WAEC GCE Commerce Obj And Essay/Theory Solution Questions and Answer – JAN/FEB 2018 Expo Runz.
Opening stock 4 closing stock/2
55000 + 70000/2
8b) current working capital
Current assets – current habilities
(70,000 + 40,000) – 70,000
= 110,000 – 70,000
Cost of goods sold
Opening stock + purchase – closing stock
55000 + 15000 – 70,000
205,000 – 70,000
4a)A commodities exchange is an exchange where various commodities and derivatives products are traded. …
Commodities exchanges usually trade futures contracts on commodities, such as trading contracts to receive something, say corn, in a certain month.
others are cocoa, coffee, milk
i) Commodity exchanges are generally utilised for wholesale dealings in agricultural commodities or the products of some important primary industries like lumbering.
ii)A commodity exchange provides a convenient place where the members can meet at fixed hours and transact business in a commodity according to a certain well established rules and regulations
iii)As organised markets commodity exchanges establish and enforce rules and regulations with a view to facilitating trade on sound lines.
iv)Collecting and Disseminating Market In formation
v)Grading of Commodities
vi)Settling Disputes through Arbitration
Problems or Disadvantages of Trade by Barter
Problems of Double Coincidence of wants: This means looking for someone who is in need of what you have and at the same time has what you need. This can amount to a very serious problem.
No Fixed rate of Exchange: There is the problem of exchange rate determination between two products. Different rates of exchange have to be determined to cover every transaction before it can take place, e.g. How much of apples can you exchange for a cup of Rice.
Wastage of Time and Effort: Barter system leads to waste of time and energy because one has to search for somebody to exchange the goods with.
Problems of Indivisibility: Many goods cannot be divided into small convenient units because they are heavy and indivisible so it does not encourage divisibility.
Problems Created by Bulkiness of some Goods: Some of the good to be exchanged are so bulky that one finds it difficult to carry them about.
No Room for Deferred Payment: In Trade by Barter, there is no room for deferred payment. One cannot collect certain goods and hope to pay another day. Barter requires immediate settlement.
It Discourages Borrowing and Lending: Borrowing and lending under trade by barter is practically impossible as there is no standard unit of measurement.
It Discourages Large Scale Production:As a result of the difficulties in the system of exchange by barter, it therefore leads to people producing goods only for themselves and that of their immediate family. In other words, Trade by barter encourages self sufficiency hence it limits specialization of labour.
Difficulty in Storing Wealth: The barter system, unlike money does not encourage storage of wealth. It is difficult to store wealth or value, especially where perishable goods like fresh tomatoes and onions are involved.
i)Documents and Reports: Most businesses have some sort of productivity software which typically includes a word processor and spreadsheet application. These two
programs allow businesses to create reports, memos, tutorials and even colorful ads for company events.
ii)Education: Businesses use computers to help educate employees on software, company policy, standard procedures and safety.
Instead of hiring teachers, computers can be used to educate employees at their own pace or through an online webinar with live questions and answers. This form of education fits the busy schedules of businesses without sacrificing the quality of the education.
iii)Research: From learning more about the competition to discovering what customers really want, research isn’t as difficult as it once was, thanks to
computers. Search engines, forums, social networks and industry specific websites provide businesses with a wealth of information and research data.
iv)Storage: Instead of filing cabinets, businesses are able to store millions of files using computers and servers. Data can be stored centrally for easy access from multiple computers or stored locally for individual use. Computerized storage saves space and provides a far more efficient organization strategy
v)Accounting: Accounting without computers presents a high risk for human error. Accounting software allows businesses to simply input their financial data and instantly see gains and losses. All necessary tax reports are available the moment the data is entered. Using computers for invoicing, managing expenses and calculating payroll is vital for ensuring financial data is as accurate as possible.
i)Housing Building Society
iv)Agricultural Credit Society
v)Non-agricultural credit Society.
Survival – a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis.
ii)Profit maximization theory is based on profits and profits are a must for the survival of any business. …
Various studies have been carried out to explain with empirical evidence, the factors driving profit and loss in a business enterprise
iii)Growth – Industries experience cycles of economic growth and contraction based on many factors. These include the overall health of the markets, consumer preferences and even seemingly unrelated
iv)Innovation is the invention, improvement, and commercialization of new products, processes, and services. Innovation is the primary driver of U.S. competitiveness, wage and job growth.
v)Social responsibility is the idea that businesses should balance profit-making activities with activities that benefit society; it involves developing businesses with a positive relationship to the society in which they operate
i)BILL OF EXCHANGE: A written, unconditional order by one party (the drawer) to another (the drawee) to pay a certain sum, either immediately (a sight bill) or on a fixed date (a term bill), for payment of goods and/or services
ii)A bank draft is more likely to be
accepted when purchasing goods abroad because the foreign exporter knows that even if the company purchasing the goods
goes bankrupt, it will still be paid
iii) A traveler’s cheque is a medium of
exchange that can be used in place
of hard currency. … They were generally used by people on vacation in foreign countries instead of cash, as many businesses used to accept traveler’s cheques as currency.
iv) Electronic transfer is Any transfer of funds from one account to another that occurs electronically. An electronic transfer can take various forms, including a transfer made between an
individual’s various accounts (move from savings to checking), from one individual’s account to a corporation’s account for an automatic reoccurring bill payment, or via a credit or debit card swiped at a retail location to pay for a