WAEC SSCE - Commerce - 2016 (Objective)

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When an importer has been overcharged for goods supplied, the exporter issues him with a credit note. A credit note is a document issued by a supplier to their customer, indicating that the customer's account has been credited for the value of goods or services returned or for an overcharge. In other words, a credit note is a way for the supplier to rectify an error in the original invoice by giving a credit to the customer's account, which can be used against future purchases. Therefore, in this case, the exporter issues a credit note to the importer to rectify the overcharge on the goods supplied.

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The business unit that applies the principle of one man one vote is a cooperative society. In a cooperative society, every member has equal voting rights, regardless of their level of investment or ownership stake in the business. This means that each member, regardless of the number of shares or their financial contribution to the cooperative, has an equal say in the decision-making process. The one man one vote principle is a key feature of the democratic nature of cooperative societies, which are typically run for the benefit of their members.

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The value at which one country obtains another country's currency is called the exchange rate. It is the rate at which one currency can be exchanged for another currency. For example, if someone wants to exchange US dollars for Japanese yen, the exchange rate will determine how many yen they can get for each dollar. The exchange rate is influenced by various factors, such as the supply and demand for each currency, inflation rates, interest rates, and political stability. The exchange rate can have a significant impact on trade between countries. If one country's currency is strong relative to another country's currency, it can make the first country's exports more expensive and less competitive in the second country's market. On the other hand, a weak currency can make a country's exports more affordable and attractive to foreign buyers.

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The process of buying, selling and distribution of goods and services is referred to as "commerce". It involves activities such as advertising, promoting, selling, and delivering products or services to customers, as well as managing the relationships between buyers and sellers. Commerce includes different types of transactions such as buying and selling of goods, services, or ideas. The process of commerce involves a wide range of activities such as production, distribution, transportation, warehousing, and retailing. Therefore, commerce is a vital aspect of any economy, as it facilitates the exchange of goods and services between producers and consumers, leading to economic growth and development.

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A person or firm to whom money is owed is called a creditor. This means that someone else owes them money and they have the right to receive payment from that person or entity. For example, if you borrow money from a bank, the bank becomes your creditor and you become the debtor because you owe the bank money. Similarly, if you buy goods or services from a supplier on credit, the supplier becomes your creditor until you pay them back.

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A dishonoured cheque is also known as a bounced cheque. This is because when a cheque is dishonoured, it means that the bank has refused to pay the cheque amount to the beneficiary due to insufficient funds in the account of the drawer of the cheque. As a result, the cheque "bounces" back to the beneficiary and is considered invalid.

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The principle applicable where a number of insurance companies are liable under one policy is "contribution". Contribution means that each insurer is liable to contribute a proportionate amount to the loss covered by the policy. This applies in cases where multiple insurers have provided coverage for the same risk, and ensures that the insured is fully compensated for the loss without any one insurer having to bear the entire burden. The amount each insurer is required to contribute is generally determined by the terms of the policy, and is proportional to the amount of coverage each has provided.

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An agreement that is enforceable in law is a contract. A contract is an agreement between two or more parties that creates legal obligations between them. In other words, it is a legally binding agreement that can be enforced through the courts. To be a valid contract, there must be an offer, an acceptance, a consideration, and an intention to create legal relations. Once all of these elements are present, the parties are bound to fulfill their respective obligations as outlined in the contract. Therefore, a contract is the only option among the given choices that fits the definition of an enforceable agreement in law.

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The production of goods in anticipation for demand is made possible by warehousing. Warehousing is the process of storing goods until they are needed or ready to be shipped to customers. By having a warehouse to store goods, companies can produce items in advance and keep them in storage until they are needed. This allows companies to be prepared for future demand, as they can quickly ship out the goods that have been stored in the warehouse as soon as customers start placing orders. Additionally, warehousing can also help to reduce costs by allowing companies to buy raw materials in bulk and store them until they are needed for production.

