WAEC 2026 Commerce Question And Answers (Obj & Theory)

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Friday, 19th June 2026
Commerce 2 (Essay) 9:30am – 11:30am
Commerce 1 (Objective) 11:30am – 12:20pm

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COMMERCE OBJ*
01–10:BCBDABDBCB
11–20: ACAADDDDAD
21–30: BDACBBDCAB
31–40:BBBCABCBDB
41–50:DCCCCBAAAD

COMPLETED

NOTE: USE THIS TO TRACE CAREFULLY IF THE OBJECTIVE QUESTION PAPER WHERE RESHUFFLED

1. B. trade and auxiliaries to trade
2. C. computers to conduct business
3. B. primary occupation
4. D. land
5. A. it faces unlimited liability
6. B. participating preference shareholders
7. D. consortium
8. B. public company
9. C. interest
10. B. Distribution of goods to customers
11. A. trade association
12. A. sex
13. A. insufficient capital
14. A. D 3,000
15. D. D 6,000
16. D. 3,000
17. D. terms of trade
18. D. customs duties
19. A. Central Bank
20. D. bonus issue
21. B. assured value
22. D. shares
23. A. bulk purchase
24. C. commission
25. B. Retail
26. B. dock warrant
27. D. bonded warehouse
28. C. motherboard
29. A. store of value
30. B. finance the purchase of equipment
31. B. contribution
32. B. informative advertising
33. B. television
34. C. sales promotion
35. A. written communication
36. B. lapse of time
37. C. regulates businesses
38. B. increase investment
39. D. demographic
40. B. provision of pipe borne water
41. D. Penetration
42. C. copyright
43. C. Standard Organization Act
44. C. span of control
45. C. futures price
46. D. setting company goals
47. A. privatization
48. A. improvement of revenue base
49. A. 1964
50. D. Togo
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WAEC 2026 Commerce Question And Answers

(1a) Commerce is the buying and selling of goods and services through traditional methods and physical channels, while e-commerce is the buying and selling of goods and services through electronic means, especially the internet.

(1bi) Business to Customer (B2C) is a type of e-commerce in which businesses sell goods and services directly to individual consumers through online platforms. Customers can browse products, place orders, make payments, and receive deliveries without visiting a physical store. Examples include online shopping websites and retail platforms.

(1bii) Government to Business (G2B) is a type of e-commerce that involves online interactions and transactions between government agencies and business organizations. It enables businesses to access government services such as tax payments, business registration, license applications, contract bidding, and regulatory compliance through electronic platforms.

(1c) =Advantages=
(PICK ANY TWO)
(i) It enables buying and selling of goods at any time of the day.
(ii) It provides access to a wider market beyond geographical boundaries.
(iii) It reduces operational and transaction costs.
(iv) It offers convenience to both buyers and sellers.
(v) It allows quick and easy comparison of prices and products.
(vi) It speeds up communication and transaction processing.

=Disadvantages=
(PICK ANY THREE)
(i) It is vulnerable to cybercrime, hacking, and online fraud.
(ii) Customers cannot physically inspect products before purchase.
(iii) It depends heavily on internet connectivity and electricity.
(iv) Delivery delays may occur after purchase.
(v) Technical failures can disrupt business operations.
(vi) Personal and financial information may be exposed to security breaches.
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(2a)
Division of labour is the process of breaking down a production activity into several smaller tasks and assigning each task to different workers according to their skills and specialization in order to increase efficiency and productivity

(2b)
(PICK ANY THREE)
(i) Capital is man-made. Capital is not naturally available like land. It is created through human effort and production activities. Examples of capital include machines, tools, equipment, factories, and vehicles used in the production of goods and services.
(ii) Capital is productive. Capital contributes directly to the production process by helping workers produce more goods and services efficiently. The use of machines and modern equipment increases productivity and improves the quality of output.
(iii) Capital is subject to depreciation. Capital assets lose value over time due to constant use, wear and tear, ageing, and technological changes. For example, machines and vehicles become less efficient and may require replacement after prolonged use.
(iv) Capital has a monetary value. Every capital asset can be valued in monetary terms. Businesses can determine the worth of their machines, buildings, tools, and equipment, making it possible to record them in financial statements.
(v) Capital is relatively mobile. Capital can be moved from one place to another or transferred from one line of production to another where it is needed. For instance, machinery and funds can be relocated to areas where they can be used more profitably.
(vi) Capital is derived from savings and investment. Capital is accumulated when individuals, firms, or governments save part of their income and invest it in productive assets. Without savings and investment, the acquisition of capital goods needed for production would not be possible.

