PRESIDENT’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM TWO MID TERM TEST 

061 COMMERCE

TIME: 2.30 HOURS MARCH, 2023

INSTRUCTIONS

1. This paper consists of sections A, B and C with a total of ten (10) questions.
2. Answer all questions in each section.
3. Section A and C carry fifteen (15) marks each and section B carries seventy (70) marks.
4. All answers must be written in the spaces provided.
5. All writings must be in blue or black ink except drawings which must be in pencil.
6. All communication devices and calculators are not allowed in the examination room.
7. Write your Examination Number on the top right of every page.

SECTION A (15 MARKS)

Answer All questions in this section

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

(i) A trader in Morogoro has engaged himself in selling goods and services to the final

consumers around his local area,his act can be termed as: 

1. Retails
2. Wholesaler
3. Retailing
4. Wholesaling.

(ii) Mkwayu deals with distribution of already produced goods without changing their form. Therefore mkwayu is doing?;-

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

(iii) Mr.mawazo prefers buying fresh juices in place of cocacola. After the rise in prices for fresh juices, he decided to shift and consume cocacola. The demand for two commodities can be classified as:

1. Joint demand
2. Complementary demand
3. derived demand
4. Competitive demand.

(iv) Kayuni is a wholesaler who operate in large scale and operate his store in all major cities of the country. Kayuni is classified under what type of wholesaler: 

1. General wholesaler
2. Regional wholesaler
3. Specialized wholesaler
4. National wide wholesaler.

(v) Hussein and Hassan wanted to exchange their goods. Hussein has clothes and Hassan has

sugar. Hussein wanted sugar but Hassan wanted banana. What factor made the transaction between them impossible?

1. Lack of measure of value
2. Lack of double coincidence of wants
3. Lack of store of value
4. Lack of divisibility of some commodities.

(vi) Which of the following is an example of home trade?

1. A of Dar-es-Salaam buys goods from B of Nairobi
2. A of Dar-es-Salaam buys goods from B of Dar-es-Salaam B had imported those goods from England a few days ago.
3. A of Dar-es-Salaam sells goods to B of Nairobi. 
4. A of Dar-es-Salaam sells goods to B of Kampala.

(vii) A manufacturer of goods decided to sell his goods direct to the final consumers by using his own retail outlets. The form of distribution channel used is known as:

1. One stage channel
2. Two stage channel
3. Three stage channel
4. Four stage channel.

(viii) Mr. Bata shop has specialized in selling products produced by MIFUGO Company only.

These types of shops are known as: 

1. Chain stores
2. Mobile shops
3. Tied shops
4. Single shops.

(ix) The transport charges for the goods bought by Mchaga was TZS 3,000.The cost incurred in

purchasing the goods was TZS 14,000, if he decided to sell the product for TZS 20,000 and give a customer a cash discount of 5%, his net profit will be:

A.TZS 1,000

B.TZS 2,000

C.TZS 3,000

D.TZS 4,000.

(x) GSM mall decided to introduce self-service in his business, this is likely to increase his business profit because of:

1. Decreased shop theft
2. Fewer shop assistants 
3. Impulse buying
4. Increased advertising.

Answers

2. Match the items in column A with response in column B by writing the letter of the correct responses besides the item number in the space provided.

Answers

Answer all questions in this section

3. Assume you have been employed as a warehouse keeper at a certain warehouse. Describe five(5) activities that you will be performing as your duties:

4. MO Dewji is among successful entrepreneurs in Tanzania. Identify five(5) features that differentiate him from other businessmen.

5. Bukuku wants to buy some gifts for her friends, advise her on five(5) factors that are likely to affect his willingness and ability on buying decision.

6. Abuu and Abiya are form two students who were discussing about the problem of employment in Tanzania. Abuu decided that he will be an entrepreneur while Abiya refused. Give five (5) reasons to convince Abiya to follow his friend's idea.

