WAEC SSCE - Commerce - 2021 (Objective)

Antwoorddetails

One disadvantage of privatization is that the profit motive of private companies may outweigh the public interest. This means that private companies may prioritize making money over providing high-quality goods or services at affordable prices. Additionally, when a single private company dominates a particular industry or market, there is a risk of a monopoly which may lead to higher prices and lower quality goods or services for consumers.

Antwoorddetails

The organization responsible for protecting consumers against poor quality goods is the Standard Organization of Nigeria (SON). The SON is a regulatory body that sets standards and ensures that manufacturers comply with them. This organization ensures that products are safe for consumers to use, and it also tests and certifies products to ensure that they meet the required quality standards. By doing so, the SON helps to safeguard consumers from substandard and potentially dangerous products.

Antwoorddetails

An error on an invoice can be corrected by issuing a credit note. A credit note is a document issued by a seller to a buyer, which indicates that the seller has credited the buyer's account with a certain amount of money. When an invoice has an error, such as an incorrect amount or a wrong item listed, the seller can issue a credit note to cancel the incorrect invoice and then issue a new, corrected invoice. This way, the buyer is not charged for the incorrect amount or item, and the seller can still receive payment for the correct amount or item. It's important to note that an advice note, consignment note, and delivery note are all different types of documents used in shipping and transportation, and are not typically used for correcting errors on invoices.

Antwoorddetails

Antwoorddetails

Antwoorddetails

The foreign order that instructs an agent to buy certain goods from a particular supplier is called a "closed indent". A closed indent is a type of purchase order that is sent by a buyer to their agent, instructing them to purchase specific goods from a particular supplier. This type of order is "closed" because the buyer has already identified the supplier they want to purchase from and the specific goods they want to buy. Closed indents are commonly used in international trade when a buyer is located in a different country than the supplier. By using an agent to purchase the goods, the buyer can ensure that the transaction is carried out smoothly and efficiently. In contrast, an "open indent" is a purchase order that leaves the choice of supplier and goods up to the agent, while a "letter of credit" is a financial instrument used to ensure payment in international trade. Finally, a "letter of enquiry" is a communication used to ask for information about a product or service, rather than placing an order.

Antwoorddetails

Antwoorddetails

Antwoorddetails

In international trade, the most commonly used instruments of payment are: - Bill of Exchange: A bill of exchange is a written order from one party (the drawer) to another party (the drawee) to pay a specified sum of money to a third party (the payee) at a specified future date. - Letter of Credit: A letter of credit is a document from a bank that guarantees payment to the seller as long as the terms and conditions specified in the letter are met. Promissory notes, postal orders, and IOUs are not typically used in international trade as they do not provide the same level of security as a bill of exchange or a letter of credit.

Antwoorddetails

When the Central Bank sells securities, it aims to reduce the amount of cash in the economy. This is because when people buy these securities, they have to pay for them with cash. By taking cash out of circulation, the Central Bank aims to reduce the amount of money that people and businesses have to spend, which can help to reduce inflation. In addition, when the Central Bank sells securities, it can also help to increase the interest rate. This is because when there is less cash in the economy, lenders can charge higher interest rates for loans, since there is less competition for available funds. The Central Bank may also use the proceeds from the sale of securities to buy back previously issued securities, which can help to increase the interest rate.

Antwoorddetails

Dumping is the practice of selling goods to a foreign country at lower prices than can be obtained in the country where the goods are produced. This is often done by companies that want to increase their market share in another country or get rid of surplus goods. The lower prices can make it difficult for local producers in the importing country to compete and can lead to a decrease in their sales and profits. In some cases, this can also result in the loss of jobs in the importing country.

Antwoorddetails

Bonded warehouses are supervised by customs and excise authorities. A bonded warehouse is a secure storage facility that is licensed by the government to store goods that are pending customs duties or taxes. These goods are considered to be "in bond" and are not subject to customs duties or taxes until they are removed from the warehouse and imported into the country. The customs and excise authorities are responsible for supervising and regulating the activities that take place in the bonded warehouse to ensure compliance with customs laws and regulations. This includes monitoring the storage, handling, and movement of goods in the warehouse to prevent any illegal or unauthorized activities.

Antwoorddetails

A Public company can raise capital through the stock exchange. A public company is a business that is publicly traded, meaning its ownership is divided into shares of stock that are traded on a stock exchange. This allows the company to raise capital by issuing and selling additional shares of stock to investors. The company can use the capital raised from the stock sale to fund growth and expansion. A Sole proprietorship is a type of business owned and run by one person, and it does not have the ability to sell ownership shares to raise capital. A Private company is a type of business that is not publicly traded and its ownership is not divided into shares of stock. It may raise capital through other means such as debt financing or venture capital, but it cannot raise capital through the stock exchange. A Cooperative society is a type of business that is owned and controlled by its members, who share in the profits and losses of the business. Like private companies, cooperatives may raise capital through other means, but they cannot raise capital through the stock exchange.

