(For Both School and Private Candidates)

Time: 2:30 Hours Friday, 10th November 2015 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 and cellular phones are not allowed in the examination room.

  4. 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.

(i) A document which serves as an invitation to the general public to buy shares is called:

  1. Memorandum of Association
  2. Articles of Association
  3. Prospectus
  4. Certificate of trading
  5. Certificate of incorporation
Choose Answer :

(ii) Why is a debit note issued?

  1. To correct any error in an invoice
  2. To correct an undercharge in an invoice
  3. To correct an overcharge in an invoice
  4. To correct an overcharge in an account
  5. To correct an undercharge in an account
Choose Answer :

(iii) Which principle is applied when a country decides to produce goods or services that bring a greatest advantage to the country?

  1. Absolute advantage
  2. Competitive advantage
  3. Comparative advantage
  4. Cooperative advantage
  5. Continuous advantage
Choose Answer :

(iv) Find the price elasticity of demand using proportionate change method for maize when demand falls from 800kg to 600kg due to increase in price from shs 40 per kg to shs 60 per kg.

  1. 3/4
  2. -3/4
  3. 20/21
  4. -20/21
  5. 1/2
Choose Answer :

(v) Which of the following should not be considered when communicating?

  1. The source of communication
  2. The consent of the message
  3. The process by which the communication is produced
  4. The evidence of communication
  5. The method by which it is transmitted
Choose Answer :

(vi) Production can generally be classified as:

  1. constructive, extractive and manufacturing industries
  2. industries, commerce and direct services
  3. industries, trade and aids to trade
  4. home trade, aids to trade and direct services
  5. foreign trade, aids to trade and direct services
Choose Answer :

(vii) A document showing the details of commodity sent and its total value which the receiver will have to pay is known as

  1. Consignment note
  2.  Delivery note
  3. Invoice  
  4. Proforma invoice
  5.  Consular invoice
Choose Answer :

(viii) Which of the following canons of taxation shows clearly the amount to be paid to the state by the tax payer?

  1. Convenience 
  2. Equity
  3. Certainty   
  4. Economy
  5. Productivity
Choose Answer :

(ix) Ex works is a price quotation which presents the cost of goods as they leave the:

  1. bonded warehouse premises
  2. manufacturers premises
  3. port of destination
  4. port of loading
  5. public warehouse premises
Choose Answer :

(x) The bank that issues the legal tender currency in any country is

  1. Commercial banks
  2. Central bank
  3. Investment bank
  4. Bank of Tanzania
  5. National Bank of Commerce
Choose Answer :

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