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.

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.