WAEC Commerce 2011 past questions

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

Ten questions from the 2011 WAEC Commerce paper, with answers and explanations. We hold 46 questions from this paper, and the Skolra app has all of them.

WAEC Commerce 2011 questions and answers

1. 1.When consumers engage in actions that express dissatisfaction with the quantity, price and quality of goods available, such action is termed
   1. A
      Boycotting
   2. B
      Consumer sovereignty
   3. C
      Consumer protection
   4. D
      Consumerism
      Correct
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   Answer: D

   Consumerism is the correct term. In Commerce, consumerism refers to the organised actions and reactions of consumers directed at sellers and producers when they are dissatisfied with the quantity, price or quality of the goods and services supplied to them. It covers things like complaints, petitions, agitation for better standards, and pressure for fair pricing.

2. 2.If Karamo who lives in The Gambia imports goods from Senegal and later sells them in Guinea Bissau; Karamo is engaged in
   1. A
      Export trade
   2. B
      Bilateral trade
   3. C
      Import trade
   4. D
      Entrepot trade
      Correct
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   Answer: D

   Entrepot trade is the correct answer.

   Entrepot trade (also called re-export trade) happens when a country or trader imports goods from one country not to consume or use them at home, but to sell them on to a third country, sometimes after sorting, repackaging or minor processing. In this question, Karamo lives in The Gambia, but he does not bring the goods home to sell there. He imports from Senegal and sells in Guinea Bissau, a third country entirely. That middleman role, buying from one country and reselling to another, is the definition of entrepot trade.

3. 3.Rights issue is the
   1. A
      offer of new shares to existing shareholders in proportion to their current holdings, usually below market price
      Correct
   2. B
      sale of a company's shares to the general public for the first time
   3. C
      conversion of a company's debentures into ordinary shares
   4. D
      free distribution of new shares to existing shareholders out of company reserves
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   Answer: A

   Rights issue is a way a company that is already quoted raises extra capital by going back to its existing shareholders, not to the general public. Each shareholder is offered new shares in proportion to the shares he already holds (for example, "1 new share for every 4 held"), and the price is usually fixed below the current market price as an incentive. The shareholder has the "right" to take up the offer or sell that right to someone else; he is not forced to buy.

4. 4.The turnover of a trade is the
   1. A
      rate at which employees leave and are replaced within a given period
   2. B
      total profit realised by a business within a given period
   3. C
      total value of goods sold by a business within a given period
      Correct
   4. D
      total value of goods purchased by a business within a given period
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   Answer: C

   Turnover of a trade means the total value of goods (or services) sold by a business within a given trading period, usually a year. It is a measure of sales activity, not profit.

5. 5.A voluntary association of business executives within a locality is known as
   1. A
      Chamber of Commerce
      Correct
   2. B
      Trade union
   3. C
      Cooperative society
   4. D
      Trade association
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   Answer: A

   Chamber of Commerce is correct. A Chamber of Commerce is a voluntary body formed by business executives and firms operating within a particular town, city or locality. Members come together to promote and protect their common trading and commercial interests, provide a forum where businessmen can meet, settle disputes among members, and present a united voice when dealing with government on matters affecting trade.

6. 6.An overdraft is
   1. A
      An advance payment made by a customer to a seller before goods are delivered
   2. B
      A loan secured against landed property and repaid in fixed instalments over an agreed period
   3. C
      A bank facility that allows a current account holder to withdraw more money than is standing to the credit of the account, up to an agreed limit
      Correct
   4. D
      A sum of money set aside in a savings account to earn interest over time
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   Answer: C

   An overdraft is a short-term credit facility a bank grants to a current account holder, allowing the customer to withdraw more money than is actually in the account, up to a limit the bank has agreed to. Interest is charged only on the amount actually overdrawn, and the facility is usually repayable on demand.

   So the correct description is the one that captures the key feature of an overdraft: withdrawing beyond one's credit balance up to an agreed limit.

7. 7.The essence of adopting marketing concept by a firm is the recognition that goods and services have no values unless they are
   1. A
      sold out completely by the firm that produced them
   2. B
      consumed by the final users for whom they are intended
      Correct
   3. C
      produced in large quantities using modern technology
   4. D
      advertised widely through the mass media
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   Answer: B

   The marketing concept is the business philosophy that a firm exists to identify and satisfy the wants of its customers, not simply to make or move goods. Under this philosophy, a good or service has not truly fulfilled its purpose — has no real value — until it is consumed by the final users for whom it was intended. Producing it, or even selling it, is only a step on the way; the value is only realised when the consumer actually uses it and their want is satisfied.

   So remember: under the marketing concept, the firm's job is not finished at production or at the point of sale — the goods or services only gain value when the final consumer actually uses and is satisfied by them.

8. 8.That portion of the share capital which the company has asked the shareholders to pay for is known as
   1. A
      Issued capital
   2. B
      Called-up capital
      Correct
   3. C
      Authorized capital
   4. D
      Paid-up capital
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   Answer: B

   Called-up capital is the portion of the issued share capital that the company has formally asked (called upon) its shareholders to pay for. A company does not always demand the full value of shares at once; it may call up the money in instalments, and the part it has currently demanded is the called-up capital.

   So the order runs: authorized capital → issued capital → called-up capital → paid-up capital. Since the question is specifically about the amount the company has asked shareholders to pay, the correct term is called-up capital.

9. 9.Liquid capital in a business means the
   1. A
      cash and other assets that can quickly be converted into cash
      Correct
   2. B
      profit retained in the business for future expansion
   3. C
      total amount contributed by the owners of the business
   4. D
      capital invested in buildings, land and machinery
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   Answer: A

   Liquid capital is the part of a business's capital that is either already in cash form or held in assets that can be turned into cash quickly and without loss of value — things like cash at hand, money at the bank, and short-term debtors. A business keeps liquid capital so it can meet its day-to-day obligations (paying workers, suppliers, small bills) as they fall due.

10. 10.A document issued to the public by a company to advertise its share is known as
    1. A
       Certificate of incorporation
    2. B
       Memorandum of association
    3. C
       Prospectus
       Correct
    4. D
       Share certificate
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    Answer: C

    Prospectus is correct. When a public limited liability company wants to raise capital, it issues a prospectus — a document published and circulated to members of the public inviting them to buy (subscribe for) its shares or debentures. It contains details such as the company's objectives, financial history, directors, and the terms of the share offer, so it is essentially an advertisement to attract investors.

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 2011 paper, on a timed CBT screen

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