WAEC Past Questions and Answers - Page 5

21.

When a ship overstays the allowed number of days at the port, it is made to pay

A.

interest

B.

tariff

C.

demurrage

D.

commission

Correct answer is A

Demurrage is a charge payable to the owner of a chartered ship on failure to load or discharge the ship within the time agreed.

22.

A voluntary association which consists of people who represents a cross section of business interests in an area is a

A.

Trade Association

B.

Trade Union

C.

Chamber of Commerce

D.

Consumer's Association

Correct answer is A

Trade association is a voluntary organization of independent business units in the same branch of industry. It aims to protect their collective interests, especially in negotiations with governments and trade unions.

23.

A postal service that allows a company's customers to reply to its advertisements at the expense of the company is

A.

recorded delivery service

B.

post restante

C.

express delivery service

D.

business reply service

Correct answer is C

No explanation has been provided for this answer.

24.

A business obtains part of its short-term capital from

A.

bonds

B.

debentures

C.

trade credit

D.

ordinary shares

Correct answer is C

Trade credit is an essential tool for financing growth. Trade credit is the credit extended to you by suppliers who let you buy now and pay later. Any time you take delivery of materials, equipment or other valuables without paying cash on the spot, you're using trade credit.

25.

A person who contributes money to a partnership business and is also involved in its general supervision is called

A.

An active partner

B.

a limited partner

C.

A dormant partner

D.

a nominal partner

Correct answer is A

An active partner is an invested person who is involved in the daily operations of the partnership. An active partner helps run the business to enhance his or her returns and is therefore considered a material participant.