TIME 3 Hours Friday 23 September 2022 p. m 


  1. This paper consists of section 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. Section A carries twenty (20) marks, sections B fifty (50) marks and section C carries thirty (30) marks
  4. Communication devices and any unauthorized materials are NOT allowed in the examinations room
  5. Write your Examination Number on every page of your answer booklet(s)


Answer all questions in this section.

1. For each of the items (i) – (xv), choose the correct answer from among the given alternatives and write letter besides the item number in the answer booklet/sheet provided.

 (i) Suppose you are at home during the holiday, your Mother has asked you about the best meaning of commerce, which of the following is the best response that you could give her?

  1. Commerce deals with exchange of goods and services outside the country
  2. Commerce deals with distribution of goods to final users.
  3. Commerce deals with exchange of goods and services inside the country
  4. Commerce deals with exchange and distribution of goods and services
  5. Commerce means exchange of goods for goods

(ii) Amina sells juice in small quantities to final consumers after buying them in reasonable quantities from wholesalers, therefore Amina is a

  1. Wholesaler
  2. Retailer
  3. Consumer
  4. Manufacturer
  5. Producer

(iii) Meshaki is Tanzanian business who goes to Dubai to buy clothes with the aim of re-exporting. Therefore. Meshaki is a

  1. Exporter
  2. Importer
  3. Retailer
  4. Wholesaler
  5. Interposer

(iv) Mr. Drogbaimported furniture from Japan but did not pay import duty in the port authority. The port authorized and kept the furniture in the place called.

  1. Private warehouse
  2. Public warehouse
  3. Port warehouse
  4. Land warehouse
  5. Bonded warehouse

(v) Mrs.Samwel total sales during the year 2020 was Tsh. 160,000/= If profit was 20% of sales. What was the cost of goods sold during the year?

  1. Tshs.128,000/=
  2. Tshs. 160,000/=
  3. Tshs. 16,000
  4. Tshs. 126,000/=
  5. Tshs. 32,000/=

(vi) The ore, bulk or oil carriers which uses different holds to transport a mixed cargo at the same time though water transport are known as

  1. Bulk carriers vessels
  2. Chartered vessels
  3. Liner’s vessels
  4. OBO vessels
  5. Container vessels

(vii) While viewing football match via television, Wilson saw advert about comfy mattress saying only caring parents buy for children, which method of appeal has been used in such advert?

  1. Social responsibility
  2. Prestige
  3. Gender
  4. Responsibility
  5. Health

(viii) The price quotation that includes all costs to the port of destination plus unloading charges,

  1. CIF
  2. Carr. Fwd
  4. Loaded
  5. In bond

(ix) E & O.E is an abbreviation included at the foot of an invoice; it stands for

  1. Errors and omission expected
  2. Errors and omission excepted
  3. Errors and Omission accepted
  4. Errors and omission of erroneous consumers
  5. Errors and omission examined

(x) The source of finances that derived from within an organization through accumulating profit is called

  1. Factoring
  2. Trade credit
  3. Fundraising
  4. Retained earnings
  5. Share capital

(xi) Jembe, Malima and Mtani Jembe were discussing about ways of classifying goods. What do you think should be the correct response;

  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

(xii) You are an expert of commerce and someone needs to know the correct form of transport, what should be your presentation to them?

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

(xiii) Which bank accounts will you advice a trade to open if he/she want to deposit/withdraw cash at any time and allow overdraft to its customers?

  1. Joint account
  2. Fixed account
  3. Saving account
  4. Current account
  5. Salary account

(xiv) Simba cement company Ltd has been advertising its product for almost twenty years now. It is obvious that a good number of people have already received the required information regarding the product offered, the company is still keeping on the advertising the product in order to;

  1. Persuade the customers
  2. Bridge the gap between producer and consumer
  3. Inform the public about the product
  4. Retain the market
  5. Make profit

(xv) Tanzania is one of the third world countries. It imports more than what it exports. Therefore, Tanzania has;

  1. Favourable balance of payments
  2. Favourable balance of trade
  3. Unfavourable balance of payment
  4. Unfavourable balance of trade
  5. Terms of trade

 2. Match the descriptions of types of tax in Column A with the corresponding terminology in column B by writing the letter of the correct terminology besides the item number.

