NABTEB GCE 2023 Commerce (ESSAY & OBJ) Answers -(27th November 2023)

(1a)
(i) Accepting Deposits
(ii) Providing Loans and Credit
(iii) Issuing Credit Cards
(iv) Facilitating Payments
(v) Acting as a Financial Intermediary

(1b)
(i) Accepting Deposits: Commercial banks accept various types of deposits from individuals and businesses, such as savings accounts, current accounts, and fixed deposits.

(ii) Providing Loans and Credit: Commercial banks provide loans and credit facilities to individuals and businesses for various purposes, such as personal loans, home loans, business loans, and lines of credit.

(iii) Issuing Credit Cards: Commercial banks issue credit cards to individuals, allowing them to make purchases and borrow money up to a certain credit limit.

(iv) Facilitating Payments: Commercial banks provide payment services, such as issuing checks, facilitating electronic fund transfers, and offering online banking platforms for convenient and secure transactions.

(v) Acting as a Financial Intermediary: Commercial banks act as intermediaries between savers and borrowers, channeling funds from depositors to borrowers, thereby promoting economic growth and development.

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(2a)
The Nigeria Ports Authority is a government agency responsible for the management and operation of ports in Nigeria. It oversees the activities and administration of ports across the country, including seaports, river ports, and terminals.

(2b)
(i) Port Management: The NPA manages and operates the ports in Nigeria, ensuring efficient and effective handling of maritime activities, including vessel traffic, cargo handling, and port infrastructure maintenance.

(ii) Revenue Collection: The NPA collects revenue from various sources, such as port dues, charges, and levies, which contribute to the government’s revenue and help in the development and maintenance of port facilities.

(iii) Safety and Security: The NPA is responsible for ensuring the safety and security of ports, vessels, and cargo. It implements measures to prevent security threats, maintain order, and enforce regulations for the protection of the ports and its users.

(iv) Infrastructure Development: The NPA plays a crucial role in the development and maintenance of port infrastructure, including berths, quays, jetties, and cargo handling facilities. It invests in infrastructure projects to enhance the efficiency and capacity of the ports.

(v) Port Planning and Development: The NPA engages in strategic planning for the development of ports, including expansion projects, modernization initiatives, and the implementation of technology-driven solutions to improve port operations.

(vi) Trade Facilitation: The NPA facilitates international trade by ensuring smooth and efficient movement of goods and cargo through the ports. It collaborates with relevant stakeholders to streamline customs processes, reduce bottlenecks, and enhance trade facilitation measures.
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(3)
(a) Price control boards: Price control boards protect consumers by regulating and controlling the prices of goods and services. They ensure that prices are fair and reasonable, preventing price gouging and exploitation of consumers. This helps to maintain affordability and accessibility of essential products for consumers.

(b) Professional Associations: Professional associations protect consumers by setting standards and regulating the conduct of professionals in various industries. They establish codes of ethics and professional guidelines that members must adhere to, ensuring that consumers receive high-quality services and products. These associations also provide avenues for consumer complaints and disciplinary actions against professionals who engage in unethical or substandard practices.

(c) Manufacturers Associations: Manufacturers associations protect consumers by promoting product quality and safety standards. They work to ensure that manufacturers adhere to industry regulations and produce goods that meet established safety and quality standards. By doing so, they help protect consumers from faulty or unsafe products, promoting consumer confidence and trust in the market.

(d) Rent Tribunals: Rent tribunals protect consumers in the rental market by resolving disputes between landlords and tenants. They provide a fair and impartial forum for addressing issues such as rent increases, eviction notices, and maintenance concerns. By offering a dispute resolution mechanism, rent tribunals help ensure that consumers are treated fairly and that their rights as tenants are protected.

(e) NAFDAC (National Agency for Food and Drug Administration and Control): NAFDAC protects consumers by regulating and monitoring the safety, quality, and efficacy of food and drug products. They conduct inspections, product testing, and enforce regulations to ensure that products in the market are safe for consumption and meet quality standards. By doing so, NAFDAC safeguards consumers from the risks of counterfeit, substandard, or adulterated products, promoting public health and safety.
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(4a)
(i) Name of the partnership
(ii) Purpose of the partnership
(iii) Contributions of partners
(iv) Profit and loss sharing
(v) Decision-making and management

(4b)
(i) Mutual agreement: Partners may decide to dissolve the partnership by mutual consent if they no longer wish to continue working together.

(ii) Expiration of partnership term: If the partnership has a fixed term specified in the partnership agreement, it may dissolve automatically once that term expires.

(iii) Death or incapacity of a partner: The death or incapacity of a partner can lead to the dissolution of the partnership, as it can significantly impact the ability to continue the partnership’s operations.

(iv) Bankruptcy or insolvency: If a partner becomes bankrupt or insolvent, it can lead to the dissolution of the partnership, as it may affect the financial stability and viability of the business.

