WAEC Commerce Past Questions & Answers - Page 50

246.

The exchange of goods for goods in home trade is known as

A.

entrepot trade

B.

trade by barter

C.

commodity trade

D.

distributive trade

Correct answer is B

Barter is involves the provision of one good or service by one party in return for another good or service from another party.

247.

The main function of a thrift and credit cooperative society is to

A.

encourage members to buy cheaply

B.

enable members get the highest profit

C.

help members get legal redress

D.

encourage members to save

Correct answer is D

Thrift and Credit Society = Is a cooperative organization that provide its members with convenient and secured means of saving money and obtained credit at a reasonable rate of interest without collateral, but deduction from salary on monthly basis.

 The ultimate goal is to encourage thrift among the members and to meet the credit needs of people who might otherwise be exposed to exploitation.

248.

Catalogs are mostly used by

A.

chain stores

B.

department stores

C.

mail order firms

D.

supermarkets

Correct answer is C

mail order company. Companies which list their products for sale in catalogs or websites for consumers to buy via telephone, mailed check with order form, or internet order.

249.

Which of the following insurance principles states that a person must be in a position to suffer financially in the event of a loss?

A.

Proximate cause

B.

Indemnity

C.

Insurable interest

D.

Subrogation

Correct answer is B

Indemnity insurance is a contractual agreement in which one party guarantees compensation for actual or potential losses or damages sustained by another party. 

250.

Which of the following must be stated in the article of association?

A.

the objects of the company

B.

the registered office address of the company

C.

the method of issue and transfer of shares

D.

Statement that liabilities are limited

Correct answer is A

The object clause contained in the articles of association of a company sets out the objects for which the company has been formed.