2025/2026 WAEC Commerce Live Questions and Answers

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COMMERCE- ESSAY-ANSWERS
(1a)
Manufacturing: Manufacturing involves the production of goods on a large scale using machines and labor. It typically involves transforming raw materials into finished products, such as electronics, textiles, or food products. WHILE Construction: Construction involves the creation of buildings, infrastructure, or other physical structures. It typically involves on-site labor and materials to build or repair structures, such as roads, bridges, or buildings.

(1b)
(i)Increased reach: E-commerce allows businesses to reach a global audience and expand their customer base.
(ii)Convenience: E-commerce provides customers with the convenience of shopping online 24/7, from anywhere with an internet connection.
(iii)Lower costs: E-commerce can reduce costs associated with traditional brick-and-mortar stores, such as rent and inventory costs.
(iv)Increased efficiency: E-commerce can streamline business processes, such as order processing and inventory management, making it more efficient.

(1c)
(i)Facilitating exchange: Commerce facilitates the exchange of goods and services between buyers and sellers.
(ii)Providing employment: Commerce provides employment opportunities in various industries, such as retail, manufacturing, and logistics.
(iii)Generating revenue: Commerce generates revenue for businesses, governments, and individuals through sales, taxes, and other means.
(iv)Promoting economic growth: Commerce promotes economic growth by stimulating innovation, investment, and trade.
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(2ai)
Cartel: A cartel is an agreement between competing businesses to control prices, limit production, or divide markets. Cartels are often considered anti-competitive and may be illegal. WHILE Consortium: A consortium is a collaborative agreement between two or more businesses to work together on a specific project or venture. Consortia are often formed to share resources, expertise, or risk.

(2aii)
Holding company: A holding company is a parent company that owns and controls one or more subsidiary companies. The holding company typically has a controlling interest in the subsidiary. WHILE Subsidiary company: A subsidiary company is a company that is owned and controlled by a parent company or holding company. The subsidiary operates as a separate entity but is ultimately controlled by the parent company.

(2bi)
(i)Partner’s capital: The partners can contribute capital to the partnership.
(ii)Bank loans: The partnership can obtain loans from banks or other financial institutions.
(iii)Retained earnings: The partnership can retain earnings from profits to finance future growth.
(iv)Private investors: The partnership can attract private investors who can provide capital in exchange for a share of the business.

(2bii)
(i)Loss of control: Saul may be reluctant to give up control of his business and decision-making authority.
(ii)Different business cultures: The two businesses may have different cultures, values, or management styles that may not be compatible.
(iii)Liability concerns: Saul may be concerned about taking on liability for Abu’s business debts or obligations.
(iv)Different goals or objectives: The two businesses may have different goals or objectives that may not align with each other.
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(3a)
An Export Promotion Council

(3b)
(i) Market Research and Analysis: Providing insights on foreign markets, trends, and consumer preferences to help local businesses identify opportunities.
(ii) Trade Promotion and Marketing: Organizing trade fairs, exhibitions, and marketing campaigns to promote local products in foreign markets.
(iii) Export Facilitation: Assisting local businesses with export procedures, documentation, and logistics to ensure smooth trade.
(iv) Capacity Building and Training: Providing training and capacity-building programs for local businesses to enhance their export capabilities and competitiveness.

(3c)
(i) Market Diversification: Expanding market reach beyond domestic borders to increase sales and revenue.
(ii) Economic Growth: Boosting economic growth through increased trade, job creation, and foreign exchange earnings.
(iii) Comparative Advantage: Leveraging comparative advantages in production costs, skills, or resources to compete globally.
(iv) Access to New Technologies: Gaining access to new technologies, innovations, and best practices through international trade and collaboration.
(v) Increased Competitiveness: Enhancing domestic industries’ competitiveness through exposure to global markets and competition.
(5a)
The type of discount Felisco Ltd. could offer is a seasonal discount. This type of discount is offered during periods of low demand to stimulate sales and encourage customers to purchase products.

(5b)
(i)Increase sales volume: By offering a discount, the company can attract more customers and increase sales volume during a period of low demand.
(ii)Clear inventory: The company can clear out inventory that may be taking up storage space and reduce the risk of products becoming obsolete.
(iii)Build customer loyalty: Offering discounts can help build customer loyalty and encourage repeat business.
(iv)Maintain production levels: By stimulating sales during a period of low demand, the company can maintain production levels and avoid layoffs or reduced production capacity.

(5c)
(i)Collecting duties and taxes: Customs authorities collect duties and taxes on imported goods.
(ii)Enforcing trade regulations: Customs authorities enforce trade regulations, such as quotas and embargoes.
(iii)Inspecting cargo: Customs authorities inspect cargo to ensure compliance with regulations and to detect contraband.
(iv)Facilitating trade: Customs authorities facilitate trade by providing clear guidelines and procedures for importing and exporting goods.
(v)Protecting national security: Customs authorities play a role in protecting national security by detecting and preventing the importation of prohibited goods.

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(6a)
(i)Commercial banks
(ii)Investment banks
(iii)Central banks
(iv)Merchant banks
(v)Savings banks

(6b)
(i)Reserve requirements: The central bank can require commercial banks to maintain a certain percentage of their deposits in reserve.
(ii)Interest rates: The central bank can influence interest rates to control borrowing and lending activities.
(iii)Capital requirements: The central bank can require commercial banks to maintain a certain level of capital to absorb potential losses.
(iv)Supervision and inspection: The central bank can supervise and inspect commercial banks to ensure compliance with regulations.
(v)Liquidity requirements: The central bank can require commercial banks to maintain a certain level of liquidity to meet their short-term obligations.

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(7a)
Marketing is the process of promoting and selling products or services to meet the needs and wants of customers.

(7b)
(i)Product development: Marketing involves developing products that meet the needs and wants of customers.
(ii)Promotion: Marketing involves promoting products through various channels, such as advertising and sales promotions.
(iii)Distribution: Marketing involves ensuring that products area distributed to customers through various channels.

(7c)
(i) Customer service; Customer service refers to the support and assistance provided to customers before, during, and after a purchase.
(ii) Sales promotion; Sales promotion refers to activities designed to stimulate sales, such as discounts, contests, and free samples.
(iii) Exhibition; An exhibition is an event where companies display their products or services to potential customers.

(iv) After-sales service; After-sales service refers to the support and assistance provided to customers after a purchase, such as maintenance, repair, and troubleshooting.