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Under: _*2025 WAEC COMMERCE ANSWERS [ COMPILED By Mr.CODED-Of-Codedfans.com.ng ]*_
*NUMBER ONE*
(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.
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*WAEC COMMERCE ANSWERS*
*NUMBER TWO*
(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.
*WAEC COMMERCE ANSWERS*
*NUMBER THREE*
(3a)
The organization formed by Country X is called the Trade Promotion Council.
(3b)
(PICK FOUR ONLY)
(i) Market Research and Analysis: The council conducts research on international markets to identify demand trends, consumer preferences, and competitive products. This helps local producers adapt their goods to suit foreign markets.
(ii) Promotion of Local Products Abroad: It organizes trade fairs, exhibitions, and promotional campaigns in foreign countries to showcase and advertise locally manufactured goods.
(iii) Facilitating Export Training and Education: The council provides training programs and workshops to local businesses on export procedures, documentation, packaging standards, and international trade laws.
(iv) Advising Government on Export Policy: It advises the government on trade policies, tariffs, and incentives that can help boost exports and make local products more competitive globally.
(v) Linking Exporters to Foreign Buyers: The council acts as a bridge between local producers and foreign importers by facilitating business matchmaking and networking opportunities.
(vi) Quality Control and Standardization Support: It helps local manufacturers meet international quality standards and certifications required for exporting goods to specific markets.
(vii) Assisting in Overcoming Trade Barriers: The council supports exporters in dealing with non-tariff barriers, such as customs regulations and product testing requirements in foreign countries.
(viii) Providing Financial and Logistical Support: It may assist with financing export activities, insurance, shipping logistics, and accessing government export grants or subsidies.
(3c)
(PICK FIVE ONLY)
(i) To Earn Foreign Exchange: Foreign trade allows Country X to sell goods and services abroad and earn foreign currency, which is essential for international transactions and economic stability.
(ii) To Access Goods Not Produced Locally: By engaging in trade, Country X can import goods that are not available domestically due to a lack of natural resources, technology, or expertise.
(iii) To Acquire Advanced Technology: Foreign trade enables Country X to import modern machinery, tools, and technological know-how that can help boost domestic productivity and industrial development.
(iv) To Expand Market for Local Products: Selling goods abroad provides a larger market for locally produced items, increasing production, employment, and national income.
(v) To Promote Industrial Growth: Trade encourages investment in local industries, as producers can benefit from access to raw materials and markets for their finished products.
(vi) To Foster International Relations: Engaging in trade builds diplomatic and economic relationships with other countries, leading to cooperation in other areas like education, defense, and culture.
(vii) To Stabilize Prices: Foreign trade helps balance supply and demand. Surplus products can be exported to avoid domestic price drops, while scarce goods can be imported to prevent inflation.
(viii) To Encourage Competition and Innovation: Exposure to global markets encourages domestic producers to improve quality, reduce costs, and innovate to compete internationally.
*WAEC COMMERCE ANSWERS*
*NUMBER FOUR*
(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.
*WAEC COMMERCE ANSWERS*
*NUMBER FIVE*
(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.
*WAEC COMMERCE ANSWERS*
*NUMBER SIX*
(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.
*WAEC COMMERCE ANSWERS*
*NUMBER SEVEN*
(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.