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The Water Corporation is an example of a public enterprise. Public enterprises are organizations that are owned and operated by the government, either at the national or local level. They are created to provide essential goods and services, such as water, electricity, and transportation, to the public. These enterprises are usually established to ensure that these services are provided at an affordable cost to the general public, as well as to help stimulate economic growth and development.

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The fees charged on postal orders by the post office is called "poundage." Poundage is the fee charged by the post office for the service of issuing a postal order. It is usually a percentage of the face value of the postal order and is intended to cover the administrative costs of providing the service. For example, if a postal order is issued for $100 and the poundage rate is 5%, the poundage fee would be $5.

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The correct answer is speculation. Speculation is the practice of buying and selling assets, such as stocks, in the hope of making a profit by anticipating the future movements of prices. In the context of the stock exchange, speculation involves taking on risk in the expectation of a reward. Speculators buy stocks when they believe the price will rise, and sell when they believe it will fall. It is important to note that speculation carries a higher degree of risk than other forms of investment, as it is based on uncertain predictions and can result in significant losses.

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Production ends when goods and services reach the final user. This means that the products have been manufactured, packaged, labeled, and sold to the end-user or consumer. The production process involves converting raw materials into finished goods or services that are ready for consumption. Once the products are sold to the final user, the production cycle is complete, and the process of creating new products can begin again.

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In a law of contract, a counter offer operates as a rejection. This is because a counter offer is made by the offeree in response to an offer made by the offeror, and it effectively terminates the original offer. The counter offer changes the terms of the original offer and proposes a new set of terms. Therefore, it is a rejection of the original offer and a new offer is created by the offeree. If the original offeror accepts the new terms proposed in the counter offer, a new contract is formed based on those terms.

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The correct answer is "nationalization". Nationalization is a government policy where private businesses and industries are taken over and run by the state. This policy is usually implemented in strategic industries such as energy, telecommunications, or transportation to ensure that the government has control over key sectors of the economy. Nationalization aims to achieve a number of objectives such as enhancing efficiency, promoting social welfare, and reducing the influence of private interests in the economy. By owning the businesses, the government is able to control the production, pricing, and distribution of goods and services, which can have a significant impact on the overall economy.

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One disadvantage of advertising is that it could be misleading. Advertisements are often designed to make products or services appear more desirable than they actually are. This can lead to consumers being disappointed when they purchase the product or service and find that it does not live up to their expectations. Misleading advertising can also be harmful if it promotes products or services that are not safe or effective, putting consumers at risk. In addition, advertising can be costly, and if the advertisements are not effective, they can reduce sales and profits. Companies may invest a significant amount of money in advertising campaigns that do not result in increased sales, leading to a reduction in profits. Another disadvantage of advertising is that it can cause overstocking. If a company overestimates the demand for a product based on the success of an advertising campaign, they may produce or purchase too much inventory, which can lead to excess inventory and storage costs. Overstocking can also result in price reductions and lower profit margins. Overall, while advertising can be an effective way to promote products and services, it is not without its disadvantages. Misleading advertising, reduced sales and profits, and overstocking are some of the potential downsides of advertising that companies should consider when deciding whether to invest in advertising campaigns.

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When a cheque is paid on a bank on which it is drawn, the cheque is cleared. This means that the bank has verified that the account on which the cheque was drawn has sufficient funds to cover the amount stated on the cheque. Once the cheque is cleared, the bank will debit the account of the person who wrote the cheque and credit the account of the person or organization who received the payment. The funds will then be transferred from the account of the person who wrote the cheque to the account of the person or organization who received the payment. This process usually takes a few days to complete.

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Specializing in the sale of one line of goods is the main feature of a chain store. A chain store is a type of retail store that operates multiple locations and focuses on selling a single line of products. This means that all of the stores in the chain sell the same type of products, such as clothing, electronics, or home goods. For example, a chain store like Gap specializes in selling clothing, while Best Buy specializes in selling electronics. This focus on a single line of goods allows chain stores to develop expertise in their chosen area, offer a wide variety of products within that area, and often offer competitive prices due to their scale and specialization. In contrast, supermarkets typically sell a wide range of products, including food, household items, and personal care products. Mail order firms sell a range of products through catalogs or online platforms, and mobile shops may sell a variety of products out of a truck or other mobile unit.