Column A

Column B

(i) These are the tax by companies. For example bonite bottlers limited company

(ii) These are tax assessed and collected by the local authorities. For example municipal and district council

(iii) These are tax imposed on the properties which has increased its value when sold

(iv) These are tax imposed on the wealth of a person at the time of death

(v) A tax used to discourage consumption of harmful products like beer and cigarettes.

  1. Property tax
  2. Corporation tax
  3. Surtax
  4. Estate or death duty
  5. Capital gain tax
  6. Octoroi tax
  7. Sumptuary tax
  8. Graduated tax
  9. Value added tax


Answer all questions in this section.

3. It is urged that the evolution of money (currency) has increased social problems in the societies like corruption, inflation and classes of people. By using five (5) points argue against this statement.

4. Most small scale retailers closes their business after short period of operation, as a business expert use five(5) points to advise them how to retain their business for long time.

5. A manufacturer wishes to introduce a new washing soap. State with reasons the factors he would consider when choosing the appropriate medium of advertising (five points)

6. Assume that your house is situated neat a major road and it is assured against fire; an oil tanker passing by happen to overturn near you house and catches fire which burn down your house. Explain the steps to be taken so that you may be compensated house.

7. It is urged that increase in population is the only factor for the development of commerce in Tanzania. As a commercial expert argue against this statement by giving out five points.

SECTION C (30 marks)

Answer two (2) questions from this section.

8. Assume that your brother is brother is operating a small business as sole proprietor. He intends to expand his business; has approached you for an advice. As a commercial expert advise him five ways of raising additional capital.

9. Mr Hillarious is a business man who conducts his business activities between Tanzania and Rwanda. He wants to transport his goods from Arusha Tanzania to Kigali Rwanda but he doesn’t know which mode of transport is the best to him, as a commercial expert advise him the factors to be considered before choosing the best mode of transport (five points)

10. Your debtors paid you a crossed cheque, on presenting it to the bank counter for payment the bank clerk made the following comments. “The draw has sufficient funds but I am sorry we cannot cash it”

  1. Explain possible (50 reasons for such comments
  2. What steps would you take to make sure that the cheque is paid?




(For Both School and Private Candidates)

Time: 3 Hours Friday, 9th September 2022 a.m.


  1. This paper consists of sections A, B and C with the total of ten (10) questions.
  2. Answer all questions in sections A and B, and two (2) questions from section C.
  3. Section A carries twenty (20) marks, section B carries fifty (50) marks and section C carries 30 marks.
  4. Cellular phones and any unauthorized materials 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) – (xv), choose the correct answer from among the given alternatives and write its letter beside the item number in the answer booklet(s) provided.

(i) Sita bought a car on installment bases in spite of paying a down payment, a car seller did not provide Sita with car ownership until he paid the last installment. Which system of installment was applied under this transaction?

  1. Differed payment
  2. Hire purchase
  3. Deferred payment 
  4. Credit payment
  5. Bank payment.

(ii) After finishing form four, you were admitted as a partner in a family business. You contributed capital, shares profits of the partnership but you did not participate in the dayto-day management of the business. You can be described as what type of partner?

  1. Minor partner
  2. Dormant partner
  3. Quasi partner
  4. General partner
  5. Major partner.

(iii) Suppose after two years you planned to engage in cultivation of cotton and maize for sale within and outside your country. Which level of production does your business belong?

  1. Direct production
  2. Indirect production
  3. Tertiary production 
  4. Primary production 
  5. Secondary production.

(iv) A business plan is an important document needed by various parties inside and outside the organization. Which among the following does not indicate the really purpose of a business plan?

  1. To attract investors to the business
  2. To identify the correct way to carry on the business
  3. To secure additional capital for the business 
  4. To predict the future decline of the business
  5. To identify the extent of the market.

(v) Kanji of Zambia is a trader selling second hand clothes that normally buy them from China and selling them in Zambia. Which form of trade is conducted by him?

  1. Import trade
  2. Export trade
  3. Home trade
  4. Wholesale trade
  5. Retail trade.

(vi) Mr. Chuya fears to establish a business firm due to various uncertainties like fire and theft. Advise him on an aid to trade which can help him to restore his confidence and concentrate on business without any fear:

  1. Banking
  2. Marketing
  3. Insurance
  4. Warehousing
  5. Transportation.

(vii) The growth of trade and commerce in Tanzania has been contributed by many factors. Which among the following factors did not play such a role?

  1. Increase in population
  2. Growth of banking system
  3. Growth of technology
  4. Specialization of labour
  5. Production of standard goods.

