1 The type of activity which turns processed raw materials into consumer and industrial goods is described as
(A) extractive
(B) (ANS) manufacturing
(C) constructive
(D) processing
- A company earned a total revenue of =N=108 million with a total cost of =N=91 million in 1991. If it paid 45% tax on its gross profit for that year, determine its net profit.
(C) =N= 24.65 million
(C) =N= 17.00 million
(C) (ANS) =N= 9.35 million
(C) =N= 7.65 million - The production process that combines two or more raw materials into one end product is
(A) conditioning
(B) (ANS) blending
(C) merging
(D) synthesis
- Sole enterprise may flourish best in
(A) a mining business
(B) (ANS) a retailing business (ANS)
(C) an oil exploration business
(C) a car assembly business
- A demonstration of social responsibility by a business is the payment of
(A) (ANS) taxes to government
(B) dividends to shareholders
(C) interest on loans
(D) premium for insurance
- The difference between the total payments for imports and the receipts from exports within a given period is referred to as
(A) (ANS) balance of payments
(B) balance of trade
(C) comparative cost advantage
(D) comparative advantage - A distinguishing characteristic of a limited liability company is that is
(A) is a collection of many sole proprietors
(B) is a multiple partnership
(C) (ANS) can sue and be sued
(D) has limited resources
- Which of the following statements is TRUE about sea transport?
(A) all ships have specific routes to ply
(B) all ships must be insured at every journey
(C) (ANS) all ships are insured separately from the crew
(D) all ships normally arrive at their destination with goods
- Which of the following takes place when firms producing at different stages in the same industry combine?
(A) conglomeration
(B) (ANS) vertical integration
(C) horizontal integration
(D) cartel - Goods discharged from ships on which import duties have not been paid are kept in the
(A) ordinary warehouse
(B) public warehouse
(C) private warehouse
(D) (ANS) bonded warehouse
- NACCIMA stands for
(A) Nigerian-American Centre for Culture, Industries, Mines and Arts
(B) Nigerian Association for Culture, Civics, Industries, Minerals and Arts
(C) National Agency for Culture, Civilization, Investments, Manufacturing and Agriculture
(D ANS) Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture
- What are the factors with which commercial undertakings can be distinguished? I Size of the undertakings
II Profits generated
III forms of ownership
IV Location of the undertakings
(A) I and II only
(B) (ANS) I and III only
(C) II and III only
(D) III and IV only
- For the establishment of a powerful consumers’ association in Nigeria to exist, there must be
(A) financial and moral support from the public
(B) honest and committed leadership
(C) allocation of goods from the producers
(D) (ANS) freedom from external influence.
- The merger of two companies producing the same type of products is an example of
(A) vertical integration
(B) (ANS) horizontal integration
(C) lateral merger
(D) an acquisition
- Which of the following is the most important business resource?
(A) money
(B) management
(C) materials
(D) (ANS) manpower
- In the case of a voluntary liquidation of a business, the receiver is appointed by the
(A) (ANS) creditors
(B) debtors
(C) directors
(D) shareholders
- Which of the following makes other functions of business its appendages?
(A) production
(B) (ANS) marketing
(C) finance
(D) personnel
- The nominal value of a share as specified in the Memorandum of Association and the share certificate is the
(A) discounted value
(B) stock value
(C) (ANS) face value
(D) par value - The use of computers in modern banking industry is a reflection of
(A) competitive development
(B) scientific development
(C) economic development
(D) (ANS) technological development
- A public limited company can raise long-term loans through
(A) (ANS) the capital market
(B) the money market
(C) bank overdrafts
(D) discount houses
- RRF as a scheme introduced by the Central Bank of Nigeria means
(A) Recording and Rediscounting Faculty
(B) Refinancing and Recording Faculty
(C) Refinancing and Rediscounting Faculty
(D) (ANS) Refinancing and Reinvesting Faculty
- The breaking down of a market into separate and identifiable elements each with its own special product requirements is known as market
(A) differentiation
(B) (ANS) segmentation
(C) penetration
(D) identification - Which of the following gives the correct order in which the listed documents are used?
