Commerce JAMB Past Questions And Answers (Objectives and Theory)
Section A: Multiple Choice Questions
What is the primary objective of commerce?
a) Profit maximization
b) Customer satisfaction
c) Wealth creation
d) Exchange of goods and services
Answer: d) Exchange of goods and services
Which of the following is NOT a function of commerce?
a) Production
b) Distribution
c) Consumption
d) Marketing
Answer: a) Production
What is the purpose of marketing in commerce?
a) To produce goods and services
b) To distribute goods and services
c) To promote and sell goods and services
d) To consume goods and services
Answer: c) To promote and sell goods and services
Which of the following is a feature of e-commerce?
a) Face-to-face transactions
b) Physical storefronts
c) Online transactions
d) Cash payments only
Answer: c) Online transactions
What is the primary function of a wholesaler in commerce?
a) Selling directly to consumers
b) Selling goods in small quantities
c) Buying goods in large quantities and selling them to retailers
d) Buying goods from manufacturers
Answer: c) Buying goods in large quantities and selling them to retailers
Which of the following is NOT a type of retail store?
a) Department store
b) Supermarket
c) Manufacturer
d) Convenience store
Answer: c) Manufacturer
What does the term “supply chain” refer to in commerce?
a) The flow of money in the economy
b) The flow of goods and services from producers to consumers
c) The flow of information between businesses
d) The flow of energy in the environment
Answer: b) The flow of goods and services from producers to consumers
What is the purpose of financial institutions in commerce?
a) To produce goods and services
b) To distribute goods and services
c) To facilitate financial transactions
d) To consume goods and services
Answer: c) To facilitate financial transactions
What does the term “import” refer to in commerce?
a) Selling goods and services to other countries
b) Buying goods and services from other countries
c) Selling goods and services within the same country
d) Buying goods and services within the same country
Answer: b) Buying goods and services from other countries
What is the primary purpose of trade agreements in commerce?
a) To increase tariffs
b) To reduce barriers to trade
c) To restrict imports
d) To promote monopolies
Answer: b) To reduce barriers to trade
Section B: Theory Questions
Define commerce and discuss its importance in the global economy.
Answer: Commerce refers to the exchange of goods and services between producers and consumers. It encompasses various activities such as buying, selling, distributing, and promoting goods and services. Commerce plays a crucial role in the global economy by facilitating economic transactions, promoting specialization and division of labor, fostering competition and innovation, and improving living standards. It connects producers and consumers across different regions and countries, allowing for the efficient allocation of resources and the expansion of markets. Commerce contributes to economic growth, job creation, and international trade, making it an essential driver of prosperity and development.
Explain the concept of e-commerce and discuss its advantages and challenges.
*Answer: E-commerce, or electronic commerce, refers to the buying and selling of goods and services over the internet or other electronic networks. It includes online retail stores, online marketplaces, electronic payments, and digital marketing. E-commerce offers several advantages, including:
Global reach: E-commerce allows businesses to reach customers worldwide, expanding their market reach and potential customer base.
Convenience: Customers can shop online anytime, anywhere, without the constraints of physical store hours or locations.
Cost-effectiveness: E-commerce reduces overhead costs associated with physical storefronts, such as rent, utilities, and staffing.
Personalization: E-commerce platforms can use customer data to personalize shopping experiences and offer targeted promotions.
However, e-commerce also presents challenges, such as cybersecurity risks, logistical complexities, competition from established retailers, and digital divide issues in access to technology and internet connectivity.*
Discuss the functions of marketing in commerce and its role in business success.
*Answer: Marketing plays a crucial role in commerce by performing various functions to promote and sell goods and services. Its key functions include:
Market research: Gathering and analyzing data about customers, competitors, and market trends to identify opportunities and challenges.
Product development: Creating and enhancing products or services to meet customer needs and preferences.
Pricing: Determining the optimal pricing strategy to maximize sales and profitability while remaining competitive.
Promotion: Communicating with customers through advertising, sales promotions, public relations, and other marketing channels to generate interest and demand.
Distribution: Developing and managing distribution channels to ensure products reach customers efficiently and effectively.
Customer relationship management: Building and maintaining relationships with customers to foster loyalty, repeat business, and positive word-of-mouth.
Effective marketing strategies are essential for business success as they help attract customers, generate revenue, differentiate products from competitors, and build brand awareness and reputation.*
Explain the concept of international trade and its significance in commerce.
*Answer: International trade refers to the exchange of goods and services between countries. It allows countries to specialize in the production of goods and services in which they have a comparative advantage and trade with other countries for goods and services they cannot produce efficiently. International trade has several benefits, including:
Increased market access: International trade expands market opportunities for businesses by allowing them to reach customers in foreign markets.
Economic growth: Trade stimulates economic growth by promoting specialization, productivity, and innovation, leading to higher levels of output and income.
Consumer choice: Trade provides consumers with a wider variety of goods and services at competitive prices, enhancing consumer welfare and satisfaction.
Foreign exchange: Trade facilitates the exchange of currencies between countries, supporting global financial transactions and investment flows.
Diplomatic relations: Trade fosters diplomatic relations and cooperation between countries, promoting peace, stability, and mutual prosperity.
However, international trade also presents challenges, such as trade barriers, protectionism, economic inequalities, and environmental concerns.*
Discuss the role of financial institutions in commerce and their impact on the economy.
*Answer: Financial institutions play a critical role in commerce by providing essential financial services and facilitating economic transactions. They include banks, credit unions, insurance companies, investment firms, and other financial intermediaries. The role of financial institutions in commerce includes:
Mobilizing savings: Financial institutions collect deposits from savers and channel them into loans and investments, supporting economic growth and development.
Providing credit: Financial institutions extend credit to businesses and individuals, enabling them to invest, expand, and purchase goods and services.
Facilitating payments: Financial institutions offer payment and transaction services such as checking accounts, credit cards, electronic transfers, and mobile payments, facilitating the exchange of goods and services.
