NECO Commerce Questions and Answers 2022/2023 – Essay and Objective

Questions & Answers for NECO SSCE Commerce 2022. I will provide you with free NECO Commerce objective and theory questions and answers. You’ll also learn how NECO Commerce questions are constructed, as well as a variety of other examination information.

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Today’s NECO Commerce Answers

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NECO-COMMERCE-2022-ANSWERS
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[OBJECTIVES]

01-10:
11-20:
21-30:
31-40:
41-50:
51-60:

Stay Tuned… OBJ to be updated soon

NUMBER 1
(1a)
Crossed cheque is the type of cheque in which no cash withdrawal can be done.The amount can only be transferred from the drawer’s account to the payee’s account. *While*; Stale cheque is one which cannot be honoured because the reasonable period is expired.

*OR*

*Stale cheque* is one which cannot be honoured because the reasonable period is expired. As against, a *Post-dated cheque or crossed cheque* is a cheque which is drawn today but contains a future date for payment.

(1b)
i.Cash (bills and change): Cash is one of the most common ways commercial banks pay their customers. Both paper money and coins are included under the larger category of “cash.” While cash has the advantage of being immediate, it is not the most secure form of payment since, if it is lost or destroyed, it is essentially gone. There is no recourse to recoup those losses.

ii. Personal Cheque (US check): These another payment method that commercial banks do operate on. They are essentially paper forms the buyer fills out and gives to the seller. The customer gives the cheque to their bank, the bank processes the transaction, and a few minutes later the money is deducted from the customers account.

iii.Debit Card: Paying with a debit card takes the money directly out of the customer’s account. It is almost like writing a personal cheque, but without the hassle of filling it out. E.g ATM Card

iv.Credit Card: Credit cards look like debit cards. But paying with a credit card temporarily defers the customer’s bill. At the end of each month, the customer’s receives a credit card statement with all transactions performed.Credit cards can be used for both online purchases and at physical retailers.
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NUMBER 2
*Neco Commerce*

(2a)
i. Cartel: Cartel is where two or more businesses agree not to compete with each other. This conduct can take many forms, including price fixing, dividing up markets, rigging bids or restricting output of goods and services.

ii. Consortium: Consortium is an alliance of companies, individuals, or other entities that got together to achieve a specific objective. The objective benefits all the parties. Examples include lobbying for regulatory changes, bidding on a large projector, or increasing partners’ purchasing power to get better deals.
In other words, it is a business club that offers benefits to its members.

iii. Trust: Trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. In finance, a trust can also be a type of closed-end fund built as a public limited company.

(2b) =(Pick any 4)=
i. Diversification.
ii. Acquisition of assets.
iii.Increase in financial capacity.
iv.Tax purposes.
v. Incentives for managers.
vi. Value Creation
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NUMBER 3

(3a) =(Choose any 3)=

i. Market Research: The marketing division under research is mainly concerned with actual and potential buyers. It determines why and when the buyers buy goods or are not interested in buying goods; how and where the market for goods can be expended and at what cost. The time limit for expanding the market, and the probable fluctuations in demand and supply—these, too, must be taken into consideration.

ii. Promotion: Promotion of product and services refers to providing information to the customers about the firm’s products, their features, uses, prices etc and persuading them to buy these products. Advertising, Personal selling. Publicity and Sales Promotion are the main tools of promotion. A marketer has to decide about the promotion budget, promotion mix (i.e. combination of promotional tools) etc.

iii. Packing and Labeling: Packaging means designing the package for the product while labelling is concerned with putting label on the package. Packaging and labelling have been recognized as pillars of marketing. They not only provide protection to the product but also act as a promotional tool.

iv. Branding: Branding is a process of giving a brand name to a product to differentiate it from competitor’s products, in building customers’ loyalty and in promoting the product. The most important decision under this strategy is whether to give a separate brand name or same brand to all products of a business firm.

v. Storage or Warehousing: There is a time gap between production and consumption of goods. Thus it is an important function of marketing to provide for proper storage of such goods until they are demanded. For example, apples are produced in winter are stored in cold storages and sold even in summer.

(3bi)
Form Utility: Form utility is an economic concept that identifies the value obtained by consumers from products designed in the most convenient ways for them. It is the idea that a product or service is more valuable for the consumer if the way it is presented and modeled matches is actual needs.

(3bii)
Possession Utility: Possession utility is the value customers have while buying a product and they have the choice to use the product for the purpose it was made for or finding a new way to use the product.
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NUMBER 4
(4a)
Entrepot:An intermediary storage facility where goods are kept temporarily for distribution within a country or for re-export.

