WAEC Commerce Questions and Answers 2024 (100% Sure) Theory & Obj Solution

The West African Examinations Council (WAEC) conducts the Senior School Certificate Examination (SSCE) for students in West Africa. One of the essential subjects for students in the commercial field is Commerce. It covers the study of trade, aids to trade, production, and distribution of goods and services. Preparing adequately for the WAEC Commerce exam requires understanding the syllabus, practicing past questions, and mastering both objective and theory sections.

In this article, we will provide detailed insights into what you can expect in the WAEC Commerce exam for 2024, including example questions and answers (both theory and objective), alongside solutions to help you prepare effectively.

WAEC Commerce Exam Format

The WAEC Commerce exam consists of two main parts:

1. Objective Questions (Multiple Choice) – This section typically comprises 50 multiple-choice questions, testing your knowledge across the entire syllabus.
2. Theory Questions – This section consists of structured questions where you are expected to provide detailed answers to demonstrate your understanding of key concepts in Commerce. Typically, candidates are required to answer 5 out of 7 or 8 questions.

2024 WAEC Commerce Likely Questions and Answers (Theory & Objective)

Below are sample questions and solutions based on past trends. These are designed to help you get familiar with the kind of questions you might encounter.

WAEC Commerce 2024 Objective (Sample Questions)

1. Which of the following is a function of a wholesaler? a) Providing banking services
   b) Providing large storage facilities
   c) Providing small-scale retail services
   d) Providing legal advisory services
   Answer: b) Providing large storage facilities
2. Which of the following is an example of an aid to trade? a) Mining
   b) Transportation
   c) Agriculture
   d) Banking
   Answer: b) Transportation
3. What is the main purpose of advertising in business? a) To inform the public about the product
   b) To increase the cost of the product
   c) To restrict competitors from entering the market
   d) To sell the business to another firm
   Answer: a) To inform the public about the product
4. A company whose owners have limited liability is called a…
   a) partnership
   b) sole proprietorship
   c) cooperative
   d) limited liability company
   Answer: d) limited liability company
5. Which of the following is not an essential characteristic of money?
   a) Portability
   b) Durability
   c) Elasticity
   d) Divisibility
   Answer: c) Elasticity

WAEC Commerce 2024 Theory (Sample Questions)

1. Explain the role of commerce in economic development.
   Solution: Commerce plays a critical role in economic development by facilitating the exchange of goods and services between individuals, businesses, and nations. It encourages specialization, promotes efficient allocation of resources, creates jobs, and contributes to the Gross Domestic Product (GDP) of a country. Through commerce, entrepreneurs can access markets beyond their immediate environment, increasing their income and driving innovation. The growth of commerce leads to the development of infrastructure, such as roads, warehouses, and ports, further boosting trade and economic activities.
2. Discuss the functions of insurance in business.
   Solution: Insurance serves several important functions in business:
   • Risk Mitigation: It protects businesses from unforeseen risks, such as fire, theft, or natural disasters, by compensating for losses.
   • Encourages Investment: With the assurance that potential losses can be covered, businesses are more likely to invest in ventures that may carry risks.
   • Provision of Capital: Insurance companies provide long-term funds to businesses through life insurance policies or other investment-linked insurance plans.
   • Employment Opportunities: The insurance industry provides jobs for agents, brokers, underwriters, and claim assessors.
3. Distinguish between direct and indirect production.
   Solution: Direct production refers to the process where an individual or a group produces goods or services for personal consumption without the involvement of intermediaries. Examples include subsistence farming, home-cooked meals, or handcrafted goods for personal use.
   Indirect production, on the other hand, involves the production of goods or services for sale in the market, often through a chain of intermediaries. This type of production is primarily for commercial purposes, and examples include factory-manufactured goods, retail services, and large-scale farming for export.
4. Describe four features of a limited liability company.
   Solution:
   • Separate Legal Entity: A limited liability company (LLC) is a distinct legal entity from its owners, meaning it can enter contracts, own property, and sue or be sued in its name.
   • Limited Liability: The liability of the shareholders is restricted to the amount they invested in the company. Their personal assets are not at risk in the event of business failure.
   • Transferability of Shares: In a public limited company, shares can be freely transferred among investors, providing liquidity and flexibility.
   • Perpetual Succession: An LLC has a continuous existence, meaning it continues to exist even if the owners die or leave the company.

FAQs on WAEC Commerce 2024

1. What topics should I focus on for the WAEC Commerce 2024 exam? Focus on key areas such as trade (domestic and international), aids to trade (insurance, transportation, banking, advertising), business organizations, functions of commerce, production, and consumer protection. Reviewing past questions and answers will also be very helpful.
2. Are the WAEC Commerce objective questions difficult? The objective questions are usually straightforward but require you to have a solid understanding of the concepts covered in the syllabus. Regular practice of past questions will improve your speed and accuracy.
3. Can I rely on the questions provided here for my exam? While the questions provided here are based on past trends and are likely to appear, you should not rely solely on them. Make sure to cover the entire syllabus and understand the concepts behind each question.
4. How can I pass WAEC Commerce with excellent grades? Start your preparation early, cover all the key topics in the syllabus, and practice with past questions. Understand the theory concepts in-depth, and ensure that you can answer questions concisely and correctly. Time management during the exam is also crucial.
5. Is Commerce a compulsory subject in WAEC? No, Commerce is not compulsory for all students. However, it is essential for students pursuing careers in business, finance, or economics. It is also necessary for those who wish to study courses related to these fields in tertiary institutions.

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For more resources, you can visit the WAEC official website or download past WAEC Commerce questions and answers.