Aims and Objectives of Practicing These JAMB Commerce Questions
Before diving into the questions, here are the key reasons why you should practice them:
✅ 1. To Understand the Exact JAMB Exam Pattern
These questions are modeled after real JAMB Commerce CBT questions. Practicing them helps you understand how JAMB sets questions, the style, options, and difficulty level.
✅ 2. To Improve Speed and Accuracy
JAMB CBT is a timed exam. Practicing many questions trains you to think fast and answer correctly under time pressure.
✅ 3. To Master Key Commerce Topics
IMPORTANT topics like business units, trade, insurance, warehousing, marketing, transportation, banking, demand & supply, and consumer protection appear EVERY YEAR.
✅ 4. To Boost Confidence and Reduce Exam Fear
The best way to enter the JAMB hall confidently is to practice many standard questions.
Confidence improves performance.
✅ 5. To Score 80+ in Commerce
If Commerce is one of your scoring subjects, these questions will help you reach a high grade for your overall JAMB aggregate.
✅ 100 JAMB Commerce CBT Questions and Answers (2026 Updated Pattern)
SECTION A — QUESTIONS AND ANSWERS
1. Commerce is best defined as the study of…
A. Human behavior in business
B. Trade and aids to trade
C. Buying and selling only
D. Profit-making activities
ANSWER: B
2. Which of the following is NOT an aid to trade?
A. Banking
B. Insurance
C. Advertising
D. Production
ANSWER: D
3. The reward for labour is…
A. Rent
B. Wage
C. Profit
D. Interest
ANSWER: B
4. The main purpose of a retail shop is to…
A. Store goods before use
B. Sell goods in small quantities to consumers
C. Sell in bulk to wholesalers
D. Produce goods for sale
ANSWER: B
5. Which of the following is a form of home trade?
A. Import
B. Export
C. Wholesale
D. Entrepot
ANSWER: C
6. Which of the following is a document used in international trade?
A. Delivery note
B. Bill of lading
C. Receipt
D. Local purchase order
ANSWER: B
7. A business owned by one person is called…
A. Public company
B. Partnership
C. Sole proprietorship
D. Cooperative
ANSWER: C
8. The board of directors is headed by the…
A. Secretary
B. Managing director
C. Chairman
D. Major shareholder
ANSWER: C
9. The process of turning raw materials into finished goods is known as…
A. Commerce
B. Industry
C. Trade
D. Banking
ANSWER: B
10. The movement of goods from producers to consumers is called…
A. Specialization
B. Distribution
C. Exchange
D. Warehousing
ANSWER: B
(For space, the remaining questions continue below. All 100 included.)
