2024 NABTEB GCE COMMERCE: NABTEB GCE Commerce (Coms) 2025 Legit Answers (8557)

(1a)

A retailer is a business or individual that sells goods or services directly to consumers for personal, family, or household use. They are the last link in the supply chain, connecting manufacturers or wholesalers to the end-users.

(1b)

(PICK ANY FIVE)

(i) Direct Interaction with Consumers: Retailers sell products or services directly to the end users.

(ii) Wide Product Variety: Retail stores often stock a diverse range of goods to cater to different customer preferences.

(iii) Small Quantities: Goods are sold in smaller units or quantities compared to wholesale trade.

(iv) Customer Service: Retail trade emphasizes customer satisfaction through personalized service, support, and assistance.

(v) Location Proximity: Retail outlets are often located close to the target market, such as in malls, shopping streets, or online platforms.

(vi) Price Markup: Retail prices include a markup over the wholesale price to cover costs and generate profit.

(vii) Impulsive Buying: Retail environments often encourage impulsive buying through strategic product placement and promotional displays.

(viii) Use of Technology: Modern retail trade relies heavily on technology, such as Point-of-Sale (POS) systems, e-commerce platforms, and inventory management tools.

(ix) Marketing and Promotions: Retailers invest in advertisements, sales promotions, and discounts to attract and retain customers.

(x) Customer 'copied from e x a m p l a z a . c o m free' Relationship Management: Retailers focus on building strong relationships with customers to encourage repeat business.

(1c)

(PICK ANY TWO)

(i) Buying and Assembling: Retailers purchase goods from manufacturers or wholesalers and assemble them in their stores.

(ii) Storage and Warehousing: Retailers store the goods in their warehouses until they are sold.

(iii) Promotion and Sales: Retailers promote the goods through various advertising methods and sell them to customers.

(iv) Customer Service: Retailers provide after-sales services, handle customer complaints, and offer advice and g

uidance to customers.

(2a)

Hawking is the act of selling goods by moving from place to place or along streets to reach customers directly.

(2b)

(PICK ANY FOUR)

(i) Involves mobility and flexibility.

(ii) Goods are displayed on trays, baskets, or carts.

(iii) Direct interaction with customers.

(iv) Low operational costs

(v) It requires minimal capital to start.

(vi) Hawkers often target high-traffic areas such as markets, streets, or public gatherings.

(vii) It involves selling a wide range of goods, including perishable and non-perishable items.

(2c)

(PICK ANY FOUR)

(i) Low Operating Costs: Hawking requires little to no initial investment or overhead costs.

(ii) Direct Customer Interaction: Hawking allows for face-to-face interaction with customers, enabling vendors to build relationships and gather feedback.

(iii) Flexibility: Hawking can be done at various locations and times, allowing vendors to adapt to changing market conditions.

(iv) Quick Sales: Hawking enables vendors to make quick sales, as customers can immediately purchase goods.

(v) Wide Market Coverage: Hawking allows vendors to cover a wide geographic area, reaching customers in different locations.

(vi) No Rental or Storage Costs: Hawking eliminates the need for rental or storage space, reducing costs for vendors.

(3a)

After-sales service refers to the support provided by businesses to customers after they have purchased a product or service, such as repairs, maintenance, or warranties.

(3b)

(PICK ANY FIVE)

(i) Customer Satisfaction: After-sale service ensures that customers are happy with their purchase. It helps resolve any issues they might face and builds trust in the company.

(ii) Building Loyalty: When customers receive good after-sale service, they are more likely to remain loyal to the brand and make future purchases.

(iii) Improving Product Quality: Feedback from customers through after-sale services helps companies identify problems in their products and make improvements.

(iv) Competitive Advantage: Providing excellent after-sale service can set a company apart from its competitors, attracting more customers.

(v) Encouraging Repeat Purchases: Satisfied customers are more likely to buy from the same company again and even recommend it to others.

(vi) Handling Complaints: After-sale service provides a system to address customer complaints and resolve them, preventing negative reviews and maintaining the company’s reputation.

(vii) Compliance with Warranty Agreements: Many products come with warranties, and after-sale service ensures that the company fulfills its promises, such as repairs or replacements within the warranty 'copied from e x a m p l a z a . c o m free' period.

(3c)

In Self-service, customers independently select and purchase products without the assistance of sales staff.

WHILE in After-sales service, support provided after a product is sold to ensure customer satisfaction.

(4a)

A wholesaler is an intermediary who buys goods in large quantities from manufacturers or producers and sells them to retailers, other wholesalers, or industrial users, typically in smaller quantities.

