Neco 2023 Commerce Obj & Essay Question And Answer Now Available

2023 NECO Commerce Obj & Essay Complete Answer.










(i) Information Provider: Advertising serves as a source of information, telling potential customers about products, services, and brands. It educates consumers on what is available, how it can benefit them, and why they should consider it.

(ii) To Persuade Customers to Buy: Advertising helps in arousing the customers interest and by so doing persuades them to buy the product. Through creative and persuasive messaging, advertising aims to influence consumer attitudes and behaviors. It tries to sway opinions, evoke emotions, and convince people to take specific actions, such as making a purchase.

(iii) Reminder Assistant: In a crowded marketplace, where consumers are bombarded with choices, advertising acts as a helpful reminder. It keeps products or brands in the minds of consumers, ensuring they don’t forget about them over time.

(iv) Provision of Technical Information About a Product: Advertising provides information that are needed by the consumers. Such information as quality, price changes and special offers are provided by advertising.

(v) It Helps to Improve the Quality of Goods: Research can be embarked upon to improve quality of products in order to outplay competitors, i.e., healthy competition can help to improve the quality of products.

(vi) To Create Brand Loyalty: Advertising plays a key role in establishing and strengthening brand identity. It shapes how consumers perceive a brand and builds a sense of loyalty and trust, leading to long-term customer relationships.

(vii) Distinguisher: With numerous options available, advertising helps products stand out from the competition. It highlights unique features and qualities that make a product different and better, appealing to specific consumer preferences.

(viii) Social and Cultural Influence: Advertising reflects and shapes societal norms, values, and culture. Advertisements often portray idealized lifestyles, societal aspirations, and values that resonate with the target audience. In doing so, advertising has the power to influence and impact social perceptions and behavior.

(ix) Supporting Sales and Revenue Generation: Ultimately, the primary goal of advertising is to drive sales and generate revenue for the company. By creating demand, attracting new customers, and retaining existing ones, advertising directly contributes to the company’s bottom line and overall business success.


(i) An employer is the individual or entity that owns or manages a business, organization, or company while An employee is an individual who works for an employer and is typically hired to perform specific tasks or roles within the organization
(ii) An employers bears the responsibility and risk of running the business. They are accountable for the success or failure of the organization, including financial outcomes, legal compliance, and strategic decision, whereas an employee is responsible for carrying out his/her assigned tasks effectively and do not bear the overall responsibility for the company’s operations or financial performance.

(i) Performing Job Responsibilities: The primary duty of an employee is to perform the tasks and responsibilities outlined in their job description. They are expected to carry out their work diligently, efficiently, and to the best of their abilities, meeting the set standards and deadlines.

(ii) Following Company Policies and Procedures: Employees have a duty to adhere to the policies, procedures, and rules established by the employer. These may include codes of conduct, attendance guidelines, safety protocols, and other regulations that help maintain a productive and harmonious work environment.

(iii) Respecting Authority: Employees are required to respect and follow the instructions and directives given by their supervisors, managers, or higher-ranking personnel. This includes taking feedback positively and addressing any concerns through appropriate channels.

(iv) Maintaining Confidentiality and Loyalty: Employees have a duty to maintain the confidentiality of sensitive company information, customer data, and trade secrets. Loyalty to the employer involves acting in the best interest of the organization, avoiding conflicts of interest, and not engaging in activities that may harm the employer’s reputation.

(v) Communication and Collaboration: Employees have a duty to communicate effectively with colleagues, supervisors, and other team members. This includes sharing information, providing updates on tasks or projects, and actively participating in team discussions. Collaboration with others fosters a cohesive and productive work environment.

(vi) Continuous Learning and Skill Development: Employees are responsible for continuously improving their skills and knowledge related to their job and industry. They should be open to learning new techniques, technologies, and best practices to enhance their performance and contribute to the growth of the organization.

(vii) Time Management and Punctuality: Managing time effectively is crucial for employees to meet deadlines and achieve goals. Being punctual and respecting designated work hours demonstrates commitment and professionalism, leading to increased productivity and a positive work culture.


Insurance is a financial arrangement or contract between an individual or a business (the policyholder) and an insurance company. In exchange for regular payments called premiums, the insurance company agrees to provide financial protection and compensation in the event of specified risks or losses.

(i) Principle of Utmost Good Faith:
The principle of utmost good faith requires both the policyholder and the insurer to act honestly and transparently in all dealings related to the insurance contract. The policyholder must disclose all relevant information accurately and completely to the insurer at the time of application. Likewise, the insurer must provide clear and honest information about the terms and conditions of the policy. This principle ensures that both parties have a full understanding of the risks and obligations involved in the insurance contract.

