2024 NECO GCE COMMERCE: NECO GCE Commerce (Coms) Verified Ans. (5419)

(1)

(PICK ANY FIVE)

(i) Separate Legal Entity: A Private Limited Liability Company (PLLC) is a separate legal entity from its owners (shareholders). This means the company can own assets, incur liabilities, and enter into contracts in its own name. The company's existence is distinct from that of its shareholders, and it can sue or be sued in its own name.

(ii) Limited Liability: The liability of the shareholders is limited to the amount of share capital they have contributed. This means their personal assets are protected in case the company incurs debts or liabilities. Shareholders cannot be held personally liable for the company's debts, and their personal assets cannot be seized to pay off the company's debts.

(iii) Private Ownership: A Private Limited Liability Company is privately owned, meaning its shares are not publicly traded. The ownership is restricted to a limited number of shareholders, usually family members, friends, or business associates. This allows for more control and flexibility in decision-making, as well as confidentiality in business operations.

(iv) Perpetual Existence: A Private Limited Liability Company has perpetual existence, meaning it continues to exist even if the shareholders change or die. The company can only be dissolved through a formal process, such as winding up or liquidation. This provides stability and continuity for the business, even in the face of changes 'copied from e x a m p l a z a . c o m free' in ownership or management.

(v) Restriction on Transfer of Shares: The transfer of shares in a Private Limited Liability Company is restricted. Shareholders can only transfer their shares with the consent of other shareholders or as specified in the company's articles of association. This helps maintain control and stability within the company, as well as ensures that new shareholders are aligned with the company's goals and values.

(vi) Minimum and Maximum Number of Shareholders: A Private Limited Liability Company typically requires a minimum of 2 shareholders and a maximum of 50 shareholders. However, this may vary depending on the jurisdiction. This allows for a small, closely-knit group of shareholders to maintain control and decision-making power within the company.

(vii) Board of Directors: A Private Limited Liability Company is managed by a board of directors, which is responsible for making strategic decisions and overseeing the company's operations. The board of directors provides leadership and guidance to the company, ensuring that it operates efficiently and effectively.

(viii) Taxation: A Private Limited Liability Company is taxed as a separate entity from its shareholders. The company pays corporate tax on its profits, and the shareholders pay tax on the dividends they receive. This allows the company to benefit from tax deductions and credits, while also providing shareholders with a 'copied from e x a m p l a z a . c o m free' tax-efficient way to receive dividends.

(2a)

(PICK ANY FOUR)

(i) Increased economic growth: International trade allows countries to specialize in producing goods and services in which they have a comparative advantage, leading to increased productivity and economic growth. This, in turn, can improve living standards and reduce poverty.

(ii) Improved efficiency: International trade promotes competition, which leads to improved efficiency and innovation in production processes. Companies must adapt to changing market conditions, driving innovation and productivity gains.

(iii) Wider choice of goods and services: International trade provides consumers with a wider choice of goods and services, which can improve their standard of living. Consumers gain access to diverse products, enhancing their quality of life.

(iv) Lower prices: International trade can lead to lower prices for goods and services, as countries can import goods at lower prices than they could produce them domestically. This benefits consumers and stimulates economic growth.

(v) Increased foreign exchange earnings: International trade allows countries to earn foreign exchange, which can be used to import goods and services that are not produced domestically. Foreign exchange earnings also enable countries to service international debt.

(vi) Job creation: International trade can lead to the creation of new jobs, both in the export and import 'copied from e x a m p l a z a . c o m free' sectors. Jobs are generated in industries supporting international trade, such as logistics, transportation and marketing.

(2b)

(PICK ANY FOUR)

(i) Comparative advantage: Countries engage in international trade to take advantage of their comparative advantage in producing certain goods and services. This allows them to specialize in areas where they have a lower opportunity cost, increasing efficiency.

(ii) To meet domestic demand: Countries engage in international trade to meet domestic demand for goods and services that are not produced domestically. Importing goods fills gaps in the domestic market, enhancing consumer welfare.

(iii) To Increase economic growth: International trade can lead to increased economic growth, as countries can specialize in producing goods and services in which they have a comparative advantage. Economic growth stimulates investment, innovation and job creation.

