Business Management 2003 WASSCE-Past Questions and Answers-WAEC

WAEC
Business Management 2003 WASSCE

WASSCE Past Questions and Answers for Business Management 2003 is a learning resource. Truly, we have designed this e-learning material to help students pass business management courses or exams.

Notably, this is irrespective of the relevant certificate accreditation board or authority or examining body.

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Table of Content

 

General Overview

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It has assists students to gain admission to business management University of their choice.

Indeed, if there is any business management classes you should attend to gain a business and management degree, then this website is your preferred choice.

Though business management past questions and answers pdf will soon be available for download.

Nevertheless, this business management studies material is very important in your ambition to pass any business management schools exam, including the WAEC BM paper.

Certainly, excelling in business management programs will be much easier when studying for your degree in business. 

Furthermore, business management colleges that award business management  certificates are always delightful to admit students who study business management subjects lists.

Truly, our site helps you with strategies on how to pass your business management examination. Secondly, we have materials on business management major topics, sub-topics, etc.

Therefore, our site is very helpful to Senior High School – SHS Students across the West African sub-region and the globe. Notably, some of these countries are Nigeria, Ghana, Sierra Leone, The Gambia and Liberia. 

Also, students in Europe use our business management study manual for exam success. Specifically for this paper, check the questions and the answers just below.

 

The Nature of the Examination

There are two Papers in the examination, (and these are Paper 1 and Paper 2). In detail, there are two sections in the Paper 1 (i.e. Section A and Section B).

Section A is an Objective Test and Section B is a Case Study. There are 50 questions in the Objective test, and the Case Study has some question under it for you to answer.

Finally, there are 9 questions in the Paper 2.  They are asked to tests the student’s general understanding of the various topics under business management.

 

The Summary of the Paper

The WASSCE Business management Paper for 2003 can summarized below:

  • 2003 WASSCE Business Management Paper One – Section A;
  • 2003 WASSCE Business Management Paper One – Section B;
  • 2003 WASSCE Business Management Paper Two

 

Business Management 2003 WASSCE-Past Questions and Answers Paper 1

 

Business Management 2003 WASSCE-Past Questions and Answers- Paper 1 – Section A

 

Let me show you how to find the answers to the Business Management Questions – Paper 1, Section A. To clarify that, when you read a question, just click on this symbol (˅) that follows the question.

After doing so, the answer will drop down for you. In fact, it is a very simple task. However, for the purposes of evaluating yourself, you may want to answer the before reviewing the suggested answer (or solution)

 

 

  1. The process of management is usually described as ‘achievement oriented”. This means that   [expand title=””]  B   is the answer -Business Management 2003 WASSCE   [/expand]
    1. management and achievement are the same
    2. management is aimed at achieving results
    3. achievement is involved in the process of management
    4. every manager is an achiever

 

  1. A business organization in which one person takes all decisions affecting the business is a   [expand title=””]  C   is the answer -Business Management 2003 WASSCE   [/expand]
    1. private business
    2. non-profit organization
    3. sole proprietorship
    4. partnership business

 

  1. Preference shareholders   [expand title=””]  A   is the answer -Business Management 2003 WASSCE   [/expand]
    1. are entitled to receive a fixed annual dividend
    2. are paid dividends after ordinary shareholders
    3. have no priority in liquidation
    4. have more votes than ordinary shareholders

 

  1. In which form of business is ownershiptransferable through the Stock Exchange?   [expand title=””]  C   is the answer -Business Management 2003 WASSCE   [/expand]
    1. Sole proprietorship
    2. Partnership
    3. Public company
    4. Co-operative society

 

  1. Providing quality goods and services at reasonable prices is a business’responsibility towards   [expand title=””]  D   is the answer -Business Management 2003 WASSCE   [/expand]
    1. investors
    2. Creditors
    3. government
    4. Customers

 

  1. The primary function of management which permeates all other managerial functions is   [expand title=””]  D   is the answer -Business Management 2003 WASSCE   [/expand]
    1. directing
    2. Controlling
    3. organizing
    4. planning

 

  1. The functions of the top management of a business organization include   [expand title=””]  C   is the answer -Business Management 2003 WASSCE   [/expand]
          1. establishing business objectives.
          2. implementing and achieving organizational objectives.
          3. managing operative employees.
          4. allocating the resources of the business.
    1. I and II only
    2. I and III only
    3. I and IV only
    4. III and IV only