(viii) “Buy one get one” was a slogan used by Coca Cola Company to encourage customers to buy their products. This form of promotion is known as:

  1. Sales promotion
  2. Public relation
  3. Advertising
  4. Personal selling 
  5. Promotional mix.

(ix) A warehouse owned by Zaka for his personal use, sometimes allows other people to store their goods and pay storage fee. This type of warehouse is referred to as:

  1. Bonded warehouse
  2. Public warehouse
  3. Manufacturer’s warehouse
  4. Wholesaler’s warehouse
  5. Private warehouse.

(x) Due to the impact of COVID-19, the price of fuel continues to rise every year. What will be the impact of a demand for cars due to that effect of price of fuel?

  1. Demand for cars will rise
  2. Demand for cars will remain the same
  3. Demand for cars and fuel will both rise 
  4. Demand for car and fuel with both decline
  5. Demand for cars will decline.

(xi) A document prepared by one company or organization to another on account of an event which gives out the results of an investigation and recommendation is known as:

  1. Minutes
  2. Reports
  3. Telegram
  4. Memo
  5. Letter.

(xii) Zika is a Tanzanian who established a money transfer application which was not there before. The machine facilitates the transfer of money between different countries around the world. Zika’s creativity is referred to as:

  1. Extension
  2. Innovation
  3. Invention
  4. Duplication
  5. Synthesis.

(xiii) Mrs. Kachiki as a house wife prepared a fresh fruits juice for her kids consumption. In which type of production does the activity done by Mrs. Kachiki belong? 

  1. Direct production
  2. Indirect production
  3. Personal services
  4. Primary production 
  5. Tertiary production.

(xiv) Mtu owns a store in Arusha. His friend visited him and found him checking and keeping a record of the number of items in stock and their values. Which stock administration function was Mtu performing?

  1. Placing of items
  2. Care of stock
  3. Stock control
  4. Stock taking
  5. Stock valuation.

(xv) Jongo has entered into a hire purchase agreement to buy a computer from a retail store over a two years period. When will he become the legal owner of the computer?

  1. After paying installment for one year
  2. Before paying installment for one year
  3. At the end of the two years installment period 
  4. Before the end of the two years installment period
  5. When the store receives his deposit.

2. Match the descriptions of the types of goods in column A with the corresponding type of goods in column B by writing the letter of the correct response beside the item number in your answer booklet.



(i) Are the goods which are used by consumers to satisfy their needs directly

(ii) Are the goods which are used to produce other goods

(iii) Are the goods which are available for any one to use, regardless of who pays and who does not pay

(iv) Are the goods which are freely available by nature and in abundance

(v) Are the goods which last for a long period of time without being destroyed

  1. Free goods
  2. Perishable goods
  3. Producer goods
  4. Consumer goods
  5. Durable goods
  6. Public goods
  7. Private goods

 SECTION B (50 Marks)

Answer all questions in this section

3. Gora has inherited a substantial amount of money and would like to set up a business. Explain to him five (5) factors he should take into consideration in deciding which business units to take.

4. Your house which is situated near the major road is insured against fire which may arise from within. Describe the steps that you should take in seeking compensation in the event of accident.

5. You have been employed by SBT Japan to assist the company in importation of raw materials. Explain five (5) documents that you will use while conducting your duties.

6. Various countries impose different forms of direct taxes to its citizens to generate revenue so as to fund its running expenditure. Identify five of them imposed in Tanzania.

7. (a) You have been employed as a marketing Manager by Samsung Company. Give three reasons why you should continue advertising company’s products which are already in the market?

(b) Explain two benefits that a company expects from continuing to advertise.

SECTION C (30 Marks)

Answer only two (2) questions in this section

8. Before Juma a businessman decides on the methods of transport to be used in delivering goods to his customers, he must consider number of factors concerned with transportation. Describe those factors. (Six points)

9. Jio received his pension fund from NSSF this year and he is planning to start a business. Suggest to him six (6) preliminary activities that he should conduct before starting his business.

10. Tisu and Tusa are leading business partners in your community. They pay most of their creditors through cash despite being too risk. As a commercial student elaborate how they can overcome those risks by using cheque. Give five (5) points.





