SS3 first term commerce past questions and answers

SS3 first term commerce past questions and answers

Here are 20 SS3 Commerce questions with options and answers:

Question: What is the primary function of a central bank?

A) Issuing passports

B) Controlling inflation

C) Managing sports events

D) Building infrastructure

Answer: B) Controlling inflation

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

A) Gross Domestic Product

B) General Development Plan

C) Goods Distribution Process

D) Global Demand Protocol

Answer: A) Gross Domestic Product

Question: In accounting, what does ROI stand for?

A) Return on Investment

B) Revenue on Income

C) Risk of Inflation

D) Rate of Inheritance

Answer: A) Return on Investment

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 a balance sheet in financial accounting?

A) Record daily transactions

B) Show profitability over time

C) Display assets, liabilities, and equity

D) Summarize income and expenses

Answer: C) Display assets, liabilities, and equity

Question: What is the role of a marketing mix in business?

A) Mix various beverages

B) Combine advertising and sales

C) Blend different marketing strategies

D) Create diverse product lines

Answer: C) Blend different marketing strategies

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

A) Sales invoice

B) Share certificate

C) Purchase order

D) Receipt of payment

Answer: B) Share certificate

Question: What is the purpose of SWOT analysis in business strategy?

A) Evaluate internal and external factors

B) Measure employee performance

C) Analyze financial statements

D) Assess customer satisfaction

Answer: A) Evaluate internal and external factors

Question: In the context of taxation, what does VAT stand for?

A) Value Added Tax

B) Variable Asset Transfer

C) Voluntary Accounting Treatment

D) Virtual Asset Tracking

Answer: A) Value Added Tax

Question: What is the main function of the World Trade Organization (WTO)?

A) Providing educational scholarships

B) Promoting global peace

C) Facilitating international trade

D) Conducting scientific research

Answer: C) Facilitating international trade

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) Statement of retained earnings

Answer: B) Income statement

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

A) Measures the cost of living

B) Indicates corporate profits

C) Tracks stock market trends

D) Evaluates business efficiency

Answer: A) Measures the cost of living

Question: What is a sole proprietorship?

A) Business owned by the government

B) Business owned by two individuals

C) Business owned by a single person

D) Business owned by a group of investors

Answer: C) Business owned by a single person

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

A) Outline financial goals

B) Communicate the organization's purpose

C) Provide a list of products

D) Analyze market trends

Answer: B) Communicate the organization's purpose

Question: What is the concept of elasticity in economics?

A) Measure of responsiveness to price changes

B) Ability to stretch without breaking

C) Degree of government intervention

D) Ratio of assets to liabilities

Answer: A) Measure of responsiveness to price changes

Question: In financial terms, what does IPO stand for?

A) Initial Public Offering

B) International Purchasing Order

C) Internal Project Oversight

D) Investment Portfolio Optimization

Answer: A) Initial Public Offering

Question: What is the purpose of a business plan?

A) Document company history

B) Outline marketing slogans

C) Detail business goals and strategies

D) Record daily transactions

Answer: C) Detail business goals and strategies

Question: Which economic system is characterized by private ownership of the means of production?

A) Socialism

B) Capitalism

C) Communism

D) Mercantilism

Answer: B) Capitalism

Question: What is the role of a human resource department in an organization?

A) Manage financial transactions

B) Oversee marketing strategies

C) Handle employee recruitment and management

D) Develop product prototypes

Answer: C) Handle employee recruitment and management

Question: What is the purpose of financial ratios in financial analysis?

A) Determine employee satisfaction

B) Evaluate market trends

C) Assess a company's financial performance

D) Predict future technological advancements

Answer: C) Assess a company's financial performance