FREE WAEC 2023 COMMERCE ANSWERS

In this post, you will get the verified 2023 Commerce Free (THEORY AND OBJECTIVES) Answers

COMMERCE OBJECTIVES ANSWERS
01-10: DABCDDBBAA
11-20: BDCBAADDDC
21-30: BDCBDCACDC
31-40: BCABCCABAC
41-50: ADACBADDAA
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2023 WAEC COMMERCE THEORY ANSWERS

(1a)
(i)Slavery: The slave trade was a major hindrance to the growth of commerce in West Africa. It disrupted the social and economic structures of many African societies and led to a decline in trade.

(ii)Lack of infrastructure: The lack of roads, bridges, and other infrastructure made it difficult to transport goods from one place to another, which limited the growth of commerce.

(iii)Disease: The prevalence of diseases such as malaria and yellow fever made it difficult for traders to operate in West Africa.

(iv)Political instability: The frequent wars and conflicts between different ethnic groups and kingdoms in West Africa disrupted trade and made it difficult for traders to operate.

(v)Colonialism: The imposition of colonial rule by European powers in the late 19th and early 20th centuries disrupted traditional trade routes and practices and led to the exploitation of African resources for the benefit of European powers.

1b) Classifications of workers:

(i) Oil driller – Industrial worker
(ii) Potter – Artisan worker
(iii) Policeman – Civil servant worker
(iV) Brewer – Industrial/Service worker
(V) Stock broker – Professional worker
(vi) Mason – Construction worker
(Vii) Farmer – Agricultural worker

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(2a)
(i)Unlimited liability: The partners are liable to the debts of the business to no limit.

(ii) Difficulty in management: Decision-taking is going to be long and slow as every partner would want their voice to be heard, thus, creating disagreement.

(iii) Inability to raise sufficient capital: Partners cannot invite the public to raise capital, and because of its unlimited liability, members fear to invest in partnership.

(iv) Risk of dissolution: The partnership stands dissolved at the death, bankruptcy or insanity of a member

(v) Action of one partner on others: There is the danger that one reckless partner can ruin others

(2b)
(i) Large amount of capital is necessary for the business as a limited company.

(ii) The success of the business requires the skill or knowledge of experienced members of the partnership/joint decision, for example, solicitors, doctors, etc.

(iii) The ownership and control should not be extended outside a family or friends.

(iv) Partnership is suitable for executing short term venture.

(v)Shared Resources the partnership would provide access to shared resources, including capital, expertise, networks, and assets.

ANOTHER 2B

2(b) :

1. Shared resources: Samba would have access to the resources and expertise of his partner, which could help the business grow and succeed.
2. Shared workload: Samba would not have to handle all aspects of the business alone, which could reduce his workload and stress.
3. Shared risk: The partnership structure allows Samba to share the risks and liabilities of the business with his partner.
4. Collaborative decision-making: Working with a partner allows Samba to share ideas and make decisions collaboratively, which could lead to better outcomes.
5. Combined expertise: Samba and his partner may have different areas of expertise, which could complement each other and lead to a more successful business.

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(3a)
[PICK ANY FOUR]
(i) Storage of goods
(ii) Protection of goods
(iii) Risk bearing
(iv) Financing
(v) Processing
(vi) Grading and branding
(vii) Transportation

(3b)
(a) Chain store:
(i) Multiple store locations, often spread across different regions or even countries
(ii) Uses a standardized branding and store design across all locations, giving a consistent customer experience.

(b) Mobile shop:
(i) Operates out of a vehicle or a portable structure, allowing it to move to different locations.
(ii) Typically focuses on a specific product or niche, such as mobile phones or accessories.

(c) Mail order business:
(i) Uses catalogs, websites, or other printed and digital materials to advertise and sell products to customers who place orders remotely.
(ii) Often offers a wide range of products to cater to diverse customer needs and preferences.

ANOTHER NUMBER 3

(3a)
(Pick Any Four)

(i) Warehouse ensures that there is no fluctuation in prices of goods. It helps to stabilise prices of goods

(ii) Warehouses serve as storage facilities; they are provided for keeping the goods safely

(iii) warehouse facilities ensure that goods are produced ahead of demand

(iv) Warehousing creates job opportunities for many people eg clerks and managers

(v) warehouse ensures effective check and adequate security for the products

(3bi)
Chain store:
(Pick Any Two)

(i)chain stores are known to have identical store design, layout and stock display.
(ii) chain stores have centralised form of administration and workshop as headquarters where they managed the business.
(iii)The headquarters usually purchases and distributes goods in bulk to other chain stores all over the nation.
(iv) chain store sells similar range of products or line of merchandise.
(v)chain store operate the same price all over the nation in all other shop.

