COMMERCE ANSWERS 

(1a) (PICK ANY TWO)

(i) Land is a free gift of nature:
It is naturally provided and not created by human effort. Resources such as soil, forests, minerals, and rivers are naturally available for productive use.

(ii) Its supply is fixed:
The total quantity of land is limited and cannot be increased by human effort, even though its usage can vary.

(iii) Land is immovable:
Land cannot be transported from one place to another. Only its ownership or control can change, but its physical location remains the same.

(iv) It is subject to diminishing returns:
When additional labour or capital is applied to a fixed piece of land, the extra output generated begins to reduce after a certain point.

(1b) (PICK ANY TWO)

(i) It may lead to monotony or boredom due to repetitive tasks.
(ii) It increases interdependence, meaning failure in one stage disrupts the entire production chain.
(iii) It reduces creativity and initiative, since workers focus on only one small task.
(iv) It can cause loss of job satisfaction because workers do not see the final product.

(1c) (PICK ANY THREE)
(i) Specialization by Product:
This occurs when an individual, firm, or region concentrates on producing one specific product in which they have advantage.
Example: A farmer producing only cocoa.

(ii) Specialization by Process (Stage of Production):
Production is divided into stages, and each worker or group handles a specific stage.
Example: In a factory—cutting, assembling, and packaging done by different workers.

(iii) Specialization by Occupation or Trade:
Individuals focus on particular professions or trades based on skill, training, and expertise.
Example: Doctors, tailors, mechanics, and lawyers.

(iv) Specialization by Region (Geographical Specialization):
Different regions concentrate on producing goods suited to their natural resources or climate.
Example: A region producing mostly rice due to fertile soil.

(v) Specialization by Firm:
A firm focuses on producing only one type or line of goods to improve efficiency.
Example: A company producing only cement

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(2a) A limited partnership is a type of business arrangement in which at least one partner has unlimited liability (general partner) and is responsible for managing the business, while one or more partners (limited partners) contribute capital and have limited liability, meaning they are only liable to the extent of their investment and cannot take part in the management of the business.

(2b)
(PICK ANY SIX)
(i) Name of the partnership business
(ii) Nature and objectives of the business
(iii) Capital contribution of each partner
(iv) Profit and loss sharing ratio
(v) Duties and responsibilities of each partner
(vi) Procedure for admitting new partners
(vii) Withdrawal or retirement rules
(viii) Method of dispute resolution
(ix) Duration of the partnership
(x) Provisions for dissolution of the firm

(2c)
(PICK ANY SIX)
(i) Death of a partner: When any partner in a partnership business dies, the partnership agreement may automatically come to an end, especially if there is no provision in the deed for continuity. The death affects ownership, capital contribution, and management, which can force the business to terminate or be restructured.
(ii) Bankruptcy or insolvency of a partner: If a partner becomes bankrupt or declared insolvent by a court, the partnership may be dissolved. This is because such a partner loses the ability to meet financial obligations, which weakens the financial stability and trust required to continue the partnership.
(iii) Mutual agreement among partners: A partnership can be terminated when all partners jointly agree to dissolve it. If partners believe the business is no longer profitable or wish to pursue different interests, they can conclude to end operations through collective consent.
(iv) Expiration of the partnership term or completion of a project: If the partnership was created for a specific period or particular project, it ends automatically when the time expires or the project is completed. For example, a partnership formed to construct a building dissolves once the project is finished.
(v) Illegality of the business: If the business activities become illegal due to changes in government policies or laws, the partnership must be dissolved. It is unlawful to continue running a business that violates legal provisions, therefore termination becomes mandatory.
(vi) Retirement or voluntary withdrawal of a partner: When a partner decides to leave the business willingly, the partnership can be dissolved if the remaining partners are unable to continue. Retirement affects capital input and management roles, and if the deed does not allow continuation, the business must end.
(vii) Court order: A court of law can dissolve a partnership when there is serious misunderstanding, misconduct, breach of agreement, or constant disagreements among partners that affect business progress.
(viii) Permanent incapacity of a partner: If a partner becomes permanently ill or disabled and cannot perform duties or contribute to management, the partnership may be terminated, especially when the partnership heavily depends on the partner’s skills and services.

