NECO Questions and Answers for Commerce; (OBJ, Theory) 2023/2024

The NECO Questions and Answers for Commerce for 2023/2024 is now available for all commerce students. has the best interests of students in mind and has conducted extensive study to obtain the correct and genuine questions and answers for the NECO Commerce 2023/2024.

The National Examinations Council (NECO)  is an examination body in Nigeria that conducts the Senior Secondary Certificate Examination and the General Certificate in Education in June/July and December/January respectively.

NECO Commerce clarifications and queries The validity of these NECO 2023 Commerce solutions to questions has been checked and confirmed to be sure. Objectives and an essay will be provided.

NECO Possible Questions and Answer For Commerce 2023/2024

During the NECO Commerce exam today, September 9, the 2023. NECO Commerce solutions (expo) will be provided here. To be informed when the answers are uploaded, keep checking and refreshing this page. Remember to refresh this page to view the solutions.

OBJ Answers:







Essay Answers:

No (1)


(i) Informative role: Advertising serves as a means to disseminate information to the target audience about new products, features, services, or changes in existing offerings. It educates consumers about various options available to them, such as different brands, features, pricing, and other information.

(ii) Persuasive role: Advertising is used to persuade potential customers to purchase or use a particular product or service. It can create awareness about the benefits of a product and convince them to make a purchase by highlighting the advantages over competitors.

(iii) Comparative role: Advertising can be used to compare the features of different products to enable customers to make an informed decision. This helps in better understanding of a product and its features and allows customers to choose the best suited one for their needs.

(iv) Sales Promotion role: Advertising can also be used for promotion of sales. It can be used to highlight offers and discounts related to products and services and create a sense of urgency among customers to make a purchase.

(v) Competitive role: Advertising can also be used to gain competitive advantage over other similar products or services. It can be used to differentiate a product from its competitors in terms of features, quality, price, etc.

(vi) Reminder role: Advertising can also be used to remind customers of existing products and services and encourage repeat purchases.

(viii) Image Creating role: Advertising can also be used to create an image of a product or company in the minds of the consumers. It can be used to emphasize the unique features or qualities of a product or service and create a lasting impression on customers.


(i) An employer is a person or an organization that hires employees to work for them, while an employee is a person who works for an employer in exchange for compensation.

(ii) An employer is responsible for managing and directing the work of employees, while an employee is responsible for carrying out the tasks assigned to them by their employer.

No (2b)

(i) Job Performance

(ii) Adherence to Policies and Procedures

(iii) Attendance and Punctuality

(iv) Professional Conduct

(i) Job Performance: Employees have a duty to perform their job tasks to the best of their abilities. This includes meeting performance standards, fulfilling job responsibilities, and achieving the objectives set by their employer.

(ii) Adherence to Policies and Procedures: Employees are expected to follow the rules, policies, and procedures established by their employer. This may involve complying with workplace regulations, safety guidelines, and company protocols.

(iii) Attendance and Punctuality: Employees have a responsibility to maintain regular attendance and be punctual for their scheduled work hours. Consistent attendance is essential for the smooth functioning of the business and meeting productivity targets.

(iv) Professional Conduct: Employees are expected to conduct themselves in a professional manner while representing the company. This includes maintaining a positive attitude, treating colleagues and customers with respect, and avoiding behaviors that could harm the company’s reputation.


Insurance is a contract between an individual or entity (the insured) and an insurance company (the insurer) where the insured pays regular premiums in exchange for financial protection against potential losses or damages. The insurer agrees to compensate the insured for specific losses, damages, or liabilities as outlined in the policy.



(i) Utmost Good Faith: Both parties to an insurance contract must act in utmost good faith towards each other or the contract may be invalidated.

(ii) Insurable Interest: The insured must demonstrate that a potential loss or damage would have financial consequences for them.

(iii) Proximate Cause: A loss or damage must be caused by the peril (risk) specified in the insurance policy in order for compensation to be paid out.

(iv) Subrogation: The insurer’s right to pursue a claim against a third party on behalf of the insured.

(v) Indemnity: The insured cannot receive more money from the insurer than the actual amount of the loss or damage.

(vi) Contribution: All those who share liability for the loss or damage must contribute their fair share to the settlement.


(i) Niche markets: Small businesses can thrive by catering to a specific niche market that is not being served by larger businesses.

(ii) Personalized service: Small businesses can provide personalized service to their customers, which larger businesses often struggle to do.

(iii) Flexibility: Small businesses can be more flexible and responsive to changes in the market, allowing them to adapt quickly to new trends and customer needs.

