WAEC Commerce Past Questions & Answers - Page 31

151.

Which of the following is classified as invisible item in balance of payment?

A.

import of goods

B.

Salaries of expartriates

C.

Export of groundnuts

D.

Sale of equipment

Correct answer is B

The invisible balance or balance of trade on services is that part of the balance of trade that refers to services and other products that do not result in the transfer of physical objects. Examples include consulting services, shipping services, tourism, salaries of expatriates and patent license revenues.

152.

Buildings and machinery used in the running of a business are examples of

A.

current assets

B.

intangible assets

C.

liquid assets

D.

fixed assets

Correct answer is D

Fixed assets are assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment.

153.

When an insurance policy is declared void because of a false declaration ; the principle involved is

A.

indemnity

B.

subrogation

C.

proximate cause

D.

utmost good faith

Correct answer is D

 The doctrine of utmost good faith is a principle used in insurance contracts, legally obliging all parties to act honestly and not mislead or withhold  important information while entering the contract

154.

Those who are engaged in the distribution of goods belong to

A.

commercial occupation

B.

extractive industry

C.

manufacturing industry

D.

construction industry

Correct answer is A

Commercial Occupation: This refers to all the people involved in the distribution and exchange of goods produced by the industrial sector. Examples of commercial workers are: bankers, transporters, insurers, traders, etc.

155.

A voluntary body formed by people in the same line of business for the purpose of protecting their interest is a

A.

trade association

B.

trade union

C.

chamber of commerce

D.

trading partnership

Correct answer is A

Trade association is an association of people or companies in a particular business or trade, organized to promote their common interests.