COMMERCE NECTA EXAMINATIONS
YEAR : 2018  SUBJECT : COMMERCE

THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL OF TANZANIA

CERTIFICATE OF SECONDARY EDUCATION EXAMINATION

061 COMMERCE

(For Both School and Private Candidates)

Time: 2:30 Hours Tuesday, 13th November 2018 p.m. 

 Instructions

  1. This paper consists of sections A, B and C with a total of ten (10) questions.
  2. Answer all questions in sections A and B and two (2) questions from section C.
  3.  Calculators, cellular phones and any unauthorized materials are not allowed in the examination room.
  4. Write your Examination Number on every page of your answer booklet(s).

  SECTION A (20 Marks) 

Answer all questions in this section.

1. For each of the items (i) - (x), choose the correct answer from among the given alternatives and write its letter beside the item number in your answer booklet provided.

 (i)  Which of the following is not a characteristic of itinerant traders?

  1. They may operate as regular dealers throughout the year.
  2. They operate with a minimum of the establishment expenses.
  3. They operate only alongside the main roads.
  4. They operate their business without fixed premises. 
  5. They operate with a very small amount of capital.

(ii)  The basic factors of production comprises the following:

  1.   land, labour and organization.
  2.  land, labour, organization and capital.
  3.  land, organization and capital.
  4.  land, labour and capital.
  5.  land, organization, capital and production.

(iii) The inquiry letter may not be answered by one of the following:

  1. by sending a catalogue. 
  2.  by sending a price current.
  3. by sending an invoice. 
  4.  by sending a list price.
  5.  by sending a quotation.

(iv) Which of the following statements is true?

  1.   Economics is a branch of commerce.
  2.  Economics is a branch of production.
  3. Commerce is a branch of economics.
  4.  Commerce is not a branch of production.
  5.   Production is a branch of commerce.

(v) Why does advertising become a burden to the users of the product?

  1.   It increases production.
  2.  It increases the final price.
  3. It reduces quality of the product.
  4. It reduces the choice of the customers. 
  5. It increases the turnover.

 (vi)  Which of the following statements represents indirect service?

  1.   A farmer produces maize for her personal use.
  2. A factory worker produces shoes for his customers.
  3.   Retailer sales goods to his customers.
  4.  Wholesaler sales goods to his customers.
  5.  A doctor provides treatment to his customers.

(vii) Which one of the following is not among the limitations of insurance?

  1.   Losses must be accidental 
  2.  Losses must be catastrophic. 
  3.  Losses must be compensated 
  4.  Losses must be of similar risks 
  5.  Losses must be reasonably unexpected.

 (viii) The five main functions of stock administration include:

  1.   receiving, placing of items, selling, care of stock and issuing.
  2.  receiving, placing of items, care of stock, issuing and stock control.
  3.  receiving, issuing, stock control, stock care and dusting of items.
  4.  receiving, issuing, stock control, stock level and placing of items.
  5.  receiving, issuing, placing of items, dusting and sorting of spoilt items.

(ix)  The tax system whose rate remains constant irrespective of change in income or property is referred to as

  1. Direct tax 
  2.  Proportional taxation
  3. Indirect tax 
  4.  Progressive taxation
  5.  Regressive taxation.

(x)  Movement alongside the supply curve is caused by

  1.  change in price of the commodity
  2.  change in quantity demanded
  3. increase in price of the commodity 
  4.  decrease in price of the commodity 
  5.  increase in quantity supplied.

2. Match the items in Column A with the responses in Column B by writing the letter of the correct response beside the item number in the answer booklet provided.

LIST A LIST B
  1. The shares entitled to profits payment after all other shares paid.
  2. The unit of loan that needs no property to be pledged against it.
  3. The shares that may be bought back by the company after a stated period of time.
  4. Profits which are not paid to the ordinary shareholders in the period they are earned.
  5. The shares from which the shareholders have the first right to receive dividends at fixed rate
  6. The unit of loan that can be bought back by the company.
  7. The shares which are entitled to a fixed rate of dividend till they are paid.
  8. The shares which are entitled to a fixed rate of dividend when sufficient profits are available.
  9. The shares which are entitled to a fixed rate of dividend plus any extra profit after ordinary shares being paid.
  10. A long term finance raised by a company through public borrowing.
  1. Unsecured debenture
  2. Non-cumulative preference share
  3. Debenture
  4. Retained earnings and provisions
  5. Redeemable preference shares
  6. Participating preference shares
  7. Preference shares
  8. Non-cumulative debentures
  9. Redeemable debenture
  10. Dividends
  11. Ordinary shares
  12. Cumulative preference shares
  13. Mortgaged debentures
  14. Ordinary shareholders
  15. Redemption of shares

SECTION B (40 Marks)

answer all questions in this section.

3. (a) Why taxes are levied by the government? Briefly explain by giving five reasons.

(b) In brief, analyze five advantages of direct taxes.

