WAEC May/June 2021 COMMERCE OBJ & ESSAY QUESTION AND ANSWER ROOM
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WAEC May/June 2021 FREE COMMERCE ANSWER ROOM [School Candidates]
Friday 10th September 2021
Commerce 2 (Essay) – 2:00pm – 4:00pm
Commerce 1 (Objective) – 4:00pm – 4:50pm
2021 WAEC COMMERCE OBJECTIVES (OBJ) ANSWERS:
2021 WAEC COMMERCE ESSAY OR THEORY ANSWERS:
Mergers occur when two companies join forces. Such transactions typically happen between two businesses that are about the same size and which recognize advantages the other offers in terms of increasing sales, efficiencies, and capabilities WHILE Acquisitions occur when one company buys another company and folds it into its operations. Sometimes the purchase is friendly and sometimes it is hostile, depending on whether the company being acquired believes it is better off as an operating unit of a larger venture.
(i) Helps in satisfying human wants: Human wants are insatiable. Commerce has made distribution and movement of goods possible from one part of the world to the other. Today we can buy anything produced anywhere in the world.
(ii) Improves standard of living: Standard of living refers to the quality of life enjoyed by the members of society. When man consumes more products his standard of living improves. To consume a variety of goods he must be able to secure them first. Commerce helps us to get what we want at the right time, right place and at the right price and thus helps in improving our standard of living
(iii) Commerce links producers and consumers: Production is meant for ultimate consumption. Commerce makes possible to link producers and consumers through retailers and wholesalers and also through the aids to trade. Consumers get information about different goods through advertisements and salesmanship.
(iv) It generates employment opportunities: The growth of commerce, industry, and trade bring about the growth of agencies of the trade such as banking, transport, warehousing, advertising, etc.
(v) Commerce increases national income and wealth: When production increases, the national income also increases. In a developed country, manufacturing industries and commerce together account for nearly 80% of total national income. It also helps to earn foreign exchange by way of exports and duties levied on imports.
Interest is income that lenders make on loans WHILE profit is the net result of a company’s income (after all charges are accounted for) whether that company is a bank or not.
Share is the capital of the company but debenture is the debt of the company. The shares represent ownership of the shareholders in the company WHILE debentures represent indebtedness of the company.
Ordinary shares which is also called common shares are stocks sold on a public exchange WHILE Preference shares are company stock with dividends that are paid to shareholders before common stock .
Cumulative preference shares give the shareholder a right to dividends that may have been missed in the past WHILE participating preference shares are shares that received additional income by participating in the further sharing
Cum div is to refer to a stock trading such that buyers qualify to receive the next dividend payment. Stocks trade cum dividend until the fifth business day before the record date WHILE Ex div denotes the sale or transfer of stocks or shares exclusive of the next dividend.
(i) It serves as a medium of exchange
(ii) It serves as a standard of deferred payment.
(iii) Money serves as a standard and numerical unit of measurement of market value of goods and services
(iv) It serves as a store of value which enables money to be kept for use in future.
(i) A bull is a stock market speculator who buys a holding in a stock in the expectation that in the very short-term it will rise in value whereupon they will sell the stock to make a quick profit on the transaction.
(ii) A jobber is an independent dealer in securities who holds shares on his or her own account and help boost market liquidity by matching investors’ buy and sell orders through their brokers.
(iii) A stockbroker is a professional trader who buys and sells shares on behalf of clients. The stockbroker may also be known as a registered representative or an investment advisor.
(iv) Stag is a short-term speculator who attempts to profit from short-term market movements by quickly moving in and out of positions.
[Pick any FIVE]
(i) Cash payment
(iii) Bill of exchange
(iv) Money order
(v) Credit cards
(vi) Bank draft
(i) Accounting purposes: Accounting software enables a business to quickly and accurately obtain large- and small-scale pictures of the company’s financial situation. All the employees need to do is to input his financial information into the software which helps the employees understand everything about the financial health of the business’ operations
(ii) Document creation: Most businesses will need to produce numerous documents, either in the form of written documents or spreadsheets. Computers provide word processors and spreadsheet software to help with this.
(iii) Marketing: With a computer, a business can create and execute entire marketing campaigns that span across every social media platform on the internet. The business can create ads to run on websites and social media platforms, using special software, and it can also buy marketing services from other businesses.
(iv) Storage purposes: Computers also enable a business to store its data in different ways. The business could store the data in a central location, and it could have other computers on the network access the data whenever the business needs to; when the business has the permission to; or, when the business could store the data locally on individual computers.
Economic grouping may be defined as the coming together of different countries with a common economic interest and goals with a view to promoting economic cooperation and development among member States.
LAKE CHAD BASIN COMMISSION:
(i) The sustainable and equitable management of Lake Chad and other shared water resources
(ii) The preservation of ecosystems
(iii) The promotion of integrating and preserving of peace and transboundary security in the Lake Chad Basin.
(i) Promotion of Cooperation and development.
(ii) Harmonization of Agricultural, Economic, Monetary and Industrial Policies.
(iii) Abolition of trade restrictions and Customs Duties.
NIGER BASIN COMMISSION:
(i) To ensure the most effective utilization of the resources of the river.
(ii) To streamline the construction of dams on the Niger.
(iii) To ensure the most effective use of the Niger water