2026 WAEC
Friday 19th June 2026
Commerce
Exam Pluto
PIN: 339
Click here to refresh for new updates
WAEC COMMERCE QUESTIONS AND ANSWERS POSTED BELOW
COMMERCE OBJ
01-10: BCBDABDBCB
11-20: ACAADBDDAD
21-30: BDACBBDCAB
31-40: BBBCABCBDB
41-50: DCCCCBAAAD
COMPLETED
*WAEC COMMERCE*
*NUMBER ONE*
(1a)
Commerce is the buying and selling of goods and services through traditional methods and physical channels, while e-commerce is the buying and selling of goods and services through electronic means, especially the internet.
(1bi)
Business to Customer (B2C) is a type of e-commerce in which businesses sell goods and services directly to individual consumers through online platforms. Customers can browse products, place orders, make payments, and receive deliveries without visiting a physical store. Examples include online shopping websites and retail platforms.
(1bii)
Government to Business (G2B) is a type of e-commerce that involves online interactions and transactions between government agencies and business organizations. It enables businesses to access government services such as tax payments, business registration, license applications, contract bidding, and regulatory compliance through electronic platforms.
(1c)
=Advantages=
(PICK ANY TWO)
(i) It enables buying and selling of goods at any time of the day.
(ii) It provides access to a wider market beyond geographical boundaries.
(iii) It reduces operational and transaction costs.
(iv) It offers convenience to both buyers and sellers.
(v) It allows quick and easy comparison of prices and products.
(vi) It speeds up communication and transaction processing.
=Disadvantages=
(PICK ANY THREE)
(i) It is vulnerable to cybercrime, hacking, and online fraud.
(ii) Customers cannot physically inspect products before purchase.
(iii) It depends heavily on internet connectivity and electricity.
(iv) Delivery delays may occur after purchase.
(v) Technical failures can disrupt business operations.
(vi) Personal and financial information may be exposed to security breaches.
*WAEC COMMERCE*
*NUMBER TWO*
(2a)
Division of labour is the process of breaking down a production activity into several smaller tasks and assigning each task to different workers according to their skills and specialization in order to increase efficiency and productivity
(2b)
(PICK ANY THREE)
(i) Capital is man-made. Capital is not naturally available like land. It is created through human effort and production activities. Examples of capital include machines, tools, equipment, factories, and vehicles used in the production of goods and services.
(ii) Capital is productive. Capital contributes directly to the production process by helping workers produce more goods and services efficiently. The use of machines and modern equipment increases productivity and improves the quality of output.
(iii) Capital is subject to depreciation. Capital assets lose value over time due to constant use, wear and tear, ageing, and technological changes. For example, machines and vehicles become less efficient and may require replacement after prolonged use.
(iv) Capital has a monetary value. Every capital asset can be valued in monetary terms. Businesses can determine the worth of their machines, buildings, tools, and equipment, making it possible to record them in financial statements.
(v) Capital is relatively mobile. Capital can be moved from one place to another or transferred from one line of production to another where it is needed. For instance, machinery and funds can be relocated to areas where they can be used more profitably.
(vi) Capital is derived from savings and investment. Capital is accumulated when individuals, firms, or governments save part of their income and invest it in productive assets. Without savings and investment, the acquisition of capital goods needed for production would not be possible.
(2ci)
Extraction occupation refers to economic activities that involve the removal or obtaining of natural resources directly from the earth, water, and forests for human use and industrial production. People engaged in extraction occupations obtain raw materials from nature without changing their original form. These raw materials serve as inputs for other sectors of the economy, especially manufacturing industries.
=Examples=
(i) Farming
(ii) Fishing
(iii) Mining
(iv) Forestry
(2cii)
Manufacturing occupation refers to economic activities that involve the processing and transformation of raw materials into finished or semi-finished goods through the use of labour, machines, and technology. Manufacturing adds value to raw materials and produces goods that can be consumed directly or used in further production processes.
=Examples=
(i) Textile production
(ii) Cement manufacturing
(iii) Automobile assembly
(iv) Food processing.
*WAEC COMMERCE*
*NUMBER THREE*
(3ai)
The type of cooperative society formed by the plantain farmers of Falla community is an Agricultural Cooperative Society (Farmers' Cooperative Society).
(3aii)
(PICK ANY FOUR)
(i) Voluntary Membership: Membership is open to all eligible persons who are willing to join and accept the rules and regulations of the society. No individual is forced to become a member, and members are free to withdraw according to the society's regulations.
(ii) Democratic Control: The society is managed according to democratic principles where each member has one vote irrespective of the amount of capital contributed. Important decisions are made collectively by members during meetings.
(iii) Common Interest: Members unite to pursue shared economic and social objectives. The society is established to promote the welfare of members through mutual assistance and cooperation.
(iv) Limited Return on Capital: Members receive only a limited interest on the capital they contribute. The major aim of the society is service to members rather than profit maximization.
(v) Distribution of Surplus: Any surplus or profit made by the cooperative is distributed among members according to the volume of their transactions or participation in the activities of the society.
