100% REAL COMMERCE WAEC OBJ AND THEORY 2014/2015

Verified commerce obj[1adabbcdacd 11adccaaaaac 21aaabddcdbd 31ccbdccccdb 41abcdddacca] (3a.) (i.) It wastes time and energy: This is because, a person may use all his time going about in the market looking for someone who has what he wants and at the same time needs what he has. (ii.) Difficulty in Assessing the value of commodity: For instance, it is difficult to determine how many tubers of yam will be equal to a basin of garri. (iii.) It does not encourage installmental payment -: This is as a result of the difficulty in assessing the value and non durability of the commodities used for exchange. (iv.) The double coincidence of wants : That is, before exchange can take place, one has to look for somebody who wants his commodity and at the same time must have what he wants at the material time. (v.) It does not encourage deferred payment: Deferred payment is a system whereby one buys a commodity and pays in future. under trade by barter, this is not possible because the goods used for exchange are not durable. (3b.) (i.) Money is generally acceptable. (ii.) Money is easily recognizable (iii.) The value of money is more stable. (iv.) Money can be stored for a long time. (v.) Money measures the value of goods and services. (7a) stock exchange market is a market where share,stock an other securities are purchased and sold.The body that regulate the affairs of stock exchange market is stock exchange council. (7b) function of the stock exchange market (i) it is the market for buying and selling of securities (ii) stock exchange market encourages and direct members of the public to invest viable stocks. (iii) stock exchange market help companies to raise capital by assisting the company. assisting the company to change their securities to cash. (iv) it assist government in implementing its monetary policies. (v) stock exchange determine the value of shares, stock and other securities. (vi) stock exchange market serve as a means or medium of converging information to investors. (8a) current Assets are also known as liquid capital. These are assets that are used for day to day running of the business. Current assets can be changed from one form to another. Examples of current assets are, stocks, debtors, cash in hand, cash at hand, prepayment (8b) uses of working capital (i) it is made available for the running of business (ii) working capital is used tn determine the financial position of the business (8c) state of affirs as at 31st december 2009: (8ci) current liabilities ---# Creditors --60,000 Bank overdraft--10,000=70,000 (8cii) current assets----# Stock--76,000 Debtors-- 50,000 Cash in hand--20,000=146,000. (8ciii) working capital=current assets-current liabilities=#146,000-#70,000=#76,000...(6a) a contract of sale is whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration called the price. the sale of goods is governed by the law of contract.(6b) (i.) The price: the provision of the contract states that the price in a contract may be determined by the contract or left to be fixed in a manner thereby agreed (ii.) The subject matter: the subject matter of the contract is the ownership of goods bought.the seller can sue for price the moment the goods passes to the buyer. iii. condition: this is a major term which goes to the root of the contract, a breach of which normally entitles the innocent party to treat the contract as having come to an end. it can be define as a fundamental term of a contract. if the seller, for example, breaches a condition in a contract of sale, it may give the buyer the right to reject the goods completely. iv. warranties: this is a minor term which is subsidiary to the main purpose of the contract, the breach of which only entitles the innocent party to damages, but he cannot regard the contract as having come to an end. (v.) Risk Of Loss: The risk of loss from any casualty to the Goods, regardless of the cause, will be the responsibility of the Seller until the Goods have been received by the Buyer. (vi.) Taxes.All sales taxes, tariffs, and other governmental charges shall be paid by Buyer and are Buyer's Responsibility Except As Limited By Law.