2019 WAEC COMMERCE ESSAY AND OBJECTIVE WAEC RUNZ

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  • 2019 WAEC COMMERCE ESSAY AND OBJECTIVE WAEC RUNZ
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WAEC 2019 – COMMERCE ANSWERS

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

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(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)
(i) It results in increase in agricultural production
(ii) It brings about stabilization in agricultural product pricing
(iii) It improves agricultural output and quality

(4b)
(i) Open outery: This is a tradition method of trading on commodities. It involves the use of natural voices, and other means like whistles, bells, trumpets, and flutes, etc to make the availability of certain commodities known to certain buyers.
(ii) Electronic means: This involves the use computer system to trade either nationally or internationally. The computer system enables the traders to do business successfully. The computer provides useful information on how buyers and sellers can communicate on all matters that borders on tradable commodities.

(4c)
(i) Grading system
(ii) Warehousing
(iii) Clearing system
(iv) Standardizing

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(5a)
(i)Television
(ii)Radio
(iii)Newspaper
(iv)Cinema
(v)Window display
(vi)Samples

(5b)
Personal selling can be defined as an oral presentation in a conversation with one or more potential buyers for the purpose of making sales.The aim is to inform and encourage the customer to buy or at least try the product

(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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