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The internal environment of a business includes factors that are within the organization's control. Therefore, the person who is part of the business internal environment is an employee. Employees are individuals who work for a company and are essential to its operations. They can include managers, staff, and workers, among others. The actions and decisions of employees can have a significant impact on the success of the business. The other options, such as suppliers, creditors, and customers, are part of the business's external environment, as they are not part of the organization itself.

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If a business uses part of its profit to develop the area where it operates, it is fulfilling its social responsibility. Social responsibility refers to a business's ethical obligations to consider the interests of society, including the community, the environment, and its employees, beyond its legal and economic obligations. Fulfilling social responsibility often involves initiatives such as community development, charitable donations, and environmentally friendly practices.

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The verbal means of communication involves the use of spoken words to convey a message. Therefore, the option that best fits this description is the telephone. The other options listed are all written means of communication. Telex involves sending written messages over a network, express mail and business reply service involve sending written documents or letters, while the telephone involves using spoken words to communicate in real-time.

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Branding is a concept of marketing. It involves creating a unique name, symbol, design or combination of these elements that identify and differentiate a product or service from those of competitors. The aim of branding is to build customer loyalty and brand equity, which refers to the added value a brand name gives to a product or service beyond the functional benefits it provides. A strong brand can increase customer recognition, improve market position, and ultimately increase sales and revenue.

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The organized efforts of consumers to protect themselves against the unfair practices of businessmen is consumerism. Consumerism refers to the social movement that aims to protect and inform consumers about their rights and interests in the marketplace. In other words, consumerism is the collective effort of consumers to demand fair treatment and better products from businesses. This can include efforts to inform consumers about product safety, to advocate for consumer protection laws, and to hold businesses accountable for unethical practices. Consumerism can take many forms, including consumer advocacy groups, product boycotts, and protests against businesses that engage in unfair practices. Ultimately, the goal of consumerism is to promote a fair and equitable marketplace that benefits both consumers and businesses.

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One objective of the European Union is to eliminate all tariffs and quotas among member countries. The EU is a political and economic union of 27 member states located primarily in Europe. One of its primary goals is to promote economic cooperation among its members by eliminating barriers to trade such as tariffs and quotas. This helps to create a more integrated and efficient European market, which in turn can lead to increased economic growth and prosperity for all member states. By eliminating tariffs and quotas, goods and services can flow more freely within the EU, and member states can benefit from increased access to larger markets and a wider range of goods and services.

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A general tax which applies at each point of exchange of goods and service is called "Value Added Tax" or "VAT". It is an indirect tax that is levied on the value added to goods and services at each stage of production and distribution. VAT is based on the increase in value of the product or service at each stage of production or distribution, rather than on the final selling price. The tax is usually a percentage of the value added, and is paid by the consumer at the point of purchase. VAT is a common form of taxation used by many countries around the world.

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Fidelity guarantee insurance is a type of insurance that provides protection against losses that may occur due to the dishonest actions of an employee. In other words, if an employee engages in fraudulent activities that result in financial losses for the company, this insurance can help cover those losses. For example, if an employee embezzles funds from their employer, fidelity guarantee insurance can help cover the resulting financial losses. Similarly, if an employee steals inventory or engages in other dishonest activities that result in financial losses, fidelity guarantee insurance can help cover those losses as well. It is important to note that fidelity guarantee insurance only covers losses that result from the dishonest actions of employees. It does not provide coverage for other types of losses, such as those that may result from a fire disaster or personal accident.

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The document that contains the relationship between the company and outsiders is the memorandum of association. It is a legal document that sets out the constitution of the company and defines the company's relationship with the outside world, including its objectives, powers, and the rights of its members. The memorandum of association is one of the key documents that must be filed when a company is being registered. It is a public document that anyone can access to find out information about the company, such as its name, registered office address, and the objects for which it was incorporated.

