NABTEB 2026 Commerce Answers (Type D)

NABTEB 2026 COMMERCE ANSWERS (TYPE D)

OBJECTIVE (OBJ)

01-10: CCDBBBCCAD

11-20: CCDCCDBCDA

21-30: DDBCCCDBDC

31-40: CBDABCADAB

41-50: BDCCBBACDC

INSTRUCTION: ANSWER FIVE(5) QUESTIONS ONLY

Question 1

(1a)
Communication is the process of sending, receiving, and understanding information, ideas, messages, or feelings between two or more people in order to achieve mutual understanding.

(1b)
(i) Cost: The communication system chosen should be affordable and economical to operate and maintain.
(ii) Speed: The urgency of the message determines the system to be used. Urgent information requires a faster means of communication.
(iii) Nature of the message: Confidential, lengthy, or technical messages may require specific communication methods to ensure accuracy and security.
(iv) Distance: The geographical location of the sender and receiver influences the choice of communication system.
(v) Reliability: The communication system should be dependable and capable of delivering messages accurately and on time.

(1c)
(i) Upward communication.
(ii) Downward communication.

Question 2

(2a)
Marketing concept is the business philosophy which states that the satisfaction of customers' needs and wants should be the main focus of all business activities in order to achieve organizational objectives and make profit.

(2b)
(i) Creates employment opportunities: Marketing provides jobs for people such as sales representatives, distributors, advertisers, transporters, and market researchers, thereby reducing unemployment.
(ii) Increases government revenue: Through the payment of taxes, duties, and levies by marketing organizations and businesses, the government earns revenue for national development.
(iii) Promotes production: Marketing helps producers to identify consumers' needs and encourages increased production of goods and services to satisfy those needs.
(iv) Facilitates the distribution of goods and services: Marketing ensures that goods move from producers to consumers through various channels of distribution, making products readily available.
(v) Improves the standard of living: By making a variety of quality goods and services available to consumers, marketing helps to satisfy human wants and improve living conditions.
(vi) Promotes economic growth and development: Marketing stimulates trade, investment, and business activities, thereby contributing to the growth of the Nigerian economy and increasing national income.

Question 3

(3a)
Commercialization is the process by which government-owned enterprises are made to operate like private businesses with the aim of generating profit, improving efficiency, and reducing dependence on government funding.

(3b)
(i) Improves efficiency: Commercialized enterprises are managed more efficiently because they operate on profit-making principles.
(ii) Reduces government expenditure: The government spends less money on maintaining public enterprises since they generate their own revenue.
(iii) Increases revenue generation: The enterprises make profits which can contribute to government revenue through taxes and dividends.
(iv) Promotes better service delivery: Commercialized organizations tend to provide better and faster services to customers in order to remain competitive.

(3c)
(i) Increase in prices: Goods and services may become more expensive because the enterprises focus on making profits.
(ii) Possibility of job losses: Workers may be retrenched as organizations attempt to reduce costs and maximize profits.

Question 4

(4a)
Business capital refers to the money, assets, and other financial resources used to establish, operate, and expand a business enterprise. It provides the funds needed for purchasing assets, paying expenses, and carrying out business activities.

(4b)
(i) Fixed Capital: This is the capital invested in permanent assets of the business such as land, buildings, machinery, furniture, and equipment. It is used for a long period and is not meant for resale.
(ii) Working Capital: This refers to the capital used for the day-to-day running of the business. It is used to purchase raw materials, pay wages, settle bills, and meet other operating expenses.
(iii) Owned Capital: This is the money contributed by the owner or shareholders of the business. It belongs to the owners and does not have to be repaid.
(iv) Borrowed Capital: This is the capital obtained from external sources such as banks, financial institutions, or through loans and debentures. It must be repaid after a specified period, usually with interest.
(v) Long-term Capital: This is capital that remains in the business for a long period, usually more than one year. It is used for acquiring fixed assets and financing expansion projects.
(vi) Short-term Capital: This refers to funds obtained for a short period, usually less than one year, to meet immediate business needs such as payment of salaries, purchase of stock, and other current expenses.

Question 5

(5a)
Personal selling is a promotional activity in which a salesperson communicates directly with a prospective customer in order to persuade the customer to buy a product or service.

(5b)
(i) Creating awareness of products: Personal selling helps to introduce and explain new products and services to potential customers.
(ii) Persuading customers to buy: Salespersons convince customers of the benefits of products and encourage them to make purchases.
(iii) Providing product information: It enables sales representatives to explain the features, uses, and advantages of products to customers.
(iv) Obtaining customer feedback: Through direct contact, businesses receive complaints, suggestions, and opinions from customers, which help improve products and services.
(v) Building customer relationships: Personal selling helps to establish and maintain good relationships between the business and its customers, leading to customer loyalty.
(vi) Increasing sales and profits: By influencing buying decisions and encouraging repeat purchases, personal selling helps businesses increase their sales volume and profitability.

