FORM TWO COMMERCE NECTA MULTIPLE CHOICE(2005-2018)
FORM TWO COMMERCE MULTIPLE CHOICE 2019

THE UNITED REPUBLIC OF TANZANIANATIONAL EXAMINATIONS COUNCIL OF TANZANIA

FORM TWO NATIONAL ASSESSMENT

061   COMMERCE

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 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. 3,300 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.

List A

List B

(i)     A level of production which is concerned with getting the raw materials provided by nature out of the land.

(ii)  The activity aimed at bringing a physical change in goods and services to satisfy human needs and wants.

(iii) A level of production which deal with distribution of already manufactured goods without changing their forms.

(iv) The production inputs, which are necessary for production to take place.

(v)   A level of production which uses raw materials produced to produce other goods that will satisfy human needs.

  1. Production
  2. Factors of production
  3. Secondary production
  4. Indirect production
  5. Direct production
  6. Tertiary production
  7. Primary production


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.



FORM TWO COMMERCE MULTIPLE CHOICE 2016

A wholesaler who operates on a very large scale business and supplies goods to retailers in all parts of the country is known as:

  1.   nationwide wholesaler
  2.  specialized wholesalers
  3. general wholesaler
  4.  regional wholesalers


 Which of the following presents a disadvantage of barter system?

  1.   Double coincidence of wants
  2.  Divisibility
  3.  Standard of deferred payments
  4. Indivisibility


(iii)       An official document used to correct undercharge of an invoice is called

  1.  debit note     
  2.  credit note
  3.  consignment note 
  4.  delivery note


(iv)     Which of the following group presents a broad classification of occupations ?

  1. Trade and production
  2. Industrial, commercial and tertiary.
  3.  Extractive, manufacturing and constructive industries 
  4. Trade, aids to trade and industrial.


(v)       Prices below equilibrium price reflect:

  1. excess demand
  2. excess supply 
  3.  decrease in demand D
  4. increase in supply.


(vi)     An agent who sells goods of his principal in his own name is called

  1.  commission agent
  2.  broker
  3.   factor
  4.  del-credere agent


(vii)   Which of the following presents the main feature of multiple shops?

  1.  Many shops selling different kind of goods owned by one       person
  2. Many shops selling the same kind of goods and owned by one person
  3.  Many shops under one building selling different kind of goods
  4. Many shops selling similar products from different producers


(viii)Examples of free goods are

  1. Tanzania Broadcasting, ITV and Star TV
  2. refrigerator, tractors and tailoring machine 
  3.  roads, public hospitals and public schools 
  4. rainfall, sunshine and air.


(xi) Which ofthe following is not included in commerce flow chart?

  1. Insurance
  2.  Warehousing 
  3.  Production
  4.  Transportation.


(x) What is the correct formula used to calculate working capital of the business?

  1.  Opening stock plus closing stock divide by two.
  2. Current assets less current liabilities
  3. Current assets less current liabilities plus fixed assets
  4. Total assets less current assets.


2. Match items in List A with the responses in List B by writing the letter of the correct response below the number of the corresponding item in the table provided.

LIST A LIST B
(i) A building where goods are stored while waiting for their use or distribution

(ii) The amount of money refunded as imported goods are re-exported within the time

(iii) A building owned by an individual or business which is available for use by others for charge

(iv) A building where goods are stored and F. owned by specific business for their own use

(v) Warehouse used for storage of goods whose import tax had not been paid

(vi) A document issued to the owner of the goods after goods have been received into the public warehouse.

(vii) The process of storing goods or raw materials in a warehouse until they are K. needed

(viii) A document prepared by the importer
who wants to take delivery of the goods in bonded warehouse.

(ix) Taxes which are paid for imported goods before they leave the bonded warehouse.

(x) A document which shows the amount of goods which are in a warehouse for a particular importer

  1. Auction of warehouse
  2. Warrant
  3. Tax collection
  4. In-bond notes
  5. Bill of entry
  6. Customs duties
  7. Private warehouse
  8. Warehouse
  9. Customs drawback
  10. Warehousing
  11. Public warehouse
  12. Bonded warehouse




3. Complete the following sentences by filling in the blanks with the correct term(s).

(i) Goods and services that are sold outside the country are termed as . . . . . . .

