2026 WAEC COMMERCE ANSWER



COMMERCE
1-10: BCBDABDBCB
11-20: ACAADDDDAD
21-30: BDACBBDCAB
31-40: BBBCADCBDB
41-50: DCCCCDAAAD

(1a)
(PICK ANY ONE)
Commerce is the process of buying and selling goods and services and all activities that aid trade, such as transportation, banking, insurance and advertising. While E-commerce is the buying and selling of goods and services through electronic networks, especially the internet.

OR

Commerce refers to the branch of business that deals with the distribution and exchange of goods and services from producers to consumers through trade and aids to trade. While E-commerce is a system of conducting commercial transactions electronically using computers, mobile phones and other digital devices without physical contact between buyers and sellers.

(1bi)
(PICK ANY ONE)
Business to Customer (B2C) is a type of e-commerce in which a business sells goods and services directly to individual consumers through the internet. In this arrangement, customers visit online stores, place orders, make payments electronically and receive the products or services from the business.

OR

Business to Customer (B2C) refers to electronic commercial transactions between a business organization and the final users of its products. It enables consumers to buy goods and services online without visiting a physical store, making transactions faster and more convenient.

(1bii)
(PICK ANY ONE)
Government to Business (G2B) is a type of e-commerce that involves the use of electronic platforms for interactions between government agencies and business organizations. Through this system, businesses can access government services, submit applications and make payments online.

OR

Government to Business (G2B) refers to online transactions and communication between government institutions and private businesses. It allows companies to carry out activities such as tax payments, business registration, licence applications and other official transactions electronically.

(1c)
Advantages of E-commerce:
(PICK ANY TWO)
(i) It enables businesses to operate twenty-four hours a day.
(ii) It gives access to a wider market across different locations.
(iii) It reduces the cost of maintaining physical shops.
(iv) It allows faster buying and selling transactions.
(v) It improves communication between buyers and sellers.
(vi) It provides convenience to customers.

Disadvantages of E-commerce:
(PICK ANY THREE)
(i) Risk of fraud and cybercrime.
(ii) Dependence on internet and electricity supply.
(iii) Customers cannot physically inspect goods before purchase.
(iv) Delivery delays may occur.
(v) Technical failures can disrupt transactions.
(vi) Personal information may be exposed to hackers.
(vii) High cost of setting up and maintaining online platforms.
(viii) Lack of personal contact between buyers and sellers.
(ix) Possibility of receiving damaged or wrong products.
(x) Difficulty in resolving complaints in some cases.

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(2a)
(PICK ANY ONE)
Division of labour is the process of breaking down a production activity into different tasks and assigning each task to different workers according to their skills and abilities, so that each worker specializes in a particular aspect of the work.

OR

Division of labour is the specialization of workers in different tasks or stages of production, where each worker performs a specific part of the work to increase efficiency and productivity.


(2b)
(PICK ANY THREE)
(i) Capital is a man-made factor of production.
(ii) It is used to produce other goods and services.
(iii) It is subject to depreciation through wear and tear.
(iv) It can be increased through savings and investment.
(v) It is mobile and can be transferred from one place or use to another.
(vi) It is productive because it helps in generating income and wealth.
(vii) It has a derived demand, since its demand depends on the demand for the goods and services it helps to produce.
(viii) It requires maintenance and replacement to remain useful.

(2ci)
(PICK ANY ONE)
Extraction occupation refers to economic activities concerned with obtaining natural resources directly from the earth, sea, or forest for human use and industrial production.

OR

Extraction occupation involves the removal of natural resources from the earth, water, or forest for use by man and industries.

Examples:
(PICK ANY FOUR)
(i) Mining of gold, coal, tin and limestone.
(ii) Crude oil exploration and drilling.
(iii) Fishing.
(iv) Lumbering (Cutting of timber).
(v) Quarrying (granite, sand, gravel, stone)
(v) Salt mining/extraction

(2cii)
(PICK ANY ONE)
Manufacturing occupation refers to economic activities that involve processing or transforming raw materials into finished goods or products that can be used by consumers or other industries.

OR

Manufacturing occupation involves the conversion of raw materials into finished or semi-finished goods through industrial processes.

