SS1 first term commerce past questions and answers

SS1 first term commerce past questions and answers

Here they are;

Question: What is the primary function of money in an economy?

a) Barter

b) Consumption

c) Production

d) Exchange

Answer: d) Exchange

Question: Which type of business organization is characterized by unlimited liability for its owners?

a) Partnership

b) Corporation

c) Sole proprietorship

d) Cooperative

Answer: c) Sole proprietorship

Question: What is the purpose of insurance in commerce?

a) Profit maximization

b) Risk management

c) Market expansion

d) Cost reduction

Answer: b) Risk management

Question: In accounting, what does ROI stand for?

a) Return on Investment

b) Revenue Over Income

c) Rate of Inflation

d) Risk of Insolvency

Answer: a) Return on Investment

Question: What is the term for the document that specifies the terms and conditions of a job, including responsibilities and compensation?

a) Resume

b) Invoice

c) Contract

d) Receipt

Answer: c) Contract

Question: Which market structure is characterized by a large number of sellers and buyers, with no single seller dominating the market?

a) Monopoly

b) Oligopoly

c) Monopsony

d) Perfect competition

Answer: d) Perfect competition

Question: What does GDP stand for in economics?

a) Gross Domestic Product

b) General Demand Pattern

c) Global Development Plan

d) Government Debt Percentage

Answer: a) Gross Domestic Product

Question: What is a trademark?

a) A company's slogan

b) A legal right to exclude others from using a distinctive mark

c) A patent for a new product

d) A business strategy

Answer: b) A legal right to exclude others from using a distinctive mark

Question: In the business cycle, what phase is characterized by high unemployment and low economic activity?

a) Expansion

b) Peak

c) Recession

d) Trough

Answer: c) Recession

Question: What is the purpose of advertising in commerce?

a) Reduce competition

b) Educate consumers

c) Increase taxes

d) Limit consumer choices

Answer: b) Educate consumers

Question: Which of the following is a function of a central bank?

a) Maximizing profits for commercial banks

b) Controlling inflation and monetary policy

c) Providing loans to small businesses

d) Promoting international trade

Answer: b) Controlling inflation and monetary policy

Question: What is the term for the document that confirms the receipt of goods by a carrier for shipment?

a) Invoice

b) Bill of Lading

c) Receipt

d) Purchase Order

Answer: b) Bill of Lading

Question: What is the legal document that grants the right to operate a business using a specific name or brand?

a) Copyright

b) Trademark

c) Patent

d) Franchise

Answer: d) Franchise

Question: In the context of international trade, what does FOB stand for?

a) Free on Board

b) Freight on Board

c) Front of Business

d) Firm Order Basis

Answer: a) Free on Board

Question: What is the term for the excess of total revenue over total cost in a business?

a) Profit

b) Loss

c) Break-even

d) Investment

Answer: a) Profit

Question: Which economic system relies on private ownership of the means of production and market forces to determine prices and production?

a) Socialism

b) Capitalism

c) Communism

d) Mixed economy

Answer: b) Capitalism

Question: What is the purpose of a balance sheet in accounting?

a) Record daily transactions

b) Summarize revenue and expenses

c) Assess financial position at a specific point in time

d) Calculate profit margins

Answer: c) Assess financial position at a specific point in time

Question: Which of the following is a direct tax?

a) Value Added Tax (VAT)

b) Corporate Income Tax

c) Excise Duty

d) Sales Tax

Answer: b) Corporate Income Tax

Question: What is the role of the Securities and Exchange Commission (SEC) in financial markets?

a) Regulate banks

b) Enforce environmental laws

c) Regulate securities and protect investors

d) Control international trade

Answer: c) Regulate securities and protect investors

Question: In the context of supply and demand, what happens to the price of a good when there is a shortage?

a) Rises

b) Falls

c) Remains constant

d) Fluctuates randomly

Answer: a) Rises