NECO GCE 2025 COMMERCE QUESTIONS
NECO GCE 2025 COMMERCE QUESTIONS. BELOW
NECO GCE 2025 COMMERCE SOLUTIONS BELOW
*2025 NECO GCE COMMERCE SOLUTION 💯✅*
NECO GCE COMMERCE OBJECTIVE
01-10: BDBBCABDAB
11-20: ACBAAEBCAA
21-30: EBCDDADDBE
31-40: DBADEABEDB
41-50: BABDADDABA
51-60: EAABCBACBD
COMPLETED
*THEORY PART*
*NECO GCE COMMERCE*
(1)
(PICK ANY FIVE)
(i) Banking: Banking helps trade by providing safe and convenient financial services such as accepting deposits, granting loans, issuing credit, and enabling easy payments. It allows businesses to invest, expand operations, and settle transactions quickly. By offering financial support, banks encourage smooth commercial activities locally and internationally.
(ii) Insurance: Insurance protects traders against risks such as fire, theft, accidents, and loss of goods in transit. It guarantees compensation when unexpected events occur, preventing huge financial loss. This assurance encourages individuals and businesses to engage confidently in large-scale trade and long-distance transportation of goods across different markets.
(iii) Advertising: Advertising informs consumers about available goods, their prices, features, and uses. It creates awareness, stimulates demand, and helps producers and retailers increase sales. Through media such as radio, television, print, and digital platforms, advertising assists trade by connecting sellers to potential buyers and expanding market reach.
(iv) Transportation: Transportation makes the movement of goods from producers to wholesalers, retailers, and final consumers possible. It bridges the gap between areas of production and areas of demand. Efficient transport reduces spoilage, time, and cost, while ensuring that goods reach buyers quickly. This encourages wider distribution and enhances trade activities.
(v) Communication: Communication enables traders to exchange information quickly through phones, emails, and digital networks. It helps with placing orders, negotiating prices, confirming deliveries, and solving business issues without physical meetings. Fast communication reduces delays, supports effective decision-making, and improves coordination among suppliers, wholesalers, and consumers in trade.
(vi) Warehousing: Warehousing provides safe storage for goods until they are needed for sale or production. It ensures steady supply, protects goods from damage, and allows producers to store surplus output. Warehouses help stabilize prices by regulating availability and make it easier for traders to sell goods at convenient times.
(vii) Tourism: Tourism promotes trade by attracting visitors who spend money on accommodation, transport, food, souvenirs, and other services. This inflow of people increases demand for local goods and encourages business growth. Tourism also creates employment, improves infrastructure, and exposes local products to international markets, thereby supporting both domestic and foreign trade activities.
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*NECO GCE COMMERCE*
(2a)
(PICK ANY ONE)
An entrepreneur is an individual who identifies business opportunities, takes risks, and organizes resources to create goods or services. The entrepreneur makes decisions, innovates, and manages operations to ensure the success of the business. By coordinating capital, labour, and ideas, an entrepreneur drives economic growth and job creation in society.
OR
An entrepreneur is a person who starts and manages a business with the aim of making profit. Such a person takes calculated risks, develops new ideas, and mobilizes resources to meet customer needs. Through initiative, creativity, and leadership, an entrepreneur builds enterprises that contribute to national development and economic advancement.
(2b)
(PICK ANY FOUR)
(i) Land is a natural resource provided by nature, while capital is a man-made asset created for production.
(ii) Land is fixed in location, while capital can be moved from place to place.
(iii) Land does not depreciate with use, while capital wears out or depreciates over time.
(iv) Land has no production cost, while capital requires investment before use.
(v) Land supply is limited by nature, while capital supply depends on human effort and savings.
(vi) Land can appreciate in value over time, while capital usually loses value unless maintained.
(2c)
(PICK ANY FOUR)
(i) Risk-taking: The entrepreneur takes financial and business risks by investing money in ventures whose outcomes are uncertain. This willingness to face possible losses allows new ideas and enterprises to be developed and introduced into the market.
(ii) Organization of resources: The entrepreneur brings together land, labour, and capital to produce goods and services. By coordinating these resources effectively, the entrepreneur ensures that production is carried out smoothly and efficiently.
(iii) Decision-making: The entrepreneur makes important business decisions such as pricing, product choice, and marketing strategies. These decisions determine the success or failure of the business and guide its overall direction.
(iv) Innovation: The entrepreneur introduces new products, new production techniques, or better ways of delivering services. Innovation helps the business remain competitive, meet customer needs, and adapt to changes in the market.
