2017/2018 WAEC GCE EXPO: COMMERCE THEORY AND OBJ QUESTIONS AND ANSWERS

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COMMERCE OBJ

1-10: BCDADDCBAB
11-20: BABBDACDBA
21-30: CCDBCADBCA
31-40: DDABBBCABC
41-50: ABCB-BAAAC

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1a)
Pipeline Transportation is
a method of transportation in which liquid, gaseous, or solid products are moved over long distances through pipelines. It is used mainly for conveying natural gas, petroleum, and solid materials.

1b)
i)High Speed:
It is the fastest mode of transport and therefore suitable for carriage of goods over a long distance. It require less time.

ii)Quick Service:
Air transport provides comfortable, efficient and quick transport services. It is regarded as best mode of transport for transporting perishable goods.

iii)No Infrastructure Investment:
Air transport does not give emphasis on construction of
tracks like railways. As no capital investment in surface track is needed, it is a less costly mode of transport.

iv)Easy Access:
Air transport is regarded as the only means of transport in those areas which are not easily accessible to other modes of transport. It is therefore accessible to all areas
regardless the obstruction of land.

v)Natural Route:
Aircrafts travels to any place without any natural obstacles
or barriers because the custom formalities are compil

1c)
i)The target market characteristics: To select an effective channel,producers must look at the
size, density, and purchase frequency and the quantity
purchased by the customers

ii)Nature of the product:
Product characteristics important to the choice of channel of
distribution include product size and weight, perishability, level
of product control, and input required.

iii)Cost efficiencies:
Cost factor is very important in channel selection just as in
every marketing decision.

iv)Company Characteristics:
In addition to evaluating customer and product characteristics,
the channel analyst must consider company characteristics.

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(2a)
(i) Memorandum of Association is subsidiary to the Companies Act, whereas Articles of Association is subsidiary to both Memorandum of Association as well as the Act.
(ii) Memorandum of Association contains the information about the powers and objects of the company. Conversely, Articles of Association contain the information about the rules and regulations of the company.

(2b)
ADVANTAGES:
(i) Raising capital through public issue of shares: The most obvious advantage of being a public limited
company is the ability to raise share capital,particularly where the company is listed on a recognised exchange.
(ii) Other finance opportunities: As well as share capital, a public limited company will often find itself in a better position when looking at other potential sources of finance.
(iii) Growth and expansion opportunities: The value of being able to raise finance is in how it can be employed to serve the business
(iv) Widening the shareholder base and spreading risk: Offering shares to the public gives the opportunity to spread the risk of company ownership among a large
number of shareholders .

DISADVANTAGES:
(i) There is a possibility that the original owners can lose control of the public limited company in the
issue of a dispute or violation
(ii) In order to protect public investors, there are many controls and regulations that the business
must follow.
(iii) Some public limited companies can grow very large. As a result, many can suffer from mismanagement and slow decision making.
(iv) There must be at least two shareholders before the
Public limited company can be formed.

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4a)

i)By performance of the parties i.e. each party completing his obligations as stipulated by the
contract.

ii)By frustration i.e. an event through no fault of
the parties that make one party unable to perform the contract. For example:if one party
suffers a prolonged illness which makes him unable to perform the contract.
iii)By lapse of time i.e. if the time limit set for the contract to be executed by both parties has been passed. For example, sellers of real estate usually require that the buyers pay the full balance on the property within a certain time period after the initial down payment has been made.
iv)By changes in law i.e. where a legal contract is rendered illegal through changes in law.

4b)
i)act on behalf of and be subject to the control of the principal
ii)act within the scope of authority or power delegated by the principal
iii)discharge his or her duties with appropriate care and diligence
iv)avoid conflict between his or her personal interests and those of the principal
v)promptly hand over to the principal all monies collected on principal’s behalf.
vi)agent owes a duty to the principal to act in the principal’s best interests within the authority of the agent .

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6a)
i. Advancing of Loans.
ii. Overdraft
iii. Cheque Payment
iv. Foreign Currency Exchange
v. ATMs Services.

6b)

i. Collection of Revenue i.e. Import and Excise Duties and Accounting for same.

ii. Prevention and suppression of smuggling.

iii. Implementation of Government Fiscal Measures

iv. Generation of statistical data for planning purpose

v. Implementation of bilateral and multilateral agreements entered into by government

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5a)
i)As a Ready Market for Natural Resources:
ii)Supplementing Home Food Consumption:
iii)Sources of Manufactured Goods:
iv)Supply of Raw Materials and Spare Parts:
v)Centres of Commerce

5b)
i)Adjustment through Exchange Depreciation (Price Effect): Under flexible exchange rates, the disequilibrium in the balance of payments is automatically solved by the forces of demand and supply for foreign exchange.

ii)Devaluation or Expenditure-Switching Policy:Devaluation raises the domestic price of imports and reduces the foreign price of exports of a country devaluing its currency in relation to the currency of another country.

iii)Direct Controls: To correct disequilibrium in the balance of payments, government also adopts direct controls which aim at limiting the volume of imports.

iv)Adjustment through Capital Movements:
A country can use capital imports to correct a deficit in its balance of payments. A deficit can be financed by capital inflows.

v)Adjustment through Income Changes:
Given the foreign exchange rate and prices in a country, an increase in the value of exports, causes an increase in the incomes of all persons associated with the export industries.


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