Business Studies Exam Questions for JSS1 Second Term

You’re welcome to our school exams series where we provide you with termly examination questions in different subjects. In today’s post, we will focus on Business Studies exam questions. We will cover Business Studies exam questions for JSS1 second term with answers. This means that we’ll be providing you with answers to the questions at the end. Also, you will get a few success tips on how to pass Business Studies examinations with flying colors. Remember to use the comments sections if you have questions, and don’t forget to join our Free Online Tutorial Classes on Facebook. (Like and Follow Page)

Introduction to Business Studies as a School Subject

Business Studies is an essential subject that equips students with the foundational knowledge and practical skills needed to understand the world of business. It covers areas like commerce, bookkeeping, office practice, and entrepreneurship, helping students develop a strong base for future careers and personal financial management.

The subject is offered by students in Junior Secondary School as Business Studies.

Business Studies Exam Questions for JSS1 Second Term

Business Studies Exam Questions for JSS1 Second Term are divided into two sections:

• Section A
• Section B

The second section, namely, Section A is the objective test, and students are expected to attempt all questions in the section. Section B is the theory part, and students are expected to answer five (5) out of the seven (7) questions.

SECTION A: Objectives

Attempt All the Questions in this Section by choosing from the options lettered A—D.

1. The book signed by people who visit an office is known as _________ book.
A. visitors’          B. welcome
C. office             D. time

2. The industries that turn raw materials into finished goods are called _________ industries.
A. mining           B. construction
C. coal                D. manufacturing

3. Goods imported for the purpose of exporting to another country is ___________.
A. entrepot          B. entrepreneur
C. entrsort           D. enterprise

4. A book keeper must have the following qualities except ___________.
A. be careful and accurate with figures
B. write legibly
C. be able to operate calculating machines
D. be able to defraud the business

5. The person that contributes capital and does not take part in the running of the business is called ____________ partner.
A. active              B. general
C. limited            D. sleeping

6. The type of the village market is
A. supermarket           B. shops
C. mini-mart               D. open air market

7. Incoming mails should be ____________
A. Opened, dated, stamped and sorted
B. opened, read and put away
C. opened, read and return to sender
D. opened, signed and put away

8. A store having so many departments or sections under the same roof is known as
A. Departmental store
B. Kingsway
C. super store
D. chain store

9. What is a buyer given for purchasing goods from a seller?
A. An order
B. An invoice
C. A receipt
D. A letter of enquiry

10. What is the document sent from the buyer to the seller showing the quantity, quality and description, price of goods he wishes to buy is called?
A. A letter of enquiry
B. An order
C. An invoice
D. Quotation

11.  A consumer must derive ______ from every goods used.
A. joy                 B. satisfaction
C. asset              D. product

12.  An entrepreneur must be able to ______ for the business.
A. cry             B. undertake risk
C. write          D. jump

13.  _______ the reward of an entrepreneur.
A. salaries/wages        B. rent
C. profit                       D. interest

14.  Entrepreneurship brings about _________ in the economy
A. growth                  B. building
C. books                    D. laws

15.  If chemicals are not properly handled, they could cause the following except ________
A. harm                    B. happiness
C. burn                     D. death

16.  Which of the following occupations is against the law of Nigeria?
A. farming                B. teaching
C. smuggling           D. trading

17.  Which of the following industries takes raw materials from the earth?
A. distribution            B. manufacturer
C. extractive               D. construction

18.  The money paid to an employee for services rendered is called ________
A. rent                     B. commission
C. gain                     D. salaries/wages

19.  Machines are called capital goods because ______
A. they are not easy to get
B. they help in the production of other goods
C. they are very cheap
D. they are not easy to get

20.  Buying and selling of goods is known as _______
A. distribution               B. trade
C. exchange                  D. economics

21. A document which is used to send messages from one person to another in the same firm, from one department to another or from one department to another or from one head office to the branches or from a principal to his agents is known as
A. a manuscript
B. a memorandum
C. menu
D. document

22. Book keeping could be defined as
A. keeping of book in the store
B. keeping of book in the library
C. systematic recording of business transaction in manner that financial position will be known at any given time
D. recording of business in manner that the financial position will not be known easily

