WAEC Commerce 2013 past questions
Ten questions from the 2013 WAEC Commerce paper, with answers and explanations. We hold 47 questions from this paper, and the Skolra app has all of them.
WAEC Commerce 2013 questions and answers
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1.The ancillary to trade which ensures that people gain access to facts pertaining to goods is
- AWarehousing
- BInsurance
- CTransportation
- DAdvertisingCorrect
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Answer: D
Advertising is correct. In Commerce, the aids (ancillaries) to trade each remove one specific hindrance that stands between producers and consumers. Advertising is the ancillary service whose job is to inform the public about the existence, qualities, uses and price of goods — in other words, it gives people access to the facts about goods so they can decide what to buy.
- A
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2.Which of the following protects consumers against poor quality foods
- AStandards Organisation of Nigeria
- BConsumer Protection Council
- CManufacturers Association of Nigeria
- DNational Agency for Food and Drug Administration and Control (NAFDAC)Correct
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Answer: D
The National Agency for Food and Drug Administration and Control (NAFDAC) is correct. NAFDAC was set up specifically to regulate and control the manufacture, importation, distribution, sale and use of food, drugs, cosmetics, chemicals, medical devices and packaged water in Nigeria. Protecting consumers from poor quality (and unsafe) food is exactly its core duty.
- A
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3.An insurance principle that prevents a person from insuring what he does not stand to lose financially if the insured risk occurs is
- AIndemnity
- BSubrogation
- CUtmost good faith
- DInsurable interestCorrect
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Answer: D
Insurable interest is correct. This is the principle that says a person can only insure something if he would suffer a real financial loss should the insured risk actually happen. It stops people from taking out policies on property or lives in which they have no financial stake, which would otherwise turn insurance into pure gambling.
- A
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4.The process of winding up a public limited company by a court order is known as
- AVoluntary winding up
- BMembers' voluntary winding up
- CCompulsory winding upCorrect
- DCreditors' voluntary winding up
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Answer: C
Compulsory winding up is the correct answer. This is the type of winding up that happens when a court orders a public limited company to be dissolved, usually on the petition of a creditor, a shareholder, or the regulatory authority (such as when the company is unable to pay its debts or has acted against the public interest).
- A
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5.Which of the following is a feature of supermarkets?
- ASelf-service by the customerCorrect
- BFree home delivery of all goods bought
- CBargaining for lower prices with the customer
- DSale of goods strictly on credit terms
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Answer: A
Self-service is the defining feature of a supermarket. Customers walk round the shelves, pick the pre-packaged goods they want into a trolley or basket, and pay for everything together at a checkout point. There are no sales assistants attending to individual customers item by item, which is exactly what keeps running costs (and so prices) low in a supermarket.
- A
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6.The use of current account in business is convenient because
- Awithdrawals can be made by cheque at any time without giving noticeCorrect
- Bit attracts a fixed rate of interest on the balance kept
- Ca minimum balance must always be maintained before it can be opened
- Dthe bank requires a long period of notice before any withdrawal
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Answer: A
Correct answer: withdrawals can be made by cheque at any time without giving notice.
A current account is the account every serious business keeps because it is built for frequent, everyday transactions. The account holder can write a cheque and pay a supplier, a worker, or a bill as many times as the business needs, in whatever amount the balance (or agreed overdraft) allows, and the bank does not need to be informed beforehand. That freedom to withdraw on demand is exactly what makes a current account convenient for running a business.
- A
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7.A tariff refers to
- Aa fixed limit placed on the quantity of a particular good that may be imported
- Ba tax imposed by government on goods imported into or exported out of a countryCorrect
- Ca total ban placed on the importation of certain goods into a country
- Da grant given by government to local producers to lower their cost of production
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Answer: B
A tariff is a tax (duty) that government places on goods as they enter or leave a country — mostly on imports. Government uses it to raise revenue and to make imported goods more expensive than locally made ones, so that home industries can compete and grow.
So the correct meaning of tariff is the tax imposed on imported (or exported) goods.
- A
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8.Which of the following is an advantage of a sole trader?
- AThe business has limited capital because only one person provides the funds
- BThe owner's personal property can be seized to settle business debts
- CThe business ends automatically whenever the owner dies or retires
- DThe owner can make and carry out decisions quickly without consulting anyone elseCorrect
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Answer: D
A sole trader (sole proprietorship) is a business owned and run by one person. Because there is only one owner, that person does not need to consult partners, a board of directors, or shareholders before acting.
- A
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9.Public enterprises are financed mainly by
- ASubventions and budgetary allocations from the governmentCorrect
- BDonations from philanthropic individuals and organisations
- CSale of shares and debentures to the general public
- DLoans obtained from commercial banks
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Answer: A
Public enterprises (also called parastatals or public corporations) are business organisations that are owned, funded and controlled by the government on behalf of the citizens, usually to provide essential goods and services such as electricity, water, railways and postal services.
So the correct answer is that public enterprises are financed mainly by government subventions and budgetary allocations.
- A
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10.A person who undertakes responsibility for forming a new company is
- AAn underwriter
- BA promoterCorrect
- CA liquidator
- DA director
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Answer: B
A promoter is the person who takes on the job of bringing a new company into existence. The promoter conceives the business idea, carries out the feasibility studies, brings together the people who will subscribe to the memorandum of association, arranges for the registration (incorporation) of the company, and makes the preliminary contracts needed before the company legally comes into being.
So, going by the stages of forming a company (Promotion, Registration, Capital subscription, and Commencement of business), the very first stage, promotion, is carried out by the promoter.
- A
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 47 questions we hold from the 2013 paper, on a timed CBT screen
Every question has the answer and an explanation, in the Skolra app.