguish between indemnity and non- (compensation)
indemnity insurance and give two examples
each (WAEC 2001, Q1b) 8. List and explain six principles of insurance
(WAEC 2012, Q4b)
4. State four advantages of insurance to a
businessman (WAEC 2002, Q3b) 9. State two distinguishing features between
insurance and assurance (WAEC 2013, Q7e)
TYPES OF INSURANCE

1. Prior to the issue of a certificate on a motor (c)fidelity guarantee insurance (d)pension

insurance contract, the insured is issued with a scheme (e)fire insurance (WAEC 1989, Q98)
(a)licence of insurance (b)insurance policy
certificate (c)a cover note (d)a simple receipt 3. Fidelity guarantee is an insurance cover
(e)an invoice (WAEC 1989, Q17) against loss arising from (a)trade debts
(b)personal accidents (c)dishonest staff (d)fire
2. Which of the following is an insurance disaster (e)Sea disaster (WAEC 1990, Q42)
cover undertaken by the government for its
employees (a)endowment (b)marine insurance 4. Which of the following is not a type of
Marine Insurance (a)endowment (b)freight
(c)accident (d)fidelity (e)fire (WAEC 1990, 12. Voyage Policy is issued when goods are
Q43) insured (a)between one port and another
(b)according to the weight (c)according to the
5. The amount paid by the insurance company value of the goods (d)according to the risk
to the insured from giving up his policy is involved (e)for a specific time (WAEC 1992,
called (a)surrender Value (b)cash bonus Q78)
(c)assured sum (d)dividend (e)premium
(WAEC 1990, Q47) 13. A person who wants to undertake an
insurance policy usually completes (a)a
6. The method by which insurance companies proposal form (b)a promotion form (c)an
spread their risks to other insurance companies application form (d)an agreement form (e)a
is called (a)double insurance (b)under subscription form (WAEC 1993, Q47; 2013
insurance (c)re-insurance (d)over insurance Q50)
(e)underwriting (WAEC 1991, Q19)
14. Third party insurance covers damages to
7. The insurance cover on property being (a)to both passengers and the vehicle
shipped from one location to another comes (b)caused by the vehicle insured (c)to all
under (a)burglary insurance (b)fire insurance parties concerned (d)to both vehicles involved
(c)marine insurance (d)annuity insurance (e)to the insured vehicle only (WAEC 1993,
(e)comprehensive automobile insurance Q50)
(WAEC 1991, Q39)
15. Which of the following gives a temporary
8. An application form which is filled by protection to the insured while the policy is
anyone taking out an insurance policy is called being drawn up (a)proposal form
(a)policy form (b)a claims form (c)a proposal (b)endorsement (c)ex gratia payment (d)cover
form (d)a questionnaire (e)an entity form note (e)certificate (WAEC 1994, Q16)
(WAEC 1991, Q41)
16. The agreed amount payable to a policy
9. The two main categories of marine losses holder when the event insured against occurs
are (a)total loss and partial loss (b)total loss is (a)surrender Value (b)sum assured
and particular average loss (c)total loss and (c)indemnity (d)insurable interest
constructive loss (d)total loss and actual loss (e)endowment (WAEC 1994, Q37)
(e)partial loss and constructive loss (WAEC
1991, Q46) 17. An Actuary is an expert who (a)accesses
the extent of risk sustained by an insured
10. Which of the following policies could be (b)calculated the premium payable for an
taken for a guaranteed life income insurance policy (c)bring clients to an
(a)endowment assurance (b)household policy insurance company for a commission
(c)annuity (d)personal accidents insurance (d)undertakes to cover a risk or part of it
(e)consequential loss insurance (WAEC 1991, (e)writes up insurance cover notes for the
Q75) insured (WAEC 1994, Q76)
11. The policy which safeguards the employer 18. Which of the following policies qualifies
from loss sustained as a result of fraudulent the holder to income tax relief (a)accident
acts of his workers in the (a)Employers insurance (b)public liability insurance
Liability Insurance (b)loss policy (c)utmost (c)comprehensive insurance (d)endowment
Good faith (d)group insurance (e)fidelity assurance (e)fidelity guarantee insurance
guarantee policy (WAEC 1992, Q65) (WAEC 1995, Q31)
19. An insurance policy which gives cover (b)surrender Value (c)accrued value
against claims made by employees who suffer (d)assured value (WAEC 2016, Q22)
injury at work is (a)comprehensive insurance
(b)employer's liability insurance (c)personal 28. Fidelity guarantee insurance is cover
accident insurance (d)consequential loss against loss arising from (a)trade debt
insurance (e)fidelity guarantee insurance (b)personal accident (c)dishonest staff (d)fire
(WAEC 1995, Q41) disaster (WAEC 2016, Q18)

20. Life Assurance premium is determined by 29. Which of the following is an example of
the (a)educational standard of the assured life assurance (a)third party policy
(b)reputation of the assured (c)number of the (b)comprehensive policy (c)fidelity guarantee
assured’s children (d)age of the assured (e)sex policy (d)endowment policy (WAEC 2016, Q4)
of the insured (WAEC 1995, Q98; 2009 Q5) 30. A professional in insurance who evaluates
21. An insurance company shares its accepted the level of loss for claims is an (a)adjuster
risk with others in form of (a)Reinsurance (b)assessor (c)underwriter (d)Actuary (WAEC
(b)subrogation (c)mutual insurance (d)fidelity 2015, Q3)
guarantee insurance (e)contribution (WAEC 31. Mr Biu has been paying the premium of a
1996, Q9) straight Life Assurance policy for several
22. In marine insurance, the deliberate years. The surrender value of the policy is the
throwing of some goods into the sea to prevent amount that A. would be paid to Mr. Biu if he
the ship from sinking is an example of should discontinue with the policy B. would
(a)constructive total loss (b)a partial loss (c)a be paid to Mr. Biu's beneficiary if he dies C. is
general average loss (d)a total loss (e)an actual paid annually by Mr. Biu to the insurance
loss (WAEC 1996, Q36) company D. the amount Mr. Biu has paid plus
interest (WAEC 2013, Q19)
23. A firm that accepts a portion of the risk
involved in an insurance contract is (a)broker 32. An insurance policy that covers the body
(b)an Actuary (c)a speculator (d)an of the ship only is called A. Haulage insurance
underwriter (e)an assessor (WAEC 1996, Q49) B. Voyage insurance C. Hull insurance D.
Cargo insurance (WAEC 2013, Q17)
24. The insurance policy taken to cover
dishonesty of account personnel of an 33. Voyage policy insurance is associated with
organisation is (a)Employers Liability A. fire B. life C. marine D. burglary (WAEC
(b)fidelity guarantee (c)life endowment 2013, Q8)
(d)marine insurance (WAEC 2010, Q3; 2018,
34. In marine insurance, when a particular
Q21) cargo is thrown into the sea in order to prevent
25. Which of the following is a type of Marine the ship from sinking, the type of marine loss
Insurance (a)endowment (b)Hull (c)accident is A. particular average loss B. general average
(d)fidelity (WAEC 2017, Q46) loss C. total average loss D. constructive
average loss (WAEC 2011, Q20)
26. The expert responsible for the calculation
of probability of risks in insurance is (a)an 35. The work of actuaries is to (a)underwrite
Actuary (b)an underwriter (c)a broker (d)a insurance risks (b)calculate insurance
solicitor (WAEC 2017, Q27) premium (c)settle insurance calms (d)assess
profits for insurance companies (WAEC 2010,
27. The worth of a life assurance policy before Q38)
its maturity date is (a)residual value
36. A type of policy where the assured or his 44. The transfer of risks already undertaken
dependents will not get anything if he dies from insurance one insurance company to
within the period of the policy is known as A. another is? A. over-insurance B. re-insurance
group policy B. whole life policy. C. C. under insurance D. group insurance
endowment policy D. term policy (WAEC (WAEC 2002, Q30)
2009, Q45)
45. Hull insurance is taken to cover? A. injury
37. Which of the following is referred to as the to the crew of the ship B. non-payment of
oldest form of insurance? A. Marine insurance freight C. damage to the cargo D. damage to
B. Burglary insurance C. Whole life insurance body of the ship (WAEC 2002, Q31)
D. Accident insurance (WAEC 2007, Q37)
46. A retirement insurance policy which
38. The staff responsible for the calculations enables the assured to receive income for a
of probability of losses in insurance is the A. specific period is? A. annuity B. Endowment
Actuary B. Underwriter C. Broker D. Solicitor C. whole life D. fidelity guarantee (WAEC
(WAEC 2007, Q7) 2000, Q29)

39. Which of the following is the main 47. The Third Party Motor Vehicle Insurance
purpose of a third party insurance? To A. Policy covers damages A. to both passengers
indemnify an injured outsider B. indemnify the and vehicle B. caused by the vehicle insured C
insured C. protect the vehicle against theft D. to all parties concerned D. to all vehicles
compensate the driver for injuries sustained involved E. to the insured vehicle only
(WAEC 2006, Q43) (WAEC 1998, Q87)

