2024 NECO GCE COMMERCE: NECO GCE COMMERCE III & I QUESTIONS AND ANSWERS 2024 (2474)

(1)
(i) Warehousing
(ii) Advertising
(iii) Banking
(iv) Transport
(v) Insurance

(i) Warehousing:
Warehousing ensures the storage of goods till they are wanted. The storage of manufactured goods enables the manufacturers to meet the demands of their customers and to stabilise the prices of goods.

(ii) Advertising:
Advertising stimulates the demand for goods and services by informing the public about the uses of such goods and where to obtain them. The volume of sales is increased.

(iii) Banking:
Banks aid trade by making funds available to traders and other business establishments in the form of loans. Overdrafts payments for goods are also made through banks.

(iv) Transport:
Transport provides the means of carrying both raw material and finished goods to where they are needed.

(v) Insurance:
Insurance enables compensation to be paid to the trader. Traders are likely to suffer risks in the course of their trading. These risks can result through loss of the goods in transit.

(4)

(i)Increased sales

(ii)Customer loyalty

(iii)Competitive edge

(iv)Customers retention

(v)Increased profit

(i)Increased sales: there is no disputing that offering credit will increase your sales tremendously. This is due to the principle that when you are offering credit sales, many customers will ignore your rivals and run to you for patronage, you might even run out of sales in no time.

(ii)Customer loyalty: offering credits to customers help to build a confidence that you trust and confide in your customers to pay on the due date( this depends on your agreement). It builds solid relationships between you and your customers.

(iii)Competitive edge: offering credit sales will give you a competitive edge over your business counterparts. Customers prefer to patronize chances that do not mandate them to make instant payments over ones that make it mandatory.

(iv)Customers retention: selling on credit helps you retain your customers. By offering credit to old customers, you help to retain them by fostering their continued patronage, and by offering credit to new customers, you help to create a customer relationship between you two.

(v)Increased profit: by selling to people on credit, you have the opportunity to increase the price of your products. Many will never take this into consideration since they are not paying a dime in the initial stage. This will yield more profit than usual for you when they finally pay 'copied from G i s t p o w e r . c o m free' up.

(6)
(i) Product
(ii) Price
(iii) Promotion
(iv) Place

*EXPLANATION*
(i) Product: This is the merchandise/goods and services offered for sale. - Product features, Packaging, Labeling Product equality etc.

(ii) Price: This is the value placed on a product. It includes: - Price level, Discounts , Payment terms.

(iii) Promotion: This is concerned with informing customers of product features and persuading them to buy the product. It consists of: - Advertising, Sales promotion , Personal selling, Public relations.

(iv) Place: This is concerned with putting the right quantity of products in the right location at the appropriate time. It comprises: Market overage, Channels of distribution , Inventory planning, Physical distribution (warehousing) Transport etc.

(7a)

surrender value is the actual sum of money a policyholder will receive if they try to access the cash value of a policy. Other names include the surrender cash value or, in the case of annuities, annuity surrender value.

(7b)

(i)DEALING WITH DEBT: You don't want your family to deal with financial liabilities during a crisis. Any outstanding debt-a home loan, auto loan, personal loan, or a loan on credit cards-will be taken care of if you happen to buy the right life insurance policy

(ii)LIFE ANSURANCE SUPPLEMENTS YOUR RETIREMENT GOALS: Who wouldn't like their retirement savings to last until they do? With a life insurance plan, you can ensure you have a regular stream of income every month.

(iii)BUYING LIFE ANSURANCE IS CHEAPER WHEN YOU'RE YOUNGER: Not every millennial needs a life insurance policy. If you haven't created an emergency fund or you're still living off your parents' money, insurance shouldn't be a priority.

(iv)YOUR BUSINESS IS ALSO TAKEN CARE OF: Life insurance isn't only for yourself and your family. Some insurance policies also take care of your business. If you own a business, then your business partner can purchase your portion of the business without hassle.

(v)PEACE OF MIND: Death is unavoidable. In the face of tragedy, the least you can do for your family is to secure their financial future. Even if it is a small policy, you know that you've done all you can to help them tide over 'copied from G i s t p o w e r . c o m free' difficult times.

(vi)HELPS ACHIEVE LONG-TERM GOALS: Since it is an instrument that keeps you invested for the long term, it would help you achieve your long-term goals such as buying a home or planning your retirement. It also provides you with diverse investment options that come along with different types of policies.

(7c)

-Life assurance-

(i)The time period for life insurance is generally 15-20 years.

(ii)Medical Examination is a must for taking the life insurance policy.

-Marine insurance-

(i)Period of one insurance is basically of one year

(ii)No medical examination is needed in this case.

(9)

(i) By agreement

(ii) By performance

(iii) By breach

(iv) By frustration

(v) By lapse of time

(i) By agreement:

Before any of the two parties perform their part of the contract, they may both agree to terminate it.

(ii) By performance:

When each party has performed their part of the contract, it is automatically terminated.

(iii) By breach:

A contract is terminated if one party fails to perform its part of the contract.

(iv) By frustration:

When the performance of a contract by one party is rendered impossible due to factors beyond its control or no contemplated by the two parties.