Expo: WAEC Commerce Questions and Answers 2021/2022 – theory / Objective
January 4, 2022
Are you looking for 2021/2022 WAEC commerce questions and answers (expo) for both theory and objectives. You are in the right place. You can read them below.
I will be showing you the recent WAEC commerce past questions and answers for free for commercial students. You will see how your senior WAEC commerce examination will look. I will also show you tips on how to pass your WASSCE commerce exam easily without any stress.
Commercial questions, sometimes, appear to be one of the easiest papers in examination. However, it should not be underated because it is capable of making someone to embark on another WAEC journey. For that reason, I decided to show you the likely questions and answers by giving you recent WAEC questions for commercial students. I highly recommend this post for you.
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This post contains both the WAEC commerce Objectives and the Theory answers.
2021 WAEC commerce Theory answers
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Paper 2 [Essay]
Instruction: Answer any FOUR questions. Write your answers on the answer booklet provided.
-Choose any 5-
(i) Commerce promotes rapid transfer of both oral and written messages through communication.
(ii) Commerce facilitates exchange of goods and services which people all over the nation enjoy produced within or outside their own nation.
(iii) Commerce creates revenue/wealth for the nation through collection of tariff duties royalties and tourism.
(iv) Commerce makes for the protection against risk in the day-to-day business operations through insurance.
(v) Commerce creates awareness of the existence of goods and services through advertising.
(vi) Commerce ensures that goods and produced are stored until needed, thus making sure that there is steady supply of goods for the nation through warehousing.
(vii) Commerce offers employment to a large number of people in a nation such as traders, retailers, wholesalers, bankers brokers.
(viii) Commerce provides money and banking facilities through creation of means of payment, loans and advances.
(ix) Commerce assist in movement of people, materials and finished goods from production point to consumption point.
(x) Commerce encourages cooperate and friendliness among nations.
(xi) Commerce improves peoples standard of living through provision of varieties of goods and services.
interest is income that lenders (usually banks) 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.
Share is 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 indebtedness of the company.
Ordinary shares, also called common shares, are stocks sold on a public exchange WHILE Preference shares are company stock with dividends that are paid to shareholders before common stock .
Cumulative preference shares give the shareholder a right to dividends that may have been missed in the past WHILE participating preference shares are shares that received additional income by participating in the further sharing
cum div; These is to refer to a stock trading such that buyers qualify to receive the next dividend payment. Stocks trade cum dividend until the fifth business day before the record date WHILE ex div denotes the sale or transfer of stocks or shares exclusive of the next dividend.
Cumulative preference shares contain all the features and benefits of ordinary preference shares such as entitlement to higher dividend payouts, preference in payment of dividends, and preference in payment over equity shares during liquidation of the company
Participating preferred stock is a type of preferred stock that gives the holder the right to receive dividends equal to the customarily specified rate that preferred dividends are paid to preferred shareholders, as well as an additional dividend based on some predetermined condition.
(i)Medium of Exchange: Money can serve as a medium through which money can exchange goods and services. Money can be used to buy different variety of goods and services. This facilitates the means of exchange. It came into use as a result of the inadequacies of the barter system. Money is therefore widely acceptable as payment for debts.
(ii)Standard of Deferred Payment: Since money can be stored, it can be accumulated to pay debts that are fixed in terms of money. Money can serve as a medium by which business transactions on credit can be settled in the future. The use of money makes it possible for payments to be deferred from the present to some future date.
(iii) Unit of Account: In serving as a unit of account, it becomes practically possible for individuals and companies to keep accounting record of their transactions in bank statements, ledgers and invoices.
(iv) Store of Value: Money is a good store of value because wealth can be stored for future use. When there is no inflation, money stored or saved retains its value for many years.
(V) As a Measure of Value: The values of goods and services are expressed by prices, therefore money is used as a yardstick to measure and compare the worth of goods and services as well as occupation.
5a) An entrepôt trade is a port, city, or trading post where merchandise may be imported, stored or traded, usually to be exported again.
