JAMB Commerce 2020 past questions

Checked by the Skolra question team · Last updated 15 October 2026

Ten questions from the 2020 JAMB Commerce paper, with answers and explanations. We hold 40 questions from this paper, and the Skolra app has all of them.

JAMB Commerce 2020 questions and answers

1. 1.

   An undertaking given by a person to another assuring his integrity is

   1. A
      Subrogation
   2. B
      Contribution
   3. C
      Indemnity
   4. D
      Guarantee
      Correct
   Show answerHide answer

   Answer: D

   A guarantee is a formal undertaking given by one party (the guarantor) to another, assuring the honesty, integrity, or creditworthiness of a third party. It is commonly used in financial and business transactions to reduce the risk of default.

2. 2.

   Ships used for international transport are

   1. A
      Container vessels
   2. B
      Ocean liners
      Correct
   3. C
      Tanker ships
   4. D
      Fishing boats
   Show answerHide answer

   Answer: B

   Ocean liners are large ships used for international transport carrying passengers and cargo across international routes in global commerce.
3. 3.

   A customer with ABC Plc sent money through his account to his sister's account in another branch. This Is an example of

   1. A
      Debit card purchase
   2. B
      Check payment from branch
   3. C
      Electronic transfer between accounts
      Correct
   4. D
      ATM cash withdrawal
   Show answerHide answer

   Answer: C

   Electronic transfer of money between bank accounts demonstrates electronic banking - funds move digitally without physical cash handling through banking networks.
4. 4.

   The strategy adopted by a firm that ceases to operate at one or more locations because of inactivity is

   1. A
      Rationalization strategy
      Correct
   2. B
      Diversification strategy
   3. C
      Integration strategy
   4. D
      Expansion strategy
   Show answerHide answer

   Answer: A

   Rationalization is the strategy whereby a firm reorganizes its operations by closing down locations that are inactive or unprofitable. It is aimed at reducing costs and improving efficiency by eliminating redundant units.

5. 5.

   The management function that makes the difference in intensity of behavior is

   1. A
      Organization
   2. B
      Planning
   3. C
      Leadership
   4. D
      Motivation
      Correct
   Show answerHide answer

   Answer: D

   Motivation is the management function that drives intensity of behavior - it energizes employees to work toward organizational goals with commitment.
6. 6.

   Modern means of payment is greatly facilitated by

   1. A
      International trade agreements
   2. B
      Government fiscal and monetary policies
   3. C
      Insurance companies and underwriters
   4. D
      Banking and financial institutions
      Correct
   Show answerHide answer

   Answer: D

   Modern means of payment such as cheques, electronic funds transfers, debit and credit cards, and mobile banking are all facilitated by banking and financial institutions, which provide the infrastructure and trust mechanisms that make cashless transactions possible.

7. 7.

   An author's exclusive right to his published and unpublished works is known as

   1. A
      Copyright
      Correct
   2. B
      Trade secret
   3. C
      Trademark rights
   4. D
      Patent rights
   Show answerHide answer

   Answer: A

   Copyright is an author's exclusive legal right to their published and unpublished works - protecting intellectual property from unauthorized reproduction or distribution.
8. 8.

   Given:
   ₦
   Sales 15,000
   Opening stock 5,600
   Purchases 9,700
   Closing stock 4,400
   Gross profit 4,500
   Net profit 2,000

   From the above data, calculate the rate of turnover

   1. A
      1.98 times
   2. B
      2.50 times
   3. C
      2.18 times
      Correct
   4. D
      3.00 times
   Show answerHide answer

   Answer: C

   Cost of goods sold = Opening stock + Purchases − Closing stock = 5,600 + 9,700 − 4,400 = ₦10,900. Average stock = (5,600 + 4,400) ÷ 2 = ₦5,000. Rate of stock turnover = 10,900 ÷ 5,000 = 2.18 times.

9. 9.

   Given:
   ₦
   Opening Stock 1,800
   Purchases 2,800
   Sales 8,000
   Closing stock 350
   Carriage on sales 500

   Calculate the value of the unused stock.

   1. A
      ₦4,500
   2. B
      ₦1,500
      Correct
   3. C
      ₦2,000
   4. D
      ₦3,500
   Show answerHide answer

   Answer: B

   Cost of goods sold = Opening stock + Purchases − Closing stock = 4,500 + 2,500 − 5,500 = ₦1,500. This formula accounts for the goods available for sale less what remains unsold at the end of the period.

10. 10.

    One of the merits of television as a medium of advertising is that it

    1. A
       Combines sight and sound for maximum emotional impact
       Correct
    2. B
       Low advertising cost
    3. C
       Easy to measure effectiveness
    4. D
       Reaches large audience simultaneously
    Show answerHide answer

    Answer: A

    Television's merit is combining audio-visual elements creating powerful emotional impact - viewers experience both images and sound, enhancing message retention.

The questions come from past JAMB, WAEC and NECO papers. We use software to help write the answer options and explanations, and every answer is checked twice before it goes on the site. How we check

Spotted a wrong answer? Tell us from the app or on the contact page and we check it.

Practise all 40 questions we hold from the 2020 paper, on a timed CBT screen

Every question has the answer and an explanation, in the Skolra app.

Download for WindowsDownload for Mac

About the app · Skolra for Windows · Skolra for Mac