11. Which insurance covers loss due to fire?
A. Life
B. Burglary
C. Fidelity guarantee
D. Fire insurance
ANSWER: D
12. The merging of two or more firms is known as…
A. Integration
B. Decentralization
C. Diversification
D. Privatization
ANSWER: A
13. Which is NOT a function of a wholesaler?
A. Breaking bulk
B. Providing finance
C. Storing goods
D. Consuming goods
ANSWER: D
14. The place where shares are bought and sold is the…
A. Central Bank
B. Stock Exchange
C. Money Market
D. Bureau de change
ANSWER: B
15. The buying and selling of goods across national boundaries is…
A. Retail trade
B. Home trade
C. Foreign trade
D. Wholesale trade
ANSWER: C
16. A business letter is NOT complete without…
A. Signature
B. Margin
C. File
D. Envelope
ANSWER: A
17. The main purpose of packaging is to…
A. Increase price
B. Protect the product
C. Change product colour
D. Promote monopoly
ANSWER: B
18. Money performs which of the following functions?
A. Production
B. Distribution
C. Medium of exchange
D. Insurance
ANSWER: C
19. The authority to start a public company is given by the…
A. Certificate of incorporation
B. Certificate of origin
C. Trade licence
D. Memorandum of sale
ANSWER: A
20. Advertising directed to final consumers is called…
A. Retail advertising
B. Direct advertisement
C. Consumer advertising
D. Industrial advertising
ANSWER: C
21. The term “laissez faire” is associated with…
A. Government control
B. Free market
C. Socialism
D. Communism
ANSWER: B
22. The warehouse used by manufacturers is called…
A. Bonded warehouse
B. Public warehouse
C. Private warehouse
D. Government warehouse
ANSWER: C
23. Which is NOT a type of cheque?
A. Open cheque
B. Crossed cheque
C. Postal cheque
D. Certified cheque
ANSWER: C
24. Factors of production include the following EXCEPT…
A. Land
B. Capital
C. Industry
D. Labour
ANSWER: C
25. A document that shows details of goods sold is…
A. Invoice
B. Receipt
C. Account
D. Voucher
ANSWER: A
(Continuing…)
26–100
I will include the remaining questions compactly:
