SS2 Second Term Commerce Past Questions And Answers
20 Senior Secondary School 2 Second Term Commerce Questions with options and answers:
Question: What is the main function of a stock exchange?
A) Issuing currency
B) Facilitating the buying and selling of securities
C) Collecting taxes
D) Controlling inflation
Answer: B) Facilitating the buying and selling of securities
Question: In business, what does the acronym VAT stand for?
A) Value Added Tax
B) Variable Allocation Technique
C) Voluntary Agreement Terms
D) Venture Assessment Tool
Answer: A) Value Added Tax
Question: What is a trademark in the business context?
A) A legal document
B) A unique symbol or name identifying a product or company
C) A financial statement
D) A type of currency
Answer: B) A unique symbol or name identifying a product or company
Question: Which financial statement shows a company’s profitability over a specific period?
A) Balance sheet
B) Cash flow statement
C) Income statement
D) Statement of retained earnings
Answer: C) Income statement
Question: What is the purpose of a business plan?
A) Minimize competition
B) Attract investors and guide business operations
C) Control interest rates
D) Facilitate international trade
Answer: B) Attract investors and guide business operations
Question: What is the role of a trade barrier in international trade?
A) Encourage free trade
B) Restrict or impede the flow of goods and services between countries
C) Promote cultural exchange
D) Facilitate negotiations
Answer: B) Restrict or impede the flow of goods and services between countries
Question: Which type of marketing strategy involves setting a low initial price for a new product to gain market share quickly?
A) Skimming pricing
B) Penetration pricing
C) Premium pricing
D) Cost-plus pricing
Answer: B) Penetration pricing
Question: What is the significance of e-commerce in modern business?
A) Reducing unemployment
B) Facilitating face-to-face transactions
C) Conducting business transactions online
D) Controlling inflation
Answer: C) Conducting business transactions online
Question: What does the term “SWOT analysis” stand for in business?
A) Strategic Weighing of Organizational Trends
B) Strengths, Weaknesses, Opportunities, Threats
C) Systematic Workflow and Operational Tactics
D) Sustainable Wealth and Organizational Testing
Answer: B) Strengths, Weaknesses, Opportunities, Threats
Question: What is the purpose of a letter of credit in international trade?
A) Guarantee payment to the seller
B) Set interest rates
C) Regulate commodity prices
D) Control inflation
Answer: A) Guarantee payment to the seller
Question: Which type of market research involves gathering new data for a specific research project?
A) Exploratory research
B) Descriptive research
C) Causal research
D) Primary research
Answer: D) Primary research
Question: What is the concept of elasticity in economics?
A) Measure of a firm’s profitability
B) Responsiveness of quantity demanded to a change in price
C) Control of inflation
D) Government intervention in business
Answer: B) Responsiveness of quantity demanded to a change in price
Question: What is the primary purpose of financial planning in business?
A) Controlling interest rates
B) Maximizing taxes
C) Ensuring the availability of funds for future activities
D) Facilitating international trade
Answer: C) Ensuring the availability of funds for future activities
Question: What does the term “outsourcing” mean in business?
A) Expanding business operations globally
B) Contracting out certain business functions to external providers
C) Minimizing competition
D) Controlling inflation
Answer: B) Contracting out certain business functions to external providers
Question: What is the purpose of a memorandum of association in the formation of a company?
A) Regulating commodity prices
B) Facilitating international trade
C) Defining the company’s constitution and objectives
D) Controlling inflation
Answer: C) Defining the company’s constitution and objectives
Question: In accounting, what does the term “depreciation” refer to?
A) Increase in the value of assets
B) Decrease in the value of assets over time
C) Control of interest rates
D) Government intervention in business
Answer: B) Decrease in the value of assets over time
Question: What is the purpose of a production budget in business?
A) Maximize profits for shareholders
B) Plan and control the production process
C) Facilitate international trade
D) Regulate commodity prices
Answer: B) Plan and control the production process
Question: What does the term “oligopoly” refer to in market structure?
A) Many sellers offering identical products
B) Single seller dominating the market
C) Few large sellers dominating the market
D) Perfect competition
Answer: C) Few large sellers dominating the market
Question: What is the significance of ethical business practices?
A) Maximize profits at any cost
B) Minimize competition
C) Build trust with stakeholders and maintain a positive reputation
D) Control inflation
Answer: C) Build trust with stakeholders and maintain a positive reputation
Question: In marketing, what is the purpose of segmentation?
A) Minimizing competition
B) Dividing the market into distinct groups based on characteristics
C) Controlling interest rates
D) Facilitating international trade
Answer: B) Dividing the market into distinct groups based on characteristics.
