PRESIDENT’S  OFFICE, REGIONAL ADMINISTRATION

AND LOCAL GOVERNMENT

SECONDARY EXAMINATION SERIES

COMPETENCY BASED SERIES

COMMERCE FORM FOUR

MID-TERM EXAMS – AUGUST – 2023

Instructions

1. This paper consists of three sections A,B and C with a total of eleven (11) questions. 

2. Answer all questions in section A and B and two (02) questions from section C 

3. Section A carries sixteen (16) marks, section B fifty four (54) marks and section C carries thirty (30) marks 

4. Cellular phones and any authorized materials are not allowed in the examination room 

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

SECTION A (16 Marks) Answer all questions in this section

1.      For each of the following items (i) to (x) choose the most correct answer from among the given alternatives and write the alternatives in the answer sheets provided.

i.          A mother owned a tailoring market and she is a tailor too. In which level of production is the activity performed by mother categorized?

A.   Primary activity

B.   Extraction activity

C.   Tertiary activity

D.   Secondary activity

E.   Constructive activity

ii.        Mr. Sulley  Muntary made a hire purchase contract for a sumsung T.V from SEHEWA ELECTRONICS PRODUCTS SHOP for Tsh. 860,000. He makes a down payment of Tsh. 460,000 and promise to pay the balance within 30

days. After the down payment Mr.Sulley Muntary obtains;

A.   Possession but not ownership of the TV

B.   Ownership but not possession of the TV

C.   Ownership and possession of the TV

D.   Neither ownership nor possession of the TV

E.   Possession or ownership of the TV

 iii. The persistence rise in the general prices and a consequent   fall in the purchasing power of money;

A.   Disinflation

B.   Inflation

C.   Deflation

D.   Devaluation

E.   Reflation

 iv.  Why face to face business communication is advantageous to both retailer and final customers?

A.   There is no need of keeping record of the message communicated

B.   It provides immediate feedback on the message communicated

C.   It reduces unnecessary noise between the sender and the receiver

D.   It promotes trust worth between the sender and the receiver

E.   The message communicated cannot be distorted

v.     A principle of insurance where the insured must suffer the final loss is called?

A.     Utmost good faith

B.     Subrogation

C.    Incurable interest

D.    Indemnity

E.     Proximate course

 vi. A consignment of goods was invoiced at Sh 80,000 at a trade discount of 5% and a cash discount of 3%. What was the amount payable to the seller? A.  2,280

B.   6,400

C.   73,600

D.   73,720

E.   76,000

 vii. In every July, each year there is Sabasaba trade fair show in Dar-es Salaam, What is the purpose of that;

A.   Reduce price of food

B.   Reduce selling expenses

C.   Create market for goods

D.   Discourage customers from buying imported goods

E.   Extend goods near to the customers

 viii. One of the following methods can be used by a drawer to make several payments using one cheque;

A.      Credit transfer

B.      Standing order

C.      Money order

D.      Postal order

E.      Bank draft

 ix.       When a demand for a given commodity is said to be elastic?

A.   A change in demand is equivalent to change in supply

B.   A slight change in price gives a big change in quantity demanded

C.   A change in price leads to change in demand

D.   A change in price does not lead to significant change in demand

E.   At a constant price demand change

x.   K. Buta had an opening stock of 20,000/= and closing stock of 25,000/=. His net purchases for the year amounted to 150,000/=.What was the cost price?

A.   180,000

B.   145,000

C.   135,000

D.   147,000 E. 120,000

2.      Match the description of insurance in column A with the appropriate terms in column B by writing the letter of the correct response besides the corresponding item number in the answer booklet provided.

SECTION B (54 Marks) Answer all questions in this section

3.      (a) No one can escape from commerce. This is an indication that commerce is an essential subject to everyone. As a student of commerce give four (4) concrete points to justify the argument

(b)  Labour requires close supervision and human relation to increase its efficiency as they prefer leisure to work. Apply the knowledge you have to explain five (5) factors affecting performance of labour

4.      (a) The shortcomings of the barter trade out weight its significance in commercial activities.   With examples, explain the statement (five points)

(b)  Specialization and division of labour plays an important role in the industrial production, yet they have their flaws. In four (4) points argue in favour of this statement.