(ii) Principle of Insurable Interest:
The principle of insurable interest states that the policyholder must have a valid financial interest in the insured object or person. In other words, the policyholder must suffer a financial loss or detriment if the insured event occurs. For example, a person can insure their own life because their death would cause financial hardship to their family. Insurable interest prevents individuals from insuring unrelated parties or objects solely for potential gain in case of loss.

(iii) Principle of Indemnity:
The principle of indemnity states that insurance aims to restore the policyholder to the same financial position they were in before the insured loss occurred, with no intention of profiting from the loss. In the event of an insured claim, the insurance company compensates the policyholder for the actual financial loss suffered, up to the policy limit. The goal is to avoid overcompensation and prevent individuals from intentionally causing losses to profit from insurance claims.

(iv) Principle of Contribution:
The principle of contribution applies when a risk is insured with multiple insurers under separate policies. In such cases, the policyholder cannot claim more than the actual loss from all the insurers combined. Each insurer will contribute proportionately to the loss based on the sum insured under their policy. This principle prevents policyholders from recovering more than the total loss and ensures equitable distribution of liability among insurers.

(v) Principle of Subrogation:
The principle of subrogation allows the insurance company, after paying a claim to the insured for a covered loss, to assume the rights and remedies of the insured against any third party responsible for the loss. In other words, if someone else is liable for the insured’s loss, the insurance company can legally pursue that third party to recover the amount paid to the insured. Subrogation helps prevent double recovery for the same loss and allows insurers to control costs by holding responsible parties accountable.

(vi) Principle of Proximate Cause:
The principle of proximate cause determines the primary or most direct cause of the insured loss. In the event of multiple causes leading to a loss, the insurance company will consider the proximate cause, which is the most immediate and effective cause. This principle helps in determining whether the loss is covered by the insurance policy or falls under excluded circumstances. Insurers assess the chain of events leading to the loss to ascertain the applicability of coverage.

(vii) Principle of Loss Minimization:
The principle of loss minimization expects the insured to take reasonable steps to minimize the extent of loss or damage in the event of an insured peril. When an insured event occurs, the policyholder is required to act responsibly and prevent further damage or loss as far as possible. Failure to take appropriate measures to mitigate the loss may result in reduced insurance coverage or claim rejection.


(i) Personalized Customer Service: Small businesses can provide more personalized and attentive customer service compared to larger enterprises. They often have direct interactions with customers, understanding their needs, and tailoring their offerings accordingly.

(ii) Niche Market Focus: Small businesses can carve out a niche in the market by catering to specific customer segments or offering unique products or services that larger competitors might overlook. By focusing on a specialized area, they can build a loyal customer base.

(iii) Flexibility and Adaptability: Small businesses are more agile and can quickly adapt to changing market trends and customer demands. They have fewer bureaucratic processes, allowing them to make prompt decisions and implement changes as needed.

(iv) Local Community Support: Small businesses often enjoy strong support from their local communities. Customers tend to prefer shopping locally, fostering a sense of loyalty and encouraging word-of-mouth referrals.

(v) Lower Overhead Costs: Operating on a smaller scale, small businesses generally have lower overhead costs compared to larger corporations. This cost advantage can help them stay competitive in pricing and profitability.

(vi) Innovative and Creative Solutions: Small business owners are often more involved in day-to-day operations and can come up with innovative solutions to challenges, leading to increased efficiency and differentiation in the market.

(i) Small retail outlets are relatively smaller in size and physical footprint while Large retail outlets are significantly larger, often operating in multiple locations or even nationally and internationally.
(ii) Small retailers may offer a more limited product range, focusing on specific items that cater to local preferences and demands while Large retailers have a vast product assortment, including a wide variety of products from different brands and categories.
(iii) Small retail outlets may have a more localized presence, often known within their immediate community but not widely recognized beyond that area WHILE Large retail outlets have a prominent market presence, with strong brand recognition and a widespread customer base.
(iv) Small retailers may not have the buying power or economies of scale to offer significant discounts or lower prices compared to larger competitors WHILE Large retailers often benefit from bulk purchasing and negotiating power, allowing them to offer competitive prices and discounts.

Examples of small scale retail outlet are:
(i) Hawking
(ii) Street retailing
(iii) Small stores
(iv) Mobile shops
(v) Tied shops.
(vi) Vending machines.

Examples of large scale retail outlet are:
(i) Departmental stores
(ii) Super markets
(iii) Multiple stores
(iv) Hypermarket.
(v) Co-operative shops
(vi) Mail order.


A second-tier security market is a market where securities of companies that cannot be traded in the first-tier security market are quoted. It refers to a stock exchange or market specifically designed for trading securities of smaller or less-established companies. These companies may not meet the requirements for listing on the main or first-tier stock exchange. The second-tier market provides an avenue for these smaller businesses to raise capital through the sale of their securities (such as stocks or bonds) to investors.