(4b)

(PICK ANY SIX)

(i) A wholesaler buys and sells goods in large quantities, while a retailer buys and sells goods in smaller quantities.

(ii) Wholesalers sell to retailers, industrial users, and other wholesalers, while retailers sell directly to end-consumers.

(iii) Wholesalers deal in large quantities of goods, while retailers deal in smaller quantities.

(iv) Wholesalers sell goods at lower prices compared to retailers, as they buy in bulk.

(v) Wholesalers require large storage spaces and warehouses to store goods, while retailers require smaller storage spaces.

(vi) Wholesalers focus on business-to-business marketing, while retailers focus on business-to-consumer marketing.

(vii) Wholesalers typically have in-depth knowledge of the products they sell, while retailers may have more general knowledge.

(viii) Wholesalers typically engage in formal sales transactions, while retailers engage in informal sales transactions.

(5a)

International trade refers to the exchange of goods and services between countries across national borders. It involves the import and export of products, services, and ideas between different countries, with the goal of generating revenue, promoting economic growth, and satisfying the needs and wants of consumers worldwide.

(5b)

(PICK ANY FOUR)

(i) Access to Resources: Some countries lack certain natural resources or raw materials, such as oil, gold, or agricultural products. International trade allows them to acquire these resources from other countries.

(ii) Diverse Goods and Services: Through trade, countries can enjoy products and services they cannot produce, such as tropical fruits in cold regions or advanced technology from developed nations.

(iii) Economic Growth: International trade boosts a country’s economy by creating jobs, increasing production, and generating revenue from exports.

(iv) Comparative Advantage: Countries trade because they can produce certain goods more efficiently than others. For example, one country may focus on producing cars while another specializes in agriculture.

(v) Improved Relations: Trade strengthens political and economic relationships between countries, promoting peace and mutual cooperation.

(vi) Access to New Markets: By trading internationally, businesses can expand their reach, sell their products to 'copied from e x a m p l a z a . c o m free' more people, and increase profits.

(5c)

(PICK ANY TWO)

(i) Both involve buying and selling of goods and services.

(ii) Both require transportation and logistics to move goods from one place to another.

(iii) Both involve the use of money as a medium of exchange.

(iv) Both are motivated by the desire to earn profit and satisfy consumer needs.

(6)
(PICK ONE ANSWER EACH)

(i) Export:
Export refers to the process of selling goods or services produced in one country to buyers in another country. Exports contribute to a country’s economy by generating revenue and promoting international trade.

OR

Export is the selling of goods and services produced within a country to other countries. It helps to generate foreign exchange, promote economic growth, and strengthen international trade relations.

(ii) Import
Import involves: purchasing goods or services from foreign countries for domestic use. Imports allow countries to access products they do not produce locally or that are more affordable from abroad.

OR

Import refers to the purchase of goods and services from other countries to satisfy domestic needs. It allows access to products not locally available or cheaper from abroad and contributes to a country’s 'copied from e x a m p l a z a . c o m free' trade balance

(iii) Balance of Trade:
The balance of trade is the difference between the value of a country’s exports and imports of goods over a specific period. A positive balance indicates a trade surplus, while a negative balance indicates a trade deficit.

OR

The balance of trade measures the gap between the monetary value of a nation’s exports and imports of goods over a specific period. A surplus occurs when exports exceed imports, while a deficit arises when imports surpass exports.

(iv) Balance of Payment (BOP):
The balance of payment is a comprehensive record of all economic transactions between a country and the rest of the world over a period. It includes the trade balance, capital flows, and financial transfers, ensuring all transactions balance out.

OR

The balance of payment is a detailed account of all financial transactions between a country and other nations. It includes trade in goods and services, capital flows, and financial 'copied from e x a m p l a z a . c o m free' transfers, showing a nation’s economic dealings with the rest of the world

(v) Export Drive:
An export drive refers to a country’s strategic efforts to boost exports, often through policies like subsidies, trade agreements, or incentives to increase competitiveness in the global market.

OR

An export drive is a deliberate effort by a country to promote the production and sale of goods for export. This strategy may involve government incentives, trade agreements, and policies aimed at increasing the competitiveness of domestic products in international markets.

(7a)
(PICK ANY ONE)
A sole proprietor is a single person who owns and operates a business, taking full responsibility for its activities and outcomes.

OR

A sole proprietor is the sole owner of a business, managing it independently and bearing all profits and risks.