Examples:
(PICK ANY FOUR)
(i) Production of cement from limestone.
(ii) Manufacturing of textiles from cotton.
(iii) Production of vehicles in automobile factories.
(iv) Processing of cocoa into chocolate.
(v) Producing paper from wood pulp.
(vi) Making shoes from leather.

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(3ai)
Agricultural Cooperative Society

(3aii)
(PICK ANY FOUR)
(i) Membership is voluntary and open to eligible farmers.
(ii) It is owned and controlled by its members.
(iii) Each member has equal voting rights (one member, one vote).
(iv) Members contribute capital through shares or subscriptions.
(v) Profits are distributed among members according to their patronage or participation.
(vi) It is established to promote the economic welfare of members.
(vii) It operates on democratic principles.
(viii) Members share risks and benefits of the society.

(3b)
(PICK ANY FIVE)
(i) Limited Liability: The owners of a private company enjoy limited liability. This means that shareholders are only responsible for the debts of the company up to the amount they invested. Their personal property and savings are protected from business losses and obligations.

(ii) Separate Legal Entity: A private company has a legal identity different from its owners. It can own property, enter into contracts, sue others, and be sued in its own name. This ensures continuity and stability in business operations and transactions.

(iii) Continuity of Existence: The company continues to exist even when shareholders die, retire, or transfer their shares. Its existence is not affected by changes in ownership. This provides stability and allows the business to operate continuously over a long period.

(iv) Ease of Raising Capital: A private company can raise more capital by issuing shares to its members. It can also obtain loans from financial institutions more easily because of its legal status and organized structure, making business expansion possible.

(v) Better Management: The company is managed by qualified directors who are elected to oversee its activities. This separation of ownership from management promotes efficiency, proper planning, and better decision-making, leading to improved performance and business growth.

(vi) Greater Business Expansion: Due to increased access to capital and professional management, a private company can expand its operations more easily. It can establish new branches, introduce new products, and enter new markets to increase profitability.

(vii) Transferability of Shares: Shares in a private company can be transferred to other approved members according to the company's regulations. This allows shareholders to recover their investments when necessary without affecting the existence or daily operations of the company.

(viii) Increased Public Confidence: Private companies usually maintain proper records and comply with legal requirements. As a result, customers, suppliers, banks, and investors tend to have greater confidence in dealing with them, which enhances their reputation and business opportunities.

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(4a)
(PICK ANY FIVE)
(i) Low Capital Requirement: Hawking requires very little capital to start compared to supermarkets. A hawker can begin business with a small amount of money and a few goods, making it an attractive option for individuals who cannot afford large business investments.

(ii) Convenience to Customers: Hawkers move from place to place, bringing goods directly to consumers. This saves customers time and transport costs since they can purchase needed items at their homes, workplaces, bus stations, or along the streets.

(iii) Employment Opportunity: Hawking provides a source of income and employment for many people, especially the unemployed and school leavers. It enables them to earn a living without waiting for scarce formal jobs in government or private organizations.

(iv) Flexible Business Operation: Hawkers can easily change their locations and business hours according to customer demand. This flexibility allows them to reach more customers and maximize sales, unlike supermarkets which operate from fixed locations.

(v) Ability to Sell in Remote Areas: Hawkers can reach villages, streets, and communities where supermarkets are unavailable. By taking goods directly to such areas, they satisfy consumer needs and create a ready market for their products.

(vi) Lower Operating Costs: Hawkers do not spend much on rent, electricity, security, and staff salaries. Their low operating expenses enable them to continue in business and sometimes sell goods at competitive prices.

(vii) Quick Sales and Cash Transactions: Most hawkers conduct business on a cash-and-carry basis, reducing the risk of bad debts. Immediate payment allows them to quickly recover their capital and restock goods for continuous business operations.

(viii) Availability of Ready Market: Many consumers prefer buying from hawkers because of convenience and accessibility. The constant demand for everyday items such as fruits, snacks, and household products encourages hawkers to remain in business.

(4b)
(PICK ANY FIVE)
(i) Large Size and Spacious Premises: A hypermarket occupies a very large area and contains numerous departments under one roof. The spacious environment allows customers to move freely while shopping for a wide variety of products and services.

(ii) Wide Variety of Goods: Hypermarkets stock different categories of goods such as food items, clothing, electronics, furniture, and household products. Customers can conveniently purchase many items in one location instead of visiting several separate shops.

