COMMERCE

(For Both School and Private Candidates)

Time: 3 Hours Year: 2007

SECTION A

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

(i) Businessmen who do not have permanent business premises are called:

1. itinerant traders
2. gamblers
3. brokers
4. under winters
5. retailers

(ii) A progressive tax is one:

1. which is paid at each stage of manufacture or sale.
2. where the more wealthy you are, the more you pay.
3. which is paid by property developers.
4. where the rich pay a higher percentage than the poor.
5. which is lower when income is invested in new equipments

(iii) Import of foreign produced goods into a country for re-export is called:

1. hypothecation 
2. balance of payment
3. invisible trade 
4. entrepot trade 
5. import trade

(iv)I bought 100 units of a certain commodity from Macha & Co. Ltd. The gross price is shs. 10 per item and trade discount is allowed at 20%. If I settle the debt within 30 days I will be allowed a cash discount of 4%. I intend to pay immediately. How much should I pay?

1. 500 
2. 395 
3. 450 
4. 894
5. 768

(v)The following are the factors which affect or influence demand:

1. Weather
2. Price of commodity
3. Consumer's income
4. Consumers taste and habit
5. All of the above

(vi)Auxiliary services may be defined as the activities aimed at:

1. assisting the consumers directly.
2. helping traders in their business.
3. making work of those involved in manufacturing of essential goods easy.
4. bridging the gap between the producer and the consumer.
5. assisting the producer directly.

(vii)The most essential characteristic of money Is:

1. acceptability
2. portability
3. divisibility
4. durability 
5. scarcity

(viii)Third party insurance indemnifies the insured against:

1. one-third of any loss suffered by a group or party insured.
2. the insured person's first three claims only.
3. injuries to a maximum of three passengers in a car accident.
4. claims by the party suffering damage but not the insured person or his vehicle causing the damage.
5. the actual total loss to the third person only.

(ix) Which of the following is not a function of a central bank?

1. To issue notes and coins
2. To operate the government's bank accounts 
3. To determine rates of taxation
4. To assist the government in caring out the monetary policy.
5. Lender of last resort.

(x) Certificate of incorporation is the certificate which is issued by the.

1. Register Master
2. Chamber of Commerce 
3. Registrar of companies
4. Clearing agent
5. Co-operative society