WAEC 2023 Commerce Questions and Answers (Essay and Objective)

WAEC 2023 Commerce Questions and Answers (Essay and Objective)

Wednesday, 24th May 2023

  • Commerce 2 (Essay) – 2:00 pm – 4:00 pm
  • Commerce 1 (Objective) –4:00 pm – 5:50 pm

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(Q1) πŸ‘‡

(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.

(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

(Q2) πŸ‘‡

(2a) Five problems Samba could face as a sole trader include:

(i) Unlimited Liability: As a sole trader, Samba would be personally liable for all debts and obligations of the business. If the business incurs significant debts or legal liabilities, Samba’s personal assets could be at risk.

(ii) Limited Resources: As a sole trader, Samba may face limitations in terms of financial resources and capital. It may be challenging to raise significant funds or secure loans without the backing of a partnership.

(iii) Lack of Expertise: Running a business as a sole trader means that Samba would be responsible for all aspects of the business, including operations, finance, marketing, and administration. Samba may lack expertise or experience in certain areas, which could impact the efficiency and effectiveness of the business.

(iv) Workload and Time Management: Samba would be solely responsible for managing and operating the business. This could result in a heavy workload, making it challenging to balance the demands of running the business with personal life commitments.

(v) Limited Growth Potential: Without the resources, skills, and shared decision-making of a partnership, Samba may face limitations in terms of business growth and expansion opportunities. It may be more challenging to enter new markets, invest in research and development, or expand the business’s operations.

(2b) Five benefits Samba could enjoy if he remained in the partnership include:

(i) Shared Responsibility: By remaining in the partnership, Samba can share the responsibilities, workload, and decision-making with Victor. This can help distribute the burden and provide support in managing the business.

(ii) Shared Resources: The partnership would provide access to shared resources, including capital, expertise, networks, and assets. Samba could benefit from shared financial resources, which can be crucial for business operations, expansion, and investment.

(iii) Division of Labor: In a partnership, Samba can focus on his areas of expertise and delegate tasks to Victor, who may have complementary skills. This division of labor can enhance efficiency and productivity within the business.

(iv) Risk Sharing: In a partnership, both partners share the risks and liabilities of the business. Samba would not bear the entire burden of debts or legal obligations alone, reducing his personal liability.

(v) Collaboration and Support: By remaining in the partnership, Samba can benefit from collaboration, idea generation, and support from Victor. The partners can pool their knowledge, skills, and experience to overcome challenges, make informed decisions, and drive the business forward

(Q3) πŸ‘‡

(i) Storage of goods
(ii) Protection of goods
(iii) Risk bearing
(iv) Financing
(v) Processing
(vi) Grading and branding
(vii) Transportation

(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.

(Q4) πŸ‘‡

(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.

(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.

(Q5) πŸ‘‡

Tourism is the act of travel for predominantly recreational or leisure purposes, and also refers to the provision of services in support of this act.: 2(a):

(i) Limited resources: As a sole trader, Samba may not have access to the same resources, such as capital and expertise, that he had as a partner.

(ii) Increased workload: Samba may have to handle all aspects of the business himself, which could be overwhelming and time-consuming.

(iii) Limited scope: Samba may not be able to take advantage of new opportunities or expand the business beyond his personal capacity.

(iv) Limited liability: As a sole trader, Samba would be personally liable for any debts or legal issues arising from the business.

(v) Lack of collaboration: Samba may miss the benefits of collaborating with a partner, such as sharing ideas and workload.

(i) Shared resources: Samba would have access to the resources and expertise of his partner, which could help the business grow and succeed.

(ii) Shared workload: Samba would not have to handle all aspects of the business alone, which could reduce his workload and stress.

(iii) Shared risk: The partnership structure allows Samba to share the risks and liabilities of the business with his partner.

(iv) Collaborative decision-making: Working with a partner allows Samba to share ideas and make decisions collaboratively, which could lead to better outcomes.

(v) Combined expertise: Samba and his partner may have different areas of expertise, which could complement each other and lead to a more successful business.

(Q6) πŸ‘‡

Tourism is the act of travel for predominantly recreational or leisure purposes, and also refers to the provision of services in support of this act.

6bi) Increase in building costs and land value

6bii) The depletion of natural resources is a growing concern especially in places where resources are already scarce.

6biii) Tourism puts enormous stress on local land use, and can lead to soil erosion, increased pollution, natural habitat loss etc.

(Q8) πŸ‘‡

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