WAEC 2025 COMMERCE ANSWER


COMMERCE OBJ
1-10: CACCACCCCB
11-20: DABDBACDDB
21-30: AACBDCCADA
31-40:CCBCDADACC
41-50: CBAADBCDDC

(1a)
(PICK ANY ONE)
Manufacturing involves the production of goods by transforming raw materials into finished products. It takes place in factories or industrial plants.
Construction involves the building of structures such as roads, bridges, and buildings. It takes place at the site where the project is being built.

OR

Manufacturing is the process of turning raw materials into finished goods in a factory setting while Construction is the process of building physical structures like buildings, roads, or bridges at specific sites.

(1b)
(PICK ANY FOUR)
(i) Convenience: E-commerce allows customers to shop anytime and from anywhere using internet-enabled devices.

(ii) Wider Market Reach:
Businesses can reach a global audience beyond their physical location.

(iii) Lower Operational Costs: It reduces the need for physical stores, staff, and utility bills, thereby lowering expenses.

(iv) Faster Buying Process: Customers can easily search for products, place orders, and make payments quickly.

(v) Availability of Information: Detailed product information, reviews, and comparisons are readily available to help buyers make informed decisions.

(vi) Improved Customer Experience: Features such as personalized recommendations and easy returns enhance user satisfaction.

(1c)
(PICK ANY FOUR)
(i) Buying and Selling: Commerce involves the buying of goods from producers and the selling of those goods to consumers or other businesses.

(ii) Transportation: Commerce facilitates the movement of goods from one place to another, ensuring they reach the consumers or markets where they are needed.

(iii) Warehousing: Goods are stored in warehouses until they are ready for sale or further distribution, ensuring a steady supply of products.

(iv) Insurance: Insurance protects businesses and individuals from financial losses resulting from unforeseen events like accidents or theft.

(v) Banking and Finance: Commerce includes providing financial services such as loans, deposits, and other banking services that help businesses operate effectively.

(vi) Advertising and Promotion: Advertising and promotion functions ensure that goods and services are made known to potential customers, helping to boost sales.

(vii) Risk-bearing: Commerce involves managing risks such as financial losses, product failure, or changes in demand, ensuring that businesses can operate even in uncertain conditions

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(2ai)
(PICK ANY ONE)
Cartel is an association of independent businesses or organizations formed to control production, pricing, and marketing of goods to reduce or eliminate competition.
In the other hand, Consortium is a group of independent companies or organizations that come together to undertake a specific project or business activity, often temporarily, pooling their resources and expertise.


OR

A cartel is a group of independent businesses or producers that collaborate to control prices, limit supply, or prevent competition in a particular market WHILE a consortium is an alliance of two or more organizations or businesses that come together to undertake a joint project, usually large and complex, while remaining legally independent.

(2aii)
(PICK ANY ONE)
Holding Company is a parent company that owns enough voting stock in another company to control its policies and management without being involved in day-to-day operations.
In the other hand, Subsidiary Company is a company that is controlled by another company (the holding company) through majority shareholding.

OR

A holding company is a business entity that owns a controlling interest (more than 50% of shares) in one or more other companies but does not actively participate in their day-to-day operations WHILE A subsidiary company is a business that is controlled or owned (more than 50% of its shares) by another company, known as the holding or parent company, but it operates independently in terms of daily management

(2bi)
(PICK ANY FOUR)
(i) Personal Savings
(ii) Bank Loans
(iii) Loan from family and friends
(iv) Government Grants or Subsidies
(v) Trade Credit
(vi) Retained Earnings


(2bii)
(PICK ANY FOUR)
(i) Loss of Control: Saul may fear losing autonomy over his business decisions.

(ii) Profit Sharing: Profits would now be shared instead of kept solely.

(iii) Trust Issues: Saul may not trust Abu fully or fear conflicts.

(iv) Differences in Management Style: Incompatibility in running the business.

(v) Liability for Partner’s Actions: Fear of being held responsible for Abu’s mistakes.

(vi) Unclear Terms: Lack of clear agreement or fear of being cheated.

