This advanced Commerce quiz is designed to test your understanding of key business concepts, trade practices, financial institutions, and marketing principles. It helps students assess their level of preparation, identify weak areas, and improve their problem-solving and reasoning skills through regular practice. At the end of these quizzes, score yourself over 60.
ADVANCED COMMERCE QUIZ
1. Which document shows the details of goods returned by a buyer to a seller?
A. Invoice
B. Debit note
C. Credit note
D. Receipt
2. The process of determining the value of goods in money terms is called
A. Branding
B. Pricing
C. Packaging
D. Advertising
3. Which type of warehouse is owned by individuals or firms?
A. Bonded warehouse
B. Public warehouse
C. Private warehouse
D. Government warehouse
4. The system where workers share in business profit is known as
A. Commission system
B. Wage system
C. Profit sharing
D. Bonus system
5. A business environment made up of customers and competitors is called
A. Internal environment
B. Legal environment
C. Economic environment
D. External environment
Advanced Commerce Quiz
6. Which of the following promotes sales directly to customers?
A. Personal selling
B. Public relations
C. Packaging
D. Branding
7. The document prepared by a seller after receiving an order is called
A. Quotation
B. Order note
C. Proforma invoice
D. Waybill
8. A market where only buyers control price is called
A. Monopoly
B. Oligopoly
C. Monopsony
D. Duopoly
9. Which organization protects consumers’ rights in Nigeria?
A. CBN
B. SON
C. NAFDAC
D. NDIC
10. The reward for using land in production is
A. Wage
B. Interest
C. Rent
D. Profit
Advanced Commerce Quiz
11. Which type of capital is used for daily business operations?
A. Fixed capital
B. Working capital
C. Floating capital
D. Reserve capital
12. A business that operates in many countries is called
A. National company
B. Local company
C. Multinational company
D. Cooperative company
13. The reduction in value of fixed assets over time is known as
A. Appreciation
B. Valuation
C. Depreciation
D. Allocation
14. Which payment is made to insurance companies regularly?
A. Bonus
B. Claim
C. Premium
D. Dividend
15. The removal of middlemen in distribution is called
A. Channelization
B. Elimination
C. Disintermediation
D. Direct selling
Advanced Commerce Quiz
16. Which type of advertisement targets specific customers?
A. Mass advertising
B. Selective advertising
C. National advertising
D. General advertising
17. The process of combining two or more companies is called
A. Expansion
B. Merger
C. Acquisition
D. Diversification
18. A person who acts on behalf of another in business is called
A. Broker
B. Agent
C. Retailer
D. Wholesaler
19. Which of the following is a motive for saving?
A. Spending
B. Investment
C. Consumption
D. Distribution
20. The practice of selling fake goods as original is known as
A. Dumping
B. Counterfeiting
C. Bargaining
D. Hoarding
21. A document that shows the quantity of goods packed is called
A. Packing list
B. Invoice
C. Waybill
D. Receipt
22. Which market deals in foreign currencies?
A. Capital market
B. Money market
C. Commodity market
D. Foreign exchange market
23. The practice of keeping goods to create artificial scarcity is called
A. Stocking
B. Hoarding
C. Warehousing
D. Storage
24. Which policy controls the amount of money in circulation?
A. Trade policy
B. Monetary policy
C. Fiscal policy
D. Industrial policy
25. The main objective of consumer protection is to
A. Increase prices
B. Protect sellers
C. Safeguard buyers
D. Reduce competition
26. Which bank account is mainly used by business people for daily transactions?
A. Savings account
B. Current account
C. Fixed deposit account
D. Student account
27. The buying and selling of shares takes place in the
A. Commodity market
B. Stock exchange
C. Money market
D. Capital market
28. A business owned and controlled by one person is called
A. Partnership
B. Cooperative society
C. Sole proprietorship
D. Limited liability company
29. Which document is used to clear goods at the port?
A. Bill of lading
B. Invoice
C. Receipt
D. Debit note
30. The ability of a business to meet its short-term obligations is called
A. Profitability
B. Liquidity
C. Stability
D. Solvency
Advanced Commerce Quiz
31. Which type of transport is most suitable for heavy goods over long distances?
A. Road transport
B. Rail transport
