2024 WAEC COMMERCE: WAEC Commerce (Coms) 2024 Legit Questions and Answers (8660)

1a.

i. Colonial Legacy: The colonial period in West Africa, which lasted well into the mid-20th century, had a significant impact on economic development. Colonial powers focused on extracting raw materials rather than developing local industries and infrastructure. This legacy left many countries with underdeveloped economies and weak commercial systems.

ii. Infrastructure Deficiencies: The lack of adequate infrastructure, such as reliable transportation networks, power supply, and communication systems, has hindered commerce in West Africa. Poor road conditions, limited access to ports, and insufficient logistical support have increased the cost and difficulty of doing business in the region.

iii. Trade Barriers and Tariffs: Trade barriers, including excessive tariffs and non-tariff barriers, have impeded regional trade in West Africa. High import duties and complex customs procedures have discouraged cross-border commerce and hindered the growth of intra-regional trade.

iv. Political Instability and Conflict: West Africa has experienced various forms of political instability, including coups, civil wars, and armed conflicts. These disruptions have had a detrimental impact on commerce by causing disruptions to supply chains, damaging infrastructure, and deterring foreign investment.

v. Informal Economy Dominance: The prevalence of the informal economy, characterized by unregistered and unregulated businesses, has limited the growth of formal 'copied from e x a m p l a z a . c o m free' commerce in West Africa. Informal businesses often operate outside the legal framework, leading to challenges in tax collection, quality control, and access to formal financing.

(1b)

(i) Oil driller - Industrial worker

(ii) Potter - Artisan worker

(iii) Policeman - Civil servant worker

(iV) Brewer - Industrial/Service worker

(V) Stock broker - Professional worker

(vi) Mason - Construction worker

(Vii) Farmer - Agricultural worker

(1a)

(PICK ANY FIVE)

(i) Limited access to finance: Limited access to financing and credit facilities has been a significant obstacle to the growth of commerce in West Africa. Many small and medium-sized enterprises (SMEs) struggle to access affordable capital, hindering their ability to expand and invest in their businesses.

(ii) Informal economy dominance: The dominance of the informal economy in West Africa, characterized by unregistered and unregulated economic activities, has hindered formal commerce. Informal sectors often lack access to formal financial services, legal protection, and regulatory frameworks, which limit growth and investment opportunities.

(iii) Weak institutional frameworks: Weak governance, corruption, and inadequate institutional frameworks have posed challenges to commerce in West Africa. Inefficient bureaucracy, cumbersome regulations, and inconsistent enforcement of laws create barriers to business operations, discourage investment, and undermine the overall business environment.

(iv) Slavery: The slave trade was a major hindrance to the growth of commerce in West Africa. It disrupted the social and economic structures of many African societies and led to a decline in trade.

(v) Lack of infrastructure: The lack of roads, bridges, and other infrastructure made it difficult to transport goods from one place to another, which limited the growth of 'copied from e x a m p l a z a . c o m free' commerce.

(vi) Disease: The prevalence of diseases such as malaria and yellow fever made it difficult for traders to operate in West Africa.

(vii) Political instability: The frequent wars and conflicts between different ethnic groups and kingdoms in West Africa disrupted trade and made it difficult for traders to operate.

(viii) Colonialism: The imposition of colonial rule by European powers in the late 19th and early 20th centuries disrupted traditional trade routes and practices and led to the exploitation of African resources for the benefit of European powers.

(ix) Limited diversification: The heavy dependence on primary commodities, such as oil, minerals, and agricultural products, has hindered the diversification of West Africa's economies. Overreliance on a narrow range of exports makes countries vulnerable to price fluctuations, market shocks, and external factors beyond their control.

(1b)

(i) Oil driller - Industrial worker

(ii) Potter - Artisan worker

(iii) Policeman - Civil servant

(iV) Brewer - Industrial worker

(V) Stock broker - Financial professional

(vi) Mason - Construction worker

(vii) Farmer - Agricultural worker

(3a)

(PICK ANY FOUR)

(i) Warehouse ensures that there is no fluctuation in prices of goods. It helps to stabilise prices of goods

(ii) Warehouses serve as storage facilities; they are provided for keeping the goods safely

(iii) warehouse facilities ensure that goods are produced ahead of demand

(iv) Warehousing creates job opportunities for many people eg clerks and managers

(v) warehouse ensures effective check and adequate security for the products

(3bi)

Chain store:

*(PICK ANY TWO)*

(i)chain stores are known to have identical store design, layout and stock display.