 

  1. The managerial function which is concerned with making employees give of their best to the organization is   [expand title=””]  D  is the answer -Business Management 2003 WASSCE   [/expand]
    1. organizing
    2. Directing
    3. planning
    4. controlling

 

  1. Where a manager has alternative courses of action to choose from, he is saidto be faced with the problem of    [expand title=””]  B   is the answer -Business Management 2003 WASSCE   [/expand]
    1. effective organization
    2. Take corrective action
    3. motivating staff
    4. Set Achievable Objectives

 

  1. To ensure that the right decision has been made, it is always necessary to   [expand title=””]  B   is the answer -Business Management 2003 WASSCE   [/expand]
    1. choose from among alternatives
    2. take corrective action
    3. take corrective action
    4. set achievable objectives

 

  1. The first stage of the decision-making process usually is   [expand title=””]  D   is the answer -Business Management 2003 WASSCE   [/expand]
    1. analysis of the problem
    2. gathering of information
    3. choosing the best alternative
    4. identification of the problem

 

  1. The purpose of a follow-up system in filing is to bring to the notice of anexecutive any letter or document which   [expand title=””]  C   is the answer -Business Management 2003 WASSCE   [/expand]
    1. may need very little attention
    2. has been attended to already
    3. requires immediate attention
    4. may require attention at a future date

 

  1. Which of the following is not a reason for filing documents?   [expand title=””]  C   is the answer -Business Management 2003 WASSCE   [/expand]
    1. To keep the office tidy
    2. For quick reference
    3. To cut down cost
    4. For easy retrieval of documents

 

  1. The number and types of departments created in an organization is often determined by the   [expand title=””]  B   is the answer -Business Management 2003 WASSCE   [/expand]
    1. membership of the board of directors
    2. nature and size of the organization
    3. location of the business
    4. number of shareholders and other investors

 

  1. Which of the following sets of personal attributes should be possessed by an office worker?   [expand title=””]  C   is the answer -Business Management 2003 WASSCE   [/expand]
          1. Punctuality, tactfulness, forgetfulness
          2. Loyalty, punctuality, tactfulness
          3. Quick temper, punctuality, tactfulness
          4. Alertness, orderliness, enthusiasm for work
          5. Cheerfulness, initiative, friendliness
  1. I, II and IV only
  2. III, IV and V only
  3. II, IV and V only
  4. I, III and IV only

 

  1. Filing in order of dates is known as   [expand title=””]  A   is the answer -Business Management 2003 WASSCE   [/expand]
    1. chronological system of filing
    2. alphabetical system of filing
    3. geographical system of filing
    4. subject system of filing

 

  1. Which of the following is not a business attribute of an office worker?   [expand title=””]  A   is the answer -Business Management 2003 WASSCE   [/expand]
    1. Sound general education
    2. Punctuality
    3. Good human relations
    4. Good appearance

 

  1. An inter-office memorandum should have all the following features except   [expand title=””]  A   is the answer -Business Management 2003 WASSCE   [/expand]
    1. salutation
    2. Date
    3. brief subject heading
    4. the name of the recipient

 

  1. A staff in the personnel: department of an organization reports to the Personnel The Personnel Manager reports to the Board of Directors. The system which makes this possible is referred to as   [expand title=””]  D   is the answer -Business Management 2003 WASSCE   [/expand]
    1. span of control
    2. grapevine
    3. organization structure
    4. unity of command

 

  1. A manager is a leader because he   [expand title=””]  A   is the answer -Business Management 2003 WASSCE   [/expand]
    1. directs and influences the behaviour of his staff
    2. ensures his staff are paid
    3. can mete out punishment to wrongdoers
    4. is respected by the people under him

 

  1. By regularly assigning part of his own duties to his subordinates to perform, amanager is   [expand title=””]  B  is the answer -Business Management 2003 WASSCE   [/expand]
    1. trying to shirk his responsibility
    2. preparing his subordinates for managerial positions
    3. showing his subordinates that he has power
    4. is respected by the people under him

 

  1. Which of the following is not an example of face-to-face communication?   [expand title=””]  D   is the answer -Business Management 2003 WASSCE   [/expand]
    1. Interview
    2. Meeting
    3. Lecture
    4. Telephone

