WAEC 2025/2026 Commerce Obj & Theory Answers

COMMERCE OBJ!!!

01-10: CACCACCACB

11-20: DABDBACDAC

21-30: DACCCCCADA

31-40: ACDCDADBCC

41-50: BBBCDBCDDC

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(1a)

Manufacturing is the process of producing goods in factories using machines and labor, usually in a controlled, repetitive, and standardized environment.

*WHILE*

Construction is the process of building structures on-site, often involving unique designs and adapting to site-specific conditions.

(1b)

(PICK FOUR ONLY)

(i) Global Reach: E-commerce allows businesses to reach customers worldwide, breaking geographical barriers.

(ii) 24/7 Availability: Online stores operate around the clock, offering convenience to customers at any time.

(iii) Cost Reduction: Lower operating costs compared to physical stores due to reduced need for rent, utilities, and in-store staff.

(iv) Faster Transactions: Purchases and payments can be completed quickly online, improving customer satisfaction.

(v) Personalized Marketing: Businesses can use customer data to offer personalized recommendations and promotions.

(vi) Broader Product Range: Online platforms can display more products than physical stores, without space limitations.

(vii) Improved Inventory Management: Automation tools in e-commerce help manage inventory more efficiently.

(viii) Easy Access to Customer Feedback: Reviews and ratings provide valuable insights to improve products and services.

(1c)

(PICK FOUR ONLY)

(i) Exchange of Goods and Services: Facilitates buying and selling activities between producers and consumers.

(ii) Transportation: Ensures the movement of goods from producers to markets and consumers.

(iii) Warehousing: Provides storage facilities to preserve goods until they are needed for sale.

(iv) Banking: Offers financial services such as credit, loans, and payment systems to support trade.

(v) Insurance: Protects businesses against risks like theft, damage, or loss of goods.

(vi) Advertising: Promotes products and services to inform and attract customers.

(vii) Communication: Enables quick and efficient exchange of information in business transactions.

(viii) Financing: Provides capital needed for production, transportation, and marketing of goods.

(1a)

Manufacturing: Manufacturing involves the production of goods on a large scale using machines and labor. It typically involves transforming raw materials into finished products, such as electronics, textiles, or food products. WHILE Construction: Construction involves the creation of buildings, infrastructure, or other physical structures. It typically involves on-site labor and materials to build or repair structures, such as roads, bridges, or buildings.

(1b)

(i)Increased reach: E-commerce allows businesses to reach a global audience and expand their customer base.

(ii)Convenience: E-commerce provides customers with the convenience of shopping online 24/7, from anywhere with an internet connection.

(iii)Lower costs: E-commerce can reduce costs associated with traditional brick-and-mortar stores, such as rent and inventory costs.

(iv)Increased efficiency: E-commerce can streamline business processes, such as order processing and inventory management, making it more efficient.

(1c)

(i)Facilitating exchange: Commerce facilitates the exchange of goods and services between buyers and sellers.

(ii)Providing employment: Commerce provides employment opportunities in various industries, such as retail, manufacturing, and logistics.

(iii)Generating revenue: Commerce generates revenue for businesses, governments, and individuals through sales, taxes, and other means.

(iv)Promoting economic growth: Commerce promotes economic growth by stimulating innovation, investment, and trade.

(2ai)

A cartel is an agreement between competing firms to control prices or limit production, while a consortium is a group of independent companies that collaborate on a specific project or venture without restricting competition.

(2aii)

A holding company is a firm that owns a controlling interest in one or more other companies, while a subsidiary company is a company that is controlled and partly or wholly owned by the holding company.

(2bi)

(PICK FOUR ONLY)

(i) Personal savings

(ii) Bank loans

(iii) Trade credit

(iv) Retained earnings

(v) Government grants

(vi) Hire purchase

(vii) Leasing

(viii) Venture capital

(2bii)

(PICK FOUR ONLY)

(i) Loss of control: Saul may be reluctant to merge due to the fear of losing full control over his business decisions.

(ii) Unequal profit sharing: Saul might be concerned that the profit-sharing arrangement in the partnership could be unequal or unfavorable to him.

(iii) Risk of conflicts: Saul could fear that differences in management styles or disagreements with Abu may lead to conflicts in the partnership.

(iv) Financial uncertainty: The merger may introduce financial risks, and Saul might be uncertain about the financial stability of the new partnership.

(v) Liability concerns: Saul may be worried about the joint liability in a partnership, where he could be held personally responsible for debts or legal issues.

(vi) Change in business culture: Saul might be concerned that merging with Abu could disrupt the established culture of his business.

(vii) Loss of independence: As a sole proprietor, Saul is used to making decisions on his own and may be reluctant to share decision-making authority in a partnership.

(viii) Legal and administrative complexities: Saul could be hesitant due to the legal paperwork, tax implications, and administrative changes that would come with forming a partnership.

