WAEC Commerce 1997 past questions

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

Ten questions from the 1997 WAEC Commerce paper, with answers and explanations. We hold 95 questions from this paper, and the Skolra app has all of them.

WAEC Commerce 1997 questions and answers

1. 1.When a company raises additional capital by selling shares directly to the public through insurance companies or investment houses, this is known as
   1. A
      Introduction
   2. B
      Offer for sale
      Correct
   3. C
      Private placement
   4. D
      Rights issue
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   Answer: B

   Offer for sale is the method described. Here, the company does not approach the public on its own; instead it sells (allots) the whole block of shares to an issuing house or investment/merchant bank (sometimes acting alongside insurance companies as underwriters), and that issuing house then resells the shares to members of the public, usually at a slightly higher price to cover its own margin and the cost of underwriting the risk.

2. 2.The reorganization of public enterprises to operate as profit-making ventures is known as
   1. A
      Indigenization
   2. B
      Commercialization
      Correct
   3. C
      Nationalization
   4. D
      Privatization
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   Answer: B

   Commercialization is the reorganization of public enterprises so that they are run as profit-making ventures, charging economic (realistic) prices for their goods and services and aiming to break even or make a surplus, just like a private business would. The key point is that government still owns the enterprise; only its mode of operation changes, from a subsidised, service-oriented body to one managed on strict commercial, profit-driven lines.

   So because the question is only about reorganizing an enterprise to operate on a profit basis, without a change of ownership, the correct term is commercialization.

3. 3.The fastest means of sending a printed message from Lagos to London is through
   1. A
      Facsimile (Fax) machine
      Correct
   2. B
      Telex
   3. C
      Telephone
   4. D
      Telegram
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   Answer: A

   Facsimile (Fax) machine is the correct answer. A fax machine scans a printed document in one place and transmits an exact copy of it — words, signatures, diagrams and all — down the telephone line to a receiving fax machine, which prints it out almost instantly. That is exactly what is needed to send a printed message from Lagos to London in the shortest possible time.

4. 4.Which of the following is not a function of the Nigerian Ports Authority?
   1. A
      Pilotage of vessels into and out of the harbour
   2. B
      Provision of warehousing facilities for cargo
   3. C
      Dredging and maintenance of the harbour channel
   4. D
      Construction of ocean-going vessels
      Correct
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   Answer: D

   The Nigerian Ports Authority (NPA) is the statutory body that owns, manages and maintains Nigeria's seaports. Its real functions include piloting ships into and out of the harbour, dredging the channel to keep it deep enough for vessels, providing berths and cargo-handling equipment, and providing warehousing/transit sheds for goods awaiting clearance.

5. 5.If Ade issues a Union Bank cheque to Chukwu, the Union Bank is the
   1. A
      Endorser
   2. B
      Drawee
      Correct
   3. C
      Drawer
   4. D
      Payee
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   Answer: B

   A cheque has three parties, and each has a fixed name in commerce.

   So the correct term for Union Bank's role is drawee — the bank directed to pay the sum stated on the cheque.

6. 6.Food and Drugs Act, Weights and Measure Act, Standards Organization of Nigeria, etc are aimed at
   1. A
      regulating the daily trading activities of the Nigerian Stock Exchange
   2. B
      protecting consumers from substandard and harmful goods
      Correct
   3. C
      ensuring government earns more revenue from imported goods
   4. D
      protecting local manufacturers from foreign competition
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   Answer: B

   Protecting consumers from substandard and harmful goods is correct. The Food and Drugs Act, the Weights and Measures Act, and the Standards Organisation of Nigeria (SON) are all consumer-protection institutions. The Food and Drugs Act controls the quality and safety of food, drugs and related items; the Weights and Measures Act stops traders from cheating buyers with inaccurate scales or measures; and SON sets and enforces quality standards so that goods sold or imported into Nigeria meet a safe minimum standard. Put together, their common aim is to shield the buying public from fraud, adulteration, short measure and dangerous products.

7. 7.The law stipulating that labels should contain full details about a product is known as the
   1. A
      Trade Descriptions Act
   2. B
      Sale of Goods Act
   3. C
      Merchandise Marks Act
      Correct
   4. D
      Weights and Measures Act
   Show answerHide answer

   Answer: C

   The Merchandise Marks Act is correct. This is the consumer-protection law that compels manufacturers and traders to put full and true particulars on the label of a product — things like the name of the maker, the place of origin, the contents or composition, and the quantity. Its purpose is to stop sellers from hiding or misrepresenting what is inside the pack, so the buyer knows exactly what he is paying for.

8. 8.An association that mobilizes the savings of members and channels them to needy members is known as
   1. A
      Insurance company
   2. B
      Commercial bank
   3. C
      Cooperative thrift and credit society
      Correct
   4. D
      Building society
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   Answer: C

   A cooperative thrift and credit society is a group whose members agree to save regularly into a common fund. That pooled fund is then given out as loans to members who are in need, often at little or no interest. This matches the description exactly: it mobilizes the savings of members and channels them to needy members.

   So the correct answer is the cooperative thrift and credit society.

9. 9.Which of the following takes the shortest time and is the most accurate means of communication?
   1. A
      Telex
      Correct
   2. B
      Letter
   3. C
      Telegram
   4. D
      Telephone
   Show answerHide answer

   Answer: A

   Telex is correct. A telex machine is a teleprinter linked by a dedicated network: the sender types the message and it is received and printed almost instantly at the other end, anywhere in the world. Because the receiver gets an exact typed copy (not a spoken version), there is no risk of mishearing or misquoting — so telex is both fast (shortest time) and accurate (a permanent, exact written record).

10. 10.Which of the following is responsible for the maintenance of the quality of goods produced
    1. A
       Nigerian Chamber of Commerce and Industry
    2. B
       Federal Ministry of Trade
    3. C
       Manufacturers Association of Nigeria (MAN)
    4. D
       Standards Organisation of Nigeria (SON)
       Correct
    Show answerHide answer

    Answer: D

    The body charged with maintaining the quality of goods produced in Nigeria is the Standards Organisation of Nigeria (SON). SON sets and enforces national standards for locally manufactured and imported goods, tests products, certifies those that meet specification (the SON mark), and inspects factories to ensure goods released to the market are safe and of acceptable quality.

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 95 questions we hold from the 1997 paper, on a timed CBT screen

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