JAMB Commerce Past Questions & Answers - Page 33

161.

An association that acts as a watchdog between enterpreneurs and government to protect trade from any unfavourable laws is said to be a

A.

cartel

B.

syndicate

C.

Chamber of Commerce

D.

Nigeria Bar Association

Correct answer is C

Chamber of Commerce (also referred to in some circles as a board of trade) is a form of business network, e.g., a local organization of businesses whose goal is to further the interests of businesses. Business owners in towns and cities form these local societies to advocate on behalf of the business community.

162.

An ancillary to trade which promotes socio - cultural development all over the world is

A.

transportation

B.

communication

C.

tourism

D.

insurance

Correct answer is C

Tourism means people traveling for fun. It includes activities such as sightseeing and camping. People who travel for fun are called "tourists". Places where manytourists stay are called "resorts". Places that people go to for tourism are called tourist destinations. Tourism promotes socio-cultural development

163.

One of the functions of the Nigerian Ports Authority is that it

A.

gives preferential treatment to Nigerian investors

B.

provides credit facilities to importers

C.

encourages the growth of infant industries

D.

provides warehosing facilities at the docks

Correct answer is D

providing and operating necessary facilities in ports and maintaining, improving and regulating the use of the ports

164.

Which of the following is the best method for computing working capital

A.

Total assets less current liabilities

B.

Current liabilities less current assets

C.

Fixed liabilities less current assets

D.

Current assets less current liabilities

Correct answer is A

The net working capital formula is calculated by subtracting the current liabilities from the current assets.

165.

The minimum lending rate of a bank is a component of its

A.

current assets

B.

debit balances

C.

credit balance

D.

fixed assets

Correct answer is A

the minimum lending rates of a bank depends on its current assets. Current assets here are balance sheet assets that can be converted to cash within one year or less. Accounts that are considered current assets include cash and cash equivalents, marketable securities, accounts receivable, inventory, prepaid expenses, and other liquid assets.