5.      Globalization simplifies marketing now people may sell their products without reach to the market place. Why advertisement emphases in a business (five points) 

6.      (a) Change  in the price of beans by 30 percent at Hedaru market lead to an increase in the quantity supply of beans by 70 percent

i.          Calculate price elasticity of beans at Hedaru market

ii.        Interpret the answer in a(i) above

(b)  Mbondii Trader, the following transactions were observed;

Sales 6,000/=; Opening stock 1,500/=; Purchases 2,600/=; Carriage Inwards

55/=; Return Inwards 400/=; Closing stock 1,000/=; Purchases returns 400/=;

Calculate the followings

i.           Cost of sales

ii.         Markup

iii.        Rate of stock turnover

7.      Product differentiation is common in different countries. Due to this fact the exchange of goods and services among countries is inevitable. Discuss (Give five points)

8.      (a) Despite the large number of large scale retailers, there are still growth in small scale retailers in Tanzania. Explain any five (5) factors influencing the growth of retail business in Tanzania

(b)  Organization management which fulfills ethic responsibilities is an asset to the society. Justify this statement by giving four (4) concrete arguments

SECTION C (30 Marks)

Answer only two (2) questions in this section

9.      Justify the reasons to why government of Tanzania establishes Tanzania Revenue Authority (TRA). Give six points

10. JOSA group intend to open micro enterprises after completing their ordinary level education. As an expert advise them on the six (6) necessary skills they will need to have in order to successfully operate their enterprises

11. (a) In spite of Tanzania having a meter gauge railway from Dar Salaam to Dodoma still the government of Tanzania is currently expanding the construction of the standard gauge railway (SGR) to replace the old one. Explain five (5) expected merits of standard gauge railway soon after accomplishment of this project

(b) Most traders prefer written communication compare to oral communication. Why? (Give four points).

PRESIDENT OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM FOUR MIDTERM EXAMINATION MARCH 2023

061 COMMERCE

Time: 2:30 Hours 

INSTRUCTIONS

• Answer all questions in section A and B
• Answer two (2) questions in section C

SECTION A (20 Marks)

1. For each of the following items (i-xv) choose and write the letter of correct answer in the answer sheet(s) provided

1. The term for periodic payment made by the insured to the insurer for cover is

1. Subrogation 
2. premium 
3. insurance cover
4. Sum insured
5.  compensation

2. What will happen, if a price of coffee will rise

1. Its demand will rise
2. Its demand will fall
3. Its demand will remain constant
4. Demand curve will shift to the right of demand curve

3. ABC agricultural product success in advertisement campaign for tea. What could you explain this change

1. The demand of coffee will fall
2. The demand of coffee will rise
3. The demand of coffee will drop
4. The demand of coffee will remain constant

4. Which is the common means of transportation in your country

1. Railway
2.  air
3. water
4. road

5. The document certifies the country in which the goods originated is known

1. The certificate of origin
2. the inspection certificate
3. Commercial invoice
4. consumer invoice

6. Crude oil is normally transported from Ndola Zambia to Dar es salaam Tanzania

1. Sea
2.  road
3. pipeline
4.  railway

7. John is planning to import laboratory equipment from India in the next academic year. These equipments will likely be kept in a customer warehouse until they get cleared. The warehouse where the goods will be kept is known as

1. Bonded warehouse
2. private warehouse
3. Public warehouse 
4. person warehouse

8. When the price of milk rise from Tsh 500 to Tsh 1000, which causes demand to contract from 40 to 50. What type of elasticity of demand is this

1. Elastic
2. inelastic
3. unitary
4. perfect inelastic

9. Magreth is an Accountant at NSSF but at the sametime she is growing vegetable in her small garden. This is the type of

1. Indirect production
2. direct production
3. Direct service
4. indirect service

10. Mr. Ally read an announcement on local newspaper about government grand for small scale retailers. This motivated him to become an entrepreneur. This is an example of

1. Internal motivation
2. grant motivation
3. Subsides motivation
4. external motivation

11. Mlimani city, Uchumi house and Dar free market are example of

1. Hyper supermarket
2. mail order shop
3. Supermarket
4. chain store

12. P. Msukuzi is allowed to access this account while at home and get information from this account. This is an exmple of

1. E-banking
2. E- commerce
3. E- business
4. E – ATM’S

13. If Tanzania export more goods to Uganda than she imports from the same country. This is to say

1. Overall balance of trade is favorable
2. Balance of trade with Uganda is favorable
3. Balance of payment is bound to be favorable
4. Balance of payment with Uganda is bound to be favorable

14. A cheque drawn in favour of kiaruezi makes kiaruzi

1. Drawer
2. drawee
3. payable
4. payee

15. Odilo is a businessman from Tanzania, he wants to open account for this business. Which of the following accounts is suitable for him

1. Saving account
2. fixed deposit account
3. Current account
4.  joint account

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 sheet provided

SECTION B (50 Marks)

3. Write short notes on the following terms

1. Profoma invoice
2. DD (Delivery Dock)
3. Neon signs
4. Email
5. Trade mark

4. You are supplied with the following information for the year ended 31^st Dec 2009

• Average mark up 25%
• Total expenses 24,000/=
• Stock turn rate 5 times
• Sales 72,000/=

Required 

1. Find gross profit
2. Cost of goods sold
3. margin
4. Average stock
5. Net profit

5. Recently in Tanzania the number of unemloyed people is increasing rapidly than previous days inorder to solve this problem. Explain the benefit of self employment to the people of Tanzania.