7. You are given the following information related to a particular business in Kariakoo

• Business stock, 31.12.2020 ..26,720/= 
• Business stock, 01.01.2020 ..34,430/= 
• Net purchases.................................................. 212,290/= 
• Gross profit mark-up ..50% 
• Expenses for the year..................................... 45,000/=

You are required to help the trader to calculate the following:

(a) Cost of goods sold

(b) Average stock

(c) Rate of stock turnover

(d)Sales

(e) Net profit

8. Wholesalers are said to be an important link in the channel of distribution, their presence is said to bring a smooth flow of goods from producers to the final consumers. Describe their usefulness in connection with the above notion five points(5)

9. Suppose you are a form two student of commerce, and you have been given a task to present about classification of occupation. By using diagram only show how you will present the concept.

SECTION C 15 MARKS

Answer all questions in this section

10. As a commerce student, advise small traders in Tanzania who conduct their businesses around the road and in highly populated areas on important attributes/qualities they should show to their customers and suppliers in order to succeed in their businesses. (Five points)

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

COMPETENCY BASED SECONDARY EXAMINATION SERIES

COMMERCE 

FORM TWO- SEPT 2022

061

TIME: 2:30 HOURS

INSTRUCTIONS

• This paper consists of sections A, B and C with a total of seven (7) questions
• Answer all questions
• Section A and B carries thirty (30) marks and section C carries forty (40) marks
• All answers must be written in the spaces provided
• All writings must be in blue or black ink

SECTION A (30 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 in the space provided.

1.                 The art of transmitting information and ideas by word of mouth, writing or by other means

1.             Advertising
2.             Communication       ( )
3.             Insurance
4.             Transport

2.               The role of commerce in production process is to make

1.             Direct services reach ultimate consumer
2.             Distribution of goods and services to the retailer   ( )
3.             Distribution of goods and service to wholesaler
4.             Goods and service produced to reach the ultimate consumer

3.            Given stock at start 80,000, stock at close 100,000, purchases 410,000, sales 455,000. Rate of stock turn is

1.             5.1 times
2.             3.4 times        ( )
3.             4.3 times
4.             2.3 times

4.            Below are some of the factors to consider when locating a warehouse except

1.             Number of customer
2.             Communication system      ( )
3.             Cost of construction
4.             Flexibility

5.               Vehicle includes the following except

1.             Pickups
2.             Cranes        ( )
3.             Tankers
4.             Dhows

6.            The loading and off-loading places are referred  to as

1.             Unit of carriage       ( )
2.             Terminal
3.             Way
4.             Method of propulsion

7.          The demand of one commodity that causes the demand of another commodity is called;

1.             Joint demand       ( )
2.             Composite demand
3.             Derived demand
4.             Competitive demand

8.       ______________ is the exchange of goods for goods

1.             Home trade       ( )
2.             Barter trade
3.             Foreign trade
4.             Import trade

9.            The level of stock at which placing new order must be done is

1.             Minimum stock level
2.             Maximum stock level      ( )
3.             Average stock
4.             Order point

10.               The type of elasticity of supply that occurs when elasticity of supply is greater than one is called;

1.             Unitary supply
2.             Perfect elastic supply      ( )
3.             Inelastic supply
4.             Elastic supply

2.               Match the descriptions in LIST A with the relevant in LIST B by writing the correct response below the corresponding item number in the table provided

SECTION B (70 MARKS)

ANSWER ALL QUESTIONS FROM THIS SECTION

3.               a) For each of the statements (i) – (x) write TRUE if the statement is correct or FALSE if the statement is not correct in the space provided

1.                 Durable goods are goods which cannot stay for a long period of time without getting damage. _____________
2.               Wholesaler purchase goods in bulk from retailers. _____________
3.            Bonded warehouses are warehouses which store dutiable goods. ___________
4.            Labour is the person who use mental and physical effort. ___________
5.               Direct service involve public rallies, community based research and others ___
6.            Pipeline transport is the movement of passengers, liquids and gases from one place to another. ______________
7.          Commerce is the branch of economics. ____________
8.       Demand curve is the graphical representation of demand schedule. _________
9.            Basic needs includes food, shelter and clothes
10.               Regional wholesaler are wholesalers who operate through the whole country. _______________

b) Complete the following sentences by writing the correct answer in the space provided 

