2021 WAEC Commerce Question and Answer

2021 WAEC Commerce Question and Answer

2021 WAEC Commerce Questions and Answers

Commerce questions and answers.

1. Which of the following must be present in an agency by agreement?

  • A. intentions
  • B. will
  • C. consent
  • D. authority

ANSWER: A ( intentions )

2. An agreement to sell is distinguishable from sale because in the former, the transfer of goods is

  • A. not anticipated
  • B. not discussed
  • C. deferred
  • D. immediate

ANSWER: C ( deferred )

3.Mr Amusa says to Mr Bello ‘i will sell you this hat for N30’. And Mr Bello replied ‘i will pay N29’. The contract is

  • A. an offer and acceptance
  • B. an implied contract
  • C. a complete simple contract
  • D. an offer but no acceptance

ANSWER: D ( an offer but no acceptance )

4.Nationalization of an industry means that its ownership becomes that of

  • A. government
  • B. shareholders
  • C. taxpayers
  • D. indigenes

ANSWER: A ( government )

5.The comprehensive import supervision scheme was set up by the federal government in order to

  • A. reverse Nigeria’s unfavourable balance of trade
  • B. promote fair trade between Nigeria and other countries
  • C. counteract all fraudulent business deals of Nigeria with other nationals
  • D. ensue that import into Nigeria are of the correct quality, value and quantity

ANSWER: D ( ensue that import into Nigeria are of the correct quality, value and quantity )

6. Commerce can be defined as the study of how

  • A. man utilizes the resources in his physical environment
  • B. man produces, distributes and consumes his goods and services
  • C. man buys, sells and distributes goods and services
  • D. raw materials are changed into finished goods

ANSWER: C (man buys, sells and distributes goods and services)

7. …… activity turns processed raw materials into consumer and industrial goods is described as

  • A. extractive
  • B. manufacturing
  • C. constructive
  • D. processing

ANSWER: B ( manufacturing )

8. The production process that combines two or more raw materials into one end product is

  • A. conditioning
  • B. blending
  • C. merging
  • D. synthesis

ANSWER: B (blending)

9. A demonstration of social responsibility by a business is the payment of

  • A. taxes to government
  • B. dividends to shareholders
  • C. interests on loans
  • D. premium on insurance

ANSWER: A (dividends to shareholders)

10. A distinguishing characteristics of a limited liability company is that it

  • A. is a collection of many sole proprietors
  • B. is a multiple partnership
  • C. can sue and be sued
  • D. has limited resources

ANSWER: C (can sue and be sued)

10. What is an advantage of telephone communication in business?
A copies of documents may be transmitted
B messages can be corrected before transmission
C problems may be discussed
D visual contact is made.

11. Which methods of transport are most likely to be used to transport oil from Australia to
Singapore?

A canal and sea
B pipeline and sea
C rail and pipeline
D road and air.

12. What is an advantage of containerisation in sea transport?

A avoidance of customs duty
B carriage of one type of product at a time
C fast turnaround of ships at ports
D quick unpacking of goods at docks.

13. A washing machine manufacturer wishes to promote a newly-designed product.
Which advertising medium would reach the most consumers?

A cinema
B flyers
C radio
D television.

14. Which factor plays a part in the increasing volume of air freight that is being transported
worldwide?

A availability of larger aircraft
B fluctuating aviation fuel prices
C increased international terrorism
D increased tourism.

15. Which airport facility is likely to be the most important to a business exporting goods through an airport?

A currency exchanges
B duty free shops
C lifting gear
D luggage handling.

16. Warehousing is unlikely to be part of the chain of distribution for

A canned food.
B clothes.
C milk.
D toys.

17. The diagram shows part of a credit note.

How is the document used?

A The buyer sends it to the supplier after goods have arrived damaged.
B The buyer sends it to the supplier’s bank to pay for goods supplied.
C The supplier sends it to the buyer after goods have been returned damaged.
D The supplier sends it to the buyer’s bank to cancel over-payments.

18. Which of the following take place when firms producing at different stages in the same industry combine.

A. Conglomeration
B. Vertical integration
C. Horizontal integration
D. Cartel.

19. What are the fixtures and fittings in a balance sheet?

A. Liquid capital
B. Current assets
C. Fixed assets
D. Working capital.

20. One of the functions of sea ports is the provision of ______

A. Berthing and land facilities
B. Loading and offloading facilities
C. Control room for relaying radio messages
D. Ware house of storage of cargo.

The following are past Questions and Answers :

(a) Differentiate between Industry and commerce

(b) List and explain four activities of those engaged in commercial occupation.

ANS: (b) (i) Banking: Those working as bankers provide facilities for saving, borrowing, investing, and payments for business transactions.