(A) debit note, order, delivery note, invoice and statement
(B) (ANS) order, delivery note, invoice, debit note and statement
(C) statement, order, invoice, delivery note and debit note
(D) invoice, order, statement, debit note and delivery note
- When an industry or company is nationalized, the state becomes
(A) the majority shareholder
(B) the minority shareholder
(C) (ANS) the only shareholder
(D) an equal shareholder with other individuals
- Freight note is a document
(A) used by government to transport goods from one country to another
(B ANS) issued by a shipping company giving details of charges
(C) used for payment for imported goods
(D) given by an importer to pay for goods at a future period
- Motivation is an essential element in management because it
(A) leads to the improvement of staff welfare
(B) (ANS) encourages individuals to work towards achieving the organisation’s objectives
(C) reduces friction among the organisation’s objectives
(D) helps to eliminate industrial disharmony
- The practice by which an insurance company accepts a very large risk and later shares it with other insurance companies is called
(A) subrogation
(B) contribution
(C) (ANS) re-insurance
(D) indemnity - The business organization in which shareholders have equal votes is
(A) sole proprietorship
(B) partnership
(C) (ANS) co-operative
(D) limited liability
- A major liability of a commercial bank arises from
(A) (ANS) customers’ deposits
(B) loans and advances
(C) overdrafts
(D) staff allowances
- A term which indicates that a share is temporarily suspended is
(A) (ANS) ex-dividend
(B) cum-dividend
(C) bond
(D) stock
- The most important piece of legislation governing business and commercial activities in Nigeria currently is the
(A) Companies Decree, 1968
(B) Trade Disputes Decree, 1976
(C) (ANS) Companies and Allied Matters Decree, 1990
(D) Banks and Other Financial Institutions Decree, 1991 - The existing system of governance and the administrative sub-divisions of a country which described as
(A) economic environment
(B) legal environment
(C) (ANS) political environment
(D) social environment - One of the criteria for differentiating consumer markets from industrial ones is the
(A) (ANS) type of demand
(B) type of supply
(C) nature of the services rendered
(D) price of the goods
- If a firm’s turnover is =N=15,000 and the cost of goods sold is =N= 10,000, what is the percentage of
gross profit on sales?
(A) 23.3%
(B) (ANS) 33.3%
(C) 50.0%
(D) 66.6%
- The overriding objective of the Food and Drug Act in Nigeria is to prevent the
(A) importation of food and drugs that can be locally manufactured
(B) consumption of food and drugs not tested by the ministries of health
(C) (ANS) adulteration of food and drugs sold in the country
(D) manufacturers of food and drugs from charging excessive prices
- The assets, liabilities and general management of a distressed bank may be taken over by
(A) International Bank for Reconstruction and Development
(B) Nigerian Industrial Development Bank
(C) (ANS) Nigeria Deposit Insurance Corporation
(D) Nigerian Bank for Commerce and Industry
- The activities of consumers association in Nigeria have not been effective because
(A) the consumers are too many
(B) the government is not favourably disposed towards consumerism
(C) (ANS) there is poor enlightenment about consumer rights
(D) the consumers have no medium for expressing their feelings.
- I. Companies must be registered as private limited liability companies.
II. Companies must have not less than 100 shareholders.
III. No shareholder may have more than 75% of issued share capital.
What of the above are requirements for admission into the second-tier securities market?
(A) I and II only
(B) I and III only
(C) I, II and III
(D) (ANS) II and III only
- The least of the advantages of indigenization is that
(A) (ANS) the standard of living of the indigenes is improved
(B) the economy is controlled by the nationals
(C) entrepreneurial skills is developed
(D) foreigners’ domination is avoided
- An underlying principle in the marketing of goods is that firms should
(A) train their personnel
(B) (ANS) be consumer oriented
(C) advertise the goods
(D) sell through outlets
- An example of a consumer protection agency is the
(A) Nigerian Bar Association
(B) Nigerian Medical Association
(C) (ANS) Federal Environmental Protection Agency
(D) Manufacturers Association of Nigeria
- The ordinary shareholders enjoy the following rights EXCEPT the right to
(A) vote at annual general meetings
(B) elect the board of directors
(C) participate in additional issues of shares
(D) (ANS) receive dividends at a predetermined rate
- The body that organizes, promotes and participates in local and foreign trade fairs is the
(A) Ministry of Commerce and Tourism
(B) Ministry of Finance
(C) (ANS) Chambers of Commerce
(D) Export Promotion Council - Commerce makes it possible for man to live in a …
(A) complex and organized society
(B) society characterized by subsistency
(C) (ANS) society characterized by dependency
(D) simple and organized society - The main function of thrift, credit and loans co-operative societies is to
(A) educate their members
(B) collect money from their members
(C) disburse money to their members
(D) (ANS) raise investment finance among their members - Which of these sets of external environmental factors affect a business operation?
