NECO Commerce Questions and Answers 2021. I will be showing you NECO Commerce objective and theory questions for free. You will also understand how NECO Commerce questions are set and many more examination details.
The National Examination Council is an examination body that set questions annually from areas student should, after their studies in the senior secondary school, be able to write and pass without stress.
NECO Commerce answers and questions Objectives and Essay will be provided here and the authenticity of this NECO 2021 Commerce solutions to questions has been tested and confirmed to be sure.
NECO Commerce Essay And Objective Questions and Answers 2021 (EXPO)
The 2021 NECO Commerce Answers will be posted here today, 11th August during the examination. Keep checking and reloading this page for the answers.
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Today’s Commerce Answers:
CO Commerce OBJ
1-10: BDBCEADDBA
11-20: BCDCEBEABD
21-30: BEBCAABDEB
31-40: EBBCCDBADC
41-50: DEEACDDECA
51-60: BCAECBBEDD
Commerce Essay:
(1a)
A crossed cheque is one that has two parallel transverse lines drawn across its face with or without the word “Co and Ltd” Not negotiable. WHILE Stale cheque is a cheque which has been in circulation for an unreasonably long time, hence the date of presentation for payment has expired .
(1b)
(Pick Any Four)
(i) Bank drafts
(ii) Bank certified cheque
(iii)Automated teller Machine(ATM)
(iv)money gram
(v)Western union.
EXPLANATION:
(Pick Any Four)
(i) Bank drafts: This is a cheque which a bank official draws on the banks deposits in another bank. The bank draft is sold on commission to members of the public not minding whether such a person has a current account with the bank or not. It is a safe means of transferring money(huge amount) From one person to another.
(ii) Bank certified cheque: A cheque on which the bank had written its guarantee that the cheque will be paid . yo ensure that the amount written on the cheque is paid , the bank immediately draws out the amount from the depositor’s account.
(iii)Automated teller Machine(ATM): This us computerised machine that enables or permit back customers to gain access to their accounts with a magnetically encoded plastic card and a code number. It enables the customer to transact business anytime and perform several banking operations without the help of a teller.
(iv)money gram: Money gram International Inc. Is a money transfer company based in the United State of America.Money gram businesses are divided into two categories (a) Global fund transfer (b)financial paper products. The company services individuals and businesses through a network of agents and financial institutions who aided customers either in sending or receiving fund throughout the world.
(v)Western union: The Western Union money transfer is a financial eservices and communication company based in the united state of America. Western union is best known in the business of exchanging telegram . it also specialises in transferring certain amount of money usually in dollars from one country to another through the help of commercial bank
(2ai)
Cartel: A cartel is a collaboration between two or more companies or producers of the same commodity to regulate the production and sale of the product with a view to obtain dominance in the market . An example of cartel is the Organization of Petroleum Exporting Countries (OPEC).
(2aii)
consortium: A consortium is an alliance of companies, individuals, or other entities that got together to achieve a specific objective. An example of consortium is several banks banding together.
(2aiii)
Trust: A trust is a structure where a trustee carries out the business on behalf of the trust’s members (or beneficiaries). A trust is not a separate legal entity. A trustee may be an individual or a company. The trustee is legally liable for the debts of the trust and may use its assets to meet those debts.
(2b)
(i) Value creation: Two companies may undertake a merger to increase the wealth of their shareholders. Generally, the consolidation of two businesses results in synergies that increase the value of a newly created business entity. Essentially, synergy means that the value of a merged company exceeds the sum of the values of two individual companies
(ii) Diversification: Mergers are frequently undertaken for diversification reasons. For example, a company may use a merger to diversify its business operations by entering into new markets or offering new products or services. Additionally, it is common that the managers of a company may arrange a merger deal to diversify risks relating to the company’s operations.
(iii) Increase in financial capacity: Every company faces a maximum financial capacity to finance its operations through either debt or equity markets. Lacking adequate financial capacity, a company may merge with another. As a result, a consolidated entity will secure a higher financial capacity that can be employed in further business development processes.
(iv) Tax purposes: If a company generates significant taxable income, it can merge with a company with substantial carry forward tax losses. After the merger, the total tax liability of the consolidated company will be much lower than the tax liability of the independent company.
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(3a)
[Pick any THREE]
(i) Buying and selling
(ii) Pricing
(iii) Transporting
(iv) Financing
(v) Risk bearing
(vi) Warehousing
(vii) Promotion
[Pick any THREE]
(i) Buying and selling: This includes purchases of raw materials and goods from source and transfer of ownership of such goods to the consumer at the right quality and price.
(ii) Pricing: Marketing helps in fixing prices of goods at a reasonable level to give profit to the company.
(iii) Transporting: Goods produced must be moved to the final consumers. Middlemen and producers must choose the most suitable means of moving their goods to the point where they are required.
(iv) Financing: Marketing finances the operations of the manufacturer through deposits and prepayments made by customers.
(v) Risk bearing: Anticipating business risk and taking appropriate measures to reduce their impacts through insurance cover.