23. Which of the following is not a type of buying
A. by description/grade
B. by sample
C. by auction
D. by selection

24. In book keeping, all transactions involving cash and bank at the bank is called
A. double              B. real
C. contra               D. triple

25. Trade between two countries is known as __________ trade.
A. boundary              B. home
C. foreign                  D. local

26. All except one are the features of an entrepreneur
A. brings the capital
B. is fixed asset
C. determines what is to be produce
D. employs labor

27. One of the jobs performed by the clerical personnel is ____________.
A. communication with visitors
B. staffing
C. planning
D. organizing

28. ___________ is the source of the cooperative society capital.
A. Bank
B. Cooperators
C. Public tax
D. Borrowing from government

29. Which of these pair may not go together?
A. capital, interest
B. organizer, profit
C. land, rent
D. entrepreneur, wages

30. Which of the following is referred to as ‘partnership agreement’?
A. Article of Association
B. partnership deed
C. prospectus
D. memorandum

31. ____________ Can be defined as the means through which the goods produced get to the final consumer
A. production                  B. distribution
C. communication           D. Advertising

32. The primary medium of exchange in business is
A. cash
B. money
C. trade by barter
D. bank tellers

33. ____________ is the path through which goods move from the producer to the consumers.
A. channel
B. advertisement
C. transportation
D. communication

34. ____________ are traders who usually move from one place to the other or from one street to the other to make their goods available to people
A. sellers                B. traders
C. hawkers             D. retailers

35. The following are types of bank account except
A. savings deposit account
B. current accounts
C. fixed deposit
D. cash account

36. ___________ document is an instruction in writing made upon a bank to pay a certain sum of money to a named person.
A. teller                   B. cash
C. cheque                D. bank

37. The main reason why an individual goes into business is to ___________.
A. reduce the price of goods
B. help the poor
C. make profit
D. develop the society

38. Aids to trade include the following except _____________.
A. insurance             B. trading
C. banking               D. advertising

39. The following are factors of production except ____________.
A. labour                B. industry
C. capital                D. land

40. A profession which occupies one’s time and through which one earns his/her living is called __________.
A. talent                 B. skill
C. engineer            D. occupation

41. The person who is the sole provider of business capital and suffer losses alone is called the ___________.
A. partner            B. trader
C. salesman         D. sole proprietor

42. The two major divisions of trade are _________ and _________.
A. commerce and industry
B. home and foreign
C. import and export
D. wholesale and retail

43. The services rendered by commercial drivers, private doctors etc are classified as __________.
A. direct service
B. producer goods
C. indirect service
D. services

44. A business organization with unlimited number of shareholders is known as
A. sole proprietorship
B. partnership
C. private company
D. public company

45. Which of the following is not a reward for being truthful?
A. bad reputation
B. good reputation
C. promotion
D. useful suggestion

46. The minimum number one can find in a partnership business is ____________.
A. two                B. four
C. seven             D. twenty

47. The following are the reasons for dishonoring of cheque except
A. sufficient funds
B. irregular signature
C. a stale cheque
D. insufficient funds

48. The type of account that we use cheque to withdraw from is _________
A. fixed deposit
B. cash account
C. current account
D. savings account

49. Choose the type of cheque that must first be paid into a current account and could not be exchanged for cash across the counter
A. bear                 B. order
C. unsigned         D. crossed

50. The following except one are all extractive occupations
A. agriculture       B. oil drilling
C. teaching          D. fishing

51. An insurance policy that covers accident on sea is known as ____________ insurance.
A. burglary              B. fire
C. marine                D. ship

52. Which of the following is NOT a reward for being truthful?
A. good reputation
B. bad reputation
C. promotion
D. useful suggestion

53. The two major divisions of trade are _____and ______
A. commerce and industry
B. home and foreign
C. import and export
D. wholesale and retail

54. Keeping records of all members of staff including their transfers, promotions, appraisal, e.t.c are functions of _________ department.
A. production                B. personnel
C. sales                          D. transport

