Third Term Examination Commerce SS 1 – Exam Questions








Answer all questions.  

1. Which one of the following is sent by a customer who wishes to know the price, quality and terms of sale of a product?

(a) Quotation

(b) Letter of enquiry

(c) Proforma invoice

(d) Advice note


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

(a) bilateral

(b) counter

(c) multilateral

(d) entrepot


3. The trade document signed by a representative of a country to which goods are being sent is known as ___________.

(a) consular invoice

(b) certificate of origin

(c) consignment note

(d) proforma invoice


4. What is the life span of a cheque which is drawn but not presented immediately for payment?

(a) 30 days



(b) 2 months

(c) 6 months

(d) 12 months


5. Which of the following does not influence the choice of a means of transport?

(a) Distance

(b) Value of goods

(c) Urgency

(d) Brand of vehicle


6. A label on a product such as “three crowns milk” is a form of ___________.

(a) patent right

(b) branding

(c) copyright

(d) packaging


7. Which of the following is a customer service?

(a) delivery

(b) merchandizing

(c) branding

(d) market research


8. The scope of commerce is limited to ___________.

(a) home and foreign trade

(b) wholesale and retail trade

(c) trade and aids to trade

(d) wholesale and entrepot


9. Which of the following is not a commercial occupation?

(a) Transportation



(b) Warehousing

(c) Banking

(d) Fishing


10. Entrepot trade means ___________.

(a) exchange of goods between two countries

(b) exchange of goods among countries

(c) exporting of goods to be re-imported

(d) importing of goods to be re-exported


11. 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) Dispatch book


12. Which of the following contains the complete information on goods available for sale?

 (a) Invoice

(b) Delivery note

(c) Consignment note

(d) catalogue


13. One disadvantage of rail transport is ___________.

 (a) suitability for fragile goods

(b) absence of pilferage

(c) vulnerability to severe weather

(d) inflexibility


14. The type of water transport in which goods and people are moved through the rivers, canals, creeks and lakes is ___________.

 (a) sea transport



(b) inland water transport

(c) ocean liners

(d) cargo liners


15. ___________ is a document which shows the full list of the cargo carried by a ship or aircraft.

 (a) Bill of lading

(b) Airway bill

(c) Manifest

(d) Journal


16. ___________ is sent by the seller to the buyer to correct an over charge.

 (a) Credit note

(b) Debit note

(c) Invoice

(d) Journal


17. A ___________ decreases the amount someone pays when buying goods.

(a) debit note

(b) credit note

(c) discount

(d) invoice


18. E & OE means ___________.

(a) errors or omissions expected

(b) errors and omissions exempted

 (c) errors and omissions excepted

(d) errors or omissions expected


19. All these except one are types of warehouse.

 (a) Wholesale



(b) Retail

(c) Bonded

(d) Public


20. The middlemen are ___________ and ___________.



Answer four (4) questions only.


Describe five factors that determine the choice of means of transportation for goods.



A. What is discount? Give two examples.

B. What are the reasons for granting discount?



A. Distinguish between credit note and debit note.

B. State three uses of credit note and two uses of debit note.



A. List and explain three major constraints to commodity trading in Nigeria.



B. List and explain the methods of trading of commodity.



A. List four benefits of commodity exchange.

B. List and explain three requirements for trading.





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