NABTEB Commerce Questions and Answers

Filed in Exam by on February 22, 2024

NABTEB Commerce Questions are a vital part of the exam. They check if students grasp basic commerce ideas and can use them in real-life situations. 

NABTEB Commerce Questions

Commerce is crucial because it teaches important trade, business, and economic skills

Stay with us as we dive into the main topics, types of questions, and answers in NABTEB Commerce. 

NABTEB Commerce Questions and Answers

Here are some questions you need to take note of below:

Question 1

a. Give reasons why firms spend a lot of money on advertising.

b. State the reasons why a businessman may choose each of the following media for advertising:
his goods.

(i) Newspaper

(ii) Television

(iii) Radio.

Answer

a. The following are some of the reasons why firms spend money on advertising:

(i) It projects a good image of the firm in the external world.

(ii) It educates the public on the uses of the goods.

(iii) It leads to an increase in sales.

(iv) It is used to let the public know of the introduction of new products.

(v) It helps to enlighten the public about the availability of goods.

(vii) It may give rise to higher revenue.

(viii) It may lead to an increase in production.

(ix) It creates employment.

b(i) The reasons why a businessman uses a newspaper for advertising his goods are;

(a) Circulates throughout the country.

(b) Can be printed in many languages.

(c) It can be preserved for future use.

(d) Circulates daily.

(e) It can be presented in various colours.

(ii) Businessman uses television as a means of advertising because of the following;

(a) It combines sight and sound.

(b) It uses colour.

(c) It covers a wide range of goods.

(d) It is suitable for a target audience.

(e) It has an instant effect through pictorial demonstration.

(f) It appeals to different classes of people who watch it.

(iii) Radio is used as a means of advertising by businessmen because of the following:

(a) Nearly all homes possess a radio set.

(b) Covers all nooks and corners

(c) Various languages could be used to reach the people.

(d) Slogans or catchy words are often used.

Question 2

(a) Define commerce

(b) Explain the different functions of commerce in your country.

Answer

(a) Commerce can be defined as the process of buying, selling, exchanging, and distributing goods
and services. Commerce can also be defined as trades and aids to trade.

(b) The function of commerce in any given country is as follows;

(i) Provide employment opportunities for citizens of the country. This can be seen in people who engage either in retail, wholesale, or big conglomerate trading.

(ii) Storage of goods is made possible through commerce. Warehousing as one of the aids to trade ensures the storage of goods until they are wanted.

In most cases, big traders like wholesalers and big retailers usually gain large quantities of goods for sale. They need housing facilities to store the goods before they are sold.

(iii) It increases the standard of living of the people by making it possible for scarce commodities to arrive in the country from other countries through international trade.

(iv) It facilitates international cooperation. Many countries engage in different types of productive occupations due to improvements in technology.

(v) Infrastructural development. Commerce brings about the development of the infrastructural facilities of a country.

(vi) Through banking and finance, the fund needed for commerce is made possible. 

(vii) Through commerce, the exchange of goods and services is made possible.

Question 3

a. State the ways through which transport aids trade
b. Explain the factors that a businessman may consider before choosing means of transport for
his goods

Answer

a. The ways through which transport aids trade are:

i. Facilitates the movements of goods and passengers from place to place.

ii. It aids specialization by moving the factors of production from one place to the other.

iii. Greater choice of goods is made available to the consumers.

iv. Helps in the stabilization of prices of manufactured and agricultural goods.

v. It creates an interdependent world. No country can now exist without the others.

b. The factors which a businessman may consider before choosing means of transport for his
goods are;

i. Distance/Location: The location where the goods are needed will help to determine the choice of transport. Where the place is far, air may be chosen.

ii. Unit volume of the goods: valuable goods like minerals need to be carried as quickly as possible
to avoid pilfering.

iii. Destination: There are such places that have no other means of transport than by road.

iv. Available means: The means of transport available where the goods are located is what will be
used.

v. The nature of the goods requires carrying perishable items quickly to minimize spoilage, while carriers transport bulky goods by rail or road.

vi. The weight of goods is equally considered

vii. Customer preference: The customer’s choice will also influence the choice of transport.

viii. Safety of the goods: A means of transport that will ensure safe movement of goods is also a
factor to consider.

ix. Volume or quantity of goods also determines the choice of transport for a given commodity.

x. Cost of transport is also considered because a trader will prefer a cheaper means of transport.

xi. Timeliness of goods: Goods needed urgently require fast means of transport for conveyance.

Question 4

a. Outline the disadvantages of partnership

b. Explain the condition for dissolving a partnership.