 

4.  (a) How does temporary partnership differ from permanent partnership?

 (b)  What is meant by the following commercial terms?

  1.  Limited partner
  2.  Quasi partner
  3.  Dormant partner
  4.  Active partner

(c)  Give four advantages of partnerships over sole proprietorship.

 

5. (a) A wholesaler J. Gerald sells his product (maize) at Tsh 500 per kg. He gives trade discount to his customers as shown here under:

Less than 1,000 kg 10%

From 1,000 kg to 5,000 kg 25%

Over 5,000 kg 30%

One of his customers bought 4,550 kg Calculate:

(i)  The amount of trade discount given to that customer.

(ii)  The actual amount to be paid to J. Gerald.


(b)  The following information was extracted from the books of Nyakamande a wholesale trader for the financial year ending 31st May 2016.

Closing stock Tsh 240,000

Gross profit Tsh 320,000

Net purchases Tsh 720,000

Cost of goods sold Tsh 800,000

Salaries Tsh 80,000

Cash in hand Tsh 15,000

Calculate the following:

  1.  Opening stock.
  2. Net sales.
  3. Average stock.
  4.  Rate of stock turn.
  5. Margin as percentage.

 

6.  (a) Differentiate the following types of retailers:

 (i) Mobile shops form single shops.

 (ii) Tied shops from road side sellers.

 (b)  Briefly explain six factors that a manufacturer should have to consider when choosing a distribution channel. 

 SECTION C (40 Marks)

  Answer two (2) questions from this section.

 7.  (a) Explain what would happen if money is not rightly controlled? Give four points.

 (b) Describe six merits of barter system.

8.  (a) Explain four indicators of good internal communication in the industry.

 (b) Elaborate six advantages of written communication.

9.  (a) Explain five means in which any exporter may secure payments.

(b)  Discuss three incentives provided by the governments to its exporters to improve exports. 

10.  (a) Elaborate four main types of organization structure.

 (b) Explain six principles of organization.

MARKING SCHEME|
YEAR : 2017  SUBJECT : COMMERCE

THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL

CERTIFICATE OF SECONDARY EDUCATION EXAMINATION 

061                     COMMERCE

(For Both School and Private Candidates)

Time: 2:30 Hours                      Thursday, 09thNovember 2017 p.m.

Instructions

  1. This paper consists of sections A, B and C with a total of ten (10) questions.
  2. Answer all questions in sections A and B and two (2) questions from section C.
  3. Calculators, cellular phones and any unauthorized materials are not allowed in the examination room.
  4. Write your Examination Number on every page of your answer booklet(s).

SECTION A (20 Marks) 

Answer all questions in this section.

1.For each of the items (i) - (x), choose the correct answer from among the given alternatives and write its letter beside the item number in your answer booklet(s) provided.

(i)Which of the following is not a major goal of planning in business?

  1. To gain economic operation
  2.  To focus attention on objectives
  3. To facilitate control
  4. To maintain profits
  5. To offset uncertainty and change

(ii) Marine insurance policy which do not specify the subject matter insured is referred to as

  1. time policy
  2. cargo policy.
  3.  floating policy
  4.   mixed policy 
  5.  voyage policy

(iii)  Which of the following is the disadvantage of mail order business?

  1. There is limited range of goods
  2. Middlemen can be eliminated
  3. Trade is carried out 24 hours
  4. Not necessary to maintain a big shop
  5.  No shop assistants are employed

(iv) The traders who buy goods from abroad in their own name and sell them locally are called

  1. import commission agents
  2.  import argents. 
  3. import merchants
  4. import brokers 
  5. importers’ argents.

(v) A certificate of incorporation is a document that

  1.  governs the relationship of the company with outsiders.
  2. empowers the company to commence business activities.
  3. gives a company a legal existence.
  4. lays down rules and regulations of the internal organization of a company. 
  5. invites offer from the public for subscription of shares of a company.

(vi)  Which of the following is not the aim of marketing boards?

  1. Finding a satisfactory market.
  2. Stabilizing prices of agricultural products.
  3. Ensuring a steady supply of the commodity all through.
  4. Encouraging competition between marketing boards.
  5. Assisting farmers with collection and storage of their produce.

(vii)  The warehouses which are situated at terminals of railway, air ports and sea ports are known as

  1. public warehouse. 
  2. bonded warehouse 
  3. wholesaler’s warehouse 
  4. manufacture’s warehouse.
  5. private warehouse.

(viii)  special crossing is a type of crossed cheque which consists of 

  1. two parallel lines with no words between them.
  2. two parallel lines with words ‘and Company’ between them
  3. two parallel lines with drawee’s name between them 
  4. two parallel lines with drawer’s name between them
  5. two parallel lines with endorser’s name between them.

(ix) An insurance principle which restored the insured to the same position after the event is known as

  1. Insurable interest.
  2. Utmost good faith.
  3. Subrogation.
  4. Contribution. 
  5. Indemnity.

(x) What are the two main stages in production?

