NECO 2023 COMMERCE ESSAY AND OBJ ANSWERS

(ii) Promoting Sales and Revenue: Advertising is a powerful tool for promoting sales and increasing revenue. When a well-crafted advertisement reaches the target audience, it can persuade them to make a purchase, thus directly impacting the company’s bottom line. Effective advertising campaigns can boost demand, drive sales, and contribute to business growth.

(iii) Building Brand Identity and Loyalty: Brands are more than just names or logos; they embody a set of values, promises, and experiences. Advertising plays a crucial role in shaping a brand’s identity and conveying its unique proposition to the consumers. By consistently communicating key messages and showcasing the brand’s personality, advertising fosters brand loyalty, encouraging customers to choose a particular brand over competitors.

(iv) Educating Consumers: Some products or services require consumer education to understand their value and proper usage. Advertising acts as an educational tool, providing information about complex products, new technologies, or services that customers might not be familiar with. Through advertisements, companies can clarify product features, demonstrate benefits, and dispel misconceptions.

(v) Influencing Public Opinion: Beyond promoting products, advertising also influences public opinion and social issues. Public service announcements (PSAs) and cause-related marketing campaigns are examples of how advertising can be used to raise awareness about critical societal matters such as health, environment, or social causes. By reaching a wide audience, advertising can mobilize people to take action and effect positive change.
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(2a)
(i) An employer is a person or an organization that hires employees to work for them, while an employee is a person who works for an employer in exchange for compensation.

(ii) An employer is responsible for managing and directing the work of employees, while an employee is responsible for carrying out the tasks assigned to them by their employer.

(2b)
(i) Job Performance
(ii) Adherence to Policies and Procedures
(iii) Attendance and Punctuality
(iv) Professional Conduct

(i) Job Performance: Employees have a duty to perform their job tasks to the best of their abilities. This includes meeting performance standards, fulfilling job responsibilities, and achieving the objectives set by their employer.

(ii) Adherence to Policies and Procedures: Employees are expected to follow the rules, policies, and procedures established by their employer. This may involve complying with workplace regulations, safety guidelines, and company protocols.

(iii) Attendance and Punctuality: Employees have a responsibility to maintain regular attendance and be punctual for their scheduled work hours. Consistent attendance is essential for the smooth functioning of the business and meeting productivity targets.

(iv) Professional Conduct: Employees are expected to conduct themselves in a professional manner while representing the company. This includes maintaining a positive attitude, treating colleagues and customers with respect, and avoiding behaviors that could harm the company’s reputation.
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(3a)
Insurance is a contract between an individual or organization and an insurance company where the individual or organization pays a premium in exchange for protection against financial loss or damage caused by unforeseen events.

(3b)
(i) Principle of Utmost Good Faith: This principle requires both the insurer and the insured to act in good faith and disclose all relevant information to each other to avoid any misrepresentation or fraud.

(ii) Principle of Insurable Interest: The principle of insurable interest requires that the insured must have a financial interest in the subject matter of the insurance policy. This means that the insured must stand to suffer a financial loss if the insured event occurs.

(iii) Principle of Indemnity: The principle of indemnity states that the insured should be compensated for the actual loss suffered and not for any profit or gain that may have been made from the loss. This principle ensures that the insured is not overcompensated for their loss.

(iv) Principle of Contribution: The principle of contribution applies when an insured has taken out more than one insurance policy to cover the same risk. In such a situation, each insurer will contribute to the loss in proportion to the amount of coverage provided. This principle ensures that the insured is not overcompensated for their loss by collecting from multiple insurers.
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(4a)
(i) Niche markets: Small businesses can thrive by catering to a specific niche market that is not being served by larger businesses.

(ii) Personalized service: Small businesses can provide personalized service to their customers, which larger businesses often struggle to do.

(iii) Flexibility: Small businesses can be more flexible and responsive to changes in the market, allowing them to adapt quickly to new trends and customer needs.

(iv) Lower overhead costs: Small businesses often have lower overhead costs than larger businesses, which can help them to be more competitive in terms of pricing.

(4c)
(i) Small scale retail outlets are typically smaller in size and have a limited range of products, while large scale retail outlets are larger in size and offer a wider range of products.

(ii) Small scale retail outlets are often owned and operated by individuals or families, while large scale retail outlets are typically owned by corporations.