(iii) Self-Service System: Customers select goods by themselves from shelves and display stands without assistance from sales attendants. This system makes shopping faster, encourages independent purchasing decisions, and reduces the cost of employing many workers.

(iv) Fixed and Clearly Marked Prices: Goods in a hypermarket usually carry price tags showing their selling prices. Customers know the cost of products before purchase, eliminating bargaining and making transactions more transparent and convenient.

(v) Modern Shopping Facilities: Hypermarkets are equipped with facilities such as shopping trolleys, baskets, computerized checkout systems, air conditioning, and parking spaces. These facilities improve customer comfort and make shopping more efficient and enjoyable.

(vi) Bulk Purchasing and Sales: Hypermarkets buy goods in large quantities directly from manufacturers and wholesalers. This enables them to enjoy discounts, maintain adequate stock levels, and often sell products at relatively lower prices to consumers.

(vii) Centralized Management: The various departments of a hypermarket are controlled by a central management team. This ensures proper coordination of activities, efficient decision-making, effective supervision, and smooth operation of the entire business.

(viii) One-Stop Shopping Centre: Customers can obtain most of their needs in a single shopping trip. The availability of numerous products and services under one roof saves time, transport costs, and effort for shoppers.

(ix) Ample Parking Space: Hypermarkets usually provide large parking areas for customers. This makes it convenient for shoppers who come with vehicles and encourages more people to patronize the store, especially during peak shopping periods.

(x) Use of Advanced Technology: Hypermarkets make extensive use of technology in stock control, sales recording, payment processing, and customer service. This improves efficiency, reduces errors, and enhances the overall shopping experience for customers.

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(5(a)
(PICK ANY FIVE)

(i) Performance of the contract by all the parties involved.

(ii) Mutual agreement of the parties to terminate the contract.

(iii) Breach of contract by one of the parties.

(iv) Expiration of the period specified in the contract.

(v) Impossibility of performance due to unforeseen circumstances.

(vi) Death of a party where personal services are involved.

(vii) Bankruptcy or insolvency of a party.

(viii) Operation of law, such as a court order declaring the contract void.

(ix) Frustration of the contract due to changes in circumstances.

(x) Rescission of the contract by either or both parties.


(5bi)
(PICK ANY ONE)
The Sale of Goods Act is a law that governs contracts involving the buying and selling of goods. It defines the rights and obligations of buyers and sellers, specifies the conditions under which ownership of goods can be transferred and provides remedies where either party fails to fulfil the terms of the contract.

OR

The Sale of Goods Act regulates commercial transactions relating to goods. It protects both buyers and sellers by ensuring that goods supplied correspond with their description, are of satisfactory quality and are fit for the purpose for which they are purchased.

(5bii)
(PICK ANY ONE)
The Foods and Drugs Act is a law enacted to control the manufacture, processing, packaging, storage and sale of food, drugs and related products. Its main purpose is to protect consumers from harmful, contaminated, adulterated or fake products that may endanger health.

OR

The Foods and Drugs Act establishes standards for food and pharmaceutical products and prohibits the production or sale of products that are unsafe for human consumption. It helps to safeguard public health and consumer welfare.

(5biii)
(PICK ANY ONE)
The Standard Organization Act establishes an authority responsible for formulating and enforcing standards for goods, services and industrial processes. The Act ensures that products produced locally or imported meet acceptable quality and safety requirements.

OR

The Standard Organization Act is designed to promote quality assurance and consumer protection by setting standards for products and services. It helps to prevent the circulation of substandard goods and encourages uniformity in production.

(5biv)
(PICK ANY ONE)
The Factory, Shops and Offices Act regulates working conditions in factories, shops and offices. It provides for the health, safety and welfare of workers by prescribing standards relating to ventilation, sanitation, lighting, working hours and accident prevention.

OR

The Factory, Shops and Offices Act is intended to protect employees from unsafe and unhealthy working conditions. It requires employers to maintain safe workplaces and provide adequate facilities necessary for the well-being of workers.

(5bv)
(PICK ANY ONE)
The Hire Purchase Act regulates transactions in which a person obtains goods by paying for them in instalments over an agreed period. The hirer is allowed to use the goods immediately, but ownership remains with the seller until the final payment is made.

OR

The Hire Purchase Act protects both the owner and the hirer in instalment purchase agreements. It states the rights and obligations of each party, the procedure for payment and the conditions under which goods may be repossessed if the hirer defaults in payment.

