NECO Commerce Questions and Answers 2020/2021 (Essay and Objectives)

NECO Commerce Questions and Answers 2020. I will be showing you  NECO Commerce objective and theory questions for free. You will also understand how NECO Commerce questions are set and many more examination details.

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The National Examination Council is an examination body that set questions annually from areas student should, after their studies in the senior secondary school, be able to write and pass without stress.

NECO Commerce answers and questions Objectives and Essay will be provided here and the authenticity of this NECO 2020 Commerce solutions to questions has been tested and confirmed to be sure.

See:

NECO Commerce Essay And Objective Questions and Answers 2020 (EXPO)

The 2020 NECO Commerce Answers will be posted here today, 21st October during the examination. Keep checking and reloading this page for the answers.

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Today’s Commerce Answers:

Commerce Essay:

(1)
(i)Banker to the government
(ii) Insurance and control of currency
(iii) Lender of last resort
(iv) Foreign exchange transaction
(v) Responsible for monetary policy
(vi) Banker’s bank

EXPLANATION:

(i) Banker to the government: Central Bank is an agent and banker to the government. It control public account, receives revenue on behalf of the government and make payment from this account. Central Bank also obtains loan on behalf of the government.

(ii) Insurance and control of currency: The central bank has the right to order the printing of the currency and the issuance of it. It control the circulation of currency, exchange of bad notes for new ones and see to the destruction of the bad notes.

(iii) Lender of last resort: The central bank has a duty to assist the banking system when the banks are in financial difficulties so that they can withstand the strain of excessive demands. In some countries, the banks can borrow directly from the central bank.

(iv) Foreign exchange transaction: The central bank holds the foreign reserve of a country, and this helps in enforcing foreign exchange control regulation. It operates the exchange control which is set up to purchase and sell foreign currencies.

(v) Responsible for monetary policy: The central bank is responsible for the monetary policies of the country. It can use both the expansionist and restrictionist policies to control the quantity and value of money in circulation so as to influence the level of production and distribution of the national income.

(vi) Banker’s bank: Th central bank acts as banker to the banks by ensuring that the banks open account with it in order to facilitate clearing of cheques. This helps the commercial banks to have similar facilities to offer to their customers.

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(2a)
Multilateral trade can be defined as a type of international trade in which a country trade with many other countries. It is also a type of trade in which countries exchange goods and services eg Nigeria trade with the USA, Britain and Russia

(2b)
(Choose Any Four)

(i) Differences in climate condition
(ii) Differences in Technology
(iii) Differences in skills
(iv) Uneven distribution of natural resources
(v) Expansion of market for products

EXPLANATION :

(i) Differences in climate condition: The climatic condition of the earth varies from one region to another. This variation gives rise to growth of different crops hence the need for exchange.

(ii) Differences in Technology: The level of technology differs from one nations of the world to another. Some countries with advanced technology can produce some industrial products at reduced cost and sell to the less developed countries.

(iii) Differences in skills: The inhabitants of a region may develop special skills in the production of a commodity such that it acquires special reputation for its skill. This can necessitate foreign trade.

(iv) Uneven distribution of natural resources: Natural resources are unevenly distributed. While some countries are naturally blessed, others have little or no natural. This necessitates international trade.

(v) Expansion of market for products:Foreign trade came into existence because of the need to widen the market for goods produced by a country.

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(3a)
Entrepreneur: An entrepreneur can be defined as the factor of production that co ordinates and organises other factors of production(land, labour and capital) in order to produce goods and services. The entrepreneur bears the risks and take major decision of the business. He risks his capital in setting up the business with the aim of obtaining maximum profit.

(3b)
Production: Production can simply be defined as the creation of utility or creation of goods and services which satisfy human want. All goods and services produced must possess utility, which means that they must be capable of satisfying certain human wants. Production also means the various economic activities aimed at the creation of goods and services and the distribution of these to the final consumers for the satisfaction of human wants.