40. Which of the following terms is used in 48. One of the features of reinsurance is the A.
marine insurance when the cargo suffers total transfer of risk from one company to
partial loss? A. General Average B. Particular another B. protection of insurance company by
Average C. Floating Policy D. Open Cover the government C. protection of the insured by
(WAEC 2005, Q46) the third party D. collection of indemnity by
third party only E. transfer of a portion of risk
41. Time Policy in insurance is associated with from one insurer to another (WAEC 1997,
(a)motor vehicles (b)ships at sea (c)life Q88)
endowment (d)goods in transit (WAEC 2005,
Q33) 49. The insurance policy against claims from
customers who might be injured within the
42. The amount of insurance premium to be business premises is called A life assurance
paid depends on the A. supply and demand of policy B. endowment policy C. fidelity
a particular company's service B. extent of the guarantee insurance D. employer's liability
possible loss and the frequency of the risk C. insurance E. engineering insurance (WAEC
number of insurance companies in a place D. 1998, Q28)
amount of profit to be made by the insurer
(WAEC 2004, Q43) 50. Which of the following is not covered by
fire insurance policy? A. Consequential loss B.
43. Which of the following types of insurance Gas explosion C. Domestic boilers D.
is taken against claims made by staff who get Lightning E. Kerosine explosion (WAEC 1997,
injured while at work? A. Fidelity guarantee Q35)
insurance B. Consequential loss insurance C.
Products' liability insurance D. Employers 51. The sum of money the assurer is prepared
liability insurance (WAEC 2003, Q34) to pay the assured in total discharge of a
contract before its maturity is A Dividend B.
premium C. annuity D. surrender value E. known as A. a comprehensive insurance B. a
interest (WAEC 1996, Q75) whole-life insurance C. an endowment policy
D. an annuity E.a third party insurance
52. An insurance policy which benefits one's (WAEC 1996, Q92)
family only in the event of one's death is
THEORY 6. Explain each of the following insurance
terms a. Consequential loss b. Cover Note
1. Write short notes on each of the following a. (WAEC 2001, Q3a)
Marine insurance b. Accident insurance c.
Group insurance d. Export credit guarantee 7. Distinguish between the following terms
insurance e. Fire insurance (WAEC 1996, Q3) used in insurance a. Third party and
comprehensive policy b. Whole life and
2. Give five reasons why a life assurance endowment policy c. Premium and
policy may be taken (WAEC 1997, Q8a) compensation (WAEC 2002, Q4)
3. Describe any five insurance policies which 8. Explain the following terms used in
a large department shop owner may take insurance (WAEC 2005, Q4)
(WAEC 1997, Q8b)
a. Surrender value b. Policy c. Reinsurance d.
4. Who is an Actuary b. Describe any three Insurance underwriter (WAEC 2011, Q6a)
types of risk that may be insured against under
marine insurance (WAEC 1998, Q7a) 9. List and explain three types of Life
Assurance policies (WAEC 2006, Q3b)
5. List and describe four insurance policies
available to a ship owner (WAEC 2001, Q1a)

5. Which of the following enjoins the buyers

to examine goods thoroughly before making a
CONSUMER PROTECTION purchase? A. Uberrimae fidei B. Caveat
1. The organized efforts of consumers to subscriptor C. Consumer sovereignty D.
protect themselves against the unfair practices Caveat venditor E. Standard for deferred
of businessmen is called A. strike B. payment (WAEC 1991, Q81)
consumerism C. amalgamation D. co-
6. The concept that consumers decide what
operation E. propaganda (WAEC 1990, Q25)
goods and services shall be produced is known
2. In the contract of sale of goods, 'let the as consumer A. protection B surplus C.
buyer beware' is signified by A. del credere B. sovereignty D. behaviour E co-operative
uberrima fidei C. caveat emptor D. res ipsa (WAEC 1993, Q39)
loquitor E. caveat vendetta (WAEC 1989, Q13)
7. The set of actions of governments, and other
3. An individual who makes the final use of organized bodies in response to users'
goods and services provided by a firm is the A complaints about goods and services is known
manufacturer B. wholesaler C. consumer D as A consumer sovereignty B. consumer
retailer E trader (WAEC 1990, Q38) protection C. consumer orientation D.
consumer loyalty E. consumers' preferences
4. The consumer is always right. This (WAEC 1998, Q52)
describes the doctrine of A. social
responsibility B. consumer movement C. 8. Which of the following is not a right of the
consumer sovereignty D. consumer protection consumer? A. Safety B. Choice C. Discount D.
E. caveat venditor (WAEC 1991, Q71) Value (WAEC 2000, Q48)
9. Which of the following is not a means of 12. Consumer protection council places an
consumer protection? A. Price control B. Sales obligation on producers to ensure that their
Goods Act C. Trade Description act D. Tax products A. are wholesome and safe B. are
laws (WAEC 2000, Q45) cheap C. do not evade customs examination D.
are branded (WAEC 2014, Q21)
10. Which of the following is not concerned
about consumer protection? A. Foods and 13. The term consumer sovereignty means that
Drugs Act B. Trade Descriptions Act C. Price the A. seller is the king. B. product is supreme.
control Act D. General Agreement on Traiffs C. buyer is the king D. Producer is the king
and Trade (WAEC 2003, Q47) (WAEC 2015, Q15)

11. When consumers engage in actions that 14. The organized effort of consumers to
express dissatisfaction with the quantity, price protect themselves against the unfair practices
and quality of goods available, such action is of businessmen is A. strike B. consumerism. C.
termed A. Consumer behaviour. B. picketing. D. demonstration. (WAEC 2016,
Consumerism. C. Consumer education. D. Q6)
Consumer orientation (WAEC 2011, Q50)
THEORY

1. What is consumerism? (WAEC 1989, Q7a)

2. Give five reasons why consumers need protection (WAEC 1989 Q7b; 1992, Q8a)

3. State five measures taken by government or associations to protect consumers in Nigeria (1989 Q7c)

CONSUMER PROTECTION II

1. Which of the following is primarily the quality of goods to consumers D.

responsible for protecting consumers against Improving the quality of services to shoppers
poor quality goods? A. Nigerian National E. Making profit for consumers (WAEC 1992,
Supply Company B. Manufacturers Q20)
Association of Nigeria C. Industrial
Arbitration Panel D. Standards Organization 5. Which of the following organizations aims
of Nigeria E. Nigeria Chambers of Commerce primarily at protecting the consumer? A.
(WAEC 1989, Q54, 1993 Q62) Standards Organisation of Nigeria B
Chambers of Commerce C. State Security
2. The body which ensures that consumers are Service D. Nigerian Red Cross Society E.
protected against harmful products in Nigeria Manufacturers Association of Nigeria (WAEC
is A. NAFDAC B. NDLEA C. SON D. CPC 1992, Q55)
(JAMB 2012)
6. Which of the following ensures that
3. The law which stipulates that labels should manufactured goods conform to the required
give an accurate account of a product is the A. standard? A. Nigerian Industrial Research
price control act B. consumer credit act C. Centre B. Standards Organization of Nigeria C.
trade description act D. hire purchase act E. Consumer Consultative Committee D. Price
product standard act (WAEC 1990, Q30) Control Board E. Indigenisation Decree
(WAEC 1991, Q80)
4. Which of the following is not a reason for
forming a customer association? A. Protection 7. Which of the following is not the objective
against poor quality goods B. Protection of Consumer Association? To A. ensure that
against unscrupulous salesmen C. Improving fair prices are charged B. educate consumers
on their rights C. prevent fake goods from Description Act (e)Sale of Goods Act (WAEC
entering the market D. prevail or the 1997, Q37)
government to enact consumer protection laws
E. ensure correct specifications as to quality of 14. Food and Drugs Act, Weights and Measure
goods (WAEC 1994, Q33) Act, Standards Organization of Nigeria, etc.
are aimed at (a)raising revenue for government
8. Which of the following does not aim at (b) regulating balance of trade (c) Checking
protecting the consumer? A. Hire Purchase exports. (D) controlling dumping (e)protecting
Act B. Weights and Measures Act C. Consumers (WAEC 1997, Q61)
Indigenisation Act D. Food and Drugs Act E.
Sale of Goods Act (WAEC 1994, Q93, 1996 15. The agency in Nigeria which ensures that
Q66) products conform as to government
speculations and quality control in the (a)
9. Which of the following makes it an offence Nigerian Labour Congress (b)Manufacturers
for a dealer to give misleading information Association of Nigeria (c)Nigerian Chamber
about goods to consumers? A. Food and Drugs of Commerce (d) Standards Organization of
Act B. Restrictive Trade Practices Act C. Nigeria (e)Ministry of Commerce and Industry
Consumer Credit Act D. Trade Description (WAEC 1998, Q55)
Act E. Hire Purchase Act (WAEC 1995, Q65)
16. Which of the following is formed in order
10. Any act that is aimed at making to enforce the rights and powers of buyers in
manufacturers meet some required standards is relation to sellers? (a) Consortium (b)Trade
to A prevent competition B. control price C. Association (c)Consumer Association
protect the consumer D. discourage dumping E. (d)Holding company (WAEC 1999, Q11)
facilitate advertisement (WAEC 1995, Q78)
17. Which of the following makes it an
11. Which of the following ensures that the offence for a trader to make untrue statements
quality of a product is maintained? A. Price about his goods? (a)Consumerism
Control Board B. Chamber of Commerce C. (b)Consumer Credit Act (c) Trade Description
foods and Drugs Act D. Standards Act (d) Price Control Act (WAEC 2005, Q38)
Organization of Nigeria E. Manufacturer's
Association of Nigeria. (WAEC 1996, Q90) THEORY

12. Which of the following government 1. Mention any five legislation aimed at
legislation is not aimed at consumer protection? protecting the consumer (WAEC 1992, Q8b)
A. Taxation Law B. Sales of Goods Act C. 2. Explain five reasons for consumer
Food and Drugs Act D. Standards
protection, stating in each cash one relevant
Organization Act E. Price Control Act (WAEC government law aimed at the enforcement
1997, Q21) (WAEC 1997 Q9; 2018 Q7b)
13. The law stipulating that labels should 3. Explain five agencies responsible for
contain full details about a product is known consumer protection stating two functions of
as the (a)Hire-purchase Act (b)Price Control each
Act (c) Standards Organization Acts (d) Trade
TRANSPORTATION