(A) Competition, Industry and Product
(B) Competition, Labour and Political
(C) Political, Cultural and Labour
(D) (ANS) Economic, Social and Legal
47 Management is described as
(A) (ANS) getting things done through people
(B) implementation of business decisions
(C) the number of levels in an organisation
(D) the people in authority in an organization - (ANS) The ECOBANK is the initiative of
(A) some well-meaning Nigerian shareholders
(B) the Federal Government of Nigeria
(C) (ANS) West African States to foster trade
(D) the Lagos State Government to enhance capital mobilization - Under normal circumstances, a business enterprise can be ideally structured
(A) (ANS) by product, function or territories
(B) around the personalities in the enterprise
(C) on the ruling of the management
(D) on the basis of an order from stockholders - Shares can be forfeited for
(A) (ANS) non-payment of any due to the company
(B) non-attending three annual general meetings consecutively
(C) non-payment of call money
(D) violent activities at the Annual General Meetings
practice 2
Question 1
A partnership may be automatically dissolved due to the following factors except________
Options
A) Court verdict
B) Joint decision
C) Admission of new partners
D) Bankruptcy of a partner
The correct answer is C.
Explanation:
Dissolution of partnership is the coming to an end of a partnership agreement, i.e the breakup of a partnership business.
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Question 2
One of the disadvantages of Sole Proprietorship is__________
Options
A) It requires small operations
B) It involves small capital
C) It lacks specialization
D) Grants from government
The correct answer is C.
Explanation:
The lack specialization because the owner is personally involved in every section of the business.
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Question 3
In the formation of a united liability company, the following documents are prepared except_______
Options
A) Memorandum of Association
B) Article of Association
C) Statement of Nominal Capita
D) Prospectus
The correct answer is D.
Explanation:
A prospectus is an invitation to the public to purchase shares or debentures. It is most often issued by public limited companies.
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Question 4
The process of winding up or bringing a company to an end is________
Options
A) Dissolution
B) Liquidation
C) Integrating
D) Merger
The correct answer is B.
Explanation:
Liquidation is the termination of a company when it has completed the business for which it was created.
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Question 5
Use the following information to answer this question.
The following is a summary of the asset and liabilities of Ojo trading company as at 31st December, 2018
Initial Capital 5000
Net Profit 1000
Furniture 2000
Equipment 2900
Debtors 100
Stock 1000
Bank 500
From the above, calculate Current assets
Options
A) 1600
B) 1060
C) 1500
D) 600
The correct answer is A.
Explanation:
Current Assets N
Debtors 100
Stock 1000
Bank 500
1600
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Question 6
The following is a summary of the asset and liabilities of Ojo trading company as at 31st December, 2018
Initial Capital 5000
Net Profit 1000
Furniture 2000
Equipment 2900
Debtors 100
Stock 1000
Bank 500
From the above, calculate Fixed assets
Options
A) 6500
B) 2000
C) 4900
D) 600
The correct answer is C.
Explanation:
Fixed Assets N
Furniture 2000
Equipment 2900
4900
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Question 7
The following is a summary of the asset and liabilities of Ojo trading company as at 31st December, 2018
Initial Capital 5000
Net Profit 1000
Furniture 2000
Equipment 2900
Debtors 100
Stock 1000
Bank 500
From the above, calculate Current liabilities
Options
A) 100
B) 6000
C) 600
D) 3000
The correct answer is C.
Explanation:
From accounting equation;
Assets = Capital + liabilities
Therefore, liabilities = Assets – Capital
Liabilities = (4900 + 1600) – (500 + 1000) = 6500 – 6000
⇒ ₦600
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Question 8
In a law of contract, what is given in exchange for a promise to perform is_____
Options
A) offer
B) acceptance
C) warranty
D) consideration
The correct answer is D.
Explanation:
Consideration is one of the valid element of a contract. It is the price for which a promise is bought.
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Question 9
In Nigeria, it is mandatory for all business enterprises to be registered with the________
Options
A) Government
B) Corporate Affairs Commission
C) Agent
D) Enterprise
The correct answer is B.
Explanation:
All businesses must be registered with the Corporate Affairs Commission and a certificate of incorporation will be issued to any business incorporated.
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Question 10
All but one does not provide an Indirect Service?
