THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL

CERTIFICATE OF SECONDARY EDUCATION EXAMINATION

061 COMMERCE

(For Both School and Private Candidates)

Time: 2:30 Hours Friday, 11^th November 2016 p.m.

Instructions

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 beside the item number in your answer booklet.

(i) Goods can mainly be classified as

1.  durable goods and perishable goods
2.  consumer goods and producer goods
3.  consumer goods and economic goods
4.  producer goods and free goods
5.  producer goods and economic goods.

(ii) A cheque which is presented to the payee before the date on it is called

1.  dishonoured cheque 
2.  crossed cheque
3.  stale cheque
4.  post-dated cheque
5.  open cheque.

(iii) Which one of the following is the disadvantage of departmental store to the seller?

1.  Wide choice of products.
2.  Convenience in shopping.
3.  Extensive use of advertising.
4.  Careful selection of goods.
5.  Services to customers.

(iv)The main reason for the existence of public corporations is to

1.  maximize profits for distributions to members of the public
2.  provide certain essential services to members of public
3.  enlighten the public on how to conduct their business
4.  sell shares to members of the public
5.  to distribute loss made by corporations to members of the public.

(v) Bi-lateral trade in international trade means

1.  a country has a greater part of her foreign trade with only one country.
2.  a country has a greater part of her foreign trade with only two countries.
3.  a country has a greater part of her foreign trade with several countries.
4.  a country has a greater part of her export trade to only one country.
5.  a country has a greater part of her import trade from several countries.

(vi) The capital employed is obtained by

1.  adding current assets to current liabilities
2.  adding current assets to total liabilities
3.  adding total assets to total liabilities
4.  adding total assets to working capital
5.  adding total liabilities to working capital.

(vii) A life assurance policy where an assured person promises to pay premium for a specified number of years is called

1.  Whole life policy
2.  Endowment policy
3.  Annuity policy
4.  Family income policy
5.  Group life policy.

(viii) Which one of the following is not an important clause of a charter party?

1.  The parties to the agreement.
2.  The cargo to be carried.
3.  The freight to be paid for the voyage.
4.  The terms of the voyage.
5.  The passengers to be carried.

(ix) Which document is to be sent by the exporting country showing the list of goods needed to the importer who buy goods through an agent?

1.  letter of credit
2.  Bill of lading
3.  Certificate of origin
4.  An indent
5.  Bill of exchange.

(x) Which of the following is the correct form of transport?

1.  Water, land and air.
2.  Water, land and railway.
3.  Water, air and road.
4.  Sea, railway and air.
5.  Land, lakes and air.