Edited by Nna Rejoice and Olorundare Oluwapelumi
Table of Contents
Possible Examination Questions
Term: Second
Class: SS1
Multiple Choice Questions
- What is an incorrect statement about bilateral trade?
A. It occurs between two nations.
B. It is usually based on a bilateral agreement.
C. It typically requires the use of foreign currency.
D. Both A and B.
E. All of the above. - Before importing goods into Nigeria, an individual must process Form M and submit it to the Central Bank through a commercial bank along with which of the following documents?
A. Proforma invoice.
B. Bill of lading.
C. Commercial invoice.
D. Air waybill.
E. Sea waybill. - What is not a common reason for imposing an import tariff?
A. Generating government revenue.
B. Reducing domestic inflation.
C. Protecting local industries from foreign competition.
D. Discouraging the importation of restricted goods.
E. Retaliating against trade partners’ tariffs. - Which of the following is not a role of the Nigerian Export Promotion Council?
A. Export development.
B. Export financing and offering incentives. C. Protecting local industries from foreign competition. D. Discouraging the importation of restricted goods. E. Retaliating against trade partners’ tariffs.
- A sole proprietorship is best described as:
A. A business owned by a single individual.
B. A business with limited liability.
C. An incorporated entity.
D. Both A and B.
E. Both A and C. - Which of the following is not considered a borrowed source of finance for a sole proprietorship?
A. Trade creditors.
B. Loans from a cooperative society.
C. Debentures.
D. Bank overdraft.
E. Loans from traditional money lenders. - One of the key advantages of a sole proprietorship is:
A. The owner is personally responsible for all debts.
B. It is inexpensive and simple to establish.
C. The business may not continue if the owner dies or becomes incapacitated.
D. Both A and B.
E. Both A and C. - Which of the following is a disadvantage associated with a sole proprietorship?
A. The owner bears full personal liability for business debts.
B. It is easy and affordable to establish.
C. The business may lack continuity if the owner is unable to continue.
D. Both A and B.
E. Both A and C. - Consider the following statements about sole proprietorships:
(I) They face more legal restrictions than other types of businesses.
(II) They are generally smaller in scale than other business structures.
(III) They can raise capital by issuing shares.
Which of these statements is/are true?
A. I only.
B. II only.
C. III only.
D. I and II only.
E. I, II, and III. - A dormant partner in a partnership:
A. Does not actively participate in the business.
B. Is not responsible for the partnership’s debts.
C. Does not receive a share of the partnership’s profits.
D. Includes both A and B.
E. Includes both A and C. - Under the current partnership law, in the absence of a partnership deed stating otherwise:
A. Profits and losses are shared equally among partners.
B. A 10% annual interest is payable on contributed capital.
C. Partners are entitled to fair remuneration for their service.
D. A partner may only be expelled through a majority vote.
E. Taking part in the business is a privilege, not a right. - Which of the following is not a source of borrowed finance for a partnership?
A. Trade creditors.
B. Loans from individual partners.
C. Debentures.
D. Bank overdrafts.
E. Loans from banks. - What is an advantage of a partnership over a sole proprietorship?
A. Partners are not personally responsible for all business debts.
B. It is more cost-effective and easier to establish.
C. It allows specialization and mutual consultation among partners.
D. Both A and B.
E. Both A and C. - Unless otherwise stated in the partnership agreement, a partnership may be dissolved without a court order under which circumstances?
A. At the expiration of the agreed partnership term.
B. If one of the partners dies or becomes bankrupt.
C. When the business is unable to remain profitable.
D. Both A and B.
E. Both A and C. - When a partnership is dissolved, the proceeds from asset liquidation are allocated in which order?
A. Settlement of external debts, then repayment of capital contributed by partners, followed by repayment of loans given by partners.
B. Settlement of external debts, then repayment of loans given by partners, followed by repayment of capital contributed by partners.
C. Repayment of partners’ contributed capital first, then repayment of loans given by partners, followed by settlement of external debts.
D. Repayment of loans given by partners first, then repayment of partners’ contributed capital, followed by settlement of external debts.
E. None of the above
Theory
1) Define the term “balance of trade.” How does it differ from the balance of payments?
2) Define a bill of lading and explain its contents, purpose, and mode of operation. How does a clean bill of lading differ from a dirty bill of lading?
3) Define a tradable commodity and discuss its key characteristics.
4) Differentiate between tangible and intangible tradable assets, providing examples of each.
5) Distinguish between spot and forward contracts in commodity trading.
6) Compare and contrast a forward contract and a futures contract in commodity trading, highlighting their similarities and differences.
7) Compare and contrast commodities and stocks, highlighting their similarities and differences.
8) Identify and explain five challenges that hinder the growth and development of commodity trading in Nigeria.
9) Explain the concept of sole proprietorship and identify the main sources of finance available to a sole proprietor.
10) List and discuss the advantages and disadvantages of a sole proprietorship.
11) Explain the concept of sole proprietorship and identify the main sources of finance available to a sole proprietor.
12) List and discuss the advantages and disadvantages of a sole proprietorship.
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