TIME : 3 Hours July 2022


1. This paper consists of section A, B and C with a total of ten (10) questions

2. Answer all question in section A and B and only two questions from section C

3. Section A carries twenty (20) marks, section B carries fifty (50) marks and section C carries thirty (30)marks

4. Communication device and any unauthorized materials are not allowed in the examination room

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

SECTION A (20 Marks)

Answer ALL questions in this section

1. Choose the correct answer from the alternative given and write its letter beside; -

(i) ABC Co. Ltd is the main producer of plastic plates in Arusha. How best can we classify goods produced by ABC co. Ltd?

  1. Producer goods and durable goods
  2. Producer goods and Perishable goods 
  3. Consumer goods and durable goods
  4. Consumer goods and Perishable goods
  5. Manufactured goods

(ii) A Cheque which is presented to the bank before the date is called

  1. Dishonored Cheque 
  2. Postdated Cheque 
  3. Crossed Cheque 
  4. Open Cheque 
  5. State Cheque 

(iii) Series provided by the teachers,lawyers and police can be classified as:

  1. Auxiliary series 
  2. Indirect Services
  3. Public services
  4. Direct services 
  5. Personal services 

(iv) "The higher the price the lower the quantity demanded and the vice versa" According to this law of demand what factor influences the buying decisions?

  1. Level of demand 
  2. Preference and tastes 
  3. Price of related community
  4. Price of the commodity 
  5. Economic level of a person 

(v) Ms He1len wishes to purchase life assurance policy from Zanzibar lnsurance Cooperation where she can pay a premium for a specified number of years. What policy would you advise her to purchase?

  1. Endocument policy 
  2. Whole life policy 
  3. Annuity policy
  4. Group life policy 
  5. Fidelity policy 

(vi) Transport is one of the very important aids to trade as it provides a link between producer and the market for their production. As an expert provide the main form of transport.

  1. Land,air and Ocean 
  2. Air, land and land 
  3. Water, air and land
  4. Road, Railway and pipelines 
  5. Railway, water and land 

(vii) In Tanzania today many businessmen have conflicts with Tanzania Revenue Authority (TRA) concerning the use of Electronic Fiscal device (EFD) Machine despite ofits important in the business practice to both. As an expert what do you think can the government benefit from the use of EFD machine?

  1. The government can collect more tax than it should
  2. Enable the government to obtain income from selling those machine
  3. It can be used to transmit only sales record to the government authorities like TRA automatically.
  4. Enable the government to collect the correct amount of tax 
  5. Help the government to trade the businessmen

(viii) From a case of question number (vii),what benefit can business men get from using EFD machine?

  1. It helps to reduce tax burden to them
  2. It helps them to pay less amount of tax
  3. It helps them to get more profit from their business
  4. It helps them to get tax exemption
  5. It helps them to get sales record of the business

(ix) Kingo is the famous businessmen in Tanzania. He used to buy cars from Japan and sell them to individual customers in Tanzania. What is the best term describing the activity done by Kingo?

  1. Importer 
  2. Export trade 
  3. Import trade 
  4. A trader
  5. Home trade   

(x) Considering a case of question number (ix), what is the best term describing cars imported from Japan?

  1. Imports 
  2. vehicles 
  3. Japan's cars 
  4. Exports
  5. Foreign trade 

(xi) You are provided with the following sets of retailer, which set represents large scale retailer?

  1. Single shops, Multiple shops and departmental stores
  2. Tied shops, single shops, Hyper market
  3. Mobile shop,departmental stores, super markets 
  4. Multiple shops, departmental stores, supermarkets
  5. Super markets, Multiple shops, Tied shop.

(xii) Utalii College is the best provider of tour guide course in Tanzania. Which level of production activity does by Utalii College fulfill?

  1. Primary level 
  2. Tertiary level 
  3. Secondary level
  4. Direct level 
  5. Indirect level

(xiii) Kishoi and her family grow vegetables for their home use. What type of production done by this family?

  1. Direct production 
  2. Indirect production 
  3. Primary production
  4. Secondary production 
  5. Tertiary production 

(xiv) Bilateral trade in international trade means;

  1. A country involves in the trade with two countries only
  2. A country involves in the trade with many countries
  3. A country involves in the trade with only one country 
  4. A country does not involve in international trade 
  5. A country involves in international trade.

(xv) An entrepreneur who works while thinking of increasing sales for 10% in to two years is assumed to be in a right track. What characteristics do you think this entrepreneur has? 

  1. A rise taker 
  2. Self— confidence 
  3. Goal oriented
  4. Creative 
  5. Flexibility

2. Match the explanation of the international trade documents in column A with the documents names in column B by writing the letter of the correct answer beside the item number.



