Business Studies Exam Questions for JSS2 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 JSS2 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 JSS2 Second Term

Business Studies Exam Questions for JSS2 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 all the five (5) questions.

SECTION A: Objectives

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

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

2. ____________ 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

3. In a business organization, who is a risk bearer?
A. coordinator            B. trader
C. entrepreneur          D. middleman

4. Which of the following is not a function of an office?
A. receives information
B. employs information
C. provides information
D. records information

5. When a mail is delivered by hand ______ has to be signed by the receiver as a proof of delivery
A. mail register
B. dispatch book
C. register book
D. outward book

6. Import and export business is an example of _________ business.
A. home              B. International
C. local                D. buying

7. When other countries are involved in buying and selling, it is called ______
A. home trade
B. foreign trade
C. entrepot
D. import

8. One of the personal qualities of a clerk is ____________
A. impatience          B. obedience
C. lateness               D. unreliable

9. All  human efforts whether physically or mentally directed towards the production of wealth is ______
A. land                   B. labour
C. capital                D. entrepreneur

10. A person who takes an insurance policy is known as ____________
A. Insurance            B. Insured
C. Insurer                D. Premium

11. Below are insurance policies except for ____________
A. fire               B. life
C. marine         D. earthquake

12. Who keeps the petty cash book?
A. Petty cashier
B. Petty recorder
C. Accountant
D. Typist

13. Banking, insurance, advertising, communication etc are known as ____________.
A. production activities
B. aids to trade
C. sales activities
D. commercial activities

14. The insurance policy on goods transported on water is known as ________________.
A. third party               B. burglary
C. compensation         D. marine

15. The person who coordinates other factors of production is called ________________.
A. manager               B. supervisor
C. entrepreneur         D. accountant

16. The department that is responsible for buying of goods and raw materials in large quantities for an organization is called ____________
A. accountant department
B. sales department
C. production department
D. purchase department

17.  _______ is a place where money and other valuables are kept.
A. warehouse           B. safe
C. bank                     D. cold room

18.  _________ is a branch of commerce that covers business risk.
A. banking                B. insurance
C. finance                 D. marketing

19. Office documents are also known as ____________
A. store documents
B. sales document
C. source documents
D. file documents

20.  _______ coordinates all other factors of production.
A. capital                B. land
C. labour                D. entrepreneur

21. A telephone operator in an office must be ________________.
A. aggressive          B. polite
C. kind                    D. neat

22. The trader who buys in large quantities and sells in smaller quantities to the retailer is called ________________.
A. retailer              B. manufacturer
C. wholesaler        D. producer

23. The place where goods are stored until they are needed is called ________________.
A. insurance              B. bank
C. warehouse            D. container

24. C. Okeke started business on January 1st with N200 000. What are the two accounts to be opened?
A. C. Okeke account and capital account
B. capital account and business account
C. C. Okeke account and cash account
D. capital account and cash account

25. Which of the following pairs are the major duties of a receptionist?
A. gossiping and receiving callers
B. handling the telephone and posting letters
C. receiving callers and handling the telephone
D. smiling and conversing with visitors

26. Moving good from Nigeria to Ghana is called _________
A. export trade
B. gift of unit
C. import trade
D. production

27. Aids to trade consist of the following except ________
A. insurance            B. advertising
C. shipping              D. banking

28. A financial book where all transactions are recorded is called ______
A. cash book
B. purchases book
C. credit book
D. credit book

29. The trader who buys in large quantities and sells in smaller quantities is called ______________
A. wholesaler         B. producer
C. retailer               D. sole proprietor

30. The left-hand side of an account is the _____ side while the right-hand side is the ______ side.
A. Dr, Fr
B. Dr, Cr
C. Cr, Fr
D. Cr, Dr

31. All of these are types of cashbooks, except ______ cashbooks.
A. simple
B. two-column
C. three-column
D. double-entry

32. Bookkeeping 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 a manner that financial position will be known at any given time
D. recording of business in a manner that the financial position will not be known easily

33. A bank to all other banks in Nigeria is the ________________.
A. First Bank of Nigeria plc
B. Central Bank of Nigeria
C. New Nigerian Bank
D. Federal Saving Bank

34. A petty cash officer got a cheque of N1000 and spent N715. He should make up his account with ________________.
A. N285            B. N315
C. N400            D. N715

