Commerce Neco Past Questions And Answers (Objective and Theory)

Multiple Choice Questions:

 

What is the main function of the World Trade Organization (WTO)?

a) Currency exchange

b) International peacekeeping

c) Facilitating global trade negotiations

d) Environmental conservation

 

Answer: c) Facilitating global trade negotiations

 

In the marketing mix, what does the ‘P’ in ‘4Ps’ stand for?

a) Product

b) Promotion

c) Public relations

d) Pricing

 

Answer: a) Product

 

What is the significance of a balance of payments in international trade?

a) Balancing domestic budgets

b) Managing inflation

c) Monitoring trade deficits or surpluses

d) Controlling interest rates

 

Answer: c) Monitoring trade deficits or surpluses

 

Define the term ‘Entrepreneurship’ and provide two characteristics of a successful entrepreneur.

 

a) Entrepreneurship is the process of starting a business venture and taking on financial risks. Characteristics include innovation and risk-taking.

 

Answer: Correct

 

What is the purpose of a market segmentation strategy in marketing?

a) Reducing competition

b) Targeting specific customer groups

c) Maximizing production costs

d) Avoiding advertising expenses

 

Answer: b) Targeting specific customer groups

 

What is the role of a trade union in the labor market?

a) Representing the interests of employers

b) Advocating for workers’ rights

c) Regulating commodity prices

d) Facilitating international trade agreements

 

Answer: b) Advocating for workers’ rights

 

Define the term ‘E-commerce’ and provide two advantages of online business.

 

a) E-commerce refers to electronic transactions conducted over the internet. Advantages include global reach and reduced operational costs.

 

Answer: Correct

 

What is the primary objective of a feasibility study in the business planning process?

a) Assessing market competition

b) Evaluating the financial viability of a project

c) Developing advertising campaigns

d) Implementing cost-cutting measures

 

Answer: b) Evaluating the financial viability of a project

 

Differentiate between depreciation and amortization in accounting.

a) Depreciation is the allocation of the cost of tangible assets, while amortization is for intangible assets.

b) Depreciation and amortization are interchangeable terms.

c) Depreciation applies to intellectual property, while amortization applies to machinery and equipment.

 

Answer: a) Depreciation is the allocation of the cost of tangible assets, while amortization is for intangible assets.

 

What is the role of a SWOT analysis in strategic planning?

a) Identifying social trends

b) Analyzing internal strengths and weaknesses

c) Predicting stock market fluctuations

d) Implementing short-term marketing tactics

 

Answer: b) Analyzing internal strengths and weaknesses

 

Additional Theory Questions:

 

Discuss the concept of ‘Corporate Social Responsibility’ and its impact on business practices.

 

Answer: Corporate Social Responsibility involves businesses behaving ethically and contributing to societal well-being. It includes environmental stewardship, ethical labor practices, and community engagement, influencing a company’s reputation and customer loyalty.

 

Explain the term ‘Monetary Policy’ and how it affects economic stability.

 

Answer: Monetary policy involves the management of money supply and interest rates by a central bank. By influencing borrowing costs and liquidity, it impacts inflation, employment, and overall economic stability.

 

Describe the importance of branding in marketing and provide an example of a successful brand.

 

Answer: Branding establishes a unique identity for a product or service, influencing consumer perception. Apple Inc. is an example of a successful brand known for innovation and design.

 

Define the term ‘Market Segmentation’ and provide two criteria used for segmenting consumer markets.

 

Answer: Market segmentation involves dividing a target market into distinct groups. Criteria include demographics (age, gender) and psychographics (lifestyle, interests).

 

Discuss two advantages and two disadvantages of a sole proprietorship business structure.

 

Answer: Advantages of a sole proprietorship include ease of formation and direct control. Disadvantages include unlimited liability and limited access to capital.

 

Explain the concept of ‘Supply Chain Management’ and its role in business efficiency.

 

Answer: Supply Chain Management involves the coordination of activities to ensure the efficient flow of goods and services from production to consumption. It enhances efficiency, reduces costs, and improves customer satisfaction.

 

What are the characteristics of ‘Perfect Competition’ in the market structure, and provide an example if possible?

 

Answer: Perfect competition involves a large number of buyers and sellers, identical products, and easy entry or exit. Agricultural markets often resemble perfect competition.

 

Discuss the impact of technology on modern business operations.

 

Answer: Technology has revolutionized business by enhancing communication, automating processes, and expanding global reach. It fosters innovation but may also lead to job displacement and ethical considerations.

 

Explain the concept of ‘Trade Surplus’ and its implications for a country’s economy.

 

Answer: A trade surplus occurs when a country exports more than it imports. It can lead to increased foreign exchange reserves, currency appreciation, and potential economic growth.

 

Differentiate between a debit card and a credit card, highlighting their respective advantages and disadvantages.

 

Answer: A debit card deducts funds directly from a linked account, while a credit card allows borrowing up to a credit limit. Debit cards offer convenience but lack credit-building benefits, while credit cards provide a credit history but may lead to debt if misused.