(3bii)
Mobile shop:
(Pick Any Two)

(i)Mobile shop makes sure of special motor van which carry the vendor and their goods from one place to another.
(ii)Mobile shops deal in limited range of goods based on the capacity of the motor van.
(iii)Mobile shops do display the goods inside the motor van in a well arranged pattern
(iv)Mobil shop do advertise their wares through music; ringing of bells etc , in order to attract customers.

(3biii)
Mail order business:
(Pick Any Two)

(i)It is more suitable in dealing on consumer durable goods only.
(ii) It is one of the means of by passing the wholesaler and retailer by the manufacturer.
(iii)mail order shopping is usually carried out by post
(iv)It requires considerable or intensive advertising
(v) It maintains large warehouse and use catalogues
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(4a)
(i)Stocks: Stocks represent ownership shares in a company. Investors can buy and sell stocks on the stock exchange, aiming to profit from price fluctuations or receive dividends based on the company’s performance.

(ii)Bonds: Bonds are debt securities issued by governments, municipalities, or corporations. Investors lend money to the issuer in exchange for periodic interest payments and the return of the principal amount at maturity.

(iii)Exchange-Traded Funds (ETFs): ETFs are investment funds traded on stock exchanges. They represent a basket of securities, such as stocks, bonds, or commodities. Investors can trade ETFs like stocks, offering diversification and flexibility in their investment portfolios.

(iv)Mutual Funds: Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Investors can buy or sell mutual fund shares at the net asset value (NAV) at the end of the trading day.

(v)Options: Options are derivative securities that provide the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a predetermined price within a specific time period. Investors can trade options to speculate on price movements or manage risk in their investment positions.

(4b)
(i)Loyalty: An agent has a duty to act in the best interests of the principal and to avoid conflicts of interest. They should prioritize the principal’s goals and not engage in activities that would harm the principal or benefit themselves at the principal’s expense.

(ii)Obedience: An agent is obligated to follow the lawful instructions and directives of the principal, as long as they are within the scope of the agency relationship. The agent should carry out the principal’s wishes and act in accordance with their expressed desires.

(iii)Skill and Competence: An agent has a duty to perform their tasks with a reasonable level of skill, care, and diligence. They should possess the necessary knowledge, qualifications, and experience to fulfill their obligations and responsibilities to the principal.

(iv)Disclosure of Information: An agent has a duty to provide accurate and complete information to the principal regarding all relevant matters related to the agency relationship. This includes disclosing any conflicts of interest, potential risks, or material information that may impact the principal’s decisions.

(v)Accounting and Financial Responsibility: An agent is responsible for managing the principal’s assets, funds, or resources entrusted to them. They have a duty to maintain accurate records, provide regular accounting statements, and handle the principal’s financial affairs in a responsible and transparent manner.

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5a) The differentiation between indent and quotation is as follows:

Indent:

• An indent is a formal written order or request placed by a buyer to a seller for the purchase of goods or services.
• It specifies the quantity, quality, description, and terms of the products or services desired by the buyer.
• An indent is usually used in international trade or bulk ordering, and it serves as a binding agreement between the buyer and seller.

Quotation:

• A quotation is a formal statement provided by a seller to a potential buyer, specifying the price, terms, and conditions for the sale of goods or services.
• It provides a detailed breakdown of the costs involved, including unit prices, discounts, delivery charges, and payment terms.
• A quotation is usually issued in response to a buyer’s request or inquiry and serves as an offer to sell the products or services at the stated terms.

5b) Functions of the following organizations:

5bi) Export Promotion Council:

1. Market Research and Analysis: Export Promotion Councils conduct research and analysis to identify potential markets for export goods.
2. Trade Promotion: Export Promotion Councils organize trade fairs, exhibitions, and buyer-seller meets to promote exports.
3. Policy Advocacy: These organizations act as representatives of exporters and advocate for favorable trade policies and regulations.
4. Export Assistance and Support: Export Promotion Councils provide various support services to exporters, including guidance on export procedures, documentation, quality standards, and certifications.

5bii) Customs and Excise Authority:

1. Tariff Administration: Customs and Excise Authorities are responsible for administering and enforcing tariffs and customs duties on imported and exported goods.
2. Customs Clearance: These authorities facilitate the smooth flow of international trade by clearing goods through customs checkpoints.
3. Border Security and Control: Customs and Excise Authorities play a vital role in maintaining border security and controlling the movement of goods.
4. Revenue Collection: One of the key functions of Customs and Excise Authorities is the collection of import/export duties, taxes, and fees.