(v) Provision of employment: The entrepreneur creates jobs by starting and expanding business activities. This provides income for workers, supports families, and contributes to reducing unemployment in society.
(vi) Coordination and supervision: The entrepreneur supervises the activities of workers and ensures all departments work together effectively. Through good coordination, the entrepreneur maintains productivity, quality output, and smooth running of the business.
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*NECO GCE COMMERCE*
(3a)
(PICK ANY ONE)
Warehousing is the process of receiving, storing, protecting, and releasing goods until they are needed for sale or use. It ensures that products remain in good condition, supports continuous supply, and allows businesses to manage surplus production. Through warehousing, goods are kept safe and made available at the right time.
OR
Warehousing is the act of storing goods in a secured place from the time they are produced until the time they are needed for use or sale. It provides facilities for receiving, arranging, protecting, and releasing goods. Warehousing ensures steady supply, prevents spoilage, and allows traders to meet consumer demand at the right time.
(3b)
(PICK ANY SIX)
(i) Warehousing ensures regular and uninterrupted supply of goods to consumers.
(ii) It protects goods from damage, theft, and spoilage through proper storage facilities.
(iii) It stabilizes prices by balancing supply during periods of scarcity or surplus.
(iv) It allows producers to store goods until market demand increases.
(v) It supports large-scale production by providing space for excess output.
(vi) It speeds up distribution by keeping goods closer to retailers and buyers.
(vii) It creates job opportunities for workers involved in storage and handling.
(viii) It supports foreign trade by providing bonded warehouses for imported and export goods.
(3c)
(PICK ANY FIVE)
(i) Low start-up capital: Hawking requires very little money to begin, making it accessible to people with limited financial resources.
(ii) Access to consumers: Hawkers move from place to place, bringing goods directly to buyers who may not have time to visit markets.
(iii) High sales turnover: Since goods are taken to customers, hawkers often sell quickly and convert stock to cash faster.
(iv) Flexible operation: Hawkers choose when and where to sell, allowing them to adjust to profitable locations and customer flow.
(v) Job creation: Hawking provides a means of livelihood for many people who cannot secure formal employment.
(vi) Market expansion: Hawkers help producers reach remote or underserved areas, allowing goods to enter new markets and reach more consumers.
(vii) Customer interaction: Hawkers interact closely with buyers, allowing them to understand preferences quickly and adjust products to meet demand.
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*NECO GCE COMMERCE*
(4)
(PICK ANY FIVE)
(i) Share capital: Share capital is the money raised by the company through the sale of shares to its members. Each shareholder contributes funds in exchange for ownership rights and dividends. It is the main permanent capital for business operations, expansion, and long-term investments, and it represents the company’s equity base.
(ii) Retained profits: Retained profits are the portion of earnings the company keeps instead of distributing as dividends. These funds are reinvested into the business to finance expansion, purchase new assets, or support operations. It is a cost-free and reliable source of capital because it comes internally and increases the financial strength of the firm.
(iii) Bank loans: Bank loans are funds borrowed from commercial banks for a specified period with interest. Companies use these loans to finance projects, buy equipment, or expand production. Although repayment is mandatory, bank loans provide large amounts of capital quickly, enabling the company to pursue opportunities that require substantial financing.
(iv) Debentures: Debentures are long-term loans raised by issuing debt instruments to the public. Holders of debentures are creditors who receive fixed interest whether the company makes profit or not. Debentures help companies mobilize large funds without giving ownership away, and repayment is usually spread over many years, easing financial pressure.
(v) Trade credit: Trade credit is when suppliers allow the company to buy goods and pay at a future date. It helps the company obtain raw materials and inventory without immediate payment. This improves cash flow, supports production, and allows the business to operate smoothly while waiting for revenue from sales.
(vi) Hire purchase: Hire purchase allows the company to acquire equipment or vehicles by paying in installments while using the asset. Ownership transfers after final payment. It helps businesses obtain costly assets without large upfront expenses, making it easier to expand operations gradually and manage cash more effectively.
(vii) Leasing: Leasing involves renting equipment, buildings, or machinery for a specified period while paying periodic charges. The company uses the asset without buying it, reducing financial burden. Leasing preserves cash for other activities, allows access to modern equipment, and is useful for companies that want to avoid heavy long-term investments.
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*NECO GCE COMMERCE*
(5a)
(i) Commercial bank: A commercial bank is a financial institution that accepts deposits from the public and provides loans, overdrafts, and other banking services to individuals, businesses, and governments. It facilitates payments through cheques, transfers, and electronic banking. Commercial banks promote trade, support investment, and help in maintaining economic stability through savings and credit services.