(ii) chain stores have centralised form of administration and workshop as headquarters where they managed the business.

(iii)The headquarters usually purchases and distributes goods in bulk to other chain stores all over the nation.

(iv) chain store sells similar range of products or line of merchandise.

(v)chain store operate the same price all over the nation in all other shop. 

(3bii)

Mobile shop:

*(PICK ANY TWO)*

(i)Mobile shop makes sure of special motor van which carry the vendor and their goods from one place to another.

(ii)Mobile shops deal in limited range of goods based on the capacity of the motor van.

(iii)Mobile shops do display the goods inside the motor van in a well arranged pattern

(iv)Mobil shop do advertise their wares through 'copied from e x a m p l a z a . c o m free' music; ringing of bells etc , in order to attract customers.

(3biii)

Mail order business:

*(PICK ANY TWO)*

(i)It is more suitable in dealing on consumer durable goods only.

(ii) It is one of the means of by passing the wholesaler and retailer by the manufacturer.

(iii)mail order shopping is usually carried out by post

(iv)It requires considerable or intensive advertising

(v) It maintains large warehouse and use catalogues

(3a)

[PICK ANY FOUR]

(i) Storage of goods

(ii) Protection of goods

(iii) Risk bearing

(iv) Financing

(v) Processing

(vi) Grading and branding

(vii) Transportation

(3b)

(a) Chain store:

(i) Multiple store locations, often spread across different regions or even countries

(ii) Uses a standardized branding and store design across all locations, giving a consistent customer experience.

(b) Mobile shop:

(i) Operates out of a vehicle or a portable structure, allowing it to move to different locations.

(ii) Typically focuses on a specific product or niche, such as mobile phones or accessories.

(c) Mail order business:

(i) Uses catalogs, websites, or other printed and digital materials to advertise and sell products to customers who place orders remotely.

(ii) Often offers a wide range of products to cater to diverse customer needs and preferences.

(4a)

(i)Stocks: Stocks represent ownership shares in a company. Investors can buy and sell stocks on the stock exchange, aiming to profit from price fluctuations or receive dividends based on the company's performance.

(ii)Bonds: Bonds are debt securities issued by governments, municipalities, or corporations. Investors lend money to the issuer in exchange for periodic interest payments and the return of the principal amount at maturity.

(iii)Exchange-Traded Funds (ETFs): ETFs are investment funds traded on stock exchanges. They represent a basket of securities, such as stocks, bonds, or commodities. Investors can trade ETFs like stocks, offering diversification and flexibility in their investment portfolios.

(iv)Mutual Funds: Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Investors can buy or sell mutual fund shares at the net asset value (NAV) at the end of the trading day.

(v)Options: Options are derivative securities that provide the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a predetermined price within a specific time period. Investors can trade options to speculate on price movements or manage risk in their investment positions.

(4b)

(i)Loyalty: An agent has a duty to act in the best interests of the principal and to avoid conflicts of interest. They should prioritize the principal's goals and not 'copied from e x a m p l a z a . c o m free' engage in activities that would harm the principal or benefit themselves at the principal's expense.

(ii)Obedience: An agent is obligated to follow the lawful instructions and directives of the principal, as long as they are within the scope of the agency relationship. The agent should carry out the principal's wishes and act in accordance with their expressed desires.

(iii)Skill and Competence: An agent has a duty to perform their tasks with a reasonable level of skill, care, and diligence. They should possess the necessary knowledge, qualifications, and experience to fulfill their obligations and responsibilities to the principal.

(iv)Disclosure of Information: An agent has a duty to provide accurate and complete information to the principal regarding all relevant matters related to the agency relationship. This includes disclosing any conflicts of interest, potential risks, or material information that may impact the principal's decisions.

(v)Accounting and Financial Responsibility: An agent is responsible for managing the principal's assets, funds, or resources entrusted to them. They have a duty to maintain accurate records, provide regular accounting statements, and handle the principal's financial affairs in a responsible and transparent manner.

(5a) 

(PICK ANY ONE)

Indent is a formal request from a buyer to a seller to purchase goods or services WHILE a quotation is a formal offer from a seller to a potential buyer, providing the price and terms for the requested goods or services. 

