Commerce Exam Questions for SS1 Third 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 Commerce exam questions. We will cover Commerce exam questions for SS1 Third 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 Commerce 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 Commerce as a School Subject

Commerce is a subject that teaches students about the processes involved in the distribution of goods and services from producers to consumers. It helps students to understand how business activities are carried out, how trade is facilitated, and the role of different institutions like banks, insurance companies, stock exchange, and transport systems in commercial activities.

Studying Commerce helps students develop basic business knowledge and prepares them for careers in business, accounting, banking, marketing, and entrepreneurship. It also equips learners with the skills needed to understand modern trade, both locally and internationally.

Commerce Exam Questions for SS1 Third Term

Commerce Exam Questions for SS1 Third Term are divided into two sections:

• Section A
• Section B

The first 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 follow specific instruction and answer the required number of questions.

Note that what you have below are SS1 Commerce Third Term Exam Past Questions made available to assist students in their revision for 3rd term examinations and also teachers in structuring standard examinations.

SECTION A: Objectives

Instruction: Answer all questions in this section by choosing from the options lettered A—D. Each question carries equal marks.

1. In winding-up a company, the assets of the company are vested in the hands of the
(a) receiver
(b) liquidator
(c) registrar of companies
(d) Government

2. Which of the following is not a method of trade restriction
(a) stock exchange
(b) import licence
(c) embargo
(d) quota

3. One of the catalogues is associated with
(a) hawkers
(b) mobile shops
(c) chain stores
(d) mail order business

4. A merchant wholesaler is one who
(a) takes title to the goods he sell
(b) does not own the goods he sell
(c) sometimes makes retail sales
(d) engages in merchandising

5. A trade deficit means that
(a) the balance of trade is favourable
(b) exports are less than important
(c) imports are less than exports
(d) exports are increasing

6. Who among the following is not a middleman
(a) retailer           (b) broker
(c) consumer       (d) wholesaler

7. A group of retailing shops under one management and selling the same products is known as
(a) mobile shop
(b) super market
(c) department store
(d) unit shop

8. Which of the following saves consumers the time and cost involved in travelling to commercial centres for shopping?
(a) department store
(b) supermarket
(c) mobile shop
(d) stall holder

9. Which of the following has the main objectives to differentiate between similar products from differentiate between similar products from different manufacturers
(a) branding         (b) display
(c) wrapping         (d) packaging

10. The most important function of the retailer is to
(a) sell goods on credit
(b) operate on weekends and public holidays
(c) make goods available in units
(d) buy from wholesalers

11. A trade agreement in which two countries exchange goods and services is known as
(a) export trade
(b) entreport trade
(c) multilateral trade
(d) bilateral trade

12. The provision of all kinds of services is related to
(a) tertiary production
(b) secondary production
(c) primary production
(d) construction

13. UTC, Kingsway stores and leventis stores are typical examples of
(a) unit shops
(d) department stores
(c) mobile shops
(d) hypermarket

14. A del credere agent is distinguished from other agent in that he
(a) is a partner in a trading firm
(b) works for his principal on commission basis
(c) usually guaranties payment in any transaction
(d) is a dealer on the stock exchange

15. Which of the following is common to both large and small firms
(a) lower running cost
(b) large capital
(c) opening on public holiday
(d) profit making

16. The minimum number of membership for a public limited company is
(a) two           (b) seven
(c) twenty       (d) fifty

17. Manufacturing ends when goods
(a) are advertised to the consumers
(b) are packed and labeled
(c) are sold in the market
(d) reach the final user

18. Which of the following functions is not performed by a small retailer
(a) selling in units to consumers
(b) financing producers
(c) buying from wholesalers
(d) selling goods on credit

19. The following factors must be considered before setting up a retail trade except
(a) capital       (b) experience
(c) location     (d) public relationship

20. A modern method of retailing whereby customers can make their purchase without the help of an assistant or cashier is called
(a) impulse buying
(b) self service
(c) automatic vending
(d) auction sales

21. Which of the following is not a basic want of man
(a) transport        (b) food
(c) shelter            (d) clothing

22. Which of the following comes last in the chain of distribution
(a) consumer       (b) retailer
(c) agent              (d) wholesaler

23. Which of the following is not an aid to trade
(a) transport         (b) banking
(c) production       (d) insurance

24. Which of the following is not a branch of production
(a) extraction
(b) distribution
(c) direct services
(d) consumption

25. Trade can be described as
(a) buying and selling
(b) production of goods
(c) storage of goods
(d) distribution of goods

26. A system in which people provide their own needs directly is known as ________ economy
(a) mixed               (b) subsistence
(c) sub-standard    (d) monetized

