NABTEB 2024 COMMERCE (ESSAY & OBJ ) ANSWERS

(1b)
(i) Access to Markets: Commerce provides access to wider markets beyond the local village, allowing traders to sell their goods to customers from other regions or even countries.

(ii) Diversification of Goods: Traders in remote villages can obtain a variety of goods through commerce, enabling them to meet the diverse needs and preferences of their customers.

(iii) Income Generation: Commerce offers opportunities for traders to earn income through buying and selling goods at different price points, thereby improving their financial stability.

(iv) Skill Development: Engaging in commerce often requires traders to develop skills in negotiation, marketing, logistics, and financial management, enhancing their capabilities over time.

(v) Improvement in Living Standards: Successful commerce can lead to improved living standards for traders and their families, as increased income allows for better access to education, healthcare, and other necessities.

(vi) Infrastructure Development: The presence of commerce often leads to the development of infrastructure such as roads, markets, and communication networks, which benefit traders and the community as a whole.
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(2a)
Foreign trade, also known as international trade, refers to the exchange of goods, services, and capital between different countries. It involves importing and exporting goods and services across international borders, with the goal of earning profits and improving economic welfare.

(2b)
(i) Protecting Domestic Industries: Countries may impose trade restrictions such as tariffs (taxes on imports) or quotas (limits on the quantity of imports) to protect their domestic industries from foreign competition. This is often done to prevent job losses and to promote economic self-sufficiency.

(ii) National Security: Some countries restrict trade in goods that are considered essential for national security, such as military equipment and sensitive technologies. Restrictions ensure that critical resources are not overly dependent on foreign suppliers.

(iii) Protecting Infant Industries: Developing countries may restrict trade to protect new or emerging industries that are not yet strong enough to compete internationally. This protection allows these industries to grow and become competitive in the long term.

(iv) Preventing Dumping: Dumping occurs when foreign companies sell goods in another country at prices below their production costs or below what they charge in their home market. Countries may restrict such imports to protect their domestic industries from unfair competition.

(v) Maintaining Standards and Regulations: Countries often restrict imports that do not meet their health, safety, or environmental standards. This ensures that imported goods are of acceptable quality and do not pose risks to consumers or the environment.

(vi) Reducing Trade Deficits: Countries with large trade deficits (importing more than they export) may restrict imports to reduce their trade imbalances. This is aimed at improving the country’s balance of payments and stabilizing its currency.
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(3a)
Hawking is a type of informal retailing where goods are sold in public places like streets or markets, without a fixed location. It is commonly found in developing countries or areas with limited retail infrastructure.

(3b)
Mobile shops are retailers that sell from vehicles like vans or trucks, traveling to different locations on a regular schedule. This format provides convenience for customers in areas with limited retail options.

(3c)
Chain stores are multiple outlets owned and operated by a single company, offering standardized products, pricing, and branding across locations. This format allows for economies of scale and efficient supply chain management.

(3d)
Supermarkets are large self-service stores that offer a wide range of food and household products, organized into departments with shelves and checkout counters. They emphasize convenience, variety, and competitive pricing.

(3e)
Department stores are large retail establishments that offer a broad range of products, including clothing, cosmetics, and electronics, organized into departments. They often provide additional services like credit facilities and product demonstrations.
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(4a)
Marketing is the process of promoting and selling products, services, or ideas to potential customers. It involves understanding customer needs, creating value, and communicating that value to potential customers.

(4b)
(i) Product: This element involves the features, quality, design, brand name, packaging, and other attributes that make up the product or service being offered.

(ii) Price: Price refers to the amount customers pay for the product or service. Setting the right price involves considering factors such as costs, competitor pricing, customer perception of value, and pricing strategies (e.g., penetration pricing, skimming pricing, value-based pricing).

(iii) Place: Place (or distribution) involves making the product or service available to the target customers at the right time and in the right location. Distribution channels, logistics, warehousing, and retail outlets all fall under this element.

(iv) Promotion: Promotion encompasses all the activities that communicate the merits of the product or service and persuade target customers to buy it. This includes advertising, sales promotions, public relations, direct marketing, and personal selling.
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(5a)
(i) Durability: Money should be able to withstand wear and tear.
(ii) Portability: Money should be easy to carry and transport.
(iii) Divisibility: Money should be divisible into smaller units.
(iv) Uniformity: Money should be identical and consistent in quality.
(v) Acceptability: Money should be widely accepted as a medium of exchange.