(3c)
Fixed capital : These are assets which are not used up in the course of production. Fixed assets include those durable assets of a business that can last for a very long time. These assets or capital do not change their form in the process of production. Examples of fixed capital are land, buildings, tools, motor vehicles, plants and machinery

(3d)
Exchange : Exchange is the process of giving out value in order to have something of value in return. In olden days, barter was the main system of exchange ie goods for goods. But nowadays one can exchange money for goods. Exchange arises because of excess production of goods and services. Exchange is often regarded as an outcome of specialisation and production

(3e)
Specialisation : Specialisation is defined as the concentration of the productive efforts of an individual, a firm or a country in a given aspect of economic activity or on a particular line of production in which it has the greatest advantage over others. Specialisation is the performance of a single job or economic activity in which an individual, firm or a country has comparative advantage.

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(5a)
Limited liability company can be define as a form of business organization with the liability-shield advantages of a corporation and the flexibility and tax pass-through advantages of a partnership.It is a separate and distinct legal entity

(5b)
(Choose Any four)

(i) Ownership
(ii) It is a legal entity
(iii) Perpetual existence
(iv) Formation
(v) It has limited liability

EXPLANATION :

(i) Ownership: The number of shareholders range from seven to infinity, ie owners must be at least seven but there is no maximum number

(ii) It has a legal entity : The public limited liability company has a distinct personality from that of the owner. It can sue and be sued in its own name

(iii) Perpetual existence: The death or withdrawal of some shareholders will not affect the existence of the company. It enjoy continuous existence

(iv) Formation : A public limited liability company must follow some special formalities before registration. They secure incorporation by filling the article of association and memorandum of association with the registrar of companies

(v) It has limited liability : The liability shareholders is limited to the amount contributed to the company. The private properties of the shareholders will not be touched in the event of liquidation.

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(6)
(Choose Any Five)

(i)Promotion of Commercial activities
(ii) Enhance settlement of international indebtedness
(iii) Reduction in cost an Risk of traveling
(iv) Facilitates contact between businessmen
(v) Communication enhance international trade
(vi) Enhance Air and sea Transport

EXPLANATION:

(i)Promotion of Commercial activities: Communication promotes commercial activities as the whole world is connected together as a global village.

(ii) Enhance settlement of international:The use of telecommunication has enhanced the settlement of debts through telegraphic money transfers eg Western union money Transfer

(iii) Reduction in cost an Risk of traveling: Through communication the cost and risks involved in travelling long distance for business transactions can be greatly reduced.

(iv) Facilitates contact between businessmen: Communication provide and facilitates good and efficient means of maintaining close contact between businessmen

(v) Communication enhance international trade: Foreign trade transactions an be facilitated through modern means of communication as various markets are linked together

(vi) Enhance Air and sea Transport: Transportation by air and sea are made possible by communication. The use of radio, telegram and other means of communication have made contact between a ship off shore and the port possible

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(7a)
Catalogue : Catalogue is a pictorial presentation of goods and articles available for sale, especially in Mail order business. It is a medium of advertising. It is used to inform the buyers of the details of the goods, as to size, colours, prices and delivery terms. It is also be used as a quotation or reply to enquiry.

(7b)
Order: An order is a statement sent by the buyer to the seller, stating the full description and quantity of goods required. After buyer has gone through Catalogue,he will then place an order. The order will show the goods required, type conditions of payment, purchase and method of delivery

(7c)
Proforma invoice: A proforma invoice is an invoice that is usually submitted before goods are despatched as a polite request for payment to be made in advance when a seller is not willing to sell on credit and to show the goods. If the goods are retained, it become an ordinary invoice. It is also used to serve as a quotation

(7d)
Quotation :Quotation is a statement prepared by a supplier of goods or services for a particular order which shows the current price and terms of trade. Quotation is applicable to a particular transaction only. The supplier will send it to show the price to be charged, terms of payment and period of delivery. It is usually sent as a reply to an enquires

(7e)
Receipts: Receipt is a document which acknowledges that payment has been received from the buyer. When a customer receives the goods and he sends the money to the seller who in return issues the receipt as evidence of the payment. It must be written and signed by the seller and sent to the buyer, stating the actual amount received.