Answer

a. The disadvantages of partnership are;

i. Unlimited liability: each partner is jointly liable with the other partners for all the debts and
obligations of the firm.

ii. The formation of a partnership requires a lot of formalities.

iii. Constant disagreement that may bring the business to an end

iv. The death or retirement of a member may result in the end of the partnership

v. The pride of ownership in partnership business is always diminished

vi. In most cases, the action of one partner binds the other whether or not favourable.

vii. There is always a delay in decision-making due to a series of consultations.

viii. Partnership businesses always lack retained profit because of the business profit shared.

b. The conditions for dissolving a partnership are;

i. When the fixed time for which the partnership was formed expires.

ii. By court order to dissolve the association.

iii. When one partner gives notice to the others of his intention to dissolve the firm.

iv. At the death of a partner or if he is declared bankrupt.

v. After the venture or undertaking for which the business was formed.

vii. The happening of an event that causes the partnership to become illegal.

Question 5

a. List the measures which the government may take to restrict import

b. state the measures a government may take to promote export

Answer

a. The measures the government may take to restrict imports are;

i. Import license: The government makes it a rule for importers to obtain it before embarking on
importation

ii. Devaluation of the local currency: This will make the importation to be very costly.

iii. Stiff exchange control regulation: This makes it difficult for importers to obtain foreign exchange to
pay for the commodities they might like to import.

iv. By encouraging the use of homemade products.

v. Imposition of import duties: Heavy tariffs which will increase the prices of the goods, thus people
will desist from buying foreign goods.

vi. Quotas: This measure is discriminatory as it sets a limit on the quantity of certain goods imported from specific countries.

vii. Tax exemption: The government may decide to give outright help to home manufacturers in terms
of exempting them from taxes.

b. The following are the measures the government may take to promote export;

1. Subsidies: The government makes payments to producers to reduce the cost of production and make their goods more competitive with foreign ones.

2. Organizing local or international trade fairs to display homemade goods and attract foreign marketers.

3. Removal of excise duties on goods meant for export over a period.

4. Encouraging exporters to keep their foreign earnings for use in the country.

5. Granting loans to exporters to aid them in financing their export trade.

6. The government should designate industrial areas specifically for producing goods intended for export.

7. Making available statistical dates as well as trading opportunities to those involved in export trade.

Question 6

a. State the various modes of transportation in Nigeria

b. Explain five factors that must be considered in selecting a mode of transportation:

Answer

a. The various means of transportation are;

i. Road

ii. Rail

iii. Air

iv. Sea or water

v. Containerization

vi. Pipelines

vii. Beast of burden

viii. Porterage

ix. Parcel post.

b. The factors that must be considered in selecting a mode of transportation are;

i. Distance/Location: The choice of transport relies on the goods’ required location.

ii. Unit volume of the goods: Carriers need to transport valuable goods like minerals as quickly as possible to avoid pilfering.

iii. Destination: There are such places that have no other means of transport than by road.

iv. Available means: The means of transport available where the goods are located is what will be
used.

v. The nature of the goods: carriers need to transport perishable items quickly to minimize spoilage, while they transport bulky goods by rail or road.

vi. The weight of goods is equally considered.

vii. Customer preference: The customer’s choice will also influence the choice of transport.

viii. Safety of the goods: A means of transport that will ensure safe movement of goods is also a
factor to consider.

ix. Volume or quantity of goods also determines the choice of transport for a given commodity.

x. Cost of transport is also a consideration because a trader will prefer a cheaper means of transport.

xi. Timeliness of goods: Goods needed urgently require fast means of transport for conveyance.

Question 7

a. Explain consumer protection.

b. state four organizations involved in consumer protection.

c. explain the functions of these organizations.

Answer

a. Consumer protection consists of the process adopted by the government, its agent as well as
private institutions to avoid the exploitation and cheating of the consumers as they purchase
goods from producers

b. The organizations involved in consumer protection are:

i. Standard Organization of Nigeria (SON)

ii. Manufacturer/producer association

iii. Rent tribunals

iv. Price control board

v. Professional board, e.g. Nigerian Medical Association (NMA), Nigeria Bar Association, e.t.c

vi. Environmental protection agencies, e.g. task force on environmental sanitation

vii. National Agencies for Food and Drug Administration Control(NAFDAC).

c. The functions of these organizations are:

i. To eliminate the hoarding of goods by producers and middlemen.

ii. To stamp out profiteering by businessmen

iii. To prevent the dumping of substandard and unsafe goods on the consumers

iv. To protect the consumers from misleading or untruthful information

v. To educate the consumers about the rights and obligations of the producers or sellers

vi. They help consumers to eliminate the assessment of choice problems in the market.

vii. They ensure that producers honour warranties or guarantees.

A solid grasp of NABTEB Commerce Questions is important for success in the examination.

By understanding the fundamental concepts and practicing real-world applications, candidates can confidently approach the test.

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