ERC Business Studies 2020 Past Question

 

FCT/ERC/2020/BECE.

SUBJECT: BUSINESS STUDIES

DATE: JUNE, 2020.

TIME: 2½ HOURS.

SECTION A: ESSAY  

INSTRUCTION: ANSWER ALL QUESTIONS FROM THIS SECTION.

1.    The person who completes the process of production is called ____. A. Consumer.  B. Customer. C. Producer. D. Wholesaler

2.    The following are government agencies responsible for the protection of consumers Except _____. A. Investment promotion council.  B. Price control board. C. Rent tribunal.   D. Standard Organization of Nigeria

3.    A written document that described in details how a new business is going to achieve its goals is called business _____. A. Idea.  B. Opportunity.  C. Plan. D. Survey

4.    An expression of dissatisfaction which is oral or written can be termed ______.  A. Complaint.  B. Bad expression.  C. Quarreling.  D. Information

5.    The following are aids to trade except. A. Banking.  B. Mobile phone.   C. Telegram.  D. Satellite

6.    The easiest and the quickest means of interacting with people within and outside the country is through ____

7.    The art of using the typewriter to produce characters on paper is called ____ A. Analyzing.  B. Keyboarding.  C. Processing.  D. Programming

8.    Purchases in accounting refer to goods bought for ____. A. Decoration of staff office.  B. Repairs.  C. Resale.  D. Permanent use

9.    Turnover is another name for ____. A. Expenses.  B. Profit.  C. Purchases.  D. Sales

10. The following are functions performed in the office except ____ information. A. Processing.  B. Preventing.  C. Recording.  D. Receiving

11. A good clerical staff should not be. A. Clean. B. Saucy. C. Confident.  D. Polite

12. An office equipment used for creating holes neatly on papers for filing is called ____ A. Perforator.  B. Stapler.  C. Photocopy.  D. Guillotine

13. Safe keeping of customers’ valuables is common with ___ bank. A. Agricultural.  B. Central.  C. Commercial.  D. Merchant

Use the following information to answer question 14 – 15

Capital                       5,000

Cash in hand             1,400

Stock                          300

Creditor                      1,600

Furniture                   2,000

Bank                           1,500

Debtor                        500

Machinery                 3,200

14. Calculate the total fixed asset A. ₦5,600.  B. ₦5,200.  C. ₦5,000. D. ₦2,000

15. Calculate the current asset. A. ₦2,900.  B. ₦4,500.  C. ₦4,000.  D. ₦3,400

16. The principal office is an example of _____ office. A. Large. B. Small. C. Mail room.  D. Staff

17. The insured in an insurance business is the ___  A. Insurance company.  B. Holder of the insurance policy.   C. Risk giver.  D. Agent of the insured

18. Big keyboard is a type of ____ device that enables a user to enter into the computer.  A. Hardware.  B. Input.  C. Output. D. Software

19. Import trade means ____. A. Buying goods from other countries.  B. Buying goods from one's own country. C. Selling goods to other countries.   D. Selling goods within ones own country

20. First Bank of Nigeria Plc is an example of ___. A. Commercial bank.  B. Central bank.  C. Mortgage bank.  D. Co-operative societies

21. The reward for entrepreneur is ____. A. Rent.  B. Profit.  C. Wage.  D. Interest

22. The fastest means of sending verbal messages is by.  A. E-mail.  B. Telephone.  C. Telegram. D. Facsimile.

23. Which of these is not true of a sole proprietorship business?  A. There is continuity.  B. Easy to form.   C. Takes all decision.  D. Enjoy all profit

24. A regular buyer of a product is called _____. A. Customer.  B. Producer.  C. Buyer.   D. Consumer

25. The insurance principles which requires all information provided to be correct is____. A. Utmost good faith.  B. Subrogation.  C. Policy. D. Indemnity

26. The asset of organization that are of a more permanent nature used in business production are called ____. A. Fixed asset.  B. Current asset. C. Liabilities.  D. Depreciation

27. A place where goods are kept until they will be distributed is called ___. A. Warehouse.  B. Bank. C. Market. D. Shop

28. _____ is one of the career opportunities in business studies.  A. Agriculture.  B. Engineering.  C. Entrepreneurship.  D. Pharmacy

29. Who is a clerical staff? A. A manager.  B. Someone who perform office duties.  C. An office cleaner.  D. A tailor

30. Which of these is referred to as a legal tender? A. Cheque.  B. Bank draft.  C. ATM card.  D. Bank notes

31. A good example of adding machine is ___.  A. Computer.  B. Typewriter. C. Calculator. D. Shredder

32. The acronym WWW stands for ____. A. Word Wide Web.  B. Wide Web World.  C. World Wide Web. D. Web World Web

33. A business is able to cover the risks of its business transaction through ____ A. Insurance.  B. Communication. C. Banking. D. Advertising

34. The following are components of communication except ____  A. Sender. Interpreter. C. Receiver.  D. Message

35. Congestions and hold-ups that bring about delay in transportation is in ___ transport.   A. Air. B. Rail.  C. Water.  D. Road

