waec 2019 commerce essay and obj answer

WAEC-COMMERCE-ANSWERS

Commerce-Obj
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(1a)
(i) Accountant
(ii) Banker
(iii) Company secretary
(iv) Advertising agent

(1b)
(i)He organises and cordinates other factors of production.
(ii)He provides capital needed.

(1c)
(i) Extractive industry : This is the industry that involves in bringing out natural resources from land and sea. Examples: Farmers and fishermen.

(ii) Constructive Industry : It is the type of industry that involves in assembling of manufactured products into usable forms. Tailors and bricklayers.

(iii) Manufacturing Industry : This industry involves in conversion of raw materials to finished goods eg limestone to cement and cotton to textile materials.

(iv) Tertiary Industry : This industry refers to all the people involved in the distribution and exchange of goods produced by the industrial sector eg transporters, exporters.
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(8)
15 cartons of sweets @ N2,000 per carton
= 15 x 2000 = N30,000
25 cartons of milk @ N4000 per carton
= 25 x 4000 = N100,000
154 cartons of sugar @ N3,000 per carton
= 15 x 3000 = N45,000
17 cartons of soap @ N5,000 per carton
= 17 x 5,000 = N85,000

(i) Total cost price
= 30000
100000
45000
85000
= N260,000
Les 10% trade discount = 10% x 260,000
= N26,000
Invoice price = 26,000
– (26,000)/134,000
Less 6% cash discount (8,040)
Cash paid N125,960

(ii) mark up = profit/cost price x 100/1
Therefore 20/100 = profit/125960
Therefore gross profit = 125,960 x 20/100 = N25,192
Selling price = cost price + Gross profit
= 125,960 + 25192 = N151,152

(iii) Net profit
Gross profit – Expense
Total Expanses
Rent and rates = N3,500
Salaries and wages = N8,000
Fuel = N2,000
Electricity = N1,500
= N15,000
Net Profit = 25,192 – 15,000
= N10,192
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*(3a) REASONS FOR DISHONOURING* CHEQUES *1. Insufficient Fund:* When the amount written on a cheque is more than what the drawer has in his account in the bank.
*2. The Death Of The Drawer:* If the bank receives information about the death of its customer, the bank will not honour any cheque presented on the account of the dead customer, until further notice.
*3. Irregular Signature:* It the signature the drawer signs on the cheque differs from the specimen signature in the bank.
*4. Non-Existing Account:* Sometimes. swindlers who have no bank account but possess false cheque books may issue cheques to those whom they have swindled.
*5. Bankruptcy:* if one is judged by a law court to be unable to pay his debts in full. the bank will dishonour any cheque presented, on behalf of that customer.

Q3(b) . *1, To Correct Balance Of Payments Deficit:* If a country imports all sorts of goods Without checks it will suffer from unfavourable balances of trade and payments ~
*2 To Protect Infant Industries:* If they are not protected by restricting imports they will fold up

*3. To Avoid Unemployment:* lf goods from other countries are restricted home industries will not fold up rather they will expand thereby creating more employment opportunities.

*4. Source Of Revenue:* A lot of revenue accrue to the government of a country through the imposition of tariff on goods from other countries. ‘

*5. The Standard Of Living Argument:* Restriction of foreign trade leads to expansion of local industries, which will create more employment opportunities to the Citizens of the country, thereby, raising their standard-of living. 6. To Avoid Dumping: Dumping of goods especially in a nonindustrialised country will occur if the country allows free trade to exist these goods will come from industrialised nations
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(6a)
Adverse or deficit balance of payment

(6b)
(i)Foreign exchange control:Foreign exchange control involves the rationing forign exchange in order to reduc balance of payment deficit
(ii)Expenditure reduction:This is used in order to cut down domestic demand and reduce imports
(iii)Expenditure switching:This involves the manipulationof exchange rates to induce people to patronize locally made goods.
(iv)Fiscal control:This involves the raising of tarriffs ie increase import duties in order to reduce balance f payment deficit
(v)Devaluation:Devaluation cheapens exports and makes imports expensive,thus improving balance of payments
(vi)Reduction of imports: The government can restricts imports by the use of tarriffs,quotas and outright embargo on imports
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2a
-wholesale co-operative

-Retail co-perative

2b
– perpetual existence
-registered as a limited liability
-democratic in nature
-profit is shared based on patronage

2c *Advantages*
-Encourage of saving
-Democratic in nature
-perpetual Existence
-helps in making member’s product

*Disadvantages*
-problem of loan recovery
-high level of illiteracy
-low dividend

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(7a)

-Tracking services

-Door-to-door shipping

– Packaging services

– Overnight service

7b
Advantages and Disadvantages of Railway Transport

1. Dependable:
The greatest advantage of the railway transport is that it is the most dependable mode of transport as it is the least affected by weather conditions such as rains, fog etc. compared to other modes of transport.

2. Better Organised:

The rail transport is better organised than any other form of transport. It has fixed routes and schedules. Its service is more certain, uniform and regular as compared to other modes of transport.

3. High Speed over Long Distances:
Its speed over long distances is more than any other mode of transport, except airways. Thus, it is the best choice for long distance traffic.

