WAEC Commerce 2012 past questions

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

Ten questions from the 2012 WAEC Commerce paper, with answers and explanations. We hold 51 questions from this paper, and the Skolra app has all of them.

WAEC Commerce 2012 questions and answers

1. 1.Which of the following is not an economic grouping
   1. A
      European Union (EU)
   2. B
      Organization of Petroleum Exporting Countries (OPEC)
   3. C
      Economic Community of West African States (ECOWAS)
   4. D
      United Nations Organization (UNO)
      Correct
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   Answer: D

   An economic grouping is formed by countries mainly to promote trade, remove trade barriers, or coordinate economic/monetary policy among member states.

2. 2.The document which is used when a country imposes ad valorem duties is
   1. A
      Bill of lading
   2. B
      Invoice
      Correct
   3. C
      Bill of entry
   4. D
      Certificate of origin
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   Answer: B

   Ad valorem duty means "according to value" - it is a customs duty charged as a percentage of the value of the imported goods (unlike a specific duty, which is a fixed amount per unit/weight).

3. 3.Throwing cargo overboard in order to save a ship from sinking is
   1. A
      Barratry
   2. B
      Salvage
   3. C
      Jettison
      Correct
   4. D
      General average
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   Answer: C

   Jettison is the act of throwing cargo (or part of a ship's equipment) overboard deliberately, in order to lighten the vessel and save the ship and the remaining cargo from sinking during a storm or other emergency at sea. This is a well-known marine insurance term in Commerce.

   So the correct term for throwing cargo overboard to save a sinking ship is jettison.

4. 4.Which of the following is not an insurance of indemnity
   1. A
      Life insurance
      Correct
   2. B
      Fire insurance
   3. C
      Motor insurance
   4. D
      Marine insurance
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   Answer: A

   A contract of indemnity promises to put the insured back in the exact financial position they were in before the loss happened — the insurer pays out only as much as the actual, provable loss, never more.

5. 5.The document issued by the registrar of companies to permit a public limited company to commence business is
   1. A
      Memorandum of association
   2. B
      Certificate of incorporation
   3. C
      Certificate to commence business
      Correct
   4. D
      Articles of association
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   Answer: C

   Certificate to commence business is correct.

   When a public limited company registers with the Corporate Affairs Commission (the registrar of companies), it first receives a certificate of incorporation. That certificate only gives the company legal existence as a separate person — it does not yet allow the company to trade, borrow money, or exercise its business powers.

6. 6.Buildings and machinery used in the running of a business are examples of
   1. A
      Working capital
   2. B
      Current assets
   3. C
      Loan capital
   4. D
      Fixed assets
      Correct
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   Answer: D

   Fixed assets (also called fixed capital) are the long-term resources a business buys to use repeatedly over many years in running the business, not to resell. Buildings and machinery are classic examples: a factory building houses production for decades, and machinery is used again and again to make goods. These items are not meant to be converted into cash quickly.

7. 7.The document which specifies the manufacturer from whom goods are to be imported is
   1. A
      Closed indent
      Correct
   2. B
      Certificate of origin
   3. C
      Bill of lading
   4. D
      Open indent
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   Answer: A

   The closed indent is correct. An indent is the order an importer sends abroad (often through an agent) telling the exporter what to supply. There are two kinds, and WAEC loves to test the difference:

   Closed indent (specific indent): the importer names the exact manufacturer the agent must buy from, along with the brand, quality and other precise details. This is the one that "specifies the manufacturer from whom goods are to be imported."

   So among the four, only the closed indent ties the purchase down to a named manufacturer.

8. 8.Industrial occupation does not involve the
   1. A
      erection of buildings, roads and bridges
   2. B
      extraction of raw materials from the soil
   3. C
      distribution of goods to final consumers
      Correct
   4. D
      conversion of raw materials into finished goods
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   Answer: C

   Commerce groups occupations into three classes: industrial, commercial, and direct service occupations.

   So the correct completion is: industrial occupation does not involve the distribution of goods to final consumers, because distribution is the job of commerce (trade), while industry's job stops at producing the goods.

9. 9.The development of trade in West Africa was aided by the
   1. A
      Introduction of money as a medium of exchange
      Correct
   2. B
      Restriction of trade to within community boundaries
   3. C
      Continuation of trade by barter among communities
   4. D
      Imposition of heavy tolls on travelling traders
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   Answer: A

   The introduction of money as a medium of exchange is what aided the development of trade in West Africa.

10. 10.The relationship between all imports and exports of a country is known as
    1. A
       Balance of trade
       Correct
    2. B
       Balance of payment
    3. C
       Terms of trade
    4. D
       Terms of payment
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    Answer: A

    Balance of trade is the term used for the relationship (the difference) between the total value of all a country's exports and the total value of all its imports over a given period. If exports exceed imports, the country has a favourable (surplus) balance of trade; if imports exceed exports, it has an unfavourable (deficit) balance of trade.

    The tempting wrong answers mix up related but different ideas:

    Balance of payment is broader than imports and exports alone — it is the full record of ALL financial transactions between a country and the rest of the world, including trade in services, loans, grants and capital movements, not just visible goods (imports/exports).

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 51 questions we hold from the 2012 paper, on a timed CBT screen

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