(i) A document used to inspect the quality and the prices of the goods before it had been dispatched to other country

(ii) A document which allows the bank to pass and sell the goods imported so as to recover the debt.

(iii) A document that show an agreement between the exporter and the slip owner to carry goods to their destination

(iv)The document that show the country where goods have been manufactured.

(v) A document which informs the exporter about the date at which goods will be at the port ready for lading

  1. Letter of credit
  2. Bills of lading
  3. Dock warrant
  4. Bank draft
  5. Consular invoice
  6. Certificate of original
  7. Indent

SECTION B (50 Marks)

Answer ALL Questions In This Section

3. Differentiate the following commercial terms

(a) Business and commerce

(b) Oral communication and written communication

(c) Trade and aids to trade

(d) Fax and internet

(e) International trade and export trade.

4. "A country whose people have entrepreneurship knowledge is likely to have quick economic development" Explain five importance of entrepreneurship which reflect the above statement.

5, The coffee producer from Mtakuja village they have decided to build a warehouse this year (2022) as they expect to have more harvests than the previous years. As one of the committee member what essential factors would you advice to be considered when choosing allocation for constructing a warehouse? (Give five of them).

6. In 2022 Tanzania like any other country in the world is affected by high prices of petroleum product. This cause the price of goods and services to increase. The government announces that;it is the causes of war in Ukraine. However, the public complain that, war is not the main cause rather than high rate of taxes on the products. They asked the government to remove those taxes of which is very difficult. What type of taxes is imposed in petroleum product? Describe four advantages of such a tax.

7. (a) In the current years A- Y Ltd face a dramatic fail of its sales. The management is Malang a research to know what might be the cause. As a commercial expert help them to know four of the factors that might be the cause.

(b) From the following demand and supply schedule for sugar, draw up a combined demand and supply curves. Clearly show / Indicate equilibrium point. equilibrium price and equilibrium quantity.

Quantity demanded (kg)

Quantity supplied (kg)

Price (TZ)





















SECTION C (30 Marks)

Answer TWO questions from this section

8. In the modern business, communication becomes one of the important tools to ensure effective and efficient use of human resource in the business firm as item provide harmony working environment. However, it is not always possible to have effective communication in the firm. Describe at least six barriers to effective communication.

9. Many with money (currencies) from one point to another during any business activity increases the risks of the money to be stolen. This makes businessmen shift from using cash payment to other means of payment which are move safe. Identify any six means of payment commonly used in Tanzania today

10. Many businessmen in Tanzania are shifting from running the business inform of sole proprietorship to a company due to many benefits associated with company over sole proprietorship. Analyze at least five advantages of company over proprietorship.






TIME:3 HOURS 05/07/2022


l. This paper consists of sections A,B and C with total of 10 questions.

2. Answer all questions in section A and B and any TWO questions from section C.

3.Communication devices and any unauthorized materials are not allowed in

examination room.

4. Write your examination number in every page of your answer booklet(s).


Answer all questions in this section

I .For each of the items (i) — (xv), choose the correct answer from among the given alternatives and write its letter beside the item number in the answer booklet provided.

(i) By being a form four students of 17 years old, you want to be admitted in one of the partnership dealing with selling of books. In which type of partners would you fit?

  1. Dormant partner
  2. Quasi partner
  3. Active partner
  4. Minor partner
  5. General partner

(ii) Suppose you are self-employed in carpentry activities but you have spent two days to produce dining table for your family; in which category does the production of such table be grouped?

  1. Tertiary production
  2. Indirect production
  3. Direct production
  4. Direct services
  5. Indirect services

(iii) Which method would Tanzania adopt if she wants to completely restrict importation of sugar from Zambia?

  1. Imposing heavy import duties
  2. Total ban
  3. Provision of custom drawback
  4. Using government agencies
  5. Fixing import quotas

(iv) Mpopo is a large scale retailer who wants to identify the fast moving goods in his business. Which stock calculation will Mpopo apply to arrive at correct identification?

  1. Average stock
  2. Mark up percentage
  3. Cost of goods sold
  4. Margin percentage
  5. Rate of stock turn

(v) Some entrepreneurs debated that internal motivation in entrepreneurship is wastage of resources. Which statement evidences that internal motivation is an important aspect in entrepreneurship?

