PRESIDENT OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM FOUR MIDTERM EXAMINATION MARCH 2023

061 COMMERCE

Time: 2:30 Hours 

INSTRUCTIONS

• Answer all questions in section A and B
• Answer two (2) questions in section C

SECTION A (20 Marks)

1. For each of the following items (i-xv) choose and write the letter of correct answer in the answer sheet(s) provided

1. The term for periodic payment made by the insured to the insurer for cover is

1. Subrogation 
2. premium 
3. insurance cover
4. Sum insured
5.  compensation

2. What will happen, if a price of coffee will rise

1. Its demand will rise
2. Its demand will fall
3. Its demand will remain constant
4. Demand curve will shift to the right of demand curve

3. ABC agricultural product success in advertisement campaign for tea. What could you explain this change

1. The demand of coffee will fall
2. The demand of coffee will rise
3. The demand of coffee will drop
4. The demand of coffee will remain constant

4. Which is the common means of transportation in your country

1. Railway
2.  air
3. water
4. road

5. The document certifies the country in which the goods originated is known

1. The certificate of origin
2. the inspection certificate
3. Commercial invoice
4. consumer invoice

6. Crude oil is normally transported from Ndola Zambia to Dar es salaam Tanzania

1. Sea
2.  road
3. pipeline
4.  railway

7. John is planning to import laboratory equipment from India in the next academic year. These equipments will likely be kept in a customer warehouse until they get cleared. The warehouse where the goods will be kept is known as

1. Bonded warehouse
2. private warehouse
3. Public warehouse 
4. person warehouse

8. When the price of milk rise from Tsh 500 to Tsh 1000, which causes demand to contract from 40 to 50. What type of elasticity of demand is this

1. Elastic
2. inelastic
3. unitary
4. perfect inelastic

9. Magreth is an Accountant at NSSF but at the sametime she is growing vegetable in her small garden. This is the type of

1. Indirect production
2. direct production
3. Direct service
4. indirect service

10. Mr. Ally read an announcement on local newspaper about government grand for small scale retailers. This motivated him to become an entrepreneur. This is an example of

1. Internal motivation
2. grant motivation
3. Subsides motivation
4. external motivation

11. Mlimani city, Uchumi house and Dar free market are example of

1. Hyper supermarket
2. mail order shop
3. Supermarket
4. chain store

12. P. Msukuzi is allowed to access this account while at home and get information from this account. This is an exmple of

1. E-banking
2. E- commerce
3. E- business
4. E – ATM’S

13. If Tanzania export more goods to Uganda than she imports from the same country. This is to say

1. Overall balance of trade is favorable
2. Balance of trade with Uganda is favorable
3. Balance of payment is bound to be favorable
4. Balance of payment with Uganda is bound to be favorable

14. A cheque drawn in favour of kiaruezi makes kiaruzi

1. Drawer
2. drawee
3. payable
4. payee

15. Odilo is a businessman from Tanzania, he wants to open account for this business. Which of the following accounts is suitable for him

1. Saving account
2. fixed deposit account
3. Current account
4.  joint account

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 answer sheet provided

SECTION B (50 Marks)

3. Write short notes on the following terms

1. Profoma invoice
2. DD (Delivery Dock)
3. Neon signs
4. Email
5. Trade mark

4. You are supplied with the following information for the year ended 31^st Dec 2009

• Average mark up 25%
• Total expenses 24,000/=
• Stock turn rate 5 times
• Sales 72,000/=

Required 

1. Find gross profit
2. Cost of goods sold
3. margin
4. Average stock
5. Net profit

5. Recently in Tanzania the number of unemloyed people is increasing rapidly than previous days inorder to solve this problem. Explain the benefit of self employment to the people of Tanzania.

6. (a) Juma is alone and wishes to start a new business. He is willing to bear the risk and contribute all capital for the business establishment. What type of business is Juma likely to form?

(b) Explain five advantages of the business Juma is likely to form.

7. Magiga is the businessman and has a current account at CRDB bank and is allowed to operate this account through e-banking explain the benefits that he will enjoy by using this service.

SECTION C (30 Marks)

Answer only two questions in this section

8. Mwakipesile is the businessman who lives in Mwanza and he wants to acquire capital from NMB bank. What factors will be considered for Mwakipesile to be granted capital he needs from NMB bank or any other financial institutions in that case.

9. Due to shortage of goods Tanzania had been obtaining goods from other countries to satisfy needs of citizens. Recently production has increased and wants to consume only locally manufactured goods. What measures can government of Tanzania take in order to be successful on this case (five points).

10. Mr. Ally is a new businessman in the field he just started the procedures for registering his new business, but he is reluctant to visit TRA for application of (TIN) Tax payer identification because he is not well informed about the merits of paying tax to the government. As the tax officer advice Mr. Ally why he should register with TRA?

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

 FORM FOUR COMMERCE MID TERM TEST 

Time: 3 Hours        April 2022

Instructions

1. This paper consists of three sections A, B and C with a total of 10 questions.
2. Answer all questions in section A and B and only two (2) questions from section C.
3. Non programmable calculators may be used.
4. Cellular phones, calculators 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 (20MARKS)

 Answer all questions from this section

1. For each of the items (i) – (xv) choose the correct answer from among the given alternative and write its letter beside the item number on the answer sheet provided

1. Mr. Charles Lugolola is a trader selling second hand clothes that normally buying them from Dubai and selling them Dar es salaam-Tanzania. Which type of trade Mr. Charles Lugolola conducting?

