2023 WAEC GCE Commerce (Essay & Objective) Answers

COMMERCE OBJ
01-10: BAADCBCCDC
11-20: BBACBCDADD
21-30: BAABCABCBC
31-40: DAADBACBBB
41-50: DCBBADADAA

COMPLETED

WAEC GCE COMMERCE ESSAY

(1a)
The term that refers to the separation of tasks at Zinga Company Limited is “Division of Labour”

(1b)
(i)Employee Skills and Training: If employees lack the necessary skills or training required for specialized tasks, the division of labour might be challenging to implement effectively.

(ii)Workplace Culture and Cooperation: In cases where there’s a lack of cooperation or a poor workplace culture, dividing tasks might lead to conflicts or difficulties in collaboration among workers

(iii)Resource Constraints: Limited resources such as machinery, equipment, or finances might restrict the ability to divide tasks efficiently among different groups of workers.

(iv)Product Complexity or Variability: For highly complex products or those with frequent changes in design or features, dividing tasks might become challenging due to the need for more integrated and flexible work processes.

(1c)
ADVANTAGES:
(PICK TWO)

(i)Specialization often leads to increased productivity and efficiency as workers become more skilled in performing specific tasks.

(ii) It can lower production costs by streamlining processes and reducing training time for employees in specific tasks.

(iii)Division of labor can result in faster production times and quicker turnaround of products

(iv)Workers can become experts in their assigned tasks, leading to higher quality outputs.

DISADVANTAGES:
(PICK THEEE)

(i)Repetitive tasks may lead to job dissatisfaction and reduced motivation among workers.

(ii)The division of labour can make the production process highly dependent on individual workers or specific groups, making it inflexible and less adaptable to changes

(iii)Specialization might create communication barriers between different sections or groups, hindering effective collaboration.

(iv)Employees may become highly specialized in their tasks, limiting their overall skill set and adaptability to perform other functions within the company.

NUMBER TWO

(2)
(i) Direct Distribution: In this channel, the manufacturer sells the products directly to the customers without involving any intermediaries. This can be done through the manufacturer’s own physical stores, online platforms, or catalog sales. Direct distribution allows the manufacturer to have full control over the customer experience and enables them to gather valuable customer data and feedback.

(ii) Retail Distribution: In this channel, the manufacturer sells the products to retail stores, which then sell them to the end customers. The manufacturer typically works with a network of wholesalers or distributors who handle the logistics of getting the products to the retail stores. Retail distribution allows the manufacturer to reach a wider audience by leveraging the retail stores’ existing customer base and distribution network.

(iii) Wholesale Distribution: In this channel, the manufacturer sells the products in bulk to wholesalers who then sell them to retailers or other businesses. Wholesalers typically purchase large quantities of products at a discounted price and then sell them to smaller retailers who may not have the resources or buying power to purchase directly from the manufacturer. Wholesale distribution allows the manufacturer to reach a wide range of retailers and businesses, especially those in different geographical locations.

(iv) Online Distribution: In this channel, the manufacturer sells the products through online platforms such as their own website, third-party marketplaces, or social media platforms. Online distribution allows the manufacturer to reach a global audience, easily scale their business, and provide a convenient shopping experience for customers. It also eliminates the need for physical retail locations, reducing costs associated with rent and overhead expenses.

(3a)
(PICK ANY FOUR)

(i)Chain stores have numerous outlets or branches, often spread across different geographical locations or areas, allowing them to cater to a wider customer base.

(ii)There’s a consistent branding, layout, product offerings, and operational procedures across all their stores. This uniformity ensures a similar customer experience regardless of the store’s location.

(iii)Chain stores are usually managed centrally, with decisions regarding purchasing, marketing strategies, inventory control, and other key aspects made at a headquarters or central office, then implemented across all locations.

(iv)They benefit from economies of scale due to bulk purchasing, centralized distribution, and standardized operations, which often lead to cost savings and increased efficiency compared to independent retailers.

(v)Chain stores often have a strong and recognizable brand image. They invest in advertising, marketing, and branding efforts to create a consistent identity that customers can easily recognize and trust across all their outlets.