55. Which of the following is NOT a professional in Business studies?
A. banker                 B. secretary
C. lawyer                  D. economist

56. A company gets the following as a reward of adhering to honesty in business except _______
A. good customer relationship
B. loyalty of people
C. patronage of customer
D. dubious business dealing

57. The act of passing information from one place to another is called ______
A. transport                   B. insurance
C. communication         D. warehousing

58. Import and export are components of _______
A. home trade              B. distribution
C. commerce                D. foreign trade

58. ___________ can be defined as the protection made against loss or damage to property or life which may arise from death, accident, theft, fire, etc
A. Production              B. Insurance
C. Fire insurance          D. Security

60. The following agents are involved in distribution except
A. producers               B. wholesaler
C. retailer                    D. hawker

SECTION B: Essay

INSTRUCTION – Answer only five (5) questions in this section. Question 1 is compulsory.

QUESTION 1
a. Who is a Sole Proprietor?
b. State two attributes of Sole Proprietorship.
c. State two advantages of a limited liability company.
d. State the minimum number and the maximum numbers of a partnership business.
e. List two information in the Deed of Partnership.

QUESTION 2
a. State two factors that affect occupation.
b. What are the types of occupation?
c. Give one example of a direct service and one example of indirect service.
d. State two consequences of not being truthful.
e. State the rewards of being truthful.

QUESTION 3
a. What are ethics?
b. State two ethics of sourcing for chemicals.
c. Define an enterprise.
d. Differentiate between private and public enterprises.
e. Give one example of private enterprise and an example of a public enterprise.

QUESTION 4
a. Who is a consumer?
b. State two importance of consumer education.
c. State three effects of lack of consumer education.
d. State two characteristics of chemicals suitable for home use.
e. Define a chemical.

QUESTION 5
a. What is book keeping?
b. State any two importance of book keeping.
c. List five qualities of a bookkeeper.
d. What are the books of original entry?

QUESTION 6
a. What is insurance?
b. List four benefits of insurance.
c. List 5 Insurance policies that can be taken by a business

QUESTION 7
a. What is consumers right?
b. List five universal consumers right.
c. List two responsibilities of a consumer?

Answers to Business Studies Exam Questions for JSS1 Second Term

Answers to Section A (Objective Test)

The following table gives the correct answers to the objective section of Business Studies exam questions for JSS1 second term. If you are using a mobile device, hold the table and scroll to the right or left for a complete view.

So here you have the answers to the objective section of Business Studies Exam Questions for JSS1 second term. Use the comments section to let me know if you have any questions you would want me to clarify or discuss further.

Answers to Section B (Theory)

QUESTION 1

1a. Who is a sole proprietor?
A sole proprietor is an individual who owns, operates, and manages a business, bearing all risks, liabilities, and profits alone.

1b. State two attributes of sole proprietorship.

1. Complete control over all business decisions.
2. Unlimited liability for debts and obligations.

1c. State two advantages of a limited liability company.

1. Owners’ personal assets are protected from business debts.
2. Easier access to capital through the issuance of shares.

1d. State the minimum and maximum numbers in a partnership business.

• Minimum: 2 partners.
• Maximum: 20 partners (for non-professional partnerships).

1e. List two pieces of information included in the Deed of Partnership.

1. The capital contributions of each partner.
2. The profit and loss sharing ratio among partners.

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QUESTION 2

2a. State two factors that affect occupation.

1. Level of education and acquired skills.
2. Availability of natural resources and economic opportunities.

2b. What are the types of occupation?

1. Primary Occupation: Activities like farming and fishing.
2. Secondary Occupation: Manufacturing and industrial activities.
3. Tertiary Occupation: Service-based activities like teaching and banking.

2c. Give one example of direct service and one example of indirect service.

• Direct service: Teaching.
• Indirect service: Banking.

2d. State two consequences of not being truthful.

1. Loss of trust and damaged relationships.
2. Risk of legal penalties or punishments.

2e. State two rewards of being truthful.

