Commerce NECO exam past questions and answers

Commerce NECO exam past questions and answers

Question: What is the primary purpose of marketing?

a) Increase profits

b) Enhance customer satisfaction

c) Minimize expenses

d) Monitor competitors

Answer: b) Enhance customer satisfaction

Question: What does ROI stand for in business?

a) Return on Investment

b) Revenue on Interest

c) Risk of Inflation

d) Rate of Income

Answer: a) Return on Investment

Question: In accounting, what does the acronym GAAP stand for?

a) Generally Accepted Accounting Procedures

b) General Accounting and Auditing Principles

c) Generally Accepted Auditing Practices

d) Generally Accepted Accounting Principles

Answer: d) Generally Accepted Accounting Principles

Question: What is the main purpose of a balance sheet?

a) To record daily transactions

b) To show a company's financial position at a specific time

c) To calculate taxes

d) To track employee salaries

Answer: b) To show a company's financial position at a specific time

Question: Which economic system relies on supply and demand to determine prices?

a) Capitalism

b) Communism

c) Socialism

d) Mercantilism

Answer: a) Capitalism

Question: What is the function of a SWOT analysis in business?

a) Assessing employee performance

b) Evaluating marketing strategies

c) Monitoring supply chain logistics

d) Analyzing competitor stock prices

Answer: b) Evaluating marketing strategies

Question: What does the term "B2B" mean?

a) Business to Customer

b) Business to Business

c) Buy to Build

d) Base to Base

Answer: b) Business to Business

Question: Which financial statement represents a company's revenues and expenses over a specific period?

a) Balance sheet

b) Income statement

c) Cash flow statement

d) Retained earnings statement

Answer: b) Income statement

Question: What is the purpose of a market segmentation strategy?

a) Targeting the entire market

b) Focusing on niche markets

c) Ignoring customer preferences

d) Maximizing production costs

Answer: b) Focusing on niche markets

Question: What is the role of a central bank in a country's economy?

a) Conducting elections

b) Regulating the money supply

c) Managing international trade

d) Controlling corporate mergers

Answer: b) Regulating the money supply

Question: What does the term "CAGR" stand for in finance?

a) Central Annual Growth Rate

b) Compound Annual Growth Rate

c) Continuous Asset Growth Ratio

d) Corporate Annual Gross Revenue

Answer: b) Compound Annual Growth Rate

Question: What is the purpose of a 401(k) retirement account?

a) Emergency fund

b) Home purchase savings

c) College education fund

d) Retirement savings

Answer: d) Retirement savings

Question: In international trade, what does FOB stand for?

a) Free on Board

b) Freight on Board

c) Forward on Business

d) Full of Bills

Answer: a) Free on Board

Question: What is the concept of elasticity in economics?

a) Ability to stretch without breaking

b) Responsiveness of quantity demanded to price changes

c) The strength of currency

d) Rigidity of supply chains

Answer: b) Responsiveness of quantity demanded to price changes

Question: What is the purpose of a mission statement in business?

a) Summarizing financial statements

b) Defining a company's purpose and goals

c) Monitoring employee attendance

d) Calculating tax liabilities

Answer: b) Defining a company's purpose and goals

Question: What is a tariff in international trade?

a) Quality certification

b) Import tax

c) Export subsidy

d) Market research fee

Answer: b) Import tax

Question: What is the concept of inflation?

a) Increase in the overall level of prices

b) Decrease in the money supply

c) Rise in interest rates

d) Reduction in government spending

Answer: a) Increase in the overall level of prices

Question: What is the purpose of a patent in business?

a) Protecting employee rights

b) Securing a company's logo

c) Granting exclusive rights to an invention

d) Ensuring workplace safety

Answer: c) Granting exclusive rights to an invention

Question: What does the term "ROI" stand for in marketing?

a) Return on Investment

b) Rate of Interest

c) Revenue of Inflation

d) Risk of Inventory

Answer: a) Return on Investment

Question: What is the concept of outsourcing in business?

a) Internal production

b) Delegating tasks to external providers

c) Employee training programs

d) Quality control measures

Answer: b) Delegating tasks to external providers