THE PRESIDENT’S OFFICE

MINISTRY OF EDUCATION, REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

COMPETENCE BASED  SECONDARY EXAMINATION SERIES

ANNUAL  EXAMINATION

FORM TWO

                                           COMMERCE

       061                                                                      

TIME: 2:30 HOURS                                                    November, 2021

Instructions

1.      This paper consists of sections A, B and C with a total of seven (7) questions.

2.      Answer all questions.

3.      Section A and B carry thirty (30) marks each and section C carries forty (40) marks.

4.      All answers must be written in the spaces provided.

5.      All writings must be in blue or black ink.

6.      All communication devices, Calculators and any unauthorized materials are not allowed in the examination room.

7.      Write Your Examination Number on the top right of every page.

SECTION A: (40 Marks)

Answer all questions in this section

1.      For each of the following items (i) - (x), choose the correct answer and write its letter in the box provided:

(i)                 The method of payment where the buyer sends money for the goods on ordering for them is known as:

A.    Cash on delivery

B.     Prompt cash

C.     Spot cash

D.    Cash with order.

(ii)              Which of the following types of warehouses enables Tanzania Revenue Authority to collect import duty? A. Public warehouse

B.     Bonded warehouse

C.     Wholesale warehouse

D.    Private warehouse.

(iii)            If a trader is given 20% trade discount and 5% cash discount for goods purchased at TZS 200,000/=, how much will he pay?:

A. TZS 150,000/= 

B. TZS 160,000/=

C. TZS 152,000/= 

D. TZS 120,000/=.

(iv)             The reason why people participate in exchange of goods is:

A.    To get money

B.     They over produce

C.     They prefer what is produced by others

D.    They specialize in production of different goods and services.

(v)               The process of checking and keeping record of the number of items in stock and their values is known as:

A.    Stock control

B.     Stock valuation 

C. Issuing of stock

D. Stock taking.

(vi)             The distribution, exchange of goods and service and activities that help in the movement of goods from the producer to the consumer is known as:

A.    Production

B.     Aids to trade

C.     Trade

D.    Commerce.

(vii)          Why are there more new business in the retail trades than in manufacturing?

A.    Few skills required to run retail business

B.     More capital is required to start retail trading

C.     Retailer can obtain bank loans without collateral security

D.    The retail trade is more profitable than manufacturing.

(viii)        Which one of the following activities is under primary production?

A.    Coffee processing

B.     Car manufacturing C. Road construction

D. Oil drilling.

(ix)             The system of installment selling where the buyer takes ownership of the property immediately after the first deposit is known as:

A.    Hire purchase

B.     Mortgaging

C.     Credit sales 

D. Deferred payment.

(x)               Given average stock at selling price TZS 144,000/= and the cost of sales of TZS 720,000/=. The rate of stock turn will be:

A.    4 times

B.     0.2 times

C.     5 times 

D. 0.8 times.

2.      Match the descriptions of Entrepreneurship in list A with the relevant response from List B by writing the letter of the correct response below the corresponding item number in the table provided.

Answer:

3.      (a) For each of the statements (i) – (x), write TRUE if the statement is correct or FALSE  if the statement is not correct in the space provided.

(i)                 Secondary level of production consists of manufacturing industry and constructive industry.        _________

(ii)              Price and income are among the factors which cause change in quantity demand for a particular commodity.               __________

(iii)            Employment enables people to have stable income throughout the year. _____

(iv)             Supply curve has a positive slope because as price of the commodity rises

                                fever goods will be supplied.                                                           ___________

(v)               Water, railway, air and road transport are the modes of transport.  __________

(vi)             When units produced equal to zero, then total cost of production will be equal to summation of all fixed cost incurred.                       ___________

(vii)          An aid to trade which involves making the public aware of the availability of goods and services in the market is television.              _________

(viii)        Production is classified into three major branches which are commerce,

                                business and direct services.                                                              __________

(ix)             Hypermarket is a large shopping center located away from the city center with a very large space for packing and selling variety of goods under self-service.          

        ___________

(x)               Trade mark is a system of giving name or symbol to a product to differentiate it from other similar product.       _________

(b) Complete the following sentences by writing the correct answer in the spaces provided

(i)                 A factor of production which is characterized by value appreciation is called ______________________________________________________________.

(ii)              A businessman who carries the goods and moves from one place to another looking for customers is known as  __________________________________.

(iii)            After watching the success of biggest entrepreneurs such as Mohammed Dewji, Mswahili was interested to become an entrepreneur. The type of motivation that has motivated Mswahili is ____________________________.

(iv)             A labour who uses more of mental efforts than his/her physical efforts is known as ______________________________________________________.

(v)               During a particular year, wheat farmers experienced dry weather; if all other factors remain constant, the farmer supply curve for wheat will shift to _______________________________________________________________ 

SECTION B: (30 Marks)

Answer all questions in this section

4.      (a) Explain the meaning of demand

_____________________________________________________________________ _____________________________________________________________________

_____________________________________________________________________

(b)  Describe any four (4) conditions for effective demand.

(i)                 _______________________________________________________________

                             _______________________________________________________________

                             _______________________________________________________________

(ii)              _______________________________________________________________

                             _______________________________________________________________

                             _______________________________________________________________

(iii)            _______________________________________________________________

                             _______________________________________________________________

                             _______________________________________________________________

(iv)             _______________________________________________________________

            _______________________________________________________________              _______________________________________________________________

5.      Distinguish between the following terminologies as used in commerce

(a)               Time utility and place utility

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

(b)               Change in supply and change in quantity supply

_____________________________________________________________________

_____________________________________________________________________ _____________________________________________________________________

_____________________________________________________________________

(c)               Bonded warehouse and public warehouse

_____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________

_____________________________________________________________________

(d)               Business and trade

_______________________________________________________________ _______________________________________________________________

_______________________________________________________________

_______________________________________________________________

(e)               Wholesale trade and retail trade

_______________________________________________________________              _______________________________________________________________

 _______________________________________________________________

_______________________________________________________________

SECTION C: (40 Marks)

Answer all questions in this section

6.      (a) What is production?

_____________________________________________________________________

_____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________

    (b)   Draw the production chart and clearly indicate all its branches.

7.      Sleyyum has bought medicine from China and they are urgently needed to serve the life of patients in Tanzania. Which mode of transport would you consider appropriate for Sleyyum? Explain five (5) advantages of using the mode of transport that you have choosen.

___________________________________________________________________________