Business Studies Exam Questions for JSS3 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 JSS3 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 JSS3 Second Term

Business Studies Exam Questions for JSS3 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. Petty cash book is used to _______
A. record minor expenses
B. pay staff salaries
C. record goods sold on credit
D. record bank transactions

2. Asset means _______
A. properties         B. liabilities
C. debtor               D. creditor

3. The person who owns, runs and establishes business is called _______
A. entrepreneur        B. diligence
C. hardworking         D. coordinator

4. The physical counting of the stock in the store at a particular time is known as _____
A. stock record
B. stock taking
C. stock control
D. stock working

5. A telephone call within a town is called ______
A. emergency         B. trunk
C. local                   D. sudden

6. A balance sheet is a statement
A. showing the statement of account
B. of assets and liabilities at a particular time
C. of business liabilities
D. of business assets

7. A list of items in order of importance or relevance is ___________.
A. choice
B. opportunity
C. scale of justice
D. scale of preference

8. Goods imported for the purpose of exporting to another country is ____________.
A. entrepot             B. entresort
C. entrepreneur      D. entererpot

9. Plant and machinery are examples of __________ asset.
A. floating        B. current
C. fixed            D. circulating

10. Final account does not include one of the following :
A. trial balance
B. trading account
C. profit and loss account
D. cash account

11. Net Purchases is ____________.
A. purchase minus Returns Outwards
B. Purchase plus Returns Outwards
C. Purchase plus Returns Inwards
D. Purchase minus Returns Inwards

12. Advertisement helps to ____________.
A. reduce sales
B. increase sales
C. increase stock
D. decrease productivity

13. A customer has N500 in his bank account, but has been allowed to withdraw N900; what is the value of the overdraft granted the customer?
A. N400              B. N500
C. N900              D. N1,400

14. Which of the following is not an example of item on the debit side of the trial balance?
A. purchases
B. wages
C. discount allowed
D. discount received

15. Bank overdraft is recorded in the ____________.
A. debit side of the trial balance
B. debit side of the trading account
C. credit side of the trial balance
D. credit side of the trading account

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

17. Moving goods from Nigeria to Ghana is called _______
A. export trade
B. gift of unit
C. import trade
D. retail trade

18. The act of passing information from one place to the other is called _____
A. ware housing
B. communication
C. advertising
D. transportation

19. A type of business owned and run by one person is known as _____
A. co-operative
B. sole proprietorship
C. company
D. partnership

20. Division of labour _______ output.
A. decreases           B. disallows
C. increases            D. releases

21. Trial balance is prepared to get the arithmetical accuracy of the ___________________.
A. journal entries
B. trading entries
C. balance sheet entries
D. ledger entries

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

23. The trading, profit and loss account are concerned with the following except _____________.
A. total sales          B. gross profit
C. net profit           D. debtors

24. Which side of the cash book is payment side?
A. central side
B. right hand side
C. left hand side
D. both left and right hand side

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

26. One of the functions of the Central Bank of Nigeria is to ______
A. give loans to traders
B. carry money from Lagos to Abuja
C. print passport photographs
D. mint country’s currencies

27. Which of the following is not used for transporting goods and people on seas?
A. canoe          B. ferry
C. trailer          D. boat

28. The following are examples of advertising media except _____
A. radio             B. television
C. textbook       D. magazine

29. The following are procedures for making payment except _____
A. payment by bank draft
B. payment by cash
C. payment by receipt
D. payment by cheque

30. The money used in starting business is called _______
A. cash at hand
B. cash at bank
C. cheque
D. capital

31. Which of the following advertising media is suitable for demonstrating Omo detergent?
A. newspaper        B. magazine
C. radio                 D. television

32. The place where typewriters are kept is called _______
A. store room
B. typing house
C. typing pool
D. typing room

33. Olufolabi has N800 in her bank account but withdraws N1200. How much overdraft has been granted to her?
A. N1000            B. N800
C. N700              D. N400

34. A clerical staff performs the following functions except _______
A. direct visitors to executive’s office
B. laundering for the boss
C. file documents
D. running official errands

35. The aid to trade that involves the movement of goods and people to where they are needed is ______
A. communication      B. transportation
C. banking                  D. advertising

36. Capital in the balance sheet is recorded _____________.
A. in the trading account
B. on the liability side
C. under the fixed assets
D. under the current assets

37. Calculate the cost of goods sold from the following information:
Opening stock N1,200
Closing stock N400
Purchases N3,500
Sales N5,000

A. N4,300          B. N4,700
C. N5,100          D. N6,900

38. Net sales is ___________.
A. purchases less returns outwards
B. sales minus returns outwards
C. sales less returns inwards
D. sales plus returns inwards

39. Ade made a budget of N5,200 and spent N4,800. What is the balance left with Ade?
A. N200             B. N400
C. N600             D. N800

40. All are expenses except __________.
A. carriage inwards
B. carriage outward
C. advertising expenses
D. discount received

41. _______ is the arrangement of wants according to priority.
A. choice
B. scarcity
C. scale of preference
D. opportunity cost