(iv) To reduce dependence on domestic resources: Countries engage in international trade to reduce their dependence on domestic resources and to gain access to resources that are not available domestically. This ensures a more stable and diversified supply chain.

(v) To improve product quality: International trade can lead to improved product quality, as countries can import goods and services that are of higher quality than those produced domestically. Higher-quality products enhance consumer 'copied from e x a m p l a z a . c o m free' satisfaction and drive economic growth.

(vi) To increase foreign exchange earnings: Countries engage in international trade to earn foreign exchange, which can be used to import goods and services that are not produced domestically. Foreign exchange earnings also enable countries to service international debt and invest in development projects.

(3)

(i) Invoice: An invoice is a commercial document issued by a seller to a buyer, detailing goods or services sold, quantities and prices. It serves as a request for payment and a record of the transaction, facilitating financial management and accounting. Invoices typically include seller and buyer information, date, payment terms and other relevant details.

(ii) Indent: An indent is a document used to place an order for goods or services, including descriptions, quantities, prices and delivery terms. It's used for domestic and international trade transactions, enabling suppliers to fulfill orders efficiently. Indents help manage inventory, track orders and ensure timely delivery.

(iii) Freight Note: A freight note details shipping arrangements, including goods description, weight, volume, shipping route and expected delivery date. It tracks goods movement and serves as a shipping record, ensuring accountability and transparency. Freight notes also facilitate customs clearance and insurance purposes.

(iv) Bill of Entry: A bill of entry declares imported goods, including descriptions, quantities, values and countries of origin. It determines customs duties and taxes, enabling authorities to assess importation correctly. Bill of entry processing ensures compliance with trade regulations and facilitates smooth importation.

(v) Price List: A price list lists goods or services prices, 'copied from e x a m p l a z a . c o m free' including descriptions, quantities and discounts. It serves as a reference for buyers to determine prices, streamlining purchasing decisions. Price lists also help suppliers manage pricing strategies, promotions and market competition.

*NECO GCE COMMERCE*

(4a) 

A current account is a type of deposit account held at a bank or financial institution that allows account holders to make frequent deposits and withdrawals. It is designed for businesses, organisations, and high individuals who need to conduct a high volume of transactions.

(4b)

(PICK ANY FOUR)

(i) Savings accounts are designed for long-term savings, while current accounts are designed for frequent transactions.

(ii) Savings accounts typically offer higher interest rates than current accounts.

(iii) Current accounts allow for a high volume of transactions, while savings accounts often come with restrictions on transactions.

(iv) Current accounts generally require a higher minimum balance compared to savings accounts.

(v) Savings accounts earn interest on deposits, while current accounts typically do not.

(vi) Savings accounts often have limits on the number of withdrawals, while current accounts allow unlimited transactions.

(vii) Current accounts may have higher maintenance fees due to their transactional nature, while savings accounts often have lower fees.

(4c)

(PICK ANY FOUR)

(i) Monetary policy: Central banks use monetary policy tools to regulate the money supply and stabilize the economy.

(ii) Banking supervision: Central banks oversee and 'copied from e x a m p l a z a . c o m free' regulate commercial banks and other financial institutions to ensure their stability and soundness.

(iii) Currency management: Central banks manage the supply of currency in circulation, ensuring that there is enough currency to meet demand without causing inflation.

(iv) Lender of last resort: Central banks act as lenders of last resort, providing emergency loans to commercial banks and other financial institutions during times of financial stress.

(v) Foreign exchange management: Central banks manage a country's foreign exchange reserves, regulating the exchange rate and ensuring that the country can meet its international payment obligations.

(vi) Financial stability: Central banks work to maintain financial stability by monitoring and regulating the financial system, identifying potential risks, and taking action to mitigate them.

(5a)

Business resources refer to the inputs or factors of production used by a business to produce goods or services. These resources can be tangible or intangible and are essential for the operation and success of a business. Without adequate resources, a business may struggle to produce goods or services, leading to reduced competitiveness and profitability.

(5b)

(PICK ANY FOUR)

(i) Human Resources: Human resources refer to the people who work for a business, including employees, managers, and owners. They provide labor, skills, and expertise to the business, enabling it to produce goods or services. Human resources are critical to a business's success, as they can drive innovation, productivity, and customer satisfaction.

