WAEC 2020 COMMERCE QUESTIONS AND ANSWERS

2020 Waec Commerce Answers
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Commerce OBJ
1-10 BADBBDBCCB
11-20 CDAACCBDCA
21-30 ACCDDCADBA
31-40 CCBDCCBDBA
41-50 CCDACCBABB

Theory:

(1ai)
(Pick 4)
(i) direct mail.
(ii) newspapers and magazines.
(iii) radio advertising.
(iv) television advertising.
(v) film advertising.
(vi) outdoor advertising.
(vii) window display.
(viii) fairs and exhibition.
(ix) specially advertising.

(1aii)
(i) Coverage or extent of circulation
(ii) Frequency
(iii) The target Audience
(iv) Cost

(1b)
(i) It helps in creating job opportunity.
(ii) It provides information about features.
(iii) Reduction of costs.
(iv) Increase in profit.
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(2a)
(i) Cartel is monopolistic in nature.
(ii) It is the established by independent producers of similar product.
(iii) They allocate quotas to members.
(iv) They restrict output so as to force the price up.
(v) Competition is removed.

(2b)
Advantages
(i) Provision of infrastructural facilities.
(ii) There is confinity.
(iii) Available of Large capital.

Disadvantages
(i) Require Large capital.
(ii) Government interference.
(iii) Danger of monopoly.

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(4a)
(i)Best Location: One of the key starting points in putting up a retail store is the right location. Getting into an ideal business location is a sustainable advantage since a competitor can’t copy or steal your spot.

(ii)Competitive Factors: Competitive factors also impact effectiveness of a retail start-up. The ideal scenario exists when you start a distinct business that offers a sizable marketplace goods or services they value and can’t get elsewhere.

(iii)Financial Capital: You have two basic ways to start a retail business. You can build one from scratch or invest in a franchise, where you purchase the rights to an existing model.

(iv)Legal and Regulatory Environment: You also need to understand legal and regulatory facts that impact your industry. Some industries are heavily regulated, while others have minimal government regulations.

(4bi)
(i)Government regulates business name registration through CAC- Corporate Affairs Commission

(4bii)
Government patent use law is a statute that is a “form of government immunity from patent claims.

(4biii)
Government regulates trade mark through it’s trade mark law

(4biv)
The Commission is the Government agency responsible for all copyright matters in Nigeria including the administration, regulation.

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(5a)
(Choose Any four)
(i) Through the stock exchange market which is part of the capital market ,fund or capital can be raised or mobilised by companies and investors.
(ii) Stock exchange market provide Financial Market where people can invest their money in shares of companies.
(iii) Stock exchange facilitates the transfer of ownership of shares between investors.
(iv) Stock exchange market Provide Avenue for Government to Raise fund.
(v) The stock exchange market provides professional advice to investors on sales and management of securities

(5b)
(i) Debenture: A debenture is a document which acknowledges a loan generally under the company’s seal,bearing a fixed rate of interest . it usually gives security for replacement of loan as well as the interest. Holders of debenture certificate have no voting right
(ii) Bond: A bond is a security issued by a government or its agency or private institution as a means of raising fund. Bonds are usually due to be redeemed at some future date,and they carry a fixed rate of interest.
(iii) Shares: Shares can be defined as an individual portion of the company’s capital owned by shareholders. It is the interest which a shareholder has in a company . in other word, a share is a unit of capital measured by a sum of money.
(iv) Stock: Stock can be defined as the bundle of shares or mass of capital which can be transferred in fractional amount. They are always fully paid ,e.g it can be quoted per #100 nominal value.
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(6a)
(i)They assist exporters in the course of exporting goods.
(ii)They use government export incentives to encourage and boost export trade.
(iii)They liberalize and simplify export procedure and documentation.
(iv)They approve export and provide export license and set out procedure for exporting goods abroad.
(v)To work hand in hand with central Banks and customs authority concerning the preparation of export documents as well as assisting in finance of exporter etc.

(6b)
(i)Customs and excise authority collect taxes inform of imports, export and excise duties imposed on goods and services.
(ii)The authority generate revenue to the government from it’s activities like collection of taxes.
(iii)The authority regulates imports and exports to make sure that the quantity of goods imported and exported are within the limit stipulated on the licence issued for that.
(iv)Customs and excise authority prevents smuggling.
(v)The authority prevents the importation of banned goods.
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(8)
Trading profit and loss account
TABULATE
(Debit side)
Opening stock 20,000
Purchases 150,000
Carriage inward 4000
Less closing stock 35,000
Cost of goods sold 139,000
Gross profit 91,000
Total 230,000

Salaries 29,000
Net profit 62,00
Total 91,000

(Credit side)
Sales 230,000
GP 91,000
Total 91,000

(8a)
cost of goods sold = Le 139,000

(8b)
Gross profit = Le 91,000

(8c)
Net profit = Le 62,000

(8d)
Percentage of Gross profit Gross profit/sales * 100/1
91,000/230,000 * 100/1
39.56%
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Completed!!!!!