  1. Direct production and indirect production.
  2. Direct production and secondary production.
  3. Commerce and industry.
  4. Primary and secondary industries.
  5. Trade and industry.

2.  Match the items in Column A with the responses in Column B   by writing the letter of the correct response beside the item number in the answer booklet provided.

COLUMN A COLUMN B
  1. The accounts in which the account holders are allowed to overdraw their accounts.
  2. The cheques issued by the banks in fixed denominations to a person who pays for them in advance.
  3. A cheque drawn on a bank and is more readily acceptable as a bank guarantees payments against it.
  4. The cheques made payable on a later date in future.
  5. The situation in which the current account holders are allowed to overdraw their accounts.
  6. The payee signs the back of the cheque authorizing the drawee to pay the cheque to any one presenting it.
  7. A cheque made payable to a specified person.
  8. A written order from an account holder to his bank to pay a specified sum of money to the person named therin or to bearer.
  9. A single cheque prepared by the bank from instructions given by the account holder to pay the named people directly to their accounts.
  10. A cheque that is presented to the bank six months after the date on it.
  1. Travellers cheques
  2. Dishonoured cheques
  3. Bank draft
  4. Crossed cheques
  5. Credit transfer
  6. Stale cheques
  7. Bank charges
  8. Order cheques
  9. Post-dated cheques
  10. Bank overdraft
  11. Current accounts
  12. Savings accounts
  13. General endorsement
  14. A cheque
  15. Transfer of cheque.

             SECTION B (40 Marks)

 Answer all questions in this section.

3. (a) Elaborate five disadvantages of departmental stores.

(b) Briefly explain five benefits of installments selling to the seller.

4.  (a)  Giving five points, discuss the importance of commerce to a developing country. (b) Describe five functions of capital as factor of production.

5. (a) Tabinza insured his house against fire accident, the value of that house was shilings 20 million. Two months later, the house was destroyed as a result of an insured risk and he would be entitled to claim the total amount insured. The insurance company sales the scrap from the destroyed house for shilings 5 million. How much would Tabinza receive from the insurer? Justify your answer with clear explanation principle applied to compensate him.

(b) Giving three points, explain how insurance companies make their profit.

(c) Differentiate co-insurance from re-insurance.

6. The following details were extracted from the books of Mawaya for the year ended 30th  June 2015.

Sales shs 840,000

Cost of sales is 75% of sales

Opening stock at cost shs 90,000

Closing stock 20% of cost of goods sold

Owner’s capital was shs 500,000

Trade debtors shs 110,000

Cash in hand shs 23,500

Lorry shs 400,000 Trade creditors shs 45,500 Net profit is 20% of sales.

Compute the following:

(a)  Cost of goods sold

(b)  Closing stock

(c)   Gross profit

(d) Net profit

(e) Working capital

(f) Working capital ratio 

(g) Total value of assets 

(h) Total expenses for the year.

(i) Mark-up ratio

(j)  Margin ratio

SECTION C (40 Marks)

 Answer two (2) questions from this section.

7.(a)  What is meant by the term branding in marketing? Give one example. 

  (b) Analyze six functions of marketing. 

   (c)  Describe three disadvantages of using radio as an advertising media.


8.   (a)  (i)  Describe three importance of management in business organization.

     (ii) What is the different between planning and staffing in relation to management?

(b) (i)  Describe the term organization.

     (ii) With four points, explain the importance of organization in any business.

(c)  Mr Kenge is a supervisor in printing department of a certain organization. His department has 120 subordinates. Which principle of organization had been violated for him to supervise large number of subordinate? Justify your answer by stating clearly the principle violated.

 

9. (a)  Explain by giving five reasons, why a wholesaler can usually sell his goods on a lower profit margin than a retailer?

(b) Discuss five services rendered by the wholesaler to the manufacturer.

10. (a)  Explain five roles of transport to the development of a country.

    (b) Elaborate two advantages and three disadvantages of water transport.

MARKING SCHEME|
YEAR : 2016  SUBJECT : COMMERCE

THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL

CERTIFICATE OF SECONDARY EDUCATION EXAMINATION

061 COMMERCE

(For Both School and Private Candidates)

Time: 2:30 Hours Friday, 11th November 2016 p.m.

Instructions

  1. This paper consists of sections A, B and C.

  2. Answer all questions in sections A and B and two (2) questions from section C.

  3. Calculators and cellular phones are not allowed in the examination room.

  4. Write your Examination Number on every page of your answer booklet(s).

SECTION A (20 Marks)

Answer all questions in this section.

1. For each of the items (i) - (x), choose the correct answer from among the given alternatives and write its letter beside the item number in your answer booklet.

(i) Goods can mainly be classified as

  1.  durable goods and perishable goods
  2.  consumer goods and producer goods
  3.  consumer goods and economic goods
  4.  producer goods and free goods
  5.  producer goods and economic goods.

