PRESIDENT’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM TWO MID TERM TEST 

061 COMMERCE

TIME: 2.30 HOURS MARCH, 2023

INSTRUCTIONS

1. This paper consists of sections A, B and C with a total of ten (10) questions.
2. Answer all questions in each section.
3. Section A and C carry fifteen (15) marks each and section B carries seventy (70) marks.
4. All answers must be written in the spaces provided.
5. All writings must be in blue or black ink except drawings which must be in pencil.
6. All communication devices and calculators are not allowed in the examination room.
7. Write your Examination Number on the top right of every page.

SECTION A (15 MARKS)

Answer All questions in this section

1. For each of the items (i)-(x), choose the correct answer among the given alternatives and write its letter beside the item number in the box provided below.

(i) A trader in Morogoro has engaged himself in selling goods and services to the final

consumers around his local area,his act can be termed as: 

1. Retails
2. Wholesaler
3. Retailing
4. Wholesaling.

(ii) Mkwayu deals with distribution of already produced goods without changing their form. Therefore mkwayu is doing?;-

1. Primary production
2. Secondary production
3. Tertiary production
4. Direct production.

(iii) Mr.mawazo prefers buying fresh juices in place of cocacola. After the rise in prices for fresh juices, he decided to shift and consume cocacola. The demand for two commodities can be classified as:

1. Joint demand
2. Complementary demand
3. derived demand
4. Competitive demand.

(iv) Kayuni is a wholesaler who operate in large scale and operate his store in all major cities of the country. Kayuni is classified under what type of wholesaler: 

1. General wholesaler
2. Regional wholesaler
3. Specialized wholesaler
4. National wide wholesaler.

(v) Hussein and Hassan wanted to exchange their goods. Hussein has clothes and Hassan has

sugar. Hussein wanted sugar but Hassan wanted banana. What factor made the transaction between them impossible?

1. Lack of measure of value
2. Lack of double coincidence of wants
3. Lack of store of value
4. Lack of divisibility of some commodities.

(vi) Which of the following is an example of home trade?

1. A of Dar-es-Salaam buys goods from B of Nairobi
2. A of Dar-es-Salaam buys goods from B of Dar-es-Salaam B had imported those goods from England a few days ago.
3. A of Dar-es-Salaam sells goods to B of Nairobi. 
4. A of Dar-es-Salaam sells goods to B of Kampala.

(vii) A manufacturer of goods decided to sell his goods direct to the final consumers by using his own retail outlets. The form of distribution channel used is known as:

1. One stage channel
2. Two stage channel
3. Three stage channel
4. Four stage channel.

(viii) Mr. Bata shop has specialized in selling products produced by MIFUGO Company only.

These types of shops are known as: 

1. Chain stores
2. Mobile shops
3. Tied shops
4. Single shops.

(ix) The transport charges for the goods bought by Mchaga was TZS 3,000.The cost incurred in

purchasing the goods was TZS 14,000, if he decided to sell the product for TZS 20,000 and give a customer a cash discount of 5%, his net profit will be:

A.TZS 1,000

B.TZS 2,000

C.TZS 3,000

D.TZS 4,000.

(x) GSM mall decided to introduce self-service in his business, this is likely to increase his business profit because of:

1. Decreased shop theft
2. Fewer shop assistants 
3. Impulse buying
4. Increased advertising.

Answers

2. Match the items in column A with response in column B by writing the letter of the correct responses besides the item number in the space provided.

Answers

Answer all questions in this section

3. Assume you have been employed as a warehouse keeper at a certain warehouse. Describe five(5) activities that you will be performing as your duties:

4. MO Dewji is among successful entrepreneurs in Tanzania. Identify five(5) features that differentiate him from other businessmen.

5. Bukuku wants to buy some gifts for her friends, advise her on five(5) factors that are likely to affect his willingness and ability on buying decision.

6. Abuu and Abiya are form two students who were discussing about the problem of employment in Tanzania. Abuu decided that he will be an entrepreneur while Abiya refused. Give five (5) reasons to convince Abiya to follow his friend's idea.

7. You are given the following information related to a particular business in Kariakoo

• Business stock, 31.12.2020 ..26,720/= 
• Business stock, 01.01.2020 ..34,430/= 
• Net purchases.................................................. 212,290/= 
• Gross profit mark-up ..50% 
• Expenses for the year..................................... 45,000/=

You are required to help the trader to calculate the following:

(a) Cost of goods sold

(b) Average stock

(c) Rate of stock turnover

(d)Sales

(e) Net profit

8. Wholesalers are said to be an important link in the channel of distribution, their presence is said to bring a smooth flow of goods from producers to the final consumers. Describe their usefulness in connection with the above notion five points(5)

9. Suppose you are a form two student of commerce, and you have been given a task to present about classification of occupation. By using diagram only show how you will present the concept.