Antwoorddetails

The concept you are describing is called "planning". Planning is the process of determining the objectives or goals of a business and figuring out how to achieve them. It involves analyzing the current situation, identifying potential obstacles and opportunities, and developing a roadmap or strategy to reach the desired outcomes. Planning is essential for businesses to stay on track and make progress towards their objectives.

Antwoorddetails

Antwoorddetails

The function of the ports authority is to ensure the efficient operation of ports and harbors. This includes managing the maintenance and development of port facilities, regulating shipping traffic, and providing essential services to vessels and cargo. The ports authority is responsible for promoting safety and security in the harbor, collecting port fees and charges, and ensuring compliance with relevant laws and regulations. They may also provide additional services such as warehousing and cargo handling, as well as monitoring and reporting on port activities to relevant authorities. While they may play a role in enforcing law and order in the harbor, this is typically the responsibility of local law enforcement agencies.

Antwoorddetails

The inventor of a new machine for canning tomatoes can protect his product by obtaining a patent. A patent is a legal document granted by the government that gives the inventor the exclusive right to make, use, and sell the invention for a certain period of time, usually 20 years. By obtaining a patent, the inventor can prevent others from making, using, or selling the same invention without his permission. This can help the inventor to profit from his invention and prevent competitors from stealing his idea. Obtaining a trademark, labelling the product, or choosing a brand name can also help to protect the inventor's product, but they are not as effective as obtaining a patent in preventing others from copying the invention.

Antwoorddetails

Middle managers play a crucial role in helping organizations achieve their goals. One of the key responsibilities of middle managers is to implement the plans and strategies that have been developed by top level management. This involves taking the big-picture ideas and goals and turning them into specific actions and tasks that can be carried out by the employees. The middle manager is responsible for making sure that the plans are being executed effectively and efficiently, and for making any necessary adjustments along the way. This is a critical role as it helps ensure that the organization is making progress towards its goals and objectives.

Antwoorddetails

The word "limited" written after the name of a company means that the members of the company are liable to the extent of their shareholdings only. In other words, their financial responsibility for the company is limited to the amount of money they have invested in it, typically through the purchase of shares. This type of company is commonly referred to as a limited liability company, which provides its members with a degree of protection from financial losses.

Antwoorddetails

Antwoorddetails

The right of a seller to make corrections on invoices is expressed by the term "errors and omissions excepted." This means that the seller reserves the right to correct any errors or omissions on the invoice without being held liable for them. In other words, if there are mistakes on the invoice, the seller has the right to fix them without being responsible for any consequences that may result from those mistakes. This term is typically included in contracts and agreements to protect the seller from being held accountable for errors or omissions that may occur during the sales process.

Antwoorddetails

An insurance firm would not cover the business risk of a change in consumers' taste for an entrepreneur. This is because changes in consumer preferences are considered a normal and expected risk of doing business, and insurance companies typically only cover risks that are accidental or unexpected, such as theft, fire, or loss of goods in transit. Essentially, insurance is designed to help businesses mitigate risks that are outside of their control, but not those that are inherent to the market they operate in.

Antwoorddetails

Antwoorddetails

An organization of producers of similar products, which controls output with the intention to fix price is called a cartel. A cartel is a group of companies or producers that work together to limit competition and control prices in a particular industry. The members of a cartel agree to restrict the supply of their products, either by limiting production or by allocating markets among themselves. By controlling supply, the cartel can manipulate prices and increase profits for its members. Cartels are generally illegal because they violate antitrust laws, which are designed to promote competition and prevent monopolies. However, some countries have legal frameworks that allow for the formation of cartels under certain conditions, such as when they are formed to support small producers or to promote economic development. In summary, a cartel is an organization of producers of similar products that work together to control output and fix prices, which is generally illegal because it violates antitrust laws that aim to promote competition and prevent monopolies.

Antwoorddetails

Antwoorddetails

Trade fairs and exhibitions are media of sales promotion, market segmentation, market research, and customer service. Sales promotion: Trade fairs and exhibitions provide an opportunity for businesses to showcase their products or services to potential customers. By offering discounts, demonstrations, and other promotional activities, businesses can increase their sales and generate new leads. Market segmentation: Trade fairs and exhibitions allow businesses to target specific groups of customers by showcasing their products or services in a specific industry or niche. For example, a technology trade fair will attract visitors who are interested in technology-related products or services. Market research: Trade fairs and exhibitions provide businesses with a platform to gather market information about their competitors, customers, and industry trends. Businesses can use this information to make informed decisions about their marketing strategies, product development, and overall business operations. Customer service: Trade fairs and exhibitions provide businesses with an opportunity to engage with their customers and provide them with personalized service. Businesses can answer their customers' questions, provide product demonstrations, and offer after-sales support to build long-term relationships with their customers.