42. A trade between two or more countries is called _____
A. international trade
B. local trade
C. domestic trade
D. home trade

43. Another name for home trade is _______
A. foreign trade
B. international trade
C. cosmetic trade
D. domestic trade

44. The following are documents used in buying and selling except ______
A. order           B. catalogue
C. invoice        D. visitor’s book

45. The money used to start business is recorded on which side of the cash book?
A. debit side
B. credit side
C. creditor side
D. debtor side

46. A good receptionist must possess the following qualities except ______
A. loyal to the organisation
B. punctual at work
C. must not be aggressive
D. must stay in office for 24 hours

47. A place where buyers and sellers meet to transact business is called ______
A. shop           B. market
C. trade          D. school

48. The department which deals with staff matters is ______
A. personnel department
B. finance department
C. purchasing department
D. sales department

49. Labour is rewarded with ______
A. rent
B. profit
C. capital
D. wages and salaries

50. A retailer is the one who ______
A. specializes in industrial goods
B. sells to wholesalers
C. buys in small quantities from the wholesaler and sell to the consumer in units
D. none of the above

51. An office material in which personal data of staff are kept is called ______
A. table
B. wood box
C. file cabinet
D. jacket

52. The fastest means of transportation is _______
A. land           B. air
C. pipeline     D. water

53. One of the following is not an office equipment.
A. printer
B. perforator
C. recharge card
D. typewriter

54. A telephone operator must be _______.
A. heady            B. neat
C. kind               D. polite

55. C.O.D means _______
A. cost of delivery
B. cash on delivery
C. cash of delivery
D. cash on delay

56. Aids to trade consists of ______
A. banking
B. insurance
C. advertising
D. all of the above

57. One of the following is not an element of Business studies?
A. book keeping
B. physics
C. keyboarding
D. commerce

58. Which of the following is not extractive occupation?
A. farming           B. fishing
C. mining            D. driving

59. A type of advertising meant for the public to introduce new products is called _____
A. informative
B. persuasive
C. competitive
D. mass and specific

60. The method in which duties are carried out in respect of performance of business activities of an organization is called _______
A. office procedure
B. business studies
C. service render
D. office performance

SECTION B: Essay

INSTRUCTION – Answer four (4) questions only.

1a. From the data below, calculate the total fixed asset
Capital N5,000
Cash in hand N1,400
Stock N300
Creditors N1,600
Furniture N2,000
Bank N1,200
Debtors N500
machinery N3,200

1b. Use the following information below to answer the questions that follow:
Opening stock N20,000
Purchases N30,000
Closing stock N2,000
Sales N70,000
Rent N3,000
Electricity N2,000

(i) The cost of goods sold is __________.

(ii) Net profit is _________.

(iii) Total expenses is __________.

2. Write short notes on the following:
(i) Trading Account
(ii) Profit and loss account
(iii) Balance sheet
(iv) Trial balance

3a. State the uses of personal budget.
3b. Explain the effects of living a modest life.
3c. Differentiate between budget deficit and budget surplus; give example.
3d. Define consumption.
3e. List out four sources of finance for an individual.

4a. State two benefits of seeking redress.
4b. What are the ways of seeking redress?
4c. Explain briefly the following terms:
(i) Extravagant
(ii) Prudent in spending
(iii) Scale of preference

5. You are required to prepare balance sheet as at 31st Dec, 2010 using both traditional and vertical formats from the following balances:
Capital N9,800
Net profit for the year N2,580
Drawings N1,400
Creditors N2,340
Debtors N2,670
10% loan N2,700
Plant and machinery N4,000
Stock N2,545
Premises N5,000
Cash at bank N1,540
Cash in hand N305

Answers to Business Studies Exam Questions for JSS3 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 JSS3 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 JSS3 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. The total fixed assets are calculated by adding up all the long-term assets of the business that are not easily converted into cash. In this case, the fixed assets consist of furniture, machinery, and premises.

Total Fixed Assets = Furniture + Machinery + Premises
= N2,000 + N3,200 + N5,000
= N10,200

1b. To calculate the cost of goods sold, net profit, and total expenses, we use the given information.

(i) Cost of Goods Sold (COGS): The COGS represents the direct costs associated with the production of the goods sold by the business. It can be calculated as:
COGS = Opening Stock + Purchases – Closing Stock
= N20,000 + N30,000 – N2,000
= N48,000

(ii) Net Profit: This is calculated by subtracting the cost of goods sold (COGS) and total expenses from the total sales. The expenses include rent and electricity.
Net Profit = Sales – COGS – Total Expenses
= 70,000 – 48,000 – (3,000 + 2,000)
= 70,000 – 48,000 – 5,000 = ₦17,000.

(iii) Total Expenses: The total expenses are the sum of rent and electricity.
Total Expenses = Rent + Electricity
= N3,000 + N2,000
= N5,000

QUESTION 2

Short notes:

(i) Trading Account: A trading account is used to calculate the gross profit or loss of a business from its trading activities. It shows the difference between sales and the cost of goods sold (COGS). The result is either a gross profit if sales exceed COGS, or a gross loss if COGS exceed sales.

