Neco Gce 2024 Commerce Objective & Essay Question And Answer Now Available

2024 NECO GCE COMMERCE

01-10: CAEBABDADB
11-20: AEACDAEEAA
21-30: BDCEEDBBBB
31-40: BECBECBBEE
41-50: BADABCAEBC
51-60: CCBCADDDBE

(1)
(PICK ANY FIVE)
(i) Limited Liability: In a private limited liability company, the shareholders’ liability is limited to the amount they have invested in the company. This means that their personal assets are protected in case the company faces financial difficulties or bankruptcy.

(ii) Separate Legal Entity: A private limited liability company is considered a separate legal entity from its owners. It can own property, enter into contracts, and be sued or sue in its own name, independent of the shareholders.

(iii) Private Ownership: The ownership of a private limited company is restricted to a specific number of shareholders, often between 1 and 50 (depending on local regulations). Shares are not available to the general public on the stock exchange, and ownership is typically held within a small group of individuals or entities.

(iv) Transfer of Shares:
The transfer of shares in a private limited company is generally restricted by the company’s articles of association. This ensures that shares are only transferred to approved persons or entities, maintaining control over ownership.

(v) Perpetual Succession: A private limited liability company enjoys perpetual succession, meaning that its existence is not affected by the death, insolvency, or resignation of its members. The company continues to operate as long as it is not dissolved by the relevant authorities.

(vi) Management Structure: The management of a private limited company is usually carried out by directors appointed by the shareholders. The directors are responsible for the day-to-day operations, while the shareholders elect the board of directors during the annual general meeting.

(vii) Regulation and Disclosure:
A private limited company must comply with regulatory requirements such as filing annual financial statements and maintaining records. However, these requirements are generally less stringent than those for public companies.

(viii) Limited Ability to Raise Capital:
Unlike public companies, private limited companies are restricted in their ability to raise capital through public share offerings. They may raise funds through private placements or loans, but they cannot issue shares to the public on the stock market.

(2a)
(PICK ANY FOUR)
(i) Access to Resources: Countries can obtain raw materials or goods unavailable domestically.
(ii) Economic Growth: International trade boosts a nation’s economy by increasing production and generating export revenue.
(iii) Specialization and Efficiency: Nations can focus on producing goods they are most efficient at, optimizing resource use.
(iv) Lower Costs and Prices: Trade encourages competition, leading to reduced production costs and more affordable goods.
(v) Market Expansion: It provides businesses access to international markets, increasing sales and profitability.
(vi) Job Creation: Export industries generate employment opportunities and reduce unemployment rates.

(2b)
(PICK ANY FOUR)
(i) Comparative Advantage: Nations trade because it allows them to specialize in goods and services where they have a relative efficiency advantage over other countries. This specialization leads to increased productivity and mutual benefits.
(ii) Resource Differences:
Countries engage in trade due to unequal distribution of resources globally. Some nations have abundant natural resources, while others lack them. Trade ensures that every country can access the resources it needs for development.
(iii) Technology and Knowledge Exchange:
Trade facilitates the transfer of advanced technologies and expertise between nations. By importing goods embedded with new technologies, countries improve their productivity and industrial capacities.
(iv) Market Access and Diversification:
Engaging in international trade enables countries to access larger markets beyond their domestic borders. This helps businesses grow, reduces dependence on local demand, and minimizes the risk of economic downturns.
(v) Economies of Scale:
When countries produce goods for export, they benefit from larger-scale production, leading to lower unit costs and increased efficiency. This also enhances their competitiveness in the global market.
(vi) Economic and Political Stability:
Trade builds interdependence among nations, which can lead to stronger political relationships and economic stability. It reduces the likelihood of conflicts and promotes peaceful international cooperation.

(3)
(i) Invoice: An invoice is a commercial document issued by a seller to a buyer, detailing the goods or services provided. It includes information such as the description, quantity, price, terms of payment, and total amount due. It serves as proof of the transaction and a request for payment.

(ii) Indent: An indent is a written purchase order sent by a buyer to a seller specifying the type, quantity, and quality of goods required. It may also include instructions on packaging, shipping, and delivery. Indents are commonly used in international trade transactions.

(iii) Freight Note: A freight note is a document issued by a carrier or shipping company detailing the charges for transporting goods. It includes information such as the weight or volume of the goods, the distance covered, and any additional services provided during transit.

(iv) Bill of Entry: A bill of entry is a legal document submitted to customs authorities when importing goods into a country. It contains details about the imported goods, such as their description, quantity, value, and country of origin. It is used for customs clearance and calculation of duties.

(v) Price List: A price list is a document issued by a seller to inform buyers of the prices of goods or services offered. It may include details such as product descriptions, unit prices, discounts, and terms of sale. Price lists help buyers make informed purchasing decisions.

(4a)
A current account is a type of bank account designed for frequent and flexible transactions. It is primarily used by businesses, organizations, and individuals for managing day-to-day financial operations. Unlike savings accounts, current accounts typically do not offer interest on deposits but allow unlimited withdrawals and deposits.