4. Suitable for Bulky and Heavy Goods:

Railway transport is economical, quicker and best suited for carrying heavy and bulky goods over long distances.

5. Cheaper Transport:
It is a cheaper mode of transport as compared to other modes of transport. Most of the working expenses of railways are in the nature of fixed costs. Every increase in the railway traffic is followed by a decrease in the average cost. Rail transport is economical in the use of labour also as one driver and one guard are sufficient to carry much more load than the motor transport.

6. Safety:

Railway is the safest form of transport. The chances of accidents and breakdowns of railways are minimum as compared to other modes of transport. Moreover, the traffic can be protected from the exposure to sun, rains, snow etc.

7. Larger Capacity:
The carrying capacity of the railways is extremely large. Moreover, its capacity is elastic which can easily be increased by adding more wagons.

8. Public Welfare:

It is the largest public undertaking in the country. Railways perform many public utility services. Their charges are based on ‘charge what the traffic can bear’ principle which helps the poor. In fact, it is national necessity.

9. Administrative Facilities of Government:
Railways provide administrative facilities to the Government. The defence forces and the public servants drive their mobility primarily from the railways.

10. Employment Opportunities:

The railways provide greater employment opportunities for both skilled and unskilled labour. Over 16 lakh persons are depending upon railways for their livelihood.

DISADVANTAGES

1. Huge Capital Outlay:
The railway requires is large investment of capital. The cost of construction, maintenance and overhead expenses are very high as compared to other modes of transport. Moreover, the investments are specific and immobile. In case the traffic is not sufficient, the investments may mean wastage of huge resources.

2. Lack of Flexibility:
Another disadvantage of railway transport is its inflexibility. Its routes and timings cannot be adjusted to individual requirements.

3. Lack of Door to Door Service:
Rail transport cannot provide door to door service as it is tied to a particular track. Intermediate loading or unloading involves greater cost, more wear and tear and wastage of time.
The time and cost of terminal operations are a great disadvantage of rail transport.

4. Monopoly:
As railways require huge capital outlay, they may give rise to monopolies and work against public interest at large. Even if controlled and managed by the government, lack of competition may breed inefficiency and high costs.

5. Unsuitable for Short Distance and Small Loads:
Railway transport is unsuitable and uneconomical for short distance and small traffic of goods.

6. Booking Formalities:

It involves much time and labour in booking and taking delivery of goods through railways as compared to motor transport.

7. No Rural Service:
Because of huge capital requirements and traffic, railways cannot be operated economically in rural areas. Thus, large rural areas have no railway service even today. This causes much inconvenience to the people living in rural areas.

8. Under-utilised Capacity:

The railway must have full load for its ideal and economic operation. As it has a very large carrying capacity, under-utilisation of its capacity, in most of the regions, is a great financial problem and loss to the economy.

9. Centralised Administration:
Being the public utility service railways have monopoly position and as such there is centralised administration. Local authorities fail to meet the personal requirements of the people as compared to roadways.

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4a

CHOOSE ONLY THRRE

-Commodities exchanges provide a ready and continuous market for the purchase and sale of commodities. This enables the producer to be independent of middlemen and therefore to derive more value from their production activities.

-They provide hedging facilities, which make them necessary in reducing fluctuations in price of raw material and consequently also reducing fluctuations in the price of finished products.

-Commodities exchanges provide the producers an opportunity to transfer their risk to the professional risk-bearers.

-By providing continuity in the trading of commodities, commodities exchanges induce bankers and financiers to lend against commodities.

-Commodities exchanges provide facilities and opportunities for arbitrating and thus equalizing the price levels of commodities at various centers
(4B)

(i) Futures

Long ago, to trade commodities one had to trade commodity futures and you can still trade this way currently. You need to simply open an account with a futures trading firm, obtain the needed front-end trading software and put up a substantial amount of money.
Of course, this method is not for every investor. Futures trading is actually extremely risky and requires professional trading skills and uncommon devotion. An ability to comprehend the essential markets and technical analysis are required to thrive.

(ii). Mutual Funds –
Mutual fund commodities offer not only portfolio diversification because they typically have a low correlation to a broad market index but also diversify various commodities within a single fund. However, there are a variety of fund types with a variety of risks: commodity funds, commodity funds that hold futures, natural resource funds and combination funds.

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5a) Newspaper Advertising

ii) Journals/Magazine Advertising

iii) TV Advertising

iv)Radio Advertising

v) internet Advertising

5b) Personal selling is also known as face-to-face selling in which a person who is the salesman tries to convince the customer in buying a product. It is a promotional method by which the salesperson uses his or her skills and abilities in an attempt to make a sale.

5c) *Advantages*

i) Two-Way Communication

ii) Immediate Feedback

iii) Individual Services

iv) Flexibility

*_Disadvantages_*

-It is a relatively expensive method of selling. High capital costs are required.

-Also, it is an extremely labour intensive method. A large sales force is required to carry out personal selling successfully.

-The training of the salesperson is also a very time consuming and costly.

-And the method can only reach a limited number of people. Unlike TV or Radio ads it does not cover s huge demographic.

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