Second Term Examination Business Studies Basic 8 (JSS 2)









Answer all questions. 


1. Who keeps the petty cash book?

(a) petty cashier

(b) petty recorder

(c) Accountant

(d) Typist


2. Banking, insurance, advertising, communication etc are known as ________________.

(a) production activities

(b) aids to trade

(c) sales activities

(d) commercial activities


3. The insurance policy on goods transported on water is known as ________________.

(a) third party (b) burglary (c) compensation (d) marine


4. The person who coordinates other factors of production is called ________________.

(a) manager

(b) supervisor

(c) entrepreneur

(d) accountant


5. A telephone operator in an office must be ________________.

(a) aggressive

(b) polite

(c) kind

(d) neat


6. The trader who buys in large quantities and sells in smaller quantities to the retailer is called ________________.

(a) retailer

(b) manufacturer

(c) wholesaler

(d) producer


7. The place where goods are stored until they are needed is called ________________.

(a) insurance

(b) bank



(c) warehouse

(d) container


8. A bank to all other banks in Nigeria is the ________________.

(a) first bank of Nigeria plc

(b) central bank of Nigeria

(c) New Nigerian bank

(d) federal saving bank


9. A petty cash officer got a cheque of N1000 and spent N715.He should make up his account with ________________.

(a) N285

(b) N315

(c) N400

(d) N715


10. A cheque with two parallel lines drawn across its face is called ________________.

(a) open cheque

(b) cancelled cheque

(c) crossed cheque

(d) certified cheque


11. Stock turn over means ________________.

(a) the value of closing stock

(b) the value of opening stock

(c) the value of sales

(d) the number of times goods are bought


12. When payment for goods is delayed until a future period, it is known as ________________.

(a) cash sales

(b) credit sales

(c) conditional sales

(d) capital sales


13. Which of the following is found in a business card?

(a) car number

(b) name of the holder

(c) name of children of the holder

(d) house address of the holder


14. The following banks are commercial banks except ________________.

(a) union bank

(b) wema bank

(c) zenith bank

(d) central bank


15. The end point in the channel of distribution of goods is ________________.

(a) consumer

(b) manufacturer



(c) middlemen

(d) retailer


16. A provision which a wise man makes against future occurrence of losses is ________________.

(a) insurance

(b) protection

(c) savings

(d) banking


17. ________________ is the middleman between the manufacturer and the retailer.

(a) Consumer

(b) Wholesaler

(c) Manufacturer

(d) Customer


18. Goods bought for resale are entered as ________________.

(a) ledger

(b) account

(c) purchases

(d) sales


19. A document written by the seller to the buyer to correct an over charge is called ________________.

(a) credit note

(b) debit note

(c) invoice

(d) order


20. The contract of insurance covers all the following except ________________.

(a) bad debt

(b) fire

(c) gambling

(d) human life


Section B

Answer any four (4) questions only.


1a. Production starts with consumers and ends with the consumers. Explain.

1b. In a tabular form, state two examples of small-scale retailers and large-scale retailers.



1c. Give one chemical vendor in Nigeria with the address.


2a. State five ethical issues in banking.

2b. List and explain the three main account operated by commercial banks.


3. Explain the following principles of insurance;

(i) indemnity

(ii) subrogation

(iii) contribution

(iv) utmost good faith

(v) proximate clause

3b. State five benefits of insurance.


4a. State two differences between needs and wants.

4b. State three effects of impulse buying.

4c. State three features of book-keeper.

4d. State two effects of lack of transparency, accountability and probity (TAP) .


5a. What are the three main groups of a cashbook?

5b. Prepare a single column cashbook of Mr. Michael for the month of May, 2008.

May 1, commence business with cash N950.

May 4, cash sales N620.

May 10, bought goods for cash N600.

May 15, bought office furniture for cash N210.

May 20, paid insurance premium in cash N150.

May 21, bought goods for cash N200.

May 22, received loan from Okunola N500.

May 25, cash sales N750.

May 26, Ladi paid cash N400.

May 27, cash purchases N450.

May 28, paid travelling expenses in cash N250.

May 29, bought stationeries for cash N100.



May 29, bought office equipment for cash N500.

May 30, repaid part of Okunola’s loan N300.

May 30, cash sales to date N800.


Best of Luck