WAEC Commerce (OBJ & Essay) Questions and Answers 2026

*WAEC COMMERCE OBJECTIVE ANSWER* 1–10: B C B D A B D C C B 11–20: A A A D D D D A A D 21–30: A D A C B B D C A B 31–40: B B B C A D C B D B 41–50: D C C C C A A A A D *USE THIS IF URS IS RESHUFFLED 👇* 1. B – Major divisions of commerce are trade and auxiliaries to trade. 2. C – E-commerce uses computers (internet) to conduct business. 3. B – Drilling for oil is a primary occupation (extractive). 4. D – Rent is reward to land. 5. A – Sole proprietorship faces unlimited liability. 6. B – Participating preference shareholders receive extra dividend beyond fixed rate. 7. D – Firms working together on a project form a consortium. 8. C – A private company needs a trading certificate to start operations. 9. C – Debenture holder receives interest (not profit). 10. B – Distribution of goods is NOT a function of a trade association. 11. A – Similar businesses cooperate to form a trade association. 12. A – Tax can determine type of employment (after-tax income considerations). 13. A – Insufficient capital limits division of labour. 14. D – Working capital = Current assets – Current liabilities = (5,000 + 1,000) – 3,000 = 6,000 – 3,000 = D 3,000? 15. D – Current assets = D5,000 (cash) + D1,000 (stock) = D6,000. 16. D – Current liabilities = Bank overdraft = D3,000. 17. D – Terms of trade = rate at which imports exchange for exports. 18. A – Consular invoice helps calculate dock dues. 19. A – Central Bank issues treasury bills. 20. D – Bonus issue = shares from retained earnings. 21. A – Accumulated value paid at end of life assurance contract. 22. D – Stock exchange deals in shares (securities). 23. A – Hypermarkets feature bulk purchase. 24. C – Commission = amount payable to agent based on value of goods sold. 25. B – Vending machines are used in retail business. 26. B – Dock warrant = receipt for goods kept in warehouse. 27. D – Bonded warehouse stores dutiable goods. 28. C – Motherboard is an internal computer component. 29. A – Store of value allows farmers to sell produce and buy later. 30. B – Development bank finances purchase of equipment. 31. B – Contribution = principle when multiple insurers liable for one claim. 32. B – Informative advertising suitable for new products. 33. B – Television demonstrates product use effectively. 34. C – Sales promotion = inducing buyers with gifts. 35. A – Written communication suitable for management reports. 36. D – Rescission terminates a contract. 37. C – Registration regulates businesses. 38. B – Deregulation increases investment. 39. D – Demographic environment concerns age structure. 40. B – Provision of pipe-borne water is responsibility to community. 41. D – Penetration is NOT a marketing mix (4Ps: Product, Price, Place, Promotion). 42. C – Copyright protects author's exclusive rights. 43. C – Standard Organization Act covers faulty goods replacement. 44. C – Span of control = number of subordinates managed directly. 45. C – Futures price = agreed price for later delivery. 46. A – Attending to customers' needs is a management function. 47. A – Privatization = transfer of government ownership to individuals. 48. A – Improvement of revenue base is aim of commercialization. 49. A – Lake Chad Basin Commission treaty signed in 1964. 50. D – Togo is a member of ECOWAS. 1–10: B C B D A B D C C B 11–20: A A A A D D D A A D 21–30: A D A C B B D C A B 31–40: B B B C A D C B D B 41–50: D C C C C A A A A D *REACT, SHARE AND FORWARD TO EVERYONE ❤️🔥* *WAEC COMMERCE (PAPER 2 – ESSAY)* *COMPLETE ANSWERS – QUESTIONS 1, 2, 3, 4, 5, 6, 7 & 8* =========================================================== QUESTION 1 =========================================================== (a) Distinguish between commerce and e-commerce (2 marks) Commerce refers to the exchange of goods and services between buyers and sellers through traditional physical means, such as shops, markets, and face-to-face transactions. E-commerce refers to the buying and selling of goods and services over the internet using electronic platforms, such as websites, mobile apps, and online payment systems. (b) Explain the following types of e-commerce: (i) Business to customer (B2C) (2 marks) Business to customer e-commerce involves transactions between a business and individual consumers. The business sells products or services directly to end-users through an online platform. Examples include Amazon, Jumia, and online retail stores where customers purchase items for personal use. (ii) Government to business (G2B) (2 marks) Government to business e-commerce involves transactions between the government and businesses. This includes government agencies purchasing goods and services from businesses through online procurement systems, or businesses submitting tax returns and obtaining licences through government portals. Examples include online tax filing systems and government tender portals. (c) State two advantages and three disadvantages of e-commerce (5 marks) Advantages: 1. Convenience – Customers can shop from anywhere at any time without visiting physical stores. 2. Wider market reach – Businesses can sell to customers across the country and around the world without establishing physical branches. Disadvantages: 1. Security risks – Online transactions are vulnerable to hacking, fraud, and identity theft. 2. Lack of personal interaction – Customers cannot touch, feel, or try products before purchasing. 