Quiz 6 of 14

2018 Commerce WAEC Theory Past Questions

Responses

Your email address will not be published. Required fields are marked *

back-to-top
error:

A) Explain four factors that limit the application of the division of labour

Answer

i) Level of craftsmanship of the workers

ii) The process involved in production

iii) Interdependence of workers

iv) Cost of production

v) Simplicity of tasks involved

 

B) Outline three disadvantages of division of labour

Answer

i) It leads to loss in craftsmanship

ii) It leads to monotony of work

iii) It leads to the interdependence of workers

iv) It increases the cost of production

v) It hinders effective mobility of labour

vi) It promotes capital intensive production which leads to unemployment

 

C) Explain five advantages of division of labour

Answer

i) It leads to specialization

ii) It increases production

iii) It saves time

iv) It helps to develop skill

v) It promotes large scale production

vi) It also ensures the production of standard goods

(A) Factors to be considered in setting up a small scale retail business

Answer

  1. Capital
  2. Sources of supply
  3. Proximity to customers location of the business
  4. Types of goods to be sold
  5. Pricing policy
  6. Experience of the owner

 

(B)Functions of the wholesaler to the retailer

Answer

  1. Selling on credit to finance the retailer
  2. Providing the retailer with a variety of goods
  3. Selling in small quantities to the retailer
  4. Helps to transport the goods to the location of the retailer
  5. The wholesaler prepackages goods for the retailer for retailing
  6. Giving technical or expert advice to the retailer on some goods

Differences between public enterprises and public companies

  Public Enterprises Public Companies
I. Formation: By decree or act of parliament By a general law on a corporate matter
II. Ownership: Owned by the government Owned by private individuals
III. Purpose: To provide essential services at little or no cost To make a profit from its services
IV. Management: It is controlled by a board of directors appointed by the government Managed by a board of directors appointed by the owners (shareholders)
V. Sources of funds: Funded mainly by the government through allocations Funded through the sale of shares, loans from banks, re-invested profit e.t.c.

A) Adama’s pure water production company limited

Answer

 

B) Function of departments

Answer

a) Production department:

i) To ensure that the quality of sachet water produced is of regulated standard.

ii) To ensure that the design of the sachet water is maintained and of company quality.

 

b) Marketing department:

i) To ensure effective distribution of the sachet water.

ii) To get feedback on the satisfaction of customers on the product.

 

c) Personnel department:

i) Recruitment of workers.

ii) Training of workers.

 

d) Accounts department:

i) Keeping records of income and expenses.

ii) Periodic audit of company accounts.

iii) Remunerations and entitlement.

 

e) Purchasing department:

i) Acquiring raw materials for production

ii)Stock keeping and storekeeping

A) Explain four ways in which marketing is important to a business

Answer

i) It ensures consumer satisfaction

ii) It reduces wastage through marketing research thereby increasing production

iii) It enhances the movement of goods from the producer to the consumer

iv) It provides information to the consumer on the goods and services available

 

B) State and explain four promotional tools that Jones Ltd can use to promote his business

Answer

i) Publicity

ii) Branding

iii) Personal selling

iv) Public relation

v) Advertising

 

i) Publicity: This involves drawing attention by various means in order to create awareness for a product. An example is the use of loud music with dancers in a crowded area to attract attention to a product or service.

ii) Branding: this involves giving a distinct name to a product. Branding can be done in such ways that the product will be singled out among its competitors. The branding of products during popular events (e.g. World cup) is an example.

iii) Personal selling: Some representatives are engaged to take the products to consumers directly in order to get feedback from such consumers.

iv) Public relation: This involves taking part in community development projects in the environment.

v) Advertising: Creating awareness through the media.

A) Define a second-tier security market

Answer

Second-tier security market is a market for the sale and purchase of existing securities.

 

B) Advantages of second-tier security market

Answer

i) It provides an opportunity for obtaining loans.

ii) It provides an opportunity for buying and selling of shares.

iii) It ensures the survival and development of companies.

iv) It is an avenue of long-term investment.

v) It provides funds for companies

 

C) Requirements for trading in a second-tier security market

Answer

i) Through introduction by the stock exchange.

ii) By private placement.

iii) Through offer for sale.

iv) Through offer for subscription.

A) What is a contract

Answer

A contract is an agreement enforceable by law. It is an agreement between parties that is enforceable by law or intended to have legal status. The foundation of a contract is the agreement between the parties.

 

B) Reasons for consumer protection

Answer

i) The consumer must be protected from the sale of poor quality goods. Standard organisation decree 1971

ii) Consumers often face the problem of false weight and measures. Weight and measures act 1963

iii) The consumer should be properly informed and must be protected from misleading advertisements and descriptions. Trade description act 1968

iv) Consumers should also be protected from the sale of expired goods especially drugs. Food and drug act 1955

v) The consumer must be protected from unreasonably high prices charged by sellers. Price control decree 1970

The following are assets and liabilities to Teason Enterprises Ltd

 

Calculate the values of:

i) Liquid capital

ii) Fixed assets

iii) Capital owned

iv) Working capital

 

i) Liquid capital = cash + stock

= Le6,750 + Le12,000

= Le18,750

 

ii) Fixed asset = Plant and machinery  +  Motor van

=  Le72,000 +  Le31,000

=   Le103,000

 

iii) Capital owned = Asset - Liabilities

Capital owned = Le151,750 - le93,000

= Le58,750

 

iv) Working capital

=    current assets - current liabilities

=    Le48,750 - Le43,000

=    Le5,750

A) Explain four factors that limit the application of the division of labour

Answer

i) Level of craftsmanship of the workers

ii) The process involved in production

iii) Interdependence of workers

iv) Cost of production

v) Simplicity of tasks involved

 

