2022 WAEC COMMERCE ANSWERS

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COMMERCE OBJ
01-10: BDDDBCBACC
11-20: ABDDBADCCB
21-30: DABCCDDCBD
31-40: BACBDDABAC
41-50: BAADACDBBC

COMPLETED
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*THEORY*

(1a)
The workshop uses “Division Of Labour” production process.

(1bi)
(i) Division of labour lead to increase in production because the various experts along the production process work together to boost greater production
(ii) Division of labour helps to save time that would have been wasted in moving from one operation to another in the workshop
(iii) Division of labour enables each worker to develop a greater skill through repetition of the same process
(iv) Division of labour lead to larger scale production of goods or products in the workshop
(v) Division of labour helps in the employment of people to handle the various stages of production

(1bii)
(i) In division of labour, a worker in the workshop performs the same job on a daily basis, the job therefore becomes monotonous and boring.
(ii) In division of labour, there is problem of mobility of labour. Workers stay on a single job for a long time which makes it difficult to move to other jobs
(iii) Division of labour means that workers in the workshop will have to depend on one another before production can take place. Absence of such a worker may result in closure or delay in the entire production
(iv) In division of labour, machines are usually used with few workers.

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(2a)
The type of merger to be formed is “vertical merger” or “vertical amalgamation”. The firms or companies come together at different stages of the production from the raw material to the finished product.

(2b)
(i) A possible reason for the merger is for guaranteed supplies or outlet
(ii) By coming together, the combination of greater resources may help in securing the economics of larger-scale production. This will reduce unit costs and increase profit
(iii) The companies could have merged to increase the efficiency of management where the acquired company is poorly managed
(iv) The companies could also have merged to reduce federal income tax liabilities.

(2c)
(i) Loans and overdrafts from banks: Loans and overdrafts can be obtained from commercial or development banks
(ii) Shares raised by shareholders: Shares are usually raised by shareholders which form the capital base of the company
(iii) Trade credit: Raw materials can be purchased by the company on credit.
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(3a)
Trade Association is the association of business firms in the same industry while Chamber of Commerce includes business firms operating in different fields of business activity.

(3b)
(i)Protecting the interest of the Member and Government Advisor
(ii)Development of trade, commerce and industry
(iii)Removing odd or unfair competitions
(iv)Creating and Maintaining Favorable Business Environment

(3c)
(i)Providing the government with a veritable forum and deal with safety and health at work place and working environment
(ii)Promote collective bargaining at different levels and take up projects for social and family welfare.
(iii)Bring a unified employers’ viewpoint on the issues of industrial relations to the government in a concerted manner
(iv)Train and develop staff and members and Obtain data on wages and conditions of work in industries attached to them.

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(4a)
(PICK ANY EIGHT)
A – Speaker
B – Microphone
C – External webcam
D – Flash drive
E – Monitor
F – Printer
G – Keyboard
H – Light pen
I – Joystick

(4b)
(i) Microphone: It is used input sound that is then stored in a digital form
(ii) External webcam: It capture images and videos and then send them onto your CPU
(iii) Flash drive: It is used for storage, data backup, and transferring files between devices.
(iv) Keyboard: It is used for putting information including letters, words and numbers into your computer.
(v) Light pen: It allows a user to point to display object or draw on the screen in a Similar way to a touchscreen but with greater positional accuracy
(vi) Joystick: It is used for controlling the movement of the cursor or a pointer in a computer device

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(5a)
(PICK ANY FOUR)
(i) Hire purchase
(ii) Loans and Credit Lines from Banks
(iii) Personal capital
(iv) Sale of Assets
(v) Retained Profit

(5bi)
Acceptance Credit: Acceptance credit is a type of letter of credit that is paid by a time draft authorizing payment on or after a specific date, if the terms of the letter of credit have been complied with.

(5bii)
(ii) Luncheon voucher: luncheon voucher is a document issued to employees by their employer as part of their pay and exchangeable for food at restaurants and shops.

(5biii)
Bill of exchange: Bill of exchange is an unconditional order in writing, addressed by the seller to the buyers, requesting the person to whom it is addressed to pay on demand a certain sum of money at a particular time.

(5c)
(ADVANTAGES)
(PICK ANY TWO)

(i) Hire purchase facilitates the promotion of durable goods
(ii) The profit will increase as a result of increase in price.
(iii) Hire purchase increases the rate of turnover.
(iv) It leads to large scale production as a result of increase in demand.
(v) The seller can repossess the goods in order to avoid bad debt.
(vi) The seller retains ownership of goods until full payment is made.

DISADVANTAGES
(PICK ANY THREE)
(i) A lot of capital can be tied down.
(ii) Customers may fail to pay their debt which may become bad debts.
(iii) Court action for recovery of debts usually brings additional cost.
(iv) Goods repossessed may be difficult to sell.
(v) It can lead to court action.
(vi) There is the possibility that a buyer may run away with the goods.

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(6a)
=INTERNATIONAL TRADE=
(i) Cash-in-Advance: This is a payment term in which the exporter receives payment before shipment of the goods. This minimizes the exporter´s risk and financial costs, since there is no collection risk and no interest cost or receivables.

(ii) Letters of Credit: This is a commitment by a bank on behalf of the buyer that payment will be made to the exporter, provided that the terms and conditions stated in the Letter of Credit have been met, as verified through the presentation of all required documents.

(iii) Consignment: Consignment in international trade is a variation of open account in which payment is sent to the exporter only after the goods have been sold by the foreign distributor to the end customer.