27. Departmental stores are usually located
(a) in suburban towns
(b) in low rental areas
(c) at city centers
(d) in areas free from traffic jam

28. Which document is issued by a public limited company when offering shares for sale
(a) proposal form     (b) quotation
(b) memorandum     (d) prospectus

29. A business whose membership ranges from 2-50 is
(a) private company
(b) public company
(c) partnership
(d) cooperative society

30. The reward of shareholding in a company is
(a) profit           (b) dividend
(c) interest        (d) bonus

31. In a limited partnership, the liability of most of the partners is
(a) unlimited        (b) pegged
(c) limited            (d) restricted

32. The rights, responsibilities and liability of each partner are specified in the
(a) prospectus
(b) articles of association
(c) deed of conveyance
(d) deed of partnership

33. Which of the following assigns a name to a product
(a) branding        (b) packaging
(c) copyright        (d) labeling

34. A person who sells goods belonging to another person in his own name and receives commission is a
(a) retailer      (b) sole trader
(c) factor        (d) merchant

35. The charge paid for failing to off-load a vehicle within a stipulated time is called
(a) freight      (b) demurrage
(c) fine           (d) fare

36. Foreign trade is also known as
(a) domestic trade
(b) entrepot trade
(c) export trade
(d) international trade

37. Speed is an important consideration for the choice of a means of transport where goods are
(a) perishable        (b) bulky
(c) inferior              (d) durable

38. The retailer operates from a stall while the wholesaler operates from a
(a) super market
(d) warehouse
(c) chain store
(d) mobile shop

39. Agents who link buyers with sellers receive
(a) factorage           (b) interest
(c) brokerage          (d) bonus

40. Which of the following is not a feature of supermarkets
(a) self service
(b) use of trolleys
(c) stocking many food items
(d) standard shop fronts

41. Retail outlets which sell from specialized vans are
(a) mobile shops
(b) supermarkets
(c) mail order firms
(d) departmental stores

42. An alternative term for ordinary shares is
(a) units trust
(b) equities
(c) bonus share
(d) right issues

43. The retail of goods through currency operated machine is known as
(a) party selling
(b) merchandising
(c) automatic vending
(d) impulse buying

44. Which of the following must any form of money possess in order to be generally acceptable
(a) divisibility        (b) mobility
(c) durability         (d) legality

45. Small unit shops continue to exist in spite of stiff competition by large stores because they
(a) maintain personal contact with their customers
(b) are located near large stores
(b) stock one line of goods
(d) employ traveling salesmen

46. Those involved in obtaining the gifts of nature from land and sea are engaged in
(a) constructive occupation
(b) extractive occupation
(c) commercial occupation
(d) direct services

47. A trade in which many countries exchange goods and services is called
(a) multilateral trade
(b) entrepot trade
(c) bilateral trade
(d) counter trade

48. Which of the following is not a source of capital to a public limited company
(a) equipment leasing
(b) dividend
(c) debentures
(d) trade credits

49. A group of retailing shops with standard shop fronts and centralized buying is known as
(a) mobile shop
(b) unit shops
(c) multiple stores
(d) supermarket

50. The difference between the total amount of money received by a country and the total amount paid to other countries with in a given period is the
(a) trade gap
(b) balance of trade
(c) balance of payment
(d) terms of trade

SECTION B: Essay

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

1.a. Explain any five large scale retail trade
1.b. state four features of a supermarket

2.a. state any six channels of distribution for consumers goods
2.b. Explain four factors to be considered before choosing a particular channel

3.a. Explain five services rendered by the wholesaler to the manufacturer
3.b. State four features of home trade

4.a. Describe four advantages of large scale retail trade
4.b. give six reason why small scale retail trade may fail

5.a. Explain four small scale retail trade
5.b. State four advantages and two disadvantages of hawking

6.a. Write short notes on the following:
i. Branding (ii) pre-packaging (iii) factor (iv) Del credere Agent (v) credit card.
6.b. Explain two factors considered in choosing a means of transport

7.a. Define foreign trade
7.b. Explain three advantages of foreign trade
7.c. Explain three instrument used by government to restrict trade

Read Also: Government Exam Questions for SS2 Third Term

Answers to Commerce Exam Questions for SS1 Third Term

Answers to Section A (Objective Test)

The following table gives the correct answers to the objective section of Commerce exam questions for SS1 Third 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 Commerce Exam Questions for SS1 Third 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)

1a. Explain any five large scale retail trade

1. Departmental Store: A large retail outlet divided into various departments, each specializing in a particular product line.
2. Multiple Shops: A group of shops under one management selling similar products in different locations.
3. Supermarket: A large self-service retail store that sells food and household goods.
4. Mail Order Business: Goods are ordered and delivered through the post without physical interaction.
5. Hypermarket: A combination of a supermarket and a department store under one roof, offering a wide variety of goods.

