THE UNITED REPUBLIC OF TANZANIA  NATIONAL EXAMINATIONS COUNCIL OF TANZANIA

 FORM TWO NATIONAL ASSESSMENT

 061 COMMERCE  

Time: 2:30 Hours Year: 2024

Instruction

1. This paper consists of Section A, B and C with a total of ten (10) question
2. Answer all questions in the space provided
3. Section A and C carry fifteen (15) marks each and section B carries seventy (70) mark.
4. All writings should be in black or blue ink, except drawings which must be in pencil
5. Cellular phones and unauthorized materials are not allowed in the assessment room
6. Write your Assessment Number at the top right-hand corner 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 from the given alternatives and write its letter in the box provided.

(i) The following are the factors to be considered when choosing a mode of transport except:

1. the value of goods to be transported.
2. the cost of insurance to cover in case of risk.
3. the distance from one place to another.
4. the cost of a mode of transport.

(ii) At the end of accounting period on 31st December 2019, H.H. Company Ltd closed its business operation for six hours to allow the storekeeper to check the quantities of stock held in warehouse. Which function of stock administration did the company conduct?

1. Stock issuing
2. Stock levels
3. Stock valuation
4. Stock taking

(iii) Which one is an example of joint supply?

1. Car and petrol
2. Cotton and clothes
3. Milk and butter
4. Tea leaves and sugar

(iv) Which feature distinguishes consumer co-operative societies from producer co-operative societies?

1. They sell varieties of products and services
2. They provide storage facilities to farmers
3. They provide transport to collect and deliver goods to the market
4. They supply goods at low price to its members

(v) Which one is an example of an extrinsic motivation to an entrepreneur of a soft drink industry in Tanzania?

1. Respect
2. Responsibility
3. Passion
4. Participation

(vi) The extractive industry is best described as:

1. Indirect payment
2. Direct payment
3. Primary level of production
4. Tertiary level of production

(vii) What term is used to describe the cost that does not change regardless of the level of production?

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

(viii) One of the retailers use abusive language to his customers in such a way that most of them stopped from buying his goods. Which quality of a good retailer is he lacking?

1. Honesty to customers
2. Pleasant to customers
3. Good administrator
4. Forecasting customer's demand

(ix) Which one of the factors is to be held constant so as to make shift in demand of a particular commodity?

1. Price of a commodity
2. Consumers' income
3. Population size
4. Taste and preferences

(x) Mayala is an entrepreneur who has decided to dedicate and sacrifice his time, money and energy in order to succeed in his business. Which one of the attributes of a successful entrepreneur is shown by Mayala?

1. Innovativeness
2. Commitment
3. Perseverance
4. Calculated risk taking

2. Match the descriptions of forms of trade in List A with their relevant forms of trade in List B by writing the letter of the correct response beside the corresponding item number in the table provided. 

3. Auxiliary services facilitate production of goods and services. Using five points, briefly validate this statement.

4. Briefly explain five benefits of entrepreneurship.

5. Briefly explain five types of wholesalers.

6. Briefly explain the meaning of the following commerce terminologies:

1. Barter trade
2. Foreign trade
3. Extractive industries
4. Fixed cost
5. Tertiary level of production:

7. Briefly explain the functions performed by entrepreneurs. Give five points.

8. Zam Zam Trader buys goods for TZS 420,000/=. The business wishes to make a gross profit of 20% on sales. Its business expense is 60% of gross profit. Calculate the following items for Zam Zam Traders:

1. Selling price
2. Gross profit:
3. Markup percentage:
4. Expenses:

9. Briefly explain five advantages of water transport when compared to road transport.

SECTION C (15 Marks)

Answer question ten (10).

10. Explain five factors for the increase in supply of the product in the market.