(ii) A cheque which is presented to the payee before the date on it is called

  1.  dishonoured cheque 
  2.  crossed cheque
  3.  stale cheque
  4.  post-dated cheque
  5.  open cheque.

(iii) Which one of the following is the disadvantage of departmental store to the seller?

  1.  Wide choice of products.
  2.  Convenience in shopping.
  3.  Extensive use of advertising.
  4.  Careful selection of goods.
  5.  Services to customers.

(iv)The main reason for the existence of public corporations is to

  1.  maximize profits for distributions to members of the public
  2.  provide certain essential services to members of public
  3.  enlighten the public on how to conduct their business
  4.  sell shares to members of the public
  5.  to distribute loss made by corporations to members of the public.

(v) Bi-lateral trade in international trade means

  1.  a country has a greater part of her foreign trade with only one country.
  2.  a country has a greater part of her foreign trade with only two countries.
  3.  a country has a greater part of her foreign trade with several countries.
  4.  a country has a greater part of her export trade to only one country.
  5.  a country has a greater part of her import trade from several countries.

(vi) The capital employed is obtained by

  1.  adding current assets to current liabilities
  2.  adding current assets to total liabilities
  3.  adding total assets to total liabilities
  4.  adding total assets to working capital
  5.  adding total liabilities to working capital.

(vii) A life assurance policy where an assured person promises to pay premium for a specified number of years is called

  1.  Whole life policy
  2.  Endowment policy
  3.  Annuity policy
  4.  Family income policy
  5.  Group life policy.

(viii) Which one of the following is not an important clause of a charter party?

  1.  The parties to the agreement.
  2.  The cargo to be carried.
  3.  The freight to be paid for the voyage.
  4.  The terms of the voyage.
  5.  The passengers to be carried.

(ix) Which document is to be sent by the exporting country showing the list of goods needed to the importer who buy goods through an agent?

  1.  letter of credit
  2.  Bill of lading
  3.  Certificate of origin
  4.  An indent
  5.  Bill of exchange.

(x) Which of the following is the correct form of transport?

  1.  Water, land and air.
  2.  Water, land and railway.
  3.  Water, air and road.
  4.  Sea, railway and air.
  5.  Land, lakes and air.

2. Match the items in Column A with the responses in Column B by writing the letter of the correct response beside the item number in your answer booklet.

COLUMN A COLUMN B
(i) Engaged only on limited range of stock while combining selling, delivery and collection in one operation.

(ii) Engaged in supplying a certain type of goods to a certain type of retail stores.

(iii) Engaged in buying and selling of goods from different producers to retailers.

(iv) Selling a particular type of goods but offer greater variety within their particular field.

(v) Engaged in showing catalogues, and price lists to retailers to persuade them to buy the goods.

(vi) Engaged in selling to the wholesalers’ warehouse that require them to pick what they want.

(vii) Engaged in selling goods to the public without reserves.

(viii) Engaged in selling of goods to the retailers to different areas in a given state.

(ix) Engaged in buying and selling of goods on their capital and perform all activities in the business.

(x) Engaged in collection and delivery of goods on behalf of others.

  1. Specialised wholesaler

  2. Auctioneers

  3. Rack Jobbers

  4. Truck wholesellers

  5. Cash and carry wholesalers

  6. Forwarding agents

  7. Factors

  8. Underwriters

  9. Broker

  10. Travelling agents

  11. Merchant wholesalers

  12. Regional wholesalers

  13. International wholesalers

  14. General wholesalers

  15. Nationalwide Wholesalers

SECTION B (40 Marks)

Answer all questions in this section.

3. Differentiate the following commercial terms:

  1. Formal communication and informal communication.

  2. Oral communication and written communication.

  3. Audio media and audio visual media.

  4. Internal communication and external communication.

  5. Fax and internet.

4. (a) Describe five qualities of a good entrepreneur.

(b) Mr Mkuu started business two years ago as a soft drink supplier, now his business has collapsed. As an expert in commercial subject, give him four possible causes of his business failure.

5. (a) Briefly explain the following terms:

  1. Stock taking

  2. Stock valuation

  3. Minimum stock

  4. Maximum stock

  5. Rate of stock turn

  6. Order point

(b) From the following details, calculate the order point of Mr Kenge a wholesaler for the month of November, 2015.

Bags of sugar of 50 kg each:
Daily sales volume = 50 bags Minimum stock = 200 bags
Delivery time = 4 days 

(c) What are the three important functions performed by the modern warehouses in the process of marketing of goods?

6. (a) Elaborate five factors used in determining the elasticity of demand.

(b) From the following demand and supply schedule for sugar, draw up demand and supply curves; clearly show the equilibrium point, equilibrium price and equilibrium quantity, the region of excess supply and excess demand.

