JAMB Commerce 2006 Past Questions & Answers

An export is a good or service sold to another country to earn foreign currency. When tourists visit a country, they pay for services like hotels, transport, and entertainment. Because the country is earning foreign money by providing these services, tourism is considered an export. Since these services are not physical goods that can be seen or touched, they are called 'invisible', making tourism an invisible export.

Common mistake: Students may incorrectly choose 'intangible import' because they associate the tourist coming *into* the country with an import, but in trade, the classification is based on the flow of money, not people.

Hardware refers to the physical and tangible components of a computer system that you can see and touch. The input unit (like a keyboard), the output unit (like a monitor), and the central processing unit (CPU) are all physical parts. Therefore, they are the basic components of a computer's hardware, which is a key tool for modern business communication.

Common mistake: Students may mistakenly choose 'software' because they confuse it with hardware, but software refers to the non-physical programs and instructions that run on the computer.

Fidelity guarantee insurance is a specific type of policy that protects an employer from financial losses caused by the dishonest acts of its employees, such as theft or embezzlement. The word 'fidelity' means faithfulness, so this insurance covers losses that happen when an employee is unfaithful or dishonest. This is exactly what the question describes.

Common mistake: Students might mistakenly choose group life assurance because it is a common policy for employees, but it covers death benefits for the employee's family, not financial losses from employee dishonesty.

An exgratia payment is a payment made by an insurance company out of goodwill or kindness, even when they are not legally required to do so under the policy terms. The question describes a payment made 'outside its legal obligation', which is the exact definition of an exgratia payment. It is a voluntary payment to maintain a good relationship with the customer, not a contractual duty.

Common mistake: Students might mistakenly choose 'sum assured' because it is the main payment in an insurance claim, but they forget that an exgratia payment is specifically one made without a legal requirement.

The question specifically asks for a 'social' reason for developing tourism. Social reasons relate to society and how people interact. The promotion of cultural interaction is a social benefit because it involves people from different backgrounds learning about each other's ways of life, traditions, and values.

Common mistake: Students often mistakenly choose 'provision of job opportunities' because it is a major benefit of tourism, but they forget that creating jobs is an economic reason, not a social one.

Transportation is an aid to trade that involves moving goods and people from one place to another. A pipeline is a specific mode of transport that uses a network of pipes laid on a fixed route to move a very limited variety of products, usually liquids or gases like crude oil and natural gas. This makes it the most accurate answer as it perfectly matches the description in the question.

Common mistake: Students may mistakenly choose 'rail' because it also uses fixed routes, but they overlook the key phrase 'limited variety of products' as railways can transport a wide range of different goods.

Digital computers are used for weather forecasting because they process information by manipulating numbers (digits), which is necessary for the complex mathematical calculations in weather models. These computers can handle the large amounts of data from satellites and weather stations to produce a forecast. This technology is a key part of modern communication, which is an essential aid to trade that helps businesses and individuals plan their activities.

Common mistake: Students might mistakenly choose 'mainframe computer' because powerful mainframes are indeed used for weather forecasting, but a mainframe is simply a specific, large type of digital computer.

Planning is the first and most important function of management. It involves deciding in advance what the goals of an organization should be and creating a detailed roadmap on how to achieve those goals. The question describes this exact process: setting objectives (the goals) and determining how to accomplish them (the roadmap).

Common mistake: Students might confuse planning with organizing, but organizing is the next step which involves arranging resources like staff and materials to carry out the plan.

Sales promotion is a marketing strategy that uses short-term incentives to encourage customers to buy a product or service. These incentives include things like free gifts, discounts, coupons, and 'buy one, get one free' offers. The main aim is to boost sales quickly by giving customers an extra reason to buy now.

Common mistake: Students often confuse sales promotion with advertising, but advertising focuses on creating awareness and building a brand image over time, while sales promotion uses short-term incentives like free gifts to drive immediate purchases.

Span of control (misspelled as 'spun of control' in the option) is a principle of management that refers to the number of subordinates a supervisor can directly and effectively manage. The question is asking for the term that defines the limit of functions, activities, and personnel a manager can handle, which is the exact definition of span of control.

Common mistake: Students often mistakenly choose 'delegation of authority' because it also involves a manager and subordinates, but delegation is the act of giving out tasks, not the limit on how many people can be managed.