se the correct answer from A–D. Commerce can best be defined as: A. Buying and selling only B. Production of goods and services C. Activities involved in distribution and exchange D. Manufacturing activities Which of the following is a direct aid to trade? A. Farming B. Mining C. Banking D. Fishing The branch of commerce concerned with movement of goods from producer to consumer is: A. Trade B. Industry C. Insurance D. Advertising Which form of trade involves buying and selling within a country? A. Entrepôt trade B. Home trade C. Foreign trade D. Bilateral trade Retail trade is important because retailers: A. Produce goods B. Break bulk C. Manufacture goods D. Mine raw materials Which retailer operates on the principle of “cash and carry”? A. Hawker B. Supermarket C. Chain store D. Mobile shop One advantage of multiple shops over independent retailers is: A. Small capital requirement B. Centralized buying C. Lack of specialization D. Higher prices Mail order business is most suitable where: A. Roads are excellent B. Customers inspect goods physically C. Population is widely scattered D. Goods are perishable Wholesalers mainly earn profit through: A. Commission only B. Insurance services C. Bulk buying and resale D. Manufacturing goods One disadvantage of wholesalers to retailers is that they: A. Grant credit B. Break bulk C. Increase cost through middlemanship D. Store goods Which document is sent by a seller to indicate amount owed? A. Invoice B. Receipt C. Debit note D. Quotation A trade discount is usually: A. Recorded in cash book B. Given for prompt payment C. Deducted before payment D. Paid after delivery Cash discount is given to encourage: A. Bulk purchase B. Early payment C. Long credit period D. Hire purchase The document used to request goods from a supplier is: A. Delivery note B. Order form C. Invoice D. Credit note Which document accompanies goods in transit? A. Receipt B. Delivery note C. Statement of account D. Quotation A cheque crossed generally means: A. It can be cashed anywhere B. It must be paid through a bank C. It is invalid D. It is stale The banker-customer relationship is mainly that of: A. Employer and employee B. Debtor and creditor C. Producer and consumer D. Agent and principal only Which of the following is NOT a function of commercial banks? A. Accepting deposits B. Granting loans C. Printing currency notes D. Transferring money The central bank controls commercial banks mainly through: A. Advertising B. Credit control measures C. Warehousing D. Transportation Overdraft is: A. Long-term loan B. Loan secured without repayment C. Withdrawal beyond account balance D. Buying shares Insurance is based on the principle of: A. Speculation B. Gambling C. Indemnity D. Production Which risk is insurable? A. Falling in love B. War prediction C. Fire outbreak D. Change in fashion only The premium in insurance refers to: A. Compensation paid B. Amount insured C. Periodic payment made by insured D. Profit earned Marine insurance covers: A. Road accidents only B. Goods transported by sea C. Fire damage only D. Theft in shops only The main function of advertising is to: A. Manufacture goods B. Inform and persuade consumers C. Transport goods D. Insure goods Which advertising medium is most suitable for illiterate rural populations? A. Newspaper B. Journal C. Radio D. Magazine The process of storing goods until needed is called: A. Packaging B. Warehousing C. Branding D. Merchandising Bonded warehouses are mainly used for: A. Local goods only B. Perishable goods C. Imported goods awaiting customs duty payment D. Household furniture Containerization mainly helps to: A. Increase pilferage B. Reduce handling costs C. Delay transportation D. Increase customs duties Road transport is most suitable for: A. Bulky international trade B. Short-distance distribution C. Crude oil export D. Overseas trade only Which means of transport is fastest for international trade? A. Rail B. Road C. Air D. Pipeline Communication is important in commerce because it: A. Reduces production only B. Facilitates exchange of information C. Increases taxation D. Stops advertising E-commerce mainly involves: A. Manual trade only B. Trading through electronic systems C. Hawking goods D. Trading without money The abbreviation EOE in business correspondence means: A. Errors omitted excepted B. End of envelope C. Exchange of export D. Entry of expenses Partnership business is formed by: A. One person only B. Two or more persons C. Shareholders only D. Government officials The maximum number of partners in ordinary business partnership in Cameroon is generally: A. 2 B. 10 C. 20 D. Unlimited One advantage of sole proprietorship is: A. Limited liability B. Quick decision-making C. Large capital D. Continuity after death Limited liability means shareholders: A. Can never lose money B. Are liable only to extent of investment C. Control government policy D. Must pay all company debts personally Debentures are: A. Shares of ownership B. Long-term loans to a company C. Insurance policies D. Trade discounts The Memorandum of Association states the: A. Internal rules of company B. Daily transactions C. Objectives and powers of company D. Salaries of directors Which of the following is NOT a function of the Cameroon Chamber of Commerce? A. Promotion of trade B. Advising government on trade matters C. Conducting criminal trials D. Encouraging business growth A consumer cooperative society is formed mainly to: A. Maximize profits for outsiders B. Produce crude oil C. Protect consumers’ interests D. Manufacture vehicles Hire purchase allows consumers to: A. Pay full amount immediately B. Obtain goods and pay by installments C. Rent goods permanently D. Borrow money from government One disadvantage of hire purchase is that: A. Goods are obtained instantly B. Total cost may be higher C. Installments are unnecessary D. Ownership is immediate after deposit only An entrepreneur is mainly a person who: A. Consumes goods B. Organizes factors of production and takes risks C. Works only in banks D. Buys finished products only Franchising involves: A. Government ownership only B. One business allowing another to use its name and system C. Illegal trade D. Insurance against fire The stock exchange is a market for: A. Agricultural goods B. Buying and selling securities C. Foreign tourists D. Second-hand goods only The balance of trade refers to the: A. Difference between visible exports and imports B. Government budget C. Money in circulation D. National debt only Visible trade involves trade in: A. Services only B. Goods that can be seen and touched C. Tourism only D. Insurance services only Dumping in international trade means: A. Destroying imported goods B. Selling goods abroad below home price C. Increasing tariffs D. Refusing imports

Here are the correct answers to your Commerce questions: 1. Commerce can best be defined as: C. Activities involved in distribution and exchange 2. Which of the following is a direct aid to trade? C. Banking 3. The branch of commerce concerned with movement of goods from producer to consumer is: A. Trade 4. Which form of trade involves buying and selling within a country? B. Home trade 5. Retail trade is important because retailers: B. Break bulk 6. Which retailer operates on the principle of “cash and carry”? B. Supermarket 7. One advantage of multiple shops over independent retailers is: B. Centralized buying 8. Mail