1. Which of the following is not an obligation (a)Airplane (b)ship (c)Train (d)Bus (e)car
of a Common Carrier? (a) Carrying goods (WAEC 1992, Q26)
securely and safely (b) Liability for losses and
damages (c)Delivery of goods at appropriate 11. Speed is an important consideration for the
places (d)Insuring goods in transit (e) Passing choice of a means of transport where goods
through agreed routes (WAEC 1989, Q47) are (a)bulky (b)interior (c) fragile
(d)perishable (e)durable (WAEC 1995, Q75;
2. Which of the following is not a necessary 1998 Q37)
Seaport facility? (a) Berth (b)warehouse
(c)Container (d)Cranes (e)Tarmac (WAEC 12. The charge paid for failing to off-load a
1989, Q65) vehicle within a stipulated time is called (a)
freight (b)demurrage (c) fine (d) fare
3. The man disadvantage of rail transport to (e)floating charge (WAEC 1993, Q53; 2018
the trader is that (a) It carries bulky goods only Q48)
(b)it's cost of carriage is high (c)it is slow and
inflexible (d)It causes road congestion (e)It 13. The main disadvantage of water transport
travels on Schedule (WAEC 1989, Q66) is that it (a)Is Safe (b)is Slow (c)Can Carry
heavy goods (d)can go Long distance (e)is
4. Which of the following is the most suitable owned by private firms (WAEC 1993, Q76)
means of transporting bulky goods from Lagos
to Kaduna? By (a)Train (b)Aeroplane (c) Ship 14. Air transport is of Considerable
(d)Lorry (e) Caravan (WAEC 1990, Q26) importance today because it (a) is faster than
other means of transport (b)can deliver goods
5. Which mode of transport would you suggest to Owner's destination (c) is relatively cheaper
as the most Suitable for Natural gas? (a) Air (d)can carry bulky goods (e) travels on
(b)Sea (c)Pipeline (d) Road (e)Canal (WAEC schedule (WAEC 1993, Q78)
1990, Q84)
15. when goods are sold, which of the
6. Charges paid by a ship for staying at a port following makes the transfer of ownership
beyond agreed sailing time is called (a) profit effective? (a)Banking (b)Transportation
(b)interest (c)holding (d)Carriage Cost (c)Communication (d)warehousing
(e)demurrage (WAEC 1990, Q33) (e)Advertising (WAEC 1993, Q79)

7. The advantage road transport has over other 16. Which of the following the following
means of transport is that (a) intermediate forms of transport moves crude oil to the ports
terminal handling is eliminated by door-to- for exports? (a)Rail (b)Pipeline (c)road
door delivery (b)Specialized vehicles can be (d)Airport (e) Sea (WAEC 1994, Q49)
used to carry certain loads (c)packaging is
very easy as experts handle it (d)canteen 17. Which of the following should be
services are provided (e)weather conditions do considered when transporting fragile and
not affect it (WAEC 1991, Q9) perishable goods? I. Speed II. Cost III. Safety
IV. Flexibility V. Convenience (a) I and II
8. The Ship Owner's receipt for the goods Only (b)III, IV and V only (c)I, III and IV
accepted for carriage in a Ship is called (a)ship only (d)I, II and V Only (d)II and IV only
manifest (b)charter party (c)mate's receipt (d) (WAEC 1994, Q13)
bill of exchange (e)bill of lading (WAEC 1991,
Q15) 18. Which of the following carries the bulk of
goods involved in foreign trade? (a)Cargo
9. Demurrage is a charge for (a)utilised lay planes (b)Cargo Liners (c)Tramp Vessels (d)
days (b)unused lay days (c)exceeding lay days Steam ship (e)Tankers (WAEC 1994, Q14)
(d)damaged Cargo (e)jettisonal Cargo (WAEC
1991, Q16) 19. Which of the following are advantages of
road transport over air transport? I. Flexibility
10. Which of the following cannot be used as a II. Speed III. Cost IV. Delivery to owners’
means of transport between Kano and Lagos? destination V. Comfort. (a) I, III and IV only
(b)I, II, III and V only (c)II, III and V only (d)I, ship is called (a) time charters (b)Charter of
II and IV only (e)I, II, III and IV only (WAEC demise (c) Shipping conference (d)Voyage
1993, Q81) Charter (e)Charter party (WAEC 1995, Q65)

20. Which of the following is common to 30. The major disadvantage of pipeline
ocean liner and train (a)move on rails (b)form transportation is that it (a) does not involve too
of land transport (c)travel according to much labor (b)Reduce road Congestion (c)is
schedule (d)fitted with long coaches (e)not fast (d)is not easy to detect damages (e)is not
affected by weather conditions (WAEC 1994, affected by weather (WAEC 1997, Q48)
Q77)
31. Which of the following is not a
21. Which of the following widens the market characteristic of charter party? (a) It is a
for goods ? (a) Warehousing (b)Transport contract for carriage by sea (b)it shows freight
(c)Insurance (d)Banking (e) Packaging charges and destination (c)There are time,
(WAEC 1994, Q98) Voyage and charter by demise (d)The whole
or part of a ship of is leased (e)An association
22. Which of the following enables goods to of ship owners (WAEC 1997, Q53)
be available where they are needed?
(a)Advertising (b)Communication 32. Which of the following is a disadvantage
(c)Warehousing (d)Sales promotion of air transport? (a) High Speed (b) Less risk
(e)Transporting (WAEC 1995, Q48) (c)High cost (d)Moves on Schedule
(e)conveys perishable goods (WAEC 1997,
23. Which of the following ensures regular Q52)
transportation of gas and liquid products in all
weather? (a)Train (b)Aeroplane (c)Tanker 33. A Common carrier is (a)a car hire
(d)Trailer (e)Pipeline (WAEC 1995, Q50) company (b)one who engages in the
transportation of passengers Only (c) an
24. Which of the following is a feature of apprentice who helps the master to carry loads
ocean liners? (a) They do not follow any (d)a dealer in various brands of vehicles
definite route (b)the rate charged depends on (e)One who engages in the transportation of
competition (c)they are usually small ships goods and passengers for a fee (WAEC 1997,
that carry only cargo (d)They belong to a Q55)
particular shipping conference (e)they stick to
the coastal lines of a country (WAEC 1995, 34. Movement of Commercial Vehicles in
Q51) Nigeria is controlled by the (a)Nigerian Ports
Authority (b)National Association of Road
25. Which of the following is a contract of Transport Workers (c)Federal Ministry of
carriage? (a) Advice note (b) Charter party Transport (e) Nigerians Customs Authority
(c)Delivery note (d) Consignment note (e)Ship (e)Nigerian Airports Authority (WAEC 1998,
manifest (WAEC 1995, Q52; 1996 Q46) Q7)
26. Containers are suitable for transporting 35. Which of the following is true of rail
goods by (a)Sea Only (b)road only (c)sea and transport? (a)Suitable for perishable goods
rail only (d)road and sea only (e)road, sea and (b)fast over long distance (c)Maximum
rail (WAEC 1996, Q7) handling of goods (d)Guarantee safety of
goods (e)Does not travel on schedule (WAEC
27. Another name for Sea taxi is (a) tramp 1998, Q20)
(b)Liner (c)Special freighter (d)Voyage
charter (e)flying boat (WAEC 1996, Q45) 36. Small Ships which are used to carry goods
and passengers across rivers or Canals are
28. Which of the following is suitable for Called (a)tramps (b)coasters (c)tankers
transporting fish for a long distance (a)tramp (d)Liners (e)ferries (WAEC 1998, Q34)
(b)Cargo Liner (c)Tanker (d)barge
(e)refrigerated ships (WAEC 1996, Q56) 37. Which of the following would be best
conveyed by rail transport where goods are
29. The contract between ship owners and (a)bread (b)Shoes (c)potatoes (d)tomatoes
hirers whereby hirers take full control of the (e)Oranges (WAEC 1998, Q35)
38. One of the factors which determines the insured separately from the crew D. all ships
choice of transport for goods is the (a)cost of normally arrive at their destination with goods
purchasing the mode of transport
(b)maintenance cost of the mode of transport 42. The main advantage of road transport is
(c)number of users of the mode of transport that it is A. convenient and flexible B. cheap
(d)nature of the goods to be transported and direct C. common and fast D. safe and
(WAEC 2018, Q31) available

39. A Shipping document detailing the charges 43. Ships used for international transport are?
for carrying a particular cargo for a specified A. travelers B. yachets C. ocean liners D.
voyage is (a)dock warrant (b) freight note launchers
(c)bill of lading (d) mate's receipt (WAEC
2018, Q32) 44. One of the major disadvantages of pipeline
transportation is it’s? A. high cost of
40. Ocean liners are vessels that (a)sail at
construction B. limitation in scope C.
scheduled times on fixed routes (b)sail any
time to any place where there is cargo (c)Carry vulnerability to climate changes D. high
only Cargo (d)carry only liquid (WAEC 2017, maintenance cost
Q36)
45. One major advantage of transportation to a
41. Which of the following statements is business is to? A. extend the firm's market
TRUE about sea transport? A. all ships have coverage B. ensure that goods are produced
specific routes to ply B. all ships must be
faster C. procure raw materials cheaply D.
insured at every journey C. all ships are
ensure the quality of products
THEORY

1. In what ways does transport aid trade? b. 6. Explain two advantages and disadvantages
Explain the following in connection with of transporting goods by rail (WAEC 2002,
water transport i. Freight ii. Charter party Q10b; 2019 Q7b)
(WAEC 1991, Q1a; 2005 Q2a)
7. Explain five roles of transport to
2. Explain five problems of using rail transport businessmen (WAEC 2003 Q6) b. State three
in Nigeria (WAEC 1993, Q6) b. Write short characteristics of tramp vessels and two
notes on i. Tramp liners ii. Ocean liners characteristics of ocean liners (WAEC 2017,
Q7a)
3. What is transportation by pipeline? b.
Explain any four advantages and four 8. Explain three advantages and disadvantages
disadvantages of transportation by pipeline of air transport (WAEC 2005, Q2b)
(WAEC 1994, Q5a)
9. Explain six facilities a good Seaport should
4. Describe five factors that determine the have (WAEC 2007 Q9a)
choice of means of transportation for goods
(WAEC 1995, Q5a; 2008 Q6c) 10. What is transportation? (WAEC 2008, Q6a)
b. Explain dead Freight
5. State five reasons why road transport would
be preferred to rail transport b. Give five 11. Explain five factors affecting the choice of
functions of Nigeria Airports Authority transport of frozen products (WAEC 2012,
(WAEC 1996, Q6) Q5a)
WAREHOUSING

1. The receipt issued by a warehouse keeper 8. Commerce increases the utility of goods by
for goods taken into the store is called? A. making them available when they are wanted.
drawback warrant B. warranty C. divided This function is performed by the use of? A.
warrant D. dock warrant E. custom warrant banks B. insurance C. transport D. advertising
(WAEC 1989, Q35) E. warehousing (WAEC 1992, Q45)