SECTION C 15 MARKS

Answer all questions in this section

10. As a commerce student, advise small traders in Tanzania who conduct their businesses around the road and in highly populated areas on important attributes/qualities they should show to their customers and suppliers in order to succeed in their businesses. (Five points)

THE UNITED REPUBLIC OF TANZANIA PRESIDENT'S OFFICE REGIONAL ADMINISTRATION AND LOCAL  GOVERNMENT 

FORM TWO COMMERCE MID TERM TEST , APRIL  - 2022

 TIME:  2:30  HOURS INSTRUCTIONS

1. This paper consists of sections A, B and C.

2. Answer all questions from both sections.

3. All answers must be in blue or black ink except for drawings, which must be drawn by pencil ink.

4. Cellular phones and calculating devices are not allowed in the examination room-

5. Observe neatness of your works.

6. Write your examination index number on every page of your answer sheet(s).

FOR EXAMINER'S USE ONLY

SECTION  A: (30 MARKS)

1. For each of the following questions. (i)-(x) choose the most correct option among the given alternatives and write its letter beside the item number----

(i) The main aim of commerce in satisfying human wants is to close the gap between:

1. Producers and manufactures
2. Producers and consumers
3. Retailers and consumers
4. Wholesalers and retailers ( )

(ii) The difference between cost price and the selling price is regarded as. _

1. Gross profit
2. Turnover
3. Net profit
4. Stock turn ( )

(iii) The chief advantage of specialization is: _

1. Monotorv
2. Provides direct services
3. It encourages barter system
4. It increases production ( )

(iv) Labour as a factor of production is said to create utility if it ultimalely leads to: _

1. Production of goods
2. Meeting consumers needs
3. Contact with consumers
4. (d) Selling a product ( )

(v) A debit note is issued to correct: _

1. An overchrge on a statement
2. An over charge on an invoice
3. An undercharge on an invoice
4. An under charge on a statement ( )

(vi) is the ability and willingness to sell certain quantity of a commodity at a given market price and specific period of time.

1. Buying
2. Demand
3. Selling
4. Supply ( )

(vii) Aneth a wholesaler had daily sales of SO bags, minimum stock of 200 bags and a time of delivery of 4 days. What is the wholesaler's order point?

1. 850
2. 200
3. 600
4. 400 ( )

(viii) is the giving of a name to a product in order to distinguish it from other products.

1. Branding
2. Blending
3. Blanding
4. Grading ( )

(ix) A place where loading and off loading of goods takes place is called. _

1. The way
2. Method of propulsion
3. Unit of carriage
4. Terminal ( )

(x) The cover against unforeseen in a business is termed as. _

1. Warehousing
2. Insurance
3. Advertising
4. Banking ( )

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 the box provided.

3. (a) For each of the following items, write True or False on the space provided:

(i) Variable cost is the cost that changes with change in input. 

(ii) Profit is the reward for entrepreneurship.

(iii) Domestic trade is the trade 'carried out between nations,

(iv) Competitive demand is the demand for qoods which serve the same purpose

(v) Durable goods are the goods which can not stay for a long period of time

(vi) . Imports are good that are bought from other countries,

(vii) Unitary elasticity is the elasticity that is equal to zero

(viii) Indirect production is the production of goods for one's own consumption,

(ix) A trade discount is an allowance made if goods are sold by one businessman to another whose price is fixed, _

(x) Single shops that sell products of one manufacturer only is tied shop 

b) Complete the following sentences by filling in the blanks with correct word(s)

i) Cost of goods sold divided by average stock gives the

ii) It occurs when demand and supply forces intersect each other

iii) The action through which a retailer discovers information about the needs of the consumers

iv) A document authorizing the removal of goods from a warehouse is termed as

v) The type of trade by which orders are placed, sent and goods are received through postal service is,

SECTION B: (30 MARKS)

4. Write short notes on the following concepts as used in commerce; 

(i) Automatic vending machine

(ii) Multiple shops

(iii) Sales promotion 

(iv) Defered payement 

(v) Tertiary production

5. (a) Briefly explain wholesale trade?

(b) Descibe any six (6) challenges that face retail traders in Tanzania

SECTION C:  (40 MARKS)

6 Given

Opening stock = 2,000/= 

Closing stock = 2,500/= 

Purchases = 14,000/= 

Sales = 25,000/= 

Expenses = 4000/= 

Calculate

a)Cost of goods sold

b)Average stock 

c)Gross profits 

d)Net profit

e)Rate of stock turn over

7. Briefly explain five (5) activities mainly taking part in shock administration.

PRESIDENT’S OFFICE

REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

MID TERM ONE EXAMINATIONS

COMMERCE  FORM TWO

TIME: 2:30 HOURS                                                                                             MARCH 2022

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

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

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5.      Distinguish between the following terminologies as used in commerce

(a)               Time utility and place utility

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(b)               Change in supply and change in quantity supply

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(c)               Bonded warehouse and public warehouse

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(d)               Business and trade

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(e)               Wholesale trade and retail trade

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SECTION C: (40 Marks)

Answer all questions in this section

6.      (a) What is production?

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    (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.

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