NABTEB 2021 Commerce Obj & Essay Questions And Answers – May/june

2021 NABTEB COMMERCE VERIFIED ANSWERS
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(2ai)
Self-service, such as most grocery shopping experiences where the product is available on-shelf for the shopper’s selection ,This goes a step further when shoppers use the self-checkout and scan the items, process the transaction, and bag the product themselves.

(ii) Pre-packaging: This is a system whereby goods are packed, wrapped or put inside containers, weighed and priced before they are arranged on the shelves in a store. In other words, it is a technique where by retailers sell goods already weighed, measured and packaged by manufacturers.

(iii) After-sales service is any support provided to a customer after the product or service has already been purchased, Companies use after-sales support as a business strategy as it typically leads to higher custom ear satisfaction, brand loyalty, and even word-of-mouth-marketing.

(iv) Branding: is the marketing practice of creating a name, symbol or design that identifies and differentiates a product from other products, An effective brand strategy gives you a major edge in increasingly competitive markets.

(2b)
Personal selling occurs when a sales representative meets with a potential client for the purpose of transacting a sale

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(3a)
(i) Land
(ii) Labor
(iii) capital and
(iv) entrepreneurship.

(3b) Specialization is a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency.

(3c)
(i) Increased output. When companies and individuals within a country focus on a specific task, overall output, and production increases.

(ii) Cheaper products. If different companies specialize in making one product or one component of a product, they are able to also work to reduce production costs by producing at a larger scale and selling more units at a lower profit margin.

(3d)
(i) Gets boring:
As you are aware that specialized work allows a person to concentrate on one aspect of work and day after day they perform the same work.

(ii) Cannot multitask:
Sometimes, being specialized in one work does not allow one to perform multitasking jobs.

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(4a)
{Pick any three}
(i) Savings accounts.
(ii) Checking accounts.
(iii) Money market accounts.
(iv) Certificates of deposit (CDs)
(v) Retirement accounts.

(4b)
An overdraft is an extension of credit from a lending institution that is granted when an account reaches zero

(4c)
(i) Drawer:
Drawer is the party who draws the cheque upon a specified banker, He is the maker of the cheque. He is the account holder who draws the cheque for drawing money from his bank account.

(ii) Drawee:
Drawee is the party upon whom the cheque is drawn. Drawee is the bank. It is the party to whom the drawer gives order to pay the amount to the person named on the cheque or his order to the bearer.

(iii) Payee:
Payee is the party who presents the cheque for payment. He is the person who receives money from bank. He is the party in favor of whom cheque is issued. The payee is the person whose name is mentioned on the cheque.

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(5a)
Advertising is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea.

(5b)
(i) Advertising helps a business to earn profits by enabling more people to know about the products and services and thus resulting in more sales.

(ii) Advertisements help the consumers to make decisions regarding which product and service to buy.

(iii) Advertising increases company traffic : Many consumers are more likely to visit a business after viewing an advertisement.

(iv) Advertising generates brand loyalty: Advertising allows for companies to target their customers and form a lasting connection with them.

(v) Advertising promotes repeat business: With all of the choices consumers are able to make, many once loyal consumers have strayed from previous businesses in search of other options.

(5c)
(i) Social Media Advertising
(ii) Print Advertising
(iii) Broadcast Advertising
(iv) Display Advertising

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(6a)
Occupation can be defined as any economic or productive activities which people engage in to create and provide goods and services in order to make a living.

(6b)
(i) Industry: Is used to describe all activities concerned with the physical production of goods.

(ii) Commerce: Commerce is the process of buying, selling and distribution of goods and services. It includes all occupation that are concerned with trader and other activities that will ensure effective and efficient distribution of goods and services

(iii) Services:
Services are sometimes classified a tertiary occupation. They are occupation that render services to the people, The people pay for the services directly or indirectly.

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(7a)
(i) Develop, own and operate ports and harbours.
(ii) Provide safe and navigable channel.
(iii) Offer cargo handling and storage services.
(iv) Maintain Port facilities and equipment.
(v) Ensure safety and security.
(vi) Develop and own property.

(7b)
(i) Bill of Exchange
(ii) Bill of Lading
(iii) Letter of Credit
(iv) Certificate of origin of goods
(v) Inspection certificate

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(8a)
(i) Retail Banks
(ii) Commercial Banks.
(iii) Cooperative Banks
(iv) Investment Banks
(v) Private Banks.
(vi) Online Banks.
(vii) Credit Unions.

(8b)
(i) Accepting Deposits:
The banks borrow in the form of deposits. This function is important because banks mainly depend on the funds deposited with them by the public.

(ii) Advancing Loans:
Another function of the bank is to give loans to others. If the bank does not lend the deposited money to others, how can it pay the interest on the deposits to depositors? Banks give loans to businessmen and firms usually for short periods only.

(iii) Discounting Bills of Exchange or Hundies:
A very important function of a modern bank is to discount bills or hundies of businessmen. It is like this, a businessman buys goods and is granted credit, say, for a month, The seller of the goods draws a bill of exchange which the purchaser is asked to sign.

(iv) Transfer of Money:
Banks transfer money from one place to another for their customers. Banks remit the funds of the people by means of a bank draft or a cheque. This is a cheap as well as safe method of transferring money from one place to another.

(v) Miscellaneous Functions:
A bank now-a-days serves its customers in various other ways. It has lockers or β€˜safe deposit vaults’. They are meant to keep the valuables of customers in safe custody. Further, a bank collects interest on behalf of its customers as well as pays dividends on behalf of joint-stock companies

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(9a)
(i) Economical Environment:
Economic Environment consists of Gross Domestic Product, Income level at national level and per capita level, Profit earning rate, Productivity and Employment rate, Industrial, monetary and fiscal policy of the government

(ii) Social Environment:
Social Environment consists of the customs and traditions of the society in which business is existing. It includes the standard of living, taste, preferences and education level of the people living in the society where business exists.

(iii) Political Environment:
Political environment constitutes all the factors related to government affairs such as type of government in power, attitude of government towards different groups of societies, policy changes implemented by different governments etc. The political environment has immediate and great impact on the business transactions so businessman must scan this environment very carefully.

(iv) Legal Environment:
Legal environment constitutes the laws and various legislations passed in the parliament. The businessman cannot overlook the legislations because he has to perform his business transactions within the framework of legal environment.

(v) Technological Environment:
Technological environment refers to changes taking place in the method of production, use of new equipment and machineries to improve, the quality of product. The businessman cannot closely monitor the technological changes taking place in his industry because he will have to implement these changes to remain in the competitive market.

(9b)
(i) Issued Capital
(ii) Subscribed Capital
(iii) Called-Up Capital
(iv) Uncalled Capital
(v) Paid Up Capital
(vi) Reserve Capital

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(10a)
(i) Credit sales allow customers, especially business customers, to generate cash on the commodity before paying the seller

(ii) credit sales allows company sells on credit, it attracts new customers who would otherwise not buy from the company

(iii) Selling on credit increases the sales volume of a company since the number of customers will increase

(iv) Increase in sales. An increase in sales may happen when you start selling on credit. Your customers are likely to buy from you as their cash flow is not disrupted and it is not necessary to pay upfront to competitors.

(v) Better customer loyalty. Offering credit to customers demonstrates trust. The fact you trust them to pay bills by the due dates encourages a loyal business relationship.

(10b)
(i) Promissory Note
(ii) Bill of exchange
(iii) Hundis
(iv) Cheque
(v) Bank Drafts:

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