Second Term Examination Commerce SS 1

Last Updated on July 16, 2020 by Alabi M. S.









Answer all questions, pick the correct option.


1. A retail outlet meant to sell only a particular manufacturer’s product is known as _________________.

(a) a co-operative shop

(b) chain store

(c) department store

(d) tied shop


2. In international trade, the direct exchange of goods is _________________.

(a) bilateral trade

(b) counter trade

(c) multilateral trade

(d) entrepot trade


3. A chain store is also known as a _________________.

(a) department store

(b) multiple shop

(c) supermarket

(d) hyper market


4. Department stores usually _________________.

(a) offer a wide variety of goods

(b) specializes in selling only household goods

(c) offer a few line of goods

(d) sell on cash on delivery basis


5. Which of the following is a disadvantage of large scale retailing?

(a) Decline in personal service

(b) Pilfering

(c) High overload cost

(d) One – stop shopping



6. An unfavourable balance of trade for a country means that her _________________.

(a) Export exceeds imports

(b) Visible imports exceed visible eexports

(c) Invisible exports exceed visible imports

(d) Imports and exports are equal


7. Which of the following is a customer service?

(a) delivery

(b) merchandising

(c) branding

(d) market research


8. Which of the following is the best channel for the sale of an aircraft?

(a) Producer — Wholesaler — Consumer.

(b) Producer — Retailer — Consumer.

() Producer — Consumer.

(d) Producer — Wholesaler — Retailer — Consumer.


9. The refund made on goods re-exported after being imported is known as _________________.

(a) import duty

(b) export duty

(c) custom duty

(d) excise duty


10. Which of the following is used to inform the buyer that goods ordered is on the way?

(a) Quotation

(b) Proforma invoice

(c) Advice note

(d) Despatch book



11. _________________ is the principle underlying international trade.

(a) Division of work

(b) Love

(c) Specialization

(d) Partnership


12. Infant industries are _________________.

(a) baby industries

(b) Beautiful industries

(c) good industries

(d) Newly established industries


13. The tax paid on value and quantity of goods is _________________.

(a) goods tax

(b) ad valorem tax

(c) excise duty

(d) custom duty


14. ……………………………………………. is the type of retail operation in which a right is given to the retailer to market a company’s products or services.

(a) Discount houses

(b) Mail order

(c) Franchising

(d) Cooperative society


15. _________________ are owned and controlled by the manufacturers themselves.

(a) Mobile shops

(b) tied shops

(c) producer shops

(d) Retail shops



16. Large super markets are _________________.

(a) big markets

(b) multi storey market

(c) hyper market

(d) variety stores


17. Buying and selling by post is _________________ retailing.

(a) postal

(b) agent

(c) post office

(d) mail order


18. _________________ is a document which contains detailed particulars of all imported goods.

(a) dock warrant

(b) sight note

(c) bill of entry

(d) bill of sight


19. _________________ is a receipt for goods delivered and stored in the warehouse.

(a) Warrant dock

(b) Bill of sight

(c) dock warrant

(d) Bill of entry


20. _________________ combines selling, delivery and collection in one operation.

(a) Agent middlemen

(b) Wholesaler

(c) Merchant wholesaler

(d) Truck wholesaler




Section B

Answer four (4) questions


1a. Outline five services rendered by the wholesaler to the manufacturer.

1b. Outline five services rendered by the retailer.


2. Write short notes on each of the following;

(i) Small stores

(ii) hawking

(iii) mobile shops

(iv) supermarkets

(v) chain stores


3a. Give the meaning of each of the following;

(i) balance of trade

(b) balance of payment

(iii) terms of trade

3b. Describe four ways by which an adverse balance of payment can be corrected.


4a. Give three functions of each of the following:

(i) Ports authority

(ii) Customs and excise authority


4b. Define the following

(i) Airway bills

(ii) consular invoice

(iii) certificate of origin

(iv) mate receipt


5a. Give the meaning of the following with examples.

(i) Visible imports

(ii) Invisible imports

(iii) Visible exports

(iv) Invisible exports


5b. List four barriers to international trade.

5c. Briefly explain two points from (5b) above.


Best of Luck



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