1.                 Ability and willingness of a producer to sell a particular product at a given price within a given period of time is _______________
2.               __________________ is a process of moving goods and people from one place to another.
3.            Path/way on which the goods flow from the producer to the final consumer is called ________________________
4.            _______________ is the ability of a commodity to satisfy human want
5.               The process of stimulating workers to accomplish desired goals in entrepreneurship is referred to as ________________

4.               Briefly explain five functions of stock administration

5.               Briefly explain the following concepts in relation to commerce

1.                Containerization
2.               Entrepreneurship
3.                Self-employment
4.               Rack jobbers
5.                Specialization 

6.               Study the table below

1.                From the table above calculate the price elasticity of demand when price changes from Tsh 400 per kg to Tsh 200 per kg
2.               State whether the price elasticity of demand is elastic or not

3.                Draw the demand and supply curves and determine the equilibrium price and equilibrium quantity

7.               Mention five (5) factors which causes change in demand of a commodity

                   (b) What is elasticity of demand and how it can be calculated?

8.               Analyse seven functions of retailer
9.               Explain four (4) four types of costs incurred during production process.

SECTION C. 15 MARKS

10.            (a) Define entrepreneur as a factor of production

                    (b) Explain four (4) functions of entrepreneur of a business

THE PRESIDENT’S OFFICE

MINISTRY OF EDUCATION, REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

SECONDARY EXAMINATION SERIES

COMMERCE TERMINAL EXAMINATION

FORM TWO-2022

Duration: 2:30 Hours

INSTRUCTIONS.

1.      This paper consists of sections A, B and C with a total of seven (7) questions.
2.      Answer all questions
3.      All answers must be written in the spaces provided.
4.      All writing must be in blue or black ink.
5.      Calculators, cellular phones and any unauthorized materials are not allowed in the examination room.
6.      Write your Examination Number at the top right corner of every page.

SECTION A (30 Marks)

Answer all questions in this section

1. For each of the following questions write the letter of the correct answer

(i)The qualities of a good retailer is

1.               Not pleasant in his dealing
2.               Not a good administrator
3.               No delay but makes prompt payment
4.               No stealing from his account.

(ii)Which of the following is an example of primary production? 

1.               Agriculture
2.               Textile manufacturer
3.               Road construction
4.               Space exploration

(iii)Demand curve is that which moves from the 

1.               Right to the left upward
2.               Left to the right upward
3.               Right to the left downward
4.               Left to the right downward

(iv)Which of the following function is not normally done by wholesaler to retailer?

1.               Breaking the bulk
2.               Storage
3.               Market research
4.               Transportation

(v)Industries which assemble already manufactured goods are known as 

1.               Producing industries
2.               Constructive industries
3.               Extractive industries
4.               Manufacturing industries

(vi)C.O. D is an abbreviation which stands for 

1.               Cash On Demand
2.               Cash On Delivery
3.               Credit On Demand
4.               Care Of Drawer

(vii)Which of the following statements is true?

1.               Economics is part of Commerce
2.               Commerce is part of Economics
3.               Commerce includes production
4.               Commerce is the study of exchange only

(viii)The distinguish marks attached to products and which cannot be used by any other producer are called:

1.               Trade marks
2.               Approval seals
3.               Copy rights
4.               Kite marks

(ix)Marginal cost is defined as 

1.               A change in total output due to additional unit of cost
2.               Distribution of total cost per unit of output
3.               A change in total cost due to additional unit of output
4.               Distribution of fixed costs per unit of output

(x)The level reached after receiving new delivery is called 

1.               Minimum stock
2.               Average stock
3.               Maximum stock
4.               Stock taking

2.Choose the correct term from Group B which matches with the explanation in Group A then write the letter against the number of the relevant explanation.