(ii) The industries dealing with assembling of already manufactured goods into finished goods are called. . . . . . . .

(iii) A small scale retailer business which is owned by one person, offering a variety of goods from different manufacturers and had fixed premises is called . . . . . . .

(iv) The law which states that the lower the price the higher the quantity demanded and the vice versa is known as. . . . . . . .

(v) An auxiliary service which involves exchange of information between people or organization is known as . . . . . . .

(vi) The cost incurred in producing the extra unit of output is called

(vii) The commercial activity that deals with selling goods and services to other countries is called . . . . . . .

(viii)The last person to receive goods in the channel of distribution is called . . . . . . .

(ix) The arrangement of stocks in the warehouse or at the shop according to the date of their arrival is referred to as

(x) The resource in the form of money/materials or goods that a person or an organization used in commencing business is termed as . . . . . . .



SECTION B

4. Define the following terms with examples

(a) Durable goods.........................

(b) Consumer goods........................

(c) Indirect production......................

(d) Extractive industries.....................

(e) Departmental stores......................



5. Briefly explain six qualities of a good retailer



SECTION C

6. (a) Describe shift in supply curve.



(b) Draw a graph to show the inwards and outwards shift in supply curve.



(c) Describe five factors which cause a decrease in supply curve.



7. Explain six types of costs of production.



FORM TWO COMMERCE MULTIPLE CHOICE 2015

Warehouses which belong to manufacturers, wholesalers or individuals are categorized as:

  1. bonded warehouses
  2. specialized warehouse
  3.  private warehouses 
  4.  public warehouses


The appropriate channel to distribute perishable goods to final consumers is from:

  1.  producers, wholesalers, retailers to the final consumers
  2. producers, wholesalers to final consumers
  3. producers, large scale retailers to final consumers
  4. producers, small scale retailers to final consumers.


(iii)     Which of the following is considered as disadvantage of division of labour?

  1.  Unemployment
  2. High degree of choice
  3.  Employment opportunity 
  4.  Efficiency


(iv)    The exchange of goods and services is referred as:

  1.   Aids to trade
  2.  Trade
  3. Barter trade 
  4. Commerce


(v)      Demand curve normally slopes from

  1.  left to right upwards 
  2.  right to left downwards 
  3.  right to left upwards
  4.  left to right downwards


(vi)    Which of the following is an example of retailers who do not have permanent premises?

  1.  Single shop
  2. Tied shop 
  3.  Mobile shop
  4.  Multiple shops.


(vii)  Which of the following is a reward for capital as a factor of production? 

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


(viii)If the price elasticity of demand is greater than I, the demand is said to be.

  1. elastic
  2. perfectly elastic
  3. inelastic 
  4.  unitary


(ix)    Which of the following is a good example of perishable goods?

  1.  Processed coffee
  2.  Wheat flour
  3. Natural flowers
  4.  Processed vegetables


(x)      If the average stock is shs. 120, 000 and cost of sales is shs.

       480,000, the stockturn rate     be•.

  1.   0.25times 
  2.  Shs 600,000
  3. Shs 360, 000
  4. 4 times


2. Match the items in List A with the responses in List B by writing the letter of the correct response in the table provided.

LIST A LIST B

(i) Arranging of stocks in stores in such a way that the old stock can easily be distinguished from new stock.

(ii) Quantity of a certain supply that should always be in stock to safeguard sales against unforeseen delays of delivery.

(iii) The average number of stock level within a given period of time.

(iv) The level of stock which is arrived immediately after receipt of new deliveries

(v) Checking and keeping records of the quantity and value of items in stock.

(vi) Making a list of all stocks held at the end of a given trading period.

(vii) The process of sorting out spoilt items, cleaning and dusting all goods in store.

(viii) The value of goods or merchandise in stocks held at the beginning of the financial trading period.

(ix) The level of stock at which placing of a new stock must be done

(x) Management of stock in a business to ensure that always goods for selling are available without running out of stock or overstocking

  1. Stock taking
  2. Opening stock
  3. Order point
  4. Minimum stock
  5. Receiving of stock
  6. Care of stock
  7. Stock control
  8. Maximum stock level
  9. Closing stock
  10. Rate of stock turn
  11. Average stock
  12. Issuing of stock
  13. Stock level
  14. Placing of items
  15. Stock Administration


3. Complete the following sentences by filling in the blanks with correct word (s):

(i) An aid to trade whose major aim is to compensate the insured who suffered losses out of the stated risk is called. ..............