OR

An indent is a formal written request made by a buyer to a seller or supplier for the supply of goods or services WHILE a quotation is a formal written document provided by a seller to a potential buyer, outlining the proposed prices for goods or services requested.

(5bi) 

Export Promotion Council:

(PICK ANY FOUR)

(i) Conducting market research to identify potential export markets, analyzing market trends, and providing valuable insights to exporters.

(ii)  Assisting exporters in understanding and complying with export documentation requirements, customs procedures, and other legal formalities.

(iii) Organizing trade fairs, exhibitions, and buyer-seller meets to showcase products and services, facilitate business networking, and promote exports.

(iv) Representing the interests of exporters in trade negotiations, advocating for favorable trade policies, and addressing trade barriers to facilitate market access for exporters.

(v) Assisting exporters in understanding and complying with quality standards and certifications required in target markets, promoting adherence to international quality norms.

(vi) Representing the 'copied from e x a m p l a z a . c o m free' interests of exporters to the government, providing feedback on policy issues affecting exports, and advocating for policy reforms that promote export growth.

(5bii)

Customs and excise authority:

(PICK ANY FOUR)

(i) They facilitate the smooth flow of international trade by examining and clearing goods at ports, airports, and other entry points

(ii) Customs and Excise authorities are responsible for collecting customs duties, tariffs, and other taxes on imported goods

(iii) Customs authorities aim to facilitate legitimate trade while ensuring compliance with regulations

(iv) Customs authorities enforce laws and regulations related to international trade. 

(v)  Customs authorities play a vital role in ensuring national security at borders

(vi) Customs authorities collect trade data, including import and export statistics, to monitor trade trends, support economic analysis, and develop trade policies.

(6a)

(PICK ANY ONE)

Tourism is the practice which involves the visiting of people to places of interest for recreational, leisure or business purposes.

OR

Tourism refers to the activities of people traveling to and staying in places outside their usual environment for leisure, business, or other purposes

OR

Tourism involves visiting various destinations, exploring their attractions, experiencing their culture, and engaging in recreational activities.

(6bi)

(PICK ANY ONE)

(i) Tourism revenue leaks out of the local economy due to the presence of multinational companies or foreign-owned businesses. 

(ii) Seasonality nature of tourism can lead to instability in local economies, making it challenging for businesses to sustain themselves throughout the year and causing fluctuations in employment opportunities.

(iii) Overly dependent on tourism as its primary source of income makes the place vulnerable to external factors such as economic downturns, political instability, natural disasters, or changes in travel patterns especiaccly when there is a decline in tourist arrivals.

(iv) Tourism can drive up the cost of living in popular destinations

(6bii)

(PICK ANY ONE)

(i) Tourism development can lead to social disruptions within local communities

(ii) Rapid tourism development can erode traditional values, customs, and cultural practices.

(iii) Tourism can lead to the 'copied from e x a m p l a z a . c o m free' exploitation of local cultures and traditions. 

(iv) The presence of tourists can sometimes lead to the emergence of negative social behaviors, such as an increase in crime rates, substance abuse, and prostitution. 

(v)  The benefits of tourism may not be equally distributed among the local population, resulting in unequal access to employment opportunities, income, and resources.

(6biii)

(PICK ANY ONE)

(i) Tourism can contribute to various forms of pollution, including air, water, and noise pollution.

(ii) The development of tourism infrastructure such as hotels, resorts, roads, and recreational facilities can result in habitat destruction and fragmentation.

(iii) High tourist concentrations in water-stressed areas can strain local water resources due to excessive water extraction for hotels, swimming pools, golf courses, and other tourist amenities.

(iv) Tourism generates substantial amounts of waste, including packaging, food waste, and single-use items.

(6ci)

(PICK ANY TWO)

(i) Tourism can be a significant driver of economic growth, contributing to increased business opportunities, job creation, and income generation. 

(ii) Tourism can generate foreign exchange earnings through spending by international visitors. 

(iii) Tourism offers opportunities for diversifying an economy beyond traditional industries. 

(iv) Tourism provides a platform for small-scale 'copied from e x a m p l a z a . c o m free' businesses and entrepreneurs to thrive. 

(v) To cater to the needs of tourists, destinations often invest in infrastructure development projects such as airports, roads, transportation networks, and public amenities.