For each of the following statements (i) – (x) 

3. Write TRUE If the statement is correct or False if the statement is not correct in the space provided.

1. Demand law states that the lower the price the higher the quantity demanded and vice-versa.
2. The cost incurred in producing the extra unit of output is called Marginal cost
3. Export trade is commercial activity that deals with selling goods and services to other countries
4. Extractive industries are involved in changing the form of raw materials into finished goods.
5. Barter trade is exchange of goods and services
6. Human needs consist of food, shelter and clothes
7. Production is the creation of goods and services to satisfy human wonts
8. A large building which is specifically made for the storage of goods before use is called store
9. Capital is reward of labour
10. The allowance made by the seller in orders to encourage buyers to buy more goods is called trade discount.

 SECTION B (30 Marks)

Answer all questions in this section.

4. Briefly explain six qualities of good retailer.

5.(a) Define the term demand

(b) Briefly explain five factors that determine change in demand

SECTION C ( 40 Marks)

Answer all questions in this section

6. Briefly explain the importance of land as a factor of production. (Give four points)

7. The following are the balances of Kantupeni Traders as at 31^st December 2007

Closing stock   Tshs. 32,500/=

Purchases   Tshs 25,000/=

Expenses   Tshs 8,000/=

Sales    Tshs 35,000/=

Opening stock   Tshs 28,000/=

Calculate:

1.                 Gross profit
2.                 Net profit
3.                 The rate of stock turn

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

FORM TWO COMMERCE MID TERM TEST , APRIL  - 2022

 TIME:  2:30  HOURS INSTRUCTIONS

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

2. Answer all questions from both sections.

3. All answers must be in blue or black ink except for drawings, which must be drawn by pencil ink.

4. Cellular phones and calculating devices are not allowed in the examination room-

5. Observe neatness of your works.

6. Write your examination index number on every page of your answer sheet(s).

FOR EXAMINER'S USE ONLY

SECTION  A: (30 MARKS)

1. For each of the following questions. (i)-(x) choose the most correct option among the given alternatives and write its letter beside the item number----

(i) The main aim of commerce in satisfying human wants is to close the gap between:

1. Producers and manufactures
2. Producers and consumers
3. Retailers and consumers
4. Wholesalers and retailers ( )

(ii) The difference between cost price and the selling price is regarded as. _

1. Gross profit
2. Turnover
3. Net profit
4. Stock turn ( )

(iii) The chief advantage of specialization is: _

1. Monotorv
2. Provides direct services
3. It encourages barter system
4. It increases production ( )

(iv) Labour as a factor of production is said to create utility if it ultimalely leads to: _

1. Production of goods
2. Meeting consumers needs
3. Contact with consumers
4. (d) Selling a product ( )

(v) A debit note is issued to correct: _

1. An overchrge on a statement
2. An over charge on an invoice
3. An undercharge on an invoice
4. An under charge on a statement ( )

(vi) is the ability and willingness to sell certain quantity of a commodity at a given market price and specific period of time.

1. Buying
2. Demand
3. Selling
4. Supply ( )

(vii) Aneth a wholesaler had daily sales of SO bags, minimum stock of 200 bags and a time of delivery of 4 days. What is the wholesaler's order point?

1. 850
2. 200
3. 600
4. 400 ( )

(viii) is the giving of a name to a product in order to distinguish it from other products.

1. Branding
2. Blending
3. Blanding
4. Grading ( )

(ix) A place where loading and off loading of goods takes place is called. _

1. The way
2. Method of propulsion
3. Unit of carriage
4. Terminal ( )

(x) The cover against unforeseen in a business is termed as. _

1. Warehousing
2. Insurance
3. Advertising
4. Banking ( )

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 box provided.

3. (a) For each of the following items, write True or False on the space provided:

(i) Variable cost is the cost that changes with change in input. 

(ii) Profit is the reward for entrepreneurship.

