2024 NECO COMMERCE: 2024 NECO Commerce (Objective & Essay) Questions and Answers (retake) (8917)

 (1)

(i) Drawer Is An individual or firm that issues or signs a draft instructing the drawee to pay a specified sum of money to, or to the order of, a named person (payee), or to bearer.

(ii) Drawee is the party that has been ordered by the drawer to pay a certain sum of money to the person presenting the check (the payee). 

(iii) A payee is a party in an exchange of goods or services who receives payment. The payee is paid by cash, check, or another transfer medium by a payer.

(iv) Stale Cheque Is a cheque that was written too long ago and that a bank may refuse to pay when someone tries to get the stated amount.

(v) Dishonoured cheques also Known As spelled check are cheques that a bank on which is drawn declines to pay.

(3)

(i)offer

(ii)Acceptance

(iii)Awareness

(iv)Consideration

(v)Capacity

-Explanation-

(i)Offer; Contract terms, or the "why" of the agreement, are expressed in the offer, which specifies what each party promises to do or not do under the contract. The offer should be properly expressed so that all parties are aware of their responsibilities and expectations. The contract may not be precise enough to be enforced by a court if the offer is not specific enough.

(ii)Acceptance; Acceptance means the recipient of the offer agrees to the terms of the deal. Consent is required for acceptance. In other words, it's illegal for someone to accept an offer when they're signing a contract with a gun pointed at them. Other alternatives to acceptance are rejecting a contract or submitting a counteroffer.

(iii)Awareness; Contract signers must be capable of fulfilling their obligations under the agreement. A person who is old enough and mentally competent enough to sign a contract is eligible to do so.

(iv)Consideration: When two parties agree to a contract, they must agree on a consideration. A party may receive something other than money in exchange for signing a contract. Hence the term "payment" is ambiguous when used to describe consideration.

(v)Capacity; If a person has the legal capacity to enter into a contract, it means that they have the legal ability to do so. Capacity also entails that a person must 'copied from e x p o c o d e . n e t free' be legally competent. The legal intent of a contract relates to the intentions of the parties involved. While friends and family members may agree on a tentative agreement, it is not meant to be binding. As a result, they don't expect one person to sue the other if the other person doesn't fulfill their end of the bargain.

(4a)

-TABULATE-

HOME TRADE:

{CHOOSE ANY FIVE}

(i)Goods are moved within the same country

(ii) One currency is used

(iii) There is no language barrier in home trade

(iv) less documentation is required in home trade

(v)The same social standard,rules and regulations are in use

(vi) Transport cost is lower in home trade

(vii) Goods move freely within the country 

FOREIGN TRADE:

{CHOOSE ANY FIVE}

(i) Goods are moved beyond geographical boundaries

(ii) Different currencies are used in foreign trade

(iii) More complex documentation is required

(iv) There is language barrier in foreign trade

(v) Different social standards,rules and regulations are in use

(vi) Transport cost is higher in foreign trade

(vii) Foreign trade is subject to restrictions.

(4b)

{CHOOSE ANY FIVE}

(i)Source of Revenue: International trade is a source of revenue for nations of the world. Nigeria derives 90% of its revenue from the sale of crude oil to other countries. Taxes can also be imposed on exported and imported goods.

(ii)Promotion of economic development: International trade helps countries to gain technical knowledge which accelerates economic developments e.g. farmers in Nigeria can now import tractors and harvesters to practice large scale farming.

(iii)Provision of employment opportunities: As a result of 'copied from e x p o c o d e . n e t free' international trade contacts, foreign investors can establish firms in sister countries which will create employment opportunities for its citizens.

(iv)It leads to international specialisation: Through international trade, countries will specialise in the production of goods for which they have comparative advantage over others. This will make prices of such goods cheaper.

(v)Increase in world output: When countries specialise in the production of goods and services in which they have comparative advantage and where full utilisation of resources is made, the world output will increase.

(vi)Availability of variety of goods: Through foreign trade, wide variety of goods are made available. West African countries can import cars, electronics, shoes and equipment from other countries. New products are produced for new markets.