35. A cheque with two parallel lines drawn across its face is called ________________.
A. open cheque
B. cancelled cheque
C. crossed cheque
D. certified cheque

36. Stock turn over means ________________.
A. the value of closing stock
B. the value of opening stock
C. the value of sales
D. the number of times goods are bought

37. When payment for goods is delayed until a future period, it is known as ________________.
A. cash sales
B. credit sales
C. conditional sales
D. capital sales

38. The name used to describe the recording of cash and credit transactions for easy obtaining information is known as
A. cash-keeping
B. credit-keeping
C. book-keeping
D. book-filing

39. The pocket–size calculator is useful for performing ____________
A. erasure
B. simple mathematical work
C. typing
D. keyboarding

40. What is the reward of an entrepreneur as a factor of production?
A. interest            B. rent
C. profit               D. wages

41. The accounting record used to record small expenses in an organization is known as
A. cash book
B. petty cash book
C. journal
D. ledger

42. Letters coming into an organization from other firms is known as ____________
A. incoming mail
B. outgoing mail
C. air mail
D. inland mail

43. Ethics refer to ____________
A. values of the school
B. values and rules of a school
C. values, rules and behavior that govern people
D. values and rules governing school exams

44. Which of these is not a type of special journal
A. purchases journal
B. returns inwards journal
C. returns outwards journal
D. purchases inward journal

45. Which of the following is found in a business card?
A. car number
B. name of the holder
C. name of children of the holder
D. house address of the holder

46. The following banks are commercial banks except ____________.
A. Union bank
B. Wema bank
C. Zenith bank
D. Central bank

47. The end point in the channel of distribution of goods is ____________.
A. consumer              B. manufacturer
C. middlemen            D. retailer

48. A provision which a wise man makes against future occurrence of losses is ____________.
A. insurance           B. protection
C. savings               D. banking

49. ___________ is the middleman between the manufacturer and the retailer.
A. Consumer            B. Wholesaler
C. Manufacturer       D. Customer

50. Goods bought for resale are entered as ___________.
A. ledger                 B. account
C. purchases            D. sales

51. _______ is a legal proof of evidence of payment.
A. invoice                   B. catalogue
C. receipt                   D. waybill

52. Which of the following is not a type of insurance?
A. vehicle accident insurance
B. life assurance
C. marine insurance
D. public insurance

53. Marine insurance involves _________
A. insurance to cover goods and houses
B. insurance to cover goods and business
C. insurance to cover goods and ship
D. insurance to cover ship and waters

54. Insurance can be taken out on all but one of the following
A. vehicle                    B. house
C. business                 D. income

55. _______ is also known as a caller.
A. visitor                 B. customer
C. receptionist        D. boss

56. A document written by the seller to the buyer to correct an over charge is called ____________.
A. credit note
B. debit note
C. invoice
D. order

57. The contract of insurance covers all the following except ___________.
A. bad debt                B. fire
C. gambling               D. human life

58. ______ is a market where long term loans are traded.
A. money market
B. capital market
C. commodity market
D. financial market

59. The following but one are business sectors in which businessmen can invest in.
A. fishing                B. construction
C. hospitality          D. motivation

60. Which of these documents are handled by a receptionist?
A. a sales book
B. account book
C. minute book
D. visitor’s book

SECTION B: Essay

INSTRUCTION – Answer all five (5) questions in this section.

1a. Production starts with consumers and ends with the consumers. Explain.
1b. In a tabular form, state two examples of small-scale retailers and large-scale retailers.
1c. Give one chemical vendor in Nigeria with the address.

2a. State five ethical issues in banking.
2b. List and explain the three main account operated by commercial banks.

3. Explain the following principles of insurance;
(i) indemnity
(ii) subrogation
(iii) contribution
(iv) utmost good faith
(v) proximate clause

3b. State five benefits of insurance.

4a. State two differences between needs and wants.
4b. State three effects of impulse buying.
4c. State three features of book-keeper.
4d. State two effects of lack of transparency, accountability and probity (TAP) .

