WAEC Commerce 2022
Questions & Answers

Commerce encompasses all the activities involved in the buying and selling of goods and services, aiming to bridge the gap between producers and consumers, thereby facilitating efficient trade and exchange.

A sole proprietorship is a business owned and operated by a single individual who bears full responsibility for profits and losses, with no legal distinction between the owner and the business.

The Certificate of Incorporation is issued by the registrar of companies upon successful registration, serving as legal proof that the company has been formally created and can commence business.

Share capital is raised by issuing shares to the public through stock exchanges or initial public offerings, providing long-term funding unique to public limited companies.

Promotion is a key element of the marketing mix, involving advertising, sales promotions, public relations, and other activities to inform and persuade potential customers about the product.

The central bank manages the nation's monetary policy by controlling money supply, interest rates, and inflation to ensure economic stability, a role not performed by commercial banks.

An inquiry is a formal request sent by a buyer to a supplier seeking information such as prices, terms, and availability of goods before placing an order.

Oligopoly features a small number of large firms dominating the market, often leading to interdependent pricing and strategic behavior among competitors.

Ex Works (EXW) is an Incoterm where the seller makes the goods available at their premises, and the buyer assumes all risks and costs of transport from that point.

Retailers break the bulk by purchasing in larger quantities from wholesalers and selling in smaller units to individual consumers, providing convenience and variety.

A cooperative society is voluntarily formed by individuals to meet common economic, social, and cultural needs through jointly owned and democratically controlled enterprises.

Advertising can be very expensive, particularly for small businesses, as it requires significant investment in media, creative development, and distribution channels.

The Corporate Affairs Commission (CAC) is responsible for the registration, regulation, and supervision of companies and business names in Nigeria under the Companies and Allied Matters Act.

Savings accounts are designed for accumulating funds and earn interest on the deposited amount, though they may have withdrawal limits to encourage saving.

Distribution involves the physical movement and handling of goods through channels from producers to intermediaries and ultimately to end consumers.

Consequential loss insurance covers the financial losses resulting from business interruption due to fire, complementing standard fire insurance policies.

The Partnership Deed is a written agreement detailing the partners' rights, duties, profit-sharing ratios, and other terms to avoid future disputes.

Public corporations are statutory bodies owned and controlled by the government to provide essential services, often with a focus on public welfare rather than profit.

Consumer goods are final products bought by individuals for personal or household use, such as food, clothing, and appliances.

The Bill of Lading is a legal document issued by the carrier to the shipper, acting as a receipt for goods, evidence of the contract of carriage, and document of title.

Manufacturers' associations, as trade groups, work to protect and advance the collective interests of members through lobbying, standard-setting, and information sharing.

Multiple shops, or chain stores, are managed centrally with standardized policies, pricing, and operations across multiple locations for efficiency and brand consistency.

A receipt is proof of payment provided by the seller to the buyer, acknowledging that the transaction amount has been received.

The money market facilitates the borrowing and lending of short-term funds (up to one year) through instruments like treasury bills and commercial paper.

Product differentiation involves creating real or perceived differences in products to make them stand out from competitors, often through features, branding, or quality.

Speculative risks involve the possibility of gain or loss, such as price fluctuations in commodities or stocks, unlike pure risks which only result in loss or no loss.

The capital market is a financial market for trading long-term debt or equity-backed securities, such as stocks and bonds, to raise capital for businesses.

Port authorities oversee the operation, maintenance, and regulation of seaports, including cargo handling, security, and infrastructure development.

Carriage outwards is the expense incurred by the seller to transport goods to the buyer, treated as a selling expense in accounting.

Mail-order businesses sell products through printed or online catalogs, with orders placed by mail, phone, or internet, and delivery directly to customers.

The Bill of Entry is a customs document used by importers to declare goods for clearance, authorizing their release upon payment of duties.

Public limited companies must disclose financial statements and operations publicly, leading to a loss of privacy compared to private businesses.

Returns outward refer to goods returned by the buyer to the supplier due to defects or errors, recorded as a reduction in purchases.

The Standards Organisation of Nigeria (SON) develops and enforces standards for products to ensure quality, safety, and consumer protection.

The secondary industry involves the processing and manufacturing of raw materials into finished goods, such as in factories and assembly lines.

Telemarketing is a direct marketing method where sales representatives contact potential customers via telephone to promote products or services.

Fixed capital consists of long-term assets like machinery, buildings, and equipment that are used repeatedly in the production process over multiple periods.

Cooperative societies operate on democratic principles, with each member having one vote regardless of their investment, ensuring equal participation in decision-making.

An advice note informs the buyer that goods have been dispatched, including details like quantity and expected delivery, separate from the invoice.

The finance department handles financial planning, budgeting, cash flow management, investment decisions, and reporting to ensure the organization's financial health.