NECO 2025 COMMERCE ANSWERS; EXAMGRANDCOMNG

COMMERCE OBJ
01-10: CBADDABCAD
11-20: BBCABEDCCD
21-30: CDECCDDBEE
31-40: BABECDBBED
41-50: DADBCAADCC
51-60: EBEABAABAC

COMPLETED.

ESSAY INSTRUCTIONS: ANSWER FIVE QUESTIONS ONLY.

(1a)
Commerce is the study and activities involved in the buying and selling of goods and services. It includes all the processes that help in the smooth distribution of goods from producers to final consumers.

(1b)
(PICK FOUR ONLY)
(i) Trade: Trade is the act of buying and selling goods and services. It enables producers to sell their products and consumers to obtain what they need. Trade can be domestic, within a country, or international, between countries.
(ii) Transportation: Transportation is the movement of goods and people from one place to another. It makes it possible for goods produced in one location to reach consumers in different areas, thereby expanding markets and promoting specialization.
(iii) Warehousing: Warehousing involves storing goods until they are needed for sale or consumption. It helps in stabilizing prices, ensuring continuous supply, and protecting goods from damage or spoilage.
(iv) Banking: Banking provides financial services such as savings, lending, and payment facilities. It helps traders and businesses access capital to carry out commercial activities and ensures safe financial transactions.
(v) Insurance: Insurance protects businesses and individuals against risks such as theft, fire, accidents, and other unforeseen losses. It encourages business growth by reducing the fear of financial loss.
(vi) Advertising: Advertising is the process of promoting goods and services to inform and attract customers. It helps increase product awareness, educates consumers, and boosts sales.
(vii) Communication: Communication involves the exchange of information between buyers, sellers, and intermediaries. It is essential for effective business transactions and helps in quick decision-making and coordination.

(viii) Provision of Market Information: Commerce provides market information that helps producers and consumers make informed decisions. It includes details about prices, demand, supply, and consumer preferences, which are necessary for successful trading.

(2a)
Home trade is the buying and selling of goods and services within the boundaries of a particular country. It involves transactions between people or businesses located in the same nation and is usually carried out using the country’s currency.

(2b)
(PICK SIX ONLY)
(i) Home trade is the exchange of goods and services within a country, while foreign trade is the exchange of goods and services between two or more countries.
(ii) Home trade uses the same national currency for transactions, while foreign trade often involves the use of different currencies from different countries.
(iii) Home trade usually does not involve customs duties, while foreign trade often requires payment of customs duties and tariffs.
(iv) Home trade generally faces fewer restrictions and regulations, while foreign trade is subject to strict international laws, regulations, and trade agreements.
(v) Home trade does not require complex documentation, while foreign trade requires several important documents such as bills of lading, certificates of origin, and export licenses.
(vi) Home trade usually involves lower transportation costs because the goods move within the country, while foreign trade often involves high transportation costs due to long distances.
(vii) Home trade usually has no language barriers, while foreign trade may involve language differences that require translation or interpretation.
(viii) Home trade transactions are generally faster and easier to complete, while foreign trade transactions may take a longer time due to shipping, documentation, and government clearances.
(ix) Home trade focuses on the local market, while foreign trade allows businesses to access international markets and customers globally.

(2c) (PICK ONE ONLY)
(i) Wholesale Trade: This is the buying of goods in large quantities from producers or manufacturers and selling them in smaller quantities to retailers. Wholesalers act as a link between producers and retailers.
(ii) Retail Trade: This involves the selling of goods in small quantities directly to the final consumers. Retailers buy from wholesalers or manufacturers and supply goods to individuals for personal use.
(iii) Itinerant Trade: This is a type of retail trade where traders move from place to place to sell goods. Examples of itinerant traders include hawkers, peddlers, and mobile shop owners.

(iv) Foreign Goods Trade within the Country: This involves the selling of imported goods within the country. Although the goods are from other countries, their sale within the nation is considered part of home trade as the transaction takes place locally.

(3i)
Certificate of Origin: The certificate of origin is an official document that states the country where the goods being exported were manufactured or produced. It is usually issued by a recognized trade authority such as a Chamber of Commerce. This document is important because some countries give special trade benefits or impose tariffs based on the origin of the goods. It helps to determine if goods qualify for preferential treatment under trade agreements.

(3ii)
Freight Note: A freight note is a document prepared by a transport company that shows the cost of transporting goods from one place to another. It includes details such as the weight of the goods, the distance to be covered, and the total transportation charges. The freight note serves as evidence of the transportation contract and is used for making payments to the carrier.

(3iii)
Ship Manifest: A ship manifest is a detailed list of all the goods loaded on a ship for transportation. It includes information such as the names of the consignors and consignees, the description of the goods, quantity, weight, and destination. The ship manifest is used by customs officers for checking and controlling cargo, and it helps in tracking goods during international shipping.

(3iv)
Insurance Certificate: An insurance certificate is a document issued by an insurance company to confirm that goods being shipped are covered by insurance against specific risks such as theft, fire, or damage during transportation. The certificate shows the value of the goods, the type of coverage, and the period of insurance. It protects the seller or buyer from financial loss in case of damage or loss of goods while in transit.