=HOME TRADE=
(i) Bill of exchange: This is an unconditional order, made in writing, addressed by one person to another, requiring the person to whom it is addressed to pay on demand, or at a stated future date, the sum of money indicated on the bill to a named person or to the bearer.

(ii) Credit cards: These are cards which are issued by some major banks and other credit card companies to enable the holder of the card to buy goods or services from business organisations which accept the cards without paying for them on the spot

(6b)
(i)Differences in Technology; Advantageous trade can occur between countries if the countries differ in their technological abilities to produce goods and services.

(ii)Differences in Resource Endowments; Advantageous trade can occur between countries if the countries differ in their endowments of resources. Resource endowments refer to the skills and abilities of a country’s workforce, the natural resources available within its borders (minerals, farmland, etc.),

(iii)Differences in Demand; Advantageous trade can occur between countries if demands or preferences differ between countries. Individuals in different countries may have different preferences or demands for various products.

(iv)Existence of Economies of Scale in Production; The existence of economies of scale in production is sufficient to generate advantageous trade between two countries. Economies of scale refer to a production process in which production costs fall as the scale of production rises.

(v)Existence of Government Policies; Government tax and subsidy programs alter the prices charged for goods and services. These changes can be sufficient to generate advantages in production of certain products.

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*COMPLETED*
*COMMERCE*

(6a)
(MEANS OF PAYMENT IN INTERNATIONAL TRADE)

(PICK ANY THREE)
(i)Guaranteed mail transfer is an order to pay sent by mail.This is similar to mail transfer but here the remitting bank will guarantee payment on the agreed date.

(ii)Travellers Cheques: Travellers cheques are orders drawn on commercial bank which travellers and businessmen to other countries can use to settle their bills. The beneficiary is thus enabled to obtain foreign currency when travelling abroad to settle their indebtedness.

(iii)Documentary Credit: Documentary credit is a method of payment or financing foreign trade. The importer opens a credit in favour of the exporter at a bank in the exporter’s country.

(iv)Mail Transfer: Mail transfer is a means of payment in which an order to pay a foreign creditor a sum of money is given by a bank to its foreign agent by means of letter or air mail. Mail transfer is similar to a cheque but cannot be transferred.

(MEANS OF PAYMENT IN HOME TRADE)

(PICK ANY TWO)

(i)Bank Draft: Bank draft is a cheque drawn on a bank by itself or its agent. It is used by a debtor when his creditor is not willing to accept a personal cheque. The debtor pays the bank for the draft at the time of issue.

(ii)Cheque: A cheque is an order written by the drawer to a bank to pay on demand a specified sum of money to the person named as payee on the cheque

(iii) Credit cards: These are cards which are issued by some major banks and other credit card companies to enable the holder of the card to buy goods or services from business organisations which accept the cards without paying for them on the spot

(6b)
(PICK ANY THREE)
(i)Differences in technology:The level of technology differs from one nations of the world to another. Some countries with advanced technology can produce some industrial products at reduced cost and sell to the less developed countries.

(ii)Differences in skills: The inhabitants of a region may develop special skills in the production of a commodity such that it acquires special reputation for its skill. This can necessitate foreign trade.

(iii)Expansion of market for products: Foreign trade came into existence because of the need to widen the market for goods produced by a country.

(iv)Differences in the efficient use of natural resources:Foreign trade may arise because of differences in efficiency in the use of natural resources.

(v)Uneven distribution of natural resources: Natural resources are unevenly distributed. While some county are naturally blessed, others have little or no natural resources. This necessitates international trade.

(vi) Difference climatic conditions: The climatic condition of the earth varies from one region to another. This variation gives rise to growth of different crops, hence the need for exchange.
*BONUSES*

(2a)
The type of merger to be formed is “vertical merger” or “vertical amalgamation”. The firms or companies come together at different stages of the production from the raw material to the finished product.

(2b)
(i) A possible reason for the merger is for guaranteed supplies or outlet
(ii) By coming together, the combination of greater resources may help in securing the economics of larger-scale production. This will reduce unit costs and increase profit
(iii) The companies could have merged to increase the efficiency of management where the acquired company is poorly managed
(iv) The companies could also have merged to reduce federal income tax liabilities.

(2c)
(i) Loans and overdrafts from banks: Loans and overdrafts can be obtained from commercial or development banks
(ii) Shares raised by shareholders: Shares are usually raised by shareholders which form the capital base of the company
(iii) Trade credit: Raw materials can be purchased by the company on credit.
*COMMERCE*

(3a)
-TRADE ASSOCIATION-
(i) It is restricted to members who are engaged in the same line of business or trade
(ii) It is regionally based

-CHAMBER OF COMMERCE-
(i) It is not restricted to a particular business or trade
(ii) It has a national and international outlook

(3b)
(i) One of the functions of chambers of commerce is to organise trade fairs to promote their business to the customers
(ii) To promote home and foreign trade i.e develop trade with other towns outside the country or other towns within their territories
(iii) To supply all relevant information to members in their areas of interest as well as the latest development in the world of commerce
(iv) Chambers of commerce can also act as arbitrators in the settlement of disputes among members.

(3c)
(i) Employers associations seek to coordinate the behaviour of their member companies in matters of mutual interest
(ii) To explore a business and investment model for the long-term financial sustainability of the association
(iii) Protect the rights of business
(iv) Support members in bridging skills gaps through technical skills development.