(5b)
(i) Facilitates Trade: Money enables efficient trade by providing a common medium of exchange, making it easier to buy and sell goods and services.

(ii) Simplifies Transactions: Money eliminates the need for bartering, making transactions simpler and faster.

(iii) Stores Value: Money allows individuals and businesses to store value for future use, providing a way to save and invest.

(iv) Provides Liquidity: Money provides liquidity, enabling businesses to meet financial obligations and take advantage of new opportunities.

(v) Enhances Economic Efficiency: Money promotes economic efficiency by facilitating specialization, division of labor, and economic growth.
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(6a)
(i) Accepting Deposits: Commercial banks accept money from individuals and businesses, providing a safe place to store funds.

(ii) Making Loans: Banks lend money to customers, providing financing for various purposes.

(iii) Providing Checking Services: Banks offer checking accounts, allowing customers to write checks and make payments.

(iv) Facilitating Payments: Banks enable customers to make payments through various channels, such as credit cards, debit cards, and online banking.

(v) Providing Investment Services: Banks offer investment products, like certificates of deposit (CDs) and treasury bills.

(vi) Offering Advisory Services: Banks provide financial advice and guidance to customers, helping them manage their finances effectively.

(6b)
(i) Current Account
(ii) Savings Account
(iii) Fixed Deposit Account
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(7a)
(i) Promoting Business: Chambers promote local businesses, supporting their growth and development.

(ii) Advocacy: Chambers represent business interests, influencing policy and legislation.

(iii) Networking: Chambers provide opportunities for business leaders to connect, collaborate, and build relationships.

(iv) Information Dissemination: Chambers gather and share relevant data, research, and industry insights with members.

(v) Community Development: Chambers contribute to local economic development, enhancing the business environment and quality of life.

(7b)
(i) Manufacturers Association of Nigeria (MAN)
(ii) Nigeria-British Chamber of Commerce (NBCC)
(iii) Nigeria Economic Summit Group (NESG)
(iv) Nigerian-American Chamber of Commerce (NACC)
(v) Nigerian Association of Small Scale Industrialists (NASSI)
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(8a)
Indigenisation refers to the process of transferring ownership or control of businesses, industries, or resources from foreign or external entities to local or indigenous individuals, groups, or communities.

(8b)
(i) Economic Empowerment: To promote economic development and empower local communities by giving them control over resources and industries.

(ii) Sovereignty: To assert national sovereignty and reduce dependence on foreign powers or corporations.

(iii) Resource Control: To gain control over natural resources and strategic industries, ensuring their development and exploitation benefit the local population.

(iv) Job Creation: To create employment opportunities for locals and reduce reliance on foreign labor.

(v) Cultural Preservation: To preserve cultural heritage and traditional industries, protecting them from external influence or exploitation.

(vi) Revenue Generation: To generate revenue and increase tax base, as indigenised businesses contribute to the local economy and treasury.
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(9a)
Quantity discount value:
Quantity discount = 5% of N100,000
= 0.05 x N100,000
= N5,000

(9b)
Cash discount value:
Cash discount = 10% of (N100,000 – N5,000)
= 10% of N95,000
= 0.10 x N95,000
= N9,500

(9c)
Net amount payable:
Net amount = Original price – Quantity discount – Cash discount
= N100,000 – N5,000 – N9,500
= N85,500
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(10a)
Advertising is the process of promoting a product, service, or idea to potential customers, aiming to influence their purchasing decisions and build brand awareness.

(10b)
(i) Increased Sales: Advertising helps increase sales by reaching a larger audience, creating demand, and differentiating the product from competitors. This leads to higher revenue and profits for the producer.

(ii) Brand Building: Advertising helps build and maintain a brand image, creating a unique identity and reputation. This can lead to customer loyalty, repeat business, and positive word-of-mouth.

(iii) Market Expansion: Advertising enables producers to enter new markets, reach new customers, and expand their market share. This can lead to new business opportunities and growth.

(iv) Competitive Advantage: Advertising provides a competitive advantage by differentiating the product, creating a unique selling proposition (USP), and making the product more attractive to customers. This can help the producer stay ahead of competitors and maintain market leadership.
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