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(6a)
(PICK ANY ONE)
Business management is the process of planning, organizing, directing, coordinating, and controlling the resources and activities of a business in order to achieve its objectives efficiently and effectively.

OR

Business management is the process of organizing and controlling the affairs of a business to ensure the achievement of its goals and objectives.

(6bi)
(PICK ANY ONE)
Economic environment refers to the economic conditions and factors that influence the operations and performance of a business within a country or region.

OR

Economic environment is the set of economic factors and conditions that affect the establishment, operation, and growth of a business in an economy.

(6bii)
(PICK ANY ONE)
Social environment refers to the social and cultural factors within a society that affect the activities and decisions of a business.

OR

Social environment is the collection of social values, cultural practices, beliefs, attitudes, and way of life of people that influence business activities and consumer behaviour.

(6c)
(PICK ANY FOUR)
(i) Human Resources: Human resources are the people who work in a business and contribute their skills, knowledge, and labour to achieve the objectives of the organization. They include managers, supervisors, and other employees.

(ii) Financial Resources: Financial resources refer to the funds available to a business for its operations and expansion. They may come from owners' capital, loans, retained profits, or other sources of finance.

(iii) Material Resources: Material resources are the physical items used in the production of goods and services. They include raw materials, machinery, equipment, tools, and buildings.

(iv) Information Resources: Information resources consist of data and knowledge used for planning, decision-making, and controlling business activities. They include business records, market reports, customer information, and financial statements.

(v) Time Resources: Time resources refer to the period available for carrying out business activities and achieving organizational goals. Proper management of time helps to improve efficiency and productivity.

(vi) Natural Resources: Natural resources are gifts of nature used by businesses in production. They include land, water, minerals, forests, and other natural endowments.

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(7a)
Deregulation

(7b)
(PICK ANY FOUR)
(i) Poor management practices which may result in wrong decisions, lack of supervision and inefficient use of resources.
(ii) Corruption and misappropriation of funds by officials, leading to financial losses and poor service delivery.
(iii) Overstaffing, where the company employs more workers than necessary, thereby increasing operating costs and reducing productivity.
(iv) Poor maintenance of vehicles and equipment, resulting in frequent breakdowns and disruption of services.
(v) Political interference in the operations of the company, preventing management from making sound business decisions.
(vi) Inadequate funding for the replacement of old vehicles and the acquisition of modern equipment.
(vii) Low staff motivation due to poor remuneration and lack of incentives, leading to low productivity.
(viii) Bureaucratic delays in decision-making, causing inefficiency and slow response to operational challenges.
(ix) Lack of competition, which may encourage complacency and poor performance.

(x) Poor planning and weak financial control systems within the organization.

(7c)
Advantages of deregulation:
(PICK ANY TWO)
(i) Improves efficiency: Deregulation encourages organizations to operate more efficiently since they can no longer rely on government subventions and must strive to remain profitable.
(ii) Promotes competition: Businesses compete with one another to attract customers, resulting in improved services and better quality products.
(iii) Encourages investment: Private individuals and corporate organizations are more willing to invest in industries where government restrictions are minimal.
(iv) Reduces government expenditure: The government spends less money on subsidies and financial support for inefficient public enterprises.
(v) Enhances innovation: Firms are encouraged to develop new ideas, technologies, and methods of operation in order to remain competitive.
(vi) Increases productivity: Workers and management become more committed to achieving organizational goals because profitability becomes a major objective.

Disadvantages of deregulation:
(PICK ANY THREE)
(i) Possibility of higher prices: Companies may increase the prices of goods and services when government controls are removed, making them less affordable to consumers.
(ii) Risk of monopoly: Large firms may dominate the market and force smaller competitors out of business, thereby reducing competition.
(iii) Job losses: Some workers may lose their jobs when organizations restructure their operations to cut costs and improve efficiency.
(iv) Exploitation of consumers: Businesses may take advantage of consumers by charging excessive prices or providing poor-quality services where competition is weak.
(v) Unequal distribution of wealth: Deregulation may benefit large investors and business owners more than ordinary citizens, thereby widening income inequality.
(vi) Reduced government control: The government may find it difficult to regulate the activities of firms, leading to abuses and practices that may not be in the public interest.

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(8)