WAEC GCE 2023 Commerce Questions And Answers

NECO GCE COMMERCE

(1a)
Trade refers to the exchange of goods and services between two or more parties, typically involving buying and selling.

(1b)
(i) Home trade refers to trade within the borders of a country, while foreign trade refers to trade between two or more countries.
(ii) Home trade is governed by the laws and regulations of a single country, while foreign trade involves compliance with the laws and regulations of multiple countries.
(iii) Home trade is conducted using the domestic currency of the country, while foreign trade involves the use of different currencies, often requiring currency exchange.
(iv) Home trade generally does not involve tariffs or significant trade barriers as goods can move freely within the country, while foreign trade may be subject to trade barriers such as tariffs, quotas, or embargoes.
(v) Home trade typically involves shorter distances and lower transportation costs compared to foreign trade, which may involve long-distance shipping, air freight, or other transportation methods.
(vi) Home trade involves transactions within the same cultural and linguistic context, while foreign trade often requires dealing with different languages, customs, and business practices.

(1c)
(i) China
(ii) United States
(iii) Germany
(iv) Japan

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*NECO GCE COMMERCE*

*NUMBER TWO*

(2)
(i) Facilitating trade: Commerce plays a crucial role in facilitating the exchange of goods and services between buyers and sellers. It provides a platform for buyers to find sellers and vice versa, thus creating opportunities for trade to occur.

(ii) Promoting economic growth: Commerce contributes to economic growth by generating revenue and creating job opportunities. When trade occurs, it stimulates demand for goods and services, leading to increased production and employment. This, in turn, drives economic growth and development.

(iii) Ensuring efficiency in the distribution of goods: Commerce helps in the efficient distribution of goods from producers to consumers. It involves various activities such as transportation, warehousing, and logistics, which ensure that goods are available to consumers at the right place and time. This efficiency in distribution enhances customer satisfaction and reduces wastage of resources.

(iv) Providing information and market research: Commerce provides information about products, prices, and market trends. Through advertising, marketing research, and market analysis, it helps businesses identify customer needs and preferences, develop effective marketing strategies, and make informed business decisions. This information also benefits consumers by enabling them to make well-informed choices.

(v) Facilitating international trade: Commerce plays a crucial role in promoting international trade. It enables businesses to engage in cross-border transactions, import and export goods and services, and expand their market reach beyond national boundaries. International trade enhances competition, diversifies product options for consumers, and fosters economic cooperation and growth between nations.

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*NECO GCE COMMERCE*

*NUMBER THREE*

(3a)
(i) Article of association: The articles of association are a set of rules and regulations that govern the internal management and operation of a company. It outlines the rights, duties, and responsibilities of the members and the board of directors, as well as the procedures for decision-making and structure of the company. It serves as a contract among the members and defines their relationship and obligations towards the company and each other. The articles of association are required to be filed with the appropriate regulatory authority during the registration process of the company.

(ii) Partnership business: Partnership business is a type of business structure where two or more individuals come together and share the ownership, management, and profits of the business. The partners contribute capital, skills, and resources to the partnership and share the risks and rewards associated with the business. There are different types of partnership, including general partnership and limited partnership, each with its own characteristics and legal requirements.

(iii) Limited liability company: A limited liability company (LLC) is a flexible form of business organization that combines the limited liability protection of a corporation with the tax efficiency and operational flexibility of a partnership. In an LLC, the owners are called members, and their liability is limited to their investment in the company. The members can manage the company or appoint managers to run the day-to-day operations. An LLC is a separate legal entity, providing personal asset protection to its members.

(iv) Certificate of trading: A certificate of trading is a document that confirms that a company is actively engaged in trading activities. It is issued by the regulatory authority or the company’s registration body and serves as proof that the company is conducting business operations in compliance with the applicable laws and regulations. This certificate may be required for various purposes, such as opening a bank account, entering into contracts, or demonstrating the company’s financial standing.

