WAEC SSCE - Commerce - 2022 (Objective)

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The resources put together to create goods and services are referred to as factors of production. These are the inputs used in the production process to produce goods and services. The four main factors of production include land, labor, capital, and entrepreneurship. Land refers to natural resources such as forests, water bodies, and minerals used in the production process. Labor refers to the human resources used in the production process. Capital refers to the financial resources used in the production process, such as machinery, tools, and equipment. Entrepreneurship refers to the skills and knowledge required to start and run a successful business. All of these factors of production work together to produce goods and services that meet the needs of consumers.

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The principle that prevents an insured from receiving a claim that is more than the value of the loss if the property is insured by more than one company is called "contribution". Essentially, this principle ensures that the insured is not overcompensated for their loss by multiple insurers. Under this principle, each insurer will pay a proportionate amount of the loss based on the value of the policy they issued compared to the total value of all policies covering the property. For example, if a property is insured for $100,000 by two different insurance companies, and it sustains a loss of $50,000, each company will pay $25,000 towards the loss.

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The characteristic that is not of a commercial bank is "Established to issue bank notes". Commercial banks are established as limited liability companies with the aim of making profits by offering financial services such as accepting deposits, granting loans, and providing various financial services to individuals, businesses, and governments. They are also established by individuals or organizations, but they are not specifically established to issue banknotes, as that is the function of a central bank.

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A discount given to a buyer to encourage prompt payment is known as a "cash discount". This is a reduction in the price of the goods or services being sold, which is offered to the buyer if they pay their bill within a specified period of time. For example, a seller might offer a 2% discount on the total invoice amount if the buyer pays within 10 days of receiving the invoice. The purpose of the cash discount is to incentivize buyers to pay their bills quickly, which helps the seller to improve their cash flow and reduce the risk of bad debts.

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The article used as a means of exchange in the early days of trade in West Africa was Cowrie. Cowrie shells were used as a form of currency in many parts of Africa, including West Africa, due to their natural beauty, rarity, and durability. Cowrie shells were easy to transport, and their value was universally recognized, making them an ideal form of currency for use in trade. Cowries were used for trade in many parts of West Africa, including Ghana, Nigeria, and Gambia.

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A document that instructs an agent to buy goods from a named firm is called a "closed indent". It is a type of purchase order that specifies the details of the goods to be purchased, such as the quantity, price, and delivery date. The indent is "closed" because it is issued to a specific supplier or firm, as opposed to an "open indent" which is issued to multiple suppliers for competitive bidding. The closed indent is commonly used in international trade to facilitate the purchase of goods from a foreign supplier through a local agent or middleman.

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Average stock is a measure used in accounting to determine the average value of inventory held during a particular accounting period. It is calculated by adding the opening stock and closing stock of the accounting period and dividing the sum by 2. This gives the average stock held during the period. The formula for calculating average stock is: (Opening stock + Closing stock) ÷ 2. Therefore, the correct option is "opening stock to closing stock divided by 2".

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Consumers could be encouraged to purchase a company's products through advertisement. Advertisement is a form of marketing communication that is used to persuade and encourage consumers to buy a product or service. It involves creating awareness and promoting the features and benefits of a product or service to a target audience through various media channels such as television, radio, newspapers, magazines, social media, and billboards. Effective advertisement campaigns are designed to create a favorable impression of a company's product in the minds of consumers, ultimately leading to increased sales and revenue for the company.

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An organizational chart of a company shows the hierarchy of staff in the company. It is a graphical representation that shows the different levels of management and the relationships between them. The chart shows the chain of command, which indicates who reports to whom and who is responsible for which tasks. The chart can also show the different departments within the company and how they are related. The purpose of the organizational chart is to help employees understand the structure of the company and their roles and responsibilities within it.

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The right to buy on credit is not a right of a consumer. This is because credit is not a right but a privilege, which is extended to a consumer based on their creditworthiness. While consumers have the right to obtain credit if they meet the requirements, they do not have an inherent right to buy on credit. The other options listed are all rights of consumers. The right to a fair hearing ensures that consumers have a chance to express their views when there is a dispute. The right to obtain replacement guarantees that consumers can replace products that are faulty or defective. The right to a safe product ensures that products meet safety standards and do not pose a risk to consumers.

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Commercialization is a process that involves transforming state-owned enterprises into commercial or profit-oriented entities. The primary purpose of commercialization is to make state-owned firms more efficient by instilling private sector practices and management techniques into their operations. By doing this, state-owned firms can become more self-sustaining and less reliant on government subsidies, and ultimately contribute to economic growth. Commercialization can also encourage the flow of foreign capital and promote greater private sector participation in the economy.