C. Air transport
D. Pipeline transport
32. The capital contributed by the owner of a business is called
A. Loan capital
B. Share capital
C. Owner’s capital
D. Reserve capital
33. An organization formed to promote members’ welfare is known as
A. Public company
B. Cooperative society
C. Private company
D. Holding company
34. The person who bears the risks of business is the
A. Manager
B. Employee
C. Entrepreneur
D. Clerk
35. Which document shows ownership of goods in transit?
A. Waybill
B. Bill of lading
C. Receipt
D. Invoice
36. The online buying and selling of goods is called
A. Telemarketing
B. E-commerce
C. Home trade
D. Mobile trade
37. The record of daily business transactions is kept in the
A. Ledger
B. Journal
C. Cash book
D. Balance sheet
38. Which institution grants long-term loans to industries?
A. Commercial bank
B. Merchant bank
C. Development bank
D. Microfinance bank
39. A company owned by another company is called
A. Sister company
B. Subsidiary company
C. Holding company
D. Private company
40. The transfer of goods from producer to consumer is known as
A. Production
B. Distribution
C. Consumption
D. Exchange
Advanced Commerce Quiz
41. Which document is issued when goods are delivered?
A. Delivery note
B. Quotation
C. Credit note
D. Debit note
42. The act of spreading business risks among many people is known as
A. Saving
B. Insurance
C. Investment
D. Banking
43. Which market deals in long-term funds?
A. Money market
B. Capital market
C. Local market
D. Retail market
44. The excess of income over expenditure is called
A. Loss
B. Profit
C. Capital
D. Revenue
45. A partnership formed for a specific project is called
A. General partnership
B. Limited partnership
C. Joint venture
D. Cooperative
46. The movement of goods from one country to another is known as
A. Home trade
B. Retail trade
C. Foreign trade
D. Wholesale trade
47. Which document shows goods received from a supplier?
A. Goods received note
B. Invoice
C. Waybill
D. Receipt
48. The practice of setting low prices to drive out competitors is called
A. Price fixing
B. Dumping
C. Bargaining
D. Discounting
49. The book that records cash received and paid out is the
A. Journal
B. Ledger
C. Cash book
D. Trial balance
50. A person who buys goods in large quantities and sells in small units is a
A. Manufacturer
B. Wholesaler
C. Retailer
D. Agent
Advanced Commerce Quiz
51. Which document shows the financial position of a business?
A. Trading account
B. Profit and loss account
C. Balance sheet
D. Cash book
52. The process of planning, organizing, and controlling business activities is called
A. Marketing
B. Management
C. Accounting
D. Production
53. A government-owned business organization is called
A. Public enterprise
B. Cooperative society
C. Private company
D. Partnership
54. Which means of communication is fastest in business?
A. Letter
B. Telephone
C. Telegram
D. Email
55. The right to vote at company meetings belongs to
A. Directors
B. Managers
C. Shareholders
D. Auditors
56. Which insurance policy covers employees at work?
A. Fire insurance
B. Life insurance
C. Employers’ liability insurance
D. Marine insurance
57. The money set aside out of profit for future use is called
A. Capital
B. Reserve
C. Dividend
D. Bonus
58. Which document is prepared before goods are supplied?
A. Proforma invoice
B. Receipt
C. Credit note
D. Waybill
59. A market situation where many sellers sell similar goods is called
A. Monopoly
B. Perfect competition
C. Duopoly
D. Monopsony
60. The main aim of entrepreneurship is to
A. Reduce risks
B. Make profit
C. Increase expenses
D. Avoid competition
Commerce Quiz ANSWERS AND EXPLANATIONS
- C — A credit note is issued when goods are returned to the seller.
- B — Pricing is the process of fixing the value of goods in money terms.
- C — Private warehouses are owned by individuals or companies.
- C — Profit sharing allows workers to benefit from business profits.
- D — Customers and competitors form part of the external environment.
- A — Personal selling involves direct interaction with customers.
- C — A proforma invoice is sent after receiving an order.
- C — Monopsony is a market with many sellers but one buyer.
- B — SON protects consumers by ensuring product standards.
- C — Rent is paid for the use of land.
- B — Working capital is used for daily business activities.
- C — Multinational companies operate in many countries.
