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(iii) Company secretary
(iv) Advertising agent
(i)He organises and cordinates other factors of production.
(ii)He provides capital needed.
(i) Extractive industry : This is the industry that involves in bringing out natural resources from land and sea. Examples: Farmers and fishermen.
(ii) Constructive Industry : It is the type of industry that involves in assembling of manufactured products into usable forms. Tailors and bricklayers.
(iii) Manufacturing Industry : This industry involves in conversion of raw materials to finished goods eg limestone to cement and cotton to textile materials.
(iv) Tertiary Industry : This industry refers to all the people involved in the distribution and exchange of goods produced by the industrial sector eg transporters, exporters.
Personal selling can be defined as an oral presentation in a conversation with one or more potential buyers for the purpose of making sales.The aim is to inform and encourage the customer to buy or at least try the product
(i)It arouses interest of buyers:This is because the buyer will be given the opportunity to ask question about the suitability of the product
(ii)It creates product awareness:The product will be popular among the customers or consumers
(iii)product information gathered from personal contact can be used to develop product preferences based on consumer needs
(iv)Personal selling enables inputs at individual level to be gathered by the company executives which non personal cannot do
(i)It is a relatively expensive method of selling.This is so because high capital costs are required
(ii)It is an extremely labour intensive method:it requres a lot of labour to perform the personal selling
Adverse or deficit balance of payment
(i)Foreign exchange control:Foreign exchange control involves the rationing foriegn exchange in order to reduce balance of payment deficit
(ii)Expenditure reduction:This is used in order to cut down domestic demand and reduce imports
(iii)Expenditure switching:This involves the manipulationof exchange rates to induce people to patronize locally made goods.
(iv)Fiscal control:This involves the raising of tarriffs ie increase import duties in order to reduce balance f payment deficit
(v)Devaluation:Devaluation cheapens exports and makes imports expensive,thus improving balance of payments
(vi)Reduction of imports: The government can restricts imports by the use of tarriffs,quotas and outright embargo on imports
15 cartons of sweets @ N2,000 per carton
= 15 x 2000 = N30,000
25 cartons of milk @ N4000 per carton
= 25 x 4000 = N100,000
154 cartons of sugar @ N3,000 per carton
= 15 x 3000 = N45,000
17 cartons of soap @ N5,000 per carton
= 17 x 5,000 = N85,000
(i) Total cost price
Les 10% trade discount = 10% x 260,000
Invoice price = 26,000
Less 6% cash discount (8,040)
Cash paid N125,960
(ii) mark up = profit/cost price x 100/1
Therefore 20/100 = profit/125960
Therefore gross profit = 125,960 x 20/100 = N25,192
Selling price = cost price + Gross profit
= 125,960 + 25192 = N151,152
(iii) Net profit
Gross profit – Expense
Rent and rates = N3,500
Salaries and wages = N8,000
Fuel = N2,000
Electricity = N1,500
Net Profit = 25,192 – 15,000
See Past WAEC Commerce Answers below
E-commerce ( electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network,primarily the internet
-The biggest advantage of privatization is that once a privatization is done completely there is no interference from political leaders and also one does not need to do undue favor to them which in itself is a big boost when it comes to doing business and increasing profitability.
-It increases the overall efficiency and reduces the bureaucratic culture which is the main culprit because typically in government organizations work happens at its own leisurely pace which results in delay in decision making and therefore reduces the effectiveness and competence of public sector enterprise
-As far government is concerned it has also benefits from doing privatization because majority of governments all over the world has fiscal deficit and by doing privatization government can reduce fiscal deficit to an extent, however full control is possible only when government control its unnecessary expenditures
-It reduces bereaucratic administrative bottle neck
-Private companies do not care about the society and their main motive is to earn profits, which is with contrast to government companies which keeps doing social work and therefore if privatization happens it will result in fewer funds for society because private companies have no obligation to do social work
-Privatization also affects the employees because in private sector enterprises there is emphasis on performance which indirectly results in work pressure and meetingdeadlines or targets and individuals who have been doing work for years without much pressure find it difficult to adjust to new setting and many end up resigning from their service
– There is a risk that it may take decisions of starting a project which results in short term benefits but may not good for long term
-High rate of public interest abuse
Communication is simply the act of transferring information from one place to another
-Radio and Television
standing order is an instruction to a bank by an account holder to make regular fixed payments to a particular person or organization
bank draft is a payment on behalf of a payer that is guaranteed by the issuing bank. A draft ensures the payee a secure form of payment
Legal tender is a medium of payment recognized by a legal system to be valid for meeting a financial obligation
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Money orders are a secure payment method. They are convenient, affordable,and widely accepted. Money orders are a good way to send cash that never expires
I.O.U is usually an informal document acknowledging debt. An IOU differs from a promissory note in that an IOU is not a negotiable instrument and does not specify repayment terms such as the time of repayment
– The location of the warehouse should be suitable and convenient. It should either be near the source of production or the market. This willnreduce the transportation cost and hence cost of production
– The warehouse should be designed to fit the need of the product. A warehouse storing perishable goods e.g. milk should have refrigeration services. This will prevent damage to the good and loss to the producer
– An effective warehouse is one that is equipped with machinery that makes the handling of the goods easier. When dealing with bulky goods, the warehouse should have cranes to carry them. This will make the warehouse more effective in the handling of goods
– A warehouse should be fitted with equipment to deal with an emergency. Safety of the workers should be given priority. The warehouse should have firefighting equipment and first aid tools to deal with such incidences
– A warehouse should be in a place that is easily accessible by whoever uses it. It does not make sense to locate the warehouse in a remote area. This will only make it difficult to access it and you will incur additional costs of accessing it
– The warehouse should be in a place with good infrastructure. Roads and communication lines will make the transporting of goods easier and encourage the business operations of the firm. A warehouse should be in a well-connected area
– A warehouse should be spacious enough. This is to promote easy movement in and out of the goods. It will also help in the organization of thewarehouse
-Storage facilities:Warehouses provide storage facilities to producers who always find it impossible to sell all what they produce at the same time
-Price stabilization:In order to avoid price flunctuation,goods produced ahead of demand are warehoused and supplied at market according to demand
-Checking of smuggling:state warehouses provide spaces where contrabands goods are siezed kept
-Provision of employment opportunities:It provides employment opportunities for different categories of workers eg store manager,clerks etc
-Generation of revenue:It generates revenues to individuals and government by hiring them to other users
-Promotion of economic growth:By encouraging further production with spaces made available for storing of goods produced ahead of demand,stabilizing prices etc.