New Curriculum First Term Commerce examination for SS 1

Class: SSS 1
Term: First Term
Subject: Commerce
Time: 2 Hours
Total Marks: 70

SECTION A — OBJECTIVES (40 MARKS)
Instruction: Answer all 40 questions. Choose the most appropriate option. Each question carries 1 mark.

1. All are realistic difficulties of international trading EXCEPT _____.
   (a) customs documentation    (b) transport delays    (c) foreign currency settlement    (d) complete freedom from exchange-rate changes
2. A merchant receives a message requesting the password to its payment gateway. Choose the safest course of action.
   (a) send the password to prevent order cancellation    (b) publish the account details on social media    (c) disable transaction alerts permanently    (d) verify the request independently and avoid disclosing credentials
3. An established business advertises and sells its goods through its website directly to households. Classify the online transaction.
   (a) business-to-consumer (B2C)    (b) consumer-to-consumer (C2C)    (c) business-to-business (B2B)    (d) business-to-government (B2G)
4. Heavy rains isolate yam farmers from buyers in a rural town. Identify the main obstacle to commerce.
   (a) excessive product standardisation    (b) poor transport access    (c) shortage of farmers    (d) excessive retail competition
5. A retailer's till total and sales records differ. Which action is NOT a sound internal control?
   (a) Count cash and compare transaction records.    (b) Ignore the difference if sales were busy.    (c) Investigate refunds and returns.    (d) Document the reconciliation outcome.
6. Identify the most likely economic benefit of a government investment in market access roads.
   (a) the disappearance of all opportunity costs    (b) a guarantee of identical prices nationwide    (c) lower transaction and distribution costs    (d) replacement of household demand
7. Select the most useful task performed by a retail data analyst.
   (a) replace every customer complaint with a slogan    (b) avoid keeping transaction records    (c) interpret sales evidence for decisions    (d) eliminate all uncertainty about demand
8. All of these may restrict cross-border trade EXCEPT _____.
   (a) import quotas    (b) a faster, reliable customs-clearance process    (c) import tariffs    (d) technical compliance requirements
9. The correct step when the delivery note and invoice show different quantities is to:
   (a) reconcile the delivery note and notify the seller    (b) approve the invoice without checking    (c) alter the seller's account secretly    (d) discard both documents before payment
10. The main reason wholesalers may offer trade credit to reliable retailers is _____.
    (a) to support ongoing purchases while managing risk    (b) to remove the need for payment records    (c) to make every retailer a producer    (d) to transfer ownership without any agreement
11. Two individuals exchange second-hand textbooks through an online marketplace. Classify their transaction.
    (a) business-to-business (B2B)    (b) business-to-government (B2G)    (c) consumer-to-consumer (C2C)    (d) manufacturer-to-wholesaler only
12. Identify the key distinction between a technical product standard and an import tariff.
    (a) fixes the quantity of money in circulation    (b) pays buyers an export subsidy automatically    (c) sets retailers' opening hours    (d) sets conditions goods must satisfy, rather than a tax on import value
13. ________ is the e-commerce tool that protects payment details during online transmission.
    (a) A public shared password    (b) An anonymous payment demand    (c) An unverified transfer link    (d) Encrypted payment processing
14. A wholesaler buys 500 cartons and supplies retailers in lots of ten. Name the distribution function performed.
    (a) primary manufacturing    (b) bulk breaking    (c) currency issuing    (d) product consumption
15. The main reason firms assess foreign-trade risks before agreeing a price is to _____.
    (a) ensure every buyer uses the same currency    (b) avoid calculating product costs    (c) allow for currency and delivery uncertainty    (d) remove the need for contractual terms
16. A buyer needs documentary evidence of goods received before payment. The ________ should be checked against the order.
    (a) advertisement leaflet    (b) delivery note    (c) insurance premium    (d) market price index
17. A retailer based in Enugu purchases flour from a wholesaler in Kano. Classify the transaction.
    (a) foreign trade    (b) transit trade across countries    (c) home trade    (d) invisible export trade
18. Commerce contributes most directly to the value of farm output when it _____.
    (a) changes the crop species in the field    (b) replaces the need for production    (c) connects products with willing buyers    (d) determines rainfall over the farm
19. A trader buys ten pens for ₦280 each and sells them for ₦350 each. Calculate the gross profit.
    (a) ₦3,500    (b) ₦700    (c) ₦2,800    (d) ₦70
20. A candidate applying for a marketing internship should prioritise which evidence on a CV?
