WAEC Commerce Past Questions & Answers - Page 58

286.

The tax paid on goods produced within a country is known as

A.

import duty

B.

excise duty

C.

ad valorem duty

D.

customs draw back

Correct answer is B

Excise duties are taxes paid for goods produced in the domestic economy. 

287.

A document through which the public is invited to subscribe to the shares of a company is a

A.

Memorandum of Association

B.

Article of Association

C.

Prospectus

D.

Debenture

Correct answer is C

A prospectus is a document containing an invitation to the public to subscribe or buy a company's shares

288.

Which of the following requires a certificate of trading to start business

A.

Public corporation

B.

Public limited company

C.

Cooperative society

D.

Private limited company

Correct answer is B

A trading certificate is a certificate issued by the registrar of companies, (in this case, the corporate affairs commission) to a public company without which the company may not do business.

These public companies also need this certificate to source funds from external sources.

289.

Establishing and maintaining mutual understanding between an organization and its customers is known as

A.

marketing concept

B.

advertising

C.

public relations

D.

sales promotion

Correct answer is C

Public relations has to do with how a company is perceived by the public or its customer.

 It involves building mutually beneficial relationships between organizations and the public.

290.

If a country devalues its currency, there would be

A.

reduction in imports

B.

reduction in exports

C.

increase in production locally

D.

increase in local standard living

Correct answer is A

Devaluation of a country's currency reduces the cost of exporting goods and services to other countries, making the exporting country to be more competitive in the global market, which, in turn, increases the cost of importing goods into the country.

With a high cost of importation, imports will be reduced as people will be uninterested in importing goods at a high cost.