5b) Functions of the following organizations:

5bi) Export Promotion Council:

1. Market Research and Analysis: Export Promotion Councils conduct research and analysis to identify potential markets for export goods.
2. Trade Promotion: Export Promotion Councils organize trade fairs, exhibitions, and buyer-seller meets to promote exports.
3. Policy Advocacy: These organizations act as representatives of exporters and advocate for favorable trade policies and regulations.
4. Export Assistance and Support: Export Promotion Councils provide various support services to exporters, including guidance on export procedures, documentation, quality standards, and certifications.

5bii) Customs and Excise Authority:

1. Tariff Administration: Customs and Excise Authorities are responsible for administering and enforcing tariffs and customs duties on imported and exported goods.
2. Customs Clearance: These authorities facilitate the smooth flow of international trade by clearing goods through customs checkpoints.
3. Border Security and Control: Customs and Excise Authorities play a vital role in maintaining border security and controlling the movement of goods.
4. Revenue Collection: One of the key functions of Customs and Excise Authorities is the collection of import/export duties, taxes, and fees.

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(6a)
(PICK ANY ONE)
Tourism is the practice which involves the visiting of people to places of interest for recreational, leisure or business purposes.

OR

Tourism refers to the activities of people traveling to and staying in places outside their usual environment for leisure, business, or other purposes

OR

Tourism involves visiting various destinations, exploring their attractions, experiencing their culture, and engaging in recreational activities.

(6bi)
(PICK ANY ONE)
(i) Tourism revenue leaks out of the local economy due to the presence of multinational companies or foreign-owned businesses.
(ii) Seasonality nature of tourism can lead to instability in local economies, making it challenging for businesses to sustain themselves throughout the year and causing fluctuations in employment opportunities.
(iii) Overly dependent on tourism as its primary source of income makes the place vulnerable to external factors such as economic downturns, political instability, natural disasters, or changes in travel patterns especiaccly when there is a decline in tourist arrivals.
(iv) Tourism can drive up the cost of living in popular destinations

(6bii)
(PICK ANY ONE)
(i) Tourism development can lead to social disruptions within local communities
(ii) Rapid tourism development can erode traditional values, customs, and cultural practices.
(iii) Tourism can lead to the exploitation of local cultures and traditions.
(iv) The presence of tourists can sometimes lead to the emergence of negative social behaviors, such as an increase in crime rates, substance abuse, and prostitution.
(v) The benefits of tourism may not be equally distributed among the local population, resulting in unequal access to employment opportunities, income, and resources.

(6biii)
(PICK ANY ONE)
(i) Tourism can contribute to various forms of pollution, including air, water, and noise pollution.
(ii) The development of tourism infrastructure such as hotels, resorts, roads, and recreational facilities can result in habitat destruction and fragmentation.
(iii) High tourist concentrations in water-stressed areas can strain local water resources due to excessive water extraction for hotels, swimming pools, golf courses, and other tourist amenities.
(iv) Tourism generates substantial amounts of waste, including packaging, food waste, and single-use items.

(6ci)
(PICK ANY TWO)
(i) Tourism can be a significant driver of economic growth, contributing to increased business opportunities, job creation, and income generation.
(ii) Tourism can generate foreign exchange earnings through spending by international visitors.
(iii) Tourism offers opportunities for diversifying an economy beyond traditional industries.
(iv) Tourism provides a platform for small-scale businesses and entrepreneurs to thrive.
(v) To cater to the needs of tourists, destinations often invest in infrastructure development projects such as airports, roads, transportation networks, and public amenities.

(6cii)
(PICK ANY TWO)
(i) Tourism provides opportunities for cultural exchange and interaction between visitors and local communities.
(ii) Tourism can play a crucial role in the preservation and promotion of cultural heritage
(iii) Well-managed tourism can empower local communities by involving them in decision-making processes, providing opportunities for entrepreneurship and income generation
(iv) Tourism can raise awareness about environmental issues and contribute to conservation efforts.
(v) ourism development often leads to improvements in infrastructure and public services in destinations

(6ciii)
(PICK ANY TWO)
(i) Tourism can create economic incentives for the conservation and preservation of natural areas, including national parks, wildlife reserves, and protected habitats.
(ii) Tourism can raise awareness about environmental issues and promote environmental education.
(iii) ourism can drive the adoption of sustainable practices by encouraging businesses and destinations to minimize their environmental footprint.
(iv) Tourism can contribute to the conservation of natural areas and biodiversity.
(v) Tourism development can facilitate the restoration and rehabilitation of degraded environments

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