(ii) Financial Resources: Financial resources refer to the money and credit available to a business. This includes cash, loans, investments, and other financial instruments. Financial resources are essential for a business to operate, as they enable it to invest in assets, pay employees, and fund operations.

(iii) Physical Resources: Physical resources refer to the tangible assets used by a business, such as buildings, equipment, machinery, vehicles, and inventory. These resources are critical to a business's operations, as they enable it to produce goods or services. Physical resources can also appreciate in value over time, providing a business with a potential source of 'copied from e x a m p l a z a . c o m free' capital.

(iv) Technological Resources: Technological resources refer to the tools, systems, and infrastructure used by a business to produce goods or services. This includes computers, software, internet, and other digital technologies. Technological resources can enhance a business's efficiency, productivity, and competitiveness, enabling it to respond quickly to changing market conditions.

(v) Informational Resources: Informational resources refer to the data, knowledge, and expertise used by a business to make decisions and produce goods or services. This includes market research, customer data, and industry trends. Informational resources are critical to a business's success, as they enable it to identify opportunities, mitigate risks, and make informed decisions.

(vi) Natural Resources: Natural resources refer to the raw materials and environmental resources used by a business, such as water, land, minerals, and energy sources. These resources are essential for a business to operate, as they provide the inputs needed to produce goods or services. Natural resources can also be a source of competitive advantage, enabling a business to differentiate itself from rivals.

(6a)

(i) Shares: Shares represent ownership in a company, giving shareholders a claim on its assets and profits. Shareholders receive dividends, which are portions of the company's profit, and can vote on company decisions, such as electing the board of directors. Shares can be bought and sold on stock exchanges, allowing investors to trade ownership in companies.

(ii) Debentures: Debentures are long-term debt securities issued by companies to raise capital for expansion, modernization, or refinancing. They typically offer fixed interest rates and maturity dates, but do not confer ownership on the investor. Debentures are essentially loans to the company, with investors lending money and receiving regular interest payments.

(iii) Bond: Bonds are debt securities issued by companies or governments to raise capital for various purposes. They offer fixed interest rates and maturity dates, with investors lending money and receiving regular interest payments. Bonds can be classified into different types, such as government bonds, corporate bonds, and municipal bonds, each with its own characteristics and risk profile.

(iv) Stock: Stock refers to shares or equity in a company, representing ownership and potential for dividends and capital appreciation. Stocks can be classified into different types, such as common stock, preferred stock, and growth stock, each with its own characteristics and risk profile. 'copied from e x a m p l a z a . c o m free' Investing in stocks involves buying and selling shares on stock exchanges, with the goal of earning returns through dividends and capital gains.

(v) Gilt-edged: Gilt-edged securities, also known as "gilts," are high-quality, low-risk government bonds with a guaranteed return. They are considered very secure investments, as they are backed by the credit of the issuing government. Gilt-edged securities typically offer fixed interest rates and maturity dates, making them attractive to investors seeking predictable returns with minimal risk.

(7a)

(PICK ANY ONE)

A warehouse is a facility used for the storage of goods, raw materials, or finished products. It serves as a point for managing inventory, ensuring goods are available when needed.

OR 

A warehouse is a large building or structure used for storing goods, merchandise, and other materials. It is typically used by businesses, organizations, and individuals to store inventory, raw materials, and finished products. Warehouses are often equipped with shelving, racks, and other storage systems to maximize space and facilitate efficient storage and retrieval of goods.

(7b)

(PICK ANY FOUR)

(i) Private Warehouses: Private warehouses are owned and operated by a single company or organization for their exclusive use. They are typically used for storing the company's own products or materials. Private warehouses offer greater control over storage and handling operations, allowing companies to tailor their warehouse operations to their specific needs.

(ii) Public Warehouses: Public warehouses are owned and operated by a third-party logistics provider and offer storage space to multiple clients. They provide a range of services, including storage, handling, and shipping. Public warehouses are ideal for companies that require flexible storage arrangements or lack the resources to manage their own warehouse operations.

(iii) Bonded Warehouses: Bonded 'copied from e x a m p l a z a . c o m free' warehouses are specialized facilities that store imported goods until customs duties are paid. They are typically located near ports or borders. Bonded warehouses allow importers to delay paying customs duties until the goods are released from the warehouse. This can help importers manage their cash flow and reduce their upfront costs.