(ii) Mortgage bank: A mortgage bank is a financial institution that specializes in granting long-term loans for the purchase, construction, or renovation of houses and landed property. Borrowers repay the loan in installments over many years. Mortgage banks help individuals and businesses acquire real estate by providing structured housing finance and promoting property development and ownership.
(iii) Bearer cheque: A bearer cheque is a type of cheque that is payable to whoever presents it at the bank, without requiring identification or endorsement. It allows easy transfer of money from one person to another. Because it can be cashed by anyone holding it, bearer cheques require careful handling to avoid loss or misuse.
(iv) Open market operation: Open market operation refers to the buying and selling of government securities by the central bank to control the money supply in the economy. When the central bank sells securities, money is withdrawn from circulation; when it buys, money is injected into the system. It is an important tool for regulating inflation and credit conditions.
(5b)
(PICK ANY FOUR)
(i) Both can be used to obtain goods and services.
(ii) Both are accepted as a means of transaction within a community.
(iii) Both have value that users recognize and agree on.
(iv) Both can serve as a store of value for future use.
(v) Both can be exchanged for other items when the need arises.
(vi) Both depend on public confidence for their effectiveness in trade.
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*NECO GCE COMMERCE*
(6a)
(PICK ANY ONE)
Credit refers to the ability to obtain goods, services, or money with the promise of future payment, often with interest. It can also refer to the financial history that determines a person’s or company’s creditworthiness.
OR
Credit refers to the trust that allows one party to receive value from another with the promise to repay in the future. It may involve goods, cash, or services. Credit supports trade by enabling transactions when money is not readily available and provides flexibility in both personal and business finance.
(6b)
(PICK ANY THREE)
(i) Credit sales allow payment at a later date, while cash sales require immediate payment.
(ii) Credit sales involve the risk of bad debt, while cash sales have no such risk.
(iii) Credit sales require keeping customer records, while cash sales need little record keeping.
(iv) Credit sales may increase sales volume, while cash sales limit purchases to available money.
(v) Credit sales delay cash inflow, while cash sales provide instant cash to the seller.
(6c)
(PICK ANY FIVE)
(i) Consumer education: Consumers are educated on their rights, product use, and how to identify fraud. This helps them make safe and informed buying decisions.
(ii) Government legislation: Laws are made to prevent fake products, unfair pricing, false advertising, and harmful practices, ensuring that consumers are treated fairly by producers and sellers.
(iii) Standard organizations: Bodies like SON ensure goods meet approved quality standards. They inspect, certify, and remove unsafe or substandard products from the market to protect consumers.
(iv) Price control: The government fixes maximum prices for essential goods to prevent exploitation. This helps consumers buy necessary items at reasonable and fair prices.
(v) Consumer protection agencies: Agencies investigate complaints, settle disputes, and take action against dishonest sellers. They safeguard consumers’ interests by enforcing regulations and punishing offenders.
(vi) Public awareness campaigns: Organizations and media create awareness on issues like product safety, scam prevention, and consumer rights. This empowers the public to avoid unsafe or deceptive goods.
(vii) Product labeling: Clear and accurate labels provide information on ingredients, expiry dates, usage, and safety warnings. This helps consumers choose suitable and safe products confidently.
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*NECO GCE COMMERCE*
(7)
(PICK ANY FIVE)
(i) Mobilization of capital: The Nigerian Stock Exchange mobilizes long-term funds by providing a platform where companies can raise capital through the sale of shares and debentures. By bringing investors and businesses together, it enables firms to expand operations, develop new projects, and strengthen financial stability, thereby supporting national economic growth and development.
(ii) Facilitation of investment opportunities: The Stock Exchange offers investors various opportunities to buy and sell securities based on their financial goals. Individuals and institutions can invest in different companies and sectors. This helps diversify risk and encourages savings. The availability of multiple investment options promotes a strong and active capital market.
(iii) Promotion of liquidity: The Exchange ensures that investors can easily convert their shares into cash by selling them on the market. This liquidity encourages more people to invest since they know their money is not permanently locked up. A liquid market also improves price accuracy and strengthens confidence among participants.
(iv) Regulation of the securities market: The Nigerian Stock Exchange regulates the activities of brokers, listed companies, and investors to ensure fairness and transparency. It establishes rules to prevent fraud, insider trading, and market manipulation. Through monitoring and enforcement, the Exchange creates a safe environment where investors can trade with confidence and trust.
(v) Pricing of securities: The Exchange helps determine the fair value of shares and other securities based on demand and supply. Continuous trading allows prices to reflect the true performance of companies and investor expectations. Accurate pricing guides investment decisions and helps companies understand their market value over time.
