WAEC 2018/19 MAY/JUNE COMMERCE OBJECTIVE AND THEORY, QUESTIONS and ANSWERS

Commerce OBJ:
1-10: DCBCCADBBB
11-20: ACDADBDAAD
21-30: BABCDAAABC
31-40: ABABDBCADA
41-50: CCBBBAACAB

1a)
-The size of the market: The most common limitation to division of labor is the size of the market. By the size of the market, what is meant is the size of the demand for a particular commodity. If the size of the market is very small and demand of the commodity or product is not high, then division of labor cannot really be practiced.

-Some work cannot be broken down into a number of processes. Not all work can be compatible with division of labor. The production of certain commodities is so simple that it involves only one or two processes. And in these cases it is rational and also economically rational to avoid division of labor.

1b)
-Work becomes dull and monotonous
-Increased dependence
-Greater risk of unemployment.

1c)
-Increase in Production
-Reduction in the Cost of Production
-Availability of Commodities at a Cheaper Price
-Saving of Capital and Tools
-Increase in the Number of Efficient-Organizers

(7a)
contract is a voluntary arrangement between two or more parties that is enforceable by law as a binding legal agreement. Contract law recognises and governs the rights and duties arising from agreements

(7b)

1. To Protect against Poor Quality
Companies rarely produce shoddy products on purpose. However, manufacturers may be tempted to use low-quality material in making certain appliances, causing them to be defective. 

2. To Stop Unethical Practices
The modern economy is fiercely competitive and unethical business owners will cut corners without regard to the health or safety of the consumers. Unethical practices also produce incredibly bad service and no consumer should have to deal with it.

3.  To See Consumer Justice Is Done
States have various laws protecting the consumer, which sometimes are ignored by business. One group legal services benefit that can be performed is correspondence. 

4. Countrywide Wants to Keep Consumers Safe
Defective products can be dangerous. When a plan member needs consumer protection advice the Countrywide attorney moves quickly. The right counsel is given as a necessary part of the group legal services provided, and options are explained patiently to the plan member.

2a)
-Legal and Regulatory Environment
-Financial Capital
-Competitive Factors
-Target Market
-Best location
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(5a)
(i) Helpful in planning: Marketing provides information to management related with planning for future programmers.
(ii) Helpful in making profit: Marketing can generate revenue at a cost which will leave some surplus in the form of net profits.
(iii) Helpful in distribution: In business organization marketing department provides information about quantity, time, means and medium of transportation etc. of delivery of goods in different places.
(iv) Helpful in exchanging information: Marketing plays an important role for exchanging information among consumers and firms.
(5b)
(i) Advertising: The masses of customers dispersed geographically can be reached with the Promotional Tools of advertising, which can be repeated for a number of
times. The popularity, size and success of the selling organization are enhanced by the large scale advertising.
(ii) Personal Selling: At certain stages of the buying process, personal selling is the most effective promotion tool in creating customer’s preferences, convictions and actions.
(iii) Sales Promotion: These Promotional tools include sales promotion which further contains a broad assortment of elements like Coupons Cent-off Deals Premiums.
(iv) Public Relations: Public relations are much different from the ads and they are more influential than these ads.

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6a)
Second tier security market is a market where buying and of existing securities of companies take place.
6b)
1. It is an avenue for companies, investors to raise capital.
2. The market provides opportunity for buying and selling of shares of companies.
3. SSM affords investors the opportunity of assessing the profitability and efficiency of companies in order to know which company to invest.
4. Investors are provided with the opportunity of obtaining loans.
6c)
1. Application for Listing will only be entertained if sponsored by a Dealing Member of The Exchange.
2. The company must be a public company, which will issue or has issued an invitation to the public to subscribe for its shares or has satisfied Council that the public is sufficiently interested in the company’s shares to warrant Listing.
3. All securities for which listing is sought shall first be registered with the securities and Exchange Commission.
4. Before the grant of Listing, all applicant companies shall sign a General
Undertaking that they will provide promptly certain information about their
operations and that they will follow certain administrative procedures.
5. All companies admitted to Listing on The Exchange shall pay a listing fee as
laid down in Appendix iv and these fees are subject to review from time to time.