(vi)Chain stores aim for market dominance in their industry by expanding their presence continuously. This expansion strategy involves opening new stores in strategic locations, entering new markets, or acquiring existing businesses to strengthen their market position and reach.

(3bi)
(PICK ANY THREE)

(i)Eliminating middlemen could potentially reduce costs associated with distribution. Direct sales from producers to consumers might cut intermediary fees and markups, making products more affordable.

(ii)By removing middlemen, producers have more control over their distribution channels, allowing them to dictate pricing strategies, manage inventory better, and maintain direct relationships with customers.

(iii)Direct interactions between producers and consumers can lead to clearer communication regarding product specifications, quality expectations, and consumer preferences, potentially reducing misunderstandings or misinterpretations.

(iv)Without intermediaries, the supply chain might become more transparent. Consumers could have better visibility into the origin, quality, and pricing of products, fostering trust and confidence in the producer.

(v)Direct sales can enable producers to respond more quickly to market changes, adapt product offerings, and implement marketing strategies based on real-time feedback and trends.

(3bii)
(PICK ANY THREE)

(i)Middlemen often have extensive knowledge of local markets, consumer preferences, and distribution channels. They facilitate access to diverse markets that producers might not reach efficiently on their own.

(ii)They streamline the distribution process, handling tasks like warehousing, transportation, and inventory management, which can be complex and costly for producers to manage independently.

(iii)Middlemen can absorb certain risks associated with fluctuations in demand, market uncertainties, or changes in consumer preferences. They often buy products in bulk from producers, taking on the risk of unsold inventory.

(iv)They provide specialized services like marketing, promotion, and after-sales support, enhancing the visibility and market reach of products. This allows producers to focus on their core competencies.

(v)Middlemen help in reducing transaction costs and time for producers by efficiently connecting them to the market, allowing them to concentrate on production rather than distribution and sales.

(4a)
(i)Facilitating Stock Trading: The primary function of a stock exchange is to provide a platform for buying and selling stocks.

(ii)Price Discovery: Stock exchanges play a crucial role in determining the prices of securities. Through the continuous buying and selling of stocks.

(iii)Providing Market Information: Stock exchanges provide real-time information about stock prices, trading volumes, and other relevant data.

(iv)Facilitating Capital Formation: Stock exchanges enable companies to raise capital by issuing shares to the public.

(4b)
(i)Press Releases: Press releases are written statements provided to the media to announce news or updates about a company, product, or event. They are designed to capture the attention of journalists and provide them with information that can be used in news articles or broadcasts.

(ii)Social Media: Social media platforms like Facebook, Twitter, Instagram, and LinkedIn have become powerful tools for PR. They allow companies to directly engage with their audience, share news and updates, and build brand awareness. Social media also enables two-way communication, allowing companies to respond to feedback and address customer concerns.

(iii)Media Interviews: Media interviews provide an opportunity for companies or individuals to share their expertise, opinions, or news with journalists. These interviews can take place on television, radio, or in print. By participating in media interviews, companies can enhance their visibility, establish credibility, and shape public perception.

(iv)Events and Sponsorships: PR professionals often organize events or sponsorships to create positive associations with their brand. This can include hosting press conferences, product launches, or participating in industry conferences and trade shows. These events help generate media coverage, attract attention, and foster relationships with stakeholders.

(5a)
The marketing term that refers to all the statements mentioned above is Marketing Mix.

(5b)
(iv)Design, brand name, and logo: Refers to the “Product” aspect of the marketing mix, which involves designing and managing the features, appearance, and branding of the product.

(ii)Cost of the product, payment terms, and discount: Falls under the “Price” element of the marketing mix, encompassing the pricing strategy, terms of payment, and any discounts or incentives offered.

(iii)Means of making the public aware and encouraging purchases: Related to “Promotion” in the marketing mix, which includes advertising, sales promotions, public relations, and other methods used to create awareness and stimulate demand.

(iv)Ways of taking the product to the customers when and where needed: This aligns with the “Place” component of the marketing mix, which involves distribution channels, logistics, and strategies to ensure the product reaches customers at the right time and place.