(3v)

Indent: An indent is a formal order or request sent by an importer to an exporter or supplier to supply certain goods. It contains details such as the type, quantity, price, and delivery terms of the goods needed. An indent can be either open, allowing the supplier to choose the source of the goods, or closed, specifying the exact manufacturer or supplier from whom the goods must be purchased. It serves as the starting point for an international trade transaction.

(4)
(PICK FIVE ONLY)
(i) Portability: Money must be easy to carry from one place to another without inconvenience. This quality allows people to easily use money for transactions wherever they go. If money were heavy or difficult to transport, it would not be effective as a medium of exchange.

(ii) Durability: Money should be able to last for a long time without losing its form, appearance, or value. It must withstand frequent handling, folding, and storage without easily wearing out or getting damaged. Durable money maintains its usefulness over time.

(iii) Divisibility: Money should be easily divisible into smaller units to enable people to buy goods and services of different values. For example, a currency that can be divided into coins and smaller notes allows both small and large transactions to take place smoothly.

(iv) Acceptability: Money must be generally accepted by people within an economy for the exchange of goods and services.

When money is widely trusted and recognized, people are willing to accept it in transactions without hesitation.

(v) Uniformity: Money should be uniform in appearance, size, weight, and value for the same denomination. Uniformity helps to easily identify and confirm the value of money, reducing confusion and ensuring smooth transactions.

(vi) Stability of Value: Money should maintain a relatively stable value over time. When money’s value fluctuates rapidly, it can cause inflation or deflation, which negatively affects the economy. Stable money provides confidence to buyers and sellers in making transactions.

(vii) Scarcity: Money should be limited in supply to maintain its value. If money is too abundant, it can lose its purchasing power and cause inflation. The supply of money must be controlled to ensure it retains its worth in the economy.

(viii) Recognizability: Money must be easily recognizable and distinguishable from fake or counterfeit money. Features such as special designs, colors, watermarks, and security threads help people quickly identify genuine money and prevent fraud.

(5a)
Credit is an arrangement in which a buyer is allowed to receive goods or services now and pay for them at a later agreed date. It involves trust between the seller and the buyer that payment will be made in the future.

(5b)
(PICK FOUR ONLY)
(i) Increased Sales Volume: Credit sales encourage more customers to buy goods and services because they can make purchases without immediate payment. This leads to higher sales and increased revenue for the seller.
(ii) Customer Loyalty: When sellers offer credit to their customers, it builds trust and strengthens the relationship. Customers are more likely to remain loyal and continue to buy from sellers who offer flexible payment terms.
(iii) Competitive Advantage: Businesses that offer credit sales may attract more customers compared to those that insist on cash-only transactions. Credit sales give the business an edge over competitors who do not provide such options.
(iv) Encourages Bulk Purchase: Credit sales enable customers to buy larger quantities of goods since they do not need to pay immediately. This helps sellers to clear more stock and achieve faster turnover.
(v) Supports Slow-Moving Products: Credit sales can help sellers quickly dispose of slow-moving or less-demanded goods by making it easier for customers to buy on flexible payment terms.
(vi) Facilitates Business Growth: By increasing sales and customer base, credit sales contribute to business expansion and higher market share. It allows businesses to grow faster by serving more customers.
(vii) Improves Customer Cash Flow: Credit sales help customers manage their finances better by allowing them to spread their payments over time. This flexibility can attract more buyers who would otherwise be unable to make immediate purchases.

(viii) Builds Business Reputation: Offering credit to trusted customers helps a business gain a positive reputation as a supportive and customer-friendly organization. This good image can attract more buyers and create long-term success.

(6i)
Clarity of Objective: Clarity of objective means that the goals and purposes of an organization must be clearly defined and well understood by all members of the organization. Every employee should know what the organization is working to achieve. When objectives are clear, they guide decision-making, align efforts, and ensure that all departments and workers are moving in the same direction toward common goals.

(6ii)
Unity of Command: Unity of command is the principle that each employee should receive orders from only one superior or manager. This prevents confusion, conflicting instructions, and divided loyalty. When an employee reports to a single boss, it promotes discipline, effective supervision, and smooth communication within the organization.

(6iii)
Unity of Direction: Unity of direction means that all activities in an organization should be guided toward the same overall objectives.

Employees working on similar tasks or projects should follow one plan and be directed by one manager. This ensures coordination, avoids duplication of effort, and leads to the successful achievement of organizational goals.

(6iv)
Division of Labour: Division of labour refers to breaking down work into smaller, specialized tasks and assigning each task to employees who are skilled in performing them. This principle increases efficiency, saves time, improves accuracy, and helps workers become experts in their specific jobs, leading to higher productivity.

(6v)

Scalar Chain: The scalar chain is the clear line of authority within an organization that runs from the top management to the lowest levels. It represents the formal chain of command and communication. This chain ensures that instructions and information flow in an orderly and organized manner. Respecting the scalar chain helps maintain order, discipline, and responsibility throughout the organization.