(iii) Domestic trade is the trade 'carried out between nations,

(iv) Competitive demand is the demand for qoods which serve the same purpose

(v) Durable goods are the goods which can not stay for a long period of time

(vi) . Imports are good that are bought from other countries,

(vii) Unitary elasticity is the elasticity that is equal to zero

(viii) Indirect production is the production of goods for one's own consumption,

(ix) A trade discount is an allowance made if goods are sold by one businessman to another whose price is fixed, _

(x) Single shops that sell products of one manufacturer only is tied shop 

b) Complete the following sentences by filling in the blanks with correct word(s)

i) Cost of goods sold divided by average stock gives the

ii) It occurs when demand and supply forces intersect each other

iii) The action through which a retailer discovers information about the needs of the consumers

iv) A document authorizing the removal of goods from a warehouse is termed as

v) The type of trade by which orders are placed, sent and goods are received through postal service is,

SECTION B: (30 MARKS)

4. Write short notes on the following concepts as used in commerce; 

(i) Automatic vending machine

(ii) Multiple shops

(iii) Sales promotion 

(iv) Defered payement 

(v) Tertiary production

5. (a) Briefly explain wholesale trade?

(b) Descibe any six (6) challenges that face retail traders in Tanzania

SECTION C:  (40 MARKS)

6 Given

Opening stock = 2,000/= 

Closing stock = 2,500/= 

Purchases = 14,000/= 

Sales = 25,000/= 

Expenses = 4000/= 

Calculate

a)Cost of goods sold

b)Average stock 

c)Gross profits 

d)Net profit

e)Rate of stock turn over

7. Briefly explain five (5) activities mainly taking part in shock administration.

PRESIDENT’S OFFICE

REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

MID TERM ONE EXAMINATIONS

COMMERCE  FORM TWO

TIME: 2:30 HOURS                                                                                             MARCH 2022

Instructions

1.      This paper consists of sections A, B and C with a total of seven (7) questions.

2.      Answer all questions.

3.      Section A and B carry thirty (30) marks each and section C carries forty (40) marks.

4.      All answers must be written in the spaces provided.

5.      All writings must be in blue or black ink.

6.      All communication devices, Calculators and any unauthorized materials are not allowed in the examination room.

7.      Write Your Examination Number on the top right of every page.

SECTION A: (40 Marks)

Answer all questions in this section

1.      For each of the following items (i) - (x), choose the correct answer and write its letter in the box provided:

(i)                 The method of payment where the buyer sends money for the goods on ordering for them is known as:

A.    Cash on delivery

B.     Prompt cash

C.     Spot cash

D.    Cash with order.

(ii)              Which of the following types of warehouses enables Tanzania Revenue Authority to collect import duty? 

            A. Public warehouse

B.     Bonded warehouse

C.     Wholesale warehouse

D.    Private warehouse.

(iii)            If a trader is given 20% trade discount and 5% cash discount for goods purchased at TZS 200,000/=, how much will he pay?:

A. TZS 150,000/= B. TZS 160,000/=

C. TZS 152,000/= D. TZS 120,000/=.

(iv)             The reason why people participate in exchange of goods is:

A.    To get money

B.     They over produce

C.     They prefer what is produced by others

D.    They specialize in production of different goods and services.

(v)               The process of checking and keeping record of the number of items in stock and their values is known as:

A.    Stock control

B.     Stock valuation 

C. Issuing of stock

D. Stock taking.

(vi)             The distribution, exchange of goods and service and activities that help in the movement of goods from the producer to the consumer is known as:

A.    Production

B.     Aids to trade

C.     Trade

D.    Commerce.

(vii)          Why are there more new business in the retail trades than in manufacturing?

A.    Few skills required to run retail business

B.     More capital is required to start retail trading

C.     Retailer can obtain bank loans without collateral security

D.    The retail trade is more profitable than manufacturing.

(viii)        Which one of the following activities is under primary production?

A.    Coffee processing

B.     Car manufacturing 

C. Road construction

D. Oil drilling.

(ix)             The system of installment selling where the buyer takes ownership of the property immediately after the first deposit is known as:

A.    Hire purchase

B.     Mortgaging

C.     Credit sales 

D. Deferred payment.

(x)               Given average stock at selling price TZS 144,000/= and the cost of sales of TZS 720,000/=. The rate of stock turn will be:

A.    4 times

B.     0.2 times

C.     5 times 

D. 0.8 times.

2.      Match the descriptions of Entrepreneurship in list A with the relevant response from List B by writing the letter of the correct response below the corresponding item number in the table provided.