(vi) Legal Recognition: The cooperative society is usually registered under the relevant cooperative laws, giving it legal status and enabling it to operate officially.
(vii) Self-help and Mutual Assistance: Members contribute resources and work together to solve common problems and improve their economic conditions.
(viii) Open Membership: Membership is generally open to all persons who share the objectives of the society and are willing to comply with its rules and regulations.
(3b)
(PICK ANY FIVE)
(i) Limited Liability: The liability of shareholders is limited to the amount they have invested in the company. Their personal properties cannot be used to settle the debts of the business beyond their investment.
(ii) Separate Legal Entity: A private company has a legal existence distinct from its owners. It can own assets, enter into contracts, borrow money, and sue or be sued in its own name.
(iii) Continuity of Existence: The company enjoys perpetual succession, meaning that it continues to exist despite the death, retirement, insolvency, or withdrawal of any shareholder.
(iv) Ability to Raise Capital: A private company can obtain capital from shareholders and may attract additional investment to finance expansion and business growth.
(v) Efficient Management: The company can appoint qualified professionals and experts to manage its affairs, resulting in improved efficiency and better decision-making.
(vi) Greater Stability: Because ownership can be transferred and the company has perpetual succession, it enjoys more stability than sole proprietorships and partnerships.
(vii) Business Expansion Opportunities: The availability of capital and professional management enables the company to expand its operations more easily and enter new markets.
(viii) Enhanced Business Reputation: A private company often enjoys greater public confidence and credibility because it is registered and operates under legal regulations.
*WAEC COMMERCE*
*NUMBER FOUR*
(4a) (Pick Any Five)
(i) Hawkers bring goods closer to customers.
(ii) They require little capital to start and operate.
(iii) They offer flexible and convenient services to buyers.
(iv) Customers can buy goods in small quantities.
(v) Hawkers are easily accessible in traffic and busy areas.
(vi) They may sell goods at lower prices than supermarkets.
(vii) Hawking provides employment and a source of income.
(viii) Some areas do not have nearby supermarkets.
(4b) (Pick Any Five)
(i) It is a very large retail store.
(ii) It combines the features of a supermarket and a department store.
(iii) It operates mainly on a self-service basis.
(iv) It stocks a wide variety of goods under one roof.
(v) Goods are arranged in different sections or departments.
(vi) Prices are usually clearly marked on products.
(vii) It has large parking spaces for customers.
(viii) It handles a high volume of sales and customers.
(ix) It usually offers goods at competitive prices.
(x) Customers pay for goods at centralized checkout points.
5(a)
Performance: When both parties fully perform their respective obligations under the contract.
Agreement: When both parties mutually agree to terminate or end the contract before completion.
Breach: When one party fails to fulfill their part of the contract, leading the other party to treat it as dissolved.
Frustration: When an unforeseen, external event makes it impossible or illegal to carry out the contract (e.g., destruction of the subject matter or sudden government ban).
Lapse of time: When a contract is tied to a specific timeframe and that period expires without performance.
Operation of law: This includes situations like the bankruptcy, death, or mental incapacity of one of the parties.
5(b)
(i) Sale of Goods Act: This Act regulates the contract of sale of goods between buyers and sellers. It defines the duties, rights, and liabilities of both parties, ensuring that goods sold match their description, are of merchantable quality, and are fit for the purpose intended.
(ii) Foods and Drugs Act: This law regulates the manufacturing, sale, and advertisement of food, drugs, cosmetics, and medical devices. It aims to protect public health by prohibiting the sale of contaminated, adulterated, harmful, or falsely labeled products.
(iii) Standard Organization Act: This Act establishes the body responsible for standardizing and certifying methods, materials, and products within the country. It ensures that locally manufactured and imported goods meet specific quality benchmarks to protect consumers and boost industrial efficiency.
(iv) Factory, Shops and Offices Act: This legislation regulates the safety, health, and welfare of workers in factories, shops, and offices. It mandates employers to provide proper ventilation, lighting, sanitary facilities, and safe working conditions to prevent industrial accidents and occupational diseases.
(v) Hire Purchase Act: This law governs agreements where a buyer takes possession of goods but pays for them in installments, with ownership transferring only after the final installment is paid. It protects buyers from arbitrary repossession of goods by the seller after a significant portion of the money has been paid.
*WAEC COMMERCE ANSWER*
*NUMBER SIX*
(6a)
Business management is the process of planning, organizing, directing, and controlling resources (human, financial, physical, and informational) within an organization to achieve its stated goals and objectives efficiently and effectively.
(6b)
(i) economic environment: This refers to the external economic factors and conditions that influence a business's operations, consumer purchasing power, and decision-making. It includes inflation rates, interest rates, exchange rates, economic growth/recession, and employment levels.
(ii) social environment: This encompasses the societal values, customs, traditions, demographics, lifestyle trends, and cultural beliefs of the community in which a business operates. It dictates consumer preferences, buying habits, and corporate social expectations.