(iv) Lower overhead costs: Small businesses often have lower overhead costs than larger businesses, which can help them to be more competitive in terms of pricing.


(i) Small scale retail outlets are typically smaller in size and have a limited range of products, while large scale retail outlets are larger in size and offer a wider range of products.

(ii) Small scale retail outlets are often owned and operated by individuals or families, while large scale retail outlets are typically owned by corporations.


=Examples of Small scale retail outlets=

(i) Convenience stores

(ii) Boutiques

(iii) Food trucks

(iv) Online stores

=Examples of large scale retail outlets=

(i) Supermarkets

(ii) Department stores

(iii) Hypermarkets

(iv) Shopping malls.

No (5a)

A second-tier securities market is a market that provides a platform for trading securities that are not listed on the primary market. It is also known as the second market or the aftermarket.


(i) Company Size: A company must meet the minimum size requirement to be admitted into the second-tier securities market. This is to ensure that the company has a certain level of liquidity and is financially stable.

(ii) Financial Reporting: A company must have a good track record of financial reporting. The company must provide accurate and timely financial statements to the market to help investors make informed decisions.

(iii) Corporate Governance: A company must have a good corporate governance structure. This includes having an independent board of directors, having transparent and fair policies, and having effective risk management procedures.

(iv) Regulatory Compliance: A company must comply with all the regulations set by the regulatory bodies governing the second-tier securities market. This includes disclosing all relevant information to the market and ensuring that all transactions are conducted in a fair and transparent manner.


(i) Direct Listing

(ii) Transfer from the Primary Market

(iii) Initial Public

(iv) Private Placement.


An economic grouping refers to a group of countries that come together to form a common economic policy and work together to promote economic growth, development, and trade.


(i) To promote economic cooperation and integration among member states.

(ii) To establish a common market and promote the free movement of goods, persons, and services among member states.

(iii) To promote industrial development and diversification of member states’ economies.

(iv) To establish a monetary union and a common currency for member states.

(v) To promote human development and social welfare among member states.

(vi) To promote regional peace and security and resolve conflicts among member states.

(vii) To promote cooperation in the areas of science, technology, and research among member states.

(viii) To promote environmental protection and sustainable development among member states.



(i) Commercial Banks: These institutions play a significant role in the money market by borrowing and lending money to individuals, businesses, and other institutions. They also provide various financial services such as checking accounts, savings accounts, and loans.

(ii) Central Banks: These institutions are responsible for controlling and regulating the money supply and setting interest rates in their respective countries. They also guide the economic and fiscal policies of their country.

(iii) Mutual Funds: These institutions provide investors with the option to diversify their investments by investing in a variety of different securities, such as stocks, bonds, and derivatives.

(iv) Investment Banks: These institutions help companies access capital markets by issuing new securities and providing a range of other services such as underwriting, merger advice, and asset management.

(v) Hedge Funds: These institutions use a variety of complex investment strategies to generate returns for investors.

(vi) Insurance Companies: These institutions manage the risks of individuals and businesses by providing insurance products such as life insurance, health insurance, and property insurance.



(i) Soft commodities are often perishable and are subject to seasonal demand swings, while hard commodities are generally non-perishable and less sensitive to seasonal demand variation.

(ii) Soft commodities are usually consumed before reaching the market, while hard commodities are consumed further down the production chain.

(iii) Soft commodities are mostly traded on futures exchanges, while hard commodities are mainly traded in over-the-counter (OTC) markets.

(iv) Soft commodities tend to have more volatile prices than hard commodities, since they are affected by factors such as weather patterns and crop yields.

(v) Soft commodities typically require more intensive management by producers, while hard commodities require less intensive management.

(vi) Soft commodities are more easily transported than hard commodities, which tend to be bulky and heavy.


Customs and Excise Authority is a government agency responsible for overseeing and regulating the import, export, and movement of goods, as well as the collection of excise duties and taxes. This combined authority often exists in some countries where the functions of customs and excise are closely related and integrated. Here are the key functions of Customs and Excise Authority


Customs and Excise Authority is an agency responsible for the collection of taxes on imported and exported goods. This authority is responsible for ensuring compliance with government regulations related to the import and export of goods. They also enforce laws related to the movement of goods across international borders.


( PICK ANY 4 )

(i) Collecting Taxes: The authority collects taxes on imported goods and ensures that the correct taxes are paid by importers. They also collect taxes on exported goods.

(ii) Enforcing Regulations: The authority enforces regulations related to imports and exports. This includes ensuring that goods meet the required standards and are safe for use.