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For an offer to be valid, it must be communicated to the offeree. This means that the person making the offer (offeror) must clearly express their intention to be bound by the terms of the offer to the person receiving the offer (offeree). The offeree must be aware of the offer, understand the terms of the offer and have the ability to accept or reject the offer. Without proper communication of the offer, there can be no valid offer, and therefore, no contract can be formed.

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A trade association is an organization that is formed by a group of businesses or companies in a particular industry. One of the main functions of a trade association is to promote and protect the interests of its members. This may include lobbying for favorable legislation, providing resources and support to help members navigate industry challenges, and promoting the industry as a whole to the public. Therefore, the option that best describes one of the functions of a trade association is "promote members' welfare."

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The answer is (a) direct advertising. Direct advertising is an advertising strategy that targets a specific group or audience based on their demographics, behaviors, interests, or preferences. The goal of direct advertising is to increase the likelihood of reaching potential customers who are more likely to be interested in the product or service being advertised. This is often achieved through targeted advertisements in specific media channels or platforms, such as social media or email marketing. Direct advertising is different from mass advertising, which is designed to reach a wide audience, regardless of their interests or preferences. Indirect advertising focuses on creating a favorable impression of a product or brand by associating it with other things that are appealing to the target audience. Persuasive advertising aims to convince the audience to take a particular action, such as purchasing a product or subscribing to a service.

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A cheque is specially crossed if the name of the bank is written between two parallel lines drawn across it. This type of crossing provides an additional layer of security to the cheque as it can only be paid into the account of the payee with the named bank. It prevents the cheque from being paid to any other bank or cashed over the counter. Therefore, the payee must deposit the cheque into their bank account for it to be cleared and the funds credited to their account.

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A partner who contributes only his name to the formation of a partnership is a "nominal partner". This means that the partner is not actively involved in the day-to-day operations of the business and does not make any significant contributions in terms of capital or expertise. The nominal partner is essentially a figurehead or a silent partner, and is usually included in the partnership agreement for the purpose of lending credibility to the business or to provide some other strategic benefit.

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The correct term for the payment made to a carrier for transportation of goods is "freight". Freight refers to the charge or fee paid for the transportation of goods by land, sea, or air. The cost of the freight can depend on various factors, such as the distance to be covered, the weight of the goods, the mode of transportation, and any additional services required.

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The act of removing government laws and allowing market forces to determine prices is called deregulation. This means that the government no longer regulates prices of goods and services, but instead allows market forces of supply and demand to determine the prices. Deregulation can occur in various industries, such as telecommunications, transportation, and energy, and it is often seen as a way to increase competition, improve efficiency, and lower prices for consumers.

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When a share with a nominal value of N50 is quoted at N70, it is being sold "at a premium". This means that the market value of the share is higher than its face value or nominal value. In other words, investors are willing to pay more than the actual value of the share because they expect the company's profits to increase, and the share price to rise further in the future. This is a common occurrence in the stock market, and it reflects the demand for the company's shares by investors.

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The law by which a seller transfers the property in goods to a buyer at an agreed price is the Sale of Goods Act. This act provides legal protection to buyers and sellers in the exchange of goods. It defines the terms and conditions of the sale, such as the price, quantity, quality, and delivery of the goods. It also outlines the rights and obligations of both the buyer and the seller in the transaction, such as the right to inspection and the right to reject faulty goods. Overall, the Sale of Goods Act helps ensure fair and smooth transactions between buyers and sellers.

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Commercial banks and central banks are both important players in the banking system. However, they perform different functions. One of the functions of commercial banks that cannot be performed by central banks is the collection of deposits from the public. Commercial banks accept deposits from individuals and businesses and use the money to make loans and investments. Central banks, on the other hand, are responsible for regulating the money supply, controlling inflation, and stabilizing the economy through monetary policy. While central banks can issue and redeem government securities such as treasury bills, they do not collect deposits from the public. Therefore, the correct option is: "collection of deposits from the public."

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The group that would most likely advocate for the supply of constant electricity to households is the consumers' association. This is because the consumers' association represents the interests of consumers and their goal is to ensure that consumers receive the best possible service. Access to constant electricity is a basic need for households, and the consumers' association would work to ensure that electricity providers are held accountable for providing a reliable and consistent supply of electricity to consumers. The credit union represents the interests of its members regarding financial services, while the employers' association represents the interests of employers, and the labor union represents the interests of employees. While access to electricity may be a concern for both employers and employees, it is not their primary focus, unlike the consumers' association.

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The commission on a postal order is known as poundage. Poundage is the fee charged by the post office for providing a postal order service. It is usually a percentage of the total amount of the order and is added to the cost of the order. This fee is charged to cover the cost of processing the order and to provide revenue for the post office. The amount of poundage charged may vary depending on the amount of the order and the location where the order is being sent.