(i) Incorporation as a Public Limited Company:
To be eligible for admission into the second-tier securities market, the company must be incorporated as a public limited company. A public limited company is a legal entity that allows the general public to buy and sell its shares on the stock exchange. This type of incorporation offers greater transparency and accountability as it requires adherence to specific regulatory requirements and financial reporting standards.

(ii) Minimum of 100 Shareholders:
The second-tier securities market mandates that the company must have a minimum of 100 shareholders. This requirement ensures a broader distribution of ownership and reduces the concentration of control within a limited number of individuals or entities. Having a diverse shareholder base can also enhance the company’s stability and protect the interests of various stakeholders.

(iii) General Undertaking with Stock Exchange Market:
As part of the admission process, the company is required to sign a general undertaking with the stock exchange market. This undertaking serves as a formal agreement wherein the company pledges to comply with all the rules, regulations, and listing requirements set forth by the stock exchange. It also binds the company to maintain transparency in its operations and provide accurate and timely information to the market.

(iv) Provision of Equity Share for the Investing Public:
To promote broader public participation and liquidity in the company’s shares, the company must make at least 10% of its equity shares available for the investing public. By offering a portion of its ownership to a wider audience, the company can attract more investors, increase its market capitalization, and create a more liquid market for its shares.

(v) Submission of Three-Year Financial Statements:
As part of the admission process, the company is required to submit its audited financial statements for the past three years to the stock exchange. This step ensures that the company’s financial performance, stability, and growth trends are thoroughly evaluated before being listed in the second-tier securities market. The financial statements provide valuable insights into the company’s financial health and help investors make informed decisions.

(vi) Limit on Shareholder’s Capital Acquisition:
The second-tier securities market imposes a restriction that prevents any single shareholder from acquiring more than 75% of the company’s issued capital. This measure aims to prevent excessive concentration of ownership and to maintain a balanced distribution of control. By capping the maximum ownership percentage, the market promotes a more competitive and dynamic environment, reducing the potential risks associated with concentrated control by a single entity or individual.

(i) Initial Public Offering (IPO)
(ii) Listing by Introduction
(iii) Reverse Takeover (RTO)
(iv) Merger with a Listed Company
(v) Direct listing
(vi) Privatization and Relisting


An economic grouping refers to a cooperative and collaborative association of countries within a specific geographic region to promote economic integration, facilitate trade, and foster regional development among its member countries.

(i) Trade Facilitation: ECOWAS aims to create a single market and a customs union among its member states to promote free movement of goods, services, and people across national borders, reducing trade barriers and facilitating regional trade.

(ii) Economic Integration: The organization seeks to harmonize economic policies, regulations, and standards among member countries to foster regional economic integration and promote intra-regional trade.

(iii) Monetary Cooperation: ECOWAS works towards achieving monetary cooperation and convergence, aiming to establish a single currency and central bank for the region.

(iv) Infrastructure Development: The community aims to improve and develop critical infrastructure, such as transportation, energy, and communication networks, to enhance regional connectivity and facilitate economic activities.

(v) Agricultural Development: ECOWAS focuses on promoting agricultural development, food security, and rural development to alleviate poverty and enhance agricultural productivity in the region.

(vi) Industrial Development: The community seeks to stimulate industrial growth and diversification by supporting the development of industries and value chains within member states.

(vii) Regional Peace and Security: ECOWAS is committed to promoting regional peace, stability, and security, and it plays an active role in conflict prevention, resolution, and peacekeeping efforts in the region.

(viii) Human Capital Development: The organization aims to improve education, health, and social services to enhance the quality of life and human capital development in member countries.

(ix) Environmental Protection: ECOWAS focuses on environmental conservation and sustainable development to address environmental challenges and foster resilience to climate change in the region.

(x) Promoting Political Cooperation: Beyond economic objectives, ECOWAS works towards strengthening political cooperation among its member states, supporting democratic governance, and upholding human rights and the rule of law.


(i) Central Bank: The central bank, such as the Central Bank of Nigeria (CBN), is the apex monetary authority in the country. It regulates the money market, issues currency, and implements monetary policies to control inflation, stabilize the currency, and promote economic growth.

(ii) Commercial Banks: Commercial banks are financial institutions that accept deposits from the public and provide various financial services. In the money market, they lend and borrow funds from each other and from the central bank to meet short-term liquidity needs. They offer money market instruments like treasury bills and certificates of deposit to manage their cash reserves.

(iii) Discount Houses: Discount houses are specialized financial institutions that buy and sell short-term money market instruments, such as treasury bills and government securities. They provide liquidity to the market and play a crucial role in facilitating interbank lending.

(iv) Money Market Funds: Money market funds are investment funds that invest in short-term money market instruments, offering a safe and liquid investment option to individual and institutional investors. These funds are managed by professional fund managers and provide relatively stable returns.

