NABTEB GCE Commerce Questions and Answers – 2019 NABTEB GCE Expo

National Examination Council, NABTEB GCE Commerce Questions and Answers for 2019 NABTEB GCE Examination is now available, subscribe now and get the questions and already solved answers by Examrelief.
NABTEB GCE Commerce Questions and Answers








(i)Order cheque:Order cheque is made payable to a person or firm named on it,or an order which requires the endorsement of the payee unless he pays it into his own bank account.A cheque that is drawn payable to payee or to order can only be cashed by the payee. The payee can endorse it to another person and this turns it into a bearer cheque.

(ii)Bearer cheque: Bearer cheque is payable to the bearer,ie whoever present it.The bearer cheque is payable without any edorsement. it can be cashed over the counter without having to be endorsed by the person presenting it

(iii)Open cheque:Open cheque can be presented and cashed over the counter of the bank which it is drawn .open cheque is not crossed. It is used for drawing cash from the bank paying the creditors who have no current account. This is risky because it can be paid to a wrong person.

(iv)Crossed cheque:This is a cheque having two parallel lines drawn across its face. Crossed cheque cannot be cashed at the counter ;it must be paid into a current account. Some words may vr written between the parallel lines eg “& Co” or “Non negotiable”.This helps to present fraudulent practices

(v)stale cheque:stale cheque is the type of cheque which has been in circulation for an unreasonably long period of time ,hence the date of presentation for payment has expired. The bank will refuse to honour a cheque that is more than six months old because it is considered expired.

{Choose Any five}
(i)Insufficient fund:A cheque can be dishonoured for lack of sufficient fund in the account.
(ii)irregular signature:A cheque will not be honoured if the signature is not regular.
(iii)Difference in figures and words:If the figure and the words on the cheque do not agree,the cheque will be rejected.
(iv)No date:A cheque can be dishourned if there is no date on it
(v)Bankruptcy: If the bank receives notice of default of drawer, they will reject the cheque.
(vi)mutilation of cheque: when the cheque is mutilated ,it will be dishonoured.
(vii)stale cheque:A cheque that has expired wil be dishonoured.

(i) The business is owned by shakeholders who may be between two and fifty persons in number
(ii) The capital required to set up and ran the business is provided by the shareholders in form of shares
(iii) The business is a seperate legal entity and is different from the owners of the business.
(iv) There is continuity of business operations as thr withdrawal or death of a shareholder may not affect the existence of thr company
(iv) Shares are not easily transferable:Shares cannot be resold to other persons except with the consebt of other shareholders.
(v) The private limited company is managed by a board of directors appointed by shareholders.

{Choose Any Five}
(i) Loans and overdraft:Joint stock company can obtain loans and overdraft from commercial or developing banks
(ii) Sales of shares: A joint stock company can also raise capital by issuing shares for public subscription
(iii) sales of debentures: These are long laons obtained from the general public at a fixed interest
(iv) Bill of exchange: This is a document duky signed by the debtors bank to the creditor and the creditor cashes the money with some discounts.
(v) Equipment leasing : Public limites liability companies can kease out some of their equipment for money.
(vi) Hire purchase: Facilities can be granted to the company to buy and pay by instalments.
(vii) Retained(plough back)profits:The profits made by the company can be set aside for re-investment.

Stock exchange market is a highly organised market where investors can buy and sell existing securities like shares,stocks,debentures and gilt edge etc.This is a market where those who are interested in purchase of securities are brought into contract with the sellers.

(i) Shares can be defined as an individual portion of the company’s capital owned by shareholders
(ii) stock can defined as the bundle of share or mass of capital which can be transferred in fractional amount.
(iii) A bond is a security issued by the government or its agency or private institution as a means of raising fund
(iv) Gilt-edged is a security issued by the government;it has a fixed rate of interest.

(Choose Any Four)
(i)Fund mobilisation: Through the stock exchange market which is a part of the capital market,fund or capital can be raised or mobilised by companies and investors.

