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2020 WAEC GCE 1ST SERIES COMMERCE OBJ & THEORY QUESTIONS AND ANSWERS
Commerce OBJ
1-10: DADBDABADC
11-20: DBDADACBCD
21-30: BBAABBCABA
31-40: DBDBABCBBA
41-50: CCDBBABABB
(1a)
(1b)
(i) *Land*
Characteristics
= land is fixed in Supply
= no cost of production is involved
(ii) *Capital*
Characteristics
= capital is movable by man
= the reward of capital is interest
(iii) *Entrepreneur*
= the enterpreneur provides the capital for the formation and running of the business
= the entrepreneur is the risk bearer as he gets the credits for success and balance for losers or failure
(iv)*Labour*
Characteristics
= labour is mobile
= Labour requires training
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(3a)
Deregulation:-is the reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.
(3b)
(i)It generally lowers barriers to entry into industries, which assists with improving innovation, entrepreneurship, competition, and efficiency.
(ii)Producers have less control over competitors and this can encourage market entry.
(iii)It benefits the economy because taxpayers no longer have to pay for the expenses of operating regulatory agencies.
(iv)It helps to increase choices and lower prices for consumers.
(v)Businesses can formulate their own strategies and processes, without government interference
(3c)
(i)Effective communication is a vital tool for any business owner. Your success at getting your point across can be the difference between sealing a deal and missing out on a potential opportunity.
(ii)You should be able to clearly explain company policies to customers and clients and answer their questions about your products or services. It is crucial to communicate effectively in negotiations to ensure you achieve your goals.
(iii)Interdepartmental Communication is also important within the business. In other words it helps to foster a good working relationship between you and your staff, which can in turn improve morale and efficiency.
(iv)This guide will explain the key aspects of both verbal and non-verbal communication, how to listen to and understand others, and how to make the best possible first impression on the people you encounter in and around your business.
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(4ai)
bill of lading is a legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried. In other words bill of lading also serves as a shipment receipt when the carrier delivers the goods at a predetermined destination. -WHILE- consignment note is a serially numbered document issued by the transporters when they have received goods that are ready to move. In other words the note contains: The names of the consignor and consignee. Registration number of the vehicle in which the goods are transported. Details of the goods.
(4aii)
Counter trade is the exchanging goods or services which are paid for, in whole or part, with other goods or services, rather than with money. -WHILE- trade barter is a system of exchange where participants in a transaction directly exchange goods or services for other goods or services without using a medium of exchange, such as money.
(4b)
(i)Adjustment through Exchange Depreciation:
Under flexible exchange rates, the disequilibrium in the balance of payments is automatically solved by the forces of demand and supply for foreign exchange. An exchange rate is the price of a currency which is determined, like any other commodity, by demand and supply.
(ii)Devaluation or Expenditure-Switching Policy: Devaluation raises the domestic price of imports and reduces the foreign price of exports of a country devaluing its currency in relation to the currency of another country. Devaluation is referred to as expenditure switching policy because it switches expenditure from imported to domestic goods and services.
(iii)Direct Controls; To correct disequilibrium in the balance of payments, government also adopts direct controls which aim at limiting the volume of imports. The government restricts the import of undesirable or unimportant items by levying heavy import duties, fixation of quotas, etc.
(iv)Adjustment through Capital Movements: A country can use capital imports to correct a deficit in its balance of payments. A deficit can be financed by capital inflows. When capital is perfectly mobile within countries, a small rise in the domestic rate of interest brings a large inflow of capital.
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(6a)
Tabulate;
-Under Jobber-
(i)Jobber is a dealer who deals in buying and selling of securities.
(ii)jobber is prohibited to directly by or sell securities in the stock exchange. Also he cannot directly deal with the investors.
-Under Broker-
(i)Broker is an agent who deals in buying and selling of securities on behalf of his client.
(ii)broker Acts as a link between the jobber and the investors. He trades i.e. buyers and sells securities on behalf of its investors.
(6b)
(i)Economic Barometer:
A stock exchange is a reliable barometer to measure the economic condition of a country. In other words Every major change in country and economy is reflected in the prices of shares.
(ii)Pricing of Securities:
The stock market helps to value the securities on the basis of demand and supply factors. The securities of profitable and growth oriented companies are valued higher as there is more demand for such securities.
(iii)Safety of Transactions:
In stock market only the listed securities are traded and stock exchange authorities include the companies names in the trade list only after verifying the soundness of company. In other words This ensures safety of dealing through stock exchange.
(iv)Contributes to Economic Growth: In stock exchange securities of various companies are bought and sold. This process of disinvestment and reinvestment helps to invest in most productive investment proposal and this leads to capital formation and economic growth.
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(7ai)
(i)Financial Resources.
(ii)Human Resources.
(iii)Educational Resources.
(7aii)
(i)Reducing carbon footprints.
(ii)Improving labor policies.
(iii)Participating in fairtrade.
(iv)Charitable giving.
(v)Volunteering in the community
(7b)
(i)Suppliers: At your gas station, what happens if your suppliers don’t show up with food, beverages, gas and other products? You’ll have nothing to sell, which will have a direct impact on your operation.
(ii)Customers: Customers are a requirement to run a business. If no one is buying, your gas station will have to close its doors.
(iii)Marketing Intermediaries: Middlemen have a direct impact on your business operation. They could be your distributors, wholesalers, and other related people.
(iv)Public Perceptions: Does your gas station have a good reputation with the general public? You may have to work on this as you revitalize the business.
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