Options
A) Custom Officers
B) Family Doctors
C) Civil Servants
D) Law Makers
The correct answer is A.
Explanation:
Indirect service are services rendered to the general public but they are not paid by the members of the public directly. The government will pay them from taxes and levies paid by the public.
Question 11
Examples of Commercial occupation are all except___________
Options
A) Bankers
B) Traders
C) Insurers
D) Goldsmith
The correct answer is D.
Explanation:
Commercial occupation are those activities involved in the distribution and exchange of goods and services.
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Question 12
All but one is not an output devices?
Options
A) Joystick
B) Monitor
C) Plotter
D) Printer
The correct answer is A.
Explanation:
An output device is a device that can use to receive processed information from the computer system through either voice or hard-copy.
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Question 13
A self-contained chunk of code with principal aim to replies preferably undetected and to copy itself into the computer’s memory and the computer’s hard-disk is_________
Options
A) Hardware
B) Software
C) Computer remedies
D) Virus
The correct answer is D.
Explanation:
A virus usually interferes with operating system, corrupts program and data files when the virus is on computer memory.
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Question 14
The risks that can be forecast and measured is termed___________
Options
A) Gambling
B) Insurable risks
C) Non-Insurable risks
D) Indenmity Insurance
The correct answer is B.
Explanation:
Insurable risks are the type of risks that is possible to collect, calculate and estimate the likely future losses.
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Question 15
The type of insurance policy that is compulsory in International trade so that all goods passing through the sea must be covered is considered to be________
Options
A) The type of insurance policy that is compulsory in International trade so that all goods passing through the sea must be covered is considered to be
B) Aviation Insurance
C) Marine Insurance
D) Life Assurance
The correct answer is C.
Explanation:
Marine Insurance covers losses or liabilities relating to ship and their cargnes or liabilities relating to ship and against the dangers or perils of the sea.
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Question 16
Thee major aim of consumer orientation is_________
Options
A) consumer satisfaction
B) consumer sovereignty
C) what to produce
D) market research
The correct answer is A.
Explanation:
Consumer orientation is the concept of marketing which begins and ends with the needs and wants of the consumers rather than that of the organisation.
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Question 17
The policy used when contracts are awarded as a result of tender is________
Options
A) market penetration
B) market skimming
C) Bid Pricing
D) Product Line Pricing
The correct answer is C.
Explanation:
Bid pricing is used mostly in government contracts. If the object is to obtain the contract, cost will be considered mainly to determine the level of Minimum Price.
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Question 18
One of these is not a major in the production process?
Options
A) Producers
B) Distributors
C) Marketers
D) Consumers
The correct answer is C.
Explanation:
It should be noted that production is said to be complete when goods and services produced get to the final users or consumers. The production process involves: Producers, distributors and consumers.
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Question 19
Examples of consumer goods include all except________
Options
A) Nurse
B) Cars
C) Spoon
D) Shoes
The correct answer is B.
Explanation:
Consumer goods are goods and services that can satisfy the consumer’s immediate needs. These goods do not require further process of production for their use by the consumers.
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Question 20
The most important resources of business is_______
Options
A) Human resources
B) Money resources
C) Material resources
D) Opportunities
The correct answer is A.
Explanation:
Human resources is the most important resources because it plans, controls, organises and co-ordinates all other resources to achieve maximum efficiency.
Question 21
A business environment that take into consideration the beliefs, attitudes, needs, values and attitudes of the people is_________
Options
A) Economic environment
B) Technological environment
C) Political environment
D) Cultural environment
The correct answer is D.
Explanation:
The cultural environment look into lifestyles of the people and the attitudes of the people.
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Question 22
An example of vertical integration is___________
Options
A) Trust
B) Cartel
C) Merger
D) Price Ring
The correct answer is A.
Explanation:
Trust is an amalgation of different competing firms in different lines of business under a single management. It is vertically integrated in nature.
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Question 23
A company which another company is a member and control the board of directors or hold more than half of its equity is termed_______
Options
A) Subsidiary
B) Syndicate
C) Holding Company
D) Parent company
The correct answer is A.
Explanation:
Subsidiary is a company in which a holding firm has controlling interest by acquiring more than 51% of its share.
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Question 24
The theory of International trade is based on_________
Options
A) Principles of management
B) Principles of comparative cost
C) Principle of double entry
D) Theory of migration
The correct answer is B.
Explanation:
International trade is based on the principle of comparative cost advantage that was propounded by David Ricardo in the 19th century.
