Are you gearing up for the West African Examinations Council (WAEC) Commerce exam? Look no further! We understand the time constraints and study pressures you face. That's why we've meticulously curated a comprehensive list of the most pertinent questions to bolster your preparation.
Overview of WAEC Commerce Exam
The WAEC Commerce exam encompasses Paper 2 & 1: Essay & Objective, scheduled from 9:30 am to 12:20 pm. Annually, over three million candidates register for these pivotal exams, administered by WAEC across West African nations.
WAEC Commerce Objective and Theory Questions
Section A [Objectives]
Answer ALL questions.
Shade your answers on the answer booklet provided.
1-10: BCDABBBCAD
11-20: ADCDADADCC
21-30: ADAAAACBBB
31-40: DDDBACBBBC
41-50: CDADADCADC
WAEC Commerce Theory Questions
Keep the following in mind:
(1a)
Mergers occur when two companies join forces.
Such transactions typically happen between two businesses that are about the same size and which recognize the advantages the other offers to increase 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 hostile, depending on whether the company being gained believes it is better off as an operating unit of a larger venture.
(1b)
(i) Helps in satisfying human wants: Human wants are insatiable.
Commerce has made the 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 it possible to link producers and consumers through retailers and wholesalers and also through aid 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 trade such as banking, transport, warehousing, and advertising.
(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.
WAEC Commerce Questions
(2i)
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.
(2ii)
Shares are 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 the indebtedness of the company.
(2iii)
Ordinary shares, which are also called common shares, are stocks sold on a public exchange WHILE Preference shares are company stocks with dividends that are paid to shareholders before common stock.
(2iv)
Cumulative preference shares give the shareholder a right to dividends that may have been missed in the past WHILE participating preference shares received additional income by participating in the further sharing
(2v)
Cumdiv refers to stock trading such that buyers qualify to receive the next dividend payment. Stocks trade cum dividends until the fifth business day before the record date WHILE EX div denotes the sale or transfer of stocks or shares exclusive to the next dividend.
WAEC Commerce Questions
(3a)
(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 the market value of goods and services
(iv) It serves as a store of value which enables money to be kept for use in the future.
(3b)
(i) A bull is a stock market speculator who buys a holding in 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 in his or her account and helps 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
WAEC Commerce Questions
(4a)
(i) Cash payment
(ii) Cheque
(iii) Bill of exchange
(iv) Money order
(v) Credit cards
(4b)
(i)It will enhance communication speed between him and his customers and lower communication cost, in other words, he will make it a reliable mode of communication.
(ii) It will be effective in sharing information. And a paperless environment. It will be helpful for him to install the car tracker.
(iii) It will also help him in advertising his vehicles online and offline for sale.
(iv) it helps in increased connectivity. Computers have connected people in the modern world in ways never before imagined in buying and selling cars.
(v) The usefulness of computers for vehicle sellers is to make it easier than ever to share ideas and collaborate. In other words, the workers can be connected through networks that span the globe, allowing them to share and edit documents, work on designs, and send emails to stay in touch.
WAEC Commerce Questions
(5a)
The economic grouping may be defined as the coming together of different countries with a common economic interest and goals to promote economic cooperation and development among member states.
(5bi)
LAKE CHAD BASIN COMMISSION:
(i) The sustainable and fair management of Lake Chad and other shared water resources
(ii) The preservation of ecosystems
(iii) The promotion of integrating and preserving peace and transboundary security in the Lake Chad Basin.
(5bii)
ECOWAS:
(i) Promotion of cooperation and development.
(ii) Harmonization of Agricultural, Economic, Monetary, and Industrial Policies.
(iii) Abolition of trade restrictions and Customs Duties.
(5biii)
NIGER BASIN COMMISSION:
(i) To ensure the most effective utilization of the resources of the river.
(ii) To streamline the construction of dams in Niger.
(iii) To ensure the most effective use of Niger water
Prepare with Confidence!
Equip yourself with the knowledge and practice you need to ace the WAEC Commerce exam. Dive into these meticulously crafted questions and elevate your chances of success. Happy studying!
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