2019 WAEC GCE COMMERCE ANSWERS
PART 2(INSTRUCTION SAYS, answer five questions only)
(iii)Joint Stock Company
(v)Public or State Undertaking
(i)Transport:- In the modern times there is a vast distance between centers of production and the centers of consumption. This difficulty is removed by an important aid to trade known as Transport.
(ii)Communication:- Communication means transmitting or exchange of information from one person to another. Communication can be oral or in writing. It is necessary to communicate information from one to another to finalize and settle the terms of sales such as prices of goods, discount allowed, the facility of credit, etc.
(iii)Warehousing:- Warehousing is an act of carefully storing goods in warehouses to sell or distribute them later. Warehousing is essential because there is a time gap between production and consumption. In other words, goods, which are produced at one time, are not consumed at the same time.
(iv)Advertising:- Advertising fills the knowledge gap and it solves the difficulty of information. Exchange of goods and services possible only if producers can bring the products to the consumers.
(v)Banking:- Banking solves the problem of finance. Businessmen receive money and also pays money in large amounts. It is risky to carry a large amount of cash from one place to another. Here comes Banking as a solution.
Self-service is the act of serving of oneself in a restaurant, shop, gas station, or other facility, without the aid of a waiter, clerk, attendant.
(i)Customers are Taught New Skills
(ii)It Can Create a Community
(iii)Social Engagement will be Enriched
(iv)Customer Recommendations will Grow
(i)Set up your store for success; The very first thing you’ll want to look at is how your store is set up. Where are the displays? How long does the queue usually look? Does the store look packed to the rafters or is it easy to find things.
(ii)Hide your queue; Customers can be easily spooked if they see a lengthy queue. The good news is that there are a number of ways to fix this.
(iii)Staff according to traffic, not just sales; Many stores will schedule their staff according to hours where the most sales are made, rather than the amount of traffic walking through the door
(iv)Recognize that your employees play a huge role in boosting conversions; This point is part and parcel of the previous point. Not only do you need to be well-staffed, but it’s essential that you train your employees well.
(v)Offer flexible payment options; Sometimes, a limited budget is the only thing keeping a customer from purchasing. If this is the case, consider being more flexible with how you accept payments.
(i)Impossibility of Performance; company may hire and sign a contract to have a public speaker talk at a company event. Once the public speaker fulfills his duties agreed upon in the contract, it is called performance. If for some reason it is impossible for the public speaker to fulfill his duties, it is called impossibility of performance or sometimes “frustration.”
(ii)Breach of Contract; When a contract is intentionally not honored by one party, it is called a breach of contract and is grounds for contract termination. A breach of contract may exist because one party failed to meet his obligations at all or did not meet his obligations fully.
(iii)Termination By Prior Agreement; You may terminate a contract if you and the other party have a prior written agreement that calls for a contract termination because of a specific reason. The usual name for this type of provision is a break clause.
(iv)Rescission of the Contract; A rescission of a contract is when a contract is terminated because an individual misrepresented themselves, acted illegally – fraud, for example – or made a mistake.
(v)Completion of the Contract; A contract is essentially terminated once the obligations outlined in the contract are completed. Parties should keep documentation showing that they fulfilled their contract duties.
Promotion is an element in marketing. It consist of all communication efforts aimed at generating sales and also concerned with the informing customers of product features and persuading them to buy the product
(Choose Any Four)
(i)Risk bearing : This involves anticipating business risks and taking appropriate measures to reduce their impact by talking the necessary insurance cover
(ii)Financing : This covers the provision of funds throughout the period of production to the point of selling through loan and credit facilities
(iii)storage/warehousing : This makes it possible for goods to be produced ahead of demand so that they can be available when needed
(iv)Grading and standardizing : It involves ensuring that the goods conformed to the required standard and quality with respect to the shape,colour ,taste etc.
(v)Transportation: This covers movement of goods form where they are produced to the point where they are required
Commercial bank are financial institutions which accept deposits and other valuables from the sole aim of making profit.They are owned by private individuals,Institutions or government.
Current account: Current account is usually opened by businessmen and is required if a customer wish to make payment through cheque. In current account ,the customer is free to withdraw money on demand.Holders of current account are not entitled to interest but are charged commission by the bank
Savings account :Saving account is operated by low income earners who are small savers.customers pay small regular savings which will accumulate over time.Holders are entitled to interest but cannot withdraw frequently.
Fixed deposit account: fixed deposit account is an account in which money is saved in the bank for a fixed period of time. Holders are entitled to higher interest than saving account. Customers can withdraw subject to seven days of notice.
(i)Provision of documentary credit : commercial bank provide commercial credit facilities to exporters which help in payment for goods.
(ii)Minimising of default in payment : commercial banks guarantee payment for goods brought inorder to ensure that default in payment is reduced.
(iii)Discounting of documentary credit : commercial banks can provide credit to facilitate foreign trade by discounting documentary credit.
(iv)Act as Referees to customers : commercial banks act as referees to exporters by providing information to foreign businessmen about their credit worthiness.
(v)Foreign exchange transaction : commercial banks help to arrange for the purchase and sales of foreign currencies which are used to finance export and import trade.
(vi)Insurance of Travelers cheque: Commercial banks facilitate international trade by issuing travellers cheque to businessmen going abroad.