(For Both School and Private Candidates)

Time: 3 Hours Year: 2020


I. This paper consists of sections A, B and C with a total of ten (10) questions.

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

3.Section A carries twenty (20) marks, section B fifty (50) marks and section C carries thirty (30) marks.

4.Communication devices and any unauthorised materials 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)- (xv), choose the correct answer from among the given alternatives and write its letter beside the item number in the answer booklet provided.

(i)The shipping company charged one of its customers with a demurrage fee. Which condition is not fulfilled by such a customer?

  1. Loading the goods on time
  2. Offloading the goods on time
  3. Paying freight charges on time
  4. Paying insurance charges on time
  5. Keeping the records of all goods loaded in the ship
Choose Answer :

(ii)Why elimination of a wholesaler from the channel of distribution does not affect the flow of goods from the manufacturer to the final consumer?

  1. The wholesaler has very small amount of capital.
  2. The wholesaler performs the only selling function.
  3. All goods involved in the channel of distribution are branded.
  4. In regardless of the financial position, manufacturer can sell direct to final users. 
  5. The wholesaler's functions can be performed by other agents.
Choose Answer :

(iii)Suppose you are in the process of insuring your house against fire and you have already paid the premium. Which document is temporarily issued to you by an insurer as an evidence of premium payment?

  1. Assurance policy 
  2. Insurance cover note 
  3. Insurance policy 
  4. Insurance claim form
  5. Insurance proposal form
Choose Answer :

(iv)A business manager must obey the management functions so as to attain the business goals. In which function does a manager is involved in manpower planning and recruitment?

  1. Staffing 
  2. Directing 
  3. Planning
  4. Organizing 
  5. Controlling
Choose Answer :

(v)By being a Form Four students of 17 years old, you want to be admitted in one of the partnership dealing with selling of books. In which type of partners would you fit? 

  1. Dormant partner 
  2. Quasi partner 
  3. Active partner
  4. Minor partner
  5. General partner
Choose Answer :

(vi) Suppose you are self- employed in carpentry activities but you have spent two days to produce dining table for your family; In which category does the production of such  table be grouped?

  1. Indirect production
  2. Direct production
  3. Tertiary production 
  4. Direct services
  5. E Indirect services
Choose Answer :

(vii)Which method would Tanzania adopt if she wants to completely restrict importation of sugar from Zambia?

  1. Imposing heavy import duties
  2. Using government agencies
  3. Provision of customs drawback
  4. Fixing import quotas
  5. Total ban
Choose Answer :

(viii)How can different drinking water industries in Tanzania differentiate the same products they offered for sale in the market?

  1. Through packages 
  2. Through grading %
  3. Through branding
  4. Through standardizing 
  5. Through price
Choose Answer :

(ix) Kajewa is a large scale retailer who wants to identify the fast moving goods in his business. Which stock calculation will Kajewa apply to arrive at correct identification?

  1. Average stock
  2. Mark up percentage
  3. Cost of goods sold
  4. Margin percentage
  5. Rate of stock turn
Choose Answer :

(x)If you have been employed as machine operator in one of the soft drinking industry and your salary ranked under low income earner category, which tax system will favor you as one of the low income earners?

  1. Indirect tax 
  2. Regressive tax 
  3. Direct tax 
  4. Progressive tax 
  5. Proportional tax
Choose Answer :

(xi)Some entrepreneurs debated that internal motivation in entrepreneurship is wastage of resources. Which statement evidences that internal motivation is an important aspect in entrepreneurship?

  1. It creates employment opportunity to workers. 
  2. It reduces regional development imbalance.
  3. It stimulates employees to accomplish the desired goals.
  4. It assists decision making in a business.
  5. It encourages consumption of local resources in production.
Choose Answer :

(xii)When drawing a supply curve it is automatically that the curve slopes upwards from the left to the right. Why does the supply curve slopes upward from the left to right?

  1. The lower the price the higher the quantity demanded and vise-versa.
  2. When the price held constant the quantity supplied increases.
  3. The lower the price the higher the quantity supplied and the vise-versa.
  4. The higher the price the higher the quantity supplied and the vise-versa.
  5. When the factors other than price held constant the quantity supplied increased.
Choose Answer :

(xiii)Which bank account would you advise a trader to open if he/she wants to deposit/withdraw cash at any time and allows overdraft to its customers?

  1. Joint account 
  2. Fixed deposit account
  3. Minor account
  4. Saving account 
  5. Current account
Choose Answer :

(xiv)Suppose you have attended a commercial debate with the motion "aids to trade is not necessary element of commerce". Which option will you choose as correct to oppose the motion?

  1. Aids to trade support production and not commerce.
  2. Aids to trade attract more buyers hence, low price for the goods.
  3. Aids to trade facilitate trade to take place smoothly.
  4. Aids to trade act as a link between commerce and production.
  5. Aids to trade is used to determine price of the goods produced.
Choose Answer :

(xv)The following are the roles of entrepreneurship in economic development except:

  1. creation of friendship among the countries
  2. creation of employment opportunities
  3. improvement on peoples' living standards
  4. improvement in per capital income
  5. capital formation
Choose Answer :

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