All 50 questions from the West African Examinations Council (WAEC) Commerce 2023 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
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Buying and selling products through a network of digital devices is A. e-transfer.
E-Commerce involves all forms of buying and selling which go through digital format — buyers and sellers meet through an online means and also does the transaction through an online means.
Which of the following is not a factor of production?
Staffing is a process of recruiting required staff in an organisation. Thus, it is not part of factors of production (which are Land, Labour, Capital and Entrepreneur).
Industrial, commercial and service are types of A. specialization.
Occupations are in different categories and forms. Some of the categories are industrial occupation, commercial occupation, service occupation etc.
The reward for capital is A. rent.
As for factors of production, while reward for land is rent, reward for labour is wages, reward for entrepreneur is profit, the reward for capital is interest.
A document in which the internal regulations of a company are stated is A. Partnership Deed.
Article of Association is the document that states the regulation of the company. It specifies the relationship of the company internally.
A business that can obtain capital through the sale of shares is a A. sole proprietorship.
A public company can raise capital by issuing shares to the public for subscription since it can have unlimited number of owners.
A problem associated with barter is A. difficulty in collecting debt.
One of the problems of trade by barter is measurement of good to be exchanged. In most cases, the person in the most serious need of what another person has, had to part with unreasonable quantity of his/her goods.
Dissolution of a partnership could arise from A. a fall in output.
One of the factors that can lead to dissolution of a partnership business is death of a partner most especially if the partner is a major contributor to the business.
A source of capital to a cooperative society is A. contribution.
Contribution of the members of the cooperative is the major source of capital to the cooperative.
Which of the following activities does not belong to the extractive industry?
Barbing is service. This will be categorised under tertiary industry (not the extractive industry, which includes drilling, farming and mining).
The excess value of total assets over total liabilities is A. working capital.
The difference between the total assets and liabilities is capital of the owner of the business — capital owned.
A voluntary association of businessmen who are not in the same line of business is a A. bureau de change.
Chamber of commerce is the association of businesses from different line with the aim of promoting trade.
A similarity of a private and public company is that they A. are required to publish their final accounts.
Both the private company and public company are issued certificate of incorporation by the Corporate Affairs Commission.
Which of the following is not a type of security?
Overdraft is a soft loan. It is short-term loan, thus, it is not secured. That is why it is not categorised as part of security loan.
An organization that could strive for improvement in electricity and telephone services to users is A. a consumer's association.
Consumer's association is formed to protect the right of consumers.
The business in which sale of goods involves use of vehicles is a A. chain store.
A mobile shop is a retail outlet that moves from one place to another. Such outlet requires vehicle to move.
The arrangement for the conveyance of goods abroad is performed by the A. ports authority.
One of the major functions of the Clearing and Forwarding agent is arranging export and import of goods for the owners.
One of the barriers to foreign trade is A. trade liberalization.
Embargo is a restriction which a government of a country place on an imported goods. Thus, it is a barrier in international trade.
The term 2%/15 net 30 represents a A. cash discount.
That term means that a customer will enjoy 2% discount off his total invoice if he pays off within 15 days out of the 30 days in a month.
The instrument shown in the diagram is a A. warrant.
The diagram represents an example of a crossed cheque.
The two lines on the instrument shows that it is A. paid.
The two parallel lines drawn on a cheque indicate that it is crossed.
The instrument will not be valid on A. October 25, 2023.
The life span of a cheque is three months. Thus, by the 25th of July, the cheque becomes invalid (dated 24-04-23, so valid until 24-07-23).
The rate at which a country's exports exchange for its imports is A. terms of trade.
Terms of trade specify the rate at which the export pays for import.
When a seller wishes to be paid before supplying goods, he would send the buyer a A. consular invoice.
Proforma invoice is sent to the buyer to show him the details of what he ordered as well as the quoted price, transport and discount as well as possible delivery date.
A bill of lading that is tagged clean means that the goods being delivered A. are paid for.
A clean bill of lading is a document that shows that the goods are delivered without damage.