 

  1. A system in which authority for direction, control and management isconcentrated in the hands of a few persons or officers is known as   [expand title=””]  C   is the answer -Business Management 2003 WASSCE   [/expand]
    1. decentralized administration
    2. specialized administration
    3. centralized administration
    4. functional administration

 

  1. When the head of the marketing department of a university discusses coursesoffered with the head of the department of public administration   [expand title=””]  C   is the answer -Business Management 2003 WASSCE   [/expand]
    1. vertical communication occurs
    2. grapevine communication occurs
    3. horizontal communication takes place
    4. diagonal communication takes place

 

  1. Obeng tries to act as passive as possible at his workplace. Hissubordinates perceive him as inhibited and withdrawn. The method of cation which applies here is   [expand title=””]  B   is the answer -Business Management 2003 WASSCE   [/expand]
    1. verbal
    2. non-verbal
    3. written
    4. visual

 

  1. A contract which has not yet been fully performed by the parties is called an   [expand title=””]  A   is the answer -Business Management 2003 WASSCE   [/expand]
    1. executory contract
    2. illegal contract
    3. executed contract
    4. unenforceable contract

 

  1. Kofi promises to pay (P10,000 to anyone who finds his lost spectacles. In lawthis constitutes   [expand title=””]  D   is the answer -Business Management 2003 WASSCE   [/expand]
    1. a reward
    2. a promise
    3. an agreement
    4. an offer

 

  1. A valid consideration must meet all the following requirements except it   [expand title=””]  D   is the answer -Business Management 2003 WASSCE   [/expand]
    1. needs not be adequate
    2. must not be in the past
    3. must be something of value
    4. must move from the promissor

 

  1. In which of the following situations would an agent be personally liable?Where the agent   [expand title=””]  D   is the answer -Business Management 2003 WASSCE   [/expand]
    1. names the principal in a contract.
    2. discloses the existence of the principal.
    3. signs a negotiable instrument in his own name including hat he is signing as an agent.
    4. signs a deed in his own name without mentioning the principal.

 

  1. Which of the following is not true of an agency relationship?   [expand title=””]  C   is the answer -Business Management 2003 WASSCE   [/expand]
    1. an agent needs not have full contractual capacity to contract on behalf of his principal
    2. An agent must not allow his interest to conflict with that of his principal
    3. An agent must have full contractual capacity to be able to contract on behalf of his principal
    4. an agent must not disclose confidential information about the affairs of his principal

 

  1. If a bill of exchange is discounted at a bank for cash the payee receives   [expand title=””]  C   is the answer -Business Management 2003 WASSCE   [/expand]
    1. interest on it.
    2. the exact amount stated on it.
    3. an amount below the face value of the bill.
    4. an amount that is double the face value of the bill.

 

  1. Where a country’s exports exceed its imports the country is said to have   [expand title=””]  C   is the answer -Business Management 2003 WASSCE   [/expand]
    1. unfavourable balance of payments.
    2. unfavourable balance of trade.
    3. favourable balance of payments.
    4. favourable balance of trade

 

  1. For a commodity to qualify as money it must be   [expand title=””]  B   is the answer -Business Management 2003 WASSCE   [/expand]
    1. easy to come by
    2. Scarce
    3. in abundance
    4. perishable

 

  1. Cash ratio is a monetary tool often used by the central bank to control   [expand title=””]  C   is the answer -Business Management 2003 WASSCE   [/expand]
    1. the number of financial institutions in a country.
    2. a country’s foreign exchange earnings.
    3. the amount of currency in circulation.
    4. the number of customers a commercial bank should have.

 

  1. The system of taxation where the tax on incomes,as income increases is known as   [expand title=””]  D   is the answer -Business Management 2003 WASSCE   [/expand]
    1. upward tax
    2. regressive tax
    3. poll tax
    4. progressive tax

 

  1. Life insurance that covers an individual for a specified number of years but has no value at the end of this period is   [expand title=””]  A   is the answer -Business Management 2003 WASSCE   [/expand]
    1. term insurance
    2. whole life insurance
    3. self insurance
    4. fixed life insurance

 

  1. An individual cannot insure a property unless he or she   [expand title=””]  A   is the answer -Business Management 2003 WASSCE   [/expand]
    1. has insurable interest in the property
    2. it already insured with another company
    3. agrees to avoid risk
    4. can spread the risk