2. Warehousing is one of the functions of the? 9. Bonded warehouse are controlled by? A.
A. wholesaler B. retailer C. Chamber of wholesale merchants B. Co-operative
commerce D. Ministry of Trade and Industry wholesale society C. Shipping and forwarding
E. Export Promotion Department (WAEC agencies D. Customs and Excise Authorities E.
1989, Q70) Freight forwarders (WAEC 1992, Q50; 1999,
Q41)
3. Which of the following documents contains
the complete information on goods available 10. Which of the following department may a
in the wholesaler's warehouse? The A. wholesale warehouse organization not have?
catalogue B. order C. consignment note D. (a) Buying department (b)stores department
invoice E. delivery note (WAEC 1989, Q87) (c)Despatch department (d)production
department (e)sales department (WAEC 1992,
4. Which of the following is not one of the Q86)
functions of warehousing? A. Goods are
available where they are required B. Goods are 11. Which of the following is not a function of
stored until they are required C. Production warehousing? A. Provision of storage facilities
takes place ahead of demand D. changes are B. Availability of goods where needed C.
avoided in prices which may result from Availability of goods when needed D.
shortage and gluts E. Goods are available Reduction of price fluctuation E. Production in
when required (WAEC 1989, Q92) anticipation of demand (WAEC 1993, Q57)

5. Which of the following is the acceptable 12. Goods discharged from ships on which
classification of warehouse? A. Ordinary, import duties have not been paid are kept in
wholesale and state warehouse B. Ordinary, the A. ordinary warehouse B. public
presidential and bonded warehouse C. Bonded, warehouse C. private warehouse D. bonded
royal and queen warehouse D. Ordinary off- warehouse (WAEC 1993, Q58; JAMB 1994)
shore and bonded warehouse E. Private, public
and bonded warehouse (WAEC 1990, Q92) 13. The storing of goods under proper
conditions until they are required is a function
6. Which of the following is a receipt for of (a)stock taking (b)warehousing (c)stock
goods deposited in a public warehouse? control (d)merchandising (e)blending (WAEC
(A)Bond (b)Mate's receipt (c)warrant 1994, Q29)
(d)warranty (e)Bill of lading (WAEC 1992,
Q19) 14. Contraband goods seized by the Customs
and Excise Authority are kept in the A.
7. Warehouses are located in Lagos because of? ordinary warehouse B. bonded warehouse C.
A. availability of wholesale B. even public auctioneer's store D. state warehouse E.
development C. nearness to sea and airports D. private warehouse (WAEC 1998, Q40)
the need to check smuggling E. the need to
create additional cost of production (WAEC 15. The safe keeping of goods from the point
1992, Q22) of production to the time they are needed is A.
standardizing B. warehousing C. hoarding D.
stock controlling (WAEC 1999, Q8)
16. The production of good in anticipation of wholesalers' warehouse B. public warehouse C.
demand is possible because of the existence of? state warehouse D. manufacturers’' warehouse
A. packaging B. advertising C. warehousing D. (JAMB 2010)
branding (WAEC 2000, Q18; 2015, Q6; 2016
Q36) 24. Which of the following warehouse is
generally found near a port? A. bonded
17. Which of the following is a function of a warehouse B. distributor's warehouse C.
warehouse? A. Stabilizing prices B. Increasing manufacturer's warehouse D. producer's
competition C. Stimulating demand D. warehouse E. wholesaler's warehouse (NEC0
Controlling quality (WAEC 2000, Q41) 2000)

18. The place where dutiable goods are kept 25. Bonded warehouse is controlled and
until the duties on them are paid is A. customs supervised by A. customs B. immigration C.
warehouse B. public warehouse C. bonded navy D. police E. quarantine (NECO 2005)
warehouse D. the wharf (WAEC 2006 Q43;
2009, Q49) 26. Ordinary warehouse is usually owned and
used by A. government B. agents C. retailers
19. Which of the following is not a function of D. wholesalers (JAMB 2016)
warehousing A. Creating security of goods B.
Stabilization of price C. Production ahead of THEORY
demand D. Storage of goods (WAEC 2013, 1. What is a bonded warehouse b. State four
Q37) ways in which a bonded warehouse is useful in
20. Bonded warehouse is a place where international trade (WAEC 1989, Q4)
(a)duty free goods are kept (b)perishable 2. What is the importance of warehousing to
goods are kept (c)home made goods are kept commerce? (WAEC 1992, Q4a)
(d)dutiable goods are kept (WAEC 2012, Q22)
3. State four features of a warehouse (WAEC
21. A factor necessary for siting a warehouse 2017, Q5)
is nearness to A. raw materials B. labour C.
capital D. consumers (JAMB 2001) 4. State six reasons why warehousing is
important to a business (WAEC 2017, Q5b)
22. The major types of warehouse are? A.
manufacturer, bonded, departmental and
private B. bonded, public, cold room and
private C. manufacturer, bonded, public and
departmental D. wholesaler, manufacturer,
public and bonded (JAMB 2006)

23. The warehouse that is owned and

controlled by the government is a? A.

THE STOCK EXCHANGE

1. Which of the following is gilt-edge security? 2. The three main types of speculators found in
A. Government bonds and stocks B. Gold the Stock Exchange market are? A. stags,
mine stocks C. Company shares and stocks D. brokers, and bulls B. bulls, bears, and stag C.
Life assurance policy E. Bank stocks and bears, jobbers and jobbers D. bulls, brokers
securities (WAEC 1989, Q43)
and bears E. stags, agents and jobbers (WAEC 11. New shares are offered for sale to the
1989, Q50) public through A. acceptable houses B. the
stock exchange C. issuing houses D. discount
3. Which of the following functions is houses E. mortgage banks (WAEC 1993, Q74;
performed by the stock exchange markets? A. 1998, Q31; 1998 Q31)
Provision for bulk purchase B. Issuing of
treasury bills C. Provision of the purchase and 12. A stock exchange is a market for? A. old
sale of existing securities D. Discounting bills stocks of goods B. capital goods only C.
of exchange E. Providing for short-term raising new shares D. existing shares of quoted
investment (WAEC 1989, Q51) companies E. shares of unquoted companies
(WAEC 1994, Q15)
4. A Speculator in the Stock Exchange Market
who sells securities in expectation of a fall in 13. Which of the following belongs to the
their prices is called (a)broker (b)bull (c)bear capital market? A. Commercial bank B. Stock
(d)Investor (e)stag (WAEC 1990, Q65) exchange C. Ministry of Finance D. Chamber
of Commerce E. Discount House (WAEC
5. The major dealers on stock exchange 1994, Q52; 1995, Q29)
market are the? A. authorized clerks B. jobbers
C. investors D. brokers E. underwriters 14. Those who buy and sell shares on their
(WAEC 1990, Q96) own account in the stock exchange are
(a)underwriters (b)brokers (c)clerks (d)jobbers
6. A bear on the stock exchange sells shares in (e)investors (WAEC 1994, Q63)
anticipation of (a)a fall in price (b)a rise in
price (c)a change in price (d)the liquidation of 15. Debentures differ from Shares in that
the company concerned (e)new issues (WAEC (a)they form part of the capital of the business
1990, Q59; 1998 Q26) (b)rewards are usually paid out of profit
(c)ownership is open to the public (d) they are
7. When shares are sold Ex-div, if means that usually secured by a charge on the Company's
the (a)buyer is entitled to any dividend which assets (e)holders are investors in the business
may be declared (b)Shares are sold at Par (WAEC 1994, Q68; JAMB 2006)
(c)shares are sold at a premium (d) seller has
the right to the next dividend (e)shares are sold 16. Another name for shares, stocks and
at a loss (WAEC 1991, Q23; 2002 Q13; 2013 debentures traded in the stock exchange is? A.
Q9; 2015 Q35) collateral B. securities C. wares D.
participating preference shares E. cumulative
8. When more shares are applied for than are preference shares (WAEC 1995, Q28)
offered for sale the offer is said to be over? A.
issued B. floated C. subscribed D. valued E. 17. Which of the following is not true of the
traded (WAEC 1991, Q11) Stock exchange? (a)It is a commodity market
(b)It is a market for stock and shares (c)it
9. A Speculator in the stock exchange who draws up rules to guide Share dealing
buys shares hope that prices will rise is called (d)Government and companies raise funds
A. bear B. broker C. bull D. Jobber E. through it (e)prices for shares are determined
shareholder (NECO 2007, WAEC 1992, Q23) by it (WAEC 1995, Q26; 2010 Q17)
10. The document issued to a lender under a 18. Which of the following regulates and
company's seal acknowledging a debt is called? controls the activities of the Nigerian Stock
A. stock B. share C. dividend warrant D. Exchange? (a) The Nigerian Capital Market
debenture E. mortgage (WAEC 1992, Q29) Association (b)The Securities and Exchange
Commission (c)The Nigerian Deposit
Insurance Commission (d)The Nigerian 28. Who among the following does not
Reinsurance Corporation (e)The Central Bank function in the stock exchange market? (a)Bull
of Nigeria (WAEC 1996, Q30) (b)broker (c)jobber (d)Promoter (WAEC 2002,
Q34)
19. The shares of XYZ Plc are quoted at the
stock exchange by a jobber at 85k for k share. 29. Who among the following sells among
How much will Alabi, an investor who buys securities in anticipation of a fall in price? A.
500 shares pay? A. #675.00 B. #425.00 C. Bear B. Stag C. Jobber D. Bull (WAEC 2003,
#250.00 D. #175.00 E. #75.00 (WAEC 1996, Q36; 2008, Q48)
Q96)
30. Which of the following gives businessmen
20. The shares bought in (Q19) above were the opportunity to buy shares of public limited
sold (a)at Par value (b)at a discount (c)at a loss companies (a)insurance companies
(d)at a premium (e)ex div (WAEC 1996, Q97) (b)commercial banks (c)discount houses (d)the
stock exchange (WAEC 2004, Q28)
21. One of the characteristics of a debenture is
that (a)it yields a fixed rate of dividend (b)it 31. Which of the following is not a function of
has no redemption date (c)it yields a fixed rate a stockbroker (a)Provision of short-term
of Interest (d)its holder has a voting right capital (b)Giving investments advice
(e)the holder bears more risk than others (c)Regulation of stock exchange practices
(WAEC 1997, Q18) (d)Granting of loans to members (WAEC
2005, Q35)
22. The compensation given to brokers who
sell shares to jobbers is called A. premium B. 32. A speculator who applies for a new issue
commission C. salary D. interest E. dividend of shares without the intention of keeping
(WAEC 1997, Q32) them is? A. bull B. stag C. bear D. jobber
(WAEC 2006, Q28)
23. The Stock Exchange does not deal in (a)
Shares (b)treasury bills (c)debentures 33. A specialist on the stock exchange who
(d)stocks (e)bonds (WAEC 1997, Q33) buys and sells securities in his own name is a
A. Stag B. Bull C. Broker D. Jobber (WAEC
24. An organized market for securities is 2007, Q49)
called A. Money Market B. Future Market C.
Stock Exchange Market D. Spot Market E. 34. Stocks, shares and debentures traded in the
Hyper Market (WAEC 1997, Q57) stock exchange are called A. bears B. bulls C.
securities D. collaterals (WAEC 2009, Q24)
25. A speculator who applies for new stocks
and shares with the intention of selling them at 35. A firm on the stock exchange which agrees
higher price is a A. bull B. stag C. bear D. to buy shares not bought after a public offer is
jobber E. broker (WAEC 1998, Q86) A. a broker B. a stag C. a jobber D. an
underwriter (WAEC 2010, Q45)
26. A speculator on the stock exchange market
who sells securities for the fear of a fall in 36. When the buyer of an existing share is to
their prices is called? A. a bull B. a bear C. a receive the pending dividend, the price is A.
stag D. an underwriter (WAEC 2001, Q48) cum div B. ex-div C. at par D. at a discount
(WAEC 2010, Q19)
27. When shares are fully paid they can be
converted into? A. bonds B. debentures C. 37. A collective bundle of shares is called? A.
stocks D. treasury bills (WAEC 2002, Q28) debenture B. stock C. bond D. share (WAEC
2012, Q28)
38. Shares, bonds, stocks and debentures cash D. renders agency services to
traded on the stock exchange are collectively organizations and government (JAMB 2000)
called A. collaterals B. commodities C.
resources D. securities (WAEC 2014, Q2) 47. The Nigerian Stock Exchange publishes a
daily official list that gives full information on
39. An amount paid by a bull who wishes to the? A. method of transaction agreed to by
defer the purchase of shares to the next members B. number of participating members
accounting period is A. brokerage B. in a day C. changes in the prices and earnings
backwardation C. contango D. commission of securities D. changes in the official rules set
(WAEC 2014, Q33) by the market (JAMB 2001)