(ii) Industries which are involved in changing the form of raw materials into finished goods are classified as. .................

(iii) The quantity of goods that producers are willing and able to offer for sale at a given price in a given period of time is known as.....................

(iv) In hire purchase agreement, whenever the buyer failed to pay only the last installment the property bought will remain in the hands of the. . . . . . . . . . . .

(v) ................. are the costs of production which change as the output changes.

(vi) Trade which involves exchange of goods by goods commercially is termed as..................

(vii) Wholesalers who handle a particular type of goods but offer a greater variety within their particular field are known as. .................

(viii) The responsiveness of demand for a product to a change in price represents. .................

(ix) Human needs which consist of food, shelter and clothes are called..................

(x) ................. are retailers who sit next to bus stands, market places public/private halls or around the schools offering small items like sweets, fresh fruits pens, drinks, etc, to customers.



SECTION B

4. Briefly describe the following terms:

(a) Foreign trade

(b) Supermarkets

(c) De-credere agents

(d) Direct services

(e) Departmental stores



5. (a) What is meant by the term retail trade?



(b) Briefly explain five functions of retailers



SECTION C

6. (a) Briefly describe four types of demand.



(b) Explain four factors that cause change in demand for a certain product.



7. (a) List five main branches of aids to trade.



(b) Explain the importance of commerce in our daily life. Give five points.



FORM TWO COMMERCE MULTIPLE CHOICE 2014

The process of selling goods and services to other countries is called:

  1.  Horne trade
  2.  International trade
  3.  Retail trade
  4.  Export trade


(ii)      The movement along a demand curve is caused by:

  1.  change in price of a commodity
  2. change in consumers income
  3.  change in quantity demanded 
  4.  change in consumers taste


(iii)    Which ofthe following is the best feature ofthe multiple shops?

  1. Providing self services to customers.
  2. Stocking variety goods from different producers.
  3.  Stocking similar goods and often similar in appearance.
  4. Stocking similar goods under one roof and one management.


(iv)    The main branches of production are:

  1. Commerce, industry and trade
  2. Commerce, industry and public service
  3. Commerce, industry and direct services
  4. Commerce, industry and personal services


(v)      The shops which sell products of one manufacturer only are called:

  1. Supermarket shops
  2.  Tied shops
  3.  Single shops
  4.  Mobile shops


(vi)    Which of the following is a reward for land as a factor of production?

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


(vii)  A warehouse where imported goods are kept waiting for customs clearance is called

  1.  Specialized warehouse
  2. Bonded warehouse
  3. Public warehouse
  4. Private warehouse


(viii)Which of the following service is normally rendered by wholesalers to the consumers?

  1. Providing capital.
  2.  Providing transport. 
  3. Providing advice.
  4.  Providing variety of goods.


(ix)    An art of making goods and services known to the public is known as:

  1.  marketing
  2. sales promotion
  3. advertising
  4.  communication


(x)      Any price above equilibrium price for a given commodity leads to:

  1. excess supply
  2. decrease in supply
  3. decrease in demand
  4.  excess demand


2. Choose the correct term from List B which matches with the explanation in List A, and then write the letter below the number of the relevant explanation in the Table provided.

LIST A LIST B

(i) A document authorizing the removal of goods from a warehouse.

(ii) A person who represents buyers and sellers in negotiating a purchase or sale without physical handling of goods.

(iii) A product remains the property of the seller till all installments have been paid

(iv) A type of demand when the product is used for different purposes.

(v) An institution which is involved in financial transactions.

(vi) Bread and butter, sugar and tea illustrate the type of interrelated demand.

(vii) Cost of goods sold divided by the average stock.

(viii) Shops which are scattered in different parts of a country selling similar goods.

(ix) The action through which aretailer discovers information about the needs of the customers

(x) The person who provides capital and bears risks of the business

  1. Advertising
  2. Bank
  3. Broker
  4. Competitive demand
  5. Composite demand
  6. Development bank
  7. Entrepreneur
  8. Hire purchases
  9. Joint demand
  10. Market research
  11. Multiple shops
  12. Rate of stock turn
  13. Stock turnover
  14. Warehouse shops
  15. Warehouse warrant



3. Complete each of the following statements by filling in the blanks with the correct word(s)

(i) A.type of large scale retail trade having a single shop is . . . . . . . . . . . .