(2ci)
Extraction occupation refers to economic activities that involve the removal or obtaining of natural resources directly from the earth, water, and forests for human use and industrial production. People engaged in extraction occupations obtain raw materials from nature without changing their original form. These raw materials serve as inputs for other sectors of the economy, especially manufacturing industries.

=Examples=
(i) Farming
(ii) Fishing
(iii) Mining
(iv) Forestry

(2cii)
Manufacturing occupation refers to economic activities that involve the processing and transformation of raw materials into finished or semi-finished goods through the use of labour, machines, and technology. Manufacturing adds value to raw materials and produces goods that can be consumed directly or used in further production processes.

=Examples=
(i) Textile production
(ii) Cement manufacturing
(iii) Automobile assembly
(iv) Food processing.
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(3ai)
The type of cooperative society formed by the plantain farmers of Falla community is an Agricultural Cooperative Society (Farmers’ Cooperative Society).

(3aii)
(PICK ANY FOUR)
(i) Voluntary Membership: Membership is open to all eligible persons who are willing to join and accept the rules and regulations of the society. No individual is forced to become a member, and members are free to withdraw according to the society’s regulations.
(ii) Democratic Control: The society is managed according to democratic principles where each member has one vote irrespective of the amount of capital contributed. Important decisions are made collectively by members during meetings.
(iii) Common Interest: Members unite to pursue shared economic and social objectives. The society is established to promote the welfare of members through mutual assistance and cooperation.
(iv) Limited Return on Capital: Members receive only a limited interest on the capital they contribute. The major aim of the society is service to members rather than profit maximization.
(v) Distribution of Surplus: Any surplus or profit made by the cooperative is distributed among members according to the volume of their transactions or participation in the activities of the society.
(vi) Legal Recognition: The cooperative society is usually registered under the relevant cooperative laws, giving it legal status and enabling it to operate officially.
(vii) Self-help and Mutual Assistance: Members contribute resources and work together to solve common problems and improve their economic conditions.
(viii) Open Membership: Membership is generally open to all persons who share the objectives of the society and are willing to comply with its rules and regulations.

(3b)
(PICK ANY FIVE)
(i) Limited Liability: The liability of shareholders is limited to the amount they have invested in the company. Their personal properties cannot be used to settle the debts of the business beyond their investment.
(ii) Separate Legal Entity: A private company has a legal existence distinct from its owners. It can own assets, enter into contracts, borrow money, and sue or be sued in its own name.
(iii) Continuity of Existence: The company enjoys perpetual succession, meaning that it continues to exist despite the death, retirement, insolvency, or withdrawal of any shareholder.
(iv) Ability to Raise Capital: A private company can obtain capital from shareholders and may attract additional investment to finance expansion and business growth.
(v) Efficient Management: The company can appoint qualified professionals and experts to manage its affairs, resulting in improved efficiency and better decision-making.
(vi) Greater Stability: Because ownership can be transferred and the company has perpetual succession, it enjoys more stability than sole proprietorships and partnerships.
(vii) Business Expansion Opportunities: The availability of capital and professional management enables the company to expand its operations more easily and enter new markets.
(viii) Enhanced Business Reputation: A private company often enjoys greater public confidence and credibility because it is registered and operates under legal regulations.
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(4a) (PICK ANY FIVE)
(i) Hawkers bring goods closer to customers.
(ii) They require little capital to start and operate.
(iii) They offer flexible and convenient services to buyers.
(iv) Customers can buy goods in small quantities.
(v) Hawkers are easily accessible in traffic and busy areas.
(vi) They may sell goods at lower prices than supermarkets.
(vii) Hawking provides employment and a source of income.
(viii) Some areas do not have nearby supermarkets.

(4b) (Pick Any Five)

(i) It is a very large retail store.
(ii) It combines the features of a supermarket and a department store.
(iii) It operates mainly on a self-service basis.
(iv) It stocks a wide variety of goods under one roof.
(v) Goods are arranged in different sections or departments.
(vi) Prices are usually clearly marked on products.
(vii) It has large parking spaces for customers.
(viii) It handles a high volume of sales and customers.
(ix) It usually offers goods at competitive prices.
(x) Customers pay for goods at centralized checkout points.

