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👑 2018 NECO GCE COMMERCE ANSWERS👑
100% VERIFIED COMMERCE OBJ ANSWERS
100% VERIFIED COMMERCE THEORY ANSWERS
(i)SAVING ACCOUNT: Saving account is generated by low income earners who are small worker. Customer’s pay small regular saving which will accumulate over time. Holder of the account is entitled to interest but cannot withdraw frequently. The customer will be given a pass book.
(ii) CURRENT ACCOUNT: Current account is usually opened by business men and it is required if a customer wish to make payment through cheques. In current account, the customer is free to withdraw money on demand. The customer will be given a cheque book and also entitled to interest but are charged by bank.
(iii) COMMERCIAL BANK: This is a financial institutions which accept deposits and other valuable from the public for safekeeping with the sole aim of making profits. They are owned by private, individuals, institutions or government. They are limited liability companies.
(iv) CENTRAL BANK: Central Bank is the highest financial institution in a country which implement the monetary policy of the government. It is the sole authority in the banking industry which acts as banker to the government an the commercial banks.
(v) MORTGAGE BANK: Are financial institutions that specialise in granting loans to individual and corporate bodies for building purposes. Such loans are repaid by instalments and can be spread over several years.
(i) Commerce facilities mass production and this people all over the world can enjoy goods and services produced both withing and outside their countries.
(ii) Commerce facilitates the raising of capital for individual needs and investment through the services of banks and other financial institution.
(iii) It offers employment opportunities to a long number of people such as traders insurance etc.
(iv) Commerce helps to create wealth for nations, as duties are charged on good and services either exported or imported.
(v) Commerce makes the public aware of the availability of goods and services through advertising.
The term Division of labour is defined as the breaking down of a production process into a number of separate operations, whereby each operation is undertaken or performed by one person or a group of persons.
The four factors of production are:
(i) Land: Land is a free gift of nature. It does not only include land surface of the earth but all other free gifts of nature or natural resources such as river, mineral resources, atmosphere etc. And the reward for land is “Rent”
(ii) Labour: Labour as a factor of production is defined as all forms of human efforts put into or utilized in production, in other way round it also refers to man’s mental and physical exertions in the process of production. Human being provide the necessary labour which combine with other factors to provide goods and services. The reward for labour comes in form of wages and salaries.
(iii) Capital: Capital may be defined as man-made assets used in production. It refers to man-made wealth or goods used to produce other goods and services. It is also defined as the stock of previous wealth invested in order to produce future wealth. Examples of capital include cash, cutlass, hoe, machines, buildings, motor vehicles, raw materials, semi finished goods, tools and other equipment. The reward for capital is Interest.
(iv) Entrepreneur: This is defined as the factor of production that co-ordinates and organises other factors of production(land, labour and capital) in order to produce goods and services. The entrepreneur bears the risks and takes major decisions of the business. He risks his capital
(i) RECEIPTS: Receipts is a document which acknowledges that payment has been received from the buyer. When the customer receives the goods and he sends the money to the seller who in turn issues the receipts as evidence of payment it must be written and signed by the seller and sent to the buyer stating the actual amount received.
(ii) QUOTATION: This is a statement prepared by a supplier of goods or services for a particular order which shows the current price and terms of trade. Quotation is applicable to a particular transaction only. The suppliers will send it to show the price to be charged, terms of payment and period of delivery. It is usually sent as a reply to an enquiry.
(iii) PROFORMA INVOICE: A proforma invoice is an invoice that is usually submitted before goods are dispatched as a polite request for payment to be made in advance when a seller is not willing to sell on credit and to show the goods. If the goods are returned, it becomes an ordinary invoice.
(iv) LETTER OF CREDIT: The letter of credit is a credit note which is a document sent by the seller to the buyer to correct an over charge. Credit note is sent to a customer for reduction in the amount owed by him. To avoid confusion, it is usually printed in red.
(v) STATEMENT OF ACCOUNT: Statement of account is a document sent by the seller to the buyer at regular intervals to inform him of all transactions made during a particular period and the amount due. It usually shows credits and debits to the account and the balance due.
The importance of transportation to Nigeria economy are listed below:
(i) Transportation has the ability to extend a firm’s market for the sales of a firm’s product. It aids the movement of people and goods to the interior, thereby widening it’s market.
(ii) The development of transport by air and sea has greatly promoted and encouraged trading activities between one county and another. It encourages international trade.
(iii) Transportation has helped the economy of Nigeria to facilitate and quickens the effective distribution of goods and services to area where they are needed.
(iv) Transportation has helped the economy of Nigeria to influence the existence of good transportation network in the location of industries.
(v) Transportation has also provide employment opportunity to lots of people thereby enabling them to earn a living.
(i) The value of the goods : Commodities with high value Mike jewellery are better transported by air so as to reduce pilferage.
(ii) Convenience: This depends on his choice in terms of variety and availability where the businessman/businesswoman resides.
(iii) Weighty/bulky goods: Goods that are heavy and bulky are better moved by road, rail and sea while light goods are best suited for air transport.
(iv) Cost of transport: The overall cost of transport does determine the choice of means of transportation of goods.
(v) Nature of goods: The nature of the commodities to be transported will determine the means of transportation to be used.