1. Gaining a good reputation and respect.
2. Promotion and recognition in personal and professional life.

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QUESTION 3

3a. What are ethics?
Ethics are moral principles or guidelines that govern behavior and decision-making in various contexts.

3b. State two ethics of sourcing for chemicals.

1. Ensure compliance with safety and environmental regulations.
2. Avoid sourcing harmful or prohibited substances.

3c. Define an enterprise.
An enterprise is an organized economic activity or business aimed at producing goods or services for profit.

3d. Differentiate between private and public enterprises.

• Private Enterprise: Owned and managed by individuals or groups (e.g., Dangote Cement).
• Public Enterprise: Owned and operated by the government (e.g., Nigerian Postal Service).

3e. Give one example of private enterprise and one example of public enterprise.

• Private enterprise: MTN Nigeria.
• Public enterprise: Nigerian National Petroleum Corporation (NNPC).

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QUESTION 4

4a. Who is a consumer?
A consumer is a person who purchases goods or services for personal or household use.

4b. State two importance of consumer education.

1. It enables consumers to make informed purchasing decisions.
2. It creates awareness about consumer rights and responsibilities.

4c. State three effects of lack of consumer education.

1. Increased exploitation by sellers.
2. Financial losses due to poor purchases.
3. Difficulty in seeking redress for defective goods or services.

4d. State two characteristics of chemicals suitable for home use.

1. They should be non-toxic and safe for human use.
2. They must have clear labeling with usage instructions.

4e. Define a chemical.
A chemical is a substance with a specific composition and properties used in various applications, including cleaning, production, or research.

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QUESTION 5

5a. What is bookkeeping?
Bookkeeping is the systematic process of recording and organizing financial transactions of a business.

5b. State any two importance of bookkeeping.

1. Helps in monitoring business income and expenses.
2. Provides accurate financial records for decision-making and tax purposes.

5c. List five qualities of a bookkeeper.

1. Accuracy.
2. Confidentiality.
3. Organizational skills.
4. Attention to detail.
5. Integrity.

5d. What are the books of original entry?

1. Sales journal.
2. Purchases journal.
3. Cashbook.
4. General journal.
5. Returns journal.

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QUESTION 6

6a. What is insurance?
Insurance is a financial arrangement where individuals or businesses pay premiums in exchange for protection against specified risks or losses.

6b. List four benefits of insurance.

1. Provides financial security.
2. Ensures business continuity in case of losses.
3. Protects assets and investments.
4. Fulfills legal requirements in certain sectors.

6c. List five insurance policies that can be taken by a business.

1. Fire insurance.
2. Property insurance.
3. Marine insurance.
4. Liability insurance.
5. Business interruption insurance.

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QUESTION 7

7a. What is consumer right?
Consumer right refers to the entitlements and protections granted to individuals when buying goods and services.

7b. List five universal consumer rights.

1. Right to safety.
2. Right to information.
3. ℜight to choose.
4. Right to be heard.
5. Right to redress.

7c. List two responsibilities of a consumer.

1. Read product labels and instructions before use.
2. Report defective or harmful goods to relevant authorities.

How to Pass Business Studies Exam Questions for JSS1 Second Term

Passing your Business Studies exam questions for JSS1 second term requires a combination of preparation, understanding, and strategy. Here are actionable tips to help you excel:

1. Understand the Syllabus
   Focus on key topics like types of business, bookkeeping, communication, office practices, and entrepreneurship.
2. Review Your Notes
   Go through your class notes and textbooks regularly. Highlight important points for quick revision.
3. Practice Past Questions
   Solve past questions to familiarize yourself with the exam format and question styles.
4. Master Definitions and Key Concepts
   Learn key definitions, features, and examples related to each topic.
5. Improve Typing Skills (if applicable)
   Practice typing or using a computer keyboard if your course includes practical sessions.
6. Create a Study Plan
   Allocate specific times to study each topic and stick to the schedule.
7. Ask Questions
   Seek clarification from your teacher or classmates if you find any topic difficult.
8. Stay Organized
   Keep your study materials neat and accessible for quick reference.
9. Stay Calm and Confident
   Get enough rest before the exam and believe in your preparation.

Best wishes.