1. Retail trade 
2. Export trade 
3. Wholesale trade 
4. Import trade 
5. Home trade

2. Which is the correct reason for the movement along the demand curve?

1. Change in taste and fashion
2. Change in people’s level of income
3. Change in the price of the commodity
4. Change in the demand of the other goods
5. Change in the value for money

3. Martine was complaining that he was one among the lower income earners but his salary is always been deducted more than higher income earners. Which do you think is the method that has been used by his institution to deduct his salary?

1. Progressive taxation method
2. Regressive taxation method
3. Indirect taxation method
4. Proportional taxation method
5. Poor taxation method

4. Ms. Neema is a retailer with her retail shop in Dodoma town. She took insurance cover of her pick-up that she always uses to collects her goods from the wholesalers’ warehouses. One day she got fire accident in her shop. She went to claim for compensation but the insurer refuses to do so. Which principle of insurance has been used by insurer to refuse to compensate her?

1. Utmost good faith
2. Subrogation
3. contribution
4. Insurable interest
5. Indemnity.

5. Which one among the following is the correct classification of warehouses?

1. Private warehouse, bonded warehouse and wholesalers warehouses
2. Bonded warehouse, private warehouse and retailers warehouse
3. Public warehouses, private warehouses and bonded warehouse
4. Public warehouses, bonded warehouses and producers warehouses
5. Wholesalers warehouses, retailers warehouses and manufacturers warehouses

6. If there was a farmer who had wheat and wanted salt he had to find one who had salt and wanted wheat, this is an example of:

1. Difficult in transporting immobile items.
2. Invisibility of some items.
3. Lack of store of value.
4. Need of double coincidence of wants.
5. Lack of measure of value.

7. Which of the following is not a feature of free goods?

1. They are not scare
2. They are not produced by human effort
3. They are not transferable in terms of ownership
4. They lack exchange value
5. They are transferable in terms of ownership

8. Nearly every journey involves junctions where we can transfer from one form of transport to another, in this case we are referring to:

1. The way
2. The unit of carriage
3. The terminal
4. The unit of propulsion
5. None of the above.

9. All the qualities of good money are important, but the most important quality of good money is:

1. Durability
2. Divisibility
3. Portability
4. Cognisability
5. General acceptability

10. The following statements are true of a bill of exchange which one is not?

1. It must be signed by the drawee
2. It must bear appropriate stamp duty
3. It must be signed by the drawer
4. It must be payable on demand
5. It must be unconditional

11. The surrender value of a life assurance policy is

1. A penalty payable to the insurance company because of late payment of the premium
2. The minimum value of an insurance cover in order to be acceptable by the insurance company
3. The amount a person surrenders when his policy expires
4. The amount a person will receive if he cashes his life assurance policy before the date of its maturity
5. The actual amount paid by the insurance company in case of a motor accident

12. The process of giving a particular name to a product is called

1. Pre-packaging
2. Trade naming
3. Pre-packing
4. Branding
5. Retailing

13. A delcredere agent

1. receives longer credit terms from his principals in consideration of higher trade discount
2. Obtains higher commission as he guarantees payment for goods sold on behalf of his principals
3. Handles only imported goods of high standing
4. Receive longer credit terms from his principals in consideration of lower trade discount
5. Is given credit from his principals but himself sales only by cash

14. Aids to trade may be defined as the activities aimed at

1. Assisting the consumers directly
2. Making the work of those involved in manufacturing of essential goods easy
3. Helping producers directly
4. Bridging the gap between the producer and a consumer
5. Helping retailers directly

15. If Tanzania exports more goods to Rwanda than she imports from the same country, her

1. Overall balance of trade is favourable
2. Balance of trade with Rwanda is favourable
3. Balance of trade with Rwanda is unfavourable
4. Balance of payments is bound to be favourable
5. Balance of payments with Rwanda is bound to be favourable

2. Match the items of list A with the corresponding items in list B by writing the letter of the correct item in the space provided

SECTION B (50 MARKS)

Answer all questions from this section

3. Given the following information

Opening stock ………………………………………. Tsh 120,000

Net purchases ……………………………………….. Tsh 150,000

Closing stock ……………………………………….. Tsh 100,000

Net sales ………………………………………… . Tsh 300,000

Compute the following

1. Cost of goods sold
2. Gross profit
3. Gross profit margin
4. Gross profit mark up

4. What do you understand with the following?

(a) Management

(b) Amalgamation

(c) Quasi partner

(d) Co-operative society

(e) Prospectus

5. (a) Enumerate five ways in which the community benefits from learning business studies.

(b) State five differences between direct and indirect production.

6. You have been appointed as manager of Twiga cement Company in Tanzania, this comes as the strategy to improve the performance of the company following its failure to meet their pre-determined goals, with five points explain what you will do to realize good standard of service of your company

7. (a) Briefly explain five services that are rendered by middlemen to producers in the chain of distribution.

(b) Mention five factors that may inhibit entrepreneurial development in a country.

SECTION C (30 MARKS)

Answer two question form this section

8. (a) It is often argued that in a commercial system such as that existing in Tanzania a wholesaler cannot be eliminated. Justify.

(b) Describe under what circumstances banks will dishonor a cheque even if the drawer has enough money in his account.

9. There those people who do not buy or sell goods but offer services which facilitate trade. Without such services there would be hindrances in the exchange of goods. With the help of such services there is a continuous flow of exchange of goods and service which helps in the distribution of goods. Basing on this statement explain six auxiliary services in commerce.
10. Mr. Araphat is struggling to start business in Dodoma City, he is very much motivated to start business as he find large number of people from different regions in the country move to the capital city, to him this is a big opportunity. He has identified five potential businesses which he is capable of dealing with, however capital is the big problem to him, as an expert advises him on how to get rid to his problem.