WAEC 2019 Commerce Obj & Essay Answer Now Available

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Answer 5 questions


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-: Actuarial Science
-: Management
-:Chartered Accountancy (C.A)
-:Company Secretary (C.S)

The following points highlight the top five functions of an entrepreneur. The functions are: 1. Decision Making 2. Management Control 3. Division of Income 4. Risk-Taking and Uncertainty-Bearing 5. Innovation.

Function # 1. Decision Making:
The primary task of an entrepreneur is to decide the policy of production. An entrepreneur is to determine what to produce, how much to produce, how to produce, where to produce, how to sell and’ so forth. Moreover, he is to decide the scale of production and the proportion in which he combines the different factors he employs. In brief, he is to make vital business decisions relating to the purchase of productive factors and to the sale of the finished goods or services.

Function # 2. Management Control:
Earlier writers used to consider the management control one of the chief functions of the entrepreneur. Management and control of the business are conducted by the entrepreneur himself. So, the latter must possess a high degree of management ability to select the right type of persons to work with him. But, the importance of this function has declined, as business nowadays is managed more and more by paid managers.

Function # 3. Division of Income:The next major function of the entrepreneur is to make necessary arrangement for the division of total income among the different factors of production employed by him. Even if there is a loss in the business, he is to pay rent, interest, wages and other contractual incomes out of the realised sale proceeds.

Function # 4. Risk-Taking and Uncertainty-Bearing:
Risk-taking is perhaps the most important function of an entrepreneur. Modern production is very risky as an entrepreneur is required to produce goods or services in anticipation of their future demand.

Broadly, there are two kinds of risk which he has to face. Firstly, there are some risks, such as risks of fire, loss of goods in transit, theft, etc., which can be insured against. These are known as measurable and insurable risks. Secondly, some risks, however, cannot be insured against because their probability cannot be calculated accurately. These constitute what is called uncertainty (e.g., competitive risk, technical risk, etc.). The entrepreneur undertakes both these risks in production.

Function # 5. Innovation:
Another distinguishing function of the entrepreneur, as emphasised by Schumpeter, is to make frequent inventions — invention of new products, new techniques and discovering new markets — to improve his competitive position, and to increase earnings.

1ci) Extractive Industry: its the process that involve the extraction of raw materials from the earth to be used by consumers. The extractive industry consists of any operations that remove metals, mineral and aggregates from the earth.

1cii) Construction industry: it is a sector of national economy engaged in preparation of land and construction, alteration, and repair of buildings, structures, and other real property.

1ciii) Manufacturing industry refers to those industries which involve in the manufacturing and processing of items and indulge in either creation of new commodities or in value

1civ) Tertiary Industry: The tertiary industry is the segment of the economy that provides services to its consumers, including a wide range of businesses such as financial institutions, schools and restaurants. It is also known as the tertiary sector

1cii) Construction industry: it is a sector of national economy engaged in preparation of land and construction, alteration, and repair of buildings, structures, and other real property.

-wholesale co-operative

-Retail co-perative

2c *Advantages*
-Encourage of saving
-Democratic in nature
-perpetual Existence
-helps in making member’s product

-problem of loan recovery
-high level of illiteracy
-low dividend..

5a) Newspaper Advertising

ii) Journals/Magazine Advertising

iii) TV Advertising

iv)Radio Advertising

v) internet Advertising

5b) Personal selling is also known as face-to-face selling in which a person who is the salesman tries to convince the customer in buying a product. It is a promotional method by which the salesperson uses his or her skills and abilities in an attempt to make a sale.

5c) *Advantages*

i) Two-Way Communication
ii) Immediate Feedback
iii) Individual Services
iv) Flexibility

(Take 2)

i) It has a Limited Reach

ii) it’s Expensive to run

iii) Potential ethical problems

iv) High Risk

READ MOREWAEC 2019 Mathematics Obj And Essay Answer Now Available

(i)Insufficient Fund: When the amount written on a cheque is more than what the drawer has in his account in the bank.
(ii)The Death Of The Drawer: If the bank receives information about the death of its customer, the bank will not honour any cheque presented on the account of the dead customer, until further notice.
(iii)Irregular Signature: It the signature the drawer signs on the cheque differs from the specimen signature in the bank.
(iv) Non-Existing Account: Sometimes. swindlers who have no bank account but possess false cheque books may issue cheques to those whom they have swindled.
(v)Bankruptcy: if one is judged by a law court to be unable to pay his debts in full. the bank will dishonour any cheque presented, on behalf of that customer.

(i) To Correct Balance Of Payments Deficit
(ii) To Protect Infant Industries
(iii ) To Avoid Unemployment
(iv) Source Of Revenue
(v) The Standard Of Living Argument

(i) It results in increase in agricultural production
(ii) It brings about stabilization in agricultural product pricing
(iii) It improves agricultural output and quality

(i) Open outery: This is a tradition method of trading on commodities. It involves the use of natural voicess, and other means like whistles, bells, trumpets, and flutes, etc to make the availability of certain commodities known to certain buyers.
(ii) Electronic means: This involves the use computer system to trade either nationally or internationally. The computer system enables the traders to do business successfully. The computer provides useful information on how buyers and sellers can communicate on all matters that borders on tradable commodities.

