SS1 First Term Commerce Past Questions And Answers
Here they are;
Question: What is the primary function of commerce?
A) Manufacturing
B) Distribution
C) Agriculture
D) Construction
Answer: B) Distribution
Question: Which of the following is not a type of trade?
A) Retail trade
B) Barter trade
C) Direct trade
D) Political trade
Answer: D) Political trade
Question: What does the term “SME” stand for in the business world?
A) Small and Medium Enterprise
B) Sales and Marketing Evaluation
C) Systematic Monetary Exchange
D) Social Media Engagement
Answer: A) Small and Medium Enterprise
Question: In accounting, what does the term “debit” represent?
A) Increase in assets
B) Increase in liabilities
C) Decrease in assets
D) Decrease in equity
Answer: A) Increase in assets
Question: Which document serves as evidence of a transaction in business?
A) Invoice
B) Receipt
C) Voucher
D) Statement
Answer: A) Invoice
Question: What is the role of a central bank in an economy?
A) Regulating monetary policy
B) Conducting elections
C) Managing foreign affairs
D) Enforcing legal regulations
Answer: A) Regulating monetary policy
Question: What is the main purpose of advertising in business?
A) Increase production
B) Enhance brand awareness
C) Reduce costs
D) Monitor competitors
Answer: B) Enhance brand awareness
Question: Which economic system relies on supply and demand to determine prices and production levels?
A) Command economy
B) Traditional economy
C) Market economy
D) Mixed economy
Answer: C) Market economy
Question: What is the meaning of the term “profit” in business?
A) Total revenue minus total costs
B) Total revenue plus total costs
C) Total assets minus total liabilities
D) Total assets plus total equity
Answer: A) Total revenue minus total costs
Question: What is the purpose of a balance sheet in accounting?
A) Record daily transactions
B) Summarize income and expenses
C) Show financial position at a specific time
D) Calculate profit margins
Answer: C) Show financial position at a specific time
Question: Which business organization is owned and operated by a single individual?
A) Partnership
B) Corporation
C) Sole proprietorship
D) Cooperative
Answer: C) Sole proprietorship
Question: What is inflation in an economy?
A) Increase in the value of money
B) Decrease in the overall price level
C) Persistent rise in general price levels
D) Stability in the cost of living
Answer: C) Persistent rise in general price levels
Question: What does the acronym “WTO” stand for in the context of international trade?
A) World Trade Organization
B) Worldwide Textile Organization
C) Western Trade Operations
D) World Tourism Outlook
Answer: A) World Trade Organization
Question: Which financial statement reflects the profitability of a business over a specific period?
A) Balance sheet
B) Income statement
C) Cash flow statement
D) Statement of retained earnings
Answer: B) Income statement
Question: What is the purpose of market research in business?
A) Increase taxes
B) Understand customer needs
C) Reduce competition
D) Control inflation
Answer: B) Understand customer needs
Question: In the context of business ethics, what does CSR stand for?
A) Corporate Social Responsibility
B) Customer Service Relations
C) Competitive Sales Revenue
D) Cost Saving and Recycling
Answer: A) Corporate Social Responsibility
Question: What is the term for the money a business owes to its suppliers for goods and services?
A) Equity
B) Assets
C) Liabilities
D) Revenue
Answer: C) Liabilities
Question: Which type of market structure is characterized by a large number of sellers offering similar products?
A) Monopoly
B) Oligopoly
C) Monopolistic competition
D) Perfect competition
Answer: D) Perfect competition
Question: What is the purpose of a budget in financial management?
A) Increase debt
B) Control expenses
C) Maximize profits
D) Ignore financial planning
Answer: B) Control expenses
Question: Which economic indicator measures the average change in prices of a basket of goods and services over time?
A) GDP
B) Unemployment rate
C) Consumer Price Index (CPI)
D) Exchange rate
Answer: C) Consumer Price Index (CPI).