(5c)
(PICK ANY FIVE)

(i)Customer Awareness and Acquisition: Marketing helps businesses reach potential customers, create awareness about their products or services, and acquire new customers through various channels and strategies.

(ii)Brand Building and Differentiation: It enables businesses to build a strong brand identity, differentiate themselves from competitors, and establish a unique position in the market.

(iii)Customer Retention and Loyalty: Through effective marketing, businesses can engage with existing customers, build relationships, and foster loyalty, encouraging repeat purchases and long-term relationships.

(iv)Market Research and Understanding: Marketing involves conducting market research to understand consumer needs, preferences, and market trends. This information helps in developing products/services that meet customer demands.

(v)Revenue Generation: Marketing activities drive sales and revenue growth by promoting products/services effectively, thereby contributing to the financial success of the business.

(vi)Adaptation and Innovation: Marketing insights help businesses adapt to changing market conditions, innovate products/services, and stay competitive in dynamic market environments

(6i)
Merger is when two or more companies combine to form a new entity, often with the aim of enhancing competitiveness, expanding market reach, or achieving synergy. WHILE Acquisition involves one company buying another company, gaining control by obtaining a significant portion or all of its ownership. The acquired company might retain its identity or be absorbed.

(6ii)
Consortium is a collaboration between multiple companies or entities to work together on a project or a specific goal while maintaining their individual identities and independence. WHILE Trust refers to a legal arrangement where one party holds property or assets for the benefit of another. It involves a trustee managing these assets for the beneficiaries

(6iii)
Premium is the amount paid periodically (usually monthly or annually) for an insurance policy or financial product. WHILE Indemnity refers to compensation for losses or damages suffered, usually under the terms of an insurance policy or a contract.

(6iv)
Nominal Capital is total value of a company’s authorized shares. It’s the maximum amount for which the company can issue shares. WHILE Called-up Capital is the portion of the nominal capital that the company has requested shareholders to pay or has been legally called upon to pay.

(6v)
Gross Profit is the difference between revenue/sales and the cost of goods sold. It represents the earnings before deducting other expenses such as operating expenses, taxes, etc. WHILE
Net Profit is the profit after deducting all expenses, including operating expenses, taxes, interest, and other costs from the gross profit.

(7a)
Span of control refers to the number of subordinates or employees that a manager or supervisor can effectively oversee, direct, and manage. It defines the extent of authority and responsibility a manager has over a team or a group of individuals.

(7b)
(PICK ANY THREE)

(i)Ethical Sourcing and Labor Practices: Ensuring that raw materials like leather or textiles are ethically sourced, and promoting fair labor practices throughout the supply chain. This includes fair wages, safe working conditions, and compliance with labor regulations.

(ii)Environmentally Friendly Production: Implementing sustainable practices in manufacturing processes to reduce the environmental impact. This could involve using eco-friendly materials, minimizing waste, optimizing energy usage, and adopting recycling or upcycling initiatives.

(iii)Community Engagement and Philanthropy: Engaging with local communities by supporting social causes, investing in community development programs, or contributing to local charities. This involvement helps improve the quality of life in surrounding areas.

(iv)Product Safety and Quality Standards: Ensuring the safety and quality of products through rigorous testing and adhering to industry standards. This includes using non-toxic materials and providing clear product information to consumers.

(v)Employee Welfare: Prioritizing employee well-being by offering fair wages, benefits, training programs, and opportunities for professional growth. Creating a positive work environment fosters employee satisfaction and loyalty.

(7ci)
Authority : Authority refers to the legitimate power or right to give orders, make decisions, and control resources within an organization. It’s a crucial aspect that defines the hierarchical structure within a company, determining who has the power to direct others, make decisions, and ensure that tasks are carried out effectively

(7cii)
Accountability: Accountability refers to the obligation of individuals or teams to accept responsibility for their actions, decisions, and performance. It involves answering for the outcomes of tasks or responsibilities assigned to them. This concept is essential for fostering transparency, trust, and effectiveness within an organization.

(7cii)
Delegation: Delegation in management within commerce refers to the process of entrusting authority, responsibility, and tasks to subordinates or lower-level employees by higher-level managers or supervisors. It involves assigning specific duties or decision-making power to others while retaining overall accountability.