WAEC SSCE Commerce

BUSINESS CAPITAL AND PROFITS

Study notes for BUSINESS CAPITAL AND PROFITS — part of the WAEC SSCE Commerce syllabus. 1 learning objectives with explanations and exam tips.

Objectives1
SubjectCommerce
ExamWAEC SSCE
Study Notes
Objective 1 of 1
Business Capital and Profits Study Note

Capital is the money a business owner puts into their company to start and run operations. Think of it like the money you'd need to open a small provision store in your neighbourhood. There are different types: authorized capital is the maximum amount a company is allowed to raise, while paid-up capital is what shareholders have actually invested. Working capital is the money available for day-to-day running costs like paying workers and buying stock.

Profit is simply what remains after subtracting all business expenses from total revenue. If a Nigerian trader buys goods for ₦50,000 and sells them for ₦75,000, their profit is ₦25,000. Turnover refers to the total value of goods sold during a period, not the profit itself—many students confuse these two concepts.

Understanding these concepts helps you know whether a business is truly healthy financially.

💡 Exam tip: Always distinguish between turnover (total sales) and profit (sales minus expenses)—WAEC loves testing whether students confuse these terms.
Frequently Asked Questions
How many WAEC objectives are in BUSINESS CAPITAL AND PROFITS?
The WAEC SSCE Commerce topic 'BUSINESS CAPITAL AND PROFITS' has 1 learning objectives you must master.
Does BUSINESS CAPITAL AND PROFITS appear in WAEC Commerce exams?
BUSINESS CAPITAL AND PROFITS is part of the official WAEC SSCE Commerce syllabus, so questions can be drawn from it in any year.
How do I study BUSINESS CAPITAL AND PROFITS for WAEC?
Study each of the 1 objectives listed above. For each one, understand the concept, learn one worked example, and practise past questions on the topic.
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