Commerce 😎

(2a)
-Memorandum of Association-
(i)Name and address of the company
(ii)Objective and purpose of the company
(iii)Type of company (public or private)
(iv)Liability of members (limited or unlimited)
(v)Capital structure (authorized share capital)

-Articles of Association-
(i)Rules for internal management and governance
(ii)Procedures for meetings and decision-making
(iii)Directors' powers and responsibilities
(iv)Shareholders' rights and privileges
(v)Procedures for amendments and alterations

(2b)
(i)Regulatory Compliance: Public corporations must navigate through complex and evolving regulatory frameworks, which can be time-consuming and costly to adhere to. Failure to comply with regulations can result in legal consequences and reputational damage.
(ii)Public Scrutiny: As publicly traded entities, corporations are subject to intense public and media scrutiny. This can lead to pressure to meet short-term financial targets, which may not align with long-term strategic goals.
(iii)Shareholder Activism: Public corporations are susceptible to shareholder activism, where influential shareholders may push for changes in management, strategy, or capital allocation. This can create internal conflicts and disrupt the company's operations.
(iv)Market Volatility: Public corporations are exposed to market volatility, which can impact stock prices, investor sentiment, and access to capital. Economic downturns and industry-specific challenges can significantly affect the company's performance.
(v)Leadership Transitions: Succession planning and leadership transitions can pose significant challenges for public corporations. Ensuring a smooth transfer of leadership and maintaining organizational stability during such transitions is crucial for the company's sustained success.

ANOTHER VERSION

(2a)
-Memorandum of Association-
(i)Name and address of the company
(ii)Objective and purpose of the company
(iii)Type of company (public or private)
(iv)Liability of members (limited or unlimited)
(v)Capital structure (authorized share capital)

-Articles of Association-
(i)Rules for internal management and governance
(ii)Procedures for meetings and decision-making
(iii)Directors' powers and responsibilities
(iv)Shareholders' rights and privileges
(v)Procedures for amendments and alterations

(2b)
(i)Regulatory Compliance: Public corporations must navigate through complex and evolving regulatory frameworks, which can be time-consuming and costly to adhere to. Failure to comply with regulations can result in legal consequences and reputational damage.
(ii)Public Scrutiny: As publicly traded entities, corporations are subject to intense public and media scrutiny. This can lead to pressure to meet short-term financial targets, which may not align with long-term strategic goals.
(iii)Shareholder Activism: Public corporations are susceptible to shareholder activism, where influential shareholders may push for changes in management, strategy, or capital allocation. This can create internal conflicts and disrupt the company's operations.
(iv)Market Volatility: Public corporations are exposed to market volatility, which can impact stock prices, investor sentiment, and access to capital. Economic downturns and industry-specific challenges can significantly affect the company's performance.
(v)Leadership Transitions: Succession planning and leadership transitions can pose significant challenges for public corporations. Ensuring a smooth transfer of leadership and maintaining organizational stability during such transitions is crucial for the company's sustained success.

(3a)
(i)Credit History: The bank manager would assess the individual's credit history, including any previous loans, credit card usage, and payment patterns. A good credit history demonstrates responsible financial behavior and increases the chances of loan approval.
(ii)Income and Employment Stability: The bank manager would evaluate the young school leaver's income source and stability. A stable job with a regular income stream enhances the borrower's ability to repay the loan.
(iii)Debt-to-Income Ratio: The bank manager would analyze the young school leaver's debt-to-income ratio, which compares the individual's monthly debt obligations to their income. A lower debt-to-income ratio indicates a lower financial burden and a higher capacity to repay the loan.
(iv)Collateral or Guarantor: Depending on the loan amount and the individual's creditworthiness, the bank manager might consider the availability of collateral or a guarantor. Collateral provides security for the loan, while a guarantor offers additional assurance of repayment.
(v)Purpose of the Loan: The bank manager would evaluate the purpose for which the loan is being sought. The individual's ability to articulate a clear and viable plan for the loan funds increases the likelihood of loan approval.

