2016 WAEC Commerce Theory (a) Distinguish between a broker and a factor. (b) State three duties of an employer...

(a) Distinguish between a broker and a factor.

(b) State three duties of an employer to an employee.

(c)State four duties of an employee to an employer

Distinguishing between a broker and a factor
S/NO	BROKER	JOBBER
1	An agent that does not take possession of goods.	An agent that takes possession of goods.
2	He does not sell in his own name.	He sells in his own name and issue receipts.
3	He has no right of lien over the goods. He merely brings buyers and sellers together.	He has lien /legal claims over the goods of his principal.
4	A broker is not liable if the buyer defaults in payment.	A factor is liable if the buyer defaults in payment.
5	A broker receives a commission known as brokerage.	A factor receives a commission known as factorage
6	A broker operate on the stock exchange as an agent.	A factor is merchant who sells goods on behalf of his principal.

(b) Duties of an employer to an employee:

(i) Adequate and safe tools for the performance of duties assigned to the employee must be provided.

(ii) Safe work placed suited to that particular work must be provided.

(iii) Vital instructions and training should be provided for the new and old employees.

(iv) The employer must compensate the employee adequately for any loss or accident incurred in the courses of performing his legitimate duties.

(v) The employer is expected to pay the agreed wages and salaries to his employees promptly.

(vi) He has the duty to provide sufficient employees both in number and skill to match the nature of the job to be done.

(vii) An employer is liable for wrongs committed by his employee in the course of performing his rightful duties.

(vii) The employer has the duty to provide work to the employee in relation to his employment.

(c) Duties of the employee to employer:

(i) He must be honest, dedicated and loyal to his employer.

(ii) Must be punctual and regular at work.

(iii) Must not reveal any trade or confidential information regarding his employer.

(iv) The employee must perform the tasks in his job with the required skill.

(v) Must be willing to put extra effort to the progress and success of the business

(vi) To perform duties according to the terms of contract.

(vii) To obey legitimate orders and instructions of the employer.

(viii) He is accountable to the employer.

(viii) He must not make secret profit.

(ix) Employee cannot delegate his duty to another person.

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