(ii) The allowance made by the seller in order to encourage buyers to buy more goods is called . . . . . . . . . . . .

(iii) The amount of the commodity that firms are willing and able to sell in the market at a specific level of price and period of time is known as . . . . . . . . . . . .

(iv) The factor of production which includes machinery, tools, buildings and raw materials for production is called . . . . . . . . . . . .

(v) The list of various quantities of commodities bought at different levels of prices at a specific period of time is termed as . . . . . . . . . . . .

(vi) The movement of goods and services from a production are to the consumption area is termed as . . . . . . . . . . . .

(vii) The process of dividing work according to skills of the workers is called . . . . . . . . . . . .

(viii) The reward of labour is . . . . . . . . . . . .

(ix) Trade that deals with selling of goods and services outside the country is known as . . . . . . . . . . . .

(x) Traders who set up their business along side of the streets and larger cities are termed as . . . . . . . . . . . . .




SECTION B

4. Write short notes on each of the following terms:

(a) Direct production

(b) Communication

(c) A catalogue

(d) Fixed cost

(e) Mobile shop



5. (a) Who is a wholesaler?



(b) Briefly explain five functions of wholesaler.



SECTION C

6. Study the given Table and answer the questions that follow:

Price (Tshs)

200

400

600

800

1000

Qty. demanded (kgs)

1000

800

600

400

200



(a) Calculate the price elasticity of demand if the price changes from Tshs. 400 to Tshs. 600.



(b) Comment on your answer in (a) above.

7. Briefly explain five points on the importance of studying Commerce.



FORM TWO COMMERCE MULTIPLE CHOICE 2013

Commerce involves all activities that enable goods and services to be moved from the producer to the:

  1.  final consumer
  2.  manufacturer
  3. retailer
  4.  wholesaler


If a great change in price brings about a small change in the quantity demanded then the price elasticity of demand is:

  1.  constant 
  2. elastic
  3. inelastic 
  4. unitary


(iii)     A tractor used in agricultural activities is in the category of:

  1. consumer goods
  2. domestic goods 
  3.  luxury goods
  4. producer goods


(iv)     The stock level when new goods are required in the warehouse is:

  1.  average stock
  2. maximum stock
  3.  minimum stock 
  4.  order point


(v)       The exchange of money value of a good and services:

  1.  brakeage
  2. commission
  3. interest
  4.  price


(vi)     Marginal cost is defined as:

  1.   a change of fixed cost per unit of output
  2.  a change of total output due to additional unit of cost 
  3. a change in total sales due to additional unit of cost
  4. distribution of total cost per unit of output.


(vii)    A retail outlet which sells a product of only one manufacturer is termed as:

  1.  itinerant trader
  2.   multiple shop
  3.  tied shop 
  4.  top shop


(viii)  Which ofthe following is NOT normally done by the wholesaler?

  1.  Breaking the bulk
  2. Buying goods from producers
  3.  Market research
  4. Selling goods to consumers


(ix)     Home trade is divided into:

  1.  export trade and import trade
  2. foreign trade and international trade
  3.  retail trade and wholesale trade 
  4.  trade and aids to trade


(x)       An agent who sells goods at a public auction is:

  1.  a broker
  2. a del-credere agent
  3. a factor
  4. an auctioneer


2. Match the items in List A with the correct response in List B by writing the letter of the correct response below the number of the corresponding item in the table provided.

LIST A LIST B
(i) Buying and selling of goods and services inside or outside the country.
(ii) Buying and selling of goods and services inside the country
(iii) Buying of goods in bulk from the producer and selling `them in reasonable quantities to retailers

(iv) Buying and selling of goods whereby exchange involves goods by goods.

(v) Selling of goods and services to other countries.

(vi) Activities that facilitate buying and selling of goods and services inside and outside the country.

(vii) Buying of goods from the wholesalers in large quantities and selling them to the consumers in smaller quantities.

(viii) Buying of goods and services from outside the country.