Antwoorddetails

The collection of import duty is a function of the customs and excise authority. Import duties are taxes imposed by the government on goods imported into a country from foreign countries. These duties are collected by the customs and excise authority, which is responsible for enforcing customs laws, regulations, and policies related to the movement of goods across borders. The customs and excise authority is responsible for ensuring that the correct amount of duty is paid, and for preventing the smuggling of goods that are subject to duty. Therefore, the customs and excise authority plays a critical role in the collection of import duty.

Antwoorddetails

A carpenter is engaged in construction work. This means that they build structures, such as houses, buildings, and other structures made of wood and other materials. A carpenter uses tools like hammers, saws, and measuring tapes to create and install the framework, roofs, walls, and flooring of these structures. They might also be involved in finishing work, such as installing windows, doors, and cabinets, or adding trim and molding. The goal of a carpenter is to create sturdy and well-constructed buildings that will last for many years.

Antwoorddetails

The term that describes a number of shops under one roof is "department store". A department store is a large retail establishment that offers a wide variety of products and services, organized into different departments or sections, such as clothing, cosmetics, electronics, furniture, and so on. Department stores usually have a large floor area and are divided into various sections to offer different products and services to customers. They may also have additional features like restaurants, cafes, or event spaces to provide a more immersive shopping experience. In summary, a department store is a one-stop-shop that offers a diverse range of products and services under a single roof.

Antwoorddetails

ECOWAS stands for the Economic Community of West African States. One of its aims is to "foster exchange of goods and services." This means that ECOWAS works to encourage and support the trade of goods and services between the countries in West Africa. The goal is to improve the economy of the region by making it easier for businesses and individuals to buy and sell products and services across borders.

Antwoorddetails

The income generated from tourism forms part of a country's "invisible exports." Invisible exports refer to services that a country provides to foreign customers, such as tourism, consulting, financial services, and more. These services are considered "invisible" because they are intangible and can't be physically seen or transported like physical goods, which are referred to as "visible exports." So, when tourists visit a country and spend money on things like hotels, food, and entertainment, this generates income for the country, which is considered an invisible export.

Antwoorddetails

The practice of making a state firm more profit-oriented is known as commercialization. It involves changing the objectives of a state-owned enterprise from non-profit to profit-oriented in order to increase efficiency and profitability. Commercialization is often used as a way to improve the financial performance of state-owned enterprises that may be underperforming due to bureaucratic inefficiencies, lack of investment, or other factors. This process can involve restructuring the enterprise, reducing the size of the workforce, and implementing market-oriented policies to improve productivity and profitability. Unlike privatization, commercialization does not involve transferring ownership of the state-owned enterprise to the private sector. Instead, the government retains ownership and control of the enterprise, but changes its objectives to focus on generating profits. Overall, commercialization is a strategy aimed at making state-owned enterprises more efficient, competitive, and financially sustainable in the long-term.

Antwoorddetails

The reward for land as a factor of production is rent. Rent is the income received by a landowner in exchange for the use of their land. It is a payment made to the owner of the land by the tenant or user of the land. Rent is different from wages, which are paid to laborers, and profit, which is earned by business owners. Land is considered a factor of production because it is a resource used in the production of goods and services. Rent is one of the primary ways in which landowners earn income from their land.

Antwoorddetails

Out of the given options, the means of payment that requires acceptance by the debtor to make it valuable is a Bill of exchange. A Bill of exchange is a written document that orders the debtor (the person who owes money) to pay a certain amount of money to the creditor (the person who is owed money). The Bill of exchange must be accepted by the debtor, which means they agree to pay the amount owed by signing and dating the document. Once accepted, the Bill of exchange becomes a legal and valuable instrument that can be traded or sold to others. The other means of payment listed do not require acceptance by the debtor to make them valuable. - A bearer's cheque is a cheque that can be cashed by anyone who possesses it, without the need for the payee (the person who wrote the cheque) to endorse it or for the bank to verify the identity of the bearer. - A postal order is a form of payment that is prepaid and guaranteed by the postal service, which means the payee can cash it without worrying about whether the payer has enough funds in their account. - A promissory note is a written promise by one party (the issuer) to pay a certain amount of money to another party (the payee) at a specified time in the future. The note is a valuable instrument in itself, and does not require the acceptance of the debtor.

Antwoorddetails

The term that describes all activities related to the distribution and exchange of goods and services is "commerce." Commerce includes everything from buying and selling products, to marketing and advertising, to negotiating and making deals. It is a broad term that encompasses all aspects of the business world, and is essential to the functioning of modern economies. Market surveys and personal selling are specific activities within the broader field of commerce, while trade refers more specifically to the exchange of goods and services between countries or regions.

