SS2 first term commerce past questions and answers

SS2 first term commerce past questions and answers

Here are 20 SS2 Commerce questions with options and answers:

Question: What is the primary function of money?

A) Barter

B) Store of value

C) Subsistence

D) Natural resource

Answer: B) Store of value

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

A) Corporation

B) Partnership

C) Sole proprietorship

D) Cooperative

Answer: C) Sole proprietorship

Question: What does GDP stand for?

A) Gross Domestic Product

B) General Development Plan

C) Global Demand Protocol

D) Government Distribution Process

Answer: A) Gross Domestic Product

Question: In accounting, what does ROI stand for?

A) Return on Investment

B) Revenue on Income

C) Risk of Inflation

D) Rate of Interest

Answer: A) Return on Investment

Question: Which market structure is characterized by a large number of buyers and sellers, homogeneous products, and free entry and exit?

A) Monopoly

B) Oligopoly

C) Perfect competition

D) Monopolistic competition

Answer: C) Perfect competition

Question: What is the role of the Central Bank in a country's economy?

A) Fiscal policy

B) Monetary policy

C) Industrial regulation

D) Foreign trade regulation

Answer: B) Monetary policy

Question: Which of the following is a regressive tax?

A) Income tax

B) Value-added tax (VAT)

C) Property tax

D) Excise duty

Answer: B) Value-added tax (VAT)

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

A) Record daily transactions

B) Measure profitability

C) Show the financial position at a specific point in time

D) Calculate taxes

Answer: C) Show the financial position at a specific point in time

Question: Which document serves as evidence of ownership in a public limited company?

A) Memorandum of Association

B) Annual report

C) Share certificate

D) Prospectus

Answer: C) Share certificate

Question: What is inflation?

A) Increase in the money supply

B) Decrease in the general price level

C) Persistent rise in the general price level

D) Stability in the economy

Answer: C) Persistent rise in the general price level

Question: Which function of management involves setting goals and deciding on the best course of action to achieve them?

A) Planning

B) Organizing

C) Leading

D) Controlling

Answer: A) Planning

Question: What is a tariff in international trade?

A) Subsidy on exports

B) Tax on imports and exports

C) Quota on imports

D) Trade agreement

Answer: B) Tax on imports and exports

Question: In marketing, what does SWOT analysis stand for?

A) Strengths, Weaknesses, Opportunities, Threats

B) Sales, Workforce, Operations, Technology

C) Strategies, Wins, Objectives, Trends

D) Suppliers, Warehousing, Operations, Transportation

Answer: A) Strengths, Weaknesses, Opportunities, Threats

Question: What is a franchise business?

A) A government-owned enterprise

B) A type of partnership

C) A business model where individuals buy the rights to operate a business under an established brand

D) A non-profit organization

Answer: C) A business model where individuals buy the rights to operate a business under an established brand

Question: Which financial statement represents a company's revenues and expenses over a specific period?

A) Balance sheet

B) Income statement

C) Cash flow statement

D) Retained earnings statement

Answer: B) Income statement

Question: What is the purpose of market segmentation in marketing?

A) To increase prices

B) To target specific groups of customers with tailored marketing strategies

C) To reduce competition

D) To standardize products

Answer: B) To target specific groups of customers with tailored marketing strategies

Question: What is the significance of human resource management in an organization?

A) Financial management

B) Employee training and development

C) Production planning

D) Market research

Answer: B) Employee training and development

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

A) To identify errors and discrepancies in accounting records

B) To calculate taxes

C) To create financial statements

D) To record daily transactions

Answer: A) To identify errors and discrepancies in accounting records

Question: Which type of advertising aims to create awareness and build a positive image for a brand?

A) Comparative advertising

B) Informative advertising

C) Persuasive advertising

D) Reminder advertising

Answer: B) Informative advertising

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

A) Regulate monetary policy

B) Enforce antitrust laws

C) Protect investors and maintain the integrity of securities markets

D) Control fiscal policy

Answer: C) Protect investors and maintain the integrity of securities markets