Demand and Supply Schedules for Sugar

Quantity demanded in kg

Quantity supplied in kg

Price per kg in Tsh

4000

1000

100

3500

1500

150

3000

2000

200

2500

2500

250

2000

3000

300

1500

3500

350

1000

4000

400

SECTION C (40 Marks)

Answer two (2) questions from this section.

7. (a) Explain seven rights of partners in the partnership if the partnership is formed without partnership deed.

(b) Elaborate three circumstances which cause the dissolution of the partnership.

8. (a) Critically explain the term trade and describe its branches.

(b) Explain six basic activities which facilitate smooth running of trade.

9. (a) Briefly explain the term transport.

(b) Urafiki text tile industry in Dar-es-Salaam buys raw materials (cotton) in large quantity from Mwanza region. Such raw material needs to be transported to Dar-es Salaam to effect production. Advise them the proper mode of transport to be used by describing them five advantages and five disadvantages of its use.

10. (a) Identify the three main types of intermediaries in import trade.

(b) Explain three importance of bill of lading in exporting of goods.

(c) What is meant by a letter of credit? Identify and describe its types.

MARKING SCHEME | Share To Friend |
YEAR : 2014  SUBJECT : COMMERCE

THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL CERTIFICATE OF SECONDARY EDUCATION EXAMINATION

061 COMMERCE

(For Both School and Private Candidates)

Time: 2:30 Hours Friday, 14thNovember 2014 p.m.

Instructions

1.This paper consists of sections A, B and C.

2.Answer all questions in sections A and B and two (2) questions from section C.

3.Calculators and cellular phones are not allowed in the examination room.

4.Write your Examination Number on every page of your answer booklet(s).

SECTION A (20 Marks)

Answer all questions in this section.

1. For each of the items (i) ­ (x), choose the correct answer from among the given alternatives and write its letter beside the item number in your answer booklet.

(i) Advertising is important because it mainly

  1. creates the demand for the goods and services
  2. creates employment for a large number of people
  3. reduces the price of goods and services
  4. induces customers to buy goods that have minor defects
  5.  creates the demand for the goods of low quality.

(ii) Which of the following are the major sources of partners’ capital?

  1. Financial institutions.
  2. Trade credit from suppliers.
  3. Profit from the business.
  4. Business properties sold.
  5. Hire purchase.

(iii) Which one of the following statements is true of a sole trader?

  1. He is legally separate entity from the business.
  2. He has limited liability.
  3. His business has unlimited legal life.
  4. He makes decisions with other co­partner.
  5. He enjoys all the profits and suffers all the losses.

(iv) The main reason for the existence of public corporations is to

  1. maximize profits for distributions to members of the public
  2. provide certain essential services to members of public
  3. enlighten the public on how to conduct their business
  4. sell shares to members of the public
  5. to distribute loss made by corporations to members of the public.

(v) Which one of the following documents is used by a buyer to gather information from the seller?

  1. An order.
  2. An invoice.
  3. A statement.
  4. A delivery note.
  5. An inquiry.

(vi) Road transport is used mainly as as a method of carrying goods within the country because it is the

  1. cheapest form of transport
  2. quickest form of transport
  3. most widely available form of transport
  4. most reliable form of transport
  5. safe mode of transport.

(vii) Which one of the following is a method used by government to protect consumers?

  1. Fixing minimum prices.
  2. Fixing maximum prices.
  3. Fixing minimum profits.
  4. Fixing maximum profits.
  5. Fixing minimum and maximum prices.

(viii) A debit note is used to correct 

  1.  undercharge on an invoice
  2. overcharge on an invoice
  3. undercharge on a statement
  4. overcharge on a statement
  5. undercharge on an order.

(ix) Which of the following activities cannot be classified as productive?

  1. Working as a cook in your own house.
  2. Playing hockey as a professional.
  3. Working as a cook in a restaurant.
  4. Playing cards as a hobby.
  5. Building house of a neighbour.

(x) Which of the following reasons does not justify the existence of parastatal enterprises?

  1.  To provide goods and services not being provided by the private sector.
  2. To enable the government to control the distribution of certain commodities.
  3. To enable the government to control the profits earned by the private enterprises.
  4. To provide goods and services at relatively fair prices.
  5. To control exploitation of the individuals by the private sector.

2. Match the items in Column A with the responses in Column B by writing the letter of the correct response beside the item number in your answer booklet.