If opening and closing inventories of a business are D500 and D300 respectively and cost of sales is D1,200, rate of turnover will be A. 4.0 times.
Average stock = (opening stock + closing stock)/2 = (500+300)/2 = 400. Rate of turnover = cost of sales/average stock = 1200/400 = 3.0 times.
The function of money that makes it generally acceptable is A. a medium of exchange.
The unit of account function is the major reason that makes money generally acceptable because all goods can be given a unit in terms of figure.
A reduction in the value of a country's currency in relation to that of other countries is A. inflation.
When the value of the currency declines in relation to other currencies, such is termed devaluation of currency.
The penalty paid for not off-loading goods at a port within the stipulated time is A. charge.
Demurrage is the penalty which the owner of a consignment will pay for not offloading the goods from the ship as at stipulated time.
An advantage of road transport over other means of transport is that A. canteen services are provided during the course of transportation.
Using road transportation as a means to deliver goods, the seller can offer at the door delivery to the buyer and also terminal delivery by agents can be eliminated.
A factor to be considered in selecting a means of transporting fish is the A. supply of fish.
The nature of the fish will determine the means of transportation. If it is a life fish, the means of transportation will be different from a smoked fish etc.
The bank that conducts research on an economy, thereby identifying obstacles to growth is the A. central bank.
Development bank is the bank that aimed at solving some economic problems that hinder the growth of the economy.
An advantage of advertising is that A. awareness is created on the existence of products.
Through advertising, the general public will be aware about the existence of a product.
The means by which a firm obtains information before introducing new products is A. advertising.
Market research is all efforts aimed at gathering the information about a market before introducing a product.
A duty of the principal to his agent is to A. stop the sale of good in transit.
The major duty of the principal to his agents is to pay the agent for his service.
An element of a valid contract is A. operation of law.
One of the elements that make a valid contract is capacity to contract by the parties involved.
An example of after-sales service is A. sorting and grading of goods.
If a seller assures of free replacement of parts of a product after the sales has been completed, such is regarded as after sales services.
Which of the following modes of transport could be used to convey both liquid and gas? A. Tramp
Tankers can be used to transport both liquid and gas from one place to the other. In fact, in developing countries, it is more than the use of pipeline.
Advertising designed to sell more of a company's products than other brands is A. competitive.
A persuasive advertisement will try to convince listeners that its product is better than others. Thus, convincing them to buy/use its product — however, the aim of selling more than other brands specifically points to competitive advertising.
In a contract of sale, the amount deposited with the seller for a particular product by a buyer is A. acceptance.
Consideration is what a buyer has to part with in order to get the goods or services of the seller/provider.
The use of brand names and trademarks is to A. control the supply of goods.
Brand names and trademarks prevent imitation by competitors.
A disadvantage of privatization is that A. there is decline in the supply of goods.
Through privatisation, the capitalists become more richer because of exploitation of the public.
Operating a state owned enterprise with the intention of making more profit is A. commercialization.
When a state owns enterprise aimed at making more profit, such enterprise has been commercialised.
The department that ensures that products are made available to consumers is A. finance.
Marketing department handles promotion and distribution of goods to consumers.
Which of the following is not a form of sales promotion? A. Free samples
Demonstration is awareness and not sales promotion.
Divesting government interest in a business to the public is A. privatization.
Privatisation is defined as the act of transferring ownership and interest of government in public corporation to private individuals.
The management function that is concerned with coordinating business resources efficiently is A. controlling.
The organising function of management has to do with proper coordination of the resources of the business.
An organizational chart is used to A. determine the departmental objectives and targets.
Organisational chart also known as organogram shows the hierarchy of staff in an organisation.
Which of the following countries is not a member of the European Union? A. Bolivia
Bolivia is a country in South America. Thus, it cannot be a member of an organisation that is Europe oriented.
One of the aims of ECOWAS is to A. encourage foreign investments.
One of the major aims of ECOWAS is to improve transportation and communication among West African states.
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