(For Both School and Private Candidates)

Time: 2:30 Hours  Monday, 15th October 2012 p.m.


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

2. Answer all questions in sections A and B and two(2) questions from section C.

3. Calculators are not allowed in the examination room.

4. Cellular phones are not allowed in the examination room.

5. Write your Examination Number on every page of your answer booklet(s).

SECTION A (20 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 beside the item number.

(i) When a visible imports exceed visible exports, a country is said to have

  1.  a favourable balance of trade
  2.  a favourable balance of payment
  3.  unfavourable balance of trade
  4.  unfavourable balance of payment
  5.  unfavourable balance of payment and trade
Choose Answer :

(ii) Which of the following is the basic feature of all multiple shops?

  1.  Numerous departments.
  2.  High prices of goods sold.
  3.  Similar goods sold in all departments.
  4.  Different goods sold in all departments.
  5.  Goods are sold under one roof.
Choose Answer :

(iii) Consumer goods are best defined as goods that

  1.  are bought and sold in shops 
  2.  are needed for direct satisfaction
  3.  help to produce other goods 
  4.  are consumed by human beings 
  5.  are provided by nature.
Choose Answer :

(iv) A marketing board is a board set up to

  1.  advise co-operatives only
  2.  deal with exports
  3.  buy goods from importers and sell them
  4.  buy products from producers and sell them
  5.  export manufactured goods.
Choose Answer :

(v) Which of the following is the benefit of sole traders over limited companies?

  1.  They have unlimited liability.
  2.  They do not pay VAT.
  3.  They find it easier to raise capital.
  4.  They make decisions quickly.
  5.  They have no risks associated with their personal assets.
Choose Answer :

(vi) Which of the following industries are concerned with obtaining raw materials from natural resources?

  1.  Constructive industries. 
  2. Manufacturing industries.
  3. Building industries. 
  4. Mining industries.
  5. Extractive industries.
Choose Answer :

(vii) Which of the following is NOT necessary for the development of commerce in a country?

  1. Increased industrial production. 
  2. Improved transport system
  3. Direct production of goods. 
  4. Extensive advertising. 
  5. Improved banking system.
Choose Answer :

(viii) The list of documents prepared in the course of commercial transaction in the right order of being raised is

  1. Can be exchanged for gold at the Bank of Tanzania.
  2. Can be tendered in payment of debt
  3. Can be refused by creditor who would prefer a cheque 
  4. Can be printed by any commercial bank. 
  5. Can be printed by any internal bank.
Choose Answer :

(ix) A letter of credit is sent by

  1. exporter’s bank to a correspondent bank
  2. improter’s bank to a correspondent bank
  3. importer to exporter
  4. a central bank to a correspondent bank
  5. importer’s agent to the exporter’s agent.
Choose Answer :

(x) An advalorem tax is an indirect tax collected

  1. per unit of goods regardless of the value
  2. on home produced goods according to the value
  3. directly from consumers’ incomes
  4. on each good according to the value
  5. on goods from abroad according to the value.
Choose Answer :

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