40. Buying and selling stocks in the stock 48. The main factors that determine the value
exchange in anticipation of changes in the of a stock on the stock Exchange are dividend
share price is? A. hedging B. projection C. and A. the psychology of the market B. capital
forecasting D. speculation (WAEC 2016, Q2) gain C. capital appreciation D. warrant
payment (JAMB 2001)
41. put option in the stock exchange is an
option A. to sell B. not to sell C. to buy D. not 49. The bulls and bears in the Stock Exchange
to buy (WAEC 2018, Q23) market help to minimize A. the number of
shares and bonds sold B. price increases of
42. A company is quoted on the stock securities C. fluctuations in the prices os
exchange when its shares are (a)put under securities D. the elasticity of the prices of
private placement (b)not for sale to the public securities (JAMB 2002)
(c)listed for sale on the exchange (d) owned by
the government (WAEC 2018, Q37) 50. The Stock Exchange is a market where? A.
long-term securities are sold B. all types of
43. The charge paid by a speculator for non- securities are sold C. short-term securities are
settlement of his account within the specified sold D. medium-term securities are sold
period is A. backwardation B. brokerage C.
commission D. contango (WAEC 2019, Q27) 51. A company that is registered with the
corporate Affairs Commission only without
44. The business in the stock exchange is being enlisted on the Stock Exchange is a? A.
characterized essentially by A. dealing B. public liability company B. joint venture
brokerage C. speculations D. transactions company C. limited company D. registered
(JAMB 1994) company (JAMB 2002)
45. The type of securities that the stock 52. The daily official publications of the
exchange deals with are A. warrants, currency Nigeria Stock Exchange give detailed
notes, money orders and postal orders B. information on the? A. changes in the official
cheques, bank drafts, warrants and promissory rules set by the market B. method of
notes C. bonds ivory, treasure bills, debentures transactions agreed upon by members C.
and warrants D. stocks, shares, bonds and participation of members in a day D. changes
warrants (JAMB 1998) in the price of securities (JAMB 2009)
46. The stock Exchange helps to provide 53. The difference between the higher prices
capital for of industrial project because it A. and the lower prices quoted for shares and
determines value of shares, stocks and other stocks at the stock exchange is known as A.
securities B. assist government in brokerage B. commission C. contango D.
implementing its monetary policies C. assist interest E. jobbers turn (NEC0 2000)
companies to exchange their securities into
54. Dealing on the Stock Exchange may be over until the next settlement? A. account B.
either A. 'for cash or 'for hire' B. 'for jobber' or contango C. making-up D. name E. ticket
'for broker' C. 'for cash' or 'for account D. 'for
cash' or' for credit' E. 'for bull' or 'for bear' 56. The right to buy or sell stock exchange
with a stipulated period is? A. option B.
55. In the stock exchange what is the day contango C. backwardation D. brokerage
when the parties to a transaction decide (WAEC 2020)
whether the bargain should be completed held
THEORY 4. Explain the following terms used in the
stock exchange market a. Backwardation b.
1. Distinguish between broker and jobbers Bear c. Jobber d. Jobber' s turn e. Brokerage
(WAEC 1989, Q6a) (WAEC 2009, Q7)
2. Describe any five advantages of stock 5. Write explanatory note on the following
exchange (WAEC 1989 Q10) stock exchange term a. Bull b. Bear c. Option
3. Describe the functions of the Stock d. Contango (WAEC 2013, Q4)
exchange (WAEC 1992, Q4a; 2008 Q8a) 6. What is stock exchange market? (WAEC
4. State the types of securities traded in the 2014, Q7a)
stock exchange market (WAEC 1993, Q4b)

SECURITIES MARKET

1. The second tier security market is A. an of its equity share available to the public for
appendage to the Nigeria stock exchange B. a subscription (JAMB 2010)
member of the Nigeria stock exchange C.
meant for the shares of quoted private 3. The second tier security market is an
companies D. a regulating arm of the Nigerian example of A. capital market B. commodity
stock exchange (JAMB 1994) market C. factor market D. labour market E.
money market (NECO 2003)
2. A prerequisite for admission into the
Second Tier Securities Market is for a THEORY
company to? A. make 20% of its equity share 1. Explain the Second Tier Security Market (b)
available to the public for subscription B. have Justify the existence of the Second Tier
a minimum of 100 shareholders C. have a Security market (WAEC 1992, Q6)
maximum of 100 shareholders D. make 10%
circulating capital B. nominal capital C. liquid
capital D. fixed capital E. working capital
CAPITAL (WAEC 1989, Q41)
1. The amount of new capitals with which a Use the following information to answer
new company proposes to be registered is questions 3-5
called? A. called-up capital B. nominal capital
C. fixed capital D. issued capital E. circulating A company had an authorized share capital of
capital (WAEC 1989, Q41) 30,000. It offered applicants N20,000 share
capital out of which the company collected
2. The part of business capital with which N15,000. (WAEC 1989 Q76-78)
capital that does not change its form in the
process of production is known as? A.
3. What was the paid-up capital? A. N35,000 business (d)fixed assets of a business (e)public
B. N30,000 C. N20,000 D. N15,000 E. N5,000 limited Company (WAEC 1994, Q2)

