Commerce Past Questions | WAEC NECO, GCE, and JAMB

Commerce Past Questions | WAEC NECO, GCE, and JAMB

Master Commerce with this ultimate collection of Commerce Past Questions on WAEC, NECO, GCE, and JAMB. Practice 100 carefully selected objective questions and answers to boost your exam success and confidence

Commerce Past Questions

Here are list of compiled 100 OBJs on Commerce Past Questions with essays

The process of providing goods and services to satisfy human wants is called
A. Commerce
B. Production
C. Exchange
D. Distribution
Answer: B
The main function of a wholesaler is to
A. buy goods in small quantities
B. act as an agent of manufacturers
C. sell directly to consumers
D. link manufacturers with retailers
Answer: D

Which of the following is not a component of commerce?
A. Insurance
B. Advertising
C. Banking
D. Manufacturing
Answer: D
A trader who imports goods and resells them in his country is
A. an importer
B. an exporter
C. a middleman
D. a retailer
Answer: A
The type of trade that involves the exchange of goods between nations is
A. home trade
B. foreign trade
C. retail trade
D. wholesale trade
Answer: B

Warehousing is important in commerce because it
A. encourages production
B. encourages importation
C. facilitates continuous production and supply
D. increases the price of goods
Answer: C
Which of these is a means of deferred payment?
A. Cheque
B. Bank draft
C. Bill of exchange
D. Cash
Answer: C
Which of the following is the least liquid asset?
A. Cheque
B. Cash
C. Land
D. Savings
Answer: C

One major feature of a partnership is
A. limited liability
B. transfer of shares
C. profit sharing
D. perpetual succession
Answer: C
An advantage of sole proprietorship is
A. limited liability
B. continuity
C. quick decision-making
D. large capital base
Answer: C

Which of the following aids to trade helps in protecting businesses against risks?
A. Advertising
B. Banking
C. Transportation
D. Insurance
Answer: D

A bill of lading is issued by the
A. importer
B. customs officer
C. exporter
D. shipping company
Answer: D
Division of labour increases
A. cost of production
B. time spent in production
C. workers’ fatigue
D. efficiency
Answer: D
A business that is owned by shareholders is called a
A. partnership
B. joint venture
C. public limited company
D. cooperative society
Answer: C

One of the disadvantages of advertising is that it
A. educates consumers
B. increases the cost of goods
C. increases sales
D. creates awareness
Answer: B
Which of the following provides short-term credit to buyers?
A. Commercial bank
B. Manufacturer
C. Wholesaler
D. Retailer
Answer: D
The person who insures his property is called
A. insured
B. insurer
C. broker
D. underwriter
Answer: A

Branding helps to
A. increase sales tax
B. identify products
C. reduce cost
D. promote monopoly
Answer: B
Which of the following is not a function of a retailer?
A. Selling in small units
B. Providing credit facilities
C. Displaying goods
D. Manufacturing goods
Answer: D
Fixed assets are acquired for
A. resale
B. consumption
C. investment
D. long-term use
Answer: D

Commerce Past Questions | WAEC NECO, GCE, and JAMB (21 to 100)

Commerce Past Questions

The reward for capital is
A. salary
B. interest
C. profit
D. rent
Answer: B

Which of the following is a right of a consumer?
A. To receive free goods
B. To be informed
C. To determine market prices
D. To determine wages
Answer: B
A written promise to pay a stated sum at a specified date is a
A. bank draft
B. promissory note
C. cheque
D. money order
Answer: B
A public corporation is set up by
A. trade union
B. the president
C. an individual
D. an act of parliament
Answer: D

A bank overdraft is a
A. short-term loan
B. long-term loan
C. capital loan
D. fixed deposit
Answer: A
The central bank acts as a
A. lender to individuals
B. government’s banker
C. foreign exchange dealer
D. commercial bank
Answer: B
The total amount payable on an insurance policy is called
A. benefit
B. claim
C. premium
D. indemnity
Answer: D

Which of the following is used in the stock exchange market?
A. Money order
B. Treasury bill
C. Shares
D. Bonds
Answer: C
The process of attracting people to buy goods is called
A. banking
B. distribution
C. advertising
D. selling
Answer: C
Sole proprietorship thrives best in
A. rural areas
B. towns
C. large cities
D. capital cities
Answer: A

