2018 WAEC Commerce Questions and Answer | Download All Here
Below are Commerce Questions and Answers
Question 1: This question was on the completion of chart showing main divisions of commerce
Explain the following, give one example of each:
Primary production;
Secondary production;
Tertiary production.
Observation: This was the most popular among by the candidates. However, some did not complete the chart correctly. Also, most of the candidates could not explain the meaning of Tertiary production. The meaning of tertiary production should be noted. Tertiary production is a type of production that involves the provision of commercial and professional activities to satisfy human wants .Examples are Teaching, Nursing, Banking etc.
Question 2: Explain the following:
Limited liability;
Separate legal entity;
Certificate of incorporation;
Participating preference shares;
Ordinary shares.
State five advantages of Public Corporation
Observation: This question was on the limited liability company and performance was fair. Most candidates could not explain participating preference share and certificate of incorporation was confused for certificate of trading. The following were expected from the candidates:
Participating Preference Shares: These are shares that allow holders to have further claim on the profit of the company after ordinary shareholders have received a specified amount of the dividend.
Certificate of Incorporation: This is the document issued by the Registrar of companies certifying the legal existence of a company after certain legal requirement for registration has been met.
Question 3: What is channel of distribution?
With the aid of diagrams show four examples of channels of distribution.
Explain five advantages of home trade.
Observation: The performance of the candidates in this question was good. They were able to define channel of distribution and diagrammatically illustrated the various channels used in distribution of goods. However in part (b) of the question candidates failed to state the following points:
- Less documentation are needed in home trade as compared with the foreign trade.
- Less risk is involved in home trade, hence insurance for goods is optional.
- Government regulations and policies are the same in home trade but differs in foreign trade.
Question 4: What is credit?
List and explain six principles of insurance.
Observation: This question was attempted by many candidates but their performance was below average. The candidates could not explain the following insurance terms correctly.
Contribution: This insurance principle states that if an object is insured with more than one insurance company, the claimable amount from the insurance companies is the individual ratable proportion of the loss.
Insurance Interest: This principle provides that only the person who will suffer financial loss if the event to be insured against occurs will be allowed to take the insurance policy.
Indemnity: This restores the insured to his/her former position before the occurrence of the loss. It is not the compensation paid by the insurer as many candidates wrote.
Question 5: Explain five factors affecting the choice of transport of frozen products.
State five disadvantages of air transport.
Observation:This was poorly attempted by the candidates. It was an application question requiring the knowledge of the factors determining the choice of transport frozen foods. Such factors are:
- The availability of appropriate means (refrigerated vehicles, ships etc)
- Safe and secured means of delivery
- Speed /Urgency etc.
Question 6: Define the term market segmentation.
List six factors that influence market segmentation.
State five advantages of advertising.
Observation: This question was poorly attempted. Very few candidates got the definition of market segmentation and factors that influence market segmentation. The following is the expected answers:
Market segmentation refers to the division of a market into identifiable submarkets/groups to enable the marketer to reach each submarket with the most appropriate blend of marketing mix. The factors that influence market segmentation are Population density, age of the consumers, sex of the consumers, income level of the consumers etc.
Question 7: What is a contract?
List five elements of a valid contract.
Explain four ways by which a contract may be discharged
Observation:This was very popular among the candidates. The candidates’ performance was above average.
Question 8: Explain the following documents used in international trade:
Indent;
Bill of lading;
Consular invoice;
Certificate of origin;
Bill of exchange;
Observation: This question was well attempted by the candidates. But some of the candidates could not properly explain some of the documents like:
Indent: A document which allows the importer to order goods from the exporter through his agent. Indent can be closed or opened. A closed indent restricts the agent to a named manufacturer from whom the goods must be bought while an open indent gives the agent a free hand in obtaining the goods from any source.
Consular invoice: A consular invoice is prepared by the exporter and signed by the consular of the importing country to vouch for the correctness of the prices stated on the invoice. The document is used to calculate duties payable to the custom authority. It is used to prevent the importer from cheating the country on import duties.
Question 9: Differentiate between Nationalization and indigenization.
State six reasons why a country would indigenize some industries.
Observation:This question was popular for among the candidates. Their performance was good.
Question 10: This question was on the calculation of the following:
Issued capital;
Un-issued capital;
Total assets;
Working capital.
Observation: Few of the candidates attempted this question and their performance was good.