4. What was the issued capital? (a)N5,000 14. Called-up capital is the amount (a)paid on
(b)N10,000 (c)N15,000 (d)N20,000 allotment (b)paid on first call (c)paid on
(e)N35,000 application (d)demanded on Shares issued
(e)paid-up on all shares (WAEC 1995, Q7)
5. What was the unissued capital (a)N35,000
(b)N30,000 (c)N15,000 (d)N10,000 (e)N5,000 15. What is the working capital of KO Ltd
which has #3500 fixed assets, cash balance of
6. The authorised capital of a company is also #4,170, trade debtors #1,150 and sundry
referred to as it's? A. called-up capital B. creditors #1800? (a)#7,020 (b)#5,320
issued capital C. subscribed capital D. nominal (c)#4,720 (d)#3,620 (e)#3520 (WAEC 1995,
capital E. unissued capital (WAEC 1990, Q70) Q42)
7. Money spent for the day-to-day running of a 16. Capital owned is synonymous with the
business is called? A. fixed capital B. working (a)paid-up capital (b) working capital (c) net
capital C. equity capital D. capital employed E. worth (d)authorized Capital (e)liquid capital
authorized capital (WAEC 1990, Q77) (WAEC 1997, Q70)
8. The total assets acquired for permanent use 17. Assets of a business which cannot be
in a business concern is called? A. Current easily changed into Cash are known as
assets B. Fixed assets C. Called-up capital D. (a)floating capital (b)fixed capital (c)working
Working capital E. Authorized capital (WAEC capital (d)paid-up capital (e)current capital
1991, Q43) (WAEC 1997, Q78)
9. The nominal capital of a company is the 18. From the following figures in the
same as (a)authorized capital (b)issued capital accounting books of XY company, calculate
(c)capital owned (d)capital employed (e)called its working capital: stock #2,000; cash #1,500;
up capital (WAEC 1991, Q77) Creditors #1,000; Bank overdraft #1,400
10. The excess value of the assets of a business A. #5,900 B. #1,900 C. #1,100 D. #900 E.
over its liabilities is? A. capital owned B. #100 (WAEC 1997, Q84)
working capital C. issued capital D. liquid
capital E. reserved capital (WAEC 1993, Q43) 19. The total assets of Ogo Plc is $6,000 and
the liabilities included loan #2,000 creditors
11. The capital that is needed to meet the day- #1000 and electricity bill #2000. Calculate the
to-day running of a business is the? A. fixed capital owned by the company (a)#21,000
capital B. reserved capital C. circulating (b)#18,000 (c)#17,000 (d)#16,000 (e)#10,000
capital D. liquid capital E. capital employed
(WAEC 1993, Q48) 20. Ali Plc with issued capital of #500,000 in
#1.00 shares has for now requested
12. The working capital of a company is shareholders to pay only 50k for each #1.00
(a)current assets less current liabilities (b)fixed share. The amount requested from the
assets less current liabilities (c)fixed assets less shareholders by the company is called? A.
fixed liabilities (d)current assets less fixed issued capital B. Called-up capital C. paid-up
liabilities (e)current assets less owner's equity capital D. capital owned E. borrowed (WAEC
(WAEC 1993, Q54) 1997, Q85)
13. Capital owned is the same as (a)authorised 21. A trader started business with #30,000 and
capital (b)Issued Capital (c) net worth of a spent #20,000 in buying premises &
equipment, the balance of #10,000 is his Use the information below to answer
(a)authorised capital (b)fixed capital questions 30 and 31(WAEC 2005, Q11&12)
(c)working capital (d)capital owned (e) called
up capital (WAEC 1998, Q30) The nominal capital of a public limited
company is made up of 400,000 ordinary
22. Money spent on acquiring vehicles, shares of 50k each. The Board of Directors
furniture and fittings by a manufacturing decided to issue 50% of it for subscription by
company is termed A. Circulation capital B. the public.
working capital C. fictitious capital D. fixed
capital E. capital owned (WAEC 1998, Q32) 30. The authorized share capital is A.
#400,000 B. #200,000 C. #100,000 D. #50,000
23. Cash-in-hand and at bank as well as
debtors are examples of (a)current assets 31. The reserved capital is (a)#300,000
(b)fixed assets (c)capital owned (d)capital (b)#200,000 (c)#100,000 (d)#50,000
employed (e)working capital 32. The money used by Njie & Co. Ltd in
A public Limited Company whose nominal running the day-to-day activities of the
capital is made up of 400,000 ordinary shares business is represented by A. total assets less
of 50k each, decided to issue 50% of it to the total liabilities B. total assets less current
public and realized only 50% of the amount liabilities C. current assets less stock D.
due current assets less current liabilities (WAEC
2007, Q18)
Use the following information to answer
questions 24-26 (WAEC 1999, Q12-14) 33. A limited company has an authorized
capital of 20,000,000 shares. If each share
24. What is the company's registered capital? capital costs 5ok and the company sold
A. #50,000.00 B. #80,000.00 C. #200,000.00 12,000,000 shares, its issued capital is A.
D. #400,000.00 #16,000,000 B. #10,000,000 C. #6,000,000 D.
#4,000,000 (WAEC 2007, Q19)
25. What is the paid up capital (a)#50,000
(b)#100,000 (c)#150,000 (d)#200,000 34. That portion of the share capital which the
company has asked the shareholders to pay is
26. What is the called up capital (a)#50,000 known as (a)authorized capital (b)paid-up
(b)#100,000 (c)#200,000 (d)#400,000 capital (c)issued capital (d)called up capital.
27. They total amount of money actually (WAEC 2011, Q7; 2018, Q11)
received by a company out of the issued 35. The total assets of a business less its total
capital is? A.paid-up capital B. unissued liability is known as A. capital owned B. share
capital C. reserved capital D. called-up capital capital C. issued capital D. working capital
(WAEC 2003, Q12) (WAEC 2011, Q22)
28. Total assets minus current liabilities is 36. A Ltd. Company has an authorized capital
equal to a company's (a)gross profit (b)net of 2,000,000 shares of D5 each. If the
profit (c)capital owned (d)capital employed company issued 1,200,000 shares, its issued
(WAEC 2003, Q26) capital is A. D 10,0000,000 B. D6,000,000 C.
29. The working capital of a firm is calculated D4,000,000 D. D2,000,000 (WAEC 2013,
as (a) Current assets minus current liabilities Q33)
(b)current liabilities minus fixed assets 37. The money used by Ola Marts and Co. Ltd
(c)value of all assets (d)value of Issued Capital in running the day-to-day activities of the
(WAEC Q004, Q11; 2008 Q35) business is represented by (a)fixed capital
(b)Capital employed (c)paid-up Capital 39. The value of bamidele authorized share
(d)working Capital (WAEC 2013, Q34) capital is? A. N160,000,000 B. N100,000,000
C. N65,000,000 D. N40,000,000
38. Buildings and machinery purchased for use
in business are examples of A. current assets B. 40. The value of the issued capital of the
fixed assets C. capital employed D. paid up company is (a)N160,000,000 (b)N100,000,000
capital (WAEC 2014, Q24) (c)N6,000,000 (d)N15,000,000

Use the following information to answer the 41. The unissued capital amounts to
questions 39-41(WAEC 2015, Q11-13) (a)N160,000,000 (b)N60,000,000
(c)N40,000,000 (d)N15,000,000
Bamidele co. ltd has authorized capital of
40,000,000, ordinary shares of N4 each. shares
issues and fully paid are 25,000,000

THEORY
5. Ade Company Limited has an authorised
1. Explain the meaning of working capital and capital of 80,000 shares at ₦20 each out of
state its importance (WAEC 1989, Q3a) which 30,000 shares have been fully
subscribed by the public and allotted as at 31st
2. The following are the trading figures of March, 2006. 0ther assets and liabilities were
Zainab Trading Co Ltd for the year ended 31st (WAEC 2012, Q10)
December 1986(WAEC 1991, Q6) ₦ Creditors ₦35,000
Creditors 20,000 Motor van ₦90,000
Premises 20,000 Buildings ₦65,000
Machinery 20,000 Stock ₦60,000
Cash 20,000 Debtors ₦15,000
Debtors 30,000 Cash ₦5,000
Stock 50,000 You are required to calculate (a)issued capital
Cost of goods sold 100,000 (b)unissued capital (c)total assets (d)working
Sales 200,000 capital
Plant 30,000
Rent 10,000 6. Explain current assets giving two examples
From the above, calculate the (a)fixed assets each b. The statement of affairs of Zig Stores
(b)working capital (c)gross profit (d)net profit as 31st December, 2009 shows the following
3a. what is capital? b. Explain five types of Furniture & Fitting ₦30,000
capital (WAEC 1995, Q3) Motor van ₦164,000
Stocks ₦76,000
4. The statement of affairs of Danchukwu Debtors ₦50,000
Enterprises for the year ended 30th September, Creditors ₦60,000
1997 shows the following (WAEC 1998, Q9) Cash in hand ₦20,000
Capital ₦90,000 Bank overdraft ₦10,000
You are required to calculate Zig Stores
Creditors ₦22,000
(a)current liabilities (b)current assets
Vehicles ₦50,000 (c)working capital (WAEC 2014, Q8)
Furniture & fittings ₦20,000
Cash in hand ₦18,000 7. The following is the summary of the assets
Stock ₦24,000 and liabilities of Odika Enterprises for the year
(a)What is Danchukwu’s working capital, ended December 31st 2000:
using the information above (b)Mention four Premises ₦75,000
Motor vehicle ₦60,000
uses of working capital (c)Differentiate current
Fixtures & fittings ₦60,000
capital from mixed capital Machinery ₦65,000
Warehouse ₦18,000 b) The following records were extracted from
Stock ₦20,000 the books of Bandin and Bachur Partneship as
Prepayment ₦10,000 at March 31st 2020
Accrued expenses ₦12,000 D
Cash in hand ₦8,000 Equipment 150,000
Cash at bank ₦6,000 Cash at bank 25,000
Bank overdraft ₦3,500 Creditors 120,000
Creditors ₦5,000 Debtors 150,000
Debtors ₦6,000 Stock – 1/03/20 30,000
From the above figures, calculate the Motor van 300,000
following showing all workings (a)capital Furniture and fittings 40,000
owned (b)fixed assets (c)working capital Overdraft 45,000
(d)capital employed Stock – 30/03/20 25,000
Calculate (a) fixed assets (b) Current liabilities
8. Explain the following (WAEC 2021, Q8) (c) Current assets (d) Working capital
i) Authorised capital ii) liquid capital (e)Average stock

PROFIT/TURNOVER

Use the information given below to answer loss (c) gross profit or loss (d) approximation
questions 6 & 7 (e) balance sheet (WAEC 1972, Q35).

Opening Stock ₦ 1000 7. Net profit is the (a) excess of income over
Closing Stock ₦ 9000 expenses (b) total income from the sale of
Purchases ₦ 14,000 goods (c) difference between sales and
1. The average cost is (a) ₦2000 (b) ₦3000 (c)
Purchases (d) amount of purchase less closing
₦5000 (d) ₦6000 (e) ₦7000 (WAEC 1990,
Stock (e) excess of total sales over total
Q6).
purchases (WAEC 1993, Q64).
2. The cost of goods sold is (a) ₦6000 (b)
8. An increase in turnover is an increase in (a)
₦10,000 (c) ₦42,000 (d) ₦160,000 (e)
Liquid Capital (b) the volume of sales (c)
₦20,000 (WAEC 1990, Q7).
Current assets (d) Fixed Assets (e) Owners
3. Total sales less total returns inward is called equity (WAEC 1993, Q70).
(a) Purchases (b) net profit (c) gross profit (d)
9. A Retailer's Mark-up is (a) profit divided by
average stock (e) net sales (WAEC 1990, Q57).
the average stock (b) Sales divided by the
4. Turnover may be increased by (a) increases average stock (c) gross profit less indirect
prices and product differentiation (b) expenses (d) total cost less total sales (e) the
Advertising and cutting prices (c) refusing selling price less the cost price (WAEC 1993,
credit and customer services (d) increasing the Q71).
mark-up (e) Stock very expensive goods.
10. Rate of turnover is the (a) number of times
(WAEC 1991, Q8).
opening stock is sold during a period (b) rate
5. Which of the following is likely to have a paid by retailers for their stocks (c) rate paid to
low rate of turnover? (a) foodstuff (b) ball-pen agents for turning over their stock at a given
(c) soap and Detergent (d) furniture (e) period (d) number of times the stocks is turned
Newspaper (WAEC 1992, Q32). over (e) number of times average stock is sold
during a period (WAEC 1994, Q30).
6. The difference between cost and selling
price gives (a) trading account (b) net profit or 11. Turnover of a business is the same as the
(a) Profit of the business (b) liabilities of the
business (c) assets of the business (d) purchase Use the following equation to answer
of the business (e) sales of the business questions 7 and 8
(WAEC 1995, Q44).
19. Gross profit = (Closing Stock + P) less
12. Opening Stock plus purchases less closing (Opening Stock + G). What is P in the above
Stock gives (a) the rate of turnover (b) cost of equation? (a) Purchases returns (b) Net profit
goods (c) working capital (d) net profit (e) (c) Sales (d) Carriage Outwards (WAEC 2000,
goods profit (WAEC 1995, Q45). Q7).

