cameroon gce advanced level 2025 commerce and finance 2

1. a. Five ways aids to trade are important to Cameroonian traders:

   i. Warehousing: Provides storage facilities for goods, helping to stabilize prices and ensure a steady supply.

   ii. Insurance: Protects traders from risks such as loss or damage to goods, fire, or theft.

   iii. Banking: Offers financial services like loans and credit, which are essential for business expansion and transactions.

   iv. Transportation: Facilitates the movement of goods from producers to consumers, both domestically and internationally.

   v. Communication: Enables traders to stay in touch with suppliers, customers, and markets, allowing for efficient business operations.

b. Five reasons why warehousing is important to the government of a country:

i. Price Stabilization: Warehouses help in regulating the supply of goods to the market, preventing artificial shortages and price hikes.

ii. Employment Generation: The establishment and operation of warehouses create jobs for a large number of people.

iii. Support for Agriculture: Governments use warehouses to store agricultural produce, ensuring food security and supporting farmers during off-seasons.

iv. Foreign Trade: Public warehouses facilitate international trade by providing secure storage for imported and exported goods.

v. Tax Revenue: The government earns revenue through taxes and duties on goods stored in and moved through warehouses.

2. a. Five features of incorporated businesses:

   i. Separate legal entity: The business has its own legal identity, distinct from its owners (shareholders). It can sue and be sued in its own name.

   ii. Limited liability: The personal assets of the owners are protected from business debts. Their liability is limited to the amount of their investment in the company.

   iii. Perpetual succession: The company continues to exist even if the owners or managers change or die.

   iv. Transferability of shares: Ownership of the company is divided into shares, which can be easily bought and sold.

   v. Management by a board of directors: The company is managed by a board of directors elected by the shareholders, not by the owners directly.

b. Five documents necessary for a business to be incorporate:

i. Memorandum of Association: Outlines the company’s constitution, including its name, registered office, objects, and share capital.

ii. Articles of Association: Contains the internal rules and regulations for the company’s management.

iii. Statement of Capital: Details the company’s share capital and shareholder information.

iv. Statement of proposed directors and secretary: Provides the names and addresses of the proposed directors and company secretary.

v. Statutory Declaration of Compliance: A legal statement confirming that all requirements for incorporation have been met.

3. a. Five benefits for the increasing use of containers in sea transport:

   i. Increased security: Containers are sealed, which reduces the risk of theft and damage.

   ii. Faster loading and unloading: Containers can be handled quickly by specialized equipment, reducing port time.

   iii. Intermodal transport: Containers can be easily transferred between different modes of transport (ship, rail, truck) without handling the cargo itself.

   iv. Reduced costs: The efficiency of container transport leads to lower freight costs.

   v. Standardization: Containers are of a standard size, which simplifies logistics and handling worldwide.

b. Five kinds of debentures:

i. Secured vs. Unsecured Debentures: Secured debentures are backed by assets, while unsecured ones are not.

ii. Redeemable vs. Irredeemable Debentures: Redeemable debentures are repaid after a fixed period, while irredeemable ones have no maturity date.

iii. Convertible vs. Non-convertible Debentures: Convertible debentures can be converted into shares of the company, while non-convertible ones cannot.

iv. Bearer vs. Registered Debentures: Bearer debentures are payable to the person who holds them, while registered debentures are registered in the name of the owner.

v. First Mortgage vs. Second Mortgage Debentures: These are secured debentures with a priority claim on the assets in case of liquidation.

4. a. Five factors influencing the premium to be paid by clients in life assurance:

   i. Age: Younger people generally pay lower premiums because they have a longer life expectancy.

   ii. Health: The health status of the applicant, including existing medical conditions, affects the premium.

   iii. Occupation: High-risk occupations (e.g., pilot, construction worker) lead to higher premiums.

   iv. Lifestyle: Habits like smoking or excessive alcohol consumption increase premiums.

   v. Sum Assured: The higher the amount of insurance coverage, the higher the premium.

b. Five ways used by the government to overcome balance of payment deficit:

i. Devaluation of Currency: Making exports cheaper and imports more expensive.

ii. Import Controls: Imposing quotas or tariffs on imported goods.

iii. Export Promotion: Providing subsidies or incentives to local exporters.

iv. Foreign Aid and Loans: Seeking financial assistance from other countries or international bodies.

v. Restriction on Foreign Exchange: Limiting the amount of foreign currency individuals and businesses can access.

5. a. Five functions that money has maintained despite its evolution over time:

   i. Medium of Exchange: Money is used to buy and sell goods and services.

   ii. Store of Value: Money can be saved and held for future use without losing its value.

   iii. Unit of Account: Money provides a common measure of the value of different goods and services.

   iv. Standard of Deferred Payment: Money is used for transactions that will be paid for at a future date.

   v. Facilitator of Trade: Money simplifies the exchange of goods and services, overcoming the limitations of the barter system.

b. Five importance of non-banking financial institutions in the economy of Cameroon:

i. Financial Inclusion: They provide financial services to segments of the population not served by traditional banks.

ii. Capital Formation: They mobilize savings and channel them into productive investments.

iii. Credit Provision: They offer loans and credit to businesses and individuals, stimulating economic activity.

iv. Diversification of Financial Services: They provide specialized services like leasing, insurance, and asset management.

v. Competition in the Financial Sector: They create competition for commercial banks, which can lead to better services and lower costs for consumers.

6. a. Five securities traded in financial markets:

   i. Stocks (Equities): Represent ownership in a company.

   ii. Bonds (Debt securities): A form of loan issued by governments or corporations.

   iii. Derivatives: Financial instruments whose value is derived from other assets (e.g., futures, options).

   iv. Mutual Funds: A pooled investment vehicle managed by a professional fund manager.

   v. Commodities: Raw materials like gold, oil, or agricultural products.

b. Five factors that determine prices of securities in the stock exchange market:

i. Supply and Demand: The basic economic principle that drives prices.

ii. Company Performance: The financial health, profitability, and future prospects of the company.

iii. Economic Conditions: General economic trends, such as inflation, interest rates, and GDP growth.

iv. Market Sentiment: Investor psychology and the overall mood of the market (e.g., bullish or bearish).

v. Geopolitical Events: Political instability, government policies, and international events can significantly impact stock prices.