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Question 25
A fall in the value of a country’s currency vis-a-vis other currencies is known as__________
Options
A) Depreciation
B) Reduction
C) Devaluation
D) Exchange rate
The correct answer is C.
Explanation:
Devaluation is the lowering of the exchange value of a country’s currency against other currencies. This makes import to be expensive and import to be more attractive.
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Question 26
A market is said to be bullish if_________
Options
A) There is a fail in prices of Securities
B) There is a rise in prices of Securities
C) There is a rise above the offer prices
D) The speculator fails to deliver stock to the buyer
The correct answer is B.
Explanation:
A market is said to be bullish if it is keen to buy. It is associated with the Bull who wait for a time of general rise in prices of securities.
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Question 27
One of these is not a factor affecting prices of securities?
Options
A) The Forces of demand and supply
B) Activities of speculators
C) Political situation of a country
D) Financial statements of the company
The correct answer is D.
Explanation:
Securities are investments which are traded in the stock exchange in order to yield income.
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Question 28
A commission charged on postal order is__________
Options
A) postal zero
B) postal orders
C) poundage
D) brokage
The correct answer is C.
Explanation:
Poundage is a commission paid or charged on postal order. The sender fills the name of the person to be paid and can only be cashed by him.
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Question 29
A terms of payment in which the buyer pays cash immediately for goods bought before he takes them away is called____
Options
A) Prompt cash
B) Cash on delivery
C) Spot cash
D) Cash with order
The correct answer is C.
Explanation:
A spot price is the price that is the current price and at which the instant delivery takes place. Spot payment or price is the same as the market price.
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Question 30
A cheque that is payable to whoever presents it is known as______
Options
A) order cheque
B) open cheque
C) crossed cheque
D) bearer cheque
The correct answer is D.
Explanation:
Bearer cheque is payable to the bearer i.e whoever presents it. It is cashed over the counter without having to be endorsed by the person presenting it.
Question 31
A two-way process which involves sending and receiving of messages is referred to as__________
Options
A) Advertisement
B) Communication
C) Marketing
D) Transportation
The correct answer is B.
Explanation:
Communication is the process of exchange or transmission of meaningful information, feelings, opinions and ideas from one person to another. It is a two-way process which involve the source (sender) an the receiver.
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Question 32
The scope of commerce is limited to________
Options
A) home and foreign trade
B) wholesaler and retail trade
C) trade and aids to trade
D) wholesale and entreport trade
The correct answer is C.
Explanation:
Commerce scop embraces trade and aids to trade.
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Question 33
All but one is not a demerit of advertising?
Options
A) It leads to monopoly
B) Buyers can buy unnecessarily
C) Increase in profit
D) High cost
The correct answer is C.
Explanation:
Advertising increases the profitability of an organisation.
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Question 34
Advantages of pipeline transport include all except_______
Options
A) Low maintenance cost
B) It is safe
C) Continuous Flow of goods
D) Prone to leakages
The correct answer is D.
Explanation:
Pipe line transportation can be prone to leakages and authorised tapping by the people, as is the case in the Niger Delta.
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Question 35
The factors to be considered in setting up retail trade include all except_____
Options
A) Capital
B) Experience
C) Location
D) Age
The correct answer is D.
Explanation:
In setting up a retail trade, age is not a factor to be considered.
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Question 36
A responsibility to control environmental pollution is the responsibility of____
Options
A) The business
B) The government
C) The consumer
D) The employee
The correct answer is A.
Explanation:
A business has a responsibility to control environmental pollution e.g water, land, sound and air pollution arising from their operations.
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Question 37
The following development of money have therefore been the use of, except______
Options
A) Coins
B) Inconvertible paper money
C) Commodities
D) Abacus
The correct answer is D.
Explanation:
Abacus is one of the counting devices used in the olden days. It does not serve as money.
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Question 38
Tourism involving residents of the given country travelling only within this country is called__________
Options
A) Domestic Tourism
B) Inbound Tourism
C) Outbound Tourism
D) Traveller’s Tourism
The correct answer is A.
Explanation:
Domestic Tourism, Involving residents of the given country travelling only within this country.
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Question 39
The headquarters of Niger Basin Commission is located at________
Options
A) Abuja
B) Niamey
C) Lome
D) Nojamena
The correct answer is B.
Explanation:
The NBC was established in Oct 1963 and the headquater of the commission is located in Niamey, Niger Republic.