(4b)
i. Tariffs: Tariffs are fees paid on imported goods. Tariffs increase the price that consumers pay for the good, thus reducing the quantity of the good demanded and making the price more in line with the price charged by domestic producers. Tariff profits may go to the government or to developing industries.

ii. National Security:
Another reason for restricting trade is that free trade threatens national security. The reasoning behind this is that trade allows countries to become dependent on other countries to supply vital resources. In the case of a war, these dependencies can become a liability, if countries are unable to be self-sufficient and produce essential goods themselves.

iii. Quota: Quota system imposes restrictions on the specific number of goods imported into a country. Quota systems allow governments to control the quantity of imports to help protect domestic industries.

iv. Subsidies: Subsidies are grants given to domestic industries to help them develop and compete with foreign producers.Through subsidies,domestic producers can charge less for their goods without losing money due to outside grants.

v. Currency devaluation: Currency devaluation is the official lowering of the value of a country’s currency under a fixed exchange rate regime. To the extent that most countries have floating exchange rate regimes, currency devaluations are relatively rare. Under a floating exchange rate system, in which exchange rates are determined by market forces, a decrease in the value of a currency relative to others is called depreciation.

NUMBER 5

5a
1. Sales tax
2. Administrative Expenses
3 Freight and carriage on sales
4. Selling and distribution Expenses

{EXPLANATION}
1.Sales tax
Sales Tax is the type of indirect tax which is levied on the number of sales, considering the exempt and nonexempt supplies, tax is collected from the recipient of goods, making it an indirect way of tax collection, and ultimately is paid to the government.

2. Administrative Expense
Administrative expenses are business expenses that are not related to the cost of goods or sales, such as salaries of office staff, insurance, and legal and accounting costs. The company’s administrative expenses can be divided into personnel, travel, building occupancy and other similar costs.

3 Frieght and carriage on sales
Freight is clearly a direct cost that’s associated with a product sale, so it has to be in the cost of goods sold. It doesn’t relate to the daily operations of the business, and so it shouldn’t be included in the sales department, or for that matter in the general and administrative area.
The carriage on sales is carriage outwards as the carriage deals outwardly with the cost of shipping and storage borne by the company when delivering the goods to a customer. It is shown in the income statement in the cost of the goods sold section. This also be presented in the balance sheet asset side.

4. selling and distribution expenses
Selling expenses are those expenses which are incurred to promote sales and service to customers. … Distribution expenses, on the other hand, are those which are incurred for warehousing and storage, packing for goods sent and making the goods available for delivery to customers.

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NUMBER 9
(9a)
Breach of contract:Breach of Contract is a violation of any of the agreed-upon terms and conditions of a binding contract. The breach could be anything from a late payment to a more serious violation such as the failure to deliver a promised asset. A contract is binding and will hold weight if taken to court.

(9b)
Contract: A Contract is a legally binding agreement that defines and governs the rights and duties between or among its parties. A contract is legally enforceable when it meets the requirements of applicable law. A contract typically involves the exchange of goods, services, money, or a promise of any of those.

(9c)
Contract under seal: contract under seal or a deed, is a written document that, when “sealed” is distinguishable from a contract. A deed is a formal document that gives the clear indication that a person or entity gives its most sincere promise that they will fulfil contractual obligations.

(9d)
Void contract: A Void contract is a contract that isn’t legally enforceable, starting from the time it was created. While both a void and voidable contract are null, a void contract cannot be ratified. In a legal senses, a void contract is treated as if it was never created and becomes unenforceable in court.

(9e)
Termination of contract: Termination of a contract means legally ending the contract before both parties have fulfilled their obligations under the terms of the contract. There are a variety of reasons why a party can terminate a contract. When and how the contract is terminated will determine whether either party has any liability for breach of the contract before it was terminated.

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Today’s NECO Commerce questions

Commerce

NECO

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Commerce past questions (2021 Answers)

(1)

(i)Banker to the government

(ii) Insurance and control of currency

(iii) Lender of last resort

(iv) Foreign exchange transaction

(v) Responsible for monetary policy

(vi) Banker’s bank

EXPLANATION:

(i) Banker to the government: Central Bank is an agent and banker to the government. It control public account, receives revenue on behalf of the government and make payment from this account. Central Bank also obtains loan on behalf of the government.

(ii) Insurance and control of currency: The central bank has the right to order the printing of the currency and the issuance of it. It control the circulation of currency, exchange of bad notes for new ones and see to the destruction of the bad notes.