    (a) An unrelated family anecdote    (b) Unverified claims of total expertise    (c) Only the names of social-media friends    (d) Relevant market-research project and skills
21. When can wholesalers’ storage facilities help manufacturers maintain continuous production?
    (a) retail prices become legally fixed    (b) production can continue before all goods are sold    (c) goods no longer require transport    (d) final demand becomes perfectly certain
22. The ________ in trade explains why a producer can specialise while buyers still obtain varied goods.
    (a) absence of consumers    (b) ban on distribution    (c) elimination of transport    (d) exchange of goods and services
23. Which limitation of online trade is NOT solved simply by attracting more visitors?
    (a) Low website visibility    (b) Limited brand awareness    (c) Small reach of an advertisement    (d) Weak delivery and fulfilment infrastructure
24. An automated checkout system reduces repetitive cashier work. The most defensible career response is to _____.
    (a) stop learning commercial practices    (b) gain digital sales and customer-service skills    (c) assume no other roles will emerge    (d) discard all inventory records
25. An importer brings goods valued at ₦400,000, subject to a 15% tariff. Calculate the import duty.
    (a) ₦60,000    (b) ₦460,000    (c) ₦40,000    (d) ₦15,000
26. From the supplier invoice below, determine the net value payable after the trade discount.
    (a) ₦240,000    (b) ₦228,000    (c) ₦12,000    (d) ₦252,000
27. A craft maker intends to sell to buyers abroad without opening overseas premises. Identify the main digital-commerce benefit.
    (a) removing all customs procedures    (b) guaranteeing payment by every buyer    (c) eliminating the need for product quality    (d) expanding access to distant customers
28. Among the following activities, select the one that is production rather than an aid to commerce.
    (a) banking services for traders    (b) warehousing before distribution    (c) cultivating cassava on a farm    (d) transporting goods to markets
29. The retailer adds value chiefly by _____.
    (a) making goods available in convenient quantities and locations    (b) manufacturing every product in the shop    (c) replacing wholesalers in every supply chain    (d) setting national monetary policy
30. The main reason an online seller states return terms clearly is to _____.
    (a) reduce disputes and build trust    (b) guarantee that products never fail    (c) avoid keeping order records    (d) remove the buyer's right to ask questions
31. A customer provides a payment reference but the merchant’s dashboard shows no receipt. Choose the sound next step.
    (a) dispatch twice without checking    (b) request the customer's PIN    (c) check payment references with the authorised payment provider    (d) alter the transaction amount manually
32. Several households live far apart in a rural neighbourhood. Recommend the most suitable retail arrangement.
    (a) choose accessible locations and flexible stock quantities    (b) sell only bulk truckloads to households    (c) ignore consumer preferences    (d) stock goods solely on the supplier's advice
33. Which situation best supports bypassing wholesalers?
    (a) The producer has no method to contact customers.    (b) Every retailer needs bulk credit from a middleman.    (c) Goods require consolidation before shipment.    (d) A producer can fulfil and deliver small online orders efficiently.
34. A growing online shop needs to monitor stock availability. Which e-commerce component matters most?
    (a) A decorative home-page banner only    (b) Unverified customer testimonies    (c) A larger font on the terms page    (d) Inventory-management records linked to orders
35. A learner enjoys verifying sales records and preparing financial summaries. Which career fits these strengths?
    (a) road engineering    (b) medical laboratory diagnosis    (c) accounting    (d) crop breeding
36. Which statement about domestic trade is NOT correct?
    (a) It necessarily crosses a national border.    (b) It may involve retailers and wholesalers.    (c) It may connect producers in different states.    (d) It can stimulate employment in distribution.
37. A Lagos firm imports goods from a supplier in Ghana. Select the correct form of trade.
    (a) internal wholesale trade only    (b) local retail trade only    (c) foreign trade    (d) barter within one village
38. Which development would most likely enlarge the market for traders in a remote community?
    (a) Reliable roads and digital communications    (b) More isolated market stalls    (c) Longer delays in payment    (d) Fewer accessible transport routes
39. The ________ limits the quantity of particular goods allowed into a country.
    (a) trade discount    (b) import quota    (c) credit note    (d) cash memo
40. Which document is normally issued to correct an overcharge on an earlier invoice?
    (a) Credit note    (b) Purchase order    (c) Quotation    (d) Delivery schedule