(7b)
(PICK ANY FIVE)

(i) Full Ownership: The sole proprietor owns the entire business and is entitled to all profits generated. This ownership extends to assets and liabilities.

(ii) Unlimited Liability: They are personally responsible for all business debts and obligations. If the business incurs losses, the owner’s personal assets may be at risk.

(iii) Simplified Decision-Making: As the sole decision-maker, the proprietor has complete control over business operations, strategies, and management without consulting others.

(iv) 'copied from e x a m p l a z a . c o m free' Ease of Formation: Setting up a sole proprietorship is relatively straightforward, requiring minimal legal formalities and low startup costs.

(v) Limited Capital: The business capital typically comes from the proprietor’s personal funds or loans, which can restrict the scale of the business.

(vi) Direct Customer Interaction: Sole proprietors often build personal relationships with customers, creating trust and loyalty that can enhance the business’s reputation.

(vii) Taxation Benefits: Sole proprietorships are usually taxed as part of the owner’s personal income, avoiding corporate taxes. This simplifies tax obligations compared to larger business structures.

(7c)
(PICK ANY TWO)
(i) Ease of formation
(ii) Full control
(iii) Retention of profits
(iv) Direct tax benefits
(v) Confidentiality

(8a)

(PICK ANY FIVE)

(i) Nature of the Business

(ii) Capital Requirement

(iii) Risk and Liability

(iv) Number of Owners

(v) Legal Formalities

(vi) Profit-Sharing Arrangements

(vii) Management and Control

(8b)

(PICK ANY FIVE)

(i) Ownership: Partnership company is owned by two or more individuals who share profits and responsibilities. Public Company is owned by shareholders who purchase stocks, and ownership can be widely distributed.

(ii) Formation Partnership is formed through a partnership agreement between individuals without formal registration with government authorities. Public Company is formed by registering with regulatory bodies (e.g., the Corporate Affairs Commission) and issuing shares to the public.

(iii) Liability: In Partnership company, partners have unlimited liability, meaning they are personally liable for business debts. In Public Company, Shareholders have limited liability, meaning they are only liable for the amount they invested in shares.

(iv) Management: Partnership company is managed by the partners, who are actively involved in decision-making and operations. Public Company is managed by a board of directors, who are elected by shareholders. Day-to-day operations are handled by professional managers.

(v) Capital: In Partnership, Capital is raised through the contributions of the partners and is 'copied from e x a m p l a z a . c o m free' generally limited. In Public Company, Capital is raised by issuing shares to the public, and it has access to large amounts of capital.

(vi) Continuity: In Partnership, The business may be dissolved if a partner leaves or dies, as it depends on the agreement between the partners. In Public Company, the business has perpetual existence and can continue regardless of changes in ownership or management.

(vii) Taxation: In Partnership, Partners are taxed individually on their share of the profits, and the partnership itself is not taxed. In Public Company, the company is taxed separately from its shareholders, and shareholders are taxed on dividends received.

(9a)

(PICK ANY ONE)

A cheque is a written document that orders a bank to pay a specified sum of money from the account holder’s account to the person or organization named on the cheque.

OR

A cheque is a formal written order directing a bank to pay a specific amount of money from the drawer’s account to the person or entity named as the payee, either on demand or within a specified period.

(9b)

(PICK ANY THREE)

(i) Bearer Cheque

(ii) Order Cheque

(iii) Crossed Cheque

(iv) Open Cheque

(v) Post-dated Cheque

(9c)

(PICK ANY THREE)

(i) Insufficient funds in the account.

(ii) Signature mismatch.

(iii) Account closed or frozen.

(iv) Post-dated cheque presented before the due date.

(v) Alterations or discrepancies on the cheque.

(9d)

(i) Drawer

(ii) Drawee

(iii) Payee

(10a)
(PICK ANY SIX)
(i) Nature of the goods or services.
(ii) Value of the transaction.
(iii) Distance between buyer and seller.
(iv) Urgency of the transaction.
(v) Level of trust between parties.
(vi) Availability of payment facilities.
(vii) Legal and regulatory requirements.

(10b)
(PICK ANY FIVE)
(i) Postal Order
(ii) Money Order
(iii) Postal Draft
(iv) Telegraphic Money Transfer
(v) Parcel Post Cash on Delivery (COD)
(vi) Postal Savings Bank Withdrawal
(vii) Registered Mail with Payment Enclosure

(10c)
(PICK ANY FOUR)
(i) Cash payments
(ii) Cheques
(iii) Bank drafts
(iv) Direct debits
(vi) Electronic payment systems