Antwoorddetails

A balance of trade of -$20 million means that the country is importing more goods and services than it is exporting. In other words, the value of its imports exceeds the value of its exports by $20 million. This can have an impact on the country's economy, as it may be spending more on imports than it is earning from exports. The country may need to find ways to reduce its import volume or increase its export volume to improve its balance of trade.

Antwoorddetails

An overdraft is the amount a current account holder is allowed to withdraw in excess of the balance in his account. In simple terms, it's a type of loan that a bank provides to a customer, allowing them to spend more money than they have in their account. The customer is then charged interest on the amount they have borrowed, and they are expected to repay it. An overdraft can be a useful tool for managing cash flow and covering unexpected expenses, but it's important to understand the terms and conditions, including the interest rate and any fees, before using one.

Antwoorddetails

A bureau-de-change is a place where people can buy and sell foreign currency. This means that if you are traveling to another country and need the local currency, you can go to a bureau-de-change and exchange your money for the currency of the country you are visiting. Similarly, if you have leftover foreign currency from a previous trip, you can exchange it back for your home currency at a bureau-de-change. In this way, a bureau-de-change helps people to manage their money when traveling abroad.

Antwoorddetails

Antwoorddetails

The process of changing raw materials into finished goods is called manufacturing. This involves transforming raw materials into products that are suitable for use by consumers. It often involves several steps, such as refining, shaping, assembling, and packaging the raw materials. Manufacturing is a crucial part of many industries, including automotive, electronics, and food production. Without the manufacturing process, raw materials would have little value to consumers as they would not be in a usable form.

Antwoorddetails

When you send a quotation to a potential customer, the expected response from them is usually an order for the goods or services that you have quoted for. An order is a formal request to purchase the goods or services at the quoted price and quantities. Alternatively, the customer may also request further information about the products or services, negotiate the price or request some changes to the quotation. Once the details have been finalized and agreed upon, the customer would then send an order for the goods or services they want to purchase. The other options mentioned, such as an invoice, advice note, or cheque for payment, are typically sent by the supplier after the order has been received and fulfilled. An invoice is a document that requests payment for the goods or services that have been supplied. An advice note is a document that confirms the dispatch of the goods or services to the customer. A cheque for payment is a form of payment sent by the customer to the supplier for the goods or services that have been provided. In summary, the most expected response to a quotation is an order, which is a formal request to purchase the goods or services at the quoted price and quantities.

Antwoorddetails

The saying that the 'consumer is always right' describes the doctrine of consumer sovereignty. Consumer sovereignty is the idea that consumers determine what goods and services are produced by their choices in the marketplace. In other words, businesses will cater to the demands and needs of consumers in order to make a profit. The "consumer is always right" phrase is often used by businesses to emphasize their commitment to putting the customer's needs first and providing excellent customer service. However, it's important to note that this doesn't mean that customers are always correct or that businesses should blindly follow their demands. Rather, it means that businesses should strive to meet the needs and wants of their customers in order to succeed in the marketplace.

Antwoorddetails

Antwoorddetails

Antwoorddetails

Selling on credit means that a business allows its customers to purchase goods or services now and pay for them at a later date. One of the disadvantages of this practice is the risk of bad debts. Bad debts occur when customers are unable or unwilling to pay for the products or services they have purchased on credit. This can be a significant problem for businesses, as it can result in a loss of revenue and an increase in expenses, such as legal fees and collection costs. Ultimately, bad debts can reduce a business's overall profitability. In addition to the risk of bad debts, selling on credit can also result in a reduction in turnover. This is because customers may delay making purchases until they are able to pay for them on credit, which can slow down the flow of goods and services through the business. Finally, selling on credit may not necessarily increase liquidity, as the business may need to wait for customers to pay their bills before it can access the cash it needs to pay its own bills and expenses.

Antwoorddetails

Antwoorddetails

One of the functions of a trade association is to promote the welfare of its members. Trade associations are organizations made up of businesses or individuals in the same industry or profession. They work to protect the interests of their members by representing them in discussions with government and other organizations. They also provide information and resources to help members stay up-to-date on industry trends and best practices. By promoting the welfare of their members, trade associations help to create a stronger and more unified industry or profession.

Antwoorddetails

The main idea of the marketing concept is that all the firm's plans and operations should be consumer-oriented. This means that the company should focus on understanding the needs and wants of their target customers and then develop products, services, and marketing strategies that satisfy those needs and wants. By being consumer-oriented, companies can build strong relationships with their customers, increase customer satisfaction and loyalty, and ultimately drive sales and profits.