(3b)
(PICK ANY FOUR)
(i) Legal entity: Both public and private limited companies are separate legal entities distinct from their owners and shareholders. This means that they have their own legal rights and obligations, and their owners’ personal assets are protected from the company’s liabilities.
(ii) Limited liability: Both types of companies offer limited liability to their shareholders. This means that the shareholders are generally not personally liable for the debts and obligations of the company beyond their investment in the company.
(iii) Shareholders: Both public and private limited companies have shareholders who own shares in the company and have a financial interest in its performance. The shareholders’ rights, such as receiving dividends and participating in decision-making, are protected by law.
(iv) Directors and management: Both types of companies have a board of directors responsible for the overall management and decision-making of the company. The directors are appointed and may be removed by the shareholders, and they have a fiduciary duty to act in the best interests of the company.
(v) Transferability of shares: In both public and private limited companies, the shares can be transferred from one shareholder to another, subject to any restrictions or requirements specified in the company’s articles of association. This allows for the buying and selling of ownership interests in the company.
(vi) Legal requirements: Both types of companies are subject to legal requirements and regulations. They are required to register with the appropriate regulatory authority, file annual financial statements, and comply with tax and reporting obligations. Additionally, they must adhere to corporate governance standards and fulfill their responsibilities towards shareholders and stakeholders.

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*NECO GCE COMMERCE*

*NUMBER FOUR*

(4a)
(i) Credit sales involve the risk of customers not paying their dues, leading to potential financial losses for the seller.
(ii) Credit sales can cause cash flow problems for businesses, as they might not receive immediate payment for their goods or services.
(iii) Credit sales require businesses to manage and track customer accounts, which can be time-consuming and require additional resources.
(iv) Offering credit to customers may require businesses to incur additional costs, such as credit checks and collection efforts, which can negatively impact profitability.
(v) Credit sales can make it harder for businesses to accurately predict their sales and financial performance, as customer payment behavior and timing can be unpredictable.

(4b)
(i) In hire purchase, the buyer takes ownership of the goods immediately, while in deferred payment, ownership is transferred to the buyer only after full payment is made.
(ii) Hire purchase involves regular installment payments over a fixed period, while deferred payment allows the buyer to postpone payments until a specific date in the future.
(iii) Hire purchase usually includes interest charges in the installment payments, whereas deferred payment may or may not include interest charges.
(iv) In hire purchase, if the buyer fails to make payments, the seller has the right to repossess the goods. In deferred payment, return of the goods is not typically a condition if payment is not made.
(v) Deferred payment offers more flexibility to the buyer, as they can choose when to make the payment in the future, while hire purchase follows a predetermined payment schedule.

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*NECO GCE COMMERCE*

*NUMBER FIVE*

(5a)
Non-indemnity insurance is a type of insurance that provides a predetermined fixed amount of coverage to the insured in the event of a covered loss or occurrence. Unlike indemnity insurance, which reimburses the insured for the actual amount of the loss, non-indemnity insurance pays a set benefit regardless of the actual expenses incurred.

(5b)
(PICK ANY FOUR)
(i) Financial Protection: Insurance provides financial protection against unexpected events or risks. It can help individuals and businesses recover from losses without facing significant financial hardships.
(ii) Risk Sharing: Insurance allows individuals and businesses to transfer the risk of potential losses to an insurance company. By paying a premium, policyholders share the risk with the insurer, reducing their individual financial burden.
(iii) Business Continuity: For businesses, insurance plays a crucial role in ensuring continuity in the face of unexpected events. Business insurance covers various risks such as property damage, liability claims, or business interruption, allowing businesses to recover and continue their operations.
(iv) Peace of Mind: Insurance provides individuals and families with peace of mind knowing that they are protected against potential financial losses. Whether it’s health insurance, life insurance, or property insurance, having coverage can offer a sense of security.
(v) Legal Requirements: Certain insurances, such as auto insurance or workers’ compensation insurance, are legally required in many jurisdictions. Meeting these requirements ensures compliance with the law and protects individuals from potential legal consequences.
(vi) Investment and Savings: Some insurance policies offer investment or savings components. For example, life insurance policies often have a cash value component that can grow over time. This allows policyholders to not only provide financial protection but also accumulate savings or investments over the long term.

