WAEC 2020 Commerce Obj & theory questions and answers is out

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```COMMERCE SOLUTIONS👨🏾‍💻✍🏾✍🏾

 

COMMERCE SOLUTIONS

(1ai)

- Television 

- Radio 

- Cinema 

- Catalogues

(1aii)

-  Coverage or extent of circulation 

- Frequency 

- The target Audience 

- Cost 

(1b)

- It helps in creating job opportunities 

- It provides information about features 

- Reduction of costs

- increase in profit 

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(2a)

(i)improving the profitability of the firm.

(ii)Carrying out restriction of output ,

(iii)control of price,

(iv)allocation of market shares.

(2b)

-Advantages-

(i)They base their decisions on the full costs and benefits

involved.

(ii)They can be used to influence economic activity. To boost the country’s output, public corporations can be directly encouraged to increase their output.

(iii)In cases where it is practical to have only one firm in the industry, such as rail infrastructure, a public corporation would not abuse its market power.

-Disadvantages-

(i)They can be difficult to manage and control. The large size of theorganisations may mean that time has to be spent on meetings and communicating with staff, slowing down decision making.

(ii)They may become inefficient, produce low quality products and charge relatively high prices, due to a lack of competition and the knowledge that they cannot go bankrupt.

(iii)They will need to be subsidized if they are loss making. The use of tax revenue to support them has an opportunity cost it could be used to spend on, say, training more teachers and nurses.

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(5a)

(Choose Any four)

(i) Through the stock exchange market which is part of the capital market ,fund or capital can be raised or mobilised by companies and investors. 

(ii) Stock exchange market provide Financial Market where people can invest their money in shares of companies. 

(iii) Stock exchange facilitates  the transfer of ownership of shares between investors.

(iv) Stock exchange market Provide Avenue for Government to Raise fund. 

(v) The stock exchange market provides professional advice to investors on sales and management of securities

(5b) 

(i) Debenture: A debenture is a document which acknowledges a loan generally under the company's seal,bearing a fixed rate of interest . it usually gives security for replacement of loan as well as the interest. Holders of debenture certificate have no voting right

(ii) Bond: A bond is a security issued by a government or its agency or private institution as a means of raising fund. Bonds are  usually due to be  redeemed at some future date,and they carry a fixed rate of interest.

(iii) Shares: Shares can be defined as an individual portion of the company's capital owned by shareholders. It is the interest which a shareholder has in a company . in other word, a share is a unit of capital measured by a sum of money.

(iv) Stock: Stock can be defined as the bundle of shares or mass of capital which can be transferred in fractional amount. They are always fully paid ,e.g it can be quoted per #100 nominal value.

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6a)

1. Provides Technical Support To Exporters

2. Simplifies Export Procedures

3. Provides Grants And Incentives

4. Simplifies Export Procedures

5. Provides Exportable Products’ List

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