(6c)
(CHOOSE ANY FOUR)
(i) Human Resources (Manpower)
(ii) Financial Resources (Money)
(iii) Physical/Material Resources (Materials)
(iv) Technological Resources
(v) Informational Resources (Data)
(vi) Intangible Resources (Goodwill/Reputation):
(vii) Time:
EXPLANATION
(CHOOSE ANY FOUR)
(i) Human Resources (Manpower): The employees, managers, and skilled laborers who provide the effort, creativity, and expertise necessary to run the business.
(ii) Financial Resources (Money): The capital, cash reserves, loans, and credit lines required to fund daily operations, purchase equipment, and invest in growth.
(iii) Physical/Material Resources (Materials): The tangible assets used by the business, such as raw materials, machinery, inventory, buildings, and land.
(iv) Technological Resources: The software, hardware, IT networks, automated systems, and specialized technical knowledge used to streamline production and communication.
(v) Informational Resources (Data): Market research, customer data, competitive analysis, and industry trends that help management make informed, strategic decisions.
(vi) Intangible Resources (Goodwill/Reputation): Brand identity, patents, intellectual property, and customer loyalty, which provide a competitive edge in the marketplace.
(vii) Time: A critical, finite resource that must be managed effectively through scheduling and project deadlines to minimize waste and ensure operational efficiency.
*WAEC COMMERCE ANSWERS*
*NUMBER SEVEN*
(7a)
Policy Adopted by the State
The policy adopted by the state of Kabada is Deregulation (or Commercialization / Privatization restructuring). By stopping the subvention (subsidy) and forcing the management to turn a profit, the government is moving towards a market-driven approach.
(7b)
(CHOOSE ANY FOUR)
(i) Poor Management and Leadership: Lack of strategic planning, accountability, and professional expertise among executives.
(ii) Inadequate Fleet Maintenance: Frequent breakdowns of vehicles due to poor maintenance culture, leading to high repair costs and lost revenue.
(iii) Corruption and Financial Leakage: Embezzlement, ticket racketeering, or misappropriation of company funds by staff.
(iv) Overstaffing and Bureaucracy: Employing too many redundant personnel (often due to political favors), which spikes operating costs.
(v) Political Interference: Government officials dictating routes, fares, or hiring choices based on political motives rather than commercial viability.
(vi) Outdated Technology and Operations: Manual ticketing systems and failure to use modern scheduling software or fuel-efficient vehicles.
(vii) Low Staff Morale: Poor wages or delayed payment of salaries leading to a lack of dedication, poor customer service, or frequent industrial strikes.
(7c)
*ADVANTAGES OF DEREGULATION*
(CHOOSE ANY TWO)
(i) Increased Competition: Opens up the sector to other private players, leading to better choices and services for consumers.
(ii) Improved Efficiency: Forces management to cut waste, optimize resources, and innovate because they can no longer rely on government bailouts.
(iii) Relief on Public Finances: Saves the government money by eliminating constant subventions, allowing public funds to be redirected to other critical sectors like health or education.
(iv) Market-Driven Pricing: Fares and rates adjust dynamically based on demand and supply, often leading to competitive pricing in the long run.
(v) Attraction of Private Investment: Encourages private capital inflow into infrastructure, fleet upgrades, and modern logistics technology.
*DISADVANTAGES OF DEREGULATION*
(CHOOSE ANY THREE)
(i) Higher Prices/Fares: The removal of subsidies often leads to an immediate increase in transport fares, placing a heavier financial burden on low-income citizens.
(ii) Neglect of Unprofitable Routes: Private or commercialized operators may cancel routes to remote/rural areas because they are not financially viable, isolating certain communities.
(iii) Job Losses: To cut costs and maximize profit, management may downsize the workforce, leading to retrenchments and structural unemployment.
(iv) Potential Decline in Safety Standards: In an intense bid to cut operating costs and maximize profit margins, companies might neglect strict safety checks or compromise on vehicle maintenance.
(v) Monopolistic Practices: Larger, predatory private companies might aggressively drive out smaller competitors and eventually control the market, exploiting consumers.
(vi) Exploitation of Workers: To maximize profit margins, employers might reduce workers' benefits, enforce longer hours, or weaken trade unions.
*WAEC COMMERCE*
*NUMBER EIGHT*
(8a)
Bonto Limited
(i)Total Fixed Assets
Fixtures + Motor vehicles
= 350,000 + 800,000 = ₦1,150,000
(ii)Total Current Assets
Stock + Debtors + Cash + Bank
= 200,000 + 200,000 + 40,000 + 70,000 = ₦510,000
(iii) Total Liabilities
Liabilities = Creditors + Overdraft
= 20,000 + 50,000 = ₦70,000
(iv)Working Capital
Working capital = Current Assets – Current Liabilities
= 510,000 – 70,000 = ₦440,000
(v) Capital Employed
Total Assets – Current Liabilities
Total Assets = 1,150,000 + 510,000 = 1,660,000
= 1,660,000 – 70,000 = ₦1,590,000