WAEC Commerce Past Questions And Answers (Objective and Theory)
Section A: Commerce Questions
What is the primary function of a central bank?
a) Fiscal policy
b) Monetary policy
c) Trade regulation
d) Tax collection
Answer: b) Monetary policy
Which financial statement reflects a company’s financial position at a specific point in time?
a) Income statement
b) Balance sheet
c) Cash flow statement
d) Statement of retained earnings
Answer: b) Balance sheet
What does ROI stand for in business?
a) Return on Investment
b) Revenue Over Income
c) Risk of Inflation
d) Rate of Inheritance
Answer: a) Return on Investment
Which type of market structure is characterized by a large number of sellers with similar products?
a) Monopoly
b) Oligopoly
c) Monopolistic competition
d) Perfect competition
Answer: d) Perfect competition
What is the purpose of SWOT analysis in business strategy?
a) Analyzing financial statements
b) Assessing market trends
c) Evaluating internal strengths and weaknesses
d) Projecting sales forecasts
Answer: c) Evaluating internal strengths and weaknesses
In accounting, what does the acronym GAAP stand for?
a) Generally Accepted Accounting Principles
b) Global Accounting Assessment Protocol
c) General Asset Allocation Plan
d) Gross Annual Accounting Procedures
Answer: a) Generally Accepted Accounting Principles
What is the purpose of a marketing mix in business?
a) Identifying competitors
b) Setting product prices
c) Developing promotional strategies
d) Managing human resources
Answer: c) Developing promotional strategies
Which financial ratio measures a company’s ability to meet short-term obligations?
a) Return on Equity (ROE)
b) Debt-to-Equity Ratio
c) Current Ratio
d) Earnings per Share (EPS)
Answer: c) Current Ratio
What does the term “E-commerce” refer to in business?
a) Environmental regulations
b) Electronic commerce
c) Economic forecasting
d) Ethical conduct
Answer: b) Electronic commerce
Which economic indicator measures the average prices of goods and services in an economy?
a) Gross Domestic Product (GDP)
b) Consumer Price Index (CPI)
c) Unemployment rate
d) Producer Price Index (PPI)
Answer: b) Consumer Price Index (CPI)
What is the purpose of a cash flow statement?
a) Assessing profitability
b) Evaluating liquidity
c) Analyzing market trends
d) Projecting future sales
Answer: b) Evaluating liquidity
Which marketing strategy involves setting a low initial price to attract customers?
a) Penetration pricing
b) Premium pricing
c) Skimming pricing
d) Psychological pricing
Answer: a) Penetration pricing
In financial markets, what does IPO stand for?
a) Initial Public Offering
b) International Portfolio Organization
c) Investment Protection Order
d) Inflationary Price Outlook
Answer: a) Initial Public Offering
What is the purpose of a SWOT analysis in business?
a) Evaluating internal strengths and weaknesses
b) Analyzing market trends
c) Setting product prices
d) Projecting sales forecasts
Answer: a) Evaluating internal strengths and weaknesses
Which type of risk is associated with changes in interest rates?
a) Market risk
b) Credit risk
c) Operational risk
d) Interest rate risk
Answer: d) Interest rate risk
What is the role of the Securities and Exchange Commission (SEC) in the United States?
a) Setting interest rates
b) Regulating financial markets
c) Collecting taxes
d) Enforcing labor laws
Answer: b) Regulating financial markets
Which pricing strategy involves setting prices just below a whole number, such as $9.99 instead of $10.00?
a) Premium pricing
b) Psychological pricing
c) Skimming pricing
d) Discount pricing
Answer: b) Psychological pricing
What is the purpose of a break-even analysis in business?
a) Maximizing profits
b) Assessing market trends
c) Determining the point of profitability
d) Setting advertising budgets
Answer: c) Determining the point of profitability
Which financial statement shows a company’s revenues and expenses over a specific period?
a) Balance sheet
b) Income statement
c) Cash flow statement
d) Statement of retained earnings
Answer: b) Income statement
What is the role of a whistleblower in corporate governance?
a) Monitoring employee attendance
b) Reporting illegal or unethical activities
c) Setting corporate policies
d) Conducting market research
Answer: b) Reporting illegal or unethical activities
Section B: Theory Questions
Explain the concept of economies of scale in business.
Answer: Economies of scale refer to the cost advantages that a business can achieve by increasing its level of production. As production quantity increases, the average cost per unit decreases, leading to greater efficiency and lower costs.
Define the term “supply chain management” and discuss its importance in modern businesses.
Answer: Supply chain management involves the coordination and optimization of various activities in the production and distribution process. It is crucial for enhancing efficiency, reducing costs, and ensuring timely delivery of products or services to customers.
What is the role of human resource management in organizations, and how does it contribute to overall success?
Answer: Human resource management focuses on managing and maximizing the potential of an organization’s workforce. It contributes to success by recruiting and retaining talented individuals, fostering a positive work culture, and aligning employee skills with organizational goals.
Explain the concept of elasticity of demand and provide examples of products with different elasticity.
Answer: Elasticity of demand measures how sensitive the quantity demanded is to a change in price. Products with elastic demand, such as luxury goods, experience significant changes in demand with price fluctuations. Inelastic goods, like essential commodities, show less sensitivity to price changes.