(6cii)

(PICK ANY TWO)

(i) Tourism provides opportunities for cultural exchange and interaction between visitors and local communities.

(ii) Tourism can play a crucial role in the preservation and promotion of cultural heritage

(iii) Well-managed tourism can empower local communities by involving them in decision-making processes, providing opportunities for entrepreneurship and income generation

(iv) Tourism can raise awareness about environmental issues and contribute to conservation efforts. 

(v) ourism development often leads to improvements in infrastructure and public services in destinations

(6ciii)

(PICK ANY TWO)

(i) Tourism can create economic incentives for the conservation and preservation of natural areas, including national parks, wildlife reserves, and protected habitats.

(ii) Tourism can raise awareness about environmental issues and promote environmental education.

(iii) ourism can drive the adoption of sustainable practices by encouraging businesses and destinations to minimize their environmental footprint. 

(iv) Tourism can contribute to the conservation of natural areas and biodiversity.

(v) Tourism development can facilitate the 'copied from e x a m p l a z a . c o m free' restoration and rehabilitation of degraded environments

7a. i)

Marketing is a broader and strategic function that encompasses activities aimed at identifying and satisfying customer needs. It involves market research, product development, branding, promotion, and pricing strategies. Marketing focuses on creating awareness, building relationships, and delivering value to customers. It involves understanding customer preferences, segmenting the market, and developing targeted marketing campaigns to attract and retain customers while Selling, on the other hand, is a more tactical and transactional process that involves direct interaction with customers to persuade them to purchase a product or service. It typically occurs after the marketing efforts have created awareness and generated leads. Selling focuses on closing individual sales, negotiating deals, and fulfilling customer orders. The sales process involves personal selling, product demonstrations, negotiations, and handling objections to secure the sale.

7a. ii)

Marketing activities start well before the selling process and continue throughout the customer lifecycle. It involves creating a favorable market environment, building brand reputation, and establishing long-term customer relationships. Marketing aims to influence customers' perceptions, preferences, and purchase decisions over an extended period. It includes activities such as market research, product development, advertising, public relations, and customer relationship management while Selling 'copied from e x a m p l a z a . c o m free' occurs during the final stages of the customer journey when the potential customer is ready to make a purchase decision. It focuses on converting leads into actual sales by engaging with customers on a one-on-one basis. Selling is primarily concerned with the immediate transaction and fulfilling the customer's specific needs. The sales process may involve product presentations, negotiations, closing the sale, and providing post-sale support.

7b) The four main elements of the marketing mix, often referred to as the 4Ps, are:

1. Product: This refers to the goods or services offered by a company. It includes product design, features, quality, branding, packaging, and customer value proposition.

2. Price: Price refers to the amount customers are charged in exchange for the product or service. It involves setting competitive pricing strategies, considering factors such as costs, market demand, pricing objectives, and perceived value.

3. Place: Place refers to the distribution channels and methods used to make the product available to customers. It involves decisions related to inventory management, logistics, channel partners, and selecting the most suitable distribution channels to reach the target market effectively.

4. Promotion: Promotion encompasses all the activities used to communicate and promote the product to the target market. It includes advertising, sales promotion, public relations, personal selling, and digital marketing 'copied from e x a m p l a z a . c o m free' efforts to create awareness, generate interest, and persuade customers to purchase the product.

7c)

The benefits that Country Z could derive from remaining in the Economic Community of West African States (ECOWAS) include:

1. Trade Advantages: By remaining in ECOWAS, Country Z can benefit from preferential trade agreements and reduced trade barriers within the member countries. This can lead to increased export opportunities, access to larger markets, and the potential for economic growth through increased trade.

2. Economic Cooperation: ECOWAS provides a platform for economic cooperation and collaboration among member countries. Country Z can participate in regional development projects, joint ventures, and infrastructure initiatives, leading to improved economic stability and shared resources.

3. Regional Security: ECOWAS has a focus on promoting peace, stability, and security within the region. By remaining in the group, Country Z can benefit from collective security efforts, cooperation in combating transnational crime, and regional peacekeeping initiatives.

4. Regional Integration: ECOWAS aims to promote regional integration, which can enhance political, social, and cultural ties among member countries. This can lead to increased cooperation in areas such as education, healthcare, cultural exchange, and regional governance, fostering regional unity and cooperation.