WAEC Commerce past questions and answers

Checked by the Skolra question team · Last updated 23 October 2026

WAEC Commerce: 1,038 objective past questions from 19 papers between 1989 and 2023, each with the answer and an explanation. Here are ten.

How the WAEC Commerce paper is set. On WAEC's 2026 timetable for private candidates, Paper 1 (objective) takes 50 minutes and Paper 2 (essay) 2 hours. If the question paper on the day gives another time, follow the question paper. The questions here are from Paper 1.

1. 1.A common carrier is
   1. A
      A carrier who transports only his own firm's goods from one branch to another, never for outside customers
   2. B
      A firm that specializes in warehousing and storing goods for exporters in return for a storage fee
   3. C
      A carrier who picks and chooses which customers' goods he will convey, and may refuse anyone he does not wish to serve
   4. D
      A person or firm that undertakes, for a fee, to convey goods or passengers belonging to members of the public, and is legally bound to accept any goods offered to him for carriage
      Correct
   Show answerHide answer

   Answer: D

   A common carrier is a person or firm that holds himself out to the general public as ready to convey goods or passengers, belonging to anyone who pays, from one place to another for a fee. Because he offers this service to the public at large, the law binds him to accept any goods offered to him for carriage, once the owner pays the stated charge and the goods are of a lawful kind he is equipped to carry. He cannot simply refuse a customer he dislikes; that is exactly what separates him from a private carrier.

2. 2.The reduction in the value of a country's currency in relation to others is?
   1. A
      Devaluation
      Correct
   2. B
      Inflation
   3. C
      Revaluation
   4. D
      Depreciation
   Show answerHide answer

   Answer: A

   Devaluation is the official reduction in the value of a country's currency in relation to the value of other currencies. A country's monetary authority takes this step (often under a fixed or managed exchange rate system) so that its exports become cheaper abroad and its imports become more expensive at home, which can help correct a trade deficit.

3. 3.The relationship between partners is stipulated in the
   1. A
      Memorandum of association
   2. B
      Deed of partnership
      Correct
   3. C
      Articles of association
   4. D
      Certificate of incorporation
   Show answerHide answer

   Answer: B

   A partnership is formed by agreement among the partners, and that agreement is written down in a document called the deed of partnership (also called the partnership agreement or articles of partnership). It stipulates how the partners will relate with one another: capital contributed by each partner, how profits and losses are shared, the duties and powers of each partner, how a partner can retire or be admitted, and how disputes are settled.

4. 4.The amount the assured receives if he decides to discontinue the life policy is known as
   1. A
      Bonus
   2. B
      Maturity value
   3. C
      Surrender value
      Correct
   4. D
      Paid-up value
   Show answerHide answer

   Answer: C

   Surrender value is the correct answer.

   When the assured (the person insured under a life policy) chooses to stop the policy before its full term is completed, the insurance company pays out the accumulated value built up on the policy at that point. This payment is called the surrender value — the policyholder is "surrendering" the policy back to the insurer in exchange for this amount.

5. 5.Which of the following is a feature of sole proprietorship?
   1. A
      Unlimited liability for all business debts
      Correct
   2. B
      Separate legal entity distinct from the owner
   3. C
      Perpetual succession despite the death of the owner
   4. D
      Limited liability restricted to the capital invested
   Show answerHide answer

   Answer: A

   Unlimited liability for all business debts is the correct feature of a sole proprietorship.

   A sole proprietorship is owned and run by one person who is not legally separate from the business. If the business cannot pay its debts, the owner's personal property (house, car, savings) can be seized to settle them, because the law does not draw a line between the owner and the business.

6. 6.An organization formed mainly by traders on the same line of business is known as
   1. A
      Chamber of commerce
   2. B
      Cartel
   3. C
      Trade association
      Correct
   4. D
      Cooperative society
   Show answerHide answer

   Answer: C

   A trade association is an organization formed mainly by traders or business people who deal in the same line of business (for example, bakers, textile dealers, or motor spare-parts sellers) in order to protect and promote their common interests, share information, set standards, and speak with one voice to government and the public.

7. 7.Which of the following would not affect the form of a business unit
   1. A
      The method used to advertise the goods or services
      Correct
   2. B
      The amount of capital required to start the business
   3. C
      The nature of the goods or services to be provided
   4. D
      The extent of liability the owner is willing to accept
   Show answerHide answer

   Answer: A

   Correct answer: the method used to advertise the goods or services.

   The form of a business unit means the legal/ownership structure an entrepreneur chooses - sole proprietorship, partnership, private or public limited liability company, or cooperative. Several real factors push an owner toward one form or another:

   Amount of capital required - a business needing huge capital (e.g. a manufacturing company) usually has to become a limited liability company to raise funds by selling shares, while a small retail shop can remain a sole proprietorship. This is a genuine factor, so it is a distractor here.

8. 8.Voyage policy is issued when goods are insured?
   1. A
      against a particular risk, no matter the journey made
   2. B
      for both a stated period and a particular journey at once
   3. C
      for a particular journey, from one named place to another
      Correct
   4. D
      for a fixed period of time, usually twelve months
   Show answerHide answer

   Answer: C

   A voyage policy is a marine insurance policy under which goods are insured for a particular journey — from one named port or place to another. The cover begins when the voyage starts and ends when the voyage ends, no matter how many days, weeks or months the journey actually takes.

   So when a policy is tied strictly to completing one journey from point A to point B, it is the voyage policy.

9. 9.Who the following sells among securities in anticipation of a fall in price?
   1. A
      Stag
   2. B
      Bull
   3. C
      Jobber
   4. D
      Bear
      Correct
   Show answerHide answer

   Answer: D

   Bear is correct. On the Stock Exchange, a bear is a speculator who sells securities in the expectation that their price will soon fall, so he can later buy them back at the lower price and pocket the difference as profit. The operator "bears down" the market by selling.

   So only the bear's strategy matches "sells in anticipation of a fall in price."

10. 10.Which of the following pieces of information would be found in a typical debit note
    1. A
       The amount by which the buyer was undercharged on the original invoice
       Correct
    2. B
       The value of goods returned by a customer to the seller
    3. C
       The cash discount available for prompt settlement
    4. D
       The trade discount allowed to the buyer on the order
    Show answerHide answer

    Answer: A

    Correct answer: The amount by which the buyer was undercharged on the original invoice.

    A debit note is sent, usually by the seller, when the original invoice has already gone out but it turns out the buyer was charged too little — perhaps the wrong price was used, the quantity was understated, or a cost like carriage or special packing was left off. The debit note refers back to the invoice number and tells the buyer that an extra amount is now owed. In short: a debit note INCREASES what the buyer owes.

The questions come from past JAMB, WAEC and NECO papers. We use software to help write the answer options and explanations, and every answer is checked twice before it goes on the site. How we check

Spotted a wrong answer? Tell us from the app or on the contact page and we check it.

Practise all 1,038 WAEC Commerce questions in the Skolra app

Every question has the answer and an explanation. Practise by year, or sit a timed WAEC paper on the CBT screen.

Download for WindowsDownload for Mac

About the app · Skolra for Windows · Skolra for Mac