WAEC Commerce 2023 past questions

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

Ten questions from the 2023 WAEC Commerce paper, with answers and explanations. We hold 42 questions from this paper, and the Skolra app has all of them.

WAEC Commerce 2023 questions and answers

1. 1.Which of the following is not a form of sales promotion?
   1. A
      Advertising
      Correct
   2. B
      Coupon
   3. C
      Free samples
   4. D
      Price discount
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   Answer: A

   Advertising is not a form of sales promotion — it is a separate, independent element of the promotion mix on its own.

   In Commerce, the promotion mix is made up of four distinct tools: advertising, personal selling, sales promotion, and publicity/public relations. Each one works differently, and sales promotion specifically refers to short-term incentives designed to push an immediate increase in sales.

2. 2.Which of the following is not a type of security?
   1. A
      Overdraft
      Correct
   2. B
      Debenture
   3. C
      Share
   4. D
      Stock
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   Answer: A

   Overdraft is not a type of security. It is simply a banking facility that allows a current account holder to withdraw more money than is in the account, up to an agreed limit, and it must be repaid with interest like any other loan.

3. 3.An example of after-sales services is
   1. A
      Warehousing of the goods
   2. B
      Free repair and maintenance of the product
      Correct
   3. C
      Insurance of the goods in transit
   4. D
      Advertising of the product
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   Answer: B

   After-sales service is any support a seller or manufacturer gives a customer after the purchase has already been made, to keep the product working and the customer satisfied. Common examples in the commerce syllabus are free repair and maintenance, installation, replacement of faulty parts, and honouring a guarantee/warranty.

4. 4.A voluntary association of businessmen who are not in the same line of business is a
   1. A
      Chamber of Commerce
      Correct
   2. B
      Trade association
   3. C
      Cooperative society
   4. D
      Trade union
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   Answer: A

   A Chamber of Commerce is correct. It is a voluntary body made up of businessmen and businesswomen drawn from different, unrelated lines of business (a baker, a textile dealer, a transporter, a banker, and so on) who come together within a town, city or country to promote and protect the general interests of trade and commerce, and to speak to government with one voice on behalf of the business community.

5. 5.The term 2%/15 net 30 represents a
   1. A
      Seasonal discount
   2. B
      Quantity discount
   3. C
      Cash discount
      Correct
   4. D
      Trade discount
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   Answer: C

   2%/15 net 30 is a credit term written on an invoice. It is read as: the buyer may deduct a 2% discount if the invoice is settled within 15 days; otherwise, the full (net) amount is due within 30 days.

   So the correct reading of "2%/15 net 30" is a cash discount term.

6. 6.A disadvantage of privatization is that
   1. A
      It leads to an increase in the price of goods and services
      Correct
   2. B
      It promotes more efficient management of enterprises
   3. C
      It increases the revenue available to government
   4. D
      It encourages competition among business enterprises
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   Answer: A

   Privatization is the transfer of ownership and control of a business enterprise from government to private individuals or organizations. Once an enterprise passes into private hands, the people running it are driven mainly by the profit motive, unlike government, whose major objective in owning such enterprises is service to the public.

7. 7.The management function that is concerned with coordinating business resources efficiently is
   1. A
      Controlling
   2. B
      Directing
   3. C
      Planning
   4. D
      Organizing
      Correct
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   Answer: D

   Organizing is the management function concerned with assembling and coordinating the human, financial, material and other resources of a business so that they work together efficiently to achieve the set goals. It involves grouping activities, allocating resources, and arranging people and materials in a structure that makes efficient use of everything the business has.

   Since the question specifically asks for the function that coordinates business resources efficiently, organizing is the correct answer.

8. 8.Operating a state owned enterprise with the intention of making more profit is
   1. A
      Nationalization
   2. B
      Privatization
   3. C
      Commercialization
      Correct
   4. D
      Indigenization
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   Answer: C

   Commercialization is correct. It means running a state-owned (government) enterprise on a commercial, profit-oriented basis - government keeps ownership, but the enterprise is managed like a private business to generate more revenue/profit and reduce reliance on subsidies.

9. 9.An advantage of advertising is that
   1. A
      It increases the price of goods passed on to the final consumer
   2. B
      It creates awareness and informs the public about available goods and services
      Correct
   3. C
      It eliminates competition among producers of similar goods
   4. D
      It leads to the production of substandard goods to cut costs
   Show answerHide answer

   Answer: B

   Correct answer: An advantage of advertising is that it creates awareness and informs the public about available goods and services.

   Advertising is one of the aids to commerce. Its main benefit is that it tells consumers what goods and services exist, where to get them, and what they are used for. This helps producers reach a wider market and helps consumers make informed buying choices.

   Why the other options are wrong:

   Saying advertising increases the price of goods passed on to the final consumer describes a disadvantage of advertising, not an advantage — the cost of running adverts is often added to the selling price.

10. 10.The function of money that makes it generally acceptable is
    1. A
       Medium of exchange
       Correct
    2. B
       Standard for deferred payment
    3. C
       Store of value
    4. D
       Unit of account
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    Answer: A

    Medium of exchange is correct. This is the function that gives money its "general acceptability" — everyone in the economy agrees to take money in payment for goods and services, which is exactly what frees trade from the limits of barter (you no longer need a "double coincidence of wants" before a swap can happen).

    The distractors are the other functions of money, which candidates often mix up with acceptability:

    Store of value describes money's ability to hold its purchasing power so it can be saved and used later — it is about preserving wealth over time, not about being accepted in exchange.

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 42 questions we hold from the 2023 paper, on a timed CBT screen

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