- Trade between Lagos and Kano → A. Internal trade
- A banker who pays forged cheque → C. He bears the loss
- A market where old shares are traded → B. Secondary market
- The connecting link between producer and consumer → D. Retailer
- Marine insurance covers → A. Sea risks
- Turnover means → C. Total sales
- Road transport advantage → A. Door-to-door service
- A brand name is used for → B. Product identification
- Hypermarket means → C. Very large self-service store
- Division of labour leads to → B. Increased output
- Consumer cooperative → A. Helps members buy cheaply
- Demand means → C. Ability and willingness to buy
- Supply means → B. Quantity producers are willing to sell
- Surplus budget → C. Gov revenue > Gov expenditure
- Inflation → A. General rise in prices
- Air transport disadvantage → D. High cost
- Postal order → C. Means of payment
- Ledger is a book of → A. Final entry
- Trial balance checks → B. Arithmetic accuracy
- The entrepreneur receives → D. Profit
- Warehousing helps by → A. Storing goods
- Bank overdraft means → C. Withdrawal exceeding deposit
- Hire purchase means → B. Pay in installments
- Tariffs are used to → C. Protect local industries
- Commercial banks create credit by → A. Lending
- Sales promotion example → D. Free samples
- Monopoly means → C. One seller
- Joint-stock companies owned by gov → A. Public corporations
- Bill of exchange is → B. Negotiable instrument
- Import duty is a form of → C. Tax
- Capital receipt → D. Loan from bank
- A distribution channel means → A. Path goods follow
- Copyright protects → C. Intellectual property
- VAT stands for → Value Added Tax
- Turnkey project means → D. Ready for use
- Debit note issued when → A. Goods returned to supplier
- Credit note issued when → B. Supplier acknowledges return
- Retailer is middleman between → C. Wholesaler & consumer
- Sole trader advantage → A. Quick decisions
- Free trade means → D. No restrictions
- Containerisation advantage → C. Reduces damage
- E-commerce means → A. Online business
- Marketing mix includes → B. Product, price, place, promotion
- Specialization leads to → A. Expertise
- Insurance premium is → C. Payment for cover
- Multinational company → B. Operates in many countries
- A budget is → A. Financial plan
- Retailers include → C. Hawkers
- Devaluation means → D. Lowering currency value
- Book-keeping records → A. Financial transactions
- Invisible trade refers to → B. Services
- Visible trade refers to → A. Goods
- Wholesaler buys in → C. Bulk
- Branding helps → A. Product recognition
- A joint venture is → D. Temporary partnership
- Roadside sellers are → C. Itinerant retailers
- A market is → A. Place for exchange
- Foreign exchange is → D. Dealing in currencies
- Public limited company share transfer is → B. Free
- Insurance indemnity means → A. Restore to original position
- Banking function includes → C. Accepting deposits
- CIF means → Cost, Insurance, Freight
- FOB means → Free on Board
- Franchise means → C. Business license
- Audit means → A. Examination of accounts
- Transportation bridges → D. Place gap
- Advertising informs → A. Consumers
- A customs duty is paid on → B. Imports
- Consumer rights include → C. Right to safety
- A cooperative society operates for → A. Members' welfare
- Export means → D. Selling abroad
- Import means → B. Buying from abroad
- Wholesaler’s warehouse helps in → C. Storage
- Business environment includes → A. External & internal factors
- Ledger “account” is also known as → C. T-account
✅ 100 More JAMB Commerce CBT Questions and Answers
1. The primary function of commerce is to…
A. Provide employment
B. Remove obstacles to exchange
C. Produce raw materials
D. Fix prices
Answer: B
2. Which of the following is NOT a form of occupation?
A. Industrial
B. Commercial
C. Direct services
D. Transportation
Answer: D
3. The reward for capital is…
A. Profit
B. Interest
C. Rent
D. Wage
Answer: B
4. A retailer who moves from place to place is known as…
A. Roadside seller
B. Hawker
C. Multiple retailer
D. Department retailer
Answer: B
5. Land as a factor of production is unique because it is…
A. Fixed in supply
B. Unlimited
C. Mobile
D. Produced by labour
Answer: A
6. The document issued when goods are loaded for shipment is…
A. Invoice
B. Bill of lading
C. Debit note
D. Quotation
Answer: B
7. A partnership with limited liability is called…
A. Joint-stock partnership
B. Limited partnership
C. Cooperative
D. Franchise
Answer: B
8. Which of the following is an example of a source document?
A. Ledger
B. Invoice
C. Trial balance
D. Balance sheet
Answer: B
9. A producer sells directly to consumers through…
A. Hypermarkets
B. Mail order
C. Wholesalers
D. Brokers
Answer: B
10. Which business unit is the simplest to establish?
A. Public corporation
B. Partnership
C. Sole proprietorship
D. Private company
Answer: C
11. Which of the following is NOT a type of advertising?
A. Informative
B. Persuasive
C. Destructive
D. Competitive
Answer: C
12. Division of labour can lead to…
A. Higher costs
B. Monotony
C. Reduced output
D. Less efficiency
Answer: B
13. The merging of unrelated businesses is known as…
A. Vertical merger
B. Horizontal merger
C. Conglomerate merger
D. Lateral merger
Answer: C
14. A trader who sells in large quantities to retailers is called…
A. Broker
B. Wholesaler
C. Agent
D. Factor
Answer: B
15. A cheque that cannot be cashed over the counter is…
A. Crossed cheque
B. Open cheque
C. Stale cheque
D. Traveller’s cheque
Answer: A
16. A bonded warehouse is mainly used for…
A. Locally produced goods
B. Perishable goods
C. Imported goods awaiting duty payment
D. Retail storage
Answer: C
17. The modern means of settling international payments is…
A. Barter
B. Telegraphic transfer
C. Cash
D. Money order
Answer: B
18. Insurance is based on the principle of…
A. Subrogation
B. Contribution
C. Indemnity
D. All of the above
Answer: D
19. An order placed without seeing the goods is…
A. Conditional order
B. Blind order
C. Standing order
D. Blanket order
Answer: B
20. The stock exchange deals in…
A. New shares only
B. Second-hand securities
C. Household goods
D. Consumables
Answer: B
21. Carriage inwards is added to…
A. Sales
B. Closing stock
C. Purchases
D. Gross profit
Answer: C
22. Who controls the activities of commercial banks?
A. Ministry of Trade
B. Local Government
C. Central Bank
D. Money Market
Answer: C
23. Which of the following is NOT a means of communication?
A. Internet
B. Telephone
C. Radio
D. Invoice
Answer: D
24. The market where new securities are sold is the…
A. Secondary market
B. Open market
C. Primary market
D. Stock exchange
Answer: C
25. The main document used to make a claim in insurance is…
A. Proposal form
B. Claim form
C. Cover note
D. Certificate
Answer: B
26–100 (Condensed for space)
- Retailers sell in → Small units
- Which is NOT an aid to trade? → Production
- Road transport advantage → Speed for short distance
- Air transport disadvantage → Expensive
- Marketing includes → Customer satisfaction
- An overdraft is → Bank loan on current account
- Money market deals in → Short-term funds
- A promissory note is → Promise to pay
- Devaluation effects → Makes exports cheaper
- Price discrimination means → Different prices for same product
- Capital intensive production uses → More machinery
- Trade association objective → Protect members
- Chamber of commerce promotes → Business interests
- Retailers that sell foodstuff only → Grocers
- Cash discount encourages → Prompt payment
- A franchise is → Right to use business name
- Invisible trade deals in → Intangibles
- Hypermarket combines → Supermarket + Department store
- Loan capital includes → Debentures
- Advertisement on TV is → Electronic advert
- A turnover is → Total sales
- Demand curve slopes → Downward
- Supply curve slopes → Upward
- Retailer storage facility → Shop
- A stock broker → Buys/sells shares
- Liquidity means → Ease of converting to cash
- Trademark protects → Brand name
- Loan repayment is → Capital expenditure
- Free sample is → Sales promotion
- Public limited company must publish → Accounts
- Import duties → Increase price of imports
- Sole proprietorship suffers → Unlimited liability
- Prospectus issued to → Public
- Postal services include → Parcel post
- Insurance premium is → Fee paid regularly
- An offer is → Proposal to buy/sell
- Acceptance occurs when → Offer is agreed to
- Consideration is → Something of value exchanged
- Land resources include → Minerals
- Obsolescence refers to → Outdated products
- Warehousing removes → Time gap
- Transportation removes → Place gap
- Advertising removes → Knowledge gap
- Branding removes → Identification gap
- Packaging adds → Protection
- Cooperative societies aim at → Member welfare
- Debit note is sent by → Buyer
- Credit note is sent by → Seller
- Cash book records → Cash transactions
- Ledger classifies → Accounts
- E-commerce is → Online trading
- Barter fails because → Double coincidence of wants
- Letter of credit issued by → Bank
- Retailer advantage → Close to consumers
- Wholesaler advantage → Bulk storage
- Perishable goods require → Cold storage
- Money eliminates → Barter difficulties
- Trade credit allows → Buying now, paying later
- Fixed assets include → Buildings
- Current assets include → Stock
- Treasury bills → Short-term securities
- Budget surplus means → Revenue > Expenditure
- JIT inventory means → Just-in-time
- Sole trader bears → All risks
- Public corporation owned by → Government
- Branding improves → Product recognition
- Census provides → Population data
- Entrepreneurship involves → Risk taking
- Direct service example → Teacher
- Indirect service example → Retailer
- Copyright lasts → Author’s life + 70 years
- Commission agent earns → Commission
- Market research helps → Decision making
- Stock turnover = COGS ÷ Avg Stock
- Goods bought for resale are → Purchases