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(3a)
The group of businessmen from Country Z would contact the Chamber of Commerce and Industry.

(3b)
(PICK ANY FOUR)
(i) To promote and protect the interest of business enterprises within the country.
(ii) To encourage and develop both local and international trade activities.
(iii) To provide advice and useful business information to investors and business owners.
(iv) To represent the business community before the government on matters affecting commerce and industry.
(v) To settle trade disputes among business owners through arbitration and negotiation.
(vi) To organize trade fairs, exhibitions, seminars, and conferences to expand market opportunities.
(vii) To promote industrial growth and development through partnership and investment.
(viii) To create a stable business environment that encourages entrepreneurship and competition.

(3c)
(PICK ANY FIVE)
(i) It provides a market where shares, stocks, bonds, and other securities can be bought and sold.
(ii) It enables companies to raise long-term capital by selling shares to the public.
(iii) It provides a means of evaluating the worth of a company through share prices.
(iv) It protects investors by regulating trading activities and ensuring transparency.
(v) It creates opportunities for investors to convert their shares into cash easily (market liquidity).
(vi) It encourages savings and investment by allowing individuals to buy securities.
(vii) It assists the government in raising funds through the sale of government securities.
(viii) It facilitates economic growth and development by mobilizing funds for productive use.

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(4a)
Terms of trade refers to the ratio at which one country’s goods exchange for the goods of another country. It shows how many units of a country’s exports are needed to import a unit of foreign goods. Good terms of trade indicate that a country can obtain more imports for a given quantity of exports.

(4b)
(i) Name and address of the shipper (consignor).
(ii) Name and address of the consignee (receiver).
(iii) Description of the goods
(iv) Port of loading where goods are shipped from.
(v) Port of discharge where goods are to be delivered.
(vi) Name of the vessel carrying the goods.
(vii) Freight payable (terms of payment for carriage).
(viii) Date of shipment and place of issue of the bill.

(4c)
Preparing and submitting documentation required for customs clearance.
(ii) Paying duties and taxes on behalf of the importer/exporter.
(iii) Arranging transport of goods from the port to the final destination.
(iv) Ensuring compliance with government regulations for imports and exports.
(v) Providing advice on shipping, tariffs, and documentation procedures.

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(6a)
Delegation of authority occurs when a manager assigns tasks or responsibilities to a subordinate, while retaining overall accountability. In this case, Mrs. Egbon delegated the responsibility of attending the trade fair to her assistant, enabling her to focus on other managerial duties.

(6b)
(i) Time Management: Mrs. Egbon can focus on other important tasks, improving overall productivity. By delegating, she avoids being overwhelmed and ensures that critical managerial duties are not neglected.
(ii) Employee Development: The assistant gains experience and develops skills in handling responsibilities. This exposure prepares the subordinate for future leadership roles within the company.
(iii) Efficiency: Tasks can be completed simultaneously, reducing delays and workload pressure on the manager. It ensures that business operations continue smoothly without interruptions.
(iv) Motivation: Delegation shows trust in the subordinate, boosting morale and confidence. Feeling valued and trusted encourages the assistant to perform better and take initiative.

(6c)
(i) Risk of Mistakes: The assistant may lack experience, leading to errors or poor representation. Such mistakes could harm the company’s reputation or result in financial loss.
(ii) Loss of Control: Mrs. Egbon may not oversee all details personally, reducing her direct influence on outcomes. Important decisions or observations may be missed in her absence.
(iii) Dependence on Subordinate: Over-delegation can make the manager overly reliant on assistants. This may create problems if the subordinate is unavailable or underperforms.
(iv) Miscommunication: Instructions might be misunderstood, resulting in actions not aligned with the manager’s intentions. Miscommunication can lead to inefficiency and conflict within the team.