ERC Business Studies 2022 Past Question

 

FCT/ERC/2022/BECE.

SUBJECT: BUSINESS STUDIES

DATE: JUNE, 2022.

TIME: 2½ HOURS.

 

SECTION A: OBJECTIVE 

INSTRUCTION: ANSWER ALL QUESTIONS FROM THIS SECTION.

1.       If Nigeria imports car from Germany and later exported it to Ghana, this trade activity is known as _____ trade   A. import  B. export  C. entreport  D. home

2.       In a school setting, the principal, vice principal, secretary makes up ______ department   A. administrative department   B. account  C. planning  D. personnel

3.       Which of these is a career opportunity in business studies?  A. law  B. medicine  C. engineering D. Trading

4.       Sanctions can be in the following ways EXCEPT   A. suspension from work  B. summary dismissal  C. deduction from salaries   D. regular payment of salaries

5.       _____ is NOT a function of clerical staff in an organization  A. receiving of mail  B. attending to customer enquiries  C. cleaning of office environment  D. typesetting of correspondence

6.       All are examples of extractive occupation EXCEPT   A. fishing  B. oil drilling  C. farming  D. carpentry

7.       A private limited liability company uses _____ after its name  A. Ltd   B. CCC   C. PSC   D. Plc.

8.       Public enterprises in Nigeria include the following EXCEPT   A. The Nigeria Railway Corporation (NRC)   B. African Independent Television (AIT)  C. Nigeria National Petroleum Corporation (NNPC)   D. Federal Radio Corporation of Nigeria (FRCN)

9.       The right way of sourcing for chemicals is from ____  A. licensed vendors  B. retailers  C. wholesaler   D. open market

10.   Which of the following factors of production is subject to the law of diminishing returns?   A. labour  B. capital   C. entrepreneur  D. land

11.   All bright parts of the typewriter should be cleaned after use with a clean   A. water  B. mob  C. duster   D. paper

12.   When the invoice is sent to the buyer, it is called   A. purchase invoice  B. sales invoice  C. buyer invoice  D. inventory

13.   The following are components of ledger EXCEPT  A. amount   B. date  C. particulars  D. net profit

14.   ____ keys are parts of the computer keyboard   A. alphabets   B. function   C. numeric  D. narrow

15.   The two major qualities of a book keeper are ____ and ____ qualities  A. important and principle   B. personal and impersonal   C. accurate and inaccurate   D. personal and job

16.   The following are auxiliaries to trade EXCEPT  A. advertising  B. banking  C. controlling  D. insurance

17.   Communication is important in business because it ___  A. create awareness in the minds of consumer  B. ensure that finished products are distributed  C. facilitated contact between buyers and sellers  D. makes movement of goods possible

18.   XYZ company started business with goods worth ₦15,500, bought goods worth ₦5,500 and ended the business with goods worth ₦10,000. Calculate the cost of the goods sold?   A. ₦11,000  B. ₦21,000   C. ₦5,500   D. ₦15,500

19.   The art of storing goods produced in a place until they are needed is called    A. communication  B. warehousing   C. storing   D. wealth  

20.   Which of these channels of distribution is suitable for an aircraft?  A. manufacturers – wholesaler – retailer – consumer   B. manufacturer – agent – wholesaler – consumer   C. agent – retailer – consumer  D. manufacturer – consumer

21.   Which of these is a document handled by a receptionist?  A. cover note  B. telephone message pad  C. debit note  D. attendance register

22.   The best means of passing information within is through ____  A. memorandum  B. report  C. television   D. telegram

23.   The highest financial institution in a country that carries out the monetary policies of the country is ____  A. commercial bank  B. central bank   C. merchant bank  D. mortgage bank

24.   Letters, parcels, magazines, incoming and outgoing mails of an organization are referred to as  A. office procedures  B. office correspondence  C. office inventors  D. office document

25.   An agreement between a bank and customers to withdraw above his/her account balance is ____  A. loan  B. overdraft  C. travelers’ cheque  D. promissory note

26.   Which of the following is not a type of insurance policy?  A. motor vehicle insurance   B. national vehicle insurance   C. National Health Insurance Scheme   D. First Party Insurance  

27.   ____ is a debit entry item in the double column cash book   A. cash sales   B. cash payment  C. cheque paid  D. wages paid

28.   In ledger entries, all cash receipts are to be   A. credited  B. debited  C. discounted  D. cancelled

29.   Marine insurance is compulsory for _____  A. ships and boats  B. buildings  C. motor vehicle  D. agricultural products

30.   A petty cash system is based on an imprest of ₦2,800 a month. If the petty cashier is left with a balance of ₦1,300. How much will he be reimbursed?  A. ₦1200  ₦1500  ₦1300   ₦600

31.   A business gives ____ to its customer them to buy more  A. cash   B. discount  C. interest  D. premium

32.   Who is in charge of a petty cash book?  A. bank manager   B. secretary  C. petty cashier   D. director

33.   The letter ‘C’ in a three-column cash book represent ______ entries   A. control  B. contra  C. cheque  D. cash

34.   An individual taking out an insurance policy pays an agreed amount of money monthly or quarterly called  A. premium   B. indemnity  C. pension fund   D. insurance allowance