1b. State four features of a supermarket

1. Self-service shopping
2. Use of trolleys and baskets
3. Fixed prices and labeling
4. Large variety of goods under one roof

2a. State any six channels of distribution for consumer goods

1. Manufacturer → Consumer
2. Manufacturer → Retailer → Consumer
3. Manufacturer → Wholesaler → Consumer
4. Manufacturer → Wholesaler → Retailer → Consumer
5. Manufacturer → Agent → Consumer
6. Manufacturer → Agent → Retailer → Consumer

2b. Explain four factors to be considered before choosing a particular channel

1. Nature of the product: Perishable goods require short channels.
2. Cost of distribution: Firms choose cheaper and effective means.
3. Market size: Larger markets may need multiple intermediaries.
4. Storage facilities: Lack of storage may require use of wholesalers.

3a. Explain five services rendered by the wholesaler to the manufacturer

1. Helps in bulk purchases
2. Promotes products to retailers
3. Acts as a link to retailers
4. Provides feedback and market information
5. Bears the risk of unsold goods

3b. State four features of home trade

1. Trade within a country
2. Same currency used
3. Involves wholesale and retail
4. Same language and legal system

4a. Describe four advantages of large scale retail trade

1. Economies of scale
2. Variety of goods
3. Cheaper prices
4. Convenience to customers

4b. Give six reasons why small scale retail trade may fail

1. Inadequate capital
2. Poor management
3. Lack of advertisement
4. Poor location
5. Inability to compete with big stores
6. Inconsistent supply of goods

5a. Explain four small scale retail trade

1. Hawking: Selling goods by moving from place to place.
2. Kiosk: A small booth where goods are sold.
3. Mobile shops: Vans that sell goods in different locations.
4. Market traders: Sell at market stalls and open spaces.

5b. State four advantages and two disadvantages of hawking

Advantages:
1. Reaches remote customers
2. Offers convenience
3. Requires little capital
4. Promotes face-to-face sales

Disadvantages:
1. Exposure to harsh weather
2. Limited goods can be carried

6a. Write short notes on the following:

i. Branding: Giving a product a unique name or design for identification.
ii. Pre-packaging: Packaging products before display or sale.
iii. Factor: An agent who sells goods on behalf of the principal in his own name.
iv. Del credere Agent: An agent who guarantees the credit worthiness of buyers.
v. Credit card: A plastic card used to buy goods and services on credit.

6b. Explain two factors considered in choosing a means of transport

1. Nature of goods: Perishable goods need fast transport like air.
2. Cost of transport: Firms consider affordable options like road or rail.

7a. Define foreign trade

Foreign trade is the exchange of goods and services between countries.

7b. Explain three advantages of foreign trade

1. Encourages specialization
2. Access to goods not produced locally
3. Increases revenue through exports

7c. Explain three instruments used by government to restrict trade

1. Tariff: Tax on imported goods to make them more expensive.
2. Quota: Limiting the quantity of goods that can be imported.
3. Import License: Permit required before goods can be imported.

How to Pass Commerce Exam Questions for SS1 Third Term

Passing your Commerce exam questions for SS1 Third term requires a combination of preparation, understanding, and strategy. Here are actionable tips to help you excel:

1. Study the Syllabus

Start by reviewing all the topics covered during the term such as large scale retailing, channels of distribution, foreign trade, aids to trade, and types of business ownership. Ensure you understand each topic and how they relate to everyday business activities.

2. Master Key Terms and Definitions

Commerce has many important terms like wholesaler, agent, branding, foreign trade, etc. Make sure you know the meanings and can use them correctly in your exams.

3. Practice Objective and Essay Questions

Go through past questions and practice both multiple-choice and theory questions. This helps you get familiar with how questions are set and how to answer them correctly.

4. Use Diagrams and Real-life Examples

In your essay answers, use diagrams like distribution channels and real-life examples of supermarkets, departmental stores, and other business setups to score higher marks.

5. Manage Your Time During the Exam

Answer the easier questions first, then return to the more difficult ones. This ensures you attempt as many questions as possible within the given time.

6. Stay Focused and Avoid Cramming

Understand the concepts rather than cramming. Commerce is easier when you relate it to what happens around you in the business world.

Consistent study, regular revision, and confidence in yourself will help you pass your SS1 Commerce exam successfully. Start early and stay focused!

It’s a wrap!

If you need more clarification on SS1 Third Term Questions on Commerce, you can use the comments box below. We’ll be there to answer you asap.

Best wishes.