(i) Grading system
(ii) Warehousing
(iii) Clearing system
(iv) Standardizing

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Adverse or deficit balance of payment

(i)Foreign exchange control:Foreign exchange control involves the rationing forign exchange in order to reduc balance of payment deficit
(ii)Expenditure reduction:This is used in order to cut down domestic demand and reduce imports
(iii)Expenditure switching:This involves the manipulationof exchange rates to induce people to patronize locally made goods.
(iv)Fiscal control:This involves the raising of tarriffs ie increase import duties in order to reduce balance f payment deficit
(v)Devaluation:Devaluation cheapens exports and makes imports expensive,thus improving balance of payments
(vi)Reduction of imports: The government can restricts imports by the use of tarriffs,quotas and outright embargo on imports

i)Door to door shipping
ii)Tracking service
iii)Packaging service
iv)Overnight service

*Advantages and *Disadvantages of Railway Transport*

*1. Dependable:*
The greatest advantage of the railway transport is that it is the most dependable mode of transport as it is the least affected by weather conditions such as rains, fog etc. compared to other modes of transport.

*2. Better Organised:*

The rail transport is better organised than any other form of transport. It has fixed routes and schedules. Its service is more certain, uniform and regular as compared to other modes of transport.

*3. High Speed over Long Distances:*
Its speed over long distances is more than any other mode of transport, except airways. Thus, it is the best choice for long distance traffic
*4. Suitable for Bulky and Heavy Goods:*

Railway transport is economical, quicker and best suited for carrying heavy and bulky goods over long distances.

*5. Cheaper Transport:*
It is a cheaper mode of transport as compared to other modes of transport. Most of the working expenses of railways are in the nature of fixed costs. Every increase in the railway traffic is followed by a decrease in the average cost. Rail transport is economical in the use of labour also as one driver and one guard are sufficient to carry much more load than the motor transport.

*6. Safety:*
Railway is the safest form of transport. The chances of accidents and breakdowns of railways are minimum as compared to other modes of transport. Moreover, the traffic can be protected from the exposure to sun, rains, snow etc.

*7. Larger Capacity:*
The carrying capacity of the railways is extremely large. Moreover, its capacity is elastic which can easily be increased by adding more wagons.

*8. Public Welfare:*
It is the largest public undertaking in the country. Railways perform many public utility services. Their charges are based on ‘charge what the traffic can bear’ principle which helps the poor. In fact, it is national necessity.

*9. Administrative Facilities of Government:*
Railways provide administrative facilities to the Government. The defence forces and the public servants drive their mobility primarily from the railways.

*10. Employment Opportunities:*

The railways provide greater employment opportunities for both skilled and unskilled labour. Over 16 lakh persons are depending upon railways for their livelihood.

Although railway transport has many advantages, it suffers from certain serious limitations:

*1. Huge Capital Outlay:*
The railway requires is large investment of capital. The cost of construction, maintenance and overhead expenses are very high as compared to other modes of transport. Moreover, the investments are specific and immobile. In case the traffic is not sufficient, the investments may mean wastage of huge resources.

*2. Lack of Flexibility:*
Another disadvantage of railway transport is its inflexibility. Its routes and timings cannot be adjusted to individual requirements.
3. Lack of Door to Door Service:
Rail transport cannot provide door to door service as it is tied to a particular track. Intermediate loading or unloading involves greater cost, more wear and tear and wastage of time.
The time and cost of terminal operations are a great disadvantage of rail transport.

*4. Monopoly:*
As railways require huge capital outlay, they may give rise to monopolies and work against public interest at large. Even if controlled and managed by the government, lack of competition may breed inefficiency and high costs.

*5. Unsuitable for Short Distance and Small Loads:*
Railway transport is unsuitable and uneconomical for short distance and small traffic of goods.

*6. Booking Formalities:*

It involves much time and labour in booking and taking delivery of goods through railways as compared to motor transport.

*7. No Rural Service:*

Because of huge capital requirements and traffic, railways cannot be operated economically in rural areas. Thus, large rural areas have no railway service even today.

15 cartons of sweets @ N2,000 per carton
= 15 x 2000 = N30,000
25 cartons of milk @ N4000 per carton
= 25 x 4000 = N100,000
154 cartons of sugar @ N3,000 per carton
= 15 x 3000 = N45,000
17 cartons of soap @ N5,000 per carton
= 17 x 5,000 = N85,000

(i) Total cost price
= 30000
= N260,000
Les 10% trade discount = 10% x 260,000
= N26,000
Invoice price = 26,000
– (26,000)/134,000
Less 6% cash discount (8,040)
Cash paid N125,960

(ii) mark up = profit/cost price x 100/1
Therefore 20/100 = profit/125960
Therefore gross profit = 125,960 x 20/100 = N25,192
Selling price = cost price + Gross profit
= 125,960 + 25192 = N151,152

(iii) Net profit
Gross profit – Expense
Total Expanses
Rent and rates = N3,500
Salaries and wages = N8,000
Fuel = N2,000
Electricity = N1,500
= N15,000
Net Profit = 25,192 – 15,000
= N10,192

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