Capital as a factor of production is
A. Artificial wealth
B. land
C. skill
D. money in the bank
Answer: A
Trade that involves exchange of goods for goods is
A. foreign trade
B. retail trade
C. barter trade
D. wholesale trade
Answer: C
Debentures are associated with
A. cooperative societies
B. private individuals
C. public limited companies
D. partnership firms
Answer: C

Which of the following is a function of a commercial bank?
A. Minting of currency
B. Lending money
C. Controlling inflation
D. Issuing licences
Answer: B
The movement of goods from the producer to the final consumer is known as
A. production
B. advertising
C. distribution
D. marketing
Answer: C
The document issued by a seller showing full details of a transaction is a
A. delivery note
B. receipt
C. invoice
D. debit note
Answer: C

Which of the following is a principle of insurance?
A. Marginal utility
B. Large numbers
C. Insurable interest
D. Equilibrium
Answer: C
Advertising through the radio is classified as
A. visual
B. audio
C. print
D. outdoor
Answer: B
The money paid to an insurance company for coverage is called
A. capital
B. bonus
C. claim
D. premium
Answer: D

The combination of transport, communication, and warehousing is known as
A. production
B. manufacturing
C. commerce
D. aids to trade
Answer: D
A market structure where there are few sellers is
A. monopoly
B. oligopoly
C. perfect competition
D. duopoly
Answer: B
Which of the following is not a function of the stock exchange?
A. Mobilizing savings
B. Providing investment information
C. Granting loans to farmers
D. Assisting in the sale of securities
Answer: C

One of the following is not used in international trade
A. Bill of lading
B. Invoice
C. Quotation
D. Certificate of incorporation
Answer: D
A retail outlet that operates in motor vans is a
A. mobile shop
B. mail order
C. multiple shop
D. department store
Answer: A
The government agency that supervises the activities of companies is
A. Customs and Excise
B. Corporate Affairs Commission
C. Bureau of Statistics
D. Ministry of Finance
Answer: B

Hire purchase becomes effective after the
A. full payment
B. first installment
C. deposit
D. agreement is signed
Answer: A
Which of the following is an example of invisible trade?
A. Importing rice
B. Exporting oil
C. Providing tourism
D. Importing books
Answer: C
The merging of two companies into one is known as
A. monopoly
B. partnership
C. merger
D. cartel
Answer: C

An example of a trade association is
A. Nigeria Labour Congress
B. Academic Staff Union
C. Manufacturers’ Association
D. Chamber of Commerce
Answer: C
An order sent to a supplier requesting goods is
A. pro forma invoice
B. order letter
C. quotation
D. purchase order
Answer: D

Goods imported and later re-exported without alteration are
A. transit goods
B. re-exports
C. entrepot
D. bonded goods
Answer: C

Which document shows ownership of a shipped item?
A. Waybill
B. Invoice
C. Certificate of origin
D. Bill of lading
Answer: D
A bonded warehouse is mainly used to
A. store local goods
B. store foreign goods awaiting duty payment
C. evade tax
D. store perishable goods
Answer: B
Which of the following is a disadvantage of a sole proprietorship?
A. Quick decision-making
B. Personal contact with customers
C. Unlimited liability
D. Flexibility
Answer: C

The movement of goods from the manufacturer to the final consumer is known as
A. specialization
B. distribution channel
C. direct production
D. advertising
Answer: B
Trade occurring between two countries is known as
A. bilateral trade
B. import trade
C. export trade
D. multilateral trade
Answer: A
The act of holding back goods to increase prices is
A. hoarding
B. stocking
C. distribution
D. branding
Answer: A

Trade discount is given to
A. wholesalers and retailers
B. consumers
C. transporters
D. advertisers
Answer: A
The headquarters of ECOWAS is located in
A. Accra
B. Lagos
C. Dakar
D. Abuja
Answer: D
Which of the following is a natural resource?
A. Building
B. Road
C. Forest
D. Factory
Answer: C

Commerce Past Questions | WAEC NECO, GCE, and JAMB (61–100)

Commerce Past Questions objs

Who is responsible for the day-to-day running of a public limited company?
A. Board of directors
B. Managing director
C. Shareholders
D. Auditors
Answer: B