*WAEC COMMERCE*

*NUMBER FIVE*

(5a)
(Pick Any Five)

(i) Performance of the Contract: A contract comes to an end when all parties involved have fully carried out their obligations as agreed.
(ii) Mutual Agreement: The parties may decide together to cancel or terminate the contract before its completion.
(iii) Breach of Contract: If one party fails to fulfill the terms and conditions of the contract, the other party may terminate it.
(iv) Frustration of Contract: A contract may be terminated when unforeseen events make its performance impossible, such as natural disasters, war, or government restrictions.
(v) Expiration of Time: A contract automatically ends when the agreed period for its operation expires.
(vi) Death of a Party: Where the contract involves personal skills or services, the death of either party may terminate the agreement.
(vii) Bankruptcy or Insolvency: A contract may be dissolved if one of the parties becomes bankrupt and is unable to fulfill their obligations.
(viii) Operation of Law: Certain legal actions or court judgments may render a contract void or unenforceable.

(5b)

(i) Sale of Goods Act
The Sale of Goods Act is a law that governs contracts involving the buying and selling of goods. It states the rights and responsibilities of both buyers and sellers and ensures that goods sold are of the quality and description agreed upon by the parties involved.

(ii) Foods and Drugs Act
The Foods and Drugs Act is a law enacted to regulate the manufacture, importation, storage, distribution, advertisement, and sale of food, drugs, cosmetics, and related products. It is aimed at protecting consumers from harmful, fake, or substandard products.

(iii) Standard Organization Act
The Standard Organization Act is a law that establishes standards for products and services in a country. It ensures that goods produced locally or imported meet approved quality and safety requirements before they are sold to consumers.

(iv) Factory, Shops and Offices Act
The Factory, Shops and Offices Act is a law designed to regulate working conditions in factories, shops, and offices. It provides rules concerning the health, safety, and welfare of workers and ensures that employers maintain suitable working environments.

(v) Hire Purchase Act
The Hire Purchase Act is a law that regulates the purchase of goods through installment payments. Under this arrangement, the buyer takes possession of the goods immediately but becomes the legal owner only after paying the full purchase price as agreed in the contract.

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(6a)
Business management is the process of planning, organizing, directing, coordinating, and controlling the resources and activities of a business in order to achieve its objectives efficiently and effectively.

(6bi)
Economic environment refers to the economic factors and conditions that influence the operations and performance of a business. These include inflation, interest rates, income levels, government policies, taxation, and unemployment.

(ii)
Social environment refers to the customs, beliefs, values, culture, lifestyle, education, religion, and population characteristics of a society that affect the activities and decisions of a business.

(6c)

(i) Human resources: These are the employees and managers whose skills, knowledge, and experience are used to achieve business objectives.
(ii) Financial resources: These are the funds or capital required to start, operate, and expand a business.
(iii) Physical resources: These include land, buildings, machinery, equipment, furniture, and vehicles used in business operations.
(iv) Material resources: These are the raw materials, components, and supplies needed for the production of goods and services.

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(7a)
The policy adopted by the state is Deregulation.

(7b)

(i) Poor management and administration.
(ii) Corruption and misappropriation of funds.
(iii) Overstaffing and low productivity.
(iv) Poor maintenance of vehicles and equipment.

(7c)
Advantages (PICK ANY TWO)
(i) It promotes efficiency and productivity.
(ii) It encourages competition and improves service delivery.
(iii) It attracts private investment.
(iv) It reduces government expenditure on subsidies.

Disadvantages (PICK ANY THREE)
(i) Prices of goods and services may increase.
(ii) Some workers may lose their jobs due to restructuring.
(iii) Private firms may exploit consumers through excessive pricing.
(iv) Small businesses may find it difficult to compete.
(v) Government loses direct control over the industry.

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(8a) Bonto Limited

(i)Total Fixed Assets
Fixtures + Motor vehicles
= 350,000 + 800,000 = ₦1,150,000

(ii)Total Current Assets
Stock + Debtors + Cash + Bank
= 200,000 + 200,000 + 40,000 + 70,000 = ₦510,000

(iii) Total Liabilities
Liabilities = Creditors + Overdraft
= 20,000 + 50,000 = ₦70,000

(iv)Working Capital
Working capital = Current Assets – Current Liabilities
= 510,000 – 70,000 = ₦440,000

(v) Capital Employed

Total Assets – Current Liabilities
Total Assets = 1,150,000 + 510,000 = 1,660,000
= 1,660,000 – 70,000 = ₦1,590,000

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