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
FAQs
What is commerce?
Commerce is the branch of business studies that deals with the buying and selling of goods and services and the distribution of those goods from producers to consumers. It includes all activities that help in exchange such as banking, transportation, advertising, insurance, and warehousing. In simple terms, commerce is what connects production to consumption in an economy.
What are the functions of a wholesaler?
A wholesaler buys goods in large quantities from producers and sells them in smaller quantities to retailers. The wholesaler helps in breaking bulk, storing goods, providing credit to retailers, and ensuring steady supply of goods. They also help producers reach a wider market without dealing directly with many small buyers.
What is the difference between home trade and foreign trade?
Home trade refers to buying and selling of goods within a country’s borders, while foreign trade involves exchange of goods and services between different countries. Home trade uses the same currency and laws, whereas foreign trade involves different currencies, customs regulations, and international documentation.
What is the importance of transportation in commerce?
Transportation is important because it moves goods from where they are produced to where they are needed. It helps in reducing price differences between regions, enables large-scale production, and supports trade by ensuring timely delivery of goods. Without transportation, commerce would be slow, limited, and inefficient.