(iv) Government Warehouse: A government warehouse is a storage facility owned and operated by the government. It is used for storing government supplies, equipment, and goods, as well as seized or confiscated items. Government warehouses support emergency response and disaster relief efforts, and may house strategic reserves.

(v) Wholesale Warehouse: A wholesale warehouse is a large storage facility that stocks goods in bulk for resale to retailers, distributors, or other wholesalers. These warehouses typically hold large quantities of products, such as consumer goods, food, or industrial supplies. Wholesale warehouses play a crucial role in the supply chain, enabling businesses to purchase products in bulk and facilitating distribution to various markets.

(vi) Manufacturer's Warehouse: A manufacturer's warehouse is a storage facility owned and operated by a manufacturing company. It is used to store finished goods, raw materials, components, and work-in-progress. This warehouse enables efficient inventory management, quality control, and logistics operations, supporting just-in-time production 'copied from e x a m p l a z a . c o m free' and shipping.

(8)

(PICK ANY FIVE)

(i) Target: The target refers to the specific audience or demographic an advertisement is intended to reach. This can include characteristics such as age, gender, location, interests, and behaviors. Understanding the target audience is crucial for creating effective advertisements that resonate with them.

(ii) Reach: Reach measures the number of people exposed to an advertisement. It helps advertisers understand the potential audience size and scope of their ad campaign. Reach is typically expressed as a percentage of the total population or a specific demographic.

(iii) Frequency: Frequency refers to the number of times an advertisement is exposed to the same person. This can impact how well the audience remembers the ad and its message. Advertisers aim to find a balance between frequency and reach to maximize ad effectiveness.

(iv) Impression: An impression is a single exposure of an advertisement to a person. Impressions can occur through various media channels, including TV, online ads, or social media. Advertisers often measure impressions to gauge ad visibility and reach.

(v) Medium: The medium refers to the channel or platform used to deliver an advertisement. Examples include TV, radio, social media, print, and outdoor advertising. Choosing the right medium helps advertisers reach their target audience effectively.

(vi) Message: The 'copied from e x a m p l a z a . c o m free' message refers to the content and creative elements of an advertisement. This includes the headline, copy, images, and overall tone. A clear and compelling message helps grab the audience's attention and communicate the brand's value.

(vii) Placement: Placement refers to the location and positioning of an advertisement. This can include the specific webpage, social media platform, or TV show where the ad appears. Strategic placement helps advertisers maximize ad visibility and reach their target audience.

(9a)

(PICK ANY ONE)

Communication is the dynamic process of exchanging information, ideas, thoughts, or messages between individuals, groups, or organizations through a variety of verbal, non-verbal, or written channels. This exchange can occur through various mediums, such as face-to-face conversations, phone calls, emails, social media, or printed materials. 

OR

Communication is the process of exchanging information, ideas, thoughts, opinions, or messages between individuals, groups, or organizations through a common system of symbols, signs, or behavior. It involves the transmission, reception, and interpretation of information, as well as the exchange of feedback to ensure mutual understanding.

(9b)

(PICK ANY FOUR)

(i) Email: Email, or electronic mail, is a method of sending and receiving messages electronically over a computer network. It allows users to send text messages, attachments, and links to others with email accounts.

(ii) Mobile Phones: Mobile phones, also known as cell phones, are handheld devices that enable users to make voice calls, send text messages, and access the internet. They have revolutionized communication by providing instant connectivity and accessibility.

(iii) Video Conferencing: Video conferencing is a technology that allows users to hold virtual meetings and communicate with others in real-time through video 'copied from e x a m p l a z a . c o m free' and audio transmissions. Platforms like Zoom, Skype, and Google Meet enable remote communication and collaboration.

(iv) Social Media: Social media refers to online platforms that enable users to create, share, and exchange information, ideas, and content. Platforms like Facebook, Twitter, Instagram, and LinkedIn have transformed the way people communicate, interact, and share information.

(v) Instant Messaging Apps: Apps like WhatsApp, Telegram, and Signal enable real-time messaging, voice notes, and file sharing. These apps also allow group chats and encrypted conversations for enhanced security.

(vi) Blogs and Websites: Blogs and company websites are modern tools for communication, enabling businesses and individuals to share detailed information, updates, or opinions with a wide audience.