(ix) Buying and selling of goods and services beyond a country's boundaries

(x) The movement of goods and services from one place to another whether inside or outside the country

  1. Foreign trade
  2. Barter trade
  3. Retail trade
  4. Warehousing
  5. Trade
  6. Transportation
  7. Commerce
  8. Wholesale trade
  9. Auxiliary to trade
  10. Advertising
  11. Export trade
  12. Production
  13. Communication
  14. Import trade
  15. Home trade


3. Complete the following sentences by filling in the blanks with correct word(s):

(i) Goods which are used in production of other goods in production process are called

(ii) The paths through which products follow from the producer to the final consumer is known as

(iii) The table which shows the quantity of goods supplied against their prices is called

(iv) Small scale retailers who move from place to place carrying their goods on their shoulders are called

(v) is an ability of a commodity to satisfy human needs or
wants.

(vi) The costs of production which do not change according to the level of output are called

(vii) Creation of goods and services to satisfy human wants is known as

(viii) An arrangement of stocks in a warehouse in a way that old stocks can easily be identified from new ones is known as

(ix) Goods which are used directly by the final consumers are categorized as .........

(x) A large building which is specifically made for the storage of goods before use is called



SECTION B

Briefly describe the following terms:

(a) Luxury (goods)

(b) Constructive industries

(c) Deferred payment

(d) Consumers

(e) Stock administration



(a) Who is a "trader"?



(b) Briefly explain functions of a wholesaler.



SECTION C

6. The following details were extracted from the book of Makoko for

the year ending 31/07/2014.

Purchases ........Shs 500,000

Opening........ Shs 80,000

Closing stock ........Shs 40,000

Minimum stock level .......kg. 120

Daily sales volume ........kg. 80

Delivery time ....... 5 days

By using the information given above, calculate the following showing clearly all the workings.

(a) Average stock

(b) Cost of goods sold

(c) Rate of stock turn

(d) Order point



7. (a) Define the term "specialization".

(b) Explain six disadvantages of specialization.



FORM TWO COMMERCE MULTIPLE CHOICE 2012

The role of commerce in the process of production is to make:

  1. direct services reach ultimate consumers
  2.  distribution of goods and services to retailers
  3.  distribution of goods and services to wholesalers
  4. goods and services produced to reach ultimate consumers


 When there is an increase in supply, the supply curve always shifts.

  1.  downwards
  2. from left to right
  3.  from right to left 
  4. upwards


(iii)      Goods produced create utility when they:

  1. are stored in a warehouse
  2.    reach the final consumers
  3.   reach the manufacturers shop
  4. reach the retail shop


(iv)      ... ... ... includes all the activities necessary in bringing goods and services into the market:

  1.   market event
  2.  marketing
  3. market research 
  4. market price


(v)       One of the following is the quality of the retailer:

  1.   being honest
  2.  making payments
  3.  producing goods
  4. transporting goods


(vi)      A profit percentage which is calculated on sales is called:

  1. gross profit
  2. margin
  3. mark up
  4. net profit


(vii)    The art of transmitting information and ideas by word of mouth, writing or by other means is called:

  1.  advertising
  2.  communication
  3. insurance 
  4. transport


(viii)   Portability can be defined as ability to:

  1.   carry things easily
  2.  keep things
  3.   pull things easily
  4.  store things


(ix)      A document which contains a list of goods offered for sale by traders is called:

  1.  an invoice
  2.  an order
  3.  catalogue 
  4.  price tag


(x)       Steps through which goods reach the consumers are termed as:

  1.  chain of distribution 
  2. chain of production
  3.  means of carriage
  4.  means of production


2. Choose the correct term from List B which matches with the explanation in List A, and then write the letter below the number of the relevant explanation in the table provided.

LIST A LIST B

(i) A document issued when goods have been bought or sold on cash basis

(ii) Applies to any activity carried out with an intention of making profit

(iii) Elasticity that is equal to one Is a price paid for use of land as a factor of production and other immovable assets

(iv) Is payment made to a person who does work on behalf of another

(v) Is the technique used to transfer risks arising from price fluctuation

(vi) Is the technique used to transfer risks arising from price fluctuation

(vii)Is a person who represents buyers and sellers in negotiating a purchases or sale without physical handling of goods

(viii) Merchant agent who sells goods in auction mart

(ix) Physical counting of items of stocks at given period of time.