Answer:

3.      (a) For each of the statements (i) – (x), write TRUE if the statement is correct or FALSE  if the statement is not correct in the space provided.

(i)  Secondary level of production consists of manufacturing industry and constructive industry.  

(ii)  Price and income are among the factors which cause change in quantity demand for a particular commodity.

(iii)  Employment enables people to have stable income throughout the year. 

(iv)  Supply curve has a positive slope because as price of the commodity rises   fever goods will be supplied.  

(v)  Water, railway, air and road transport are the modes of transport.  

(vi)  When units produced equal to zero, then total cost of production will be equal to summation of all fixed cost incurred. 

(vii)  An aid to trade which involves making the public aware of the availability of goods and services in the market is television. 

(viii) Production is classified into three major branches which are commerce,

 business and direct services. 

(ix)    Hypermarket is a large shopping center located away from the city center with a very large space for packing and selling variety of goods under self-service.                 

(x)  Trade mark is a system of giving name or symbol to a product to differentiate it from other similar product. 

(b) Complete the following sentences by writing the correct answer in the spaces provided

(i)    A factor of production which is characterized by value appreciation is called 

(ii)    A businessman who carries the goods and moves from one place to another looking for customers is known as 

(iii)  After watching the success of biggest entrepreneurs such as Mohammed Dewji, Mswahili was interested to become an entrepreneur. The type of motivation that has motivated Mswahili is 

(iv)  A labour who uses more of mental efforts than his/her physical efforts is known as 

(v)      During a particular year, wheat farmers experienced dry weather; if all other factors remain constant, the farmer supply curve for wheat will shift to 

 SECTION B: (30 Marks)

Answer all questions in this section

4.      (a) Explain the meaning of demand

_____________________________________________________________________ __________________________________________________________________________________________________________________________________________

(b)  Describe any four (4) conditions for effective demand.

(i)                 _______________________________________________________________

                             _______________________________________________________________

                             _______________________________________________________________

(ii)              _______________________________________________________________

                             _______________________________________________________________

                             _______________________________________________________________

(iii)            _______________________________________________________________

                             _______________________________________________________________

                             _______________________________________________________________

(iv)             _______________________________________________________________

            _______________________________________________________________              _______________________________________________________________

5.      Distinguish between the following terminologies as used in commerce

(a)               Time utility and place utility

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

(b)               Change in supply and change in quantity supply

_____________________________________________________________________

_____________________________________________________________________ _____________________________________________________________________

_____________________________________________________________________

(c)               Bonded warehouse and public warehouse

_____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________

_____________________________________________________________________

(d)               Business and trade

_______________________________________________________________ _______________________________________________________________

_______________________________________________________________

_______________________________________________________________

(e)               Wholesale trade and retail trade

_______________________________________________________________              _______________________________________________________________

_______________________________________________________________

_______________________________________________________________

SECTION C: (40 Marks)

Answer all questions in this section

6.      (a) What is production?

_____________________________________________________________________

_____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________

    (b)   Draw the production chart and clearly indicate all its branches.

7.      Sleyyum has bought medicine from China and they are urgently needed to serve the life of patients in Tanzania. Which mode of transport would you consider appropriate for Sleyyum? Explain five (5) advantages of using the mode of transport that you have choosen.

___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________

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

COMMERCE- BACK TO SCHOOL EXAMINATION-JUNE

FORM TWO

Time 2:30 Hours                                                                                      JUNE 2020 

INSTRUCTIONS.

1. This paper consists of sections A, B and C with a total of seven (7) questions.
2. Answer all questions
3. All answers must be written in the spaces provided.
4. All writing must be in blue or black ink.
5. Calculators, cellular phones and any unauthorized materials are not allowed in the examination room.
6. Write your Examination Number at the top right corner of every page.

SECTION A (30 Marks)

Answer all questions in this section

1. For each of the following items (i) – (ii), choose the correct answer and write its letter in the box provided.

(i) What will be the order point of Mr. Cassel if his daily sales are 500 bags of sugar, the delivery time being 15 days and minimum stock of 200 bags?