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(3a)
The organization formed by Country X is Export Promotion Council (EPC)

(3b)
(PICK ANY FOUR)
(i) Market Research: Conduct market research to identify potential foreign markets for local products.

(ii) Trade Fairs and Exhibitions: Organize trade fairs and exhibitions to showcase local products in foreign markets.

(iii) Export Training: Provide training and capacity-building programs for local businesses to enhance their export capabilities.

(iv) Market Access: Facilitate market access for local products by negotiating trade agreements and resolving trade barriers.

(v) Product Promotion: Promote local products through advertising, branding, and other marketing initiatives.

(vi) Export Financing: Provide financing options or guarantees to support local businesses in exporting their products.

(vii) Regulatory Compliance: Assist local businesses in complying with foreign regulatory requirements and standards.

(viii) Trade Negotiation: Participate in trade negotiations to secure favorable trade terms and conditions for local businesses.

(3c)
(PICK ANY FIVE)
(i) Increased Market Access: Foreign trade provides access to new markets and customers, increasing sales and revenue opportunities.

(ii) Diversification: Foreign trade allows Country X to diversify its economy and reduce dependence on domestic markets.

(iii) Comparative Advantage: Country X can specialize in producing goods and services in which it has a comparative advantage, increasing efficiency and productivity.

(iv) Economic Growth: Foreign trade can stimulate economic growth by increasing investment, employment, and income.

(v) Innovation: Foreign trade can facilitate the transfer of technology, knowledge, and innovation, enhancing domestic industries.

(vi) Increased Competition: Foreign trade can promote competition, leading to improved product quality, reduced prices, and increased consumer choice.

(vii) Resource Allocation: Foreign trade allows Country X to allocate its resources more efficiently, focusing on producing goods and services in which it has a comparative advantage.

(viii) Globalization: Foreign trade is an essential aspect of globalization, enabling Country X to participate in the global economy and benefit from international trade.

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(4a)
(PICK ANY FIVE)
(i) Personalized Customer Service: Small retailers often know their customers personally and can offer individual attention, making customers feel valued and appreciated.

(ii) Flexibility and Adaptability: They can quickly change their product mix, pricing, or services to meet changing customer demands or market trends.

(iii) Lower Operating Costs: These businesses usually have fewer staff, smaller spaces, and lower overhead expenses, allowing them to operate efficiently even with lower sales volumes.

(iv) Niche Market Focus: Many small retailers specialize in specific products or services, attracting customers looking for unique or hard-to-find items.

(v) Proximity to Customers: Being located within communities or residential areas makes them easily accessible to customers, saving time and transport costs.

(vi) Customer Loyalty: Through trust, personal service, and community presence, small retailers often build strong loyalty, leading to repeat business.

(vii) Owner’s Direct Involvement: The owners usually manage the day-to-day operations themselves, ensuring better control over quality, decision-making, and customer relationships.


(4b)
(PICK ANY FIVE)
(i) Export Promotion: The government can encourage the production and export of goods by providing incentives such as tax relief, subsidies, and export grants to local producers. This increases foreign exchange earnings.

(ii) Import Restriction: The government can impose tariffs, quotas, and bans on certain imported goods to reduce the volume of imports and conserve foreign exchange.

(iii) Devaluation of Currency: By lowering the value of the local currency in relation to foreign currencies, exports become cheaper and more competitive, while imports become more expensive, thereby reducing imports and increasing exports.

(iv) Encouraging Foreign Investment: Attracting foreign direct investment (FDI) can help bring in foreign exchange and reduce pressure on the BOP.

(v) Import Substitution: Promoting the local production of goods that are usually imported reduces the demand for foreign goods and helps conserve foreign exchange.

(vi) Seeking Foreign Aid or Loans: A country can obtain financial assistance from international organizations or friendly nations to finance the deficit temporarily.

(vii) Tourism Development: Developing the tourism sector can attract foreign visitors who spend money in the local economy, thereby increasing foreign exchange earnings.

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(5a)
Seasonal discount

(5b)
PICK ANY FOUR)
(i) To boost sales during off-peak (low demand) seasons.
(ii) To reduce excess or old stock.
(iii) To maintain steady cash flow throughout the year.
(iv) To attract and retain customers.
(v) To encourage bulk purchases during low sales periods.
(vi) To stay competitive in the market.