(x) The movement of labour from one occupation to another

  1. Auctioneers
  2. A receipt
  3. Broker
  4. Business
  5. Commission
  6. Hedging
  7. Mobility of labour
  8. Rent
  9. Sales
  10. Stock taking
  11. Stock turnover
  12. Supply schedule
  13. Tertiary production
  14. Unitary elasticity
  15. Unitary demand




3. Complete each of the following statements by filling in the blanks with the correct word(s):

(a) A shop which sells a particular specialized line of goods is called . . . . . . .

(b) Costs which don't vary with the level of output are referred to as . . . . . . .

(c) The change of the form of raw materials into useful products is called . . . . . . .

(d) The cleaning, dusting and sorting out spoilt goods in a store is termed as . . . . . . .

(e) The demand curve which slopes upwards from left to right is known as . . . . . . .

(f) The difference between selling price and cost price is referred to as . . . . . . .

(g) The exchange of goods for goods is . . . . . . .

(h) The product which remains the property of the seller till the last instalment has been paid is referred to as . . . . . . .

(i) The services given by teacher and medical doctor are good examples of . . . . . . .

The type of retail trade by which orders are placed, sent and goods are received through the postal services is . . . . . . .



SECTION B

SHORT ANSWER QUESTIONS

4. Write short notes on each of the following terms:

(a) Joint demand

(b) Cash discount

(c) Peddler

(d) Private warehouse

(e) Capital goods



5. (a) Define the term "Specialization".



(b) Briefly explain five advantages of specialization.



ESSAY AND PROBLEM SOLVING QUESTIONS

6. (a) Define the term "Order point".



(b) Kinyamwezi Company ordered "Vitenge" from Urafiki Textile Mills. It normally takes the company 10 days to receive a consignment from the date of sending an order. The company's daily sales volume is 20 pairs of vitenge and maintains a minimum stock of 60 pairs of vitenge; calculate the company's order point.



7. Briefly explain five problems facing home trade in Tanzania.



FORM TWO COMMERCE MULTIPLE CHOICE 2011

(i) Which of the following activities is not involved in the study of commerce?

  1. A study of auxiliary services
  2.   A study of how factors of production can be utilized to the optimal point so as to achieve more goods and services.
  3.  A study of how best the bank clerks could be organized so as to satisfy the needs of a consumer
  4.  A study of trade and the principal activity in the distribution of goods


(ii)   The last person in the distribution chain is:

  1.   consumer
  2. consumer and retailer
  3. manufacturer
  4.   retailer


(iii)The ability of goods and services to satisfy human wants is known as:

  1.  production
  2. specialization
  3.  subsistence
  4.  utility


(iv)Distinguishing mark attached to the product and which cannot be used by any other producer is called:

  1. brand name
  2. kite mark
  3. producer mark
  4.  trade mark


(v)    A retailer may prefer to deal with a wholesale firm because:

  1.  there is less likelihood of loss through damage
  2. they break bulk and re-pack the goods
  3.  they offer a large choice of goods from different manufacturers
  4.  they provide storage for goods until the retailer needs them.


(vi)Variable cost is that which varies with:

  1. company position
  2. output
  3.  technology
  4.  time


(vii)         The exchange of goods and services among different countries is called:

  1.  barter trade
  2. domestic trade
  3. foreign trade
  4.  internal trade


(viii)       Re-order level is the level:

  1. necessary to safeguard against delays
  2. when new stock is to be sold
  3.  when new stock is to be ordered
  4.  when supplies are received


(ix)An aid to trade that safeguards goods and trade against loss is called:

  1.   advertising
  2. communication
  3.  insurance
  4. warehousing


(x)    A building which is usedto store goods on payment:

  1.  bonded warehouse
  2. private warehouse
  3. public warehouse
  4. goods warehouse


Choose correct term from Group B which matches with explanation from Group A, the write the letter below the number of the relevant explanation in the table provided.

Group A

(I) A document issued when goods have been bought or sold on credit.

(ii) Are those retailers who carry goods in the boxes and call up customers at their places.

(iii) Place where imported goods arc kept while waiting for the payment of custom duty.

(iv) Process of dividing work according to skills of the workers.

(v) Production for one's own use.

(vi) The amount of goods or money remaining after the satisfaction ants.

(vii) The graphical representation of demand schedule.