6. (a) Juma is alone and wishes to start a new business. He is willing to bear the risk and contribute all capital for the business establishment. What type of business is Juma likely to form?

(b) Explain five advantages of the business Juma is likely to form.

7. Magiga is the businessman and has a current account at CRDB bank and is allowed to operate this account through e-banking explain the benefits that he will enjoy by using this service.

SECTION C (30 Marks)

Answer only two questions in this section

8. Mwakipesile is the businessman who lives in Mwanza and he wants to acquire capital from NMB bank. What factors will be considered for Mwakipesile to be granted capital he needs from NMB bank or any other financial institutions in that case.

9. Due to shortage of goods Tanzania had been obtaining goods from other countries to satisfy needs of citizens. Recently production has increased and wants to consume only locally manufactured goods. What measures can government of Tanzania take in order to be successful on this case (five points).

10. Mr. Ally is a new businessman in the field he just started the procedures for registering his new business, but he is reluctant to visit TRA for application of (TIN) Tax payer identification because he is not well informed about the merits of paying tax to the government. As the tax officer advice Mr. Ally why he should register with TRA?

THE PRESIDENT’S OFFICE

MINISTRY OF EDUCATION, REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

COMPETENCE BASED SECONDARY EXAMINATION SERIES

COMMERCE ANNUAL EXAMINATIONS

FORM FOUR-2022

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. Sections A carries twenty (20) marks, sections B fifty (50) marks and section C caries 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)

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/sheet provided.

1. 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

2. 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

3. 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

4. Mr. Drogbaimported furniture from Japan but did not 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

5. 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/=

6. The ore, bulk or oil carries which uses different holds to transport a mixed cargo at the same time through water transport are known as

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

7. While viewing football match via television, Wilson saw and advert about Comfy mattress saying only caring parents buy for their children, which method of appeal has been used in such advert?

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

8. The price quotation that includes all costs to the port of destination plus unloading charges,

1. CIF
2. Car. Fwd
3. FRANCO
4. Loaded
5. In bond

9. 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

10. 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

11. Jembe, Malima and MtaniJembe 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. Producer goods and free goods
4. Producer goods and economic goods

12. 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

13. Which bank accounts will you advice a trader 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

14. Simba cement company Ltd has been advertising its product for almost twenty years now. It is obvious that a good number of people 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

15. Tanzania is one of the third 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.

SECTION B (50 Marks)

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 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 near a major road and it is against fire, an oil tanker passing by happen to overturn near you house and catches fire which burns down your house. Explain the steps to be taken so that you may be compensated your 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 operating a small business as a 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 drawer has sufficient founds 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?

THE PRESIDENT’S OFFICE

MINISTRY OF EDUCATION, REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

COMPETENCE BASED SECONDARY EXAMINATION SERIES

COMMERCE TERMINAL EXAMINATION

FORM FOUR -2022

Instructions

1.    This paper consists of sections A, 13 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, section B fifty (50) marks and section C carries thirty (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.              Mr. Bukaba wants to engage in hire purchase but he does not know its consequences. Identify one consequence that he can face.

1. He can own the property soon after payment of the first installment.
2.  He can own the property soon after payment of the last installment.
3.  Once he failed to pay other installments the seller cannot repossess the goods.
4. Once he failed to pay other installments the seller can repossess the goods.
5.  He can pay all the amount required in cash and possess the property.

2.           Suppose you have been employed in a bonded warehouse and one of the customers needs to collect his car from the warehouse. Which tax would you require the customer to pay before releasing the car?

1.             Property tax 
2.             Export duty
3.             Exercise duty 
4.             Value added tax
5.              Custom duty

3.         Mrs. Makuchi as house wife prepared a fresh fruits juice for her kids' consumption. In which type of production does the activity done by Mrs. Makuchi be grouped?

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

4.         Suppose you are a marketing manager who wants to satisfy the target market at the same time achieves the marketing objectives. Which elements of market mix would you consider?

1.             Branding, grading, standardizing and pricing
2.             Product, price, brand name and promotion
3.             Package, price, product and place
4.             Product, price, promotion and place
5.              Brand name, package, packaging and product

5.            You have learnt about the factors for the change in quantity demanded and the factors for the change in demand. Which factor would you opt for change in quantity demanded?

1.             Change in weather 
2.             Change in fashion
3.             Change in price of a commodity 
4.             Change in technology
5.              Change in price of related commodities

6.         Identify the appropriate international trade term which fit for the following transaction; Tanzania has paid Tsh. 30 million as payment of interest of loan from Canada.