13. Which of the following is likely to record a 20. What is G in the above equation? (a) Sales
high rate of turnover (a) furniture (b) Gold and returns (b) Carriage inwards (c) Purchases (d)
trinkets (c) motor vehicles (d) Newspapers (e) sales (WAEC 2000, Q8).
Carvings (WAEC 1995, Q71).
21. The turnover of firm may be affected by A.
14. The cost of goods sold divided by the the demand for its product B. the cost of its
average stock held during a trading period goods sold C. its closing stock D. its net assets
gives the (a) gross profit (b) net profit (c) net
sales (d) rate of stock turnover (e) sum of the 22. If a firm's turnover is N15,000 and the cost
opening and closing Stock (WAEC 1997, of goods sold is N 10,000 What is the
Q56). percentage of gross profit on sales? A. 23.3%
B. 33.3% C. 50.0% D. 66.6%
15. Rate of stock turnover is calculated to
determine (a) Total volume of sales (b) 23. Given:
Number of times goods are bought and sold (c)
Sales...........................N15 000
number of times goods are counted (d) total Opening stock...................N5 600
value of goods in the stores (e) the quality of Purchases.......................N9 700
goods sold (WAEC 1998, Q16). Closing stock...................N4 400
Gross profit....................N4 500
16. Gross profit is correctly ascertained by (a) Net profit......................N2 200
adding opening stock to purchase (b) adding From the data above, calculate the rate of
closing stocks to sales (c) subtracting returns turnover? A. 3:50 times B. 3:00 times C. 2:00
outward from purchases (d) subtracting returns times D. 2:18 times (JAMB 2005)
inward from sales (e) subtracting cost of goods
24. The turnover of a company will improve if
sold from sales (WAEC 1998, Q80).
the company increases? A. Advertising B.
Use this information to answer questions 17 prices of goods C. production D. warehousing
and 18 facilities

XYZ Ltd. total sales was #100,000. It had 25. Which of the following statements best
opening stock of #20,000 and closing Stock of describes net profit? The excess of A. total
#22,000. It bought goods worth #80,000 and revenue over total expenditure B. total capital
paid #2000 for rent. income over expenditure C. sales over
purchases D. total capital formation over
17. XYZ Gross profit is (a) #58,000 (b) capital consumption E. total expenditure over
#42,000 (c) #38,000 (d) #22,000 (e) #20,000 total revenue
(WAEC 1998, Q91).
26. The net profit is the excess of gross profit
18. XYZ Ltd. Net profit is (a) #58000 (b) # and sources of income over all the expenses.
38,000 (c) #24,000 (d) #22,000 (e) #20,000 This implies that net profit is A. the difference
(WAEC 1998, Q92). between gross profit and trade expenses B. the
different between gross profit and net sales C.
sales less cost of sales including sales returns #12,500. what is the turnover of the firm? A.
D. opening stock add purchases less closing #24,000 B. #46,500 C. #62,500 D. #65,000
stock (JAMB 2013)

27. Ojo bought a bicycle for #20,000, and Use the information below to answer
repaired it at a cost of # 5,000. He then sold questions 34 - 36 (WAEC 2006, Q11-13)
the bicycle for #30,000. What was his net
profit? A. #35,000 B. #25,000 C. #15,000 D. The following information relates to Mallam
Amidu Kachella for the year ended
#5,000
31/12/2005.
Opening stock #4,000
28. The size of profit of a business is measured
Purchases #16,000
by the A. closing stock B. opening stock C. Sales #30,000
total purchases D. rate of turnover (WAEC Debtors #6,500
2012) Creditors #4,200
Cash in hand #800
Use the following information to answer Closing stock #5,600
questions 29 and 30(WAEC 2015, Q17) Bank overdraft #3,000
34. The average stock is A. #1,600 B. #4,800
BYX Enterprises has the following balances at C. #5,600 D. #9,600
the end March, 2010
Opening stock D6,000 35. The current liability is (a) #1,200
Purchases D23,000 (b)#3,000 (c) #4,200 (d)#7,200
Salaries and wages D12,000
Closing Stock D8,000 36. The cost of goods sold is (a)#10,000
Sales D30,000 (b)#14,400 (c)#15,600 (d)#20,200
29. Calculate the gross profit by BYX
Enterprise A. D13,000 B. D9,000 C. D5,000 D. Use the information to answer questions 37-39
D1,000 (WAEC 2011 Q17-19)

30. What is the rate of turnover of BYX A trader's turnover was D36,000. Purchases
Enterprises (a)5.0 times (b)3.5 times (c)3.0 was D28,000. The opening stock was D2,000
times (d)1.5 times and the closing stock was D3,000.

31. The number of times the average stock of a 37. The average stock is A. D5,000 B. D3,000
business is sold within a given period is? A. C. D2,500 D. D2,000
turnover B. rate of turnover C. sales return D.
current ratio 38. What is the cost of goods sold (a)D28,000
(b)D27,000 (c)D8,000 (d)D5,000
32. The rate of turnover of a company in a
given year is 4 times while the average stock is 39. What is the rate of turnover? (a)13.5 times
N12,400. What is the turnover of the company? (b)10.8 times (c)9 times (d)5.4 times
A. N49,600 B. N24,800 C. N6,200 D. N3,100
40. The difference between cost of goods sold
(WAEC 2003, Q16)
and sales value is known as (a)net profit (b)net
33. The rate of turnover of a firm in a given loss (c)gross profit or loss (d)surplus (WAEC
year is 5 times while the average stock is 2007, Q17)
THEORY

1. Distinguish between the following a) Fixed capital and liquid capital b) Gross Profit and net profit

2. What is turnover? b. The following information relates to Mrs. Lulu a trader

 Goods Selling price Cost price Selling expenses
₦ ₦ ₦
Buckets 4,000 3,500 400

Boxes 5,000 4,000 250

Bournvita 6,000 5,500 300

Lace materials 12,000 10,500 1,000

b) Calculate i) the gross profit percentage of each item ii) the net profit percentage on each item

3. You are given the following figures from The following payments were made:
the books of Estate Enterprises for the month Rent and rates ₦3,500
of August, 1998. Salaries and wages ₦8,000
₦ Fuel ₦2,000
Debtors 30,000 Electricity ₦1,500
Creditors 20,000 A cash discount of 6% and 10% trade discount
Opening stock 15,000 was allowed if payment was made within
Closing stock 18,000 7days
Wages 3,000 i) Calculate how much cash was paid for the
Salaries 10,000 goods bought if payment was made within
Purchases 30,000 7days
Sales 60,000 ii) if all goods were sold at mark-up of 20%,
Calculate the (a) working capital (b)mark up (c) determine the selling price
margin (d)stock turnover (e) net profit iii) Calculate the value of the net profit made
percentage (show all workings) (WAEC 2019, Q8)

4. Explain the following a) turnover b) rate of 8. The following information relates to Raise
turnover c) net profit (WAEC 2002, Q8) Grocery Store as at 31st December, 2018.
Le
5. Outline any seven factors which may affect Stock – 1st January 2018 20,000
the rate of turnover (WAEC 1989, Q36) Purchases 150,000
Sales 230,000
6. Use the following information to answer the Carriage inwards 4,000
questions that follow Rent received 80,000
XYZ Limited is a trading company. The Salaries 29,000
following took place in the month of February Stock- 31st December 2018 35,000
Purchase of goods 32 suitcases at ₦3,500 You are required to calculate (a) cost of goods
each sold (b) gross profit (c)net profit (d)percentage
42 shirts at ₦800 each of gross profit (WAEC 2020, Q8)
Additional information:
i) The cost of transporting goods to the firm 9. Leonard is a retailer who deals in cement.
premises was ₦2,500 He started business on 1st January, 2011. The
ii) Two workers of the firm were paid wages following information was extracted from his
and salaries of ₦4,500 each books
iii) Total sales revenue was ₦180,000 Le
You are required to calculate the (a)gross Rent 25,000
profit (b) net profit (WAEC 2004, Q7) Sales ` 850,000
Return outwards 15,000
7. The following was extracted from the books Purchases 400,000
of Jinka Enterprises as at 31st August, 2005 Return inwards 25,000
15 carton of sweets at ₦2,000 per carton Insurance 45,000
25 cartons of milk at ₦4,000 each Furniture & fittings 15,000
15 cartons of sugar at ₦3,000 per carton Wages and salaries 112,000
17 cartons of soap at ₦5,000 per carton
Transport 6,000 (a) turnover (b) cost of goods sold (c) gross
From the above information, calculate the profit (d) net profit (e) rate of stock turn
(WAEC 2013, Q10)