(iii) Preventing Smuggling: Customs and Excise Authority works to prevent smuggling by inspecting goods at ports of entry and exit. They also work to identify and apprehend smugglers.

(iv) Protecting the Economy: Customs and Excise Authority helps protect the economy by preventing the importation of goods that could harm local industries. They also help to prevent the export of goods that are restricted or banned.

(v) Facilitating Trade: Customs and Excise Authority works to facilitate trade by ensuring that goods move smoothly across borders. They also help to reduce delays and facilitate the movement of goods.


(i). Bond:

A bond is a fixed-income investment instrument where an investor lends money to a borrower (usually a government or corporation) for a specific period at a predetermined interest rate. Bonds are considered less risky than stocks and offer a steady stream of income through interest payments. At the end of the bond’s term, the borrower repays the initial amount borrowed, known as the principal.

(ii). Carrier:

In the context of transportation or telecommunications, a carrier refers to a company or entity that provides services to transport goods, passengers, or information. In transportation, carriers can be airlines, shipping companies, or trucking firms. In telecommunications, carriers are companies that offer communication services like mobile or internet services.

(iii). Communication:

Communication is the process of exchanging information, ideas, thoughts, or feelings between individuals or groups. It can occur through various mediums, including verbal (spoken), written, visual, or non-verbal (gestures, body language) means. Effective communication is vital for building relationships, understanding one another, and achieving common goals.

(iv). Debenture:

A debenture is a type of long-term debt instrument issued by corporations or governments to raise capital. Unlike bonds, debentures are not secured by specific assets but are backed by the creditworthiness of the issuer. Debenture holders are considered creditors and are entitled to receive fixed interest payments at regular intervals and repayment of the principal amount at the maturity date.

(v). Transportation:

Transportation refers to the movement of people, goods, or services from one place to another. It plays a crucial role in the economy and society, facilitating trade, commerce, and travel. Various modes of transportation include road (cars, buses, trucks), rail (trains), air (airplanes), water (ships, boats), and pipelines. Efficient transportation systems are essential for economic development and connecting regions and communities.

(v) Indemnity: The insured cannot receive more money from the insurer than the actual amount of the loss or damage.

(vi) Contribution: All those who share liability for the loss or damage must contribute their fair share to the settlement.


The questions below are not exactly 2023 NECO Commerce questions and answers but likely NECO Commerce repeated questions and answers.

These questions are strictly for practice. The 2023 NECO Commerce expo will be posted on this page on the day of the NECO Commerce examination. Keep checking and reloading this page for the answers.

NECO Commerce Practice Questions and Answers

1. Income distribution, nature of natural resources, investment etc. forms part of —–business environment.

A. cultural

B. economic

C. political

D. social

E. technological

2. The fee for sending a telegram depends on the

A. number of lines contained by the message

B. number of words contained in the message

C. the security of the message

D. time it would take the message to reach its destination

E. urgency of the message

3. The combination of product, price,

A. consumer orientation

B. marketing concept

C. marketing mix

D. marker research

E. product mix

4. Use the following information to answer question

Kolawole’s Opening Stock was N10, 000. His purchases was N280,000 Goods returned outward was N3,000, and the Closing Stock was N8,000
Kolawole’s average stock is?