1.             Terms of trade 
2.             Balance of trade
3.             Deficit balance of payment 
4.             Invisible trade
5.              Visible trade

7.       Why elimination of a wholesaler from the channel of distribution does not affect the flow of goods from the manufacturer to the final consumer?

1.             The wholesaler has very small amount of capital.
2.             The wholesaler performs the only selling function.
3.             All goods involved in the channel of distribution are branded.
4.             In regardless of the financial position, manufacturer can sell direct to final users. 
5.              The wholesaler's functions can be performed by other agents

8.    A business manager must obey the management functions so as to attain the business goals. In which function does a manager is involved in manpower planning and recruitment?

1.             Staffing 
2.             Directing 
3.             Planning
4.             Organizing 
5.              Controlling

9.         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.             Indirect production
2.             Direct production
3.             Tertiary production 
4.             Direct services
5.              E Indirect services

10.            How can different drinking water industries in Tanzania differentiate the same products they offered for sale in the market?

1.             Through packages 
2.             Through grading %
3.             Through branding
4.             Through standardizing 
5.              Through price

11.         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.

12.       Suppose you have attended a commercial debate with the motion "aids to trade is not necessary element of commerce". Which option will you choose as correct to oppose the motion?

1.             Aids to trade support production and not commerce.
2.             Aids to trade attract more buyers hence, low price for the goods.
3.             Aids to trade facilitate trade to take place smoothly.
4.             Aids to trade act as a link between commerce and production.
5.              Aids to trade is used to determine price of the goods produced.

13.    Suppose you have bought medicine from India and they are urgently needed to serve the life of patients in Tanzania, which mode of transport would you consider to be appropriate ?

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

14.    Under which classification the services provided by teachers, lawyers and police to their customers are categorized?

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

15.       You have been engaged in selling fresh beans business and you want to increase sales through advertising. Which factor will you consider in advertising your product?

1.              The income of the competitors.
2.              The steady supply of the products to be advertised.
3.              The income tax to be charged on the products.
4.              The nature of the product to be advertised.
5.               The purchasing power of your customer.

2. Match the descriptions on taxation terminologies in Column A with the corresponding terminology in column B BY Writing the letter of the correct terminology beside the tem number in the answer booklet provided;

SECTION B (50 Marks)

Answer all questions in this section.

3. (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.

4. (a) Mr. Ramsi a businessman who had an account with CRDB Bank in Arusha branch issued a cheque payable to Mr. Karim amounting to Tsh. 150,000/2 only. Use the information given to analyse the three main parties to a cheque involved in this transaction.

(b) Assume one of your teachers is a businessman and he had received two crossed cheques from one of his customers. One of the cheques bearing the words "Not Negotiable" and the other one "Account payee only". Briefly explain to him what the terms "Not negotiable" and "Account payee only" imply? 

5.   (a) (i) Briefly explain the term cheque.

(ii) Elaborate three main parties to a cheque.

(b) Whenever someone buys goods or services, payment can be made by either cash or cheque. Describe five advantages of paying the debts by using cheques.

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

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

7. (a) Mr. Konge insured his car against accident but he thought that the principles of utmost good faith, insurable interest and indemnity are not necessary principles in insurance. Describe the necessity of these three principles of insurance to Mr. Konge.

(b) Mr. Pokea received a cover note after paying the premium to insurer but did not know why the insurer issued him such a document. Give him two functions of the document received.

SECTION C (30 Marks)
Answer two (2) questions from this section.

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

9. Name and explain six economic effects of taxation.

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)

THE UNITED REPUBLIC OF TANZANIA PRESIDENT’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

 FORM FOUR COMMERCE MID TERM TEST 

Time: 3 Hours        April 2022

Instructions

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).

SECTION (20MARKS)

 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

1. 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

2. 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

3. 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

4. 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.

5. 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

6. 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.

7. 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

8. 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.

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

2. 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

SECTION B (50 MARKS)

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.

SECTION C (30 MARKS)

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.
10. 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.

THE PRESIDENT’S OFFICE MINISTRY OF EDUCATION, LOCAL ADMINISTRATION AND LOCAL GOVERNMENT

COMMERCE TERMINAL EXAMINATION-MAY

FORM FOUR

Time 3:00 Hours                                                                                      MAY 2020 

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)   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.

(ii) 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.

(iii)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.

(iv) 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.

(v)    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.

(vi 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. 

(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)  A 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) 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) 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.

2. MATCHING ITEMS QUESTIONS

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.

 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)  (i) What is meant by a 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 consumer protection.

SECTION C

7. (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.

8. (a) What is an entrepreneur?

(b) Describe the functions of an entrepreneur

(c) Describe five factors that contribute to failure of many small businesses.

9. Differentiate the following commercial terms:

(a) Formal communication and informal communication.

(b) Oral communication and written communication.

(c)   Audio media and audio visual media.

(d)  Internal communication and external communication.

(e)  Fax and internet.

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

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