(v) Breach of partnership agreement: If one or more partners consistently violate the terms of the partnership agreement, it can lead to the dissolution of the partnership, as it may undermine trust and the ability to work together effectively.
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(5a)
(i) Public Interest Focus: Government-owned enterprises are often driven by the goal of serving the public interest rather than maximizing profits. This can lead to the provision of essential services, such as healthcare, education, and infrastructure, to all citizens.

(ii) Social Welfare: Government ownership can prioritize social welfare by ensuring affordable prices, equitable access, and quality services, especially for essential goods and services that may be too costly or inaccessible in a purely market-driven system.

(iii) Stability and Long-Term Planning: Public enterprises can provide stability in sectors that are critical for national development. They can engage in long-term planning and investment, which may not be feasible for private entities driven by short-term profit motives.

(iv) Economic Development: Government ownership can be instrumental in promoting economic development by investing in strategic industries, fostering innovation, creating employment opportunities, and supporting local businesses.

(v) Regulation and Control: Government-owned enterprises can be subject to stricter regulations and oversight, ensuring compliance with social and environmental standards, consumer protection, and fair competition.

(5b)
(i) Lack of Efficiency
(ii) Political Interference
(iii) Limited Accountability
(iv) Financial Burden
(v) Risk of Corruption
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(6)
(i) Proposal form: A proposal form is a document that an individual or business fills out when applying for insurance. It contains important information about the applicant, such as personal details, the type of coverage desired, and any relevant risk factors. The proposal form helps the insurer assess the risk and determine the terms and conditions of the insurance policy.

(ii) Cover note: A cover note is a temporary document issued by an insurer to provide immediate insurance coverage while the formal policy is being processed. It serves as proof of insurance until the actual policy is issued. Cover notes are typically valid for a short period, such as 30 days, and provide temporary protection until the full policy is in effect.

(iii) The policy: The policy is the formal written contract between the insured and the insurer. It outlines the terms and conditions of the insurance coverage, including the specific risks covered, the premium amount, the duration of coverage, and any exclusions or limitations. The policy serves as a legal agreement that sets out the rights and obligations of both parties.

(iv) Insurer: An insurer is the company or organization that provides insurance coverage to individuals or businesses. The insurer assumes the risk of potential losses in exchange for the payment of premiums. They are responsible for evaluating risks, setting premium rates, and paying out claims according to the terms of the policy.

(v) Insured: The insured refers to the individual or entity that is covered by an insurance policy. They are the party who purchases the insurance coverage and pays the premium to the insurer. In the event of a covered loss or claim, the insured can seek compensation from the insurer as outlined in the policy.
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(7a)
A contract is a legally binding agreement between two or more parties. It outlines the rights and obligations of each party involved and establishes the terms and conditions under which they agree to act. Contracts can be written or verbal, but it’s always best to have a written contract to ensure clarity and enforceability.

(7b)
(i) Offer and Acceptance: There must be a clear offer made by one party and an acceptance of that offer by the other party. Both parties must agree on the terms of the contract.

(ii) Intention to Create Legal Relations: The parties must have a genuine intention to enter into a legally binding agreement. Contracts made in a social or domestic context may not always be legally enforceable.

(iii) Consideration: Consideration refers to something of value that is exchanged between the parties. Each party must provide something of value, such as money, goods, or services.

(iv) Capacity: The parties entering into the contract must have the legal capacity to do so. This means they must be of legal age, mentally competent, and not under any undue influence or duress.

(v) Consent: The consent of both parties must be freely given and not obtained through fraud, misrepresentation, or coercion. Each party must fully understand the terms and willingly agree to them.

(vi) Legality: The purpose of the contract and the actions or obligations outlined within it must be legal. Contracts that involve illegal activities or go against public policy are not enforceable.
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(8a)
A sole proprietorship is a type of business structure where a single individual owns and operates the business.

(8b)
(i) Personal Savings
(ii) Loans from banks
(iii) Profits and Reinvestments

(8c)
(i) Unlimited Liability: The owner of a sole proprietorship is personally liable for all debts and obligations of the business. This means that if the business fails or faces legal issues, the owner’s personal assets could be at risk.

(ii) Limited Resources: Sole proprietorships may face challenges in raising capital compared to larger businesses. The owner’s personal funds and borrowing capacity may be limited, which can restrict the growth and expansion of the business.

(iii) Lack of Continuity: A sole proprietorship is closely tied to the owner, and the business may cease to exist if the owner retires, becomes incapacitated, or passes away. This lack of continuity can make it difficult to transfer ownership or maintain the business in the long term.
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(9a)
Department store:
(i) Wide Variety
(ii) Multiple Departments
(iii) Customer Service

(9b)
Multiple stores:
(i) Multiple Locations
(ii) Scalability
(iii) Increased Accessibility

(9c)
Unit stores:
(i) Single Location
(ii) Local Focus
(iii) Personalized Service

(9d)
Supermarket:
(i) Wide Range of Products
(ii) Self-Service
(iii) Competitive Pricing