WAEC Commerce 2003 past questions

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

Ten questions from the 2003 WAEC Commerce paper, with answers and explanations. We hold 46 questions from this paper, and the Skolra app has all of them.

WAEC Commerce 2003 questions and answers

1. 1.Which of the following provides a proof posting and that the item has got to the addressee?
   1. A
      Certificate of posting
   2. B
      Cash on delivery
   3. C
      Registered post
      Correct
   4. D
      Recorded delivery
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   Answer: C

   Registered post is the postal service that gives the sender proof on both ends of the journey. When the item is handed in, the post office issues the sender a receipt as proof that it was posted. When the item reaches its destination, the postman requires the addressee (or their representative) to sign for it, and that signature becomes the proof that the item actually got to the addressee.

2. 2.When a public company receives the certificate of incorporation, this implies that?
   1. A
      It has become a legal entity separate from its owners
      Correct
   2. B
      Its shares have been listed and can be traded on the stock exchange
   3. C
      It can now commence trading and borrow money
   4. D
      It has satisfied the minimum share capital requirements for public companies
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   Answer: A

   The certificate of incorporation is issued by the Corporate Affairs Commission (CAC) when a company's registration documents are approved. Receiving it means the company has come into existence as a body corporate — a legal person in its own right, with an identity separate from the shareholders who own it. It can now own property, sue and be sued, and enter contracts in its own name.

   So the correct meaning is simply that the company has been legally formed and recognised as a distinct legal entity.

3. 3.The greatest risk in a business venture is borne by the?
   1. A
      Entrepreneur
      Correct
   2. B
      Creditor
   3. C
      Shareholder
   4. D
      Employee
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   Answer: A

   In commerce, the four factors of production each earn a reward and face a different level of risk: land earns rent, labour earns wages, capital earns interest, and entrepreneurship earns profit.

   So the correct answer is the entrepreneur.

4. 4.A worker who processed garri is engaged in?
   1. A
      Construction industry
   2. B
      Extractive industry
   3. C
      Manufacturing industry
      Correct
   4. D
      Commerce
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   Answer: C

   Processing garri is a manufacturing activity.

   In Commerce, occupations are grouped into industries. Extractive industry is where raw materials are taken directly from nature, for example mining or farming cassava itself. Manufacturing industry is where a raw material is converted or processed into a new, more useful form.

5. 5.Which of the following is taken type of insurance is taken against claims made by staff who get injured while at work?
   1. A
      Employer's liability insurance
      Correct
   2. B
      Fidelity guarantee insurance
   3. C
      Public liability insurance
   4. D
      Product liability insurance
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   Answer: A

   Employer's liability insurance is the correct answer. This is the type of insurance a business takes out to protect itself against claims made by its own employees (staff) who are injured, made ill, or killed while carrying out their work. If a staff member is hurt on the job and sues the company for compensation, this policy covers the employer's liability.

6. 6.A public company has an authorized capital of 60,000 shares, A share costs 150k and the company has issued 36,000 shares. The issued capital would be?
   1. A
      ₦90,000
   2. B
      ₦54,000
      Correct
   3. C
      ₦36,000
   4. D
      ₦24,000
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   Answer: B

   Issued capital is the value of only the shares the company has actually issued (sold/allotted) — not the total it is authorized to issue.

   Here, the par value of each share is ₦1.50 (150 kobo), and the company has issued 36,000 shares, so:

   Issued capital = 36,000 × ₦1.50 = ₦54,000

   So the correct issued capital is ₦54,000.

7. 7.Which of the following tells the customer exactly what has been sold to him, the amount due and any discount granted?
   1. A
      Invoice
      Correct
   2. B
      Statement of account
   3. C
      Receipt
   4. D
      Credit note
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   Answer: A

   The invoice is correct. When a trader sells goods, he sends the customer an invoice listing exactly what was supplied (description and quantity of each item), the price of each, the total amount due, and any trade or cash discount allowed on the sale.

   Receipt is wrong because a receipt is only issued after payment has been made — it proves money was received, but it does not itemise what was sold.

8. 8.Total assets minus current liabilities is equal to a company's?
   1. A
      Capital employed
      Correct
   2. B
      Net worth
   3. C
      Working capital
   4. D
      Net profit
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   Answer: A

   Total assets minus current liabilities equals capital employed.

   On a company's balance sheet, total assets (fixed assets plus current assets) less current liabilities gives the amount of long-term funds tied up in the business, which is the capital employed. This figure is also arrived at from the other side of the balance sheet as the sum of the owner's/shareholders' capital plus any long-term liabilities, which is why it is such an important measure of how much long-term finance a business is using.

9. 9.It is often said that "the consumer is always right" This describes the doctrine of?
   1. A
      Consumer satisfaction
   2. B
      Consumer protection
   3. C
      Caveat emptor
   4. D
      Consumer sovereignty
      Correct
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   Answer: D

   Consumer sovereignty is the correct doctrine. It is the economic principle that consumers, through their buying decisions, ultimately control what gets produced in the market. If buyers reject a product, producers must change or stop producing it; if buyers demand something, producers rush to supply it. This is exactly why people say "the consumer is always right" - the consumer effectively rules (is sovereign over) the market.

10. 10.If the turnover of a business is N16,000 and the cost of goods N12,000, what is the percentage of gross profit on sales?
    1. A
       20%
    2. B
       33⅓%
    3. C
       75%
    4. D
       25%
       Correct
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    Answer: D

    Gross profit = Turnover (Sales) − Cost of goods sold = ₦16,000 − ₦12,000 = ₦4,000.

    The question asks for the percentage of gross profit on sales, so the gross profit is divided by the turnover (sales), not by the cost price:

    Percentage = (Gross profit ÷ Sales) × 100 = (₦4,000 ÷ ₦16,000) × 100 = 25%.

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 46 questions we hold from the 2003 paper, on a timed CBT screen

Every question has the answer and an explanation, in the Skolra app.

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