(viii) The number of times the average stock held turned over during a period.

(ix) The situation whereby different commodities com use of certain resources in the pete in the process of production.

(x) Ways through which goods flow from consumers, manufacturers to final

Group B

  1. Bonded warehouse
  2. Competitive demand
  3. Composite demand
  4. Demand curve
  5. Direct production
  6. Distribution chain
  7. Division of labour
  8. Indirect production
  9. Invoice
  10. Itinerant traders
  11. Private warehouse
  12. Rate of stock turn
  13. Supply curve
  14. Surplus Tied shop



3. Complete the following statements by filling in the blanks with correct word(s).

(a) Large self-service shop located away from the town centre selling a great variety of goods is called

(b) It occurs when demand and supply curves intersect......

(c) The exchange and distribution of goods and services is termed as ......

(d) The cost of producing one more unit of output is known as......

(e) The labour that comes as a result of education and training is called ......

(f) The process of finding the value of stock held is ....

(g) Periodical valuing of all goods on hand is termed as....

(h) Public and personal services are types of.....services.

(i) The reward or payment of capital is .....

(j) The situation of increasing or decreasing quantity supplied mainly caused by the change of the price of a commodity is



SECTION B

4. Write short notes on the following terms:

(a) Tertiary production

(b) Wholesale trade

(c) Consumer

(d) Hawkers

(e) Sales promotion



5. (a) Define the term "storage".



(b) Briefly explain five advantages of a warehouse.



SECTION C

6. Denis Company, bought goods for cash for Tshs. 20,000/= and sold at Tshs. 25,000/=. Calculate the company's:

(a) Profit margin



(b) Mark up price



7. Briefly explain five functions of stock administration.



FORM TWO COMMERCE MULTIPLE CHOICE 2010

(i) The main purpose of commerce is to bridge the gap between:

  1. Manufacturers and wholesalers
  2. Producers and consumers 
  3.  Retailers and consumers
  4. Wholesalers and Retailers


Demand curve normally slopes from:

  1. left to right downwards 
  2.  left to right upwards 
  3.  right to left downwards 
  4. right to left upwards


(iii)     The process of making goods for ones own use is termed as:

  1.  direct production
  2. indirect production 
  3.  level of production
  4. types of production


(iv)      One of the main features of a supermarket is:

  1.  cash payments
  2. giving cash discount
  3.   selling on credit 
  4.  self services


(v)       Retailing does not include:

  1. bonded warehouse
  2. kiosks
  3.  mobile shops
  4.   market stalls


(vi)      The resources in the form of money or property that a person or an organization has for establishing and running a business is referred to as:

  1.   capital
  2. coins
  3.  fund
  4.  materials


(vii)    Domestic trade involves:

  1. Buying goods within the country
  2. Buying and selling goods with other countries
  3.  Buying and selling goods within the country 
  4.  Selling goods within the country


(viii)  The production process ends when goods reach the:

  1. Consumers
  2. Producers
  3. Retailers
  4.  Wholesalers


(ix)      Barter trade is the system of exchanging goods for:

  1.  coins
  2.  goods
  3. further productions 
  4.  services


(x)       What will be the effect of an increase in supply?

  1.  Decrease in price and increase in quantity demanded
  2. Decrease in price and decrease in quantity demanded
  3. More goods in the Market
  4.  Rise in price and decrease in quantity demanded


FORM TWO COMMERCE MULTIPLE CHOICE 2009

(i) The exchange and distribution of goods and services is referred to as:

  1.  commerce
  2.  production
  3.  stock control
  4. trade


Which of the following set represents the branches of production?

  1. Industry, Commerce and Aids to Trade
  2. Industry, Commerce and Direct services
  3. Industry, Commerce and Services and Direct Services
  4. Industry, Trade and Direct Services


(iii)    When a commodity is used for two or more purposes the demand for such a commodity is called:

A.         competitive demand

B.         composite demand

C.         derived demand D. joint demand



(iv)    The quantity of a commodity supplied usually increases when the:

  1.  income of consumer falls
  2. price of that commodity remains constant
  3. price of that commodity falls
  4.  price of that commodity rises


(v)      The following are the functions of retailers except:

  1.  giving advice to customers
  2.  holding stock in small quantities
  3.  holding stock in large quantities 
  4.  selling goods to customers


(vi)    Which of the following is not a function of a wholesaler?