(v) Stock Exchange: While primarily known for the stock market, the stock exchange also facilitates the trading of money market instruments. Investors can buy and sell treasury bills, commercial papers, and other short-term debt securities on the stock exchange.

(vi) Non-Bank Financial Institutions: Non-bank financial institutions, such as finance companies and microfinance institutions, also participate in the money market by issuing and trading short-term debt instruments to manage their financial needs.

(i) Soft commodities are agricultural products that are grown, such as wheat, corn, cocoa, coffee, and cotton WHILE Hard commodities are natural resources extracted from the earth, including crude oil, gold, silver, and metals like copper and aluminum.
(ii) Soft commodities are generally perishable and require careful storage and handling WHILE Hard commodities are typically non-perishable and have a longer shelf life.
(iii) Soft commodity prices are influenced by factors such as weather conditions, crop yields, and global demand for food products WHILE Hard commodity prices are influenced by factors like geopolitical tensions, production levels, technological advancements, and industrial demand.
(iv) Soft commodities are primarily used as raw materials in the food and textile industries such as cocoa in chocolate production and cotton in textile manufacturing WHILE Hard commodities are used in various industrial applications, such as crude oil in energy production, gold in jewelry, and metals in manufacturing and construction.


Customs and Excise Authority is a government agency responsible for overseeing and regulating the import and export of goods and collecting excise duties and taxes on specific goods within a country. The primary function of the Customs Authority is to enforce customs laws and ensure compliance with trade regulations at border crossings, ports, and airports.

(i) Customs Clearance and Inspection: One of the essential functions of the Customs Authority is to clear and inspect goods entering or leaving the country. Customs officers examine shipments to verify the accuracy of declared contents, assess duties and taxes, and enforce import/export restrictions and prohibitions.

(ii) Revenue Collection: Customs Authority is responsible for collecting customs duties, tariffs, and other taxes on imported goods. These revenues contribute significantly to the government’s income and are utilized for public services, infrastructure development, and other essential expenditures.

(iii) Trade Facilitation: Customs Authorities work to facilitate smooth and efficient trade flows by streamlining customs procedures and documentation. They aim to reduce bureaucratic delays, promote transparency, and create a business-friendly environment for importers and exporters.

(iv) Enforcement of Trade Regulations: The Customs Authority enforces trade regulations, such as quotas, embargoes, and import/export restrictions, to protect domestic industries, ensure fair trade practices, and adhere to international agreements.

(v) Security and Border Control: Customs officers play a vital role in maintaining border security by preventing illegal smuggling of goods, drugs, weapons, and other contraband items. They collaborate with other law enforcement agencies to safeguard national interests and protect citizens from potential threats.

(vi) Trade Data Collection and Analysis: Customs Authorities collect and maintain valuable trade data, including import and export statistics, which provide insights into the country’s trade patterns, economic performance, and market trends. This data is essential for economic planning, policy formulation, and decision-making.


(i) Bond:
A bond is a debt instrument issued by governments, corporations, or other entities to raise capital from investors. When an entity issues a bond, it is essentially borrowing money from investors. The bond issuer promises to pay the bondholders periodic interest payments, known as coupon payments, and return the principal amount (face value) at the bond’s maturity date. Bonds are typically considered lower risk than stocks and are widely used to raise long-term funds for various projects and investments.

(ii) Carrier:
A carrier refers to a company or individual that provides transportation services to move goods or passengers from one location to another. Carriers can be airlines, shipping companies, trucking companies, railways, or other transportation providers. They play a crucial role in facilitating the movement of goods and people within and between countries, contributing to global trade and economic activities.

(iii) Communication:
Communication is the process of transmitting information, ideas, and messages between individuals, organizations, or groups. Effective communication is vital in commerce as it facilitates the exchange of business-related information, instructions, orders, negotiations, and feedback between various stakeholders, such as customers, suppliers, employees, and management. Good communication skills are essential for successful business interactions, marketing, customer service, and building strong business relationships.

(iv) Debenture:
A debenture is a long-term debt instrument issued by companies to raise funds from the public or institutional investors. Unlike bonds, debentures are not secured by specific assets but are backed only by the general creditworthiness of the issuing company. Debenture holders are creditors of the company and receive regular interest payments, usually semi-annually, until the maturity date. At maturity, the company repays the principal amount to the debenture holders. Debentures are commonly used by corporations to finance expansion projects and meet long-term financial needs.

(v) Transportation:
Transportation refers to the movement of goods, people, or services from one place to another. Transportation is a critical component of supply chain management and international trade. It enables the efficient distribution of goods, raw materials, and finished products to consumers and businesses. Different modes of transportation, such as road, air, sea, and rail, are used depending on the distance, nature of goods, and urgency of delivery. Efficient transportation systems play a significant role in economic development, as they reduce costs, increase market reach, and enhance accessibility to goods and services.


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