35.   The abbreviation “NHIS” stands for _____  A. Nigeria Health Insurance Scheme   B. Natinal Health Insurance Scheme  C. New Health Insurance Scheme   D. Nominal Health Insurance Scheme

36.   The following are procedures for making payment EXCEPT  A. cash  B. voucher  C. bank transfer  D. cheque

37.   Advantage of using an ATM include ____  A. ATM service s yet to reach most rural parts of Nigeria  B. the amount of money that can be drawn from an ATM is limited    C. ATM has reduced the risks associated with carrying large amounts of cash to transact business   D. those who are illiterate may not be able to use ATM

38.   A _____ is a detailed account of all items of goods kept in a store  A. requisition record  B. stock taking  C. physical counting  D. store record

39.   The following are disadvantages of office equipment EXCEPT ____   A. their spare parts may not be readily available  B. they require regular servicing  C. they make work easier and faster  D. they are expensive to maintain

40.   _____ is used to hold papers firmly together as one piece  A. scanner  B. stapling machine  C. perforator   D. paper shredder

41.   Products and service are advertised on vehicles through the use of ____ A. journals  B. newspaper   C. loudspeaker   D. stickers

42.   An advantages of air transportation is   A. it is most suitable for carrying perishable and fragile goods  B it is very expensive   C. it cannot carry heavy machinery   D. it increases the overhead cost of a company

43.   The most suitable medium for demonstrating the use of product is   A. hand bill  B. poster  C. television  D. newspaper

44.   ____ is a cheque drawn by the bank on itself  A. bank draft   B. bank transfer  C. imprest payment   D. travelers draft

45.   Means used for water transportation include all EXCEPT  A. canoes  B. boats and ferries  C. bicycle   D. ship  

46.   Net profit is calculated as  ___  A. purchases – open stock   B. gross profit – expenses   C. opening stock – purchase  D. sales – cost of goods sold

47.   Which of the following include source of personal finance?  A. credit facilities from the supplier   B. stealing  C. selling one’s family members for money   D. borrowing from government

48.   The term “Caveat emptor” means  A. the producer expression   B. let the consumer be cheated C. let the producer be aware   D. let the buyer beware

49.   Assets of a company can be described as the ____ of the company  A. wealth  B. profit  C. losses  D. debit balance

50.   The gross profit or loss is determine in the  A. balance sheet   B. cash book  C. sales day book  D. trading account

51.   The income received by an individual from all source either for consumption or saving is   A. personal finance  B. hustling   C. personal activities   D. budgeting

Use the information extracted from the book of joy Okon to answer question 52 and 53

                                                       ₦

Carriage inwards                         1200

Returns outwards                         400

Sales                                           10500

Purchases                                    5800

52.   What is the total cost of goods sold?    A. ₦6,600   B. ₦5,800   C. ₦3,900   D. ₦7,000

53.   What is joy OKon’s gross profit?  A. ₦4,900   B. ₦3,900   C. ₦7,000   D. ₦5,700

Use the information below to answer question 54 and 55

                                                                      ₦

Capital                                                     108000

Furniture                                                   5000

Stock                                                         8200

Cash at hand                                              2000

Co-operative loan                                      6000

 

54.   Calculate the current assets?  A. ₦11,000   B. ₦10,200  C. ₦10,800   D. ₦7,000

55.   What is the value of the fixed asset?  A. ₦1300   B. ₦16000  C. ₦10,200   D. ₦5,000

56.   The following are types of heading EXCEPT  ____ heading   A. main   B. shoulder   C. paragraph  D. central

57.   _____ is the paper size used for long letters and reports   A. A4   B. A5  C. A6  D. A7

58.   _____ is NOT a proper keyboarding technique  A. sit up straight  B. arms near sides and wrists straight   C. fingers near home keys   D. right little finger on a space bar

59.   The correction sign ꓥ means ______  A. spell it out   B. insert a column   C. new paragraph  D. no space 

60.   _____ row is NOT a row on the keyboard   A. home  B. top  C. bottom  D. entire

 

SECTION B: ESSAY

Answer all the questions from this section

Cash book of Dominion Michael as at 2019 read as follows

CASH BOOK

DR	CR
₦	₦
Dec.1 capital                           150,000	Dec.4 purchases                        83,600
Dec.19 sales                             23,450	Dec.8 transport expenses.         1,200
Dec.20 sales                             29,100	Dec. 10 wages                           5,000
	Dec.31 Balance C/D                 112,750
202,550	202,550
Jan 1 Balance B/D                   112,750

 

1.       Enter the transactions above in the ledger, extract a trial balance

2.       a. Define the term “Market”.

b. List two types of market and explain anyone.

c. Define two career opportunities in the stock exchange market

3.       a. What is source document?

b. List four types of source document?

c. Explain 2 types of source document mentioned in (b) above

4.       Briefly explain the following types of advertising.

i. Information advertising

ii. Competitive advertising

b. State 2 functions of advertising in business