JAMB Commerce Past Questions & Answers - Page 28

136.

An agreement that is enforceable in law is ________?

A.

a contract

B.

an offer

C.

an acceptance

D.

a consideration

Correct answer is A

A contract is an agreement or law binding the creation of business and enforceable in law.

137.

A bill of exchange already accepted can be discounted by the holder in ______?

A.

the central bank

B.

at least two banks

C.

his bank

D.

any bank

Correct answer is D

Is an unconditional written order from one person to another to pay a specified sum of money to a designated person.

138.

Which of the following legislation aims primarily at the protection of consumers?

A.

Law of contract

B.

Trade description Act

C.

Company's Act

D.

Partnership Act

Correct answer is B

This protects the consumers from false description of goods in terms of quality, quantity, size, place and date of manufacture

139.

A Major funtion of commerce is to

A.

facilitiate human satisfaction through exchange

B.

eliminate trade barriers

C.

provide raw materials for manufacturers

D.

influence government policies

Correct answer is A

Commerce provides the advantages of specialisation. It helps to better satisfy human wants by collecting and distributing goods. Commerce provides the necessary link between the producers and consumers of goods.

140.

One of the major reasons for merger is to

A.

reduce the number of unskilled manpower

B.

increase the number of skilled manpower

C.

prevent liquidation

D.

liberalize the market

Correct answer is C

Synergy: One of the main reasons why companies merge or acquire other companies is to create a synergy. Synergy is the concept that, the value of the combined companies will be greater than the joint value of the two individual companies. This will inturn prevent liquidation or folding up of a company