WAEC Commerce Past Questions & Answers - Page 179

891.

An undertaking given by a person to another assuring his integrity is

A.

proximate cause

B.

fidelity guarantee

C.

subrogation

D.

insurable interest

Correct answer is B

fidelity guarantee; an undertaking to answer for the payment or performance of another person's debt or obligation in the event of a default by the person primarily responsible for it.

892.

The type of labour that makes use of physical effort in production processes is the

A.

unskilled labour

B.

skilled labour

C.

blue-collar job

D.

white-collar job

Correct answer is A

Unskilled labor refers to Work which requires no special training or experience for performing the work adequately, but require physical strength and energy

893.

In case of a liquidation of a public limited liability company, those that are first paid are

A.

ordinary shareholders

B.

prefernce shareholders

C.

cumulative preference shareholders

D.

debenture holders

Correct answer is D

Debenture-holders are the subscribers to debentures. Debentures are part of loan. A shareholder or member is the joint owner of a company; but a debenture holder is only a creditor of the company. In the event of liquidation, they are paid first before any other class of lenders.

894.

Which of the following is a characteristic of a bearer cheque

A.

it is made with transverse lines

B.

it is made payable to whoever presents it

C.

it is made without transverse lines

D.

it is only payable into the payees account

Correct answer is B

A bearer cheque is payable to the bearer of the cheque.

895.

If a customer pays within nine days of receiving goods and takes advantage of 3% off the invoice price, this is stated as

A.

3/9;net 30

B.

9/27;net 30

C.

30;net 9/3

D.

9/30;net 3

Correct answer is D

9/30;net 3.
This means that, the buyer will get a 3% discount if payment is made on or before day 9