WAEC Commerce 2004 Past Questions

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Which of the following is not a function of commerce?

A.advertising goods
B.creation of goods
C.increasing profit made
D.distribution of goods

(a) What is a Capital Market?

(b) State eight reasons why a bank may dishonour a cheque.

Which of the following is not a function of commerce?

A.advertising goods
B.creation of goods
C.increasing profit made
D.distribution of goods

List and explain five problems associated with international trade.

Which of the following is not a function of commerce

A.advertising goods
B.creation of goods
C.increasing profit made
D.distribution of goods

Explain the following

(a) Prospectus

(b) Share certificate

(c) Underwriting of shares

(d) Ordinary shares

(e)Dividend warrants.

Any activity that changes raw materials into consumer or industrial goods is

A.Constructive
B.assembling
C.extractive
D.manufacturing

State five effects of hire purchase on each of the following

(a) buyer; (b) seller

The divisions of production are

A.industry,banking and services
B.industry,manufacturing and services
C.industry,commerce and services
D.industry, commerce and services

(a) What is the difference between Privatization and Nationalization?

(b) Explain four reasons why a country may choose to privatize state-owned enterprises.

Risks in business are borne by the

A.consumer
B.entrepreneur
C.marketing manager
D.personnel manager

(a) Adama and Awa have teamed up to form a partnership business. Explain five benefits they are likely to derive

(b) State five provisions in the Partnership Deed.

The main aim of credit and thrift societies is to

A.settle disputes among members
B.educate their members
C.secure loans for members
D.encourage savings among members

(a)Distinguish between Authorized Capital and Called-up Capital

(b) Use the following information to answer the questions that follow: XYZ Limited is a trading company. The following transactions took place in the month of February:
Purchase of goods -
32 suitcases at N3,500 each
42 shirts at N800 each.
Additional information:
(i) The cost of transporting goods to the firm's premises was #2,500
(ii) Two workers of the firm were paid wages and salaries of 4,500 each.
(iii) Total sales revenue was N180,000. You are required to calculate the: (a) gross profit (b) net profit.

In which of the following business units are profits shared on the basis of membership patronage?

A.public enterprise
B.partnership
C.co-operative society
D.public limited liability company

(a) Give five reasons why consumers need protection.

(b) Explain five means by which consumers can be protected

A business becomes a separate legal entity after it has

A.started operation
B.been incorporated
C.been insured
D.been accepted by the public

List and describe five ways by which the post office aids business.

The amalgamation of firms engaged in cotton processing and the manufacturing of textiles is

A.horizontal integration
B.vertical integration
C.lateral integration
D.joint venture

State two advantages of using each of the following media of advertising:

(a)Newspaper

(b) Radio

(c) Television

(d )Posters

(e) Direct mail.

A private company's ability to raise capital is limited because

A.its borrowing powers are limited
B.membership does not exceed 50
C.shares cannot be made public
D.of limited collateral security

An increase in the volume of sales is also an increase in

A.profit
B.turnover
C.fixed assets
D.owner's equity

The working capital of a firm is calculated as

A.current assets minus current liabilities
B.current liabilities minus fixed assets
C.value of all assets
D.value of issued capital

Dividend is always expressed as a percentage of total

A.earnings of a business
B.value of shares owned
C.working capital
D.volume of business

Which of the following is a duty of the Employers Association?

A.procuring raw materials at regular intervals
B.establishing a uniform wage scale
C.negotiating with the government on sites for firms
D.discharging workers when production is low

A very effective way of resisting the producer's exploitation is to

A.ban the producer
B.campaign against the company
C.form consumer's association
D.form a trade union

Which of the following makes sales possible without a sales attendant ?

A.telex machine
B.fax machine
C.vending machine
D.franking machine

Which of the following distinguishes supermarkets from other retail outlets

A.use of self-service
B.standard shop fronts
C.sale of food items and household goods
D.provision of parking spaces and delivery services

Manufacturers sell directly to consumers when they

A.want to make profit
B.wish to eliminate all transport costs
C.live far away from them
D.deal in perishable goods

Which of the following is regarded as a document of title in foreign trade?

A.consular invoice
B.bill of lading
C.bill of sight
D.certificate of origin

The most acceptable means of payment in foreign transaction is

A.personal cheques
B.central bank cheques
C.irrevocable letters of credit
D.bankdrafts

Which of the following is not a function of the Ports Authority

A.controlling pollution in rivers
B.providing parking space for vehicles
C.providing storage and warehousing facilities at the docks
D.providing facilities for water traffic movement

Terms of trade refers to

A.agreement between two trading countries
B.the difference between the value of imports and exports
C.the relationship between export and import prices
D.all payments made to other countries and reciepts of them

The aid to trade responsible for the preservation of perishable items is

A.warehousing
B.insurance
C.transportation
D.warehousing

Which of the following abbreviations permits the seller to correct any error in an invoice?

A.F.O.R
B.C.I.F
C.C.E % O.E
D.I.O.U

C % F as a price quotation in foreign trade means that the buyer

A.is responsible for clearing and forwarding the goods
B.has to pay for cost and freight
C.pays for both the freight and insurance
D.pays for insurance only

A bill of exchange is made more negotiable if it has been

A.endorsed
B.accepted
C.honoured instantly
D.given special crossing

A bill of exchange is made up more negotiable if it has been

A.endorsed
B.accepted
C.honoured instantly
D.given special crossing

The primary objective of insurance is to

A.prevent accidents
B.meet uncertainties in future
C.give loan to business men
D.control the flow of cash

Which of the following services is rendered by Central Bank?

A.provision of brokerage services
B.safe keeping of cash and valuables
C.discounting bills of exchange
D.issuing currency notes

Which of the following gives businessmen the opportunity to buy shares of public limited companies?

A.insurance companies
B.commercial banks
C.discount houses
D.the stock exchange

The liquid assets of commercial banks are

A.treasury bills, bills of exchange and cash
B.cash, current account and other money-bearing assets
C.deposit accounts and cash
D.cash only

The insurance policy which covers damages to the body of a ship is

A.marine insurance
B.cargo insurance
C.ship liability insurance
D.hull insurance

Which of the following central bank functions inspires confidence in the banking system in case of emergency?

A.issuing of currency
B.lender of last resort
C.baker's bank
D.banker to the government

Which of the following proves that important documents have reached their destination?

A.business reply services
B.telegram services
C.recorded delivery services
D.express delivery services

The main advantage of sea transport over air transport is

A.capacity
B.speed
C.safety
D.patronage

The mode of transport that conveys goods at low cost per unit is

A.road
B.rail
C.pipeline
D.air

Any activity aimed at creating more markets for a product is

A.packaging
B.branding
C.promotion
D.merchandising

Activities aimed at boosting the image of an organization are regarded as

A.sales promotion
B.advertising
C.public relations
D.consumer protection

When consumers are unaware of the quality of a product, the best advertising technique to use is

A.informative advertising
B.competitive advertising
C.direct advertising
D.indirect advertising