WAEC Commerce Past Questions & Answers - Page 28

136.

One of the principles of insurance is

A.

consequential loss

B.

fidelity guarantee

C.

proximate cause

D.

surrender value

Correct answer is C

Proximate cause is an insurance principle that refers to the first event, or first peril, in a series of events that cause damage in an insurance claim.

137.

Which of the following is not an economic grouping

A.

Lake Chad Basin Commission

B.

Economic Community of West African States

C.

European Union

D.

International Monetary Fund

Correct answer is A

Economic grouping is an organization that encourages economic cooperation among its member countries. The The Lake Chad Basin Commission is not an economic grouping. 

The Lake Chad Basin Commission is an intergovernmental organization that oversees water and other natural resource usage in the basin.

138.

The document issued by the registrar of companies to permit a public limited company to commence business is

A.

Memorandum of Association

B.

Certificate of Incorporation

C.

Article of Association

D.

Trading certificate

Correct answer is B

A certificate of incorporation is a legal document/license relating to the formation of a company or corporation. It is a license to form a corporation issued by state government or, in some jurisdictions, by non-governmental entity/corporation.

139.

Which of the following is concerned with promoting favorable image of an organization?

A.

Consumer soveriegnty

B.

Public relations

C.

Marketing research

D.

Marketing segmentation

Correct answer is B

Public relations; the professional maintenance of a favourable public image by a company or other organization or a famous person.

140.

Bonded warehouse is a place where

A.

duty free goods are kept

B.

perishable goods are kept

C.

home-made goods are kept

D.

dutiable goods are kept

Correct answer is D

Bonded warehouse is a customs-controlled warehouse for the retention of imported goods until the duty owed is paid.