(2ai)

Cartel: A cartel is an agreement between competing businesses to control prices, limit production, or divide markets. Cartels are often considered anti-competitive and may be illegal. WHILE Consortium: A consortium is a collaborative agreement between two or more businesses to work together on a specific project or venture. Consortia are often formed to share resources, expertise, or risk.

(2aii)

Holding company: A holding company is a parent company that owns and controls one or more subsidiary companies. The holding company typically has a controlling interest in the subsidiary. WHILE Subsidiary company: A subsidiary company is a company that is owned and controlled by a parent company or holding company. The subsidiary operates as a separate entity but is ultimately controlled by the parent company.

(2bi)

(i)Partner’s capital: The partners can contribute capital to the partnership.

(ii)Bank loans: The partnership can obtain loans from banks or other financial institutions.

(iii)Retained earnings: The partnership can retain earnings from profits to finance future growth.

(iv)Private investors: The partnership can attract private investors who can provide capital in exchange for a share of the business.

(2bii)

(i)Loss of control: Saul may be reluctant to give up control of his business and decision-making authority.

(ii)Different business cultures: The two businesses may have different cultures, values, or management styles that may not be compatible.

(iii)Liability concerns: Saul may be concerned about taking on liability for Abu’s business debts or obligations.

(iv)Different goals or objectives: The two businesses may have different goals or objectives that may not align with each other.

(3a)

Trade Promotion Council

(3b)

(PICK FOUR ONLY)

(i) Market Research: Conducts research to identify potential international markets for local products.

(ii) Export Promotion: Organizes campaigns and trade fairs to promote local products abroad.

(iii) Advisory Services: Offers guidance and support to local businesses on export procedures and market entry strategies.

(iv) Training and Capacity Building: Provides training programs for exporters to enhance their knowledge and skills in international trade.

(v) Product Development Support: Assists in improving product quality and packaging to meet international standards.

(vi) Trade Negotiations: Engages in trade negotiations to secure favorable terms for local exporters.

(vii) Market Linkages: Connects local producers with foreign buyers and distributors.

(viii) Policy Advocacy: Advises the government on policies that support export growth and competitiveness.

(3c)

(PICK FIVE ONLY)

(i) Access to wider markets: To sell local products to a larger international customer base.

(ii) Earning foreign exchange: To generate revenue in foreign currencies, which strengthens the national economy.

(iii) Access to resources: To obtain raw materials and goods not available locally.

(iv) Promotion of specialization: To focus on producing goods in which the country has a comparative advantage.

(v) Job creation: To create employment opportunities in export-oriented industries.

(vi) Improved standards of living: To provide citizens with access to a wider variety of goods and services.

(vii) Technology transfer: To benefit from advanced technologies and innovations from trading partners.

(viii) Strengthening international relations: To build diplomatic and economic ties with other countries.

(4a)

(PICK ANY FIVE)

(i) Personalized customer service: They offer closer customer relationships and tailored service.

(ii) Flexible operations: Small retailers can quickly adapt to market changes.

(iii) Low overhead costs: They often operate with minimal expenses.

(iv) Strategic location: Many are located close to residential areas for convenience.

(v) Niche markets: They serve specific customer needs that large retailers may overlook.

(vi) Quick decision-making: Owners can make decisions without bureaucracy.

(vii) Strong community ties: They often enjoy local loyalty and support.

(4b)

(PICK ANY FIVE)

(i) Promoting exports: Encouraging the production and sale of goods abroad.

(ii) Import substitution: Reducing reliance on imported goods by producing them locally.

(iii) Currency devaluation: Lowering the value of the national currency to make exports cheaper.

(iv) Attracting foreign investment: Bringing in capital to boost economic activity.

(v) Tourism development: Increasing foreign exchange earnings through tourism.

(vi) Restricting imports: Using tariffs or quotas to reduce non-essential imports.

(vii) Securing foreign aid or loans: Temporarily covering deficits while corrective measures take effect.

(5a)

Seasonal discounts

(5b)

(PICK ANY FOUR)

(i) To encourage purchases during periods of low demand.

(ii) To maintain steady production and reduce idle time.

(iii) To clear out old stock or inventory before the next season.

(iv) To improve cash flow during slow business periods.

(v) To attract new customers and retain existing ones.

(vi) To stay competitive in the market and gain market share.

(5c)

(PICK ANY FIVE)

(i) To collect import and export duties and taxes.

(ii) To enforce laws regulating the import and export of goods.

(iii) To prevent the entry of prohibited and dangerous goods.

(iv) To facilitate legitimate international trade.

(v) To compile trade statistics and monitor trade trends.

(vi) To protect local industries by implementing tariffs and trade policies.

(5a)

The type of discount Felisco Ltd. could offer is a seasonal discount. This type of discount is offered during periods of low demand to stimulate sales and encourage customers to purchase products.

(5b)

(i)Increase sales volume: By offering a discount, the company can attract more customers and increase sales volume during a period of low demand.