(5c)
(PICK ANY FIVE)
(i) Collect import and export duties (tariffs).
(ii) Prevent smuggling and enforce trade regulations.
(iii) Inspect goods to ensure compliance with national laws.
(iv) Generate revenue for the government.
(v) Maintain statistics on international trade.
(vi) Ensure proper documentation of goods entering or leaving the country.
(vii) Protect local industries by regulating imports.
(viii) Prevent the importation of prohibited or harmful goods.

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(6a)
(PICK ANY FIVE)
(i) Central Bank
(ii) Commercial Bank
(iii) Merchant Bank
(iv) Development Bank
(v) Mortgage Bank
(vi) Microfinance Bank
(vii) Agricultural Bank

(6b)
(PICK ANY FIVE)
(i) Open Market Operations (OMO): The Central Bank buys or sells government securities in the open market to control the money supply. Selling securities reduces liquidity, while buying increases it, thereby influencing the lending capacity of commercial banks.

(ii) Cash Reserve Requirement (CRR): The Central Bank mandates that a specific percentage of commercial banks’ total deposits must be kept as reserves. Increasing the CRR reduces the funds available for banks to lend, while decreasing it allows more lending.

(iii) Liquidity Ratio: This is the ratio of liquid assets to total deposits that banks must maintain. By adjusting the liquidity ratio, the Central Bank ensures that banks maintain enough cash or easily convertible assets to meet short-term obligations.

(iv) Interest Rate Policy: The Central Bank sets the minimum interest rate (often called the monetary policy rate) that commercial banks should follow. Adjusting interest rates can help control inflation, borrowing, and consumer spending.

(v) Moral Suasion: This refers to the Central Bank’s use of persuasion and dialogue to influence the behavior of commercial banks without using legal force. For instance, it may advise banks to restrict loans to certain sectors or maintain sound lending practices.

(vi) Licensing and Supervision: The Central Bank has the power to grant or revoke banking licenses. It also supervises and examines banks to ensure they comply with financial regulations and maintain stability in the banking system.

(vii) Directives and Guidelines: The Central Bank issues rules, circulars, and guidelines that banks must follow. These may cover areas such as capital adequacy, credit allocation, foreign exchange operations, and risk management.

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(7a)
(PICK ANY ONE)
Marketing is the process of identifying, anticipating, and satisfying customers’ needs and wants through the creation, promotion, and distribution of goods and services in order to make a profit.

OR

Marketing is the activity of promoting and selling products or services, including market research and advertising, to attract and retain customers.

(7b)
(PICK ANY THREE)
(i) Carrying out marketing research

(ii) Involving in product planning and development

(iii) Selling the company's products;

(iv) Determining the price of products

(v) Determining the channel of distribution;

(vi) Involving in personal selling

(vii) Ensuring credit control

(viii) Engaging in advertising

(ix) Carrying out sales forecasting

(x) Offering customer support services (After-sales services)

(xi) Involving in public relations

(xii) Involving in merchandising

(xiii) Carrying out packaging and labeling activities

(xv) Engaging in product branding.

(7c)
(i) Customer Service:
Customer service refers to the assistance and support provided by a business to its customers before, during, and after a purchase. It includes answering inquiries, handling complaints, providing product guidance, and ensuring customer satisfaction. Good customer service builds trust and long-term customer relationships.

(ii) Sales Promotion:
Sales promotion consists of short-term incentives designed to stimulate immediate interest and encourage the purchase of a product or service. Examples include discounts, coupons, free samples, buy-one-get-one-free offers, and contests. It is used to boost sales, attract new customers, and clear excess inventory.

(iii) Exhibition:
An exhibition is a planned public display where companies present their products and services to potential customers, business partners, and investors. It provides an opportunity to demonstrate new products, collect market feedback, network with industry stakeholders, and increase brand visibility.

(iv) After-Sales Service:
After-sales service includes all the support provided to a customer after the purchase of a product. This may involve installation, user training, regular maintenance, repairs, and warranties. Good after-sales service enhances customer satisfaction, builds trust, and encourages repeat business.

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(8)