(iii) Lender of last resort: The central bank has a duty to assist the banking system when the banks are in financial difficulties so that they can withstand the strain of excessive demands. In some countries, the banks can borrow directly from the central bank.

(iv) Foreign exchange transaction: The central bank holds the foreign reserve of a country, and this helps in enforcing foreign exchange control regulation. It operates the exchange control which is set up to purchase and sell foreign currencies.

(v) Responsible for monetary policy: The central bank is responsible for the monetary policies of the country. It can use both the expansionist and restrictionist policies to control the quantity and value of money in circulation so as to influence the level of production and distribution of the national income.

(vi) Banker’s bank: The central bank acts as banker to the banks by ensuring that the banks open account with it in order to facilitate clearing of cheques. This helps the commercial banks to have similar facilities to offer to their customers.

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(2a)

Multilateral trade can be defined as a type of international trade in which a country trade with many other countries. It is also a type of trade in which countries exchange goods and services eg Nigeria trade with the USA, Britain and Russia

(2b)

(Choose Any Four)

(i) Differences in climate condition
(ii) Differences in Technology
(iii) Differences in skills
(iv) Uneven distribution of natural resources
(v) Expansion of market for products

EXPLANATION :

(i) Differences in climate condition: The climatic condition of the earth varies from one region to another. This variation gives rise to growth of different crops hence the need for exchange.

(ii) Differences in Technology: The level of technology differs from one nations of the world to another. Some countries with advanced technology can produce some industrial products at reduced cost and sell to the less developed countries.

(iii) Differences in skills: The inhabitants of a region may develop special skills in the production of a commodity such that it acquires special reputation for its skill. This can necessitate foreign trade.

(iv) Uneven distribution of natural resources: Natural resources are unevenly distributed. While some countries are naturally blessed, others have little or no natural. This necessitates international trade.

(v) Expansion of market for products:Foreign trade came into existence because of the need to widen the market for goods produced by a country.

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(3a)
Entrepreneur: An entrepreneur can be defined as the factor of production that co ordinates and organises other factors of production (land, labour and capital) in order to produce goods and services. The entrepreneur bears the risks and take major decision of the business. He risks his capital in setting up the business with the aim of obtaining maximum profit.

(3b)
Production: Production can simply be defined as the creation of utility or creation of goods and services which satisfy human want. All goods and services produced must possess utility, which means that they must be capable of satisfying certain human wants. Production also means the various economic activities aimed at the creation of goods and services and the distribution of these to the final consumers for the satisfaction of human wants.

(3c)
Fixed capital : These are assets which are not used up in the course of production. Fixed assets include those durable assets of a business that can last for a very long time. These assets or capital do not change their form in the process of production. Examples of fixed capital are land, buildings, tools, motor vehicles, plants and machinery

(3d)
Exchange : Exchange is the process of giving out value in order to have something of value in return. In olden days, barter was the main system of exchange ie goods for goods. But nowadays one can exchange money for goods. Exchange arises because of excess production of goods and services. Exchange is often regarded as an outcome of specialisation and production

(3e)
Specialisation : Specialisation is defined as the concentration of the productive efforts of an individual, a firm or a country in a given aspect of economic activity or on a particular line of production in which it has the greatest advantage over others. Specialisation is the performance of a single job or economic activity in which an individual, firm or a country has comparative advantage.

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(5a)
Limited liability company can be define as a form of business organization with the liability-shield advantages of a corporation and the flexibility and tax pass-through advantages of a partnership.It is a separate and distinct legal entity

(5b)
(Choose Any four)

(i) Ownership
(ii) It is a legal entity
(iii) Perpetual existence
(iv) Formation
(v) It has limited liability

EXPLANATION :

(i) Ownership: The number of shareholders range from seven to infinity, ie owners must be at least seven but there is no maximum number

(ii) It has a legal entity : The public limited liability company has a distinct personality from that of the owner. It can sue and be sued in its own name

(iii) Perpetual existence: The death or withdrawal of some shareholders will not affect the existence of the company. It enjoy continuous existence

(iv) Formation : A public limited liability company must follow some special formalities before registration. They secure incorporation by filling the article of association and memorandum of association with the registrar of companies

(v) It has limited liability : The liability shareholders is limited to the amount contributed to the company. The private properties of the shareholders will not be touched in the event of liquidation.