 

  1. Which of the following is part of the basic pieces of computer hardware?   [expand title=””]  D   is the answer -Business Management 2003 WASSCE   [/expand]
    1. Statistical function
    2. Graphics
    3. Special printing function
    4. Keyboard

 

  1. The text-editing function of a computer allows the user to   [expand title=””]  D   is the answer -Business Management 2003 WASSCE   [/expand]
    1. store addresses for mass mailing
    2. recover addresses for mass mailing
    3. automatically create form letters.
    4. delete characters or lines

 

  1. In computing, programs are part of   [expand title=””]  C   is the answer -Business Management 2003 WASSCE   [/expand]
    1. hardware
    2. memory
    3. software
    4. microprocessors

 

  1. Which of the following will not be contained in a job description?   [expand title=””]  B   is the answer -Business Management 2003 WASSCE   [/expand]
    1. The specific duties to be performed
    2. The salary scale for the job
    3. The immediate superior of the job holder
    4. The immediate subordinate of the job holder

 

  1. The process by which the best applicant for a job is selected is known as   [expand title=””]  B   is the answer -Business Management 2003 WASSCE   [/expand]
    1. shortlisting
    2. Appointment
    3. interview
    4. promotion

 

  1. The process whereby employees are made to perform different jobs at different times is known as job   [expand title=””]  D   is the answer -Business Management 2003 WASSCE   [/expand]
    1. enlargement
    2. Enrichment
    3. evaluation
    4. rotation

 

  1. The aim of recruitment is to   [expand title=””]  A   is the answer -Business Management 2003 WASSCE   [/expand]
    1. select applicants who best meet the needs of an organization
    2. obtain sufficient number of the right people at the right time to select from
    3. introduce new employees to the job environment
    4. match suitably qualified applicants to particular jobs

 

  1. Skimming pricing policy refers to charging different prices for different products on the market   [expand title=””]  B   is the answer -Business Management 2003 WASSCE   [/expand]
    1. high prices initially in order to recover cost quickly
    2. different prices for the same product on the market
    3. the same price as competitors.
    4. by giving them samples or

 

  1. The activities designed to stimulate consumers conducting contests are referred to as   [expand title=””]  D   is the answer -Business Management 2003 WASSCE   [/expand]
    1. consumer protection
    2. marketing concept
    3. marketing mix
    4. sales promotion

 

  1. Which of the following is not an element of the marketing mix concepts?   [expand title=””]  A   is the answer -Business Management 2003 WASSCE   [/expand]
    1. Planning
    2. Pricing
    3. Product
    4. Promotion

 

  1. A form of guarantee which is usually required by banks from customers as a security for loans is known as   [expand title=””]  D   is the answer -Business Management 2003 WASSCE   [/expand]
    1. financial security
    2. social security
    3. loan security
    4. collateral security

 

  1. Which of the following is not a principle of organizing?   [expand title=””]  A   is the answer -Business Management 2003 WASSCE   [/expand]
    1. Channel of communication
    2. Span of control
    3. Unity of command
    4. Delegation of authority

 

  1. Which of the following institutions provides the biggest volume of credit to business?   [expand title=””]  B   is the answer -Business Management 2003 WASSCE   [/expand]
    1. Building Societies
    2. Commercial Banks
    3. Development Bank
    4. Central Banks

 

I’m sure you are going to evaluate your performance with regards to the objective questions above. Let me emphasize again that the answers to the objective questions can be found by clicking on the symbol (˅) just after the question.

Now let’s proceed to the Paper 1 – Section B just below:

 

Business Management 2003 WASSCE-Past Questions and Answers- Paper 1 – Section B

 

This section of the examination is a case study questions. Please read the case carefully before attempting the questions.

As I have always said, it is better to first answer the questions on your own before referring to the answer from the drop-down symbol.

Let me show you how to find the answers to the Business Management Questions – Paper 1, Section B. When you read a question, just click on this symbol (˅) beside it, and the answer will drop down for you. It is a very simple task.

CASE STUDY

Read the following case and answer the questions that follow:   [expand title=””]

ASUO TIMBERS LIMITED

 Asuo Timbers Limited was incorporated in 1995 to produce good quality timber boards and other timber products for the local market, for export and to provide employment. The company imported logs from neighbouring countries and processed them into the required sizes to suit the market.