The distribution of goods using the internet is called
A. telecommunication
B. e-banking
C. e-commerce
D. e-marketing
Answer: C
The process of sorting similar items together is called
A. branding
B. standardization
C. specialization
D. grading
Answer: D
A cheque that is not honored is said to be
A. cancelled
B. bounced
C. post-dated
D. stale
Answer: B

Which of these is a long-term source of finance?
A. Trade credit
B. Overdraft
C. Loan from friends
D. Debenture
Answer: D
A cooperative society that sells goods to members is a
A. thrift society
B. consumer cooperative
C. credit union
D. producer cooperative
Answer: B
The main objective of a trade union is to
A. reduce company profits
B. produce goods
C. protect workers’ interest
D. sell goods
Answer: C

The relationship between a parent company and its branches is called
A. holding
B. partnership
C. affiliation
D. agency
Answer: D
Which of the following is a disadvantage of sea transport?
A. Suitable for bulky goods
B. Low cost
C. Slow in delivery
D. Efficient for long distances
Answer: C
A system where goods are sold from manufacturer directly to consumer is called
A. retailing
B. wholesaling
C. direct marketing
D. indirect marketing
Answer: C

The document sent to correct an overcharge is a
A. debit note
B. invoice
C. credit note
D. receipt
Answer: C
Which of the following is used to settle international debts?
A. Money order
B. Foreign exchange
C. Cheque
D. Promissory note
Answer: B
The right of ownership transferred from seller to buyer is known as
A. purchase
B. ownership
C. title
D. possession
Answer: C

The transfer of shares from one person to another is done using a
A. stock certificate
B. transfer form
C. prospectus
D. dividend warrant
Answer: B
A bank that deals in foreign currencies is called a
A. commercial bank
B. development bank
C. merchant bank
D. exchange bank
Answer: D
An example of an extractive occupation is
A. weaving
B. tailoring
C. fishing
D. printing
Answer: C

In marketing, the group of people targeted to buy a product is the
A. population
B. market segment
C. market share
D. trade union
Answer: B
The document sent when goods are returned is a
A. consignment note
B. delivery note
C. debit note
D. credit note
Answer: D
Which of the following is a type of capital?
A. Liquid capital
B. Invisible capital
C. Variable capital
D. Intangible capital
Answer: A

The minimum share capital a company can issue is called
A. stated capital
B. authorized capital
C. paid-up capital
D. issued capital
Answer: B
Which of the following organizations helps to promote African trade?
A. ECOWAS
B. OPEC
C. UNCTAD
D. WTO
Answer: A
Personal selling is best for
A. industrial goods
B. widely used goods
C. fast-moving goods
D. impulse goods
Answer: A

The first element in the marketing mix is
A. price
B. product
C. promotion
D. place
Answer: B
Which of the following is a type of retailer?
A. Jobber
B. Itinerant trader
C. Wholesaler
D. Producer
Answer: B
Who are the owners of a public limited company?
A. Customers
B. Directors
C. Creditors
D. Shareholders
Answer: D

Partnership is governed by the
A. Companies Act
B. Partnership Deed
C. Memorandum of Association
D. Certificate of Incorporation
Answer: B
A highly competitive market with many sellers is called
A. oligopoly
B. perfect competition
C. monopoly
D. duopoly
Answer: B
The difference between import and export is called
A. balance of payment
B. terms of trade
C. trade balance
D. balance of trade
Answer: D

One disadvantage of advertising is that it
A. persuades buyers
B. increases awareness
C. is costly
D. promotes new products
Answer: C
One feature of limited liability company is
A. unlimited liability
B. independent legal entity
C. easy formation
D. lack of continuity
Answer: B
The final consumer in a channel of distribution is the
A. agent
B. retailer
C. wholesaler
D. user
Answer: D

Which of the following is responsible for creating consumer awareness?
A. Branding
B. Advertising
C. Grading
D. Packaging
Answer: B
The main objective of a business is to
A. satisfy shareholders
B. make profit
C. expand
D. produce goods
Answer: B
Which of the following is not an auxiliary to trade?
A. Transportation
B. Advertising
C. Banking
D. Production
Answer: D

The money used to start a business is called
A. loan
B. capital
C. interest
D. grant
Answer: B
A document that invites the public to buy shares is a
A. memorandum
B. prospectus
C. certificate
D. return
Answer: B
An organization that provides loan for long-term development is
A. commercial bank
B. development bank
C. central bank
D. mortgage bank
Answer: B

