WAEC Commerce 2013 Theory — Question 1

Model answer

(a) Commerce can be defined as the act of buying and selling of goods. It involves all acts of trading and aids to trade meanwhile industry is the act of combining efforts to produce a new product. Commerce deals with exchange and distribution of goods while industry involves actual production of goods. (b)(i) Activities involved in industry: Extractive industry — this involves exploring natural resources from their sources. Manufacturing industry — this involves conversion of raw materials to a more usable and consumable finished goods. Constructive industry — this involves combining two inputs to produce a new output. (ii) Activities involved in commerce: Banking — this involves all activities which involves movement of cash between buyers and sellers. Insurance — this involves providing cover for goods and employees involved in trading activities to cater for unforeseen contingencies. Transportation — this involves moving of goods and passengers from one location to another, i.e. from point of production to point of sellers etc. Warehousing — this involves providing storage facilities for goods earlier produced before there is demand for same. Advertising — this involves creating awareness for a product so as to improve sales of the product.