Comments

Candidates who attempted this question performed well in 2a. However, for 2b they merely explained the aids to trade without relating their explanation to how it contributes to the growth of commerce.
The expected responses to the question include:

2(a) Types of business units
i. Sole proprietorship ii. Partnership iii. Cooperative society iv. Joint stock company (Public/Private company) v. Private company vi. Public corporation/ enterprise

2(b) How aids to trade contribute to the growth of commerce i. Finance and banking
Banks provide capital to traders through loans and overdraft to run a business by acquiring the necessary premises, equipment and goods.

ii. Transportation
It facilitates the movement of goods, materials and services from place of production to place of need, thus enhancing mass production. It also helps in the mobility of labour.

iii. Insurance
It makes provision for the protection of persons or objects against risks such as loss of goods in transit, fire, flood and other hazards. Insurance enables traders to obtain compensation in the event of any losses, thereby encouraging people to invest in areas where they would not have invested.

iv. Warehousing
It enables manufacturers to continue production in anticipation of demand through provision of storage and security for the goods. Dutiable goods are also kept in warehouses until duties on them are paid.

v. Advertising
Advertising stimulates the demand for goods and services. It educates the consumers on the use of the goods. Successful advertisement will lead to increase in volume of sales thereby reducing the cost of production. It also creates employment.

vi. Communication
It enables customers and their suppliers to get in touch by transmitting information to one another. This is made possible by the use of telephone, postal services, courier services, email and internet in facilitating the demand and payment for goods and services.

vii. Tourism
Tourism generates income for the country and the community. It creates employment for the operators and also provides recreation facilities to the citizens.