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, 14thNovember 2014 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) Advertising is important because it mainly
(ii) Which of the following are the major sources of partners’ capital?
(iii) Which one of the following statements is true of a sole trader?
(iv) The main reason for the existence of public corporations is to
(v) Which one of the following documents is used by a buyer to gather information from the seller?
(vi) Road transport is used mainly as as a method of carrying goods within the country because it is the
(vii) Which one of the following is a method used by government to protect consumers?
(viii) A debit note is used to correct
(ix) Which of the following activities cannot be classified as productive?
(x) Which of the following reasons does not justify the existence of parastatal enterprises?
2. Match the items in Column A with the responses in Column B by writing the letter of the correct response beside the item number in your answer booklet.
COLUMN A | COLUMN B |
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SECTION B (40 Marks)
Answer all questions in this section.
3.(a) Complete the following table:
Fixed Assets | Current Assets | Long term Liabilities | Current Liabilities | Owners Equity | Working Capital |
300,000 | 60,000 | 180,000 | 30,000 | (i) | (ii) |
(iii) | 120,000 | 90,000 | (iv) | 375,000 | 75,000 |
480,000 | (v) | (vi) | 195,000 | 300,000 | 45,000 |
(b)The following information was extracted from the books of a trader:
Stock | Sh. 600,000 |
Debtors | Sh. 200,000 |
Cash at bank | Sh. 100,000 |
Creditors | Sh. 600,000 |
Sales | Sh. 1,000,000 |
Purchases | Sh. 800,000 |
From the above information, calculate:
(i)Current ratio
(ii)Quick ratio
(iii)Debtor’s as a percentage to sales
(iv)Creditor’s as a percentage to purchases.
View Ans4.(a) Enumerate five ways in which the community benefits from learning business studies.
View Ans(b) State five differences between direct and indirect production.
View Ans5.(a) Briefly explain five services that are rendered by middlemen to producers in the chain of distribution.
View Ans(b)Mention five factors that may inhibit entrepreneurial development in a country.
View Ans6.(a) Outline five factors which may determine the amount of premium paid by an insured.
View Ans(b) Give five ways in which land is useful as a factor of production.
View AnsSECTION C (40 Marks)
Answer two (2) questions from this section.
7.(a) Sales promotion plays important roles in commerce. Discuss by giving five relevant points.
(b)Mawazo Mema is a Hotel Manager. Describe six possible ways which he can use to motivate his employees to work hard and create business for the hotel.
View Ans8.(a) Describe five factors that should be considered before establishing new industries.
View Ans(b) Explain five benefits enjoyed by public companies.
View Ans9.(a) It is often argued that in a commercial system such as that existing in Tanzania a wholesaler cannot be eliminated. Justify.
View Ans(b)Describe under what circumstances banks will dishonour a cheque even if the drawer has enough money in his account.
View Ans10.(a) Explain five methods used by a country to control imports.
View Ans(b)Critically analyse five disadvantages associated with sole proprietorships.
View Ans