5a. What are the three main groups of a cashbook?
5b. Using the information below, prepare a single column cashbook of Mr. Michael for the month of May, 2008:

May 1, commence business with cash N950.
May 4, cash sales N620.
Μay 10, bought goods for cash N600.
May 15, bought office furniture for cash N210.
May 20, paid insurance premium in cash N150.
Μay 21, bought goods for cash N200.
May 22, received loan from Okunola N500.
May 25, cash sales N750.
Μay 26, Ladi paid cash N400.
May 27, cash purchases N450.
May 28, paid traveling expenses in cash N250.
Μay 29, bought stationery for cash N100.

Answers to Business Studies Exam Questions for JSS2 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 JSS2 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 JSS2 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

a. Production starts with consumers and ends with consumers.
This means that the needs and preferences of consumers determine what is produced, and the final goods or services are delivered back to consumers to satisfy those needs.

b. Examples of small-scale and large-scale retailers:

Small-Scale Retailers	Large-Scale Retailers
Roadside sellers	Supermarkets
Kiosk operators	Departmental stores

c. One chemical vendor in Nigeria with the address:
Chemline Nigeria Limited, Plot 112, Oba Akran Avenue, Ikeja, Lagos.

Question 2

a. Five ethical issues in banking:

1. Confidentiality of customer information.
2. Avoidance of fraud and embezzlement.
3. Honest financial reporting.
4. Fair treatment of customers.
5. Prevention of money laundering.

b. Three main accounts operated by commercial banks:

1. Savings Account: For individuals to deposit and withdraw money while earning interest.
2. Current Account: For businesses to conduct frequent transactions with no interest earned.
3. Fixed Deposit Account: For depositing money for a fixed period to earn higher interest rates.

Question 3

Principles of Insurance:
(i) Indemnity: Ensures the insured is restored to their financial position before the loss.
(ii) Subrogation: The insurer takes over the insured’s rights to recover from a third party responsible for the loss.
(iii) Contribution: If multiple policies cover the same risk, insurers share the claim.
(iv) Utmost Good Faith: Both parties must disclose all material facts honestly.
(v) Proximate Clause: The insurer compensates for losses directly caused by an insured risk.

b. Five benefits of insurance:

1. Protects against financial losses.
2. Encourages savings.
3. Reduces business risks.
4. Provides peace of mind.
5. Offers financial security to dependents.

Question 4

a. Two differences between needs and wants:

• Needs are essential for survival, e.g., food; wants are non-essential desires, e.g., luxury cars.
• Needs have limited scope, while wants are unlimited and change over time.

b. Three effects of impulse buying:

1. Leads to unnecessary expenses.
2. Reduces savings and financial stability.
3. Accumulation of unwanted items.

c. Three features of a book-keeper:

1. Accuracy in recording transactions.
2. Good organizational skills.
3. Knowledge of basic accounting principles.

d. Two effects of lack of transparency, accountability, and probity (TAP):

1. Erosion of trust in organizations.
2. Increased corruption and financial mismanagement.

Question 5

a. Three main groups of a cashbook:

1. Single column cashbook (records cash transactions only).
2. Double column cashbook (records cash and bank transactions).
3. Three column cashbook (records cash, bank, and discount transactions).

b. Single Column Cashbook of Mr. Michael for May 2008:

Final Balance: ₦1260.

How to Pass Business Studies Exam Questions for JSS2 Second Term

Passing your Business Studies exam questions for JSS2 second term requires a combination of preparation, understanding, and strategy. Here are actionable tips to help you excel:

1. Understand the Syllabus:
   Review your syllabus thoroughly to identify the key topics to study, such as principles of insurance, bookkeeping, and types of trade.
2. Organize Your Notes:
   Keep your class notes and textbooks well-organized. Highlight key definitions, formulas, and principles for quick reference.
3. Practice Past Questions:
   Solve past exam questions to familiarize yourself with the question format and improve your speed and accuracy.
4. Master Key Terms:
   Learn and understand important business terms like “indemnity,” “subrogation,” “cashbook,” and “wholesaler,” as they often appear in exams.
5. Use Mnemonics for Recall:
   Create simple memory aids or acronyms to remember lists and concepts, such as the features of insurance or the principles of bookkeeping.
6. Work on Weak Areas:
   Identify topics you struggle with and focus more on them. Ask your teacher or peers for clarification when needed.
7. Stay Calm and Confident:
   Get enough rest before the exam and avoid last-minute cramming. Stay positive, read instructions carefully, and manage your time effectively during the exam.

Best wishes.