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2020 NECO COMMERECE OBJ AND ESSAY QUESTIONS AND ANSWERS
Commerce-Obj!
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(1)
(i)printing of Nigeria’s currency.
(ii)Supports government in budget preparation
(iii)sets interest rates
(iv)Regulates Naira’s value
(v)They make rules that guide commercial banks in the country
(1i)
printing of Nigeria’s currency; They ensure money is being printed and distributed and not only to print but to also ensure that the money is evenly distributed throughout the country. In other words They ensure that the country must at least have printed currency at any time. Once this key responsibility is met, it gives room for the Centre bank to perform other functions.
(1ii)
Supports government in budget preparation; Once the government makes budget for a year they look up to the central bank for help and for advice on what may be the outcome of its budget. That is the main reason why the Central bank governor must be brilliant enough to read what might be the outcome of government budgeting system at the end of each year. The central bank governor must be able to know the effect a budget can have on the country’s economy. It is also the role of the central bank to give out cash to the government so as to embark on the approved budget.
(1iii)
sets interest rates; As a financial institution, it is also their primary duty to set certain amount as interest on any citizen account. With this, commercial banks in the country must follow the instructions or directive given by the central bank of Nigeria before adding any interest to the amount of money borrowed by an indigene of the country.
(1iv)
Regulates Naira’s value; the Central Bank is to ensure that there’s a normal value of the country’s currency when compared to foreign currencies. This can be achieved by making sure that the policies, environment and business or monetary atmosphere are favorable.
(1v)
They make rules that guide commercial banks in the country; the central bank ensure that there is normality when it comes to banking system in Nigeria. The Central bank makes sure that citizens have total trust in the country’s banking system by creating rules and regulations to guide the activities of all commercial banks in the country.
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(2a)
Multilateral trade; this agreements are commerce treaties among three or more nations. In other words the agreements reduce tariffs and make it easier for businesses to import and export. Multilateral trade agreements strengthen the global economy by making developing countries competitive.
(2b)
(i)Reduced dependence on your local market
(ii)Increased chances of success
(iii)Innovation
(iv)Economic advantage
(i)Reduced dependence; Your home market may be struggling due to economic pressures, but if you go global, you will have immediate access to a practically unlimited range of customers in areas where there is more money available to spend, and because different cultures have different wants and needs, you can diversify your product range to take advantage of these differences
(ii)Increased chances of success; Unless you’ve got your pricing wrong, the higher the volume of products you sell, the more profit you make, and overseas trade is an obvious way to increase sales. In support of this, UK Trade and Investment (UKTI) claim that companies who go global are 12% more likely to survive and excel than those who choose not to export.
(iii)Innovation; Because you are exporting to a wider range of customers, you will also gain a wider range of feedback about your products, and this can lead to real benefits. In fact, UKTI statistics show that businesses believe that exporting leads to innovation increases in break-through product development to solve problems and meet the needs of the wider customer base. 53% of businesses they spoke to said that a new product or service has evolved because of their overseas trade.
(iv)Economic advantage; Take advantage of currency fluctuations export when the value of the pound sterling is low against other currencies, and reap the very real benefits. Words of warning though; watch out for import tariffs in the country you are exporting to, and keep an eye on the value of sterling. You don’t want to be caught out by any sudden upsurge in the value of the pound, or you could lose all the profit you have worked so hard to gain.
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(7a)
A catalogue is a book or magazine containing details and pictures of items currently being offered for sale, especially as used by companies that do much of their business by mail order
(7b)
An order is a stated intention, either spoken or written, to engage in a commercial transaction for specific products or services. From a buyer’s point of view it expresses the intention to buy and is called a purchase order. From a seller’s point of view it expresses the intention to sell and is referred to as a sales order.
(7c)
A pro forma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. The invoice will typically describe the purchased items and other important information, such as the shipping weight and transport charges.
(7d)
Quotation is a document sent to a potential customer offering to sell goods or services at a certain price, under specified conditions. It is used to let a potential customer know the cost of goods or services before they decide to purchase them.
(7e)
A receipt is a written acknowledgment that something of value has been transferred from one party to another. It typically includes the date and a description of the item the purchaser bought. It also includes a description of the item the buyer purchased.
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(6)
(i) Aids in Decision-Making
(ii) Means of Coordination
(iii) Provides Effective Leadership
(iv) Boosts Morale and Motivation
(v) Increases Managerial Efficiency
(i) Aids in Decision-Making: The information collected through communication aids in decision-making. Communication facilitates access to the vital information required to take decisions.
(ii) Means of Coordination: Communication is an important tool for coordinating the efforts of various people at work in the organisation. This helps the manager explains to the employees the organizational goals, modes of their achievement and also the interpersonal relationships amongst them.
(iii) Provides Effective Leadership: A communication skill bring manager near to his subordinates and exchange ideas and submits appropriate proposals, knows their opinions, seeks advices and make decisions. This enables a manager to win confidence of his subordinates through constantly communicating with them and removing probable misunderstandings.
(iv) Boosts Morale and Motivation: An effective communication system instills confidence among subordinates and workers ensuring change in their attitude and behaviour. The main cause of conflict and dissatisfaction is misunderstanding which can be removed through communication skills. The removal of misunderstanding makes manager and his subordinates understand each other and create good industrial relations. This boosts up the morale of the people and motivates them to work harder.
(v) Increases Managerial Efficiency: The manager conveys the targets and issues instructions and allocates jobs to the subordinates. All of these aspects involve communication. Thus, communication is essential for the quick and effective performance of the managers and the entire organization.
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(5a)
Limited liability Company is a form of business organization with the liability-shield advantages of a corporation and the flexibility and tax pass-through advantages of a partnership. They are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.
(5b)
(i)Separate entity
(ii)Flexibility
(iii)Simplicity
(iv)Limited liability
(i)SEPARATE ENTITY: Limited Liability Company is a separate legal entity in almost many states; meaning thereby that it can own a property, retain attorneys, sell or buy a property, etc on its own. It is distinct from its owners. Owners are not responsible for the obligations of the corporation.
(ii)FLEXIBILITY: While the corporations continue to operate in case of any death or insolvency or if anybody leaves. But this condition is not compulsory in the case of Limited Liability Company. It is fully the member’s decisions to whether or not continue in the same company or create their new one.
(iii)SIMPLICITY: There is a simplicity in the case of documentation and carrying out operations of the company. There is a less record keeping comparatively.
(iv)LIMITED LIABILITY: One of the features of Limited Liability Company is the limited liability of the employees, members, managers, etc. It simply means that the members are not responsible for the misdeeds, legal faults of the other members. Hence, they have protection for the same. But they are responsible for their own wrong legal misconducts.
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(3a)
An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.
(3b)
Production is the organised activity of transforming resources into finished products in the form of goods and services; the objective of production is to satisfy the demand for such transformed resources
(3c)
Fixed capital is the portion of total capital outlay of a business invested in physical assets such as factories, vehicles, and machinery that stay in the business almost permanently, or, more technically, for more than one accounting period.
(3d)
An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded. The core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange.
(3e)
Specialization is a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency
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