1. 7,700 bags
2. 300 bags
3. 3,500 bags
4. 4,500 bags

(ii) The process through the customer exchange information with the shop keeper about the availability of rice in his shop is expressed as

1. Transaction
2. Advertising
3. Communication
4. Retailing.

 (iii) Why is it necessary to use demand schedule in drawing a demand curve?

1. It shows the quantity demanded
2. It shows the price of the quantity demanded.
3. It shows the price and quantity demanded.
4. It shows the price changes for a commodity.

(vi) Why internal motivation important in an entrepreneurship?

1. It creates environment for carrier development
2. It creates competition among the entrepreneurship
3. It creates the working spirits to experts.
4. It helps to overcome the business challenges.

(v) In which category does Madam Mashenge be grouped if she produced green vegetables in large quantity and sells them in bulk to retailers who will then sell them to final users?

1. Wholesaler
2. Retailer
3. Customer
4. Producer

 (vi) The main elements of commerce comprises of

1. Home trade and foreign trade
2. Wholesale and retail trade
3. Trade and aids to trade
4. Import trade and export trade.

 (vii) Which of the following units of carriage in transport is most suitable in carrying delicate and perishable goods over a long distance?

1. Ships
2. Train
3. Car
4. Aeroplane.
   

(viii) Petrol stations which sell petrol and diesel obtained from the same producer are the examples of

1. Tied shops
2. Departmental stores
3. Single shops
4. Mobile shops.

 (ix) The following are benefits of self – employment to an entrepreneur except

1. Ability to generate extra income
2. Sharing decision and business ideas with the boss.
3. Ability to make his/her own decisions.
4. Becoming boss of his/her own business.

 (x) Mr. Makiku is a large scale local rice producer who invested a capital of Tsh.300 million in production. What reward is he deserve as a return of his capital?

1. Rent
2. Salary
3. Profit
4. Interest.

2. Match the meaning of the production terminologies in List A with the relevant terminology in List B by writing the letter of the correct terminology below the corresponding item number in the table provided.

3. (a) For each of the following statements (i) –(x), write True if the statement is correct or False if the statement is not correct in the space provide.

(i)     Air transport is most suitable for transporting Tanzanite minerals from Arusha to Dar es Salaam………

(ii)  Some of the entrepreneurs exit from the market as an outcome of improper planning………..

(iii) Warehousing increases the quality of some goods such as alcohol if stored over long time……….

(iv) Mr. Biashara is a wholesaler because he bought 100 bags of cement from Cement Industry for construction of his house…………………

(v)   Economic deals with allocation of scarce resources to satisfy human needs and wants…………

(vi) The presentation of quantity supplied in relation to price in graph presents supply schedule…..

(vii)    The success of entrepreneurial business is an external motivation to an entrepreneur…….

(viii)  Low establishment cost is one of the factors that cause an increase in number of road side sellers in Tanzania……..

(ix)  Tanzania use pipe line mode of transport in transporting gas from Mtwara to Dar es Salaam…..

(x)  The rate of stock turn helps the business owner to determine the value of gross profit in a given period.

  (b) Complete the following sentences by filling in the blanks with the correct word(s)

(i)     Under which factor of production the machine bought for production purpose is categorized?

(ii)  The wholesaler’s function which involves bulk buying and promptly payment to manufacture is called?

(iii) The process of keeping goods or raw materials for future use in the warehouse is referred to as?

(iv) A person who initiates the business idea is called?

(v)   The demand for the commodities that are used together such as cars and fuel is grouped as?

SECTION B (30 Marks)

Answer all questions in this section.

4. (a) What is transportation? Give one example of transportation at your surroundings.

……… ……………… ………… …………… …………………………… ……………  …………

(b) With examples, briefly explain four elements of transports.