NECO Commerce OBJ:

1-10: CCAADCBBED
11-20: DBEAACCCDC
21-30: BDDACDEAAD
31-40: ABEDDACBCB
41-50: DAAEBABBBA
51-60: DCCEBBEEEA

2a)
Multilateral trade can be defined as a type of international trade in which a country trade with many other countries. It is also a type of trade in which countries exchange goods and services eg Nigeria trade with the USA, Britain and Russia

(2b)
(Choose Any Four)

(i) Differences in climate condition
(ii) Differences in Technology
(iii) Differences in skills
(iv) Uneven distribution of natural resources
(v) Expansion of market for products

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The questions below are not exactly 2020 NECO Commerce questions and answers but likely NECO Commerce repeated questions and answers.

These questions are strictly for practice. The 2020 NECO Commerce expo will be posted on this page on the day of the NECO Commerce examination. Keep checking and reloading this page for the answers.

1. Income distribution, nature of natural resources, investment etc. forms part of —–business environment.

A. cultural

B. economic

C. political

D. social

E. technological

2. The fee for sending a telegram depends on the

A. number of lines contained by the message

B. number of words contained in the message

C. the security of the message

D. time it would take the message to reach its destination

E. urgency of the message

3. The combination of product, price,

A. consumer orientation

B. marketing concept

C. marketing mix

D. marker research

E. product mix

4. Use the following information to answer question

Kolawole’s Opening Stock was N10, 000. His purchases was N280,000 Goods returned outward was N3,000, and the Closing Stock was N8,000
Kolawole’s average stock is?

A. N9,000.00

B. N10, 000.00

C. N279,000.00

D. N280,000.00

E. N290,000.00

5. When the supplier changes a retailer for not returning empty packages, the supplier sends him a/an

A. advice note

B. consignment note

C. credit note

D. debit note

E. statement

6. Which of the following is NOT a function of Commerce?

A. Assisting Companies in raise capital

B. Assisting in transporting men and materials to production points

C. Extracting goods for further production and processing

D. Storing goods until they are needed

E. Offering employment opportunities to a large number of people

7. In which order are the following documents used?

I. Enquiry
II. Delivery note
III. Order
IV. Invoice
V. Quotation

A. I, II, III, IV and V

B. I, V, III, IV and II

C. II, I, IV, III and V

D. III, II, V, I and IV

E. V, IV, I, III and II

8. The price of an item is N 300 with a trade discount of 20%, What is the selling price?

A. N180

B. N240

C. N300

D. N360

E. no option

9. A hire purchase transaction becomes a sale when the hirer

A. pays full cost of the goods

B. agrees with the hire purchase terms

C. takes possession of the goods

D. pays part of the instalments

10. An electronic system of communication which serves as the international information bank is called

A. an e-mail

B. a satellite

C. a telex

D. the Internet

11. Shares, stocks, government bonds trade in the stock exchange marks: are known as

A. debentures

B. gut-edged stocks

C. merchandises

D. securities

E. treasure bills

12. The practice of selling some goods below market price to attract more customers is known as

A. hoarding

B. loss leader

C. market sharing

D. profiteering

E. speculating

13. Shares that are fully paid can be converted into bulks known as

A. bonds

B. capital reserves

C. debentures

D. guilt-edged securities

E. stocks

14. Telecommunication services are provided by

A. Bureau De Change

B. Courier Services

C. Date Post

D. NIPOST

E. NITEL

15. Use the following information to answer question

Kolawole’s Opening Stock was N10, 000. His purchases was N280,000 Goods returned outward was N3,000, and the Closing Stock was N8,000
Cost of goods sold is