*A bill of lading* : is a legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried. A bill of lading is a document of title, a receipt for shipped goods, and a contract between a carrier and shipper.
*Consignment* : Note means the document containing all the particulars of the Goods issued by the Carrier for the movement of the Consignment delivered to the Customer by the Carrier.
*Bill of sight*: Bill of sight is a document that a person importing that a person importing goods who cannot fully describe them, gives to the customs authorities, allowing them to examine the goods when they arrive.
Economic grouping may be defined as the coming together of different countries with a common economic interest and goals with a view to promoting economic cooperation and development among member States.
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Commerce past questions below
1. (a) Differentiate between Industry and commerce
(b) List and explain four activities of those engaged in commercial occupation.
ANS: (b) (i) Banking: Those working as bankers provide facilities for saving, borrowing, investing and payments for business transactions.
(ii) Advertising: Advertising practioners inform potential buyers and sellers about existence, nature, use, price of goods and services through various advertising media.
(iii) Insurance: Insurers provide cover for business risks and compensation in case of loss etc.
2. Explain five benefits that would be derived and five losses that would be suffered when a Sole trader admits other partners.
ANS: (a) Benefits to a Sole Trader
(i) Better decision making
(ii) Possibility of more profit
(iii) Greater degree of continuity etc.
(b) Losses to Sole Trader
(i) The death of a general partner may collapse the business
(ii) Disagreement among members can affect the smooth running of the business
(iii) Actions of a partner is binding on the firm. Therefore misconduct of an unscrupulous partner may ruin the business.
3. (a) State five features of partnership business.
(b) Explain five reasons why government participate in business.
4. Explain the following insurance terms:
(a) proximate cause
(c) utmost good faith
(e) contract of non-indemnity (compensation).
5. List and explain four documents involved in the formation of a Public Limited Company.
ANS: (a) Declaration:
(i) This is a statement in writing to the registrar of Companies by the promoter.
(ii) It is states that the requirement of the companies have been compiled with
(iii) It is a declaration that adequate capital has been raised etc.
(b) Trading Certificate:
(I) This is document issued by the Registrar of companies
(II) It gives the public company the right to commence the business for
which it was formed, etc.
6. (a) Explain the following:
(i) counter trade;
(ii) entreport trade;
(iii) import trade;
(iv) invisible trade.
(b) State four burners to International trade.
ANS: (i) Counter Trade: This is a system of International trade where countries instead of paying cash for the goods they purchase from other Countries will pay.
(ii) Entreport Trade: This is a system of trade where goods imported into a country are re-export while the goods are still in the same form as they were received.
(iii) Import Trade: This is a system of trade where goods are brought into a country from another country.
(iv) Invisible Trade: This is a type of International trade involving intangible products such as services or Banking, shipping services colu requires payment of money.
7. (a) What is transportation?
(b) Explain dead freight.
(c) List and explain five factors that will determine a seller’s mode of transportation.
8. (a) What is hire purchase?
(b) Give two advantages and two disadvantages of each of hire purchase to:
(i) the buyer
9. (a) Explain four functions of the Stock Exchange
(b) Explain four ways by which the Central Bank regulates the activities of Commercial banks.
10. (a) State five factors that can affect the rate of turnover of a company
(b) What is Working Capital?
(c) Explain four importance of working Capital.
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Today’s WAEC Commerce OBJ Answers
2021 WAEC Possible Commerce Questions and answers
The following WASSCE Commerce likely questions are questions to expect in the 2021 commerce examination.
The questions below are the WAEC past questions and answers that will help you in your 2021 WAEC commerce Questions.