In the first three years of its operations, the company could not compete favourably with the other firms in the industry. It could hardly breakeven and therefore had a high labour turnover. One reason for this situation was that the company did not have an advertisement policy and the Managing Director, Mr. Cole, always emphasized that he relied on customers to advertise the products.

There were heated arguments at management meetings. Some personnel held on to the point that, since the company was located seven kilometers from the city center, there was the need for a vigorous advertisement drive. This would inform people of their high quality products and cheaper prices. Proponents of the advertisement drive were of the opinion that since the company imported logs it had an advantage over the other companies that imported finished timber products for sale.

The Board of Directors, after a careful study of management meeting minutes, decided to hold a workers’ durbar. At the durbar, the idea of advertisement, a comprehensive welfare package for workers and the use of the sawdust to make briquettes were agreed on. Within three years of implementing the new policies of the company, it became famous for its generous support of social events and good customer relations. It also became environmentally friendly because it did not burn the sawduSt to pollute the atmosphere as the other companies were doing.  [/expand]

 

1.   State the objectives of Asuo Timbers Limited.

Suggested Answer:   [expand title=””]

  • To produce good quality timber boards.
  • To produce other timber products for both the local and international (export) markets.
  • To provide employment.  [/expand]

 

2.   Explain two reasons that accounted for the low profits in the first threeyears of the company’s existence.

Suggested Answer:   [expand title=””]

  • Inability to withstand competition:- The company could not compete

    favourably with other firms in the industry and this made it difficult for the company to breakeven and the result was a high labour turnover.

  • Lack of a well designed advertisement policy:- The company did not have any advertising policy and relied on its customers to advertise the products. This means a greater proportion of its potential customers are not aware about the existence of the company and ifs products resulting n low patronage.  [/expand]

 

3.   Mention any eight items that could be included in the welfare package for the workers. for the workers.

Suggested Answer:   [expand title=””]

  • Medical services
  • Transportation services
  • Accommodation facilities
  • Recreational facilities, e.g. sports
  • Bonuses and awards
  • Sick leave
  • Annual leave with pay
  • Canteen services
  • Provision of security, protection and safety
  • Scholarship for further studies.  [/expand]

 

4.   State and explain the three factors that led to the improvement in the company’s finances.

Suggested Answer:   [expand title=””]

  • Introduction of advertisement:- The introduction of advertisement created awareness about the existence of the products. The effect being an increase in sales volume and thus profit marketing of the company.

  • Introduction of a comprehensive welfare package:- With the introduction of a comprehensive welfare package, workers morale was very high and this led to an increase in their output (productivity). Increase in productivity coupled with an increase in sales volume will lead to increased profit margin.

  • The sawdust which previously was burnt and which had the effect of polluting the environment was used to make briquettes and this also increased the profit margin of the company and an improvement in its finances.  [/expand]

 

Business Management 2003 WASSCE-Past Questions and Answers- Paper 2

This section of the examination is made up of essay-type questions. That normally require you to mostly, state and explain your various points. As I have always said, it is better to first answer the questions on your own before referring to the answer from the drop-down symbol.

Let me show you how to find the answers to the Business Management Questions – Paper 2. When you read a question, just click on this symbol (˅) beside it, and the answer will drop down for you. It is a very simple task.

 

1.   Despite the predominance of small businesses in the economy, they are confronted with a number of problems. Identify and explain five problems of small business in Ghana.

Suggested Answer:   [expand title=””]

  • Marketing problem:- Some small businesses have limited market for their products. This is partially due to improper branding and packaging as well as lack of advertisement of their products.

  • Inadequate financial capital:- There is inadequate financial resources for small-scale businesses. Many of the small-scale businesses do not also have collateral security to qualify them for loans from the banks.

  • Obsolete technology:- Many small-scale businesses rely on obsolete technology which retards productivity and sometimes lead to the production of shoddy goods and inferior services.

  • There is no advantages of large-scale productions:- The outlets of small-scale business are mostly small due to lack of capital to undertake large-scale production. They cannot therefore enjoy advantages of large-scale production which brings about low average cost of production. They will therefore enjoy low profit due to higher average cost of production.

  • Bad judgement can lead to collapse of business:- The success of the business depends mostly on how active the owner is. Sole responsibility of the business can lead to bad judgement/wrong decisions which can result in losses to the owner, customers, creditors and employees of the business.