COLUMN A COLUMN B
  1. A document from an importer requesting an exporter to supply the listed goods.
  2. Gives the importer permission to import the intended goods.
  3. Issued by the ship­owner to an exporter acknowledging receipt of goods.
  4. Gives details of the goods being imported and the country produced.
  5. A document prepared by a diplomat showing prices charged for the goods that are current and fair.
  6. A document sent in advance of the goods being exported to enable the importer to pay duty before the goods arrival.
  7. A document from an importer’s bank requesting a bank in a foreign country to pay an exporter on behalf of the importer.
  8. Shows the policy under which consignment risk is covered.
  9. A document authorizes sale of goods in a foreign country if the payment on the bill of exchange cannot be obtained from the importer.
  10. Shows the shipping charges of a shipping company
  1. Certificate of origin
  2. Letter of inquiry
  3. Indent
  4. Catalogue
  5. Bill of lading
  6. Letter of hypothecation
  7. Quotation
  8. Licence
  9. Letter of Credit
  10. Analysis certificate
  11. Consular invoice
  12. Freight Note
  13. Certificate of insurance
  14. Order form
  15. Pro forma invoice

SECTION B (40 Marks)

Answer all questions in this section.

3.(a) Complete the following table:

Fixed Assets Current Assets Long term Liabilities Current Liabilities Owners Equity Working Capital

300,000

60,000

180,000

30,000

(i)

(ii)

(iii)

120,000

90,000

(iv)

375,000

75,000

480,000

(v)

(vi)

195,000

300,000

45,000

(b)The following information was extracted from the books of a trader:

Stock

Sh. 600,000

Debtors

Sh. 200,000

Cash at bank

Sh. 100,000

Creditors

Sh. 600,000

Sales

Sh. 1,000,000

Purchases

Sh. 800,000

From the above information, calculate:

(i)Current ratio

(ii)Quick ratio

(iii)Debtor’s as a percentage to sales

(iv)Creditor’s as a percentage to purchases.

4.(a) Enumerate five ways in which the community benefits from learning business studies.

(b) State five differences between direct and indirect production.

5.(a) Briefly explain five services that are rendered by middlemen to producers in the chain of distribution.

(b)Mention five factors that may inhibit entrepreneurial development in a country.

6.(a) Outline five factors which may determine the amount of premium paid by an insured.

(b) Give five ways in which land is useful as a factor of production.

SECTION C (40 Marks)

Answer two (2) questions from this section.

7.(a) Sales promotion plays important roles in commerce. Discuss by giving five relevant points.

(b)Mawazo Mema is a Hotel Manager. Describe six possible ways which he can use to motivate his employees to work hard and create business for the hotel.

8.(a) Describe five factors that should be considered before establishing new industries.

(b) Explain five benefits enjoyed by public companies.

9.(a) It is often argued that in a commercial system such as that existing in Tanzania a wholesaler cannot be eliminated. Justify.

(b)Describe under what circumstances banks will dishonour a cheque even if the drawer has enough money in his account.

10.(a) Explain five methods used by a country to control imports.

(b)Critically analyse five disadvantages associated with sole proprietorships.

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YEAR : 2013  SUBJECT : COMMERCE

THE UNITED  REPUBLIC  OF  TANZANIA NATIONAL EXAMINATIONS  COUNCIL

CERTIFICATEOF SECONDARY EDUCATION EXAMINATION

061         COMMERCE

(For Both School and Private Candidates)

Time: 2:30 Hours Friday, 15th November 2013 p.m.

Instructions

1. This paper consists of sections A, B and C.

2. Answer all questions in sections A and B and two(2) questions from section C.

3. Calculators and Cellular phones are not allowed in the examination room.

4. Write your  Examination Number on every page of your answer booklet(s).

SECTION A (20 Marks) 

Answer all questions in this section.

1. For each of  the  items  ( i) - ( x),  choose  the  correct  answer  from among  the  given  alternatives  and write  its  letter  beside  the  item number.

(i) An over draft exists when

  1.  a  current  account  shows  deposits  without  withdrawals 
  2.  a current account shows  more  deposits  than  withdrawals 
  3.  a  loan  has  been granted by a bank  to  a  customer
  4.  the balance in current  account  falls  below  the  specified  amount
  5.  a current account shows larger  amount of withdrawals than deposits.

(ii) Which one of  the following statement is NOT true about a bill of exchange?

  1.  It  must  be  accepted  by  the  drawee. 
  2.  It  must  bear appropriate stamp duty.
  3.  It  must  be  signed by the drawer.
  4.  It  must  be  payable  on  demand.
  5.  It can be paid at a stated future date.

(iii) The  principal  document  in   an insurance  contract  is

  1.  Policy. 
  2.  Cover note.
  3.  Proposal form.
  4.  Certificate.
  5.  Premium.

(iv) If employer wishes to pay a number of employees with one cheque he may use

  1.  standing  order
  2.  credit  transfer
  3.  traveller’s cheque
  4.  credit card
  5.  money order.

(v) A credit note is issued  to  correct 

  1.  any error in an invoice 
  2.  an overcharge in an invoice
  3.  an  undercharge  in  an  invoice
  4.  an  overcharge in a statement
  5.  an  undercharge in a statement.

(vi) The function with is  NOT usually performed by a retailer is

  1.  Transport  goods. 
  2.  Storage of goods.
  3.  Advice to customer.
  4.  Changing the form of goods.
  5.  Selling goods to the wholesaler.

