Examination on Business Studies
Class: JSS 2
Term: First Term
Time: 1 Hour
Total Marks: 70

SECTION A: OBJECTIVES (40 Marks)
Instruction: Answer all questions.

1. ________ refers to the activities that facilitate the exchange of goods and services. (a) Trade (b) Aids to trade (c) Commerce (d) Marketing
2. An example of a means of water transportation is ________. (a) Train (b) Aeroplane (c) Ship (d) Lorry
3. The main reason for advertising is to ________. (a) Reduce sales (b) Inform and persuade customers (c) Increase production costs (d) Discourage competition
4. Which of the following is NOT a type of bank? (a) Central bank (b) Commercial bank (c) Development bank (d) Personal bank
5. All of these are qualities of a good receptionist except ________. (a) Friendliness (b) Rudeness (c) Patience (d) Good communication
6. The document used to acknowledge payment for goods or services is a ________. (a) Invoice (b) Receipt (c) Quotation (d) Debit note
7. Which of the following describes the movement of goods from the producer to the final consumer? (a) Production (b) Distribution (c) Consumption (d) Storage
8. A formal request for goods from a supplier is known as an ________. (a) Inquiry letter (b) Order letter (c) Credit note (d) Debit note
9. The ________ market deals with long-term funds for investment. (a) Money (b) Commodity (c) Capital (d) Retail
10. Which is NOT a function of a warehouse? (a) Storage of goods (b) Price stabilization (c) Direct selling to consumers (d) Risk bearing
11. ________ is a means of communication that allows for instant feedback. (a) Newspaper (b) Radio (c) Telephone (d) Television
12. The act of buying goods with the intention of selling them for profit is called ________. (a) Selling (b) Trading (c) Retailing (d) Wholesaling
13. Which of these is not a sales document? (a) Invoice (b) Receipt (c) Balance Sheet (d) Proforma invoice
14. The main function of a Central Bank is to ________. (a) Lend money to individuals (b) Control the nation’s money supply (c) Provide loans for development projects (d) Insure businesses
15. Which of the following is a tourism centre in Nigeria? (a) Aso Rock (b) River Niger (c) Zuma Rock (d) Third Mainland Bridge
16. The correct step in handling visitors is to ________. (a) Ignore them (b) Ask them to wait indefinitely (c) Greet them politely (d) Direct them to the wrong office
17. A document sent to a customer to correct an overcharge on an invoice is a ________. (a) Debit note (b) Credit note (c) Receipt (d) Quotation
18. An example of a career opportunity in the stock exchange market is a ________. (a) Farmer (b) Broker (c) Tailor (d) Driver
19. All of these are types of insurance policies except ________. (a) Fire insurance (b) Life insurance (c) Car insurance (d) Food insurance
20. The difference between selling price and cost of goods sold is called ________. (a) Net profit (b) Gross profit (c) Turnover (d) Mark-up
21. ________ is the process of making products or services known to the public and persuading them to buy. (a) Communication (b) Marketing (c) Advertisement (d) Distribution
22. The document used by a seller to request payment for goods supplied on credit is an ________. (a) Invoice (b) Receipt (c) Order letter (d) Proforma invoice
23. Which of the following is a disadvantage of credit sales? (a) Increased sales (b) Risk of bad debts (c) Customer loyalty (d) More profit
24. A person who buys goods in large quantities from producers and sells them in smaller quantities to retailers is a ________. (a) Retailer (b) Consumer (c) Wholesaler (d) Producer
25. The ________ is the first point of contact for visitors to an organization. (a) Manager (b) Secretary (c) Receptionist (d) Accountant
26. Which is NOT a means of advertisement? (a) Radio (b) Television (c) Letter of inquiry (d) Newspaper
27. The main purpose of an open indent is to ________. (a) Specify the exact goods to be purchased (b) Allow the agent to use their discretion in purchasing (c) Cancel an order (d) Request for a quotation
28. All of these are aids to trade except ________. (a) Transportation (b) Banking (c) Manufacturing (d) Insurance
29. The total revenue from sales over a period is known as ________. (a) Gross profit (b) Net profit (c) Turnover (d) Cost of sales
30. Which of these is not a type of warehouse? (a) Bonded warehouse (b) Public warehouse (c) Private warehouse (d) Personal warehouse
31. The main reason for communication in business is to ________. (a) Create confusion (b) Share information and build relationships (c) Waste time (d) Avoid decisions
32. The process of calculating the cost of sales involves ________. (a) Opening stock + purchases – closing stock (b) Selling price – cost price (c) Revenue – expenses (d) Assets – liabilities
33. Which of the following documents is used to record daily cash sales? (a) Sales daybook (b) Purchases daybook (c) Invoice (d) Receipt
34. The function of customs and excise duty is to ________. (a) Encourage smuggling (b) Regulate imports and exports and generate revenue (c) Reduce local production (d) Provide free goods
35. An example of a communication firm is ________. (a) MTN (b) First Bank (c) Dangote (d) NEPA
36. The ________ is responsible for welcoming visitors and directing them appropriately. (a) Manager (b) Security guard (c) Receptionist (d) Cleaner
37. Which is NOT a channel of distribution? (a) Producer to consumer (b) Producer to wholesaler to retailer to consumer (c) Producer to advertising agent to consumer (d) Producer to retailer to consumer
38. The document used to inform a customer about an undercharge or an omission in an invoice is a ________. (a) Credit note (b) Debit note (c) Receipt (d) Quotation
39. The main importance of tourism to trade is ________. (a) Increased imports (b) Generation of foreign exchange and job creation (c) Reduced local spending (d) Decreased cultural exchange
40. A market where commodities like crude oil, gold, and agricultural products are traded is called a ________ market. (a) Capital (b) Money (c) Commodity (d) Stock

