SS3 First Term Commerce Past Questions And Answers

Here they are;

Question: What is the primary function of a bank?

 

a) Manufacturing goods

b) Providing healthcare services

c) Financial intermediation

d) Agriculture

 

Answer: c) Financial intermediation

 

Question: What does GDP stand for in the context of economics?

 

a) Gross Domestic Product

b) General Development Program

c) Global Demand Projection

d) Government Debt Percentage

 

Answer: a) Gross Domestic Product

 

Question: In accounting, what does ROI stand for?

 

a) Return on Investment

b) Revenue over Inflation

c) Risk of Inflation

d) Running Operational Income

 

Answer: a) Return on Investment

 

Question: Which market structure is characterized by a large number of sellers and buyers, homogeneous products, and easy entry and exit?

 

a) Monopoly

b) Oligopoly

c) Perfect Competition

d) Monopolistic Competition

 

Answer: c) Perfect Competition

 

Question: What is the purpose of insurance?

 

a) Generating profits for individuals

b) Sharing risks among a group of people

c) Investing in stock markets

d) Funding government projects

 

Answer: b) Sharing risks among a group of people

 

Question: Which document serves as evidence of ownership for a publicly traded company?

 

a) Sales receipt

b) Invoice

c) Stock certificate

d) Bank statement

 

Answer: c) Stock certificate

 

Question: What is the term for the total value of all goods and services produced within a country’s borders in a specific time period?

 

a) National Debt

b) Gross National Income

c) Gross Domestic Product

d) Fiscal Policy

 

Answer: c) Gross Domestic Product

 

Question: In marketing, what does SWOT analysis stand for?

 

a) Strengths, Weaknesses, Opportunities, Threats

b) Sales, Worldwide Operations, Technology

c) Strategic Ways of Overcoming Threats

d) Supply, Workforce, Operational Tactics

 

Answer: a) Strengths, Weaknesses, Opportunities, Threats

 

Question: Which of the following is a direct tax?

 

a) Value Added Tax (VAT)

b) Corporate Income Tax

c) Excise Duty

d) Sales Tax

 

Answer: b) Corporate Income Tax

 

Question: What is the economic term for the total value of all final goods and services produced by a country in a specific period?

 

a) Gross National Product (GNP)

b) Net Domestic Product (NDP)

c) Net National Product (NNP)

d) Gross Domestic Product (GDP)

 

Answer: d) Gross Domestic Product (GDP)

 

Question: In financial accounting, what is the basic accounting equation?

 

a) Assets = Liabilities – Equity

b) Assets = Liabilities + Equity

c) Assets – Liabilities = Equity

d) Assets + Liabilities = Equity

 

Answer: b) Assets = Liabilities + Equity

 

Question: What is the purpose of the Consumer Price Index (CPI)?

 

a) Measure inflation or deflation

b) Assess stock market performance

c) Evaluate corporate profitability

d) Determine interest rates

 

Answer: a) Measure inflation or deflation

 

Question: What does the term “Laissez-faire” mean in economics?

 

a) Controlled economy

b) Free-market capitalism

c) Planned economy

d) Socialist system

 

Answer: b) Free-market capitalism

 

Question: Which financial statement provides a snapshot of a company’s financial position at a specific point in time?

 

a) Income Statement

b) Cash Flow Statement

c) Balance Sheet

d) Statement of Retained Earnings

 

Answer: c) Balance Sheet

 

Question: What is the role of the Securities and Exchange Commission (SEC) in the United States?

 

a) Regulate monetary policy

b) Oversee the stock

market

c) Set interest rates

d) Manage international trade agreements

 

Answer: b) Oversee the stock market