WAEC Commerce Past Questions & Answers - Page 24

116.

The abbreviation E & O.E. on an invoice seeks to

A.

draw the attention of the buyer to the contents of the document

B.

show that there is no error about price quoted on the invoice

C.

protect the seller against any error on the document

D.

draw the attention of the seller to the contents of the document

Correct answer is C

This is an abbreviation for "errors and omissions excepted," a disclaimer stating that information in a document is not necessarily accurate. It is used to say that a price list, product description, or other document may contain mistakes or may not include some details

117.

Industrial occupation does not involve the

A.

growing and extraction of raw materials

B.

use of machinery

C.

construction and manufacturing of goods

D.

movement of people and goods

Correct answer is D

Industrial Occupation: This involves those who engage in the physical production of goods or changing of raw materials into finished or semi-finished goods or products. 

118.

The size of of profit of a business is measured by the

A.

closing stock

B.

opening stock

C.

total purchases

D.

rate of turnover

Correct answer is D

Rate of turnover: Is the number of times a firm sells out its merchandise or finished goods inventory

119.

Mr Lou who assured his life with XYZ Assurance Company, was involved in an accident and had a broken leg; the sum of #80,000 was paid to Mr Lou for his broken leg. The money received is known as

A.

compensation

B.

commission

C.

premium

D.

indemnity

Correct answer is D

Indemnity insurance is a contractual agreement in which one party guarantees compensation for actual or potential losses or damages sustained by another party. Mr Lou was indemnify at the tone of N80,000

120.

Which of the following arrangement of documents is the correct sequence as used in the retail trade? i. Quotation ii. Enquiry iii.Order iv Invoice

A.

i,ii,iii,iv

B.

ii,i,iii,iv

C.

i,iv,iii only

D.

i,iii,iv only

Correct answer is B

The sequence goes thus; enquiry => quotation => order => invoice 

A buyer sends an enquiry to the seller asking about the goods he wants to purchase

The seller send the buyer a quotation containing products description, prices etc

The buyer then places an order

The seller sends an invoice to the buyer as prove of a business transaction