(vii) The most suitable type of account for a businessman is

  1.  A  savings  account. 
  2.  A current account.
  3.  A deposit account.
  4.  A contract saves account.
  5.  A company  account.

(viii) The list of documents prepared in the course of commercial transaction in the right order of  being  raised  is

  1.  Order,  inquiry, quotation, invoice, statement, receipt.
  2.  Quotation,  inquiry,  invoice,  order,  cheque,  statement.
  3.  Inquiry,  quotation,  order,  invoice,  statement,  cheque
  4.  Quotation,  inquiry,  order,  invoice, cheque,  statement.
  5.  Inquiry,  order, quotation, invoice, statement, cheque.

(ix) The group which represents a broad classification of human occupations is

  1.  Commerce, production and aids to trade.
  2.  Trade and aids to trade.
  3.  Banking, insurance and transportation. 
  4.  Extractive, manufacturing and constructive industries.
  5.  Industrial  and  tertiary.

(x) If Tanzania exports more goods to Uganda than she imports from the same country, her balance  of 

  1.  trade is favourable
  2.  trade  is  unfavourable
  3.  payment is favourable 
  4.  payment is  unfavourable
  5.  trade and  payment are favourable

2. Match the items in ColumnA with the responses in Column B by writing the letter of the correct response  beside the item number. 

COLUMN A COLUMN B
  1. The quantity of a commodity that producer is willing and able to sale.
  2. More commodities are supplied together.
  3. An increase in the production  of  one  commodity implies  a decrease in the production of the other.
  4. Relationship between the quantity of a commodity supplied and the price.
  5. Shows relationship between the quantity supplied and the  price.
  6. Any price above the equilibrium price.
  7. The higher the price the more the commodities supplied.
  8. The sensitivity of supply for a product due to a change in price.
  9. The movement of a  supply are to the right or  left due to a change in the factors affecting supply.
  10. The movement along a supply are due to commodity price changeS
  1. Excess supply
  2. Elasticity of supply
  3. Cross elasticity of supply
  4. Law of supply
  5. Change in quantity supplied
  6. Supply curve
  7. Change in supply
  8. Supply
  9. Inelastic supply
  10. Supply schedule
  11. Unitary supply
  12. Elastic supply
  13. Joint supply
  14. Inelastic supply curve
  15. Competitive supply

SECTION  B  (40  Marks)

Answer  all  questions in this section.

3. With  the aid of diagram, show classification of occupations.

4. (a) Enumerate five services  offered  by the post  office  in  Tanzania. (b) Explain  five  factors that influence  demand  for goods in a market.

5. (a) State  five limitations of cooperative society.

(b) Outline  five  merits  of  railway  transport. 

6. (a) Give five differences between  insurance  and  gambling. 

(b) Under which circumstances would  cash  payment be preferred over cheque payment?

SECTION C (40 Marks)

Answer two (2) questions from this section.

7. (a) Describe five main services provided to the government by a  Central Bank. 

(b) Elaborate  five  factors  affecting  a particular  share’s price.

8. (a) Explain five disadvantages of advertising.

(b) Describe five problems faced by exporters which do not affect people in domestic trading.

9. (a) It has been said that, “a wholesaler has nothing to do to  the manufacturer”. Discuss by giving  six  concrete  points.

(b) Elaborate  four  ways  in which the government spends its money.

10. (a) Evaluate four factors that a bank should put into consideration before providing loan to a customer.

(b) Name and explain six economic effects of taxation.

MARKING SCHEME|
YEAR : 2012  SUBJECT : COMMERCE

THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL

CERTIFICATE OF SECONDARY EDUCATION EXAMINATION 

061  COMMERCE

(For Both School and Private Candidates)

Time: 2:30 Hours  Monday, 15th October 2012 p.m.

Instructions

1. This paper consists of sections A, B and C.

2. Answer all questions in sections A and B and two(2) questions from section C.

3. Calculators are not allowed in the examination room.

4. Cellular phones are not allowed in the examination room.

5. Write your Examination Number on every page of your answer booklet(s).

SECTION A (20 Marks) 

Answer all questions in this section.

1. For each of the items (i) - (x), choose the correct answer from among the given alternatives and write its letter beside the item number.

(i) When a visible imports exceed visible exports, a country is said to have

  1.  a favourable balance of trade
  2.  a favourable balance of payment
  3.  unfavourable balance of trade
  4.  unfavourable balance of payment
  5.  unfavourable balance of payment and trade

(ii) Which of the following is the basic feature of all multiple shops?

  1.  Numerous departments.
  2.  High prices of goods sold.
  3.  Similar goods sold in all departments.
  4.  Different goods sold in all departments.
  5.  Goods are sold under one roof.

(iii) Consumer goods are best defined as goods that

  1.  are bought and sold in shops 
  2.  are needed for direct satisfaction
  3.  help to produce other goods 
  4.  are consumed by human beings 
  5.  are provided by nature.

