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Commerce 2015 Neco Answers Now Available!!!

Thursday 25th June Paper III & II: Objective &
Essay –
Commerce – 10:00am – 12:40pm

Commerce type C


i.prospectus:A prospectus is any circular,note,newspaper advertisement or other invitation offering to the public for subscription or purchase of any share or debentures of company.it is usually published with application form.share are allotted to those who apply

ii.by offer for sale:the whole issue of shares is allotted to an issuing house (merchant bank,financial house) which offer them to the public by means of offer-for-sale

iii.by a right-issue:a newly established company may issue further capital by offering the shares concerned to existing members at favourable terms.

iv.by placing:a method of issuing securities through an intermediary such as a firm of stock brokers.the intermediary endeavours to place the issue among institutional investors

v.by introduction through the stock exchange whereby new issue of shares are made to the public by the company

i.problem of distance:international trade involves two or more countries that are far from one another

ii.problem of transport and communication:problem arises when transport and communication are not efficient as what happens in west Africa

iii.currency differences:before a country buys anything from another country she must change her currency to the other country's currency because,every country has its own currency.

iv.language problem:two countries that speak and understand the same language can trade more easily than the other way round.

v.cultural problem:certain aspects of people's culture constitute a stumbling block to international trade

-paper money
-bank money
-foreign money
-legal money

i.general acceptability:it must be acceptable to the people of that country community or a certain territory

ii.absolute homogeneity:the article used as money must be the same in all parts of the country where it is being accepted as a medium of exchange.

iii.recognizability:it is the quality makes people to detect which the real and counterfeit money

iv.divisibility:it must be capable f being divided into smaller units which facilitate exchange of goods and services
v.portability:money must be something that can be easily carried about from one place to another

i.pricing with the market:this is a pricing policy that takes into consideration the leaders in the industry.it is also known as "follow-the-leader" pricing i.e the producer charges prices that match those of the industry leader

ii.market skimming:this is a pricing policy that is applied by setting up an initial high price which will eventually be reduced as competition in the market goes up.this will induce consumers to buy more if the product when competitor's price remain high

iii.market penetration:this is a pricing strategy being used in introducing a new product into the market.it entails changing a low price in order to get back the initial investment from huge sales.

iv.supply and demand curve:this is a pricing policy in accordance with economic theory which states that the price of a product is one of where the supply and demand curves intercept each other (i.e the equilibrium price)

v.pricing above the market:this is a pricing policy that aims at changing higher prices than the competitors.it is a strategy usually adopted by firms selling to the wealthy people who want prestige or like to create a special class

i.climatic and weather differences:climatic and weather condition determine to a large extent the nature of occupation that will be practised in such an area.while lumbering in practised in thick swampy forest areas,fishing is being practised in the riverine area

ii.education,skill and training:normally,people engage in occupation in which they have education,skill and training.this is why a trained doctor engages in rendering medical services while unskilled workers are engaged in extractive occupations like farming,mining,quarrying etc

iii.natural resources:the presence of mineral resources in a particular place will attract the attention of miners while the existence of pool of water or seaport which are part of natural resources will dictate the type of occupation that is predominant in such area.

iv.salary&wages:the remuneration and conditions of service attached to a particular occupation determines the number that will be interested in such an occupation.for example,many people are running away from teaching as an occupation because of the poor condition of service attached to it

v.government policies:the policy of government as regards the age of employment determines the occupation the choice of occupation into which individual fits in


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