(vi) Encouragement of corporate accountability: Companies listed on the Stock Exchange must publish financial reports, disclose performance, and meet strict standards. This requirement promotes transparency and responsible management. Regular disclosure allows investors to assess a company’s health, promotes good governance, and ensures that firms remain accountable to shareholders and the public.
(vii) Wealth creation: The Stock Exchange creates wealth by allowing investors to earn dividends and capital gains when share prices rise. As companies grow, their value increases, benefiting shareholders. This wealth creation encourages more people to participate in the market, supports personal financial growth, and contributes to improved living standards.
(viii) Promotion of economic development: By channeling savings into productive investments, the Stock Exchange supports industrial growth, job creation, and infrastructural development. Companies that raise funds through the Exchange expand their operations, boost production, and contribute to the national economy. A vibrant stock market is therefore a key driver of economic progress.
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*NECO GCE COMMERCE*
(8a)
(i) Business licence: A business licence is an official permit issued by the government that allows an individual or company to operate legally within a particular area. It helps regulate business activities, ensure compliance with laws, and protect consumers. Without a valid licence, a business may face penalties, closure, or legal action for operating unlawfully.
(ii) Trade mark: A trade mark is a unique symbol, name, logo, design, or expression that identifies and distinguishes the products or services of one company from those of others. It provides legal protection against imitation or misuse. Trade marks help build brand identity, promote customer trust, and safeguard the reputation of the producer in the market.
(iii) Market skimming: Market skimming is a pricing strategy where a company sets a high price for a new product to maximize profit from customers willing to pay more. As demand reduces or competition increases, the price is gradually lowered. This method helps recover production costs quickly and takes advantage of early buyers before lowering the price.
(iv) Consumer market: A consumer market refers to the group of individuals or households that purchase goods and services for personal or family use. It includes buyers with varied tastes, preferences, and income levels. Businesses study the consumer market to identify needs, set prices, and design products that satisfy customer demands effectively and profitably.
(8b)
(PICK ANY TWO)
(i) Both are electronic media used to transmit information to a wide audience.
(ii) Both rely on broadcasting technology to reach people in different locations.
(iii) Both can be used for advertising goods and services.
(iv) Both serve as sources of education, entertainment, and public enlightenment.
(8c)
A handbill is a small printed sheet used to give information or advertise a product or event, usually distributed in public places. A free sample is a small quantity of a product given to consumers to test or try before deciding to make a purchase.
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(9a)
(PICK ANY ONE)
Wholesale trade refers to the buying of goods in large quantities from manufacturers and selling them in smaller quantities to retailers, industrial users, or other wholesalers. Wholesalers act as intermediaries between producers and retailers. They help distribute goods widely, reduce storage problems for producers, and make products available in various markets.
OR
Wholesale trade is the commercial activity in which goods are purchased in bulk and resold to retailers or professional buyers rather than final consumers. It involves breaking bulk, storing goods, and supplying retailers regularly. Wholesalers help producers focus on production while ensuring retailers have a steady and convenient source of goods.
(9b)
(PICK ANY FOUR)
(i) Wholesale trade involves selling to retailers, while retail trade sells directly to final consumers.
(ii) Wholesale trade deals in large quantities, while retail trade handles small quantities.
(iii) Wholesalers usually locate in commercial districts, while retailers locate close to consumers.
(iv) Wholesale prices are lower, while retail prices are higher.
(v) Wholesalers need large warehouses, while retailers require smaller shops.
(vi) Wholesalers provide goods to many retailers, while retailers mainly serve households and individuals.
(9c)
(PICK ANY FOUR)
(i) Breaking bulk: The wholesaler buys goods in large quantities from manufacturers and sells them in smaller units, making it easier and more affordable for retailers to purchase what they need.
(ii) Storage of goods: Wholesalers store goods in warehouses until retailers require them. This prevents shortages, reduces producers’ storage burden, and ensures products are available throughout the year.
(iii) Price stability: By storing surplus goods and releasing them gradually, wholesalers help maintain stable prices in the market. This prevents sudden fluctuations and protects both producers and retailers.
(iv) Provision of information: Wholesalers supply manufacturers with feedback on consumer preferences and market trends. They also inform retailers about new products, price changes, and demand levels.
(v) Transportation assistance: Some wholesalers help deliver goods to retailers, saving them transport costs and ensuring products reach shops quickly and safely.
(vi) Credit facilities: Wholesalers may sell goods to retailers on credit, allowing them to repay after selling the products. This helps small retailers operate even when they lack immediate cash.
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*COMPLETE 💯✅*