Neco Commerce Answers 2021 – 11th August 2021

Neco Answers 2021
Neco Answers 2021

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COMMERCE-THEORY
(2a)
(i) Cartel is an agreement between two or more producers of the same commodity to regulate the production and sale of the product with a view to obtain dominance in the market.

(ii) Consortium: this is an agreement, combination, or group (as of companies) formed to undertake an enterprise beyond the resources of any one member.

(iii) Trust is an arrangement in which a party gives control of his or her property to another party (trustee) for the benefit of a third party (the beneficiary).

(2b)
(i) To obtain the economies of large scale.
(ii) To gain security from cut- throat competition.
(iii) To diversify their activities.
(iv) To raise enough capital for expansion.
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(3a)
(i)Financing an Enterprise
(ii)Setting Prices
(iii)Product and Service Management

(i)Financing an Enterprise; It takes money to make money. As a business owner, an important function of marketing a product is finding the money through investments, loans, or your personal capital to finance the creation and advertising of your goods or services.

(ii)Setting Prices; Setting the correct price for your product or service can be a challenge. If you price it too high, you might lose customers but if you price it too low you might be robbing yourself of profits.

(iii)Product and Service Management; Once you’ve determined the target market and set the price of your product or service, the goal becomes to effectively manage the product or service. This involves listening to customers, responding to their wants and needs, and keeping your products and services fresh and up to date.

(3bi)
Form utility; refers to how well a product or service meets the customer’s needs. For example, a company might design a product to target a specific client’s needs or wants. In other words form utility might include offering consumers lower prices, more convenience, or a wider selection of products.

(3bii)
Possession utility; refer to the amount of usefulness or perceived value from owning a product. For example, owning a car or truck might be considered to have a high possession utility. In other words It also, increasing the ease of ownership boosts the possession utility or the perceived value of a product.
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(4a)
Entrepot: this is a port where goods for import or export can be stored without paying import duties.

(4b)
(i) Protecting established domestic industries from foreign competition: If foreign goods and services easily enter the domestic market, it increases domestic competition.
(ii) Keeping infant industries until they become mature and internationally competitive: Some countries want to make sure their strategic industries thrive. Such industries usually contribute to national security, employment, technology, or value chains with various other industries.
(iii) Securing domestic employment and income: Imports benefit foreign producers as money flows from domestic to them. Besides, when imports increase, they will increase production. It creates jobs and income in their country but not domestically.
(iv) To generate government revenue: By imposing import tariffs, the government obtains a source of income other than individual taxes or business taxes.
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(8i)
Fear of domination; members are always suspicious and afraid of each other because of the uneven development in the region.

(8ii)
Political Instability; the constant changes in government among member nations as a result of coups lead to political instability in the sub-regions.

(8iii)
Currency differences; the differences in currency among member nations
had made the transfer of capital difficult and also reduced trading activities.

(8iv)
Political Ideology /Colonial Ties; the West African region is split into
French and English Speaking countries. Member countries still lean to their colonial masters.
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(9a)
A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding contract. The breach could be anything from a late payment to a more serious violation such as the failure to deliver a promised asset.

(9b)
A contract is a legally binding agreement between two or more people which is enforceable in a court of law.

(9c)
A contract under seal, or a deed, is a written document that, when “sealed”, is distinguishable from a contract. A deed is a formal document that gives the clear indication that a person or entity gives its most sincere promise that they will fulfil contractual obligations.

(9d)
A void contract is a contract that isn’t legally enforceable, starting from the time it was created. While both a void and voidable contract are null, a void contract cannot be ratified.

(9e)
Terminating a contract means legally ending the contract before both parties have fulfilled their obligations under the terms of the contract.
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Neco Commerce Answers 2021

The long-awaited and highly anticipated 2021 NECO Commerce (Obj & Essay) Solution Expo Questions and Answer to be written in July/August is around the corner for Senior School Certificate Examination (SSCE).

Here is the schedule of the examination.

Wednesday 11th August 2021

  • Paper Ill & ll: Objective & Essay – Commerce 10:00am – 12:40pm

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