3. Delivery delays and costs – Products must be transported, which may take time and incur shipping charges. =========================================================== QUESTION 2 =========================================================== (a) Define division of labour (2 marks) Division of labour is the breaking down of a production process into smaller, specialised tasks. Each worker or group of workers performs a specific task repeatedly, rather than producing the whole product from start to finish. (b) State three features of capital (3 marks) 1. Capital is man-made – It is produced by human effort and is not a gift of nature. 2. Capital is productive – It is used to produce other goods and services, generating income. 3. Capital is durable – It lasts for a long period and can be used repeatedly in production. (c) Explain the following occupations giving four examples of each: (i) Extraction (4 marks) Extraction occupations involve the removal of natural resources from the earth or sea. Workers in these occupations obtain raw materials that are used in production. Examples: 1. Farming (crop cultivation) 2. Fishing (catching fish from rivers and seas) 3. Mining (extracting minerals such as gold, coal, or iron ore) 4. Forestry (cutting down trees for timber) (ii) Manufacturing (4 marks) Manufacturing occupations involve the processing and conversion of raw materials into finished or semi-finished goods. These activities take place in factories and industries. Examples: 1. Textile manufacturing (producing cloth from cotton) 2. Food processing (making flour from wheat or juice from fruits) 3. Automobile manufacturing (assembling vehicles from parts) 4. Furniture making (producing chairs and tables from wood) =========================================================== QUESTION 3 =========================================================== (a)(i) Name the type of cooperative society formed (1 mark) The type of cooperative society formed is a Producers' Cooperative Society (also called a Farmers' Cooperative Society). (ii) State four features of the cooperative society (4 marks) 1. Voluntary membership – Any person can join freely without coercion. 2. Democratic control – Each member has one vote regardless of the amount of capital contributed (one member, one vote). 3. Profit sharing – Profits are distributed to members in proportion to their patronage (transactions with the society), not according to capital invested. 4. Service orientation – The primary goal is to serve members rather than maximise profit. (b) State five advantages of a private company (5 marks) 1. Limited liability – Shareholders are only liable for the unpaid value of their shares, protecting personal assets. 2. Continuity – The company has a separate legal existence and continues to exist even if shareholders change. 3. Ability to raise large capital – Shares can be sold to friends, family, and business associates to raise funds. 4. Specialised management – Directors and managers can be employed to run the business professionally. 5. Transferability of shares – Shares can be transferred from one person to another, though with some restrictions in a private company. =========================================================== QUESTION 4 =========================================================== (a) State five reasons hawkers continue to operate despite the existence of supermarkets (5 marks) 1. Convenience – Hawkers are found on streets and in neighbourhoods, making it easy for customers to buy without travelling to a supermarket. 2. Low operating costs – Hawkers have minimal expenses (no rent, electricity, or large staff), allowing them to sell at lower prices. 3. Flexible payment options – Hawkers often allow customers to bargain and may offer credit to regular customers. 4. Personalised service – Hawkers build personal relationships with customers and may offer home delivery. 5. No need for formal procedures – Customers can buy in small quantities without the formalities of supermarket checkout and queues. (b) State five features of a hypermarket (5 marks) 1. Large size – Hypermarkets are very large retail outlets, often covering thousands of square metres. 2. Wide product range – They sell a vast variety of goods, including groceries, electronics, clothing, furniture, and household items. 3. Self-service – Customers select goods themselves and pay at checkout points. 4. One-stop shopping – Customers can buy all their needs in one place, including food, clothing, and household appliances. 5. Located in suburban areas – Hypermarkets are usually located on the outskirts of cities where land is cheaper and parking is available. =========================================================== QUESTION 5 =========================================================== (a) List five conditions that could lead to the dissolution of a contract (5 marks) 1. Performance – When both parties have fully performed their obligations under the contract. 2. Agreement – When both parties agree to end the contract. 3. Breach – When one party fails to fulfil their contractual obligations. 4. Frustration – When an unforeseen event makes performance impossible or illegal. 