All 50 questions from the West African Examinations Council (WAEC) Commerce 2024 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
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1. The development of Commerce was promoted by A.
Commerce involves buying and selling of goods. It is when manufacturer produces that there will be goods to be sold which will bring about commerce.
2. A major setback of e-commerce in West Africa is A.
The communication infrastructure in Africa generally and West Africa in particular is poor. There are still many places that do not have access to network.
3. Conversion of raw materials into finished goods to answer A.
Primary production involves exploration of raw materials while secondary production involves conversion of raw materials to semi-finished or finished goods.
4. A source of finance peculiar to public companies is A.
Sales of shares involves inviting the general public to buy the share of a company. This is one of the major sources of finance to Plc.
5. An example of an entrepreneur is a A.
A sole proprietor is an entrepreneur because he sources for fund to establish a business.
6. A partner who loses his capital only, in case of bankruptcy is A.
A limited partnership is the partner whose liability is limited to the amount contributed.
7. Ship building is an activity under A.
Ship building is production but it is industrial production because it involves production of heavy duty goods.
8. The process of making goods and providing services for consumption is A.
Production is the process of creating utility.
9. A disadvantage of a sole trader is that he A.
The sole trader in most cases, has unlimited liability in the case of liquidation, his personal property can be used to pay up debt.
10. An organization formed mainly by traders in the same line of business is a A.
Trade association is an association of people who are in the same time of business.
11. Raw materials are classified as A.
Raw materials form part of stock of a firm and stock are circulating capital because they are used up within a year.
12. A factor that determines the occupation of people living along coastal areas is A.
In the coastal area, majority of the people are found to be fishermen because of the availability of river which is a natural resources.
13. An advantage of self-service to customers is that it A.
Self-service such as in most supermarket promotes impulse buying because most times, as the buyer walks through the shopping he/she tends to see more goods that interest him/her. (Use the information below to answer questions 14 and 15: Opening stock 22,000, Purchases 20,000, Debtors 12,000, Creditors 8,000, Closing stock 8,000, Overdraft 5,000.)
14. Calculate average stock.
Average stock = (Opening stock+closing stock)/2 = D(22,000+8,000)/2 = D15,000.
15. The value of current liabilities is A.
Current liabilities: Creditors 5,000 + Overdraft... = D13,000 (per worked key: creditors 5,000, overdraft 12,000 wait per key: current liabilities: Creditors 5,000; Overdraft 12,000... Total per key computed).
16. One of the aims of a consumer's association is to advocate for A.
Consumer's association is formed to fight against the exploitation of consumers either in terms of high prices or quality product/service.
17. Prefinancing production is a wholesale's function to A.
The wholesaler sometimes gives the producer money ahead so as to encourage continuous production. This is called prefinancing.
18. An adverse balance of payment could be corrected through A.
Adverse balance of payments means that total imports exceed total export. Thus, one of the surest ways to correct it is by increasing export.
19. A price quotation that includes the cost of delivering the goods up to the ship but excludes the cost of loading is A.
FOB means Free on Board i.e. the goods becomes the liability of the buyer when loaded. The seller collects charges up to loading.
20. To inform the buyer that goods are in transit, the seller sends A.
An advice note is the document sent by seller to buyer to inform him/her that the goods have been dispatched.
21. A financial institution established to raise funds for people who wish to build homes is a A.
The major function of mortgage bank is providing financing for development of building.
22. A market where items are sold in lots or by description is a A.
(Per the WAEC key, answer marked as A.)
23. The insurance policy that covers a company against cashiers' dishonesty is A.
Fidelity guarantee insurance is the insurance taken against loss an employer can incur as a result of dishonesty of employee.
24. Which of the following instruments is not a means of payment? A.
Debit notes are documents to indicate indebtedness of the receiver to the issuer.
25. To correct an overcharge for goods on an invoice, the seller sends the buyer A.
A credit note is a document that indicates indebtedness of the issuer to the receiver.
26. A market for long-term loans is the A.
Capital market is generally a market for long-term securities.
27. The most suitable means of transporting liquid and gas over long distances within a country is by A.
Pipeline is the most suitable means for transporting liquid like gas over a long distance.
28. A computer's main storage device is the A.
Hard disk stores all the data processed on the computer permanently until deleted.
29. The amount that an assured receives if he discontinues a life policy is A.
The surrender value is the amount paid to an assured when he withdraws his/her assurance policy.
30. Which of the following means of advertising generates a wider coverage? A.
As far as most places in the world is concerned, radio network still has highest coverage.
31. A cheque that bears a date later than the current date is A.
If the date on a cheque is late, then such cheque becomes a source cheque (post-dated).
32. The holder of a bill who wishes to dispose it before maturity would be paid A.
When a holder of a bill wants cash earlier than the date of maturity of the bill, then he take it to discount houses for discounting.
33. A medium of advertising that could be used by a hawker to promote sales is A.
A hawker goes around the street. Thus, he can advertise his goods by giving people free sample which can stimulate them to buy.
34. Which of the following activities would make continuous production possible?
Through warehousing, finished goods can be named from the factory to warehouse before they are taken to the buyers. By doing this production activities can continue.
35. An advantage of personal selling is that A.
Personal selling involves the producer selling directly to the buyer. This can generate immediate feedback.
36. The protection of an author's published work is A.
Copyright is the right given to an author for his work to protect him from plagiarism.
37. Under which Act could a buyer of a faulty television set claim for replacement? A.
Standard Organization Act is the law that protects against buying, production and consumption of counter-fact products.
38. Which of the following statements is an advantage of pen mating?
(As printed in the WAEC key: the cover will help to protect the actual product intended; the content of the book.)
39. Which of the following retail businesses sell without shop assistants? A.
Mail order store is an online business, thus, no shop assistant will be needed.
40. The right of an unpaid seller includes the right to A.
An unpaid seller can sue the buyer (debtor) for the amount unpaid.
41. One of the legislations that protects consumers is the A.
Sales of Goods Act is the act that states how transaction of buying and selling should be fair.
42. Internal and external factors that affect how a business functions is A.
Business environment involves all the internal and external factors which affects how a business operates.
43. The management function that provides guidance and supervision to subordinates is A.
The directing function of a management involves guiding the employees and supervising their works to ensure that it is in line with the organization objectives.
44. A document issued by the captain of a ship to acknowledge receipt of goods is a A.
Dock receipt is the document issued by carrier or their agents to acknowledge the receipt or goods at a specify location.
45. A reason for the privatization of the petroleum industry is to A.
By privatizing the petroleum industry, many private businesses can join the industry.
46. A disadvantage of commercialization to consumers is that A.
When a company is commercialized, it means that the major objective of the firm has changed to profit-making. Thus, the price of products of the firm can increase.
47. One of the social responsibilities of a business to the community is A.
Controlling pollution will make the community saver for habitation. Thus, it is a social responsibility on the part of the business.
48. An objective of the Niger Basin Commission is to A.
Niger Basin Commission is aimed at enhancing effective irrigation of the Niger River Basin.
49. The act of reducing government intervention in business is A.
Deregulation involves allowing the market to dictate prices of goods. By this, it means the government will not intervene.
50. Which of the following is not a problem of ECOWAS? A.
Existence of meagre resources in some ECOWAS countries is contributing to the major problem of the organization as some of them are more or less parasite to the other. (As printed, WAEC key marks B as the exception/answer.)
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