(vi) Warehousing: This makes it possible for goods to be produced ahead of demand when needed.
(vii) Promotion: It involves activities such as advertising, sales promotion, personal selling and public relations that aim at attracting buyers’ attention.
(3bi)
Form utility: This is the value a consumer sees in a finished product. It is process that increases the value of a product to the consumer by making changes and altering its physical appearance. The method involves taking a product and making it ready to meet the needs of the end consumer for consumption. This is because it is more useful to serve the finished product than selling raw materials.
(3bii)
Possession utility: This is the value consumers put on purchasing a product and having the freedom to use the product as it was intended or finding a new use for the product. For example, many people use flower pots for planting, but these pots have other uses such as storage for small objects found around the house or as a centerpiece for the dining room table.
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(4a)
Entrepot is an intermediary storage facility where goods are kept temporarily for distribution within a country or for re-export.
(4b)
(i) To protect infant industries: Countries impose restrictions on internation trade to encourage growth of domestic industries. It is necessary to protect infant industries inorder that the economy can become self-reliant and to encourage consumption of locally produced goods
(ii) To generate revenue for the countries: By imposing import tariffs, the government obtains a source of income other than individuals taxes or business taxes.
(iii) For employment generation: Import restrictions helps to create local jobs for citizens. When importation is limited, more domestic industries are created, thereby increasing employment or job creation locally.
(iv) To improve the balance of payments deficit: Imposing tariffs on imports helps to correct balance of payment, When tariffs are imposed, the prices of imports would increase to the extent of tariff. The increased prices will reduced the demand for imported goods and at the same time induce domestic producers to produce more of import substitutes. Non-essential imports can be drastically reduced by imposing a very high rate of tariff.
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(9a)
Breach of contract: This is a violation of any of the agreed-upon terms and conditions of a binding contract. The breach could be anything from a late payment to a more serious violation such as the failure to deliver a promised asset.
(9b)
Contract: This is an agreement between two or more parties to perform a service, provide a product or commit to an act and is enforceable by law.
(9c)
Contract under seal: This is a formal contract which does not require any consideration and has the seal of the signer attached. A contract under seal must be in writing or printed on paper. It is conclusive between the parties when signed, sealed, and delivered.
(9d)
A void contract: This is a formal agreement that is effectively illegitimate and unenforceable from the moment it is created. A contract may be deemed void if it is not enforceable as it was originally written.
(9e)
Termination of contract: This means legally ending the contract before both parties have fulfilled their obligations under the terms of the contract.
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The questions below are not exactly 2021 NECO Commerce questions and answers but likely NECO Commerce repeated questions and answers.
These questions are strictly for practice. The 2021 NECO Commerce expo will be posted on this page on the day of the NECO Commerce examination. Keep checking and reloading this page for the answers.
NECO Commerce Practice Questions and Answers
1. Income distribution, nature of natural resources, investment etc. forms part of —–business environment.
A. cultural
B. economic
C. political
D. social
E. technological
2. The fee for sending a telegram depends on the
A. number of lines contained by the message
B. number of words contained in the message
C. the security of the message
D. time it would take the message to reach its destination
E. urgency of the message
3. The combination of product, price,
A. consumer orientation
B. marketing concept
C. marketing mix
D. marker research
E. product mix
4. Use the following information to answer question
Kolawole’s Opening Stock was N10, 000. His purchases was N280,000 Goods returned outward was N3,000, and the Closing Stock was N8,000
Kolawole’s average stock is?