(ii) it facilitates the transfer of shares:stock exchange facilitates the transfer of ownership of shares between investors .investors who want to withdraw from one company to another can do so without any hindrance.

(iii) Provision of rules and regulation:The market is charged with the responsibility of providing rules and regulations that will ensure smooth operation on the floor of the stock market

(iv) Encourages companies to be more Efficient:The stock exchange market ensures that companies quoted in the exchange have good reputation;This will gear up companies to perform well so that they can be listed.

(v) Provision of professional Advice:The stock exchange market provides professional advice to investors on sales and management of securities.

(i) Informative Advertising
(ii) Persuasive Advertising
(iii) Competitive Advertising
(iv) Mass and specific Advertising

(i)Informative Advertising: This is a kind of advertising information that will let consumers know what goods and services are available. Informative advertising informs the public about the existence of a product.

(ii)Persuasive Advertising : This is a type of advertising which tries to persuade customers to buy a particular brand of a product as being different from other brands. Persuasive advertising ,which is emotional in nature,is used to induce or arouse consumers”interest inorder to persuade them to buy a particular product.

(iii)competitive Advertising :This is a type of advertising which is aimed at persuading customers to buy one brand of product in preference to another brand by another producer. It tries to woo customers to consume a product at the expense of another.

(iv)Mass and specific Advertising:This is a type of advertising in which manufacturers of similar products or same commodity come together to jointly advertise their products to the consuming public. They will not lay emphasis on or mention a prticular product brand.

{Choose Any Thres}
(i)The press(newspaper,magazines/journals and book)
(v)Direct mail advertising

(i)Fixed capital
(ii)Circulatory or working capital
(iii)Current or liguid capital
(iv)Social capital

(i)Fixed capital: These are assets which are not used up in the course of production. Fixed assets include those durable assets of a business that can last for a very long time.Example of fixed capital are land,buildings,tools,motor vehicles ,plant and machinery

(ii)Circulatory or working capital: These are assets which are used up in the course of production. These consist of capital goods which either change their form or are used up in the process of production. Examples of working capital are raw materials ,water and fuel

(iii)Current or liquid capital : Current capital are type of capital that are required for the day to day running of prodictive activities.They are also changed from one form to another. Examples are finished goods and money.

(iv)Social capital :This includes those forms of capital or assets provided by the government to aid production . Examples of social capital are amenities provided by the government such as roads,electricity ,water and telephones.These amenities ,when they are readily available ,aid the process of production.

(Choose Any Three)
(i)Goodwill and reputation of the seller
(ii)Advertising,publicity and sales promotion
(iii)Nearness of the business to consumers.
(iv)constant availability of goods
(v)Reduction in prices of goods.
(vi)Increase in the quantity of goods sold
(vii)The variety of goods sold by the seller

{Choose Any Five}
(i) Bulk breaking : The wholesaler purchase goods in bulk or large quantity from the manufacturer and sells in small quantities to the retailers

(ii) Information dissemination: The wholesaler provide the neccessary information to the manufacturer regarding the retailers ’ and consumer’ views about the products. The views may concern changes in taste,fashion and defects

(iii) BAdvertising:The wholesaler helps in carrying out product advertising and sales promotions and by so doing create awareness for the product

(iv) warehousing: The wholesaler provide warehousing facilities to get rid of stock-piling at the production point.Goods are stored here until they are brought ,hence it spurs the manufacturers to keep on producing.

(v) Provision of variety of goods: The wholesaler enables the retailers to stock variety of goods ,which they purchase from different manufacturers

(vi) To advise the retailer: He can advise the retailer as a result of his expert knowledge of the goods.He can inform him about new developments in the market.

(vii)Financing :They finance production by ensuring prompt payment to the manufacturer and this will facilitate production processes.

Large scale retailers:
{choose Any Three}
(i)Departmental stores
(iii)Vanety shores
(iv)Discount house

Small scale retailers:
{choose Any Two}
(ii)mobiles shopes
(iii)market traders or stall holder
(iv)unit shores/tied shops


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