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(6)
(Choose Any Five)

(i)Promotion of Commercial activities
(ii) Enhance settlement of international indebtedness
(iii) Reduction in cost an Risk of traveling
(iv) Facilitates contact between businessmen
(v) Communication enhance international trade
(vi) Enhance Air and sea Transport

EXPLANATION:

(i)Promotion of Commercial activities: Communication promotes commercial activities as the whole world is connected together as a global village.

(ii) Enhance settlement of international:The use of telecommunication has enhanced the settlement of debts through telegraphic money transfers eg Western union money Transfer

(iii) Reduction in cost an Risk of traveling: Through communication the cost and risks involved in travelling long distance for business transactions can be greatly reduced.

(iv) Facilitates contact between businessmen: Communication provide and facilitates good and efficient means of maintaining close contact between businessmen

(v) Communication enhance international trade: Foreign trade transactions an be facilitated through modern means of communication as various markets are linked together

(vi) Enhance Air and sea Transport: Transportation by air and sea are made possible by communication. The use of radio, telegram and other means of communication have made contact between a ship off shore and the port possible

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(7a)
Catalogue : Catalogue is a pictorial presentation of goods and articles available for sale, especially in Mail order business. It is a medium of advertising. It is used to inform the buyers of the details of the goods, as to size, colours, prices and delivery terms. It is also be used as a quotation or reply to enquiry.

(7b)
Order: An order is a statement sent by the buyer to the seller, stating the full description and quantity of goods required. After buyer has gone through Catalogue,he will then place an order. The order will show the goods required, type conditions of payment, purchase and method of delivery

(7c)
Proforma invoice: A proforma invoice is an invoice that is usually submitted before goods are despatched as a polite request for payment to be made in advance when a seller is not willing to sell on credit and to show the goods. If the goods are retained, it become an ordinary invoice. It is also used to serve as a quotation

(7d)
Quotation :Quotation is a statement prepared by a supplier of goods or services for a particular order which shows the current price and terms of trade. Quotation is applicable to a particular transaction only. The supplier will send it to show the price to be charged, terms of payment and period of delivery. It is usually sent as a reply to an enquires

(7e)
Receipts: Receipt is a document which acknowledges that payment has been received from the buyer. When a customer receives the goods and he sends the money to the seller who in return issues the receipt as evidence of the payment. It must be written and signed by the seller and sent to the buyer, stating the actual amount received.

Today’s NECO Commerce OBJ answers

1-10: CCAADCBBED
11-20: DBEAACCCDC
21-30: BDDACDEAAD
31-40: ABEDDACBCB
41-50: DAAEBABBBA
51-60: DCCEBBEEEA

2a)
Multilateral trade can be defined as a type of international trade in which a country trade with many other countries. It is also a type of trade in which countries exchange goods and services eg Nigeria trade with the USA, Britain and Russia

(2b)
(Choose Any Four)

(i) Differences in climate condition
(ii) Differences in Technology
(iii) Differences in skills
(iv) Uneven distribution of natural resources
(v) Expansion of market for products

The answers above are not the 2022 correct answers. They are NECO commerce past questions and answers to help you Practice.

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The questions below are not exactly 2022 NECO Commerce questions and answers but possible NECO Commerce repeated questions and answers.

These questions are strictly for practice. The 2022 NECO Commerce expo will be posted on this page on the day of the NECO Commerce examination. Keep checking and reloading this page for the answers.

NECO Commerce Likely Questions and Answers 2022

1. Income distribution, nature of natural resources, investment etc. forms part of —–business environment.

A. cultural

B. economic

C. political

D. social

E. technological

2. The fee for sending a telegram depends on the

A. number of lines contained by the message

B. number of words contained in the message

C. the security of the message

D. time it would take the message to reach its destination

E. urgency of the message

3. The combination of product, price,

A. consumer orientation

B. marketing concept

C. marketing mix

D. marker research

E. product mix

4. Use the following information to answer question

Kolawole’s Opening Stock was N10, 000. His purchases was N280,000 Goods returned outward was N3,000, and the Closing Stock was N8,000
Kolawole’s average stock is?

