Question 1
- Differentiate between a merger and an acquisition.
- Explain five ways commerce is importance in the life of a nation.
Observation
Comments
Some candidates who attempted this question performed brilliantly. However, some candidates did not use conduction like while in differentiating in part (a). In part (b), some candidates did not relate the importance of commerce to a nation. They stated the importance of commerce generally.
The expected responses are.
(a) Differences between a merger and an acquisition
A merger is the coming together of two or more companies in a way that all the merging companies will close and a new company formed while an acquisition is the process of buying another company in which the company bought stops to exist and the company that purchased it becomes bigger and continues to exist.
(b) Ways commerce is important in the life of a nation
- Commerce promotes rapid transfer of both oral and written messages through communication.
- Commerce facilitates exchange of goods and services which people enjoy, whether produced within or outside their territory.
- Commerce facilitates the creation of wealth, thereby improving the standard of living in a nation.
- Commerce makes room for protection against risks in day to day business operations through insurance.
- Commerce creates awareness of the existence of goods and services through advertising.
- Commerce ensures that goods produced are stored until needed, thus making sure that there is steady supply of goods for the nation through warehousing.
- Commerce offers employment opportunities to large number of people in a nation.
- Commerce makes it possible for people and businesses to have easy access to funds through the operations of financial institutions.
- Commerce encourages international trade and cooperation as a result enhances friendly relations among countries.
- Commerce brings technological innovation and new ideas, resulting in market development.