Question 6

(6a)
(i) Gross profit is the excess of sales over the cost of goods sold, while net profit is the profit remaining after all business expenses have been deducted from gross profit.
(ii) Gross profit is calculated before deducting operating expenses, while net profit is calculated after deducting all operating and administrative expenses.
(iii) Gross profit shows the profitability of trading activities only, while net profit shows the overall profitability of the entire business.

(6b)
(i) Turnover: Turnover refers to the total value of goods sold or the total sales made by a business during a given accounting period. It indicates the volume of business activities carried out.
(ii) Rate of Turnover: Rate of turnover is the number of times the average stock is sold and replaced during a particular period. It measures how quickly stock moves through the business.
(iii) Average stock: This is the average value of opening stock and closing stock during an accounting period. It is calculated as: Average stock = Opening stock + Closing stock ÷ 2
(iv) Cost of Goods Sold: Cost of goods sold refers to the direct cost incurred in producing or purchasing the goods that have been sold during a trading period.
(v) Business Capital: Business capital is the money and other resources invested in a business for the purpose of starting, operating, and expanding the enterprise.
(vi) Purchases: Purchases refer to goods bought by a business for resale to customers. They may be made on cash or credit and form part of the cost of goods available for sale.

Question 7

(7a)
Consumer protection is the set of laws, policies, and measures established by the government to safeguard consumers from exploitation, unsafe products, unfair business practices, and the violation of their rights.

(7b)
(i) To protect consumers from exploitation: The Act prevents producers and sellers from taking advantage of consumers through unfair practices.
(ii) To ensure the safety of products: It helps to protect consumers from dangerous, defective, or substandard goods and services.
(iii) To prevent false advertising: The Act discourages misleading advertisements and ensures that consumers receive accurate information about products.
(iv) To guarantee consumers’ rights: It safeguards the rights of consumers to choose, to be informed, and to seek redress when necessary.
(v) To promote fair business practices: The Act encourages honesty, fairness, and ethical conduct among producers and traders.
(vi) To provide means of redress: It gives consumers the opportunity to lodge complaints and obtain compensation when they suffer losses due to defective products or poor services.

Question 8

(8a)
Public relations is the deliberate and planned effort by an organization to establish and maintain mutual understanding, goodwill, and a favourable image between the organization and the public.

(8b)
(i) Promotes goodwill: Public relations helps to create and maintain a good image of the organization among the public.
(ii) Improves customer relations: It strengthens the relationship between the organization and its customers, thereby increasing customer loyalty.
(iii) Enhances the reputation of the organization: Public relations helps to build public confidence and trust in the organization.
(iv) Provides information to the public: It keeps the public informed about the activities, products, and policies of the organization.

(8c)
(i) Radio
(ii) Television
(iii) Newspapers
(iv) Magazines

Question 9

(9a)
Privatization is the transfer of ownership and control of government-owned enterprises or public corporations to private individuals or private organizations.

(9b)
(i) Improves efficiency: Private owners usually manage enterprises more effectively, leading to increased productivity and better performance.
(ii) Reduces government financial burden: The government is relieved of the responsibility of funding and maintaining the enterprise.
(iii) Promotes competition: Privatization encourages competition among firms, which can lead to better quality goods and services.
(iv) Generates government revenue: The sale of public enterprises provides funds that the government can use for development projects and other public needs.

(9c)
(i) Job losses: New private owners may reduce the workforce to cut costs and increase profits, leading to unemployment.
(ii) Higher prices of goods and services: Private owners may increase prices in order to maximize profits, making essential services less affordable to the public.

Question 10

(10a)
(i) ECOWAS
(ii) African Union (AU)
(iii) European Union (EU)

(10b)
(i) Formulation of trade and industrial policies: The ministry develops and implements policies that promote trade, commerce, and industrial development in the country.
(ii) Promotion of industrial growth: It encourages the establishment and expansion of industries through incentives, technical support, and favourable policies.
(iii) Regulation of trade activities: The ministry supervises and regulates commercial activities to ensure that businesses operate according to government regulations.
(iv) Promotion of exports and imports: It facilitates international trade by promoting exports and regulating imports in line with national economic objectives.
(v) Issuance of business licences and permits: The ministry grants licences, permits, and approvals required for certain business and industrial operations.
(vi) Protection of consumers and industries: It helps protect consumers against unfair trade practices and safeguards local industries through appropriate regulations and standards.