SECTION B: THEORY (30 Marks)
Instruction: Answer any THREE questions.

Question 1
(a) Define “Aids to Trade”. (2 marks)
(b) List and explain any three means of transportation. (3 marks)
(c) State three importance of communication in business. (3 marks)
(d) Give two types of advertisement. (2 marks)

Question 2
(a) What is a bank? (2 marks)
(b) Differentiate between money market and capital market. (3 marks)
(c) State three importance of insurance to trade. (3 marks)
(d) List two career opportunities available in the stock exchange market. (2 marks)

Question 3
(a) Define warehousing. (2 marks)
(b) Explain the difference between cash sales and credit sales. (3 marks)
(c) State three functions of a wholesaler in the channel of distribution. (3 marks)
(d) Mention two types of warehouse. (2 marks)

Question 4
(a) Who is a receptionist? (2 marks)
(b) List and explain any three qualities of a good receptionist. (3 marks)
(c) State three importance of tourism to trade in Nigeria. (3 marks)
(d) Mention two sales documents and two purchase documents. (2 marks)

Objective Marking Scheme

Question 1 – ✅ (c) Commerce
Question 2 – ✅ (c) Ship
Question 3 – ✅ (b) Inform and persuade customers
Question 4 – ✅ (d) Personal bank
Question 5 – ✅ (b) Rudeness
Question 6 – ✅ (b) Receipt
Question 7 – ✅ (b) Distribution
Question 8 – ✅ (b) Order letter
Question 9 – ✅ (c) Capital
Question 10 – ✅ (c) Direct selling to consumers
Question 11 – ✅ (c) Telephone
Question 12 – ✅ (b) Trading
Question 13 – ✅ (c) Balance Sheet
Question 14 – ✅ (b) Control the nation’s money supply
Question 15 – ✅ (c) Zuma Rock
Question 16 – ✅ (c) Greet them politely
Question 17 – ✅ (b) Credit note
Question 18 – ✅ (b) Broker
Question 19 – ✅ (d) Food insurance
Question 20 – ✅ (b) Gross profit
Question 21 – ✅ (c) Advertisement
Question 22 – ✅ (a) Invoice
Question 23 – ✅ (b) Risk of bad debts
Question 24 – ✅ (c) Wholesaler
Question 25 – ✅ (c) Receptionist
Question 26 – ✅ (c) Letter of inquiry
Question 27 – ✅ (b) Allow the agent to use their discretion in purchasing
Question 28 – ✅ (c) Manufacturing
Question 29 – ✅ (c) Turnover
Question 30 – ✅ (d) Personal warehouse
Question 31 – ✅ (b) Share information and build relationships
Question 32 – ✅ (a) Opening stock + purchases – closing stock
Question 33 – ✅ (a) Sales daybook
Question 34 – ✅ (b) Regulate imports and exports and generate revenue
Question 35 – ✅ (a) MTN
Question 36 – ✅ (c) Receptionist
Question 37 – ✅ (c) Producer to advertising agent to consumer
Question 38 – ✅ (b) Debit note
Question 39 – ✅ (b) Generation of foreign exchange and job creation
Question 40 – ✅ (c) Commodity