  1. It creates employment opportunity to workers
  2. It reduces regional development imbalance
  3. It stimulates employees to accomplish the desired goals
  4. It assists decision making in a business
  5. It encourages consumption of local resources in production

(vi) Which of the following would you use to send fresh fruits and vegetables from Arusha to Canada as an exporter from Tanzania?

  1. Water transport
  2. Road transport
  3. Railway transport
  4. Pipeline transport
  5. Air transport

(vii) Self-services is a common feature of a

  1. Chain store
  2. Single shop
  3. Supermarket
  4. Tied shop
  5. Multiple shop

(viii) The following are factors to be considered when selecting a channel of distribution EXCEPT:

  1. Nature of product
  2. Nature of market
  3. Nature of middlemen
  4. Nature of entrepreneur
  5. Nature of competition

(ix) Are warehouses which are owed by the government and. individual and to anyone wishing to hire them for a certain charge.

  1. Bonded warehouses
  2. Private warehouses
  3. Wholesalers warehouses
  4. Retailers warehouses
  5. Public warehouses

(xv) The safety means of payment that is being recommended to businessmen is by:

  1. Cheques
  2. Bank draft
  3. M-pesa/Airtel money a
  4. Computers
  5. Cash

2. Match the following items by writing the letter of the correct meaning from list B against the number of item in list A



i) The name, mark, symbol or sign given to a product with the aim of identifying the product and differentiate it from the competitor's product

ii) Involves anything that can be offered in the market for attention, acquisition or use, normally involves goods or services

iii) A part of brand which is given legal protection but it is capable of exclusive appropriation

iv) A part of brand which can be pronounced when a buyer orders for a product.

v) Refers to the exclusive legal rights to reproduce, publish and sell product in the form of literacy or artistic work.

  1. Brand name
  2. Copy rights
  3. Brand
  4. Products
  5. Trade mark
  6. Branding
  7. Symbols
  8. Market research
  9. Standardizing
  10. Marketing Mix

(SECTION B 50 Marks)

Answer all questions

3. Mr. Kazimoto plans to establish fish industry in Mwanza city, but he is worrying on how to raise capital for his business. Briefly explain to him any five (5) possible sources of capital.

4. For a foreign business communication to be effective, there must be clear understanding between the communication parts. Briefly explain five (5) barriers to effective communication.

5. (a) Draw the supply curves to show an increase in supply of maize and state the effect of an increase in supply on equilibrium prices and equilibrium quantity.

(b) Draw the supply curves to show a decrease in supply of maize and state the effect of a decrease in supply of maize on equilibrium prices and equilibrium quantity.

6. Storage facility is one of the problems facing mobile shop traders in Tanzania. The solution towards this problem is to hire a space in private warehouses. Briefly elaborate to the four types of private warehouses and advise them the one which is suitable for their business

7. The following information was extracted from the books of Nyakamande a wholesaler for the financial year ending 3 1 st May 2020.

Closing stock



Gross profit



Net purchase



Cost of goods sold



Cash in hand



Calculate the following:

(i) Opening stock

(ii) Net sales

(iii) Average stock

(iv) Rate of stock turn

(v) Margin as percentage


Answer only TWO (2) questions in this section.

8. A good transport facility in business is regarded as blood vessels in the human body. Justify this statement with six importance of a good transport facilities in business.

9. Management in all business and organizational activities is the act of coordinating the effort of people to accomplish the desired goals and objectives using available resources efficiently and effectively. As a commercial student explain five (5) importance of management

10. Suppose your name have been shortlisted by SIDO (Small Industries Development Organization) as a job applicant under research and development department. An interviewer asked you to explain the contributions of innovation towards business success. What would be your response? (give six points).






Time: 3 Hours        April 2021


  1. This paper consists of three sections A, B and C with a total of 10 questions.
  2. Answer all questions in section A and B and only two (2) questions from section C.
  3. Non programmable calculators may be used.
  4. Cellular phones, calculators and any unauthorized materials are not allowed in the examination room.
  5. Write your examination number on every page of your Answer booklet(s).


 Answer all questions from this section

1. For each of the items (i) – (xv) choose the correct answer from among the given alternative and write its letter beside the item number on the answer sheet provided

(i) Mr. Charles Lugolola is a trader selling second hand clothes that normally buying them from Dubai and selling them Dar es salaam-Tanzania. Which type of trade Mr. Charles Lugolola conducting?