(ii)Clear inventory: The company can clear out inventory that may be taking up storage space and reduce the risk of products becoming obsolete.

(iii)Build customer loyalty: Offering discounts can help build customer loyalty and encourage repeat business.

(iv)Maintain production levels: By stimulating sales during a period of low demand, the company can maintain production levels and avoid layoffs or reduced production capacity.

(5c)

(i)Collecting duties and taxes: Customs authorities collect duties and taxes on imported goods.

(ii)Enforcing trade regulations: Customs authorities enforce trade regulations, such as quotas and embargoes.

(iii)Inspecting cargo: Customs authorities inspect cargo to ensure compliance with regulations and to detect contraband.

(iv)Facilitating trade: Customs authorities facilitate trade by providing clear guidelines and procedures for importing and exporting goods.

(v)Protecting national security: Customs authorities play a role in protecting national security by detecting and preventing the importation of prohibited goods.

(6a)

(PICK ANY FIVE)

(i) Commercial banks

(ii) Central bank

(iii) Development banks

(iv) Merchant banks

(v) Mortgage banks

(vi) Microfinance banks

(vii) Agricultural banks

(6b)

(PICK ANY FIVE)

(i) Reserve Requirement Ratio: The central bank mandates the percentage of total deposits that commercial banks must keep as reserves. This controls how much money banks can lend, thus influencing liquidity.

(ii) Open Market Operations (OMO): The central bank buys or sells government securities in the open market to control the money supply. Selling securities reduces liquidity, while buying increases it.

(iii) Interest Rate Policy (Bank Rate): By raising or lowering the rate at which commercial banks borrow from it, the central bank influences the interest rates charged by commercial banks to their customers.

(iv) Licensing and Supervision: The central bank grants licenses to banks and supervises their operations to ensure compliance with regulations and financial soundness.

(v) Credit Control: The central bank can impose limits on the amount of credit banks can extend or set guidelines on lending priorities to sectors of the economy.

(vi) Moral Suasion: The central bank uses persuasion and appeals to influence banks’ behaviors, such as urging them to reduce lending or improve financial practices, without enforcing formal regulations.

(6a)

(i)Commercial banks

(ii)Investment banks

(iii)Central banks

(iv)Merchant banks

(v)Savings banks

(6b)

(i)Reserve requirements: The central bank can require commercial banks to maintain a certain percentage of their deposits in reserve.

(ii)Interest rates: The central bank can influence interest rates to control borrowing and lending activities.

(iii)Capital requirements: The central bank can require commercial banks to maintain a certain level of capital to absorb potential losses.

(iv)Supervision and inspection: The central bank can supervise and inspect commercial banks to ensure compliance with regulations.

(v)Liquidity requirements: The central bank can require commercial banks to maintain a certain level of liquidity to meet their short-term obligations.

(7a)

Marketing is the process of identifying, anticipating, and satisfying customer needs and wants profitably.

(7b)

(PICK ANY THREE)

(i) Market research: Gathering and analyzing information about consumers and market trends.

(ii) Product development: Creating products that meet customer needs.

(iii) Promotion: Communicating product benefits to customers to encourage purchase.

(iv) Pricing: Setting competitive prices that reflect value and market conditions.

(v) Distribution: Delivering products to customers through appropriate channels.

(vi) Customer relationship management: Building and maintaining strong relationships with customers.

(7ci)

Customer service: Customer service refers to the assistance and advice provided by a company to those who buy or use its products or services. It includes answering inquiries, handling complaints, and ensuring customer satisfaction.

(7cii)

Sales promotion: Sales promotion involves short-term incentives used to encourage the purchase or sale of a product or service, such as discounts, coupons, contests, and buy-one-get-one-free offers.

(7ciii)

Exhibition: An exhibition is a public display where businesses showcase their products or services to potential buyers, partners, or the general public, often used as a marketing tool to attract attention and increase brand awareness.

(7civ)

After-sales service: After-sales service is the support provided to customers after they have purchased a product, including installation, training, maintenance, repairs, and warranty services. It helps ensure customer satisfaction and repeat business.

(7a)

Marketing is the process of promoting and selling products or services to meet the needs and wants of customers.

(7b)

(i)Product development: Marketing involves developing products that meet the needs and wants of customers.

(ii)Promotion: Marketing involves promoting products through various channels, such as advertising and sales promotions.

(iii)Distribution: Marketing involves ensuring that products area distributed to customers through various channels.

(7c)

(i) Customer service; Customer service refers to the support and assistance provided to customers before, during, and after a purchase.

(ii) Sales promotion; Sales promotion refers to activities designed to stimulate sales, such as discounts, contests, and free samples.

(iii) Exhibition; An exhibition is an event where companies display their products or services to potential customers.

(iv) After-sales service; After-sales service refers to the support and assistance provided to customers after a purchase, such as maintenance, repair, and troubleshooting.

(8)

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