WAEC 2019 Commerce Question & Answer

COMMERCE OBJ:

1-10: DBCCAABDAA
11-20: BBADBBABAA
21-30: AACDAADCAC
31-40: DABCDBADCB
41-50: DDACACCBAC

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COMMERCE THEORY:

(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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(4a)

CHOOSE ONLY THREE (3)

-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)It arouses interest of buyers:This is because the buyer
will be given the opportunity to ask question about the
suitability of the product
(ii)It creates product awareness:The product will be
popular among the customers or consumers
(iii)product information gathered from personal contact
can be used to develop product preferences based on
consumer needs
(iv)Personal selling enables inputs at individual level to be
gathered by the company executives which non personal
cannot do

DISADVANTAGES:
(i)It is a relatively expensive method of selling.This is so
because high capital costs are required
(ii)It is an extremely labour intensive method:it requires a
lot of labour to perform the personal selling
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(6a)
Adverse or deficit balance of payment
(6b)
(i)Foreign exchange control:Foreign exchange control
involves the rationing foreign exchange in order to reduce
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 manipulation of
exchange rates to induce people to patronize locally made
goods.
(iv)Fiscal control:This involves the raising of tariffs 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 tariffs,quotas and outright embargo
on imports
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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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COMPLETED …

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