36. SWOT analysis is a laid out plan designed to identify the ____ involved in setting up a business venture.   A. Success, weakness, organizations and technique.   B. Strength, weakness, opportunities and threats.  C. Strength, weakness, orientation and technique.   D. Stress, weakness, opportunities and technique

37. A detailed account of all items of goods kept in a store is called ____. A. Store record.  B. Requisition record.  C. Gate pass.   D. Requisition form

38. Mrs. Ezurike sets aside a sum of #100,000 for business purposes, this amount is referred to as_____.  A. Drawing.  B. Capital.  C. Loan.  D. Profit

39. “DR” in a ledger stands for ___.  A. Debit.  B. Debtor.  C. Discount.  D. Disallowed

40. Obtaining crude oil for refining is an example of _____ occupation.   A. Constructive.  B. Extractive.   C. Manufacturing.  D. Service

41. Goods costing. #12,000 are sold for #20,000 and #4,500 is spent on selling expenses, what is the net profit?  A. #3,500.  B. 12,000.   C. 16,000. D. #8,000

42. All activities of human efforts directed towards the satisfaction of human wants is known as ______. A. Commerce.  B. Satisfaction.  C. Production.  D. Creation

43. The reason for engagement in a business is to make _____. A. Friends. B. Loss. C. Profit. D. Energy

44. The top movable part of a typewriter is called _____. A. Cylinder.  B. Knobs.  C. Carriage.  D. Shift keys

45. The two classes of account are personal and ____. A. Real account.  B. Hormonal account.  C. Impersonal account.  D. Interest account

46. To prevent damage to the cylinder of the typewriter, a paper called ____ is used.  A. Flimsy paper.  B.  cartoon paper.  C. Backing sheet.  D. Carbon paper

47. The amount of money paid by government to someone who is considered too old to work is known as _____. A. Pension.  B. Salary.  C. Pay-off.  D. Wage

48. Cost of goods sold is _____.  A. Closing stock + purchases – opening stock.   B. Expenses+ purchases – opening stock.  C. Opening stock + purchases – closing stock.  D. Total sale – cost of good stock

49. What is the full meaning of the abbreviation TAP?  A. Transparency, accountability and probity.   B. Transparency, accountability and productivity. C. Transparency, accountability and proximity.  D. Transparency, accuracy and probity

50. An officer who goes to the office on time is said to be ____ A. Faithful. B. Obedient.  C. Punctual.  D. Regular

51. Which of the following is a reward for being devoted to duty?   A. Demotion.  B. Query.  C. Promotion.  D. Suspension

52. The sum total of keys on the computer is known as ____. A. Keyboard.  B. Monitor.  C. Mouse.  D. System

53. The department that is responsible for changing raw materials into finished goods is called ____ department   A. Finance.  B. Marketing.  C. Production. D. Transport

54. Which of the following is not part of the computer?  A. CPU.  B. Knob.   C. Monitor.  D. Mouse

55. Which of the following is not a component of business studies?  A. Bookkeeping.  B. Commerce.  C. Keyboarding.  D. Salesmanship

56. The amount of goods a firm has at the beginning of a trading period is called.  A. Closing stock.  B. Gross profit.  C. Net profit.  D. Opening stock

57. The filling of letters according to their places of origin or destination is termed filing ____. A. Chronological.   B. Numerical.  C. Geographical.   D. Alphabetical

58. _____ is the coming together of people for the purpose of trade, purchase or sale of goods and services. A. School. B. Market. C. Church.  D. Industry

59. The abbreviation “MTG” means _____. A. Meeting.  B. Mean time.  C. Meant.  D. Meaty

60. When a consumer is allowed by the seller to take or test the product before paying for it, it is called _____. A. Credit buying. B. Buying by description.  C. Buying by sample.   D. Buying by inspection

Section B: Essay

Instruction: Answer all questions from this section

1.    Enter the following transactions in the cash booth of Brogbenda Nguliyan for the month of January 2019

 Jan 1:            Started the retail business with $200,000 cash

Jan 6:             Bought goods worth 40,000 by cash

Jan 7:             Received $10,000 cash in respect of sales

Jan 11:           Paid the following expenses in Cash: stamps #200, diesel #1,700

Jan 13:           Paid cash #5,000 to Alison

Jan 16:           Bought a motorcycle by cash #75,000

Jan 18:           Received a cash loan of #50,000 from Joy Idakwo

Jan 24:           Bought goods worth #7,000 by cash

Jan 30:           Paid salaries of sales personnel #20.000

2.     a. Define production

b. List four factors of production

c. Explain any two factors of production listed in (b) above

3.    a. Differentiate between stock and stock taking

b. Mention three types of store record

c. State two importance of stock taking

4.    a. Define the following terminologies. (i). Trial balance. (ii). Asset. (iii). Liabilities. (iv). Net profit  (v). Closing stock.

b.    Mention four components of business studies