Commerce Questions and Answers
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
Which of the following describes the reason for international trade
Balance of payment
Comparative cost advantage
Absolute cost advantage
Balance of trade
Correct answer is B
Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners. Countries mainly enter into international trade to buy goods and services that they would normally produce at a higher cost compared to buying it from another country that is producing it a relatively low cost
If a businessman wants to insure against dishonesty of the cashier, he will take
burglary policy
an employer's liability cover
a fidelity guarantee cover
a consequential loss policy
Correct answer is C
Fidelity Guarantee insurance; This is cover which protects your organisation against the loss of money and/or property which you may suffer as a result of a dishonest or fraudulent act by an employee or volunteer.
Which of the following can quote its shares on the stock exchange
Partnership
Sole-proprietorship
Co-operative society
Public limited company
Correct answer is D
Public limited company; is a company whose securities are traded on a stock exchange and can be bought and sold by anyone.
A bonded warehouse is a place for keeping
contraband goods
dutiable goods
tax free goods
smuggled goods
Correct answer is B
Bonded warehouse; is a customs-controlled warehouse for the retention of imported goods until the duty owed is paid.
The cost of advertising is ultimately borne by the
manufacturer
consumer
wholesaler
retailer
Correct answer is B
The cost of advertising a product is one of the indirect costs that is included in the sale price of a product. The consumer indirectly pays for advertisement.