Commerce MCQs FPSC NTS PPSC Past Papers Test Questions – Page 2

An asset that pays a fixed amount of cash at regular intervals for a specified number of years is known as

(A) annuity
(B) perpetuity
(C) simple interest
(D) compound interest

The answer is: (A) annuity

How much is the profit of the insurance company if:

I. premiums received = 80,000
II. claims by policy holders = 50,000
III. interest on investments = 5,000
IV. administration costs = 10,000

(A) 20,000
(B) 25,000
(C) 45,000
(D) 50,000

The answer is: (B) 25,000
[80,000+5,000-50,000-10,000=25,000]

A shareholder in a public limited company can sell his/her shares by

(A) advertising them in a newspaper
(B) asking the company to buy them back
(C) offering them on the stock exchange
(D) listing them online

The answer is: (C) offering them on the stock exchange

A letter of credit is opened on behalf of

(A) an exporter
(B) an importer
(C) a buying agent
(D) a bank

The answer is: (C) a buying agent
Normally, banks issues a letter of credit (LC) on behalf of a buying agent.

A person or a firm that brings buyers and sellers together and receive a commission when the deal is done, is called

(A) agent
(B) broker
(C) retailer
(D) underwriter

The answer is: (B) broker
A broker is a person or a firm that brings buyers and sellers together and receive a commission when the deal is done.

Which of the following is not a function of a retailer?

(A) offering after-sales services
(B) exchanging faulty goods within warranty period
(C) offering services to both consumer and wholesaler
(D) providing a link between manufacturer and wholesaler

The answer is: (D) providing a link between manufacturer and wholesaler
A retailer does not act as a link between manufacturer and wholesaler.

Retailer means a person supplying goods to the general public for the purpose of:

(A) Sale
(B) Purchase
(C) Consumption
(D) Demand

The answer is: (C) Consumption