  1.  Auditing
  2. insurance
  3. Market research 
  4. warehousing


(vii)  Trade means:

  1.  buying and selling of goods and services
  2.  buying of goods and services
  3.  selling of goods and services
  4. selling of goods and factors of production


(viii)Which level is reached after receiving new delivery?

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


(xi) Which of the following is not a function of the warehousing in preparing goods for sale?

  1. Breaking
  2.  Manufacturing
  3. Packing 
  4.  Sorting


(x) The art of making goods and services from production to be known by the whole public is called:

  1. advertising
  2.  broadcasting
  3.  communicating
  4. publishing


FORM TWO COMMERCE MULTIPLE CHOICE 2008

The main purpose of Commerce is to bridge the gap between:

  1. producers and consumers
  2.  retailers and consumers
  3. manufactures and wholesalers 
  4.  wholesalers and retailers


(ii)       Making goods for ones own consumption is termed as:

  1. direct production
  2.  indirect production
  3. self employment
  4.  self services


(iii)     If a small change in price brings about a greater change in quantity demanded, then the price elasticity of demand is said to be:

  1. constant
  2. elastic
  3.  inelastic 
  4.  unitary


(iv)     When there is an increase in supply, the supply curve always:

  1.  remains constant
  2.  shifts from left to right
  3.  shifts from right to left 
  4.  shifts upward


(v)       One of the following is a quality of the retailer:

  1. being honest
  2.  making payments
  3. producing goods
  4.  transporting goods


(vi)     A wholesaler obtains goods from:

  1. consumers
  2.  producers
  3.  retailers
  4. manufacturers


(vii)   A bonded warehouse is used to store:

  1.  goods against theft
  2.  goods which are dangerous or inflammable
  3. imported goods of a particular manufacturer only 
  4.  imported good till duty is paid on them


(viii)Domestic trade involves:

  1. buying goods within the country
  2. selling goods within the country
  3.  buying and selling goods within the country
  4. buying and selling goods with other countries


(ix)     The cost of production which changes as the output changes is called:

  1.  Average cost
  2. Fixed cost
  3. Total cost
  4.  Variable cost


(x)      Breaking the bulk means:

  1.  cutting down large quantities into small lots
  2. cutting down small quantities into large ones
  3. giving cash discount
  4. raising prices of commodities


FORM TWO COMMERCE MULTIPLE CHOICE 2007

(i)       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


(ii)      A warehouse which is used to store goods on payment is called:

  1. Public warehouse
  2. Private warehouse
  3. Bonded warehouse
  4.  Waiting room


(iii)    The point where demand and supply curves intersect is known as:

  1.  centre point
  2. equilibrium point
  3. zero point
  4.  mark-up point


(iv)    The distinguishing 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


(v)      The following do not posses permanent business premises:

  1. itinerant traders
  2.  tied shop traders
  3. chain stores
  4. multiple shops


(vi)    One of the main features of a supermarket is:

  1.  selling on credit
  2.  raising commodity prices
  3. shopping by post 
  4.  self-service


(vii)  A service that takes care of risks involved in trade is:

  1.  insurance
  2.  banking
  3. a police station 
  4.  warehousing


(viii)Production ends when:

  1. manufacturing process ends
  2. goods finally reach retailers
  3. goods are stored in bonded houses 
  4. goods reach final consumers


(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


FORM TWO COMMERCE MULTIPLE CHOICE 2005

(i)       Which of the following is not an aspect of commerce?

  1.  Provision of information about goods and services
  2. Keeping hens to lay eggs for family consumption
  3.  Distribution of goods 
  4.  Insurance


(ii)      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


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

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


(iv)    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


(v)      Which ofthe following is notafunction of stock administration?

  1. Issue of stock
  2.  Care of stock
  3.  Profit making
  4. Receiving goods


(vi)    Tea and coffee form what type of supply?

  1.  Composite supply
  2. Joint supply
  3. Competitive supply 
  4. Derived supply


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

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


(viii)Departmental store refers to:

  1. A number of shops in one roof
  2.  A number of similar shops scattered at different areas
  3. A store that sells different types of goods
  4. A store that sells one variety of goods only


(ix)    Industries which assemble already manufactured goods are

known as:

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


(x)      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


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