SS1 Second Term Commerce Past Questions And Answers

Question: What is the primary function of a bank?

A) Buying and selling goods

B) Providing education

C) Providing financial services

D) Manufacturing products

Answer: C) Providing financial services

Question: What is the term for a business owned and operated by a single individual?

A) Partnership

B) Corporation

C) Sole proprietorship

D) Cooperative

Answer: C) Sole proprietorship

Question: In economics, what does GDP stand for?

A) Gross Domestic Product

B) General Development Principle

C) Global Demand Projection

D) Government Debt Policy

Answer: A) Gross Domestic Product

Question: Which type of market structure is characterized by a large number of sellers and buyers with similar products?

A) Monopoly

B) Oligopoly

C) Monopolistic competition

D) Perfect competition

Answer: D) Perfect competition

Question: What is the purpose of advertising in business?

A) To reduce competition

B) To increase prices

C) To create awareness and promote products

D) To limit consumer choices

Answer: C) To create awareness and promote products

Question: Which document serves as evidence of ownership in a corporation?

A) Invoice

B) Receipt

C) Stock certificate

D) Lease agreement

Answer: C) Stock certificate

Question: What is the role of an entrepreneur in a business?

A) To consume goods

B) To organize and manage resources

C) To provide financial services

D) To regulate market prices

Answer: B) To organize and manage resources

Question: Which economic system is characterized by private ownership of the means of production and market-driven decision making?

A) Socialism

B) Capitalism

C) Communism

D) Mixed economy

Answer: B) Capitalism

Question: What is the purpose of insurance in business?

A) To maximize profits

B) To minimize competition

C) To transfer risk

D) To control inflation

Answer: C) To transfer risk

Question: What is the function of the central bank in a country’s economy?

A) To issue passports

B) To regulate and control the money supply

C) To build infrastructure

D) To provide education

Answer: B) To regulate and control the money supply

Question: What is the term for the money earned by a business after deducting all expenses?

A) Revenue

B) Profit

C) Investment

D) Loss

Answer: B) Profit