'HIE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL OF TANZANIA 
CERTIFICATE OF SECONDARY EDUCATION EXAMINATION

061 COMMERCE

(For Both School and Private Candidates)

Time: 3 Hours Year: 2021

Instructions

1.  This paper consists of sections A, 13 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. Cellular phones and any unauthorized 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

(i) Which document is issued by the registrar of the companies to commence business operation?

1. Memorandum of association 
2. Partnership deep
3. Articles of association 
4. Certificate of incorporation
5. rtificate of trading

(ii) Mr. Bukaba wants to engage in hire purchase but he does not know its consequences. Identify one consequence that he can face.

1. He can own the property soon after payment of the first installment.
2. He can own the property soon after payment of the last installment.
3. Once he failed to pay other installments the seller cannot repossess the goods.
4. Once he failed to pay other installments the seller can repossess the goods.
5. He can pay all the amount required in cash and possess the property.

(iii) Which one is an example of constructive industry?

1. Fishing 
2. Lumbering
3. Road making 
4. Pot making
5. Cotton spinning

(iv) Suppose you have been employed in a bonded warehouse and one of the customers needs to collect his car from the warehouse. Which tax would you require the customer to pay before releasing the car?

1. Property tax 
2. Export duty
3. Exercise duty 
4. Value added tax
5. Custom duty

(v) What is the main source of funds used by insurance companies to pay for claims and administrative expenses?

1. Income from investments and premiums paid
2. Income from selling of shares and debenture to insured
3. The difference between the value insured and actual loss
4. Loan received from different financial institutions
5. Income from selling of the property destroyed and loans from friends

(vi) Mrs. Makuchi as house wife prepared a fresh fruits juice for her kids' consumption. In which type of production does the activity done by Mrs. Makuchi be grouped?

1. Primary production 
2. Tertiary production 
3. Personal services
4. Direct production 
5. Indirect production

(vii) Suppose Maiki and Juri are employed by Azam food processing industry and their monthly salary is Tsh. 1 million and Tsh. 1.5 million respectively. Which type of tax system is applied if both are charged with 18% income tax?

1. Tax incidence 
2. Proportional tax 
3. Progressive tax
4. Indirect tax 
5. Regressive tax

(viii) Suppose you are a marketing manager who wants to satisfy the target market at the same time achieves the marketing objectives. Which elements of market mix would you consider?

1. Branding, grading, standardizing and pricing
2. Product, price, brand name and promotion
3. Package, price, product and place
4. Product, price, promotion and place
5. Brand name, package, packaging and product

(ix) Why face to face business communication is advantageous to both retailer and final customers?

1. There is no need of keeping record of the message communicated.
2. It provides immediate feedback on the message communicated.
3. It reduces unnecessary noise between the sender and the receiver.
4. It promotes trust worth between the sender and the receiver.
5. The message communicated cannot be distorted.

(x) A written document prepared by an entrepreneur which describes the objectives of the proposed business and the steps necessary to attain those objectives is referred to as 

1. business plan 
2. business idea
3. business opportunity 
4. business innovation
5. business organization chart

(xi)You have learnt about the factors for the change in quantity demanded and the factors for the change in demand. Which factor would you opt for change in quantity demanded?

1. Change in weather 
2. Change in fashion
3. Change in price of a commodity 
4. Change in technology
5. Change in price of related commodities

(xii) How does business management support business in achieving its business goals?

1. It promotes staff creativity to increase output.
2. It enables the management to establish business objectives.
3. It can change the type of business to meet customers' demand.
4. It guides business manager on how to calculate business net profits.
5. It guides business manager on how to calculate business gross profits.

(xiii) Identify the appropriate international trade term which fit for the following transaction; Tanzania has paid Tsh. 30 million as payment of interest of loan from Canada.

1. Terms of trade 
2. Balance of trade
3. Deficit balance of payment 
4. Invisible trade
5. Visible trade

(xiv) Ms Mashikolo is an entrepreneur who owns a retail shop at city center where there are so many retail shops. "She succeeded in her business because she believes in her-self and her ability to achieve the goals set". Which characteristic of entrepreneurs is described by such statement?

1. Hard working 
2. Goals setter
3. Long-term commitment 
4. Creative
5. Self-confidence

(xv) One of the Form Four students argued that, some characteristics of departmental stores and multiple shops are similar. Which statement proves that the argument is correct?

1. They all work under one roof and one management.
2. They all sell the products of one manufacturer only.
3. They all sell on cash basis and have centralized management.
4. They all adopt centralized buying and decentralized selling.
5. They are located in different areas and each branch has its branch manager.