  • Inefficient management:- Lack of managerial knowledge an expertise can lead to the collapse of the business.  [/expand]

2.   Explain the following filing systems:

  1. alphabetic
  2. subject
  3. geographic
  4. numeric

Suggested Answer:   [expand title=””]

  • Alphabetical:- This is the most common method of filing. In this method, each folder carries the name of the correspondence, and the folders are arranged in strict alphabetical order. Usually, the family name of an individual is placed first for filing purposes, e.g. Stephen Atanga becomes Atanga Stephen.

  • Subject:- In this method of filing, documents are filed according to topics or subjects rather than bynames or correspondence. Folders may be prepared for subjects like insurance, letters, invoices, transport etc. and filed in alphabetical order. This method is adopted where the subject matter is of great importance than the identity of the correspondence, e.g. professionals like architects. contractors, lawyers etc. may prefer to file their individual personal documents under projects or cases main headings.

  • Geographic:- In this method, documents are filed according to their geographical location and arranged alphabetically, e.g. country by country, region by region, district by district, town by town, village by village etc. This method of filing is suitable for companies which have a number of sales outlets spread al over the country.
  • Numeric:- In this system, each correspondence is given a numbered folder regardless of name and arranged in strict numerical order in the cabinets. The files are then placed in consecutive order. e.g. 21 comes before 22, 22 before 23 etc. A new correspondence will be given the next consecutive number. Guide cards may be needed to divide the folders into groups of 1-10, 11-20, 21-30 so that all names which start with A are filed in the folder 1-10, all names with B are filed in the folder 11-20 etc.  [/expand]

 

3.   Describe five functions performed by a commercial bank in Ghana.

Suggested Answer:   [expand title=””]

NB:- Refer to November 1993 Paper Two Question 9 for suggested solution.  [/expand]

 

4.   (a) Who is an agent?

Suggested Answer:   [expand title=””]

An agent is a person who is employed by a principal for the purpose of bringing him (the principal) into contractual relations with third parties. An agent does not make contracts on his own behalf but only serves as a middleman between the principal and third parties.  [/expand]

 

4.   (b) Explain four ways by which agency can be created.

Suggested Answer:   [expand title=””]

NB:- Refer to November 1994 Paper One Question 6 for suggested solution.  [/expand]

 

4.   (c) State and explain three duties of an agent.

Suggested Answer:   [expand title=””]

NB:- Refer to November 1993 Paper One Question 2(b) for suggested solution.  [/expand]

 

5.   (a) What is meant by the term insurable risk?

Suggested Answer:   [expand title=””]

Insurance risk refers to that risk which can easily be calculated by the insurance company. It is a risk on which the insurance company can decide a fair premium. This risk can be calculated because the insurance company has enough information about its previous (past) occurrences. It is therefore a type of risk which insurance companies are prepared to enter into an insurance contract to indemnify. Examples of such risks include accident, marine losses, fire, burglary etc.  [/expand]

 

5.   (b) Explain any four circumstances under which an insured may not be indemnified.

Suggested Answer:   [expand title=””]

  • When the insured has no insurable interest:- Insurable interest is the financial interest which a person has in the thing or property insured. Therefore where the property which has been damaged, stolen or destroyed is not for the insured, he may not be indemnified. One can therefore insure his own property and not those of others.

  • When there is no utmost good faith:- Where the insured fails to disclose all relevant information required in the contract, he may not be indemnified. According to the principle of utmost good faith, the insured in an insurance contract is required to answer all questions put to him by the insurer in truthfulness without hiding any material fact.

  • When there is no proximate cause:- The insured will not be indemnified by the insurer, if the cause of loss or damage of the property is not what is stated in the contract, e.g., if somebody insures himself against accident and dies from an illness he/his relatives may not be indemnified.

  • When the insured insures against a property with two or more insurance companies he may not be indemnified if the property is damaged/lost.  [/expand]

 

6.   (a) What is balance of trade?