(4c)
=Examples of Small scale retail outlets=
(i) Convenience stores
(ii) Boutiques
(iii) Food trucks
(iv) Online stores

=Examples of large scale retail outlets=
(i) Supermarkets
(ii) Department stores
(iii) Hypermarkets
(iv) Shopping malls
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(5a)
A second-tier securities market is a market that provides a platform for trading securities that are not listed on the primary market. It is also known as the second market or the aftermarket.

(5b)
(i) Company Size: A company must meet the minimum size requirement to be admitted into the second-tier securities market. This is to ensure that the company has a certain level of liquidity and is financially stable.

(ii) Financial Reporting: A company must have a good track record of financial reporting. The company must provide accurate and timely financial statements to the market to help investors make informed decisions.

(iii) Corporate Governance: A company must have a good corporate governance structure. This includes having an independent board of directors, having transparent and fair policies, and having effective risk management procedures.

(iv) Regulatory Compliance: A company must comply with all the regulations set by the regulatory bodies governing the second-tier securities market. This includes disclosing all relevant information to the market and ensuring that all transactions are conducted in a fair and transparent manner.

(5c)
(i) Direct Listing
(ii) Transfer from the Primary Market
(iii) Initial Public
(iv) Private Placement
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(6a)
An economic grouping refers to a group of countries that come together to form a common economic policy and work together to promote economic growth, development, and trade.

(6b)
(i) To promote economic cooperation and integration among member states.
(ii) To establish a common market and promote the free movement of goods, persons, and services among member states.
(iii) To promote industrial development and diversification of member states’ economies.
(iv) To establish a monetary union and a common currency for member states.
(v) To promote human development and social welfare among member states.
(vi) To promote regional peace and security and resolve conflicts among member states.
(vii) To promote cooperation in the areas of science, technology, and research among member states.
(viii) To promote environmental protection and sustainable development among member states.
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(7a)
(i) Central Banks: Central banks play a key role in the money market by regulating the money supply and interest rates. They also provide short-term loans to commercial banks and other financial institutions.

(ii) Commercial Banks: Commercial banks are the primary participants in the money market. They borrow and lend funds in the market to meet their short-term funding needs.

(iii) Money Market Mutual Funds: Money market mutual funds invest in short-term debt securities such as treasury bills, commercial paper, and certificates of deposit. They provide a low-risk investment option for individuals and institutions.

(iv) Investment Banks: Investment banks are involved in underwriting and trading of short-term debt securities such as commercial paper, treasury bills, and certificates of deposit. They also provide advisory services to companies and governments on debt issuance and capital raising.

(7b)
(i) Hard commodities are natural resources that are mined or extracted, while soft commodities are agricultural products that are grown or harvested.

(ii) Hard commodities are generally more durable and have a longer shelf life than soft commodities, which are perishable and have a shorter shelf life.
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(8a)
Customs and Excise Authority refers to a government agency responsible for regulating and enforcing customs and excise laws and policies. They are responsible for controlling the import and export of goods, collecting customs duties and excise taxes, and ensuring compliance with trade laws.

(8b)
(i) Collecting duties and taxes: Customs and Excise Authorities are responsible for collecting customs duties and excise taxes from the import and export of goods.

(ii) Enforcing trade laws: Customs and Excise Authorities are responsible for enforcing trade laws and regulations in order to protect domestic industries and ensure international trade is fair and free of illegal activities.

(iii) Managing export controls: Customs and Excise Authorities are responsible for managing export controls, which involves setting quotas and regulations on exports of certain goods.

(iv) Controlling imports: Customs and Excise Authorities are responsible for controlling the importation of goods, by imposing restrictions, levying taxes, and other measures

(9i)
Bond: A bond is a financial instrument issued by governments, companies, or organizations to borrow money from investors. The bond defines the terms of the loan, including the amount, interest rate, payment schedule, and maturity date.

(9ii)
Carrier: A carrier is an entity that is responsible for the transport of goods from one place to another. Carriers can include airplanes, trucks, ships, trains, and other modes of transportation.

(9iii)
Communication: Communication is the exchange of information between two or more people. Communication can take place in various forms, such as verbal, written, nonverbal, digital, and visual.

(9iv)
Debenture: A debenture is a type of debt security issued by corporations or governments. It is similar to a bond, except that it does not provide the issuer with collateral or other assets to secure the loan.