(4b)
(PICK ANY FOUR)
(i) A savings account is primarily designed for individuals to save money while earning interest on the deposited funds. WHILE, a current account is intended for frequent and regular transactions, mainly used by businesses and organizations.
(ii) Savings accounts earn interest on the deposited funds, providing a financial incentive for savings WHILE current accounts usually do not offer interest as their primary purpose is transactional convenience.
(iii) Savings accounts often have restrictions on the number of withdrawals allowed within a specific period, encouraging saving habits. WHILE a Current accounts allow unlimited withdrawals, enabling frequent transactions without restrictions.
(iv) Savings accounts rarely provide an overdraft facility, WHILE current accounts commonly offer overdrafts, allowing account holders to withdraw more than their account balance.
(v) Savings accounts are generally used by individuals for personal purposes. WHILE Current accounts are primarily used by businesses, organizations, and professionals to manage daily financial activities.
(vi) Savings accounts typically require a lower minimum balance compared to current accounts, which often have higher minimum balance requirements to cater to the needs of businesses.

(4c)
(PICK ANY FOUR)
(i) Issuance of Currency: The central bank is responsible for issuing the nation’s currency and maintaining its value.
(ii) Regulation of Commercial Banks: It supervises and regulates the operations of commercial banks to ensure stability in the financial system.
(iii) Control of Monetary Policy: The central bank manages the money supply and interest rates to achieve economic stability and control inflation.
(iv) Lender of Last Resort: In times of financial crises, the central bank provides emergency funding to commercial banks to prevent collapses.
(v) Management of Foreign Exchange Reserves: The central bank manages the country’s foreign exchange reserves and ensures exchange rate stability.
(vi) Government Banker and Debt Manager: It acts as a banker to the government, handling its accounts, issuing public debt, and managing funds.

(5a)
Business resources refer to the assets, materials, capabilities, and inputs that a business uses to operate effectively and achieve its goals. These resources can be tangible (physical assets) or intangible (skills, knowledge, or goodwill) and are essential for production, decision-making, and value creation.

(5b)
(PICK ANY FOUR)
(i) Human Resources: This includes the employees, management, and workforce of a business. Human resources contribute through skills, knowledge, expertise, and labor, playing a critical role in executing the company’s objectives.
(ii) Financial Resources: Financial resources refer to the capital and monetary assets a business requires for operations, such as cash, investments, loans, and credit. Adequate financial resources are essential for funding operations, expansion, and growth.
(iii) Physical Resources: These are tangible assets such as buildings, machinery, equipment, vehicles, and raw materials. Physical resources are necessary for the production and delivery of goods or services.
(iv) Technological Resources: Technology includes tools, software, and systems that enhance efficiency, productivity, and communication. Businesses rely on technology for innovation, automation, and maintaining competitiveness in the market.
(v) Informational Resources: These include data, market research, and insights that help businesses make informed decisions. Access to accurate and timely information supports planning, marketing, and strategic development.
(vi) Natural Resources: These are resources obtained from the environment, such as land, water, minerals, and energy sources. Businesses that rely on agriculture, mining, or energy production depend heavily on natural resources for their operations.

(6)
(i) Shares: Shares represent units of ownership in a company. When individuals purchase shares, they become part-owners or shareholders of the company, entitling them to a portion of the company’s profits (dividends) and voting rights in corporate decisions, depending on the type of shares they hold.

(ii) Debentures: Debentures are long-term debt instruments issued by a company to borrow money from the public. They do not grant ownership rights but guarantee repayment of the principal amount along with a fixed interest rate. Debentures are secured against the company’s assets or may be unsecured.

(iii) Bond: A bond is a fixed-income financial instrument issued by governments or corporations to raise capital. It represents a loan made by an investor to the issuer, with the promise to repay the principal amount on a specified date and pay periodic interest.

(iv) Stock: Stock refers to the total ownership capital of a company. It represents a claim on a portion of a company’s assets and profits. Stocks are traded on stock exchanges, and their value fluctuates based on market performance and company profitability.

(v) Gilt-Edged: Gilt-edged securities are high-grade bonds issued by governments or reputable organizations. They are considered very secure investments with low risk of default, often offering fixed returns. The term originates from the high-quality paper and printing used for these securities.

(6)
(i) Shares: Shares represent units of ownership in a company. When individuals purchase shares, they become part-owners or shareholders of the company, entitling them to a portion of the company’s profits (dividends) and voting rights in corporate decisions, depending on the type of shares they hold.

(ii) Debentures: Debentures are long-term debt instruments issued by a company to borrow money from the public. They do not grant ownership rights but guarantee repayment of the principal amount along with a fixed interest rate. Debentures are secured against the company’s assets or may be unsecured.

(iii) Bond: A bond is a fixed-income financial instrument issued by governments or corporations to raise capital. It represents a loan made by an investor to the issuer, with the promise to repay the principal amount on a specified date and pay periodic interest.

(iv) Stock: Stock refers to the total ownership capital of a company. It represents a claim on a portion of a company’s assets and profits. Stocks are traded on stock exchanges, and their value fluctuates based on market performance and company profitability.

(v) Gilt-Edged: Gilt-edged securities are high-grade bonds issued by governments or reputable organizations. They are considered very secure investments with low risk of default, often offering fixed returns. The term originates from the high-quality paper and printing used for these securities.