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A retail business that sells goods by post, using catalogues is a mail order firm. This means that the customers can order products from a catalogue by mail or telephone and the products will be delivered to them by post. Mail order firms typically have a wide variety of products available for purchase, and customers can browse the catalogue at their leisure before making a purchase. They are often used for purchasing items that may not be readily available in local stores, or for convenience when shopping from home.

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An internal source of finance to an entrepreneur is "retained earnings." Retained earnings are the profits earned by a company that are kept within the company instead of being distributed as dividends to shareholders. These retained earnings can be used by the company to finance its operations, invest in new projects or ventures, or pay off debt. Therefore, it is an internal source of finance as the entrepreneur does not need to seek external sources like banks or other financial institutions to get funds.

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Dealers in the stock exchange such as bulls, bears and stags are categorized as "speculators". Speculators are investors who take on higher risks in order to make profits from market fluctuations. Bulls are speculators who believe that the market will rise and buy securities in anticipation of rising prices, while bears are speculators who believe the market will fall and sell securities to avoid losses. Stags, on the other hand, are speculators who buy shares at an initial public offering (IPO) and sell them quickly after listing for a profit.

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The provision of services is classified under tertiary production. Tertiary production is also known as the service sector of an economy. This sector is responsible for the production and delivery of services to customers rather than the production of physical goods. Examples of industries in the service sector include healthcare, education, transportation, hospitality, and consulting.

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A country's visible balance of payments is made up of earnings from goods exported. This refers to the income that a country receives from selling its products and services to other countries. It includes both physical goods, such as cars and electronics, as well as intangible goods, such as software and financial services. Other items, such as interest on loans to foreign countries, profit from investment abroad, and dividend earned from companies, are not included in the visible balance of payments, but are instead part of the country's overall balance of payments.

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After-sales service is the correct answer. After-sales service refers to the support provided to customers after they have purchased a product or service. This includes services such as repair, maintenance, and technical support. In this case, the undertaking to repair a customer's vehicle for a certain period after it has been sold is an example of after-sales service. The purpose of after-sales service is to ensure customer satisfaction, build customer loyalty, and increase the likelihood of repeat business.

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The service of a retailer is considered a part of production because it plays a critical role in making finished goods available to consumers. Retailers provide the necessary link between producers and consumers by purchasing goods from manufacturers and making them available for purchase by end-users. Without retailers, finished goods would not be able to reach the intended consumers, which would disrupt the entire production process. Furthermore, retailers also help to increase consumers' standard of living by providing them with access to a wide variety of goods and services. Hence, the service of a retailer is an integral part of the production process.

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Public enterprises provide essential goods and services at low cost to citizens. Public enterprises are government-owned and operated entities that provide goods and services to the public at a subsidized rate, with the aim of ensuring that basic necessities are available to all citizens, regardless of their ability to pay. Examples of public enterprises include water supply, electricity, transportation, and healthcare.

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An advantage of rail transport is that it is suitable for transporting bulky and heavy goods. Railways have large carrying capacity and can transport huge quantities of goods over long distances. The rail infrastructure can handle heavy and bulky goods such as minerals, coal, timber, and machinery, which would be difficult or expensive to transport by road or air. This is because railways can support heavier loads and are not subject to weight restrictions like road transport. Therefore, rail transport is a cost-effective and efficient means of transporting heavy goods in large quantities over long distances.

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The quality of money which makes it possible to buy goods in small quantities is divisibility. Divisibility refers to the ability of money to be divided into smaller units and still retain its value. This allows for transactions to occur for small amounts, as well as for larger amounts. For example, a dollar can be divided into 100 cents, making it possible to buy goods that cost less than a dollar. This quality is important for the convenience of trade and commerce, as it enables the exchange of goods and services for any desired amount of money.

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The marketing concept emphasizes the consumer's satisfaction at a profit. This means that businesses should focus on identifying and satisfying the needs and wants of their target customers, rather than simply producing and selling goods. By understanding and meeting the needs of consumers, businesses can build strong relationships with their customers and ultimately drive profitability. The marketing concept involves researching and analyzing customer needs, developing products that meet those needs, promoting those products effectively, and providing high-quality customer service.

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A shareholder would inspect the Articles of Association to know his voting rights. The Articles of Association outlines the rules and regulations governing the internal management of a company, including the voting rights of shareholders. The document specifies the number of votes each shareholder is entitled to, the conditions under which votes can be cast, and the procedures for voting. The other options, such as the Certificate of Incorporation, Certificate of Trading, and Memorandum of Association, do not provide information about the voting rights of shareholders.

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