B) Outline three disadvantages of division of labour

Answer

i) It leads to loss in craftsmanship

ii) It leads to monotony of work

iii) It leads to the interdependence of workers

iv) It increases the cost of production

v) It hinders effective mobility of labour

vi) It promotes capital intensive production which leads to unemployment

 

C) Explain five advantages of division of labour

Answer

i) It leads to specialization

ii) It increases production

iii) It saves time

iv) It helps to develop skill

v) It promotes large scale production

vi) It also ensures the production of standard goods

(A) Factors to be considered in setting up a small scale retail business

Answer

  1. Capital
  2. Sources of supply
  3. Proximity to customers location of the business
  4. Types of goods to be sold
  5. Pricing policy
  6. Experience of the owner

 

(B)Functions of the wholesaler to the retailer

Answer

  1. Selling on credit to finance the retailer
  2. Providing the retailer with a variety of goods
  3. Selling in small quantities to the retailer
  4. Helps to transport the goods to the location of the retailer
  5. The wholesaler prepackages goods for the retailer for retailing
  6. Giving technical or expert advice to the retailer on some goods

Differences between public enterprises and public companies

  Public Enterprises Public Companies
I. Formation: By decree or act of parliament By a general law on a corporate matter
II. Ownership: Owned by the government Owned by private individuals
III. Purpose: To provide essential services at little or no cost To make a profit from its services
IV. Management: It is controlled by a board of directors appointed by the government Managed by a board of directors appointed by the owners (shareholders)
V. Sources of funds: Funded mainly by the government through allocations Funded through the sale of shares, loans from banks, re-invested profit e.t.c.

A) Adama’s pure water production company limited

Answer

 

B) Function of departments

Answer

a) Production department:

i) To ensure that the quality of sachet water produced is of regulated standard.

ii) To ensure that the design of the sachet water is maintained and of company quality.

 

b) Marketing department:

i) To ensure effective distribution of the sachet water.

ii) To get feedback on the satisfaction of customers on the product.

 

c) Personnel department:

i) Recruitment of workers.

ii) Training of workers.

 

d) Accounts department:

i) Keeping records of income and expenses.

ii) Periodic audit of company accounts.

iii) Remunerations and entitlement.

 

e) Purchasing department:

i) Acquiring raw materials for production

ii)Stock keeping and storekeeping

A) Explain four ways in which marketing is important to a business

Answer

i) It ensures consumer satisfaction

ii) It reduces wastage through marketing research thereby increasing production

iii) It enhances the movement of goods from the producer to the consumer

iv) It provides information to the consumer on the goods and services available

 

B) State and explain four promotional tools that Jones Ltd can use to promote his business

Answer

i) Publicity

ii) Branding

iii) Personal selling

iv) Public relation

v) Advertising

 

i) Publicity: This involves drawing attention by various means in order to create awareness for a product. An example is the use of loud music with dancers in a crowded area to attract attention to a product or service.

ii) Branding: this involves giving a distinct name to a product. Branding can be done in such ways that the product will be singled out among its competitors. The branding of products during popular events (e.g. World cup) is an example.

iii) Personal selling: Some representatives are engaged to take the products to consumers directly in order to get feedback from such consumers.

iv) Public relation: This involves taking part in community development projects in the environment.

v) Advertising: Creating awareness through the media.

A) Define a second-tier security market

Answer

Second-tier security market is a market for the sale and purchase of existing securities.

 

B) Advantages of second-tier security market

Answer

i) It provides an opportunity for obtaining loans.

ii) It provides an opportunity for buying and selling of shares.

iii) It ensures the survival and development of companies.

iv) It is an avenue of long-term investment.

v) It provides funds for companies

 

C) Requirements for trading in a second-tier security market

Answer

i) Through introduction by the stock exchange.

ii) By private placement.

iii) Through offer for sale.

iv) Through offer for subscription.

A) What is a contract

Answer

A contract is an agreement enforceable by law. It is an agreement between parties that is enforceable by law or intended to have legal status. The foundation of a contract is the agreement between the parties.

 

B) Reasons for consumer protection

Answer

i) The consumer must be protected from the sale of poor quality goods. Standard organisation decree 1971

ii) Consumers often face the problem of false weight and measures. Weight and measures act 1963

iii) The consumer should be properly informed and must be protected from misleading advertisements and descriptions. Trade description act 1968

iv) Consumers should also be protected from the sale of expired goods especially drugs. Food and drug act 1955

v) The consumer must be protected from unreasonably high prices charged by sellers. Price control decree 1970

The following are assets and liabilities to Teason Enterprises Ltd

 

Calculate the values of:

i) Liquid capital

ii) Fixed assets

iii) Capital owned

iv) Working capital

 

i) Liquid capital = cash + stock

= Le6,750 + Le12,000

= Le18,750

 

ii) Fixed asset = Plant and machinery  +  Motor van

=  Le72,000 +  Le31,000

=   Le103,000

 

iii) Capital owned = Asset - Liabilities

Capital owned = Le151,750 - le93,000

= Le58,750

 

iv) Working capital

=    current assets - current liabilities

=    Le48,750 - Le43,000

=    Le5,750