A. N9,000.00

B. N10, 000.00

C. N279,000.00

D. N280,000.00

E. N290,000.00

5. When the supplier changes a retailer for not returning empty packages, the supplier sends him a/an

A. advice note

B. consignment note

C. credit note

D. debit note

E. statement

6. Which of the following is NOT a function of Commerce?

A. Assisting Companies in raise capital

B. Assisting in transporting men and materials to production points

C. Extracting goods for further production and processing

D. Storing goods until they are needed

E. Offering employment opportunities to a large number of people

7. In which order are the following documents used?

I. Enquiry
II. Delivery note
III. Order
IV. Invoice
V. Quotation

A. I, II, III, IV and V

B. I, V, III, IV and II

C. II, I, IV, III and V

D. III, II, V, I and IV

E. V, IV, I, III and II

8. The price of an item is N 300 with a trade discount of 20%, What is the selling price?

A. N180

B. N240

C. N300

D. N360

E. no option

9. A hire purchase transaction becomes a sale when the hirer

A. pays full cost of the goods

B. agrees with the hire purchase terms

C. takes possession of the goods

D. pays part of the instalments

10. An electronic system of communication which serves as the international information bank is called

A. an e-mail

B. a satellite

C. a telex

D. the Internet

11. Shares, stocks, government bonds trade in the stock exchange marks: are known as

A. debentures

B. gut-edged stocks

C. merchandises

D. securities

E. treasure bills

12. The practice of selling some goods below market price to attract more customers is known as

A. hoarding

B. loss leader

C. market sharing

D. profiteering

E. speculating

13. Shares that are fully paid can be converted into bulks known as

A. bonds

B. capital reserves

C. debentures

D. guilt-edged securities

E. stocks

14. Telecommunication services are provided by

A. Bureau De Change

B. Courier Services

C. Date Post



15. Use the following information to answer question

Kolawole’s Opening Stock was N10,000. His purchases was N280,000 Goods returned outward was N3,000, and the Closing Stock was N8,000
Cost of goods sold is

A. N180,000.00

B. N227,000.00

C. N279,000.00

D. N290,000.00

E. N301,000.00

16. The process of passing information from one person to another in an organization is known as

A. communication

B. co-ordination

C. delegation

D. direction

E. Motivation

17. A financial document stating the reasons for making a payment and details of the payment is

A. bank draft

B. cash book

C. cheque

D. payslip

E. voucher

18. Another name for a foreign order is

A. catalogue

B. export

C. import

D. indent

E. quotation

19. Public debt management is one of the functions of a ______________ bank

A. central

B. commercial

C. development

D. industrial

E. merchant

20. Which of the following regards the consumer as king?

A. consumer behavior

B. marketing concept

C. market mix

D. pricing policy

E. product mix

21. The most suitable mode of transporting very bulky goods from Lagos to Kaduna is the

A. aeroplane

B. caravan

C. lorry

D. ship

E. train

22. Adeleke places his vehicle for sale at N150,000,00 Ibrahim had agreed to pay the amount. In this Trans: Adeleke is the

A. agent

B. auctioneer

C. broker

D. offeree

E. offeror

23. The following are methods of quoting prices EXCEPT

A. A.C.I.F

B. F.A.S

C. F.O.B

D. L.O.C.O

E. E.O.E

24. The amount receivable by shareholders after the declaration of profit is called

A. bonus

B. commission

C. dividend

D. interest

E. premium

25. Which of the following is an invisible item of trade?

A. Banking Service

B. Petroleum Product

C. Processed Rice

D. Processed Milk

E. Processed Yam Flour.

NECO Commerce Questions and Answers 2023 Loading…


Tips For Passing The NECO Commerce Exam

The Senior Secondary School Certificate Examination is overseen by the National Examination Council (NECO).

The Certificate that is being presented here is a crucial document that recognizes or attests to your successful completion of secondary school.

It is a significant document that qualifies you for admission to any postsecondary institution and has a significant impact on admission today.

Because of this, every student preparing for the NECO 2023 exam is prepared

1. Be Determined to Pass

The NECO 2023 Commerce is mainly for those who have made up their mind to pass it with a good grade.

Any candidate who, at this point in time, has not made up his or her mind to make the excellent grade in the forthcoming NECO 2023 Commerce is actually not ready to pass.

Your mind should be ready for the task ahead, do not follow lazy friends who believe in a miracle on the day of the exams, stay positive and study your books.

 2. Utilize the NECO 2023 Syllabus.

Utilizing the NECO 2023 curriculum is crucial because it will direct you on the key subjects to cover. Without a syllabus, you will be forced to concentrate on subjects that will not be tested in the tests.

Additionally, the NECO syllabus contains the majority of the Commerce topics you have not covered in class.

3.Pray to your Creator, God.

Many believe they can handle it on their own without the help of God. Your creator is the All-Powerful God; turn to Him for support, and He will never let you down. Your success is based on your level of confidence in God. Call on God; He is waiting for your request.

4.Observe the exam’s guidelines.

Any student who is not prepared to follow the examination procedures is setting themselves up to fail. The vast majority of NECO candidates who had their results stayed were those who weren’t prepared to adhere to the exam’s rules.

5.Don’t Waste Your Time.

NECO Commerce is known for taking a lot of time, so use the limited time you have wisely. To make the most of your time, take into account the number of questions you must answer and the allotted time.

6.Arrive at the testing location on time.

It’s important to be on time for the tests. Arrive early at the exam site to give your brain time to prepare. Rushing to the test room will make you jittery and more prone to making blunders.

Prior to beginning your answers, give the exam question paper some thought. Answers to NECO Commerce quiz questions

If you have any questions about the 2023 NECO Commerce questions and answer, please let us know in the comment box.


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