COMMUNICATION

1. The means by which printed messages sent Telecommunications E. Coded Dialing Order
by cable are recorded is called? A. telegram B. (WAEC 1991, Q45; 1993 Q56)
poste restante C. telecommunication D.
telephone E. telex services (WAEC 1989, Q27) 8. In which of the following will the numbers
of words used determine the cost of the
2. In which of the following would you advise message sent? A. Telephone B. Telegram C.
Mr. X Y to check and con firm the exact E-mail D. Telex E. Bill of Lading (WAEC
telephone number of a bank located in Ibadan? 1992, Q18, JAMB 2009)
A. Post Office Guide B. Official Gazette C.
Travelers’ guide D. Private Branch Exchange 9. The abbreviation IDAPOLY on the letter -
E. Telephone directory (WAEC 1989, Q28) headed papers of the federal polytechnic Idah
is an example of a? A. cablegram B. postmark
3. Which of the following is a function of C. post code D. telegraphic address E. multiple
NIPOST? A. Issuing money order B. Issuing address telegram (WAEC 1992, Q41)
dividend warrants C. Issuing Travellers
cheques D. Minting coins E. Printing trade 10. Organization licensed and authorized to
journals (WAEC 1989, Q29) deliver fast malls, and parcels are engaged in?
A. courier services B. career services C. post-
4. Which of the following is charged by the free services D. haulage services E. transport
NIPOST on Postal order (a)Interest (b)tax services (WAEC 1992, Q48)
(c)Poundage (d) Premium (e)Dividend
(WAEC 1989, Q30; 2016 Q33) 11. Details or Services avaliable and
information regarding terms of carriage by
5. Which of the following is the safest means post are contained in a (a)business manual
of sending a postal order from Lagos to a (b)post office guide (c)trade journal
friend in Jos? A. Special delivery B. Recorded (d)telephone directory (e)Service manual
delivery C. Registered letters D. First class (WAEC 1992, Q80)
mail E. Express letter (WAEC 1990, Q28;
1993 Q61) 12. The handling of telephone and telex
services is done by? A. NITEL B. NIPOST C.
6. Which of the following is not provided by COURIER D. NEC E. NECA (WAEC 1993,
NIPOST? A. Private Mail Bag B. Recorded Q29)
Delivery C. Business Reply Service D.
Telegram E. Poste Restante (WAEC 1991, 13. A post office service which provides an
Q44; 1993 Q60) alternative to delivery of mails by a postman is
the? A. Post Office Box B. Postcode C.
7. A service provided by NITEL through Business Reply Service D. Post Office guide E.
which one can dial any number one wants Prepaid Post (WAEC 1993, Q30)
whether it is a local, trunk or overseas is called
the? A. Internal Communication System B. 14. A service whereby NIPOST undertakes to
Standard Dialing System C. Subscribers collect money due to the sender of a parcel is
Dialing System D. International called? (a)C.O.D (b) C.W.O (c)C.I.F (d)F.O.B
(e)F.O.R (WAEC 1993, Q31)
15. A crossed postal order is? A. generally impression on mails C. Can print company's
acceptable for payment B. easily converted to logo on mails D. Advance payment must be
cash C. the same as money order D. cashed made to NIPOST E. Postage stamp is used
through a bank E. cashed through a post office (WAEC 1996, Q58)
(WAEC 1993, Q45)
25. Which of the following services is not
16. A postal order either crossed or open is rendered by NIPOST (a)express delivery
only valid for a period of (a)12 months (b)10 (b)Recorded delivery (c) Parcel post
months (c)8 months (d)6 months (e)5 months (d)Telephone (e)cash delivery (WAEC 1996,
(WAEC 1994, Q31) Q76)

17. What is the fastest means of sending 26. The fastest means of sending a printed
documents from one place to another A. message from Lagos to London is through A.
courier services B. express letters C. parcels D. aeroplane B. telephone C. cablegram D. telex
quick delivery E. registered letters (NECO E. courier (WAEC 1997, Q2)
2002; WAEC 1999, Q31)
27. Which of the following makes if possible
18. The fastest means of sending written for people to collect their letters at their
information to a parent company abroad is the convenient time? (a)franking (b)Recorded
A. Telegram B. Telephone C. Telex D. Delivery (c)post Office Box (d)Business
Express letter E. Courier services (WAEC Reply service (e)Telex Service (WAEC 1997,
1994, Q100) Q41)

20. Which of the following is used to inform 28. Which of the following takes the shortest
the addressee that a registered parcel is ready time and is the most accurate means of
for collection? A. Express label B. Counterfoil communication? A. Telephone B. Express
C. Telegram D. Slip E. Telephone (WAEC letter C. Recorded delivery D. Airmail letter E.
1995, Q53; JAMB 2002) Telegraph (WAEC 1997, Q76)

21. Telephone, telegram and telex Services in 29. Which of the following facilities is very
Nigeria by (a)NIPOST (b)NRC (c)DHL useful to an organization that posts a large
(d)NAA (e)NITEL (WAEC 1995, Q54) number of mails regularly? A. Franking
machine B. Business reply service C. Mail
22. The cost of sending a message by transfer D. Post restante E. Private mail bag
telephone is of determined by the (a) number (WAEC 1998, Q38)
of words contained in the message (b)time of
the day the message was sent (c)type of person 30. At what stage is acceptance of offer by
or organisation sending the message (d)time post valid? When the letter is A. written B.
taken to send the message (e) urgency of the posted C. delivered D. replied E. read (WAEC
message delivered (WAEC 1995, Q55; 2013 1998, Q69)
Q21)
31. One advantage of communication by
23. Which of the following is used to transmit telephone is A. the conversation can be very
typed messages over long distances? short B. it is less expensive C. feedback is
(a)Dictaphone (b) Teleprinter (c)computer instantaneous D. the conversation is strictly
(d)Telephone (e)Radio (WAEC 1996, Q3) private (WAEC 1999, Q30)

24. Which of the following is not true of 32. Which of the following is a means of
franking machines? A. Hired by companies payment through the post office (a)standing
and licensed by NIPOST B. Print postage order (b)promissory note (c)money order
(d)telegraphic transfer (WAEC 2000, Q26; 41. Which of the following provides evidence
2019 Q10) of receipt of an important document sent
through the post? A. Recorded delivery service
33. A certificate of incorporation is best sent B. Air mail service C. Letter post D. Express
by? A. ordinary post B. recorded delivery C. delivery service (WAEC 2007, Q46)
express mail D. Parcel post (WAEC 2002,
Q37) 42. Which of the following is a safest way of
sending important documents through the post
34. Which of the following is a means of A. Registered mail B. Parcel post C. Letter
payment to person's abroad though the post post D. Express mail (WAEC 2010, Q16)
office? (a)Postal order (b)cheque (c)bank draft
(d)telegraphic money order (WAEC 2001, 43. The post office service that allows a
Q50) traveler without a fixed address to collect his
letter is known as A. post restante B. recorded
35. Which of the following is a disadvantage delivery C. speed post D. express service
of the use of Teleprinters in Communication (WAEC 2009, Q47)
(a)Transmission speed to slow (b)pictures
cannot be transmitted (c)Transmission quality 44. A postal service that allows a company's
is poor (d)it cannot transmit during bad customers to reply to its advertisements at the
weather (WAEC 2002, Q38) expense of the company is A. recorded
delivery service B. post restante C. express
36. Which of the following provides a proof of delivery service D. business reply service
posting and that the item has gotten to the (WAEC 2014, Q46)
addressee? (a)certificate of posting
(b)Recorded delivery (c)Registered letter 45. Which of the following is the quickest and
(d)express letter (WAEC 2003, Q37) accurate means of communication? A.
Telegram B. Express mail C. Courier services
37. Which of the following proves that D. Telex E. Railex (WAEC 1990, Q27; 1992
important documents have reached their Q36)
destination? A. business reply services B.
telegram services C. recorded delivery 46. Which of the following defines
services D. express delivery services (WAEC Communication? (a)Movement of goods (b)
2004, Q32) Transmission of information (c)movement of
people (d)storing of information
38. Postage marks can be printed on letters and (e)Distribution of newspaper (WAEC 1993,
parcels using A. Teleprinter machine B. Q55; 1998 Q39)
facsimile machine C. folding machine D.
franking machine (WAEC 2005, Q30) 47. One advantage of communication by
telephone is A. the conversation can be very
39. The practice whereby a firm prepays the short B. it is less expensive C. feedback is
postage for the response of its customers is instantaneous D. the conversation is strictly
known as A. express delivery B. post restante private (WAEC 1999, Q30)
C. recorded delivery service D. business reply
service (WAEC 2005, Q43) 48. which of the following is a verbal means
of communication A. telex B. express mail C.
40. Which of the following involves the business reply service D. telephone (WAEC
delivery of mails to a traveler without a fixed 2016, Q35)
address A. Speed post B. Reply paid C.
Recorded delivery D. Post restante (WAEC 49. Which of the following is the modern
2007, Q43) means of communication A. grape vine B.
Email C. whistles D. town crier (WAEC 2018, 51. Which of the following ancillary service
Q44) helps to maintain close contact between buyers
and sellers? A. Transport B. Insurance C.
50. A communication equipment which is Banking D. Communication E. Advertising
stationed in space for sending signals is A. (WAEC 1992, Q53)
data processor B. internet C. satellite D. telex
machine (WAEC 2019, Q30)

THEORY 6. Explain four ways by which a registered

mail differed from ordinary mail (WAEC 2002,
1. State the functions of a. NIPOST b. NITEL Q10c)
(WAEC 1990, Q3)
7. List and describe five ways by which the
2. Explain the following services provided by post office aids business
the NIPOST a. Business Reply service b.
Express delivery c. Post Restante d. Cash on 8. State three functions of each of the
delivery e. Recorded delivery (WAEC 1992, following communication agents (a)post office
Q2a) (b)telecommunications (6) (c)courier
companies (4) (WAEC 2006, Q4b; 2016 Q5))
3. Explain five ways by which NITEL has
contributed to the success of business in 9. List and explain six functions of the post
Nigeria (WAEC 1994, Q7) office (WAEC 2010, Q7b)

4. Explain five services which NIPOST 10. State five ways by which communication
renders to the public (WAEC 1995, Q8) b. is important to commerce (WAEC 1992, Q9b)
Give five advantages of using courier service
(WAEC 2011, Q5a) 11. Define communication? (WAEC 2010 Q7a,
2017, 2a) b. List six means of communication
5. Explain five services of each of the c. In what five ways is communication
following (WAEC 1997, Q3) a. Courier firms important to business (WAEC 2015, Q6b,
(WAEC 2019, Q7a) b. NITEL WAEC 2017, Q2b)