(7)
(PICK FIVE ONLY)
(i) Consumer Cooperative Society: This type of cooperative is formed by consumers who come together to buy goods in large quantities directly from producers or wholesalers. The aim is to supply goods to members at affordable prices and to eliminate middlemen. Profits made are usually shared among members or used to reduce the cost of goods.

(ii) Producer Cooperative Society: Producer cooperatives are formed by producers or manufacturers who come together to jointly produce and market their goods. Members pool their resources, such as raw materials, tools, and labour, to reduce production costs and increase efficiency. Profits are shared according to each member’s contribution.

(iii) Credit Cooperative Society: Credit cooperatives are established to provide financial assistance to their members. They collect savings from members and offer loans at low interest rates. This type of cooperative helps members avoid exploitation by moneylenders and promotes savings and investment among members.

(iv) Marketing Cooperative Society: This type of cooperative is formed to help producers, especially farmers, to sell their products at good prices. The society assists in marketing, transportation, storage, and advertising of members’ goods. It helps reduce the influence of middlemen and ensures that producers get fair returns.

(v) Multipurpose Cooperative Society: Multipurpose cooperatives perform a combination of functions such as buying and selling goods, granting loans, providing farming equipment, and offering other services to members. This type of cooperative meets several needs of its members within a single organization.

(vi) Housing Cooperative Society: Housing cooperatives are established to help members acquire land, build houses, or secure affordable accommodation. Members contribute funds to purchase building materials, develop housing projects, or assist each other in getting loans for home ownership at reduced costs.

(vii) Agricultural Cooperative Society: This type of cooperative is specifically formed by farmers to support agricultural activities. The society provides farming inputs like seeds, fertilizers, and equipment, assists with processing and marketing farm produce, and may also offer storage and transportation services.

(viii) Workers’ Cooperative Society: Workers’ cooperatives are formed by workers or employees who jointly own and manage a business. Members contribute capital, make collective decisions, and share profits equally. This type of cooperative promotes worker participation and job security.

(8a)
Deregulation is the process of removing or reducing government rules, laws, and restrictions in an industry or sector to allow free market competition. It gives private individuals and businesses more freedom to operate without strict government control, with the aim of increasing efficiency, innovation, and competition.

(8b)
=ADVANTAGES OF DEREGULATION=
(PICK SIX ONLY)

(i) Promotes Competition: Deregulation encourages more companies to enter the market, which leads to healthy competition. This competition can result in better products and services for consumers.
(ii) Improves Efficiency: When businesses are free from heavy regulations, they can operate more efficiently by cutting unnecessary costs and making faster decisions to meet market demands.
(iii) Encourages Innovation: Deregulation allows companies to be more creative and develop new products and services without being slowed down by government rules. This leads to technological advancement and improved services.
(iv) Increases Investment: With fewer restrictions, local and foreign investors are more likely to invest in deregulated industries, which can lead to economic growth and job creation.
(v) Reduces Government Burden: Deregulation reduces the government’s role in managing industries, allowing authorities to focus on other important areas like security, education, and healthcare.
(vi) Provides Consumer Choices: As more businesses compete, consumers have access to a wider variety of goods and services, which gives them more freedom to choose what suits their needs.
(vii) Encourages Price Reduction: Increased competition in deregulated markets often leads to lower prices, as companies try to attract more customers by offering affordable options.
(viii) Boosts Economic Growth: Deregulation can help industries grow faster by opening up markets and encouraging private sector participation, which increases the overall productivity of the economy.

=DISADVANTAGES OF DEREGULATION=
(PICK TWO ONLY)
(i) Risk of Exploitation: Without proper regulation, some companies may take advantage of consumers by offering low-quality goods, charging unfair prices, or providing poor services.
(ii) Monopoly Formation: Deregulation can lead to the rise of large powerful companies that dominate the market, which may reduce competition and harm consumers in the long run.
(iii) Social Inequality: Some deregulated industries may focus only on profit and neglect social responsibilities, leading to poor services in rural areas or among low-income populations.
(iv) Environmental Damage: Without strict government controls, some businesses may ignore environmental protection laws, which can lead to pollution, resource depletion, and health risks.

(v) Job Insecurity: In the quest for efficiency and profit, companies in deregulated sectors may lay off workers, reduce salaries, or cut employee benefits, causing job instability.

(9)
(PICK FIVE ONLY)
(i) To Promote Economic Integration: The primary aim of ECOWAS is to achieve economic integration among member states by creating a single large market that allows free movement of goods, services, and people across borders to strengthen regional trade and development.

(ii) To Establish a Common Market: ECOWAS seeks to establish a common market and customs union among member countries where tariffs and trade barriers are reduced or eliminated to encourage increased trade and investment within the region.

(iii) To Promote Industrial Development: ECOWAS aims to support industrial growth among member states by encouraging joint ventures, harmonizing industrial policies, and fostering cooperation in the development of regional industries to reduce dependence on foreign goods.

(iv) To Facilitate Free Movement: ECOWAS works to ensure the free movement of persons, goods, and capital across member countries by simplifying visa procedures, removing travel restrictions, and promoting regional transportation networks to increase mobility and economic interaction.

(v) To Encourage Agricultural Development: ECOWAS supports cooperation among member states in agricultural