  1. Retail trade 
  2. Export trade 
  3. Wholesale trade 
  4. Import trade 
  5. Home trade

(ii) Which is the correct reason for the movement along the demand curve?

  1. Change in taste and fashion
  2. Change in people’s level of income
  3. Change in the price of the commodity
  4. Change in the demand of the other goods
  5. Change in the value for money

(iii) Martine was complaining that he was one among the lower income earners but his salary is always been deducted more than higher income earners. Which do you think is the method that has been used by his institution to deduct his salary?

  1. Progressive taxation method
  2. Regressive taxation method
  3. Indirect taxation method
  4. Proportional taxation method
  5. Poor taxation method

(iv) Ms. Neema is a retailer with her retail shop in Dodoma town. She took insurance cover of her pick-up that she always uses to collects her goods from the wholesalers’ warehouses. One day she got fire accident in her shop. She went to claim for compensation but the insurer refuses to do so. Which principle of insurance has been used by insurer to refuse to compensate her?

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

(v) Which one among the following is the correct classification of warehouses?

  1. Private warehouse, bonded warehouse and wholesalers warehouses
  2. Bonded warehouse, private warehouse and retailers warehouse
  3. Public warehouses, private warehouses and bonded warehouse
  4. Public warehouses, bonded warehouses and producers warehouses
  5. Wholesalers warehouses, retailers warehouses and manufacturers warehouses

(vi) If there was a farmer who had wheat and wanted salt he had to find one who had salt and wanted wheat, this is an example of:

  1. Difficult in transporting immobile items.
  2. Invisibility of some items.
  3. Lack of store of value.
  4. Need of double coincidence of wants.
  5. Lack of measure of value.

(vii) Which of the following is not a feature of free goods?

  1. They are not scare
  2. They are not produced by human effort
  3. They are not transferable in terms of ownership
  4. They lack exchange value
  5. They are transferable in terms of ownership

(viii) Nearly every journey involves junctions where we can transfer from one form of transport to another, in this case we are referring to:

  1. The way
  2. The unit of carriage
  3. The terminal
  4. The unit of propulsion
  5. None of the above.

(ix) All the qualities of good money are important, but the most important quality of good money is:

  1. Durability
  2. Divisibility
  3. Portability
  4. Cognisability
  5. General acceptability

(x) The following statements are true of a bill of exchange which one is not?

  1. It must be signed 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 must be unconditional

(xi) The surrender value of a life assurance policy is

  1. A penalty payable to the insurance company because of late payment of the premium
  2. The minimum value of an insurance cover in order to be acceptable by the insurance company
  3. The amount a person surrenders when his policy expires
  4. The amount a person will receive if he cashes his life assurance policy before the date of its maturity
  5. The actual amount paid by the insurance company in case of a motor accident

(xii) The process of giving a particular name to a product is called

  1. Pre-packaging
  2. Trade naming
  3. Pre-packing
  4. Branding
  5. Retailing

(xiii) A delcredere agent

  1. receives longer credit terms from his principals in consideration of higher trade discount
  2. Obtains higher commission as he guarantees payment for goods sold on behalf of his principals
  3. Handles only imported goods of high standing
  4. Receive longer credit terms from his principals in consideration of lower trade discount
  5. Is given credit from his principals but himself sales only by cash

(xiv) Aids to trade may be defined as the activities aimed at

  1. Assisting the consumers directly
  2. Making the work of those involved in manufacturing of essential goods easy
  3. Helping producers directly
  4. Bridging the gap between the producer and a consumer
  5. Helping retailers directly

(xv) If Tanzania exports more goods to Rwanda than she imports from the same country, her

  1. Overall balance of trade is favourable
  2. Balance of trade with Rwanda is favourable
  3. Balance of trade with Rwanda is unfavourable
  4. Balance of payments is bound to be favourable
  5. Balance of payments with Rwanda is bound to be favourable
  1. Match the items of list A with the corresponding items in list B by writing the letter of the correct item in the space provided



  1. Low-income individuals paying a higher percentage of their income on taxes than high-income individuals.
  2. Payment made by users of public services on government cost sharing in health and education.
  3. The tax for the company operations.
  4. Tax determined on the basis of the value of goods.
  5. Penalties imposed by government against law breakers.
  1. Corporate taxes
  2. Indirect Tax
  3. Direct Tax
  4. Fees
  5. Foreign Investment
  6. Ad valorem duty
  7. Fines
  8. PAYE
  9. Progressive Tax
  10. Regressive Tax