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*NECO GCE COMMERCE*

*NUMBER SIX*

(6a)
A jobber refers to a wrestler whose primary role is to lose matches. They are usually less skilled or less popular and are used to enhance the reputation and credibility of other wrestlers by making them look more dominant and skilled in comparison.

(6b)
(i) Financial Protection: Insurance provides financial protection against unexpected events or risks. Whether it’s health insurance, car insurance, property insurance, or any other type, having insurance helps mitigate the financial burden that could arise from accidents, illnesses, or damage to property.
(ii) Risk Management: Insurance helps individuals and businesses manage risks more effectively. By transferring the risk to an insurance company, policyholders can focus on their daily activities without constantly worrying about potential losses or liabilities. This allows for better decision-making and reduces the overall level of uncertainty.
(iii) Peace of Mind: Insurance offers peace of mind to individuals and businesses by providing a safety net and reassurance. Knowing that you are protected against unexpected events provides a sense of security and peace of mind, allowing you to live or operate your business with less stress and worry.
(iv) Promotes Economic Stability: Insurance plays a vital role in promoting economic stability and growth. It allows businesses to take risks and invest in new ventures, knowing that they have protection in case of unforeseen events. Additionally, insurance helps individuals recover from financial losses quickly, which helps maintain their purchasing power and contributes to overall economic stability.

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*NECO GCE COMMERCE*

*NUMBER EIGHT*

(8a)
Marketing refers to the activities involved in promoting and selling products or services, including market research, advertising, sales, and distribution.

(8b)
(i) Advertising helps to create and maintain brand awareness among the target audience, making them more familiar with the brand and its products or services.
(ii) Through advertising, businesses can reach a larger audience and potentially attract new customers who may not have been aware of their offerings before.
(iii) Effective advertising campaigns can lead to increased sales and revenue for a business as they attract more customers and encourage them to make purchases.
(iv) Advertising allows businesses to differentiate themselves from their competitors and showcase their unique selling points, giving them a competitive edge in the market.
(v) Advertising helps to shape and improve a brand’s image by conveying positive messages and values, fostering trust and credibility among consumers.
(vi) Through consistent advertising efforts, businesses can build long-term relationships with their customers, fostering loyalty and repeat purchases.

(8c)
(i) Target audience: Advertising campaigns are designed to reach and appeal to a specific target audience, who are the desired consumers of the product or service being advertised.
(ii) Message: The message refers to the content and communication strategy of the advertisement. It should be clear, compelling, and aligned with the brand’s overall marketing objectives.
(iii) Medium: The medium refers to the platform or channel through which the advertisement is delivered to the target audience, such as television, radio, print, online, or social media.
(iv) Measurement: Measurement involves evaluating the effectiveness of an advertising campaign through various metrics, such as reach, impressions, click-through rates, and sales impact. This allows businesses to assess the Return on Investment (ROI) of their advertising efforts and make necessary adjustments for future campaigns.

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*NECO GCE COMMERCE*

*NUMBER NINE*

(9a)
(i) Protection of public interest
(ii) Preventing market failures
(iii) Environmental protection
(iv) Consumer protection
(v) Stabilizing the economy

(9b)
(i) Efficient decision-making: Delegation allows for decisions to be made at lower levels of the organization, which can result in faster decision making. This is because decisions can be made by those with the most knowledge and expertise in a particular area, rather than requiring the involvement of higher-level managers.
(ii) Empowerment and development: Delegation can empower employees by giving them the authority to make decisions and take ownership of their work. This can lead to increased motivation, job satisfaction, and development of new skills.
(iii) Increased productivity: Delegation allows managers to focus on strategic tasks and higher-level responsibilities, while empowering employees to handle day-to-day operational tasks. This can result in increased productivity as work is distributed more efficiently across the organization.
(iv) Better utilization of resources: By delegating authority, managers can better utilize the skills and knowledge of their team members. This leads to a more optimal allocation of resources and improved efficiency.
(v) Promotes teamwork and collaboration: Delegation promotes teamwork and collaboration as it encourages employees to work together and support each other in achieving shared goals. It fosters a culture of trust and cooperation within the organization.