neco 2017 commerce | Essay

Prepare for your exams with neco questions? Reviewing past/model questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 commerce (Essay) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1 View Details
Commerce is the activity of buying and selling goods and services and the system that links producers with consumers. Answer the following questions.
Question Parts
(a)
Define commerce and explain its three major components, giving a practical example for each component from the Nigerian economy.
(b)
Discuss how the development of information and communication technology (ICT) has transformed the traditional functions of commerce in Nigeria. Include at least two specific ways ICT influences buying, selling and distribution.
(c)
Evaluate the statement: “A well‑functioning commercial sector reduces unemployment.” In your evaluation consider both positive and negative impacts and support your arguments with relevant economic concepts.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 2 View Details
The table below shows Nigeria’s external trade performance for the years 2022 and 2023. | Year | Exports (₦ billions) | Imports (₦ billions) | Export Price Index* | Import Price Index* | |------|----------------------|----------------------|----------------------|----------------------| | 2022 | 2.5 | 3.2 | 110 | 115 | | 2023 | 2.8 | 3.5 | 115 | 120 | *Base year = 2020 (index = 100). In 2023 the government introduced a 5 % tariff on imported machinery. Machinery accounted for 20 % of total imports in 2022 and 25 % of total imports in 2023. Answer the following questions:
Question Parts
(a)
Calculate the trade balance for each year and comment on the trend observed between 2022 and 2023.
(b)
Determine the terms of trade (ToT) for each year, expressed as a percentage (ToT = (Export Price Index ÷ Import Price Index) × 100). Interpret the change between the two years.
(c)
Estimate the additional revenue the government earned in 2023 from the 5 % tariff on imported machinery. Assume the value of machinery imports is proportional to its share of total imports for that year.
(d)
Discuss two possible macro‑economic effects of the increased tariff revenue on the Nigerian economy.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 3 View Details
A trader purchases 200 units of a product at a cost of ₦150 per unit. He intends to apply a markup of 40 % on the cost price to set his initial selling price. To encourage bulk purchases, he offers a discount of 10 % on the selling price to customers who buy more than 50 units. His fixed overheads for the month amount to ₦20,000.
Question Parts
(a)
Calculate the initial selling price per unit before any discount.
(b)
Determine the selling price per unit after the 10 % discount for bulk buyers.
(c)
If all sales are to bulk buyers (i.e. at the discounted price), calculate the break‑even quantity of units.
(d)
During the month the trader sells 120 units to bulk buyers and the remaining 80 units at the initial price. Compute the total profit (or loss) for the month.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 4 View Details
An importer in Nigeria plans to import 5,000 kg of cocoa beans from Ghana. The invoice price is $2 per kilogram. The prevailing exchange rate is ₦460 per US dollar. Import duty of 5 % is levied on the invoice value, and a levy of 2 % is charged on the total cost after duty. A freight charge of ₦150,000 is also payable. The exchange rate is expected to increase by 8 % before the importer settles the payment.
Question Parts
(a)
Calculate the total cost in Naira if the transaction is settled at the current exchange rate.
(b)
Determine the total cost in Naira if the exchange rate rises by 8 % before settlement.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 5 View Details
A retail shop sells three product categories: A, B and C. The cost price per unit of each category is ₦2,500; ₦1,800; and ₦3,200 respectively. The retailer applies a markup of 30 % on category A, 45 % on category B and 25 % on category C. In a month the shop sells 120 units of A, 200 units of B and 80 units of C.
Question Parts
(a)
Determine the selling price per unit for each category.
(b)
Compute the total revenue earned from the sales of the three categories.
(c)
Calculate the overall gross profit margin (percentage) for the month.
(d)
If the retailer decides to increase the markup on category C by 10 percentage points while keeping other markups unchanged, discuss qualitatively how this will affect (i) the gross profit margin and (ii) the competitiveness of product C.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 6 View Details
A wholesaler purchases a batch of 5,000 units of a product at a unit cost of ₦1,200. The supplier offers a trade discount of 5 % on the total invoice if payment is made within 10 days; otherwise the full amount is payable. The wholesaler adds a markup of 40 % to determine the selling price to retailers. Of the total sales in a month, 60 % are cash sales (paid immediately) and the remaining 40 % are credit sales on terms 2 % discount if paid within 30 days, otherwise payable in full after 30 days. Assume that all credit customers take the discount.
Question Parts
(a)
Calculate the effective unit cost to the wholesaler after taking the early‑payment trade discount.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 7 View Details
A small manufacturing enterprise is owned and operated by three individuals. The partners have contributed capital and agreed on a profit‑sharing arrangement as described in the sub‑questions.
Question Parts
(a)
Explain the key differences between a sole proprietorship, a partnership and a limited liability company (LLC) with respect to (i) liability of owners, (ii) methods of raising capital, and (iii) continuity of existence.
(b)
The three partners – A, B and C – have contributed capital of ₦40,000, ₦30,000 and ₦30,000 respectively. They have agreed that profit will be shared in the ratio 2:1:1 (A:B:C). If the partnership records a net profit of ₦120,000 for the year, calculate the amount of profit each partner will receive. Additionally, discuss two essential clauses that should be included in the partnership agreement to handle the possible withdrawal of a partner.
(c)
A technology start‑up is planning to raise ₦10,000,000 in equity to develop a new software product. Evaluate which form of business organization – sole proprietorship, partnership or LLC – would be most suitable for this venture, giving at least three reasons related to sources of finance, liability and growth potential.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 8 View Details
A manufacturing company is planning to expand its production capacity and needs to raise ₦5,000,000.
Question Parts
(a)
Define short‑term and long‑term sources of finance. Provide two examples of each and explain one advantage of each example.
(b)
The company can obtain the required ₦5,000,000 either (i) by a bank loan at 12% per annum payable annually, or (ii) by issuing 10% debentures with a face value of ₦1,000 each, a market price of ₦950, and flotation costs of 2% of the issue amount. The debentures mature in 5 years with interest payable annually. Calculate the effective annual cost of each source of finance and recommend the cheaper option.
(c)
Discuss how the choice between the bank loan and debenture issue would affect the company's (i) debt‑to‑equity ratio, (ii) interest‑coverage ratio, and (iii) overall financial risk.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support