(i)     ………………………… ………………………………

(ii)  ………………………… ………………………………

(iii) ………………………… ……………………………… 

(iv) ………………………… ………………………………

 5. Describe five functions of an entrepreneur.

(i)     …………………………… …………………………………

(ii)  …………………………… ………………………………… 

(iii) …………………………… …………………………………

(iv) …………………………… …………………………………

(v)   …………………………… ………………………………….

 
 SECTION C ( 40 Marks)

Answer all questions in this section

6. (a) Describe the term channel of distribution and draw a diagram to show the middlemen involved in the channel of distribution of manufactured goods.

  (b) Explain four forms of channel of distribution of manufactured goods.

(i)     ……………………… …………………… …………………… ………

(ii)  …………………… ……………………… …………………… ………

(iii) …………………… ……………………… ……………………… ……

(iv) …………………… …………… …………… ………………… ………

 7. Explain four advantages and two disadvantages of warehousing.

1. Make profit
2. Help customers
3. Help manufacturers
4. Bridge the gap between producers and consumers

1. Breaking the bulk
2. Selling goods to customers
3. Marketing research
4. Buying goods from producers

iii) The following is not an advantage of specialization and division of labour

1. Decrease in production
2. Increase in production
3. Achievements of expertise
4. Time saving

iv) Making goods for one’s own use is termed as

1. Self service
2. Direct production
3. Self-employment
4. direct service

v) Bread and butter, tea and sugar illustrate the type of interrelated demand known as

1. joint demand
2. composite demand
3. competitive demand
4. consumer demand

vi) Which of the following is not an aid to trade?

1. Transporting
2. Banking
3. Insurance
4. Retailing

vii) Production process ends when

1. Manufacturing process ends
2. Goods reach final consumers
3. Goods reach the retail shops
4. Goods are stored in a warehouse

viii) It is a level reached after receiving new delivery

1. Retailer average stock
2. Minimum stock
3. Maximum stock
4. Stock administration

ix) Management of stock in the warehouse is known as:

1. Stock valuation
2. Stock control
3. Stock taking
4. Stock administration

x) The abbreviation C.W.O on an order form means

1. Cash on delivery
2. Customer warehouse order
3. Cash with order
4. Come with order

2. Match the items in column A with responses in column B by writing the letter of the correct responses besides the item number in the answer sheet provided

COLUMN A

(i).   …………   a number of single shops under one roof and one managements

(ii).   ………….  Are number of shops owned and managed by one concern stock the same class of merchandise and often similar in appearance

(iii).   ……….Type of single shops which sells the product of one manufacturer only

(iv).   ………… self-service retail outlets

(v).   ………….  Large shopping complex comprising the variety of business managed by different people all housed in one building 

COLUMN B

1. Hire purchase
2. Supermarkets
3. Hypermarket
4. Departmental stores
5. Co-operative shops
6. Multiple shops
7. Deferred payments
8. Tied shops
9. Roadside sellers
10. Hawkers

3. Write “T” for a true statement and “F” for a false statement in the space provided  beside  each  item .

(i)  Advertising is an aid to trade which means the transmitting of information from one point to another ……………………..

(ii)  Wages is the reward for labour……………

(iii) The movement of people and goods from one place to another is called Transportation……………………….

(iv) Chain of distribution is the ways through which goods flow from manufacturers to the final consumers……………..

(v) The graphical representation of demand schedule is called Elasticity…………

(vi) Invoice is a document issued when goods have been bought or sold on credit………………..

(vii)  Private warehouse is a place where imported goods are kept while waiting for the payment of custom duty…………………….

(viii) Indirect production is the production for one’s own use……………………

(ix)  Average stock is the number of times the average stock held turn over during a period………………………………..

(x)   Stock administration is the quantity of a certain supply that should always be in a stock to safeguard sales against unforeseen delays in delivery………………..

SECTION B (30 MARKS)

5. Form two commercial students wants to establish retail shops, advise them by having five factors to be considered when establishing a retail shop

6. Entrepreneurship plays a vital role in industrial development.  Outline any five characteristics of an entrepreneur.

SECTION C (40 MARKS)

7. Complete the following table, show all your workings

 8. Explain the five (5) factors that determine change in demand