(3b)
(i)Insufficient Funds: If the customer's account does not have enough funds to cover the cheque amount, the bank will dishonour the cheque.
(ii)Irregular Signature: If the signature on the cheque does not match the signature on record or appears suspicious, the bank may dishonour the cheque to prevent fraud.
(iii)Post-Dated Cheque: If the customer issues a post-dated cheque, i.e., a cheque with a future date, the bank will dishonour the cheque if presented for payment before the specified date.
(iv)Stale Cheque: A cheque becomes stale after a certain period, typically six months or a year, depending on the bank's policy. If a customer presents a stale cheque, the bank will dishonour it.
(v)Stop Payment Request: If the customer requests a stop payment on a cheque, typically due to loss or theft, the bank will dishonour the cheque to prevent unauthorized payment.

_*COMMERCE ANSWERS_*


8

(a) Cost of goods sold:
Cost of goods sold = Opening stock + Purchases - Closing stock
Cost of goods sold = 200,000 + 900,000 - 100,000
Cost of goods sold = 1,000,000

(b) Gross profit:
Gross profit = Sales - Cost of goods sold
Gross profit = 1.3 * Cost of goods sold - Cost of goods sold
Gross profit = 1.3 * 1,000,000 - 1,000,000
Gross profit = 300,000

(c) Total sales:
Total sales = Cost of goods sold + Gross profit
Total sales = 1,000,000 + 300,000
Total sales = 1,300,000

(d) Net profit:
Net profit = Gross profit - Salaries and wages - Shop rent
Net profit = 300,000 - 120,000 - 150,000
Net profit = 30,000

(e) Rate of turnover:
Rate of turnover = Cost of goods sold / Average stock
Average stock = (Opening stock + Closing stock) / 2
Average stock = (200,000 + 100,000) / 2
Average stock = 150,000
Rate of turnover = 1,000,000 / 150,000
Rate of turnover = 6.67

WAEC COMMERCE ANSWER

NUMBER 7

7a)
Deregulation involves the removal or simplification of government rules and regulations that constrain the operation of market forces. It aims to reduce the burden on businesses and stimulate competition by allowing market forces to dictate prices, services, and operations *WHILE* Commercialisation refers to the process of transforming public services or enterprises into commercially viable entities. This involves restructuring these entities to operate in a more business-like manner, often with a focus on profitability and efficiency.

7b)
Government of Country Z Selling Its Transport Company

i. Name of the Policy: The policy that the government wishes to adopt is called Privatisation.

ii. Reasons for Privatisation:
1. Improving Efficiency:Public sector enterprises often suffer from inefficiencies due to bureaucratic red tape, lack of competition, and poor management practices. Privatisation can lead to better management practices and operational efficiencies as private companies are typically driven by profit motives and competitive pressures.

2. Reducing Fiscal Burden:Maintaining and subsidising state-owned enterprises can be a significant financial burden on the government. By privatising the transport company, the government can reduce its fiscal deficits and allocate resources to other critical areas such as health, education, or infrastructure development.

3. Attracting Investment:Privatisation can attract domestic and foreign investment into the sector. Private investors are often more willing to inject capital into modernising infrastructure and expanding services, leading to improved quality and availability of transport services.

4. Encouraging Competition:A state monopoly in the transport sector can stifle competition and innovation. Privatisation can open up the market to multiple players, fostering a competitive environment that encourages innovation, improves service quality, and lowers prices for consumers.

5. Revenue Generation:Selling the transport company can generate immediate revenue for the government. These funds can be used to pay off public debt or invest in other areas of the economy that require urgent attention or development.

1. (a) Organizational Chart for ABC Breweries Limited:


General Manager
├── Finance Manager
├── Marketing Manager
├── Production Manager
├── Production Supervisors
├── Factory Workers
├── Sales Agents
├── Administrative Manager
├── Administrative Officers
└── Accounts Officers



(1b)
- Finance Department: Responsible for managing the company's finances, including budgeting, financial planning, and financial reporting.

- Marketing Department: Responsible for promoting and selling the company's products, including market research, advertising, and customer relations.

- Production Department: Responsible for overseeing the production process, including managing production schedules, controlling production costs, and ensuring product quality.

- Administration Department: Responsible for managing the company's administrative functions, including office operations, human resources, and legal affairs.

COMMERCE OBJ ANSWERS
01-10: CBBADBCCCA
11-20: CCBABDABAD
21-30: DCCCBACCAD
31-40: BCBDDABBBB
41-50: DACBCBDABA
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