(ii) Profit and Loss Account: This account reflects the overall profitability of a business over a given period, showing the net profit or loss after subtracting expenses from total income. It includes indirect costs like rent, salaries, and electricity, which are not part of the trading account but essential for calculating net profit.

(iii) Balance Sheet: A balance sheet shows the financial position of a business at a specific point in time. It lists the business’s assets (both fixed and current), liabilities (debts and obligations), and equity (owner’s stake). It is based on the accounting equation: Assets = Liabilities + Equity.

(iv) Trial Balance: The trial balance is a summary of all the general ledger accounts of a business, with their balances listed as debit or credit. It ensures that the total of debit balances equals the total of credit balances, confirming the accuracy of the bookkeeping entries.

QUESTION 3

3a. Uses of Personal Budget:

• Managing Finances: A personal budget helps individuals track their income and expenditures to ensure they are living within their means.
• Achieving Financial Goals: By budgeting, people can allocate funds towards specific goals, like saving for retirement or buying a home.
• Controlling Spending: It allows for better control of discretionary spending and helps avoid impulsive purchases.
• Preventing Debt: A personal budget helps individuals avoid overspending and accumulating unnecessary debt.

3b. Effects of Living a Modest Life:

• Financial Stability: Living modestly ensures that spending does not exceed income, providing financial security for the individual or family.
• Increased Savings and Investment: By focusing on needs rather than wants, individuals can save and invest more, leading to financial growth over time.
• Less Stress: A modest lifestyle reduces the financial strain that often comes with trying to keep up with others’ spending habits.
• Improved Long-Term Planning: It allows for better preparation for future needs such as healthcare, education, or retirement.

3c. Budget Deficit vs. Budget Surplus:

• βudget Deficit: This occurs when an individual or government spends more money than they earn. For example, if the government’s annual expenditures exceed its tax revenue, it results in a budget deficit, which may require borrowing.
• Budget Surplus: A budget surplus happens when income exceeds expenditures. For instance, if an individual earns more from their salary than they spend on living expenses, they achieve a budget surplus, which can be saved or invested.

3d. Consumption: Consumption is the process of using goods and services by individuals or households. It includes activities like buying food, using electricity, or paying for healthcare, representing how resources are consumed to satisfy human wants.

3e. Four Sources of Finance for an Individual:

• Personal Savings: Money that an individual has saved from past earnings or investments.
• Bank Loans: Borrowed money from a financial institution that must be repaid with interest.
• Borrowing from Family/Friends: Individuals may borrow money from relatives or friends for personal needs.
• Sale of Assets: Selling personal property, like a car or home, to raise funds.

QUESTION 4

4a. Benefits of Seeking Redress:

• Recovery of Losses: Seeking redress allows individuals to reclaim any financial or material losses incurred due to unfair practices.
• Accountability: It encourages businesses or individuals to take responsibility for their actions and maintain ethical standards.
• Justice: It ensures that parties who have been wronged are treated fairly, creating a more just society.
• Improvement of Services: Addressing grievances often leads to improvements in products or services, benefiting other consumers in the long term.

4b. Ways of Seeking Redress:

• Complaints to Authorities: If a consumer is dissatisfied, they can file a complaint with regulatory bodies or consumer protection agencies.
• Legal Action: In cases of serious grievances, an individual may resort to taking legal action to seek compensation or justice.
• Arbitration: In some cases, resolving disputes through third-party mediation or arbitration can be an effective way of seeking redress.
• Public Reviews: Publicly sharing experiences on review platforms can encourage businesses to address issues to protect their reputation.

4c. (i) Extravagant: Being extravagant involves spending money recklessly or excessively, often on things that are unnecessary or beyond one’s means.
(ii) Prudent in Spending: Being prudent means making careful, wise decisions about how to use money. It involves balancing needs and wants and avoiding wasteful expenditures.
(iii) Scale of Preference: The scale of preference is a prioritized list of needs and wants. It ranks items based on their importance, helping individuals or organizations make rational decisions about resource allocation.

How to Pass Business Studies Exam Questions for JSS3 Second Term

Passing your Business Studies exam questions for JSS3 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 business terms, financial statements, and forms of business ownership. Know what to expect.
2. Practice Past Questions: Solve previous exams and sample questions regularly. This builds confidence and helps you understand how questions are framed.
3. Break Down Tough Topics: Simplify difficult concepts into smaller parts. Use charts or examples to understand them better.
4. Learn Key Terms: Memorize important terms like “gross profit,” “assets,” and “liabilities.” Use flashcards for quick revision.
5. Work Smart with Time: Practice answering questions within time limits. In the exam, start with easier questions before tackling harder ones.
6. Study in Groups: Discuss topics with friends, quiz each other, and share ideas. Teaching others helps you learn faster.
7. Revise and Rest: Stick to a study schedule, but take breaks to stay fresh. Get enough sleep before the exam day.
8. Stay Healthy: Eat well, stay hydrated, and avoid last-minute cramming. A calm mind performs best.

Read Also: Business Studies Exam Questions for JSS2 Second Term

Best wishes.