SS3 First Term Commerce Past Questions And Answers

 

Question: What is the primary purpose of insurance?

 

A) Profit generation

B) Risk mitigation

C) Market expansion

D) Tax reduction

Answer: B) Risk mitigation

Question: Which of the following is a characteristic of sole proprietorship?

 

A) Limited liability

B) Separate legal entity

C) Shared decision-making

D) Unlimited liability

Answer: D) Unlimited liability

Question: What does the term “e-commerce” stand for?

 

A) Electronic commerce

B) Efficient commerce

C) Exponential commerce

D) Emerging commerce

Answer: A) Electronic commerce

Question: In accounting, what does the acronym “VAT” stand for?

 

A) Value Added Tax

B) Variable Asset Transfer

C) Volatile Accounting Term

D) Vendor Assessment Tool

Answer: A) Value Added Tax

Question: Which function of management involves setting goals and determining the best way to achieve them?

 

A) Planning

B) Organizing

C) Directing

D) Controlling

Answer: A) Planning

Question: What is the purpose of a balance sheet in financial accounting?

 

A) Record daily transactions

B) Summarize revenues and expenses

C) Show the financial position of a business

D) Analyze market trends

Answer: C) Show the financial position of a business

Question: What is the function of a stock exchange?

 

A) Produce goods and services

B) Regulate taxes

C) Facilitate buying and selling of securities

D) Set interest rates

Answer: C) Facilitate buying and selling of securities

Question: What is the role of a central bank in a country’s economy?

 

A) Manage fiscal policy

B) Regulate stock markets

C) Control inflation and money supply

D) Set corporate tax rates

Answer: C) Control inflation and money supply

Question: What is the primary objective of advertising?

 

A) Increase product cost

B) Enhance brand loyalty

C) Reduce competition

D) Educate consumers

Answer: B) Enhance brand loyalty

Question: What is a trade union?

 

A) Organization promoting free trade

B) Group of business owners

C) Association of workers

D) Financial institution

Answer: C) Association of workers

Question: What does the term “Laissez-faire” in economics refer to?

 

A) Government intervention in the economy

B) Free-market capitalism with minimal government interference

C) Trade restrictions

D) Monopoly control

Answer: B) Free-market capitalism with minimal government interference

Question: What is the purpose of a feasibility study in business?

 

A) Assess the viability of a business idea

B) Monitor daily operations

C) Manage employee performance

D) Conduct market research

Answer: A) Assess the viability of a business idea

Question: In accounting, what is the formula for calculating net profit?

 

A) Revenue – Expenses

B) Assets – Liabilities

C) Revenue + Expenses

D) Assets + Liabilities

Answer: A) Revenue – Expenses

Question: What is the significance of a memorandum of association in company formation?

 

A) Outline company objectives and activities

B) Set daily work schedules

C) Determine employee salaries

D) Approve annual budgets

Answer: A) Outline company objectives and activities

Question: Which economic system is characterized by government ownership of major industries and resources?

 

A) Capitalism

B) Socialism

C) Communism

D) Mixed economy

Answer: C) Communism

Question: What is the primary purpose of a market survey?

 

A) Assess employee satisfaction

B) Evaluate product quality

C) Understand consumer needs and preferences

D) Monitor stock prices

Answer: C) Understand consumer needs and preferences

Question: What does the term “ROI” stand for in business?

 

A) Return on Investment

B) Risk of Inflation

C) Revenue Over Income

D) Rate of Interest

Answer: A) Return on Investment

Question: What is the role of the World Trade Organization (WTO) in global trade?

 

A) Promote fair competition and trade liberalization

B) Control national currencies

C) Provide financial aid to developing countries

D) Regulate commodity prices

Answer: A) Promote fair competition and trade liberalization

Question: What is the purpose of double-entry bookkeeping?

 

A) Record transactions using a single entry

B) Enhance financial reporting accuracy

C) Manage human resources

D) Calculate corporate taxes

Answer: B) Enhance financial reporting accuracy

Question: In international trade, what does the term “FTA” stand for?

 

A) Free Trade Agreement

B) Foreign Transaction Assessment

C) Fiscal Tariff Adjustment

D) Financial Trade Alliance

Answer: A) Free Trade Agreement.