(5a)

Retailing is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and then sells in smaller quantities to consumers for a profit.

(5b)

(i)Retail Wholesalers

(ii)Manufacturer Wholesalers

(iii)Agents and Brokers

(iv)Merchant Wholesalers

-Explanation-

(i)Retail Wholesalers: Retail wholesalers are those who, besides selling goods to the retailers also deal directly with the ultimate consumers. In this way, they are able to establish direct contact with the consumers, so as to get prompt information relating to their preferences. Besides, it enables them to reduce the distribution costs and increase their margin of profit.

(ii)Manufacturer Wholesalers: These wholesalers undertake manufacture of goods as well as their distribution directly to the retailers. They usually do not deal in goods manufactured by other firms. By combining the activities of manufacturing and distribution, they are in a position to minimize their overhead expenses on transporta­tion, warehousing, etc.

(iii)Agents and Brokers: These are also middlemen and serve as a link between the manufacturers and the retailers. Normally, they function on behalf of the manufacturer, their task being to find buyers for the products of the manufacturer. 

(iv)Merchant 'copied from e x p o c o d e . n e t free' Wholesalers: This type of wholesalers undertake no business other than the wholesale one. They purchase goods produced by various manufacturers in bulk and sell them to the retailers. They can also be called ‘pure wholesaler’. They also perform various marketing functions.

(6i)

Share; share is a single unit of ownership in a company or financial asset. It is essentially an exchangeable piece of value of a company which can fluctuate up or down, depending on several different market factors. Companies divide capital into shares as a means of raising capital. Shares are also known as stocks.

(6ii)

Debenture; debenture is a type of debt instrument that is not backed by any collateral and usually has a term greater than 10 years. Debentures are backed only by the creditworthiness and reputation of the issuer. Both corporations and governments frequently issue debentures to raise capital or funds.

(6iii)

Gilt-edged; The gilt-edged market is the market in government securities or the securities guaranteed (as to both principal and interest) by the government. The term gilt-edged means 'of the best quality”. It has come to be reserved for government securities as they do not suffer from the risk of default. In other words they are high-grade bonds issued by certain national governments and private organizations. It is considered as Market for safe (such as Government) securities.

(6iv)

Capital market; Capital market is a place where buyers and sellers indulge in trade (buying/selling) of financial securities like bonds, stocks, etc. The trading is undertaken by participants such as individuals and institutions. Capital market trades mostly in long-term securities.

(6v)

Money market; The money 'copied from e x p o c o d e . n e t free' market refers to trading in very short-term debt investments. At the wholesale level, it involves large-volume trades between institutions and traders. At the retail level, it includes money market mutual funds bought by individual investors and money market accounts opened by bank customers.

(8)

(i)Get Organized

(ii)Keep Detailed Records

(iii)Analyze Your Competition

(iv)Understand the Risks and Rewards

(v) Be Creative

-Explanation-

(i)Get Organized; To achieve business success you need to be organized. It will help you complete tasks and stay on top of things to be done. A good way to be organized is to create a to-do list each day. As you complete each item, check it off your list. 

(ii)Keep Detailed Records; All successful businesses keep detailed records. By doing so, you’ll know where the business stands financially and what potential challenges you could be facing. Just knowing this gives you time to create strategies to overcome those challenges. 

(iii)Analyze Your Competition; Competition breeds the best results. To be successful, you can’t be afraid to study and learn from your competitors. After all, they may be doing something right that you can implement in your business to make more money.

(iv)Understand the Risks and Rewards; The key to being successful is taking calculated risks to help your business grow. A good question to ask is “What’s the downside?” If you can answer this question, then you know what the worst-case scenario is. This knowledge will allow you to take the kinds of calculated risks that can generate tremendous rewards.

(v)Be Creative; Always be looking for ways to improve your business and make it stand out from the competition. Recognize that you 'copied from e x p o c o d e . n e t free' don’t know everything and be open to new ideas and different approaches to your business.