- C — Depreciation is the fall in value of fixed assets over time.
- C — Premium is the regular payment made to insurance companies.
- C — Disintermediation removes middlemen from distribution channels.
- B — Selective advertising targets specific groups of customers.
- B — Merger means combining two or more companies.
- B — An agent represents another person in business transactions.
- B — People save mainly for future investment purposes.
- B — Counterfeiting is the act of selling fake goods as original.
- A — A packing list shows the quantity and contents of packages.
- D — The foreign exchange market deals in foreign currencies.
- B — Hoarding is keeping goods to create scarcity.
- B — Monetary policy regulates money supply in an economy.
- C — Consumer protection aims at safeguarding buyers from exploitation.
26. B. Current account – Current accounts are designed for business transactions, allowing frequent deposits and withdrawals without interest.
27. B. Stock exchange – Shares of companies are bought and sold on the stock exchange, which facilitates trading of securities.
28. C. Sole proprietorship – A sole proprietorship is owned and managed by one person who bears all profits and risks.
29. A. Bill of lading – A bill of lading is a legal document issued by a carrier to acknowledge receipt of goods for shipment.
30. B. Liquidity – Liquidity measures a business’s ability to meet short-term obligations using current assets.
31. B. Rail transport – Rail transport is suitable for moving heavy goods over long distances efficiently and at lower cost.
32. C. Owner’s capital – Owner’s capital is the money contributed by the business owner for starting and running the business.
33. B. Cooperative society – Cooperative societies are formed to promote the economic welfare of members through joint ownership and benefits.
34. C. Entrepreneur – An entrepreneur organizes resources, takes risks, and manages the business to earn profit.
35. B. Bill of lading – The bill of lading serves as proof of ownership of goods while they are in transit.
36. B. E-commerce – E-commerce involves buying and selling goods and services online over the internet.
37. B. Journal – Daily business transactions are first recorded in the journal before being posted to the ledger.
38. C. Development bank – Development banks provide long-term loans to industries and businesses for expansion.
39. B. Subsidiary company – A subsidiary is a company controlled by another company, usually called the holding company.
40. B. Distribution – Distribution is the process of transferring goods from producers to consumers.
41. A. Delivery note – A delivery note is issued to confirm that goods have been delivered to the buyer.
42. B. Insurance – Insurance spreads financial risks by transferring potential losses from individuals or businesses to insurance companies.
43. B. Capital market – The capital market deals in long-term funds like shares and bonds, unlike the money market which is short-term.
44. B. Profit – Profit is the financial gain obtained when income exceeds expenditure in a business.
45. C. Joint venture – A joint venture is a partnership formed by two or more parties to undertake a specific project for a limited time.
46. C. Foreign trade – Foreign trade involves buying and selling goods between different countries.
47. A. Goods received note – A goods received note confirms that the quantity and condition of received goods match the order.
48. B. Dumping – Dumping is the practice of selling goods at very low prices, often below cost, to eliminate competition.
49. C. Cash book – The cash book records all cash receipts and payments, acting as both journal and ledger for cash transactions.
50. B. Wholesaler – A wholesaler buys goods in bulk from manufacturers and sells them in smaller quantities to retailers.
51. C. Balance sheet – A balance sheet shows the financial position of a business at a specific date, listing assets, liabilities, and owner’s equity.
52. B. Management – Management is the process of planning, organizing, directing, and controlling business activities to achieve objectives efficiently.
53. A. Public enterprise – A public enterprise is a business owned and controlled by the government to provide goods or services to the public.
54. D. Email – Email is the fastest means of communication in business as it delivers messages instantly across distances.
55. C. Shareholders – Shareholders are owners of a company and have the right to vote on important company decisions at meetings.
56. C. Employers’ liability insurance – This insurance protects employees against work-related injuries and covers the employer’s liability.
57. B. Reserve – A reserve is money set aside from profits for future contingencies or expansion.
58. A. Proforma invoice – A proforma invoice is prepared before supplying goods to provide the buyer with a price estimate.
59. B. Perfect competition – Perfect competition is a market structure where many sellers sell similar goods, with no single seller influencing the price.
60. B. Make profit – The main aim of entrepreneurship is to organize resources and take risks in order to earn profit.
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