(iv) A marketing board is a board set up to

  1.  advise co-operatives only
  2.  deal with exports
  3.  buy goods from importers and sell them
  4.  buy products from producers and sell them
  5.  export manufactured goods.

(v) Which of the following is the benefit of sole traders over limited companies?

  1.  They have unlimited liability.
  2.  They do not pay VAT.
  3.  They find it easier to raise capital.
  4.  They make decisions quickly.
  5.  They have no risks associated with their personal assets.

(vi) Which of the following industries are concerned with obtaining raw materials from natural resources?

  1.  Constructive industries. 
  2. Manufacturing industries.
  3. Building industries. 
  4. Mining industries.
  5. Extractive industries.

(vii) Which of the following is NOT necessary for the development of commerce in a country?

  1. Increased industrial production. 
  2. Improved transport system
  3. Direct production of goods. 
  4. Extensive advertising. 
  5. Improved banking system.

(viii) The list of documents prepared in the course of commercial transaction in the right order of being raised is

  1. Can be exchanged for gold at the Bank of Tanzania.
  2. Can be tendered in payment of debt
  3. Can be refused by creditor who would prefer a cheque 
  4. Can be printed by any commercial bank. 
  5. Can be printed by any internal bank.

(ix) A letter of credit is sent by

  1. exporter’s bank to a correspondent bank
  2. improter’s bank to a correspondent bank
  3. importer to exporter
  4. a central bank to a correspondent bank
  5. importer’s agent to the exporter’s agent.

(x) An advalorem tax is an indirect tax collected

  1. per unit of goods regardless of the value
  2. on home produced goods according to the value
  3. directly from consumers’ incomes
  4. on each good according to the value
  5. on goods from abroad according to the value.

2. Match the items in Column A with the responses in Column B by writing the letter of the correct response beside the item number.

COLUMN A COLUMN B

  1. The quantity of a commodity required by buyers.
  2. Increase in the price of one of the products leads to a decrease in demand for the other.
  3. Increase in the price of one of the products leads to an increase in demand for the other.
  4. The demand for commodity due to an increase in the demand for another commodity.
  5. The demand for a commodity that can be used in many ways.
  6. Relationship between the price and the quantity demanded.
  7. The higher the price the lower the quantity demanded.
  8. The sensitivity of demand for a product due to a change in price.
  9. The responsiveness of demand for a product due to changes in incomes of the consumer.
  10. The movement along a demand curve due to commodity price changea
  1. Composite demand
  2. Elasticity of demand
  3. Derived demand
  4. Law of demand
  5. Cross elasticity of demand
  6. Change in quantity demanded
  7. Income elasticity of demand
  8. Demand
  9. Inelastic demand
  10. Demand schedule
  11. Unitary demand
  12. Elastic demand
  13. Joint demand
  14. Inelastic demand curve
  15. Competitive demand

SECTIONB (40 Marks)

 Answer all questions in this section.

3. The following balances were extracted from the books of Mungiki’s clock business for the year. Opening stock sh. 23 ,000/-, purchases sh. 115,000/-, carriage inwards sh. 3,000/-, purchases returns sh. 18,000/-, sales sh. 200,000/-, sales returns sh. 15,000/-, closing stock sh. 30 ,000/-, current assets sh. 45,000/-, current liabilities sh. 90,000/- and fixed assets sh. 180,000/- , general expenses is 10% of the gross profit. From the above information calculate:

(a) Cost of goods available for sale

(b) Cost of goods sold

(c) Gross profit

(d) Net profit

(e) Rate of stock turnover

(f) Mark up

(g) Margin

(h) Working capital

(i) Capital employed

(j) Net profit as percentage of sales.

4. (a) Elaborate four benefits that a consumer may derive from advertising.

(b) Mr. Manoti is a shift machine operator at a blanket factory. Describe six disadvantages of his work.

5. (a) (i) What is meant by the Wholesaler?

(ii) Briefly explain the term bill of exchange.

(b) Explain eight functions of wholesalers.

6. (a) Describe five advantages of a retailer refusing credit sales to his customers. (b) Explain five reasons behind consumers’ protection.

SECTION C (40 Marks)

Answer two (2) questions from this section.

7. (a) What is meant by the Public Corporations?

(b) Public Sectors are important to a developing country like Tanzania. Using concrete examples give five arguments to support that statement.

(c) How does a retailer selling a pair of shoes assist in the process of production? Give four points.

8. (a) Discuss five qualities of good money. (b) Elaborate five functions of money.

9. (a) Discuss eight possible causes of change in supply curve of a commodity.

(b) (i) Sketch a diagram which shows an increase in supply. (ii) Sketch a diagram which shows a change in quantity supplied.

10. (a) Evaluate six benefits of marketing to a developing country. (b) Explain three problems faced by home trade.

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