(ii) Advertising: Advertising practitioners inform potential buyers and sellers about the existence, nature, use, price of goods and services through various advertising media.

(iii) Insurance: Insurers provide cover for business risks and compensation in case of loss etc.

Explain five benefits that would be derived and five losses that would be suffered when a Sole trader admits other partners.

ANS: (a) Benefits to a Sole Trader

(i) Better decision making

(ii) Possibility of more profit

(iii) Greater degree of continuity etc.

(b) Losses to Sole Trader

(i) The death of a general partner may collapse the business

(ii) Disagreement among members can affect the smooth running of the business

(iii) Actions of a partner is binding on the firm. Therefore misconduct of an unscrupulous partner may ruin the business.

(a) State five features of partnership business.

(b) Explain five reasons why government participate in business.

Explain the following insurance terms:

(a) proximate cause
(b) contribution
(c) utmost good faith
(d) re-insurance;
(e) contract of non-indemnity (compensation).

List and explain four documents involved in the formation of a Public Limited Company.
ANS: (a) Declaration:

(i) This is a statement in writing to the registrar of Companies by the promoter.

(ii) It is states that the requirement of the companies have been compiled with

(iii) It is a declaration that adequate capital has been raised etc.

(b) Trading Certificate:

(I) This is document issued by the Registrar of companies

(II) It gives the public company the right to commence the business for which it was formed, etc.

(a) Explain the following:

(i) counter trade;
(ii) entreport trade;
(iii) import trade;
(iv) invisible trade.
(b) State four burners to International trade.

ANS: (i) Counter Trade: This is a system of International trade where countries instead of paying cash for the goods they purchase from other Countries will pay.

(ii) Entreport Trade: This is a system of trade where goods imported into a country are re-export while the goods are still in the same form as they were received.

(iii) Import Trade: This is a system of trade where goods are brought into a country from another country.

(iv) Invisible Trade: This is a type of International trade involving intangible products such as services or Banking, shipping services colu requires payment of money.

Fresh answers to the main questions will be uploaded here. keep reshreshing this page as you prepare for the exam.

More Questions

1. Commerce is defined as the study of how

A. Man utilizes the resources in his physical environment

B. Man produces, distributes, and consumes his goods and services

C. Man buys, sells, and distributes goods and services

D. Raw materials are changed into finished goods

2. The type of activity which turns processed raw materials into consumer and industrial goods is described as

A. Extractive

B. Manufacturing

C. Constructive

D. Processing

3. The production process that combines two or more raw materials into one end product is

A. conditioning

B. blending

C. merging

D. synthesis

4. A demonstration of social responsibility by a business is the payment of

A. taxes to government

B. dividends to shareholders

C. interest on loans

D. premium for

5. A distinguishing characteristic of a limited liability company is that it

A. is a collection of many sole proprietors

B. is a multiple partnership

C. can sue and be sued

D. has limited resources

6. Which of the following takes place when firms producing at different stages in the same industry combine?

A, Conglomeration

B. Vertical integration

C. Horizontal integration

D. Cartel.

7. Which of the following groups is paid first when a firm liquidates?

A. Perference

B. Debenture holders

C. Ordinary

D. Cummulative preference

8. Compulsory dissolution of a business can arise from

A. an agreement by the owners

B. a declaration by a court of law

C. the termination of its life

D. an unfavourable economic climate.

9. What are fixtures and fittings in a balance sheet?

A.Liquid capital

B. Current assets

C. Fixed assets

D. Working capital

10. Government impose import duties for the following reasons EXCEPT

A. to raise revenue for other services

B. to act as as a retaliatory measure against other governments

C. to discourage the redistribution of income at home

D. to protect home industries from external

11. Sole enterprise may flourish best in

A. a mining business a retailing business

B. an oil exploration business

C. a car assembly business

D. a retailing business

12. The rate at which a country’s exports exchange for its imports is called

A. balance of payments

B. balance of trade

C. terms of payment

D. terms of trade.

13. The production process that combines two or more raw materials into one end product is

A. conditioning

B. blending

C. merging

D. synthesis

14. A demonstration of social responsibility by a business is the payment of

A. taxes to government

B. dividends to shareholders

C. interests on loans

D. premium on insurance

15. Which of the following statements is TRUE about sea transport?

A. All ships have specific routes to

B. All ships must be insured at every journey

C. All ships are insured separately from the crew

D. All ships normally arrive at their destination with goods.

16. The postal organization which preceded in Nigerian Postal Service is

A. Post and Telecommunications

B. Post and Telephone

C. Post and Teleprinter

D. Post and Telegraph.

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