Commerce WAEC past questions and answers

Commerce WAEC past questions and answers

Question: What is the primary purpose of marketing?

a) Maximizing profits

b) Minimizing costs

c) Creating customer value

d) Employee satisfaction

Answer: c) Creating customer value

Question: Which financial statement represents a company's financial position at a specific point in time?

a) Income statement

b) Cash flow statement

c) Balance sheet

d) Statement of retained earnings

Answer: c) Balance sheet

Question: What does ROI stand for in business?

a) Return on Investment

b) Revenue Over Income

c) Ratio of Income

d) Revenue Optimization Index

Answer: a) Return on Investment

Question: What type of economic system is characterized by private ownership and free market forces?

a) Socialism

b) Communism

c) Capitalism

d) Mixed economy

Answer: c) Capitalism

Question: In the context of e-commerce, what does SSL stand for?

a) Secure Socket Layer

b) Simple System Language

c) Standard Security Layer

d) Secure System Link

Answer: a) Secure Socket Layer

Question: Which pricing strategy involves setting a high initial price and then gradually reducing it over time?

a) Penetration pricing

b) Skimming pricing

c) Competitive pricing

d) Dynamic pricing

Answer: b) Skimming pricing

Question: What is the term for the total market value of all final goods and services produced within a country in a specific period?

a) GDP (Gross Domestic Product)

b) GNP (Gross National Product)

c) NNP (Net National Product)

d) CPI (Consumer Price Index)

Answer: a) GDP (Gross Domestic Product)

Question: Which of the following is not a factor of production?

a) Labor

b) Capital

c) Demand

d) Land

Answer: c) Demand

Question: What is the purpose of a SWOT analysis in business?

a) Identify strengths, weaknesses, opportunities, and threats

b) Calculate sales tax

c) Forecast stock prices

d) Analyze employee satisfaction

Answer: a) Identify strengths, weaknesses, opportunities, and threats

Question: What does the term "LIFO" stand for in accounting?

a) Last In, First Out

b) First In, Last Out

c) Last Input, First Output

d) First Input, Last Output

Answer: a) Last In, First Out

Question: Which type of market structure is characterized by a large number of sellers offering similar products?

a) Monopoly

b) Oligopoly

c) Monopolistic competition

d) Perfect competition

Answer: c) Monopolistic competition

Question: What is the purpose of a business plan?

a) Secure funding and investors

b) Track employee attendance

c) Monitor social media presence

d) Calculate monthly utility costs

Answer: a) Secure funding and investors

Question: What is the term for the process of converting raw materials into finished goods?

a) Distribution

b) Production

c) Marketing

d) Retailing

Answer: b) Production

Question: Which financial metric represents a company's profitability over a specific period?

a) Earnings per share (EPS)

b) Return on assets (ROA)

c) Price-to-earnings ratio (P/E ratio)

d) Gross profit margin

Answer: a) Earnings per share (EPS)

Question: In the context of supply and demand, what happens to price when demand increases and supply remains constant?

a) Price decreases

b) Price increases

c) Price remains unchanged

d) Price becomes unpredictable

Answer: b) Price increases

Question: What is the role of a Board of Directors in a corporation?

a) Day-to-day operational decisions

b) Represent shareholders' interests and make strategic decisions

c) Set product prices

d) Manage employee schedules

Answer: b) Represent shareholders' interests and make strategic decisions

Question: Which type of risk can be managed through insurance?

a) Market risk

b) Operational risk

c) Credit risk

d) Insurable risk

Answer: d) Insurable risk

Question: What is the function of the Federal Reserve in the United States?

a) Fiscal policy

b) Monetary policy

c) Trade regulation

d) Environmental protection

Answer: b) Monetary policy

Question: What is the purpose of a cash flow statement?

a) Summarize a company's financial position at a specific point in time

b) Show the flow of cash in and out of a business over a period

c) Analyze market trends

d) Calculate total revenue

Answer: b) Show the flow of cash in and out of a business over a period

Question: Which type of marketing focuses on promoting products directly to consumers through various communication channels?

a) Business-to-Business (B2B) marketing

b) Influencer marketing

c) Direct-to-Consumer (DTC) marketing

d) Affiliate marketing

Answer: c) Direct-to-Consumer (DTC) marketing