Suggested Answer:   [expand title=””]

Balance of trade is the relationship that exists between exports of visible goods and imports of visible goods within a given period of time mostly one year. It is also known as visible balance. For example, Ghana’s balance of trade for a -given period is the relationship between the value of its visible imports like cars, fridges, videos etc. and the value of its visible exports like cocoa, timber, gold etc. Balance of trade may be favourable or unfavourable. It is said to be favourable when the total value of visible exports is greater than the total value of visible imports within a given period of time. The reverse is a situation where the balance of trade is unfavourable.  [/expand]

 

6.   (b) Explain any four benefits a country derives from engaging in international trade.

Suggested Answer:   [expand title=””]

NB:- Refer to July 2002 Paper 2 Question 6(a) for suggested solution.  [/expand]

 

7.   (a) Distinguish between job description and job specification

Suggested Answer:   [expand title=””]

Job description is a broad statement describing thd purpose, scope, duties and responsibilities of a particular job. It states the title and location of the job, grade/salary level of the job, limits of authority and accountability. It typically portrays job content.

Job specification on the other hand, describes the various skills, qualification and experience that job holders must posses to enable them perform their work adequately. It is the human characteristics required to do a particular job. These human characteristics include: age, educational background, training received, interests, communication skills, human relations skills, judgement and initiative. It therefore describes the physical qualities and characteristics needed to perform the job.  [/expand]

7.   (b) Mention and explain four sources of recruitment.

Suggested Answer:   [expand title=””]

  • Educational Institution:- Organizations and companies sometimes recruit fresh graduates from schools, colleges, polytechnics and the universities.

  • Private Employment Agencies:- Employers who cannot go through the process of recruitment engage consulting firms to do the recruitment for them.

  • Labour Department:- This is a public agency found in almost all regional capitals where employees in search of employment and employers searching for employees go to register. An arrangement is then made to link the employer with the prospective employee.

  • Advertisement:- This is the most common and popular source of external recruitment where companies announce their employment opportunities through the newspapers, magazines, journals, radio and television.

  • Unsolicited Applicants:- People who are seeking for jobs sometimes apply to

    organizations without being aware of vacancies in those organizations. If there are vacancies, the applicant may be asked to go through the screening process. Where vacancies are not immediately available, his name will be placed on the waiting list.

  • Employees Referrals:- Companies sometimes announce job vacancies to their staff and ask them to recommend friends, relatives and neighbours who might be in need of employment and possess the required qualification and skill.  [/expand]

 

8.   (a) What is personal selling?

Suggested Answer:   [expand title=””]

 

Personal selling is a broad term which is used to describe activities involving oral presentation in the form of conversation with one or more prospective buyers for the purpose of making sales or it is a situation where the seller and buyer have face-to-face interaction about a company’s products/services. It therefore consists of a company’s salesmen who sell directly to consumers.  [/expand]

8.   (b) Explain six ways in which personal selling is important to a business firm.

Suggested Answer:   [expand title=””]

  • Personal selling helps the company to get its products to the consumer directly.
  • Salesmen meet the consumer sometime with the items to explain the unique qualities of the products. Customers questions are answered and this helps to clear their doubts.
  • Personal selling also affords the firm to get a prompt feedback data through the salesmen.
  • It also serves as a forum for negotiating product prices and terms.
  • It serves as a means of gathering opinions or reaction of consumers for market research purposes.
  • Since salesmen go to only potential buyers of the products, there is minimum degree of wasted effort.
  • The salesmen can tailor their sales presentation to suit the requirements of  [/expand]

 

9.   (a) What is indirect tax?

Suggested Answer:   [expand title=””]

This is a tax levied on the expenditure of goods and services and are therefore paid indirectly to the tax authorities. It is therefore a tax which is paid indirectly by consumers who purchase goods and services.  [/expand]

 

9.   (b) Mention five examples of indirect tax.

Suggested Answer:   [expand title=””]

  • Import duties
  • Excise duties
  • Export duties
  • Sales tax
  • Petroleum tax
  • Value-added Tax (VAT)  [/expand]

9.   (c) State and explain four disadvantages of indirect taxes.

Suggested Answer:   [expand title=””]

  • Indirect taxes can be avoided by abstaining from the, purchase of taxed
  • The imposition of export duties discriminate against certain sections of the.
  • It is the producers of export commodities that bear the brunt of export taxes.
  • Indirect taxes lead to rising prices and cause inflationary situation to develop.
  • Indirect taxes tend to be unfair because they are often regressive. That is, the
    incidence of the tax falls more heavily on the poor than on the rich.  [/expand]

 

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