1. Commerce can be defined as the study of how
A. man utilizes the resources in his physical environment
B. man produces, distributes and consumes his goods and services
C. man buys, sells and distributes goods and services
D. raw materials are changed into finished goods
ANSWER: C (man buys, sells and distributes goods and services)
2. …… activity turns processed raw materials into consumer and industrial goods is described as
ANSWER: B ( manufacturing )
3. The production process that combines two or more raw materials into one end product is
ANSWER: B (blending)
4. A demonstration of social responsibility by a business is the payment of
A. taxes to government
B. dividends to shareholders
C. interests on loans
D. premium on insurance
ANSWER: A (dividends to shareholders)
5. A distinguishing characteristics of a limited liability company is that it
A. is a collection of many sole proprietors
B. is a multiple partnership
C. can sue and be sued
D. has limited resources
ANSWER: C (can sue and be sued)
WAEC Commerce Practice Questions
Candidates should attempt the following questions:
1. What does the term commerce describe?
A aids to trade and direct services
B direct services and industry
C industry and trade
D trade and aids to trade.
2. Division of labour in a firm leads to
A diseconomies of scale.
B longer working hours for the workforce.
C standardisation of products.
D the workforce being multi-skilled.
3. Industry, commerce and direct services are all needed for production because
A they are dependent on each other.
B they exist to create specialisation.
C they provide services to each other.
D they sell goods to each other.
4. Which function is not performed by a retailer?
A displaying goods
B grading goods
C manufacturing goods
D supplying goods.
5. The picture below shows a plastic card used by consumers.
Which type of card is shown?
A cash and carry card
B credit card
C debit card
D loyalty card.
6. What is the main disadvantage of e-commerce to the customer?
A danger of credit card fraud
B power failure during a transaction
C retailer running out of stock of the items ordered
D wrong goods supplied by the retailer.
7. Many people obtain credit from their local shops.
What is this called?
A cash discount
8. Problems with faulty goods have led to the growth of
A consumer protection.
C mail order.
D persuasive advertising.
9. What is a disadvantage of rapid and accurate communication systems?
A ability to communicate one message to multiple addresses
B employees within a company are not linked using networks
C greater speed of communication between businesses in different countries
D increased cost and complexity of methods used.
10. What is an advantage of telephone communication in business?
A copies of documents may be transmitted
B messages can be corrected before transmission
C problems may be discussed
D visual contact is made.
11. Which methods of transport are most likely to be used to transport oil from Australia to
A canal and sea
B pipeline and sea
C rail and pipeline
D road and air.
12. What is an advantage of containerisation in sea transport?
A avoidance of customs duty
B carriage of one type of product at a time
C fast turnaround of ships at ports
D quick unpacking of goods at docks.
13. A washing machine manufacturer wishes to promote a newly-designed product.
Which advertising medium would reach the most consumers?
14. Which factor plays a part in the increasing volume of air freight that is being transported
A availability of larger aircraft
B fluctuating aviation fuel prices
C increased international terrorism
D increased tourism.
15. Which airport facility is likely to be the most important to a business exporting goods through an airport?
A currency exchanges
B duty free shops
C lifting gear
D luggage handling.
16. Warehousing is unlikely to be part of the chain of distribution for
A canned food.
17. The diagram shows part of a credit note.
How is the document used?
A The buyer sends it to the supplier after goods have arrived damaged.
B The buyer sends it to the supplier’s bank to pay for goods supplied.
C The supplier sends it to the buyer after goods have been returned damaged.
D The supplier sends it to the buyer’s bank to cancel over-payments.
18. Which of the following take place when firms producing at different stages in the same industry combine.
B. Vertical integration
C. Horizontal integration
19. What are the fixtures and fittings in a balance sheet?
A. Liquid capital
B. Current assets
C. Fixed assets
D. Working capital.
20. One of the functions of sea ports is the provision of ______
A. Berthing and land facilities
B. Loading and offloading facilities
C. Control room for relaying radio messages
D. Ware house of storage of cargo.
21. Stimulation of demand is a kind of communication in marketing which connotes ______
A. Personal selling
B. Sales promotion
22. In the event of liquidation of a company, the first to be settled are
A. Debenture holders
B. Members of the board
C. Preference shareholders
D. Ordinary shareholders.
Disclaimer: The questions above are not this year’s commerce questions. Instead, they are the likely and past questions mainly for practice to enable the commercial students do well in their examination.