Answer all questions from this section

3. Given the following information

Opening stock …………………………………………………. Tsh 120,000

Net purchases ………………………………………………….. Tsh 150,000

Closing stock ………………………………………………….. Tsh 100,000

Net sales ……………………………………………………… . Tsh 300,000

Compute the following

  1. Cost of goods sold
  2. Gross profit
  3. Gross profit margin
  4. Gross profit mark up

4. What do you understand with the following?

(a) Management

(b) Amalgamation

(c) Quasi partner

(d) Co-operative society

(e) Prospectus

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

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

6. You have been appointed as manager of Twiga cement Company in Tanzania, this comes as the strategy to improve the performance of the company following its failure to meet their pre-determined goals, with five points explain what you will do to realize good standard of service of your company

7. (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.


Answer two question form this section

8. (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 dishonor a cheque even if the drawer has enough money in his account.

9. There those people who do not buy or sell goods but offer services which facilitate trade. Without such services there would be hindrances in the exchange of goods. With the help of such services there is a continuous flow of exchange of goods and service which helps in the distribution of goods. Basing on this statement explain six auxiliary services in commerce.

9. Mr. Araphat is struggling to start business in Dodoma City, he is very much motivated to start business as he find large number of people from different regions in the country move to the capital city, to him this is a big opportunity. He has identified five potential businesses which he is capable of dealing with, however capital is the big problem to him, as an expert advises him on how to get rid to his problem.





Time: 3:00 Hrs Friday 7, August 2020 pm


  1. This paper consists of section A, B and C with a total of ten (10) questions.
  2. Answer all questions in section A and B and two 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 sheets.

SECTION A, (20 Marks)

Answer all questions in this section

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

i. An overdraft 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 falls below the specified amount
  5. A current account shows larger amount of withdrawals than deposit

ii. Which one of the following 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. C 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. Traveler’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 which 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 saving 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 balanceof

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

xi. A marketing board is a board set up to

  1. Advise cooperatives 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

xii. 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

xiii. 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

xiv. One method of discouraging imports is to

  1. Remove tariffs system 
  2. Encourage free trade
  3. Impose high taxes on exports 
  4. Remove tax on import
  5. Impose high tariffs on import

xv. The term “ Legal Tender “ means

  1. The form of money that a creditor must accept from a debtor in settlement of a debt
  2. A right to supply goods to an institution for a period of time
  3. A lawyer can pay money legally to his client
  4. The form of money that a creditor has a right to refuse in settlement of a debt
  5. The right to make settlement on any unpaid debts

2. Match the item in column “A” with the responses in column “B” by writing the letter on the correct response beside the item number.



i. Document issued by an airline company to act as a contract of carriage by the airline company and contract to pay freight charges by the sender of goods.

ii. Document issued by insurance company after the payment of the premium by the insured.

iii. Tax levied on import or export.

iv. The document clearly states the rules and regulations that guide the internal operation of the company.

v. Document that empowers the public limited company to start operating.

  1. Cover note
  2. Memorandum of association
  3. Article of association
  4. Proposal form
  5. Import and export tax
  6. Certificate of trading
  7. Freight charges
  8. Certificate of incorporation
  9. Customs duty
  10. Airway bills

SECTION B, (50 Marks)

Answer all questions in this section

3. You have been invited in a seminar about Taxation conducted by Tanzania Revenue Authority. The main theme of the seminar is “the effects of taxation” at the end of the seminar, you will be required to present to your fellow students the positive and negative effects of taxation in an economy. Summarize your presentation by showing the:-

  1. Three positive effects of taxation and
  2. Two negative effects of taxation

4. Write short notes on the following terms;

  1. VAT
  2. Taxation
  3. Regressive tax system
  4. Progressive tax system
  5. Joint demand

5. Write short notes on the following items

  1. Money
  2. Banking
  3. Marketing
  4. Parastatals

6. Can we eliminate the wholesaler? Give five reasons to support your answer.

7. (a) What is cheque?

(b) Give four reasons for a cheque to be dishonoured

SECTION C, (30 Marks)

Answer two (2) questions from this section

8. Why is it necessary for a country to be as self-sufficient as possible?

9. Give reasons why taxation is compulsory in our country.

10. a) Explain the factors to be considered when identifying a business opportunity.

b) Explain five business opportunities which are more profitable in Tanzania.


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