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Question 40
A document which entitles its holder to the gods named on it, which is stored in a specific warehouse is called________
Options
A) Debit note
B) Credit note
C) Warrant
D) Shipping note
The correct answer is C.
Explanation:
A warrant allows the goods to be released when duties have een paid and the authority concerned issue out warehouse warrant for it.
Question 41
The difference between Articles of association and memorandum of Association is that the latter deals
Options
A) with the Internal working relationship of the company and its members
B) with the powers and relationships of the company with outsiders
C) The method of issue, transfer and future of the company’s shares
D) The rights and responsibilities of shareholders
The correct answer is B.
Explanation:
Memorandum of Association contains what is generally called the “external” rules of the company. They refer to the objectives of the company and hold it intends to interact with the public.
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Question 42
All except one is not a corporation and boards at the federal level
Options
A) FRCN
B) NNPC
C) CBN
D) MAN
The correct answer is D.
Explanation:
Manufacturing Association of Nigeria is a trade association i.e Associations of Manufacturers.
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Question 43
The basic characteristics of co-operative society include all except one
Options
A) It is managed democratically
B) It follows the principle of one man
C) Amateur Management
D) Extra capital is raised through loan
The correct answer is C.
Explanation:
Members in the management committees of Co-operative societies often lack business experience and expertise.
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Question 44
The basic characteristics of co-operative society include all except one
Options
A) It is managed democratically
B) It follows the principle of one man
C) Amateur Management
D) Extra capital is raised through loan
The correct answer is C.
Explanation:
Members in the management committees of Co-operative societies often lack business experience and expertise.
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Question 45
Which of the limited liability companies have a limit of fifty members and do not issues their shares to the public
Options
A) Private limited liability
B) Public limited liability
C) Partnership
D) Co-operative society
The correct answer is A.
Explanation:
A private limited liability company is a profit making business with few shareholders and no open market for its shares. The minimum number of shareholders is two and the maximum number is fifty.
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Question 46
Use this information to answer this question. Below is the trading, profit and loss Account particulars of Amadi peterside and Brothers for the year ended 31st December 1986.
₦ ₦
Opening stock
Purchase 1000
7000 Sales 8000
Closing Stock 3000
Trading Expenses
Electricity
Salaries
Rent
Depreciations ₦
135
875
180
210
From the figures given, calculate
Gross profit
Options
A) 300
B) 3000
C) 6000
D) 11000
The correct answer is B.
Explanation:
Gross profit = Sales – Cost of goods sold
Cost of goods sold = Opening + Purchases – Closing stock = 1000 + 7000 – 3000
⇒ 6000
Therefore, Gp = 8000 – 6000 = 3000
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Question 47
Use this information to answer this question. Below is the trading, profit and loss Account particulars of Amadi peterside and Brothers for the year ended 31st December 1986.
₦ ₦
Opening stock
Purchase 1000
7000 Sales 8000
Closing Stock 3000
Trading Expenses
Electricity
Salaries
Rent
Depreciations ₦
135
875
180
210
From the figures given, calculate
Net profit
Options
A) 1400
B) 5000
C) 1600
D) 6400
The correct answer is C.
Explanation:
Net profit = Gross profit – Expenses
3000 – 1400 = 1600
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Question 48
Use this information to answer this question. Below is the trading, profit and loss Account particulars of Amadi peterside and Brothers for the year ended 31st December 1986.
₦ ₦
Opening stock
Purchase 1000
7000 Sales 8000
Closing Stock 3000
Trading Expenses
Electricity
Salaries
Rent
Depreciations ₦
135
875
180
210
From the figures given, calculate
Percentage of net profit to turnover
Options
A) 30%
A) 5%
B) 10%
D) 20%
The correct answer is D.
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Question 49
An offer extended to several people at once is called
Options
A) Acceptance
B) Offeror
C) Invitation to threat
D) Consideration
The correct answer is C.
Explanation:
An invitation to treat is extended to several people at once. It is different from an offer e.g Goods displayed in a shelve.
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Question 50
A conter offer is an offer that is
Options
A) different from the original offer
B) breached
C) different in terms of acceptance
D) extended to several people at once
The correct answer is A.
Explanation:
A counter offer is an offer that is different from the original offer e.g Mr A said to Mr B, I will sell you the hat for ₦100 but Mr B replied, I will buy it for ₦80 is an example of a counter offer.