WAEC Commerce 2018 past questions

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

Ten questions from the 2018 WAEC Commerce paper, with answers and explanations. We hold 48 questions from this paper, and the Skolra app has all of them.

WAEC Commerce 2018 questions and answers

1. 1.The functions of money do not include
   1. A
      Means of production
      Correct
   2. B
      Medium of exchange
   3. C
      Unit of account
   4. D
      Store of value
   Show answerHide answer

   Answer: A

   Money performs four recognised functions in Commerce: it serves as a medium of exchange (used to buy and sell goods and services instead of trekking through the stress of barter), a unit of account (a common measure used to state prices and values, e.g. in naira), a store of value (it can be saved today and still hold worth when spent later), and a standard of deferred payment (it settles debts and credit transactions to be paid in future).

2. 2.The time allowed for loading and unloading a ship at the harbour is?
   1. A
      Demurrage
   2. B
      Average adjustment
   3. C
      Lay days
      Correct
   4. D
      Dispatch money
   Show answerHide answer

   Answer: C

   Lay days is the correct answer. In shipping practice under commerce, lay days (sometimes called "laytime") refer to the number of days agreed in the charterparty during which a ship is allowed to load and unload its cargo at the harbour without any extra charge to the charterer or shipper.

3. 3.An individual employed to act on behalf of another within a specified guideline is
   1. A
      Factor
   2. B
      Agent
      Correct
   3. C
      Broker
   4. D
      Del credere agent
   Show answerHide answer

   Answer: B

   An agent is the correct answer. In commerce, an agent is a person employed by another person (called the principal) to act on his or her behalf, within an agreed scope of authority or specified guideline, in making contracts with third parties. The agent does not act on personal initiative outside that authority — everything done must be within the guideline given by the principal.

4. 4.Which of the following documents is used when goods are being sent by a common carrier
   1. A
      Airway bill
   2. B
      Bill of lading
   3. C
      Consignment note
      Correct
   4. D
      Certificate of origin
   Show answerHide answer

   Answer: C

   The consignment note is the correct document. A common carrier is a transporter (such as a road haulage firm or railway company) that carries goods for members of the public for a fee. When goods are handed over to a common carrier, the sender fills a consignment note, which states the sender's and receiver's names and addresses, a description of the goods, and the terms of carriage. It serves as evidence of the contract of carriage and as a receipt that the carrier has accepted the goods.

5. 5.Which of the following is a source of short term finance
   1. A
      Issue of debentures
   2. B
      Bank overdraft
      Correct
   3. C
      Mortgage loan
   4. D
      Issue of ordinary shares
   Show answerHide answer

   Answer: B

   Bank overdraft is the correct answer. It is a short-term source of finance because the business can only withdraw more than it has in its account for a short period, and the bank can demand repayment at short notice, usually within one year. Businesses use it to cover temporary cash flow gaps, such as paying suppliers or wages while waiting for customers to pay.

6. 6.Which of the following statement is true of a debenture?
   1. A
      It represents a unit of ownership capital in the company
   2. B
      It is a loan to the company which attracts a fixed rate of interest
      Correct
   3. C
      It entitles the holder to a share of the company's profit as dividend
   4. D
      It gives the holder voting rights at the company's general meetings
   Show answerHide answer

   Answer: B

   A debenture is a certificate of loan, not a certificate of ownership. When a company needs long-term funds, it can borrow from the public by issuing debentures. The debenture holder is therefore a creditor of the company, not a member or owner, and the company must pay the holder a fixed rate of interest on the loan whether or not the company makes a profit.

7. 7.A transfer of authority from a superior officer to his subordinate in an organisation is?
   1. A
      Supervision
   2. B
      Span of control
   3. C
      Delegation of authority
      Correct
   4. D
      Decentralisation
   Show answerHide answer

   Answer: C

   Delegation of authority is correct. It is the process by which a superior officer (a manager or boss) passes part of his own authority down to a subordinate, so the subordinate can take decisions and act on specific matters on the superior's behalf. The superior still carries overall responsibility for the result, but day-to-day decision-making power on that matter now sits with the junior officer.

8. 8.Which of the following functions is not performed by the export promption council
   1. A
      Providing intending exporters with information on foreign markets
   2. B
      Collecting duties on goods meant for export
      Correct
   3. C
      Organizing trade fairs and exhibitions for exporters
   4. D
      Advising the government on export policies and incentives
   Show answerHide answer

   Answer: B

   The (Nigerian) Export Promotion Council exists to develop, diversify and promote Nigeria's export trade, not to collect revenue.

   Its real functions include advising government on export policies and incentives, organizing trade fairs/exhibitions and trade missions, running export management training, and giving intending exporters information on foreign markets, documentation and quality standards.

9. 9.A contract terminated by the occurrence of an event which makes performance impossible is discharged by?
   1. A
      Breach
   2. B
      Performance
   3. C
      Agreement
   4. D
      Frustration
      Correct
   Show answerHide answer

   Answer: D

   Frustration is correct. In the law of contract, a contract is discharged by frustration when, after the contract has been formed, an unforeseen event occurs that makes performance impossible, illegal, or radically different from what the parties originally agreed — without either party being at fault. Examples include destruction of the subject matter, a change in the law, death or incapacity of a party whose personal service was essential, or an outbreak of war. Because nobody caused the event and nobody can now perform, the law releases both parties from their obligations.

10. 10.If the opening stock of Ali ltd is N40,000, cost of goods sold is N48,000 and closing stock is N24,000, its rate of turn over will be?
    1. A
       1.5 times
       Correct
    2. B
       0.75 times
    3. C
       2 times
    4. D
       1.2 times
    Show answerHide answer

    Answer: A

    Rate of stock turnover = Cost of Goods Sold ÷ Average Stock.

    First find the average stock: (Opening stock + Closing stock) ÷ 2 = (₦40,000 + ₦24,000) ÷ 2 = ₦64,000 ÷ 2 = ₦32,000.

    Then divide the cost of goods sold by this average stock: ₦48,000 ÷ ₦32,000 = 1.5 times.

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 48 questions we hold from the 2018 paper, on a timed CBT screen

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

Download for WindowsDownload for Mac

About the app · Skolra for Windows · Skolra for Mac