SECTION B — THEORY (30 MARKS)
Instruction: Answer Question 1 and any other TWO questions. Each question carries 10 marks. Show all workings where calculations are required.

Question 1 (10 marks)
(a) A merchant buys 60 cartons at ₦4,500 each with a 10% trade discount. Calculate the net invoice value and name the correcting document if a seller later overcharges. (4 marks)
(b) Explain three checks a buyer should make when reconciling a purchase order, delivery note and supplier invoice. (6 marks)

Question 2 (10 marks)
(a) Distinguish home, foreign and digital trade with one realistic example for any two. (4 marks)
(b) A Nigerian firm wants to sell crafts abroad through an online platform. Explain three challenges it should investigate before accepting foreign orders. (6 marks)

Question 3 (10 marks)
(a) A retailer buys 50 notebooks at ₦400 each and sells them at ₦520 each. Calculate total sales revenue and gross profit. (4 marks)
(b) Compare the retailer and wholesaler in three distinct aspects of distribution and discuss when a producer may sell directly to customers. (6 marks)

Question 4 (10 marks)
(a) An importer brings goods worth ₦600,000 and pays 12% tariff. Calculate the duty and distinguish tariff from quota. (4 marks)
(b) Explain three safeguards for a small e-commerce firm processing customer orders and digital payments. (6 marks)

Objective Marking Scheme
Question 1 – ✅ (d) complete freedom from exchange-rate changes
Question 2 – ✅ (d) verify the request independently and avoid disclosing credentials
Question 3 – ✅ (a) business-to-consumer (B2C)
Question 4 – ✅ (b) poor transport access
Question 5 – ✅ (b) Ignore the difference if sales were busy.
Question 6 – ✅ (c) lower transaction and distribution costs
Question 7 – ✅ (c) interpret sales evidence for decisions
Question 8 – ✅ (b) a faster, reliable customs-clearance process
Question 9 – ✅ (a) reconcile the delivery note and notify the seller
Question 10 – ✅ (a) to support ongoing purchases while managing risk
Question 11 – ✅ (c) consumer-to-consumer (C2C)
Question 12 – ✅ (d) sets conditions goods must satisfy, rather than a tax on import value
Question 13 – ✅ (d) Encrypted payment processing
Question 14 – ✅ (b) bulk breaking
Question 15 – ✅ (c) allow for currency and delivery uncertainty
Question 16 – ✅ (b) delivery note
Question 17 – ✅ (c) home trade
Question 18 – ✅ (c) connects products with willing buyers
Question 19 – ✅ (b) ₦700
Question 20 – ✅ (d) Relevant market-research project and skills
Question 21 – ✅ (b) production can continue before all goods are sold
Question 22 – ✅ (d) exchange of goods and services
Question 23 – ✅ (d) Weak delivery and fulfilment infrastructure
Question 24 – ✅ (b) gain digital sales and customer-service skills
Question 25 – ✅ (a) ₦60,000
Question 26 – ✅ (b) ₦228,000
Question 27 – ✅ (d) expanding access to distant customers
Question 28 – ✅ (c) cultivating cassava on a farm
Question 29 – ✅ (a) making goods available in convenient quantities and locations
Question 30 – ✅ (a) reduce disputes and build trust
Question 31 – ✅ (c) check payment references with the authorised payment provider
Question 32 – ✅ (a) choose accessible locations and flexible stock quantities
Question 33 – ✅ (d) A producer can fulfil and deliver small online orders efficiently.
Question 34 – ✅ (d) Inventory-management records linked to orders
Question 35 – ✅ (c) accounting
Question 36 – ✅ (a) It necessarily crosses a national border.
Question 37 – ✅ (c) foreign trade
Question 38 – ✅ (a) Reliable roads and digital communications
Question 39 – ✅ (b) import quota
Question 40 – ✅ (a) Credit note

Theory Marking Scheme

Question 1:
(a) Gross ₦270,000 (1); discount ₦27,000 (1); net ₦243,000 (1); credit note (1). (4 marks)
(b) Check agreed quantities/description (2); compare actual delivery with invoice (2); verify unit price, discounts and totals (2). (6 marks)

Question 2:
(a) Correct distinctions home within borders (1), foreign across borders (1), digital as electronic channel (1), two examples combined (1). (4 marks)
(b) Three supported challenges with explanation: payment/currency, customs/compliance, logistics, online trust/customer remedies (2 each). (6 marks)

Question 3:
(a) Sales ₦26,000 (2); cost ₦20,000 and gross profit ₦6,000 (2). (4 marks)
(b) Roles, bulk size and customer base one mark each (3); well-reasoned direct-sale circumstances: feasible logistics, digital ordering, own capacity (3). (6 marks)

Question 4:
(a) Tariff ₦72,000 (2); tariff is a tax (1), quota a quantity limit (1). (4 marks)
(b) Secure payment/authentication (2); clear orders/delivery/returns records (2); customer data protection and fraud verification (2). (6 marks)
Accept logically valid equivalents within the taught curriculum. Credit correct workings and justifications; do not award the same point twice.