A. N180,000.00

B. N227,000.00

C. N279,000.00

D. N290,000.00

E. N301,000.00

16. The process of passing information from one person to another in an organization is known as

A. communication

B. co-ordination

C. delegation

D. direction

E. Motivation

17. A financial document stating the reasons for making a payment and details of the payment is

A. bank draft

B. cash book

C. cheque

D. payslip

E. voucher

18.Another name for a foreign order is

A. catalogue

B. export

C. import

D. indent

E. quotation

19. Public debt management is one of the functions of a ______________ bank

A. central

B. commercial

C. development

D. industrial

E. merchant

20. Which of the following regards the consumer as king?

A. consumer behavior

B. marketing concept

C. market mix

D. pricing policy

E. product mix

21. The most suitable mode of transporting very bulky goods from Lagos to Kaduna is the

A. aeroplane

B. caravan

C. lorry

D. ship

E. train

22. Adeleke places his vehicle for sale at N150,000,00 Ibrahim had agreed to pay the amount. In this Trans: Adeleke is the

A. agent

B. auctioneer

C. broker

D. offeree

E. offeror

23. The following are methods of quoting prices EXCEPT

A. A.C.I.F

B. F.A.S

C. F.O.B

D. L.O.C.O

E. E.O.E

24. The amount receivable by shareholders after the declaration of profit is called

A. bonus

B. commission

C. dividend

D. interest

E. premium

25. Which of the following is an invisible item of trade?

A. Banking Service

B. Petroleum Product

C. Processed Rice

D. Processed Milk

E. Processed Yam Flour.

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See:

How To Pass NECO Commerce Examination

The National Examination Council (NECO) is a body in charge of the Senior Secondary School Certificate Examination. The Certificate offered here is a very important credential that awards or certify the completion of your Secondary School Education.

It is a major document that qualifies you into any tertiary institution and equally a major factor affecting admission today.

For this reason, every Student preparing for this examination NECO 2020 is preparing for something great.

Care should be taken when participating in this examination in other not to come out with bad grades. The following are the key answers to  NECO Commerce 2020.

1. Be Determined to Pass

The NECO 2020 Commerce is mainly for those who have made up their mind to pass it with a good grade.

Any candidate who, at this point in time, has not made up his or her mind to make the excellent grade in the forthcoming NECO 2020 Commerce is actually not ready to pass.

Your mind should be ready for the task ahead, do not follow lazy friends who believe in a miracle on the day of the exams, stay positive and study your books.

2. Have self-confidence

Self-confidence is another factor that affects a candidate’s performance. Promise to do it all by yourself and everything will come out very simple for you.

It is a well-known fact that many students cancel the right answers just to copy the wrong ones because of a lack of self-confidence. Study and pray hard and you are the miracle for the day.

3. Start Studying Early

Studying is very important in your life as a student. NECO is a very simple Exam to deal with as long as studies are involved. Studying is one thing and studying on time is another thing entirely.

Do not wait for the NECO 2020 Commerce exams to be so close before you start studying for it. Late preparation will not really help you. When you start studying early there will be time for you to revise before the exams.

2. Make Use the NECO 2020 Syllabus

Using the NECO 2020 syllabus is very essential as it will guide you on major topics to cover. Studying without the Syllabus will make you focus on unnecessary topics that will not appear in the exams.

Also, most of the Commerce topics you have not done in class are there in the NECO syllabus.

3. Pray to God Your creator

Many think that they can do it all alone without God. The Almighty God is your creator, seek His assistance and He will never fail to help you. Your faith in God determines your success. God is there for you, call upon Him.

4. Adhere to exams instructions.

Any student who is not ready to adhere to the examination conducts is planning to fail. The majority of NECO Candidates that have their result held are from those that were not ready to follow the Exam instructions.

5. Use Your Time Wisely.

It is a well-known fact that NECO Commerce needs a lot of time, manage the little time given to you wisely. Consider the number of questions you are to answer and the time given so that you can time wisely.

6. Be punctual to the examination venue

Punctuality matters during the exams. Go to the exam venue early so that your brain can settle for the task. Rushing to the exam hall will make you unstable for the exam and can prone you to so many mistakes.

Take time to go through the exam question paper before you start answering. NECO Commerce Questions and Answers

If you have any questions about the 2020 NECO Commerce questions and answers, do well to let us know in the comment box.

Last Updated on October 21, 2020 by Admin

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