5. Lapse of time – When the contract is for a fixed period and that period ends. (b) Explain the following Acts: (i) Sale of Goods Act (2 marks) The Sale of Goods Act regulates contracts for the sale of goods. It defines the rights and duties of buyers and sellers, including matters such as transfer of ownership, delivery, acceptance, and remedies for breach. (ii) Foods and Drugs Act (2 marks) The Foods and Drugs Act regulates the production, sale, and distribution of food and drugs. It ensures that products are safe, pure, and properly labelled, protecting consumers from adulterated or harmful substances. (iii) Standard Organization Act (2 marks) The Standard Organization Act establishes the Standards Organisation of Nigeria (SON). It sets quality standards for products and services, ensures compliance, and certifies products that meet approved standards. (iv) Factory, Shops and Offices Act (2 marks) This Act regulates working conditions in factories, shops, and offices. It covers issues such as working hours, health and safety, ventilation, sanitation, and the employment of children. (v) Hire Purchase Act (2 marks) The Hire Purchase Act regulates transactions where goods are hired out with an option to purchase. It protects both the hirer and the owner, especially regarding the rights of the hirer, repossession, and payment terms. =========================================================== QUESTION 6 =========================================================== (a) Define business management (2 marks) Business management is the process of planning, organising, directing, and controlling the resources of a business to achieve its objectives efficiently and effectively. It involves coordinating human, financial, material, and other resources. (b) Explain the following terms: (i) Economic environment (2 marks) The economic environment refers to the external economic factors that affect a business, such as inflation, interest rates, exchange rates, unemployment, income levels, and government fiscal and monetary policies. These factors influence consumer spending and business profitability. (ii) Social environment (2 marks) The social environment refers to the cultural, demographic, and social factors that affect a business, such as population growth, age distribution, education levels, lifestyle changes, and social attitudes. These factors influence consumer preferences and labour availability. (c) List and explain four resources of a business (4 marks) 1. Human resources – The employees, managers, and workers who contribute their skills, knowledge, and labour to the business. They are the most important resource for any organisation. 2. Financial resources – The money available to the business, including capital, loans, grants, and profits. These are used to acquire other resources and meet operational expenses. 3. Material resources – The physical assets used in production, including raw materials, machinery, equipment, buildings, and vehicles. 4. Information resources – The data, knowledge, and intelligence used by the business to make decisions, including market research, customer feedback, and business intelligence. =========================================================== QUESTION 7 =========================================================== (a) Name the policy adopted by the state (1 mark) The policy adopted is Commercialisation (or Partial Commercialisation). (b) State four possible causes of the inefficiency of the transport company (4 marks) 1. Lack of competition – As a government monopoly, the company had no incentive to improve service quality or reduce costs. 2. Poor management – Managers may lack business skills and may focus on political objectives rather than efficiency and profitability. 3. Overstaffing – Government-owned companies often employ more workers than necessary, leading to high labour costs and low productivity. 4. Political interference – Decisions may be influenced by political considerations rather than business viability, such as maintaining uneconomic routes. (c) State two advantages and three disadvantages of deregulation (5 marks) Advantages: 1. Increased competition – Deregulation allows new firms to enter the market, driving efficiency and lower prices. 2. Improved quality of service – Companies must improve their services to attract customers and survive competition. Disadvantages: 1. Loss of control – The government cannot easily control prices and service standards. 2. Unfair competition – Large private firms may drive smaller firms out of business. 3. Job losses – Restructuring may lead to retrenchment of workers from previously protected sectors. =========================================================== QUESTION 8 =========================================================== From the information provided: Asset N Stock 200,000 Fixtures 350,000 Debtors 200,000 Motor vehicles 800,000 Cash 40,000 Bank 70,000 Liability N Overdraft 50,000 Creditors 20,000 (i) Total fixed assets (2 marks) Fixed assets are assets held for long-term use in the business. Fixed assets = Fixtures + Motor vehicles = 350,000 + 800,000 = 1,150,000 Answer: N1,150,000 (ii) Total current assets (2 marks) Current assets are assets that can be converted into cash within one year. Current assets = Stock + Debtors + Cash + Bank = 200,000 + 200,000 + 40,000 + 70,000 = 510,000 Answer: N510,000 (iii) Total liabilities (2 marks) Total liabilities = Overdraft + Creditors = 50,000 + 20,000 = 70,000 Answer: N70,000 (iv) Working capital (2 marks) Working capital = Current assets – Current liabilities = 510,000 – 70,000 = 440,000 Answer: N440,000 (v) Capital employed (2 marks) Capital employed = Total assets – Current liabilities = (1,150,000 + 510,000) – 70,000 = 1,660,000 – 70,000 = 1,590,000 Answer: N1,590,000 =========================================================== END OF ANSWERS – QUESTIONS 1, 2, 3, 4, 5, 6, 7 & 8 =======================

OBJECTIVE AND ESSAY QUESTIONS 🔥🔥👇

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