A. N9,000.00

B. N10, 000.00

C. N279,000.00

D. N280,000.00

E. N290,000.00

5. When the supplier changes a retailer for not returning empty packages, the supplier sends him a/an

A. advice note

B. consignment note

C. credit note

D. debit note

E. statement

6. Which of the following is NOT a function of Commerce?

A. Assisting Companies in raise capital

B. Assisting in transporting men and materials to production points

C. Extracting goods for further production and processing

D. Storing goods until they are needed

E. Offering employment opportunities to a large number of people

7. In which order are the following documents used?

I. Enquiry
II. Delivery note
III. Order
IV. Invoice
V. Quotation

A. I, II, III, IV and V

B. I, V, III, IV and II

C. II, I, IV, III and V

D. III, II, V, I and IV

E. V, IV, I, III and II

8. The price of an item is N 300 with a trade discount of 20%, What is the selling price?

A. N180

B. N240

C. N300

D. N360

E. no option

9. A hire purchase transaction becomes a sale when the hirer

A. pays full cost of the goods

B. agrees with the hire purchase terms

C. takes possession of the goods

D. pays part of the instalments

10. An electronic system of communication which serves as the international information bank is called

A. an e-mail

B. a satellite

C. a telex

D. the Internet

11. Shares, stocks, government bonds trade in the stock exchange marks: are known as

A. debentures

B. gut-edged stocks

C. merchandises

D. securities

E. treasure bills

12. The practice of selling some goods below market price to attract more customers is known as

A. hoarding

B. loss leader

C. market sharing

D. profiteering

E. speculating

13. Shares that are fully paid can be converted into bulks known as

A. bonds

B. capital reserves

C. debentures

D. guilt-edged securities

E. stocks

14. Telecommunication services are provided by

A. Bureau De Change

B. Courier Services

C. Date Post

D. NIPOST

E. NITEL

15. Use the following information to answer question

Kolawole’s Opening Stock was N10, 000. His purchases was N280,000 Goods returned outward was N3,000, and the Closing Stock was N8,000
Cost of goods sold is

A. N180,000.00

B. N227,000.00

C. N279,000.00

D. N290,000.00

E. N301,000.00

16. The process of passing information from one person to another in an organization is known as

A. communication

B. co-ordination

C. delegation

D. direction

E. Motivation

17. A financial document stating the reasons for making a payment and details of the payment is

A. bank draft

B. cash book

C. cheque

D. payslip

E. voucher

18.Another name for a foreign order is

A. catalogue

B. export

C. import

D. indent

E. quotation

19. Public debt management is one of the functions of a ______________ bank

A. central

B. commercial

C. development

D. industrial

E. merchant

20. Which of the following regards the consumer as king?

A. consumer behavior

B. marketing concept

C. market mix

D. pricing policy

E. product mix

21. The most suitable mode of transporting very bulky goods from Lagos to Kaduna is the

A. aeroplane

B. caravan

C. lorry

D. ship

E. train

22. Adeleke places his vehicle for sale at N150,000,00 Ibrahim had agreed to pay the amount. In this Trans: Adeleke is the

A. agent

B. auctioneer

C. broker

D. offeree

E. offeror

23. The following are methods of quoting prices EXCEPT

A. A.C.I.F

B. F.A.S

C. F.O.B

D. L.O.C.O

E. E.O.E

24. The amount receivable by shareholders after the declaration of profit is called

A. bonus

B. commission

C. dividend

D. interest

E. premium

25. Which of the following is an invisible item of trade?

A. Banking Service

B. Petroleum Product

C. Processed Rice

D. Processed Milk

E. Processed Yam Flour.

NECO Commerce Questions and Answers 2020 Loading…

How to pass NECO Commerce Examination 2022

Be Determined to Pass

The NECO 2022 Commerce exam is designed for students who are certain they will pass with a decent mark.

Any candidate who has not made up his or her mind to get an outstanding grade in the upcoming NECO 2022 Commerce examination is not prepared to pass.

Stay positive and study your books instead of following your lazy pals who believe in a miracle on exam day.

Be self-confident

Another component that influences a candidate’s performance is self-confidence. Promise yourself that you will do everything by yourself, and everything will be extremely simple for you.

Because of a lack of self-confidence, many pupils cancel the correct answers in order to replicate the incorrect ones. You are the miracle of the day if you study and pray diligently.

Start to Study on time

As a student, studying is really crucial. As far as studies are concerned, NECO is a pretty basic Exam to deal with. It’s one thing to study, but it’s quite another to study on time.

Do not wait until the NECO 2022 Commerce tests are approaching to begin studying. You will not benefit from late preparation. You will have time to revise before the tests if you begin studying early.

Make use of the 2022 NECO commerce Syllabus

Using the NECO 2022 syllabus is very essential as it will guide you on major topics to cover. Studying without the Syllabus will make you focus on unnecessary topics that will not appear in the exams.

Also, most of the Commerce topics you have not done in class are there in the NECO syllabus.

For more information, drop a comment below.

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