JAMB Commerce Past Questions & Answers - Page 115

571.

An association to which all chambers of commerce in Nigeria are affiliated is the?

A.

Nigeria Labour Congress

B.

National Association of Chambers of commerce, industry, Mines and Agriculture

C.

Nigeria Association of Chambers of commerce, industry, Mines and Agriculture

D.

Nigeria Stock Exchange

Correct answer is C

Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture is an organization for all Nigerian state and related Chambers of Commerce of Nigeria. The organization's goal is to further the interests of businesses in the country.

572.

The pooling of business information for the benefit of members is a major function of a?

A.

pressure group

B.

trade association

C.

cultural group

D.

trade union

Correct answer is B

A trade association is a business association founded and funded by businesses that operate in a specific industry for the benefit of its members and to to promote their common interests.

573.

A crossed cheque with the inscription 'not negotiable' must be paid into the?

A.

current account of the drawer

B.

current account of the payee

C.

savings account of the payee

D.

fixed account of the payee

Correct answer is B

To answer this question we need to understand the three parties to a cheque.

The drawer: The drawer is the bank account owner whose signature appears on the cheque.

The drawee: The drawee of a check is the banker/bank.

The payee: The payee is the person who receives money from the bank. He is the party in favor of whom the cheque is issued.

A crossed cheque is a cheque that can only be paid into the bank account of the payee, and cannot be cashed directly at the counter of the bank. The effect of crossing a cheque ‘not negotiable’ is to warn the transferee (the payee in this case) that his or her title is subject to all prior defects in the title. Since cheques are only issued to current account holders it's safe to say that the money will have to be paid to the current account of the payee

574.

When 'FOB' is written on a document, it implies that the buyer bears the?

A.

cost of goods and advert

B.

loading costs and insurance

C.

insurance and transport costs

D.

transport and communication costs

Correct answer is C

Free on Board (FOB) is a shipment term used to indicate whether the seller or the buyer is responsible for goods that are damaged or destroyed during shipping. In this instance, it means that the buyer is liable for the insurance and transportation of the goods while on transit

575.

A document sent by a seller to inform a buyer about the prices of goods is the?

A.

catalogue

B.

price list

C.

credit note

D.

proforma invoice

Correct answer is B

A price list is simply a list giving the prices of items for sale.