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Endowment policy is an example of life insurance. It is a type of insurance policy that provides both life insurance coverage and a savings component. The policyholder pays regular premiums over a set period of time, and upon the policy's maturity or in the event of the policyholder's death, a lump sum payment is made to the beneficiary. The savings component of the policy can be used to pay for future expenses such as college tuition, retirement or any other financial goals.

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The main emphasis of regarding the consumer as the king who must be satisfied is the marketing concept. The marketing concept is a business philosophy that focuses on meeting the needs and wants of customers while also achieving organizational goals. The marketing concept recognizes that the key to achieving organizational success is to understand the needs and wants of customers and to deliver products and services that satisfy those needs and wants better than the competition. Therefore, the marketing concept places a strong emphasis on customer satisfaction and is often summarized as "the customer is king." By prioritizing customer satisfaction, companies can build strong relationships with customers, generate repeat business, and ultimately achieve long-term success.

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Risk bearing in a business organization is a function of the entrepreneur. An entrepreneur is an individual who takes on the financial risk of starting and operating a new business venture. They are responsible for making decisions regarding the allocation of resources, setting prices, and creating strategies to maximize profits. Since they have a personal stake in the success of their business, entrepreneurs are willing to take on the risk of potential losses in order to reap the rewards of potential gains. In this way, risk bearing is a critical function of entrepreneurship.

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The document issued by a warehouse keeper for goods taken into the store is called a dock warrant. A dock warrant is a legal document that serves as proof of ownership of goods stored in a warehouse. When goods are delivered to a warehouse, the warehouse keeper issues a dock warrant to the owner of the goods, acknowledging receipt and acceptance of the goods into storage. The dock warrant contains details such as the description of the goods, quantity, and storage location within the warehouse. The owner of the goods can use the dock warrant as evidence of ownership, as well as to transfer ownership of the goods to another party, such as a buyer or lender.

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The component of the marketing mix that is put in a consumable form to satisfy the consumer is the "product". A product is any tangible or intangible thing that a business offers to its customers to satisfy their needs or wants. It can be a physical item like a car, a book, or a piece of clothing, or it can be a service like a haircut, a massage, or an insurance policy. The product is the heart of the marketing mix, as it is the main reason why customers will choose to do business with a company. It must be designed and developed with the customer in mind, and it must provide value and benefit to the customer in order to satisfy their needs or wants. In summary, the product is the component of the marketing mix that is put in a consumable form to satisfy the consumer, as it is the tangible or intangible thing that a business offers to its customers to meet their needs or wants.

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A clean bill of lading is so called because it shows no record of damaged goods or discrepancies in the quantity or quality of goods being transported. It is a document issued by the carrier or their agent that serves as a receipt for the goods and a contract of carriage. The term "clean" means that the goods have been received in good order and condition, and the carrier assumes full responsibility for their safe transport to the destination. It is an important document in international trade as it is used to prove ownership of the goods and to facilitate payment by the buyer to the seller.

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Trade associations are groups of businesses that come together to promote their shared interests. They perform various functions such as representing their members, lobbying the government, and setting industry standards. However, one of the options is not a function that is typically performed by trade associations. Credit facilities are not typically provided by trade associations. While some trade associations may offer their members access to financing or credit, it is not a primary function of such associations. Instead, trade associations are primarily focused on promoting the interests of their members and improving the overall business environment in their industry.

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The legislation that aims primarily at the protection of consumers is the Trade Description Act. This law requires that any product or service being sold must be described truthfully and accurately. It prevents businesses from deceiving consumers through false advertising or making misleading claims about their products or services. This helps consumers make informed decisions and protects them from being taken advantage of by unscrupulous businesses. The other laws listed, such as the Law of Contract, the Companies Act, and the Partnership Act, do not focus specifically on consumer protection, although they may have some provisions that offer consumer protection indirectly.