The rate charged by the central bank when lending to commercial banks is
A. lending rate
B. discount rate
C. bank rate
D. interest rate
Answer: C
Which of the following is not a function of a wholesaler?
A. Breaking bulk
B. Displaying goods
C. Granting credit
D. Transporting goods
Answer: B
The act of selling goods to the highest bidder is
A. clearance sale
B. auction
C. retailing
D. trade fair
Answer: B

Commerce Theory Questions and Answers (1–20)

Define commerce.
Answer: Commerce is the branch of production concerned with the distribution and exchange of goods and services. It includes all the activities that facilitate trade such as transportation, warehousing, banking, insurance, and advertising.
List and explain four auxiliaries to trade.
Answer:

Transportation: Moves goods from producers to consumers.

Banking: Provides financial services and credit to businesses.
Insurance: Protects businesses against risks and losses.
Advertising: Promotes goods and services to increase sales.

State five differences between a wholesaler and a retailer.
Answer:
| Wholesaler | Retailer |
|————|———-|
| Buys in large quantities | Buys in small quantities |
| Sells to retailers | Sells to consumers |
| Requires large capital | Requires less capital |
| Provides storage facilities | Often operates in shops |
| May brand goods | Sells ready-made goods |
What is a cooperative society?
Answer: A cooperative society is a voluntary association of individuals with common economic goals who pool their resources to promote the welfare of members.
Highlight four features of a public limited company.
Answer:

Limited liability of shareholders
Separate legal entity
Ability to raise capital through shares

Continuity of existence

What is advertising? Mention two media used in advertising.
Answer: Advertising is the process of creating public awareness of a product or service to persuade people to buy.
Media used: Radio and Newspapers.
State four functions of a retailer.
Answer:

Buys goods in small quantities from wholesalers
Provides goods to final consumers
Offers after-sales services

Provides information to manufacturers on consumer preferences

What is meant by the term “hire purchase”?
Answer: Hire purchase is a system of buying goods and paying in installments while the buyer takes possession of the goods but does not own them until the final payment is made.
Explain the term “bill of lading”.
Answer: A bill of lading is a document issued by a shipping company acknowledging receipt of goods and containing terms of the contract for their transportation.

List any four documents used in home trade.
Answer:

Invoice
Debit note

Credit note
Receipt

Differentiate between visible and invisible trade.
Answer:

Visible trade: Involves physical goods that can be touched and seen (e.g., cars, rice).
Invisible trade: Involves services that cannot be touched or seen (e.g., insurance, tourism).

What is partnership? State two types of partners.
Answer: Partnership is a business owned and operated by 2 to 20 people who share profits and risks.
Types: Active partner and Sleeping partner.

Define entrepreneurship. List three characteristics of an entrepreneur.
Answer: Entrepreneurship is the ability to identify business opportunities, organize resources, and take risks to start and manage a business.
Characteristics: Innovative, risk-taking, goal-oriented.
What is insurance? Mention two types of insurance.
Answer: Insurance is a contract in which an individual or business receives financial protection against losses from an insurance company.
Types: Life insurance and Marine insurance.
State three advantages of self-service retailing.
Answer:

Reduces the need for many staff
Encourages impulse buying
Speeds up transactions

List four sources of capital to a sole proprietor.
Answer:

Personal savings
Loans from friends or family

Bank loans
Retained profits

Mention three rights of a consumer.
Answer:

Right to safety
Right to choose
Right to be informed

What is warehousing? List two types of warehouses.
Answer: Warehousing is the process of storing goods until they are needed.
Types: Private warehouse and Public warehouse.
Explain the term “foreign trade”. State its two types.
Answer: Foreign trade is the exchange of goods and services between different countries.
Types: Import and Export trade.

These 20 theory on Commerce past questions will help you prepare.

Conclusion on Commerce Past Questions

This set of 100 OBJs and theories on Commerce Past Questions | WAEC, NECO, GCE, and JAMB serves as a powerful study tool for students preparing for national exams. With clearly structured questions and verified answers, this resource provides a reliable guide for effective revision and exam confidence. Regular practice with these past questions helps you understand key topics, identify likely exam patterns, and improve performance. Whether you’re preparing for WAEC, NECO, GCE, or JAMB, consistent revision using this compilation will give you the competitive edge you need to succeed in Commerce.

Commerce Theory Questions and Answers (1–20)

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