A. N9,000.00
B. N10, 000.00
C. N279,000.00
D. N280,000.00
E. N290,000.00
5. When the supplier changes a retailer for not returning empty packages, the supplier sends him a/an
A. advice note
B. consignment note
C. credit note
D. debit note
E. statement
6. Which of the following is NOT a function of Commerce?
A. Assisting Companies in raise capital
B. Assisting in transporting men and materials to production points
C. Extracting goods for further production and processing
D. Storing goods until they are needed
E. Offering employment opportunities to a large number of people
7. In which order are the following documents used?
I. Enquiry
II. Delivery note
III. Order
IV. Invoice
V. Quotation
A. I, II, III, IV and V
B. I, V, III, IV and II
C. II, I, IV, III and V
D. III, II, V, I and IV
E. V, IV, I, III and II
8. The price of an item is N 300 with a trade discount of 20%, What is the selling price?
A. N180
B. N240
C. N300
D. N360
E. no option
9. A hire purchase transaction becomes a sale when the hirer
A. pays full cost of the goods
B. agrees with the hire purchase terms
C. takes possession of the goods
D. pays part of the instalments
10. An electronic system of communication which serves as the international information bank is called
A. an e-mail
B. a satellite
C. a telex
D. the Internet
11. Shares, stocks, government bonds trade in the stock exchange marks: are known as
A. debentures
B. gut-edged stocks
C. merchandises
D. securities
E. treasure bills
12. The practice of selling some goods below market price to attract more customers is known as
A. hoarding
B. loss leader
C. market sharing
D. profiteering
E. speculating
13. Shares that are fully paid can be converted into bulks known as
A. bonds
B. capital reserves
C. debentures
D. guilt-edged securities
E. stocks
14. Telecommunication services are provided by
A. Bureau De Change
B. Courier Services
C. Date Post
D. NIPOST
E. NITEL
15. Use the following information to answer question
Kolawole’s Opening Stock was N10, 000. His purchases was N280,000 Goods returned outward was N3,000, and the Closing Stock was N8,000
Cost of goods sold is
A. N180,000.00
B. N227,000.00
C. N279,000.00
D. N290,000.00
E. N301,000.00
16. The process of passing information from one person to another in an organization is known as
A. communication
B. co-ordination
C. delegation
D. direction
E. Motivation
17. A financial document stating the reasons for making a payment and details of the payment is
A. bank draft
B. cash book
C. cheque
D. payslip
E. voucher
18.Another name for a foreign order is
A. catalogue
B. export
C. import
D. indent
E. quotation
19. Public debt management is one of the functions of a ______________ bank
A. central
B. commercial
C. development
D. industrial
E. merchant
20. Which of the following regards the consumer as king?
A. consumer behavior
B. marketing concept
C. market mix
D. pricing policy
E. product mix
21. The most suitable mode of transporting very bulky goods from Lagos to Kaduna is the
A. aeroplane
B. caravan
C. lorry
D. ship
E. train
22. Adeleke places his vehicle for sale at N150,000,00 Ibrahim had agreed to pay the amount. In this Trans: Adeleke is the
A. agent
B. auctioneer
C. broker
D. offeree
E. offeror
23. The following are methods of quoting prices EXCEPT
A. A.C.I.F
B. F.A.S
C. F.O.B
D. L.O.C.O
E. E.O.E
24. The amount receivable by shareholders after the declaration of profit is called
A. bonus
B. commission
C. dividend
D. interest
E. premium
25. Which of the following is an invisible item of trade?
A. Banking Service
B. Petroleum Product
C. Processed Rice
D. Processed Milk
E. Processed Yam Flour.
NECO Commerce Questions and Answers 2020 Loading…
How To Pass NECO Commerce Examination
The National Examination Council (NECO) is a body in charge of the Senior Secondary School Certificate Examination. The Certificate offered here is a very important credential that awards or certify the completion of your Secondary School Education.
It is a major document that qualifies you into any tertiary institution and equally a major factor affecting admission today.
For this reason, every Student preparing for this examination NECO 2021 is preparing for something great.
Care should be taken when participating in this examination in other not to come out with bad grades. The following are the key answers to NECO Commerce 2021.
1. Be Determined to Pass
The NECO 2021 Commerce is mainly for those who have made up their mind to pass it with a good grade.
Any candidate who, at this point in time, has not made up his or her mind to make the excellent grade in the forthcoming NECO 2021 Commerce is actually not ready to pass.
Your mind should be ready for the task ahead, do not follow lazy friends who believe in a miracle on the day of the exams, stay positive and study your books.
2. Have self-confidence
Self-confidence is another factor that affects a candidate’s performance. Promise to do it all by yourself and everything will come out very simple for you.
It is a well-known fact that many students cancel the right answers just to copy the wrong ones because of a lack of self-confidence. Study and pray hard and you are the miracle for the day.
3. Start Studying Early
Studying is very important in your life as a student. NECO is a very simple Exam to deal with as long as studies are involved. Studying is one thing and studying on time is another thing entirely.
Do not wait for the NECO 2021 Commerce exams to be so close before you start studying for it. Late preparation will not really help you. When you start studying early there will be time for you to revise before the exams.
2. Make Use the NECO 2021 Syllabus
Using the NECO 2021 syllabus is very essential as it will guide you on major topics to cover. Studying without the Syllabus will make you focus on unnecessary topics that will not appear in the exams.
Also, most of the Commerce topics you have not done in class are there in the NECO syllabus.
3. Pray to God Your creator
Many think that they can do it all alone without God. The Almighty God is your creator, seek His assistance and He will never fail to help you. Your faith in God determines your success. God is there for you, call upon Him.
4. Adhere to exams instructions.
Any student who is not ready to adhere to the examination conducts is planning to fail. The majority of NECO Candidates that have their result held are from those that were not ready to follow the Exam instructions.
5. Use Your Time Wisely.
It is a well-known fact that NECO Commerce needs a lot of time, manage the little time given to you wisely. Consider the number of questions you are to answer and the time given so that you can time wisely.
6. Be punctual to the examination venue
Punctuality matters during the exams. Go to the exam venue early so that your brain can settle for the task. Rushing to the exam hall will make you unstable for the exam and can prone you to so many mistakes.
Take time to go through the exam question paper before you start answering. NECO Commerce Questions and Answers
If you have any questions about the 2021 NECO Commerce questions and answers, do well to let us know in the comment box.
