Commerce involves all activities that enable goods and services to be moved from the producer to the:

1.  final consumer
2.  manufacturer
3. retailer
4.  wholesaler

If a great change in price brings about a small change in the quantity demanded then the price elasticity of demand is:

1.  constant 
2. elastic
3. inelastic 
4. unitary

(iii)     A tractor used in agricultural activities is in the category of:

1. consumer goods
2. domestic goods 
3.  luxury goods
4. producer goods

(iv)     The stock level when new goods are required in the warehouse is:

1.  average stock
2. maximum stock
3.  minimum stock 
4.  order point

(v)       The exchange of money value of a good and services:

1.  brakeage
2. commission
3. interest
4.  price

(vi)     Marginal cost is defined as:

1.   a change of fixed cost per unit of output
2.  a change of total output due to additional unit of cost 
3. a change in total sales due to additional unit of cost
4. distribution of total cost per unit of output.

(vii)    A retail outlet which sells a product of only one manufacturer is termed as:

1.  itinerant trader
2.   multiple shop
3.  tied shop 
4.  top shop

(viii)  Which ofthe following is NOT normally done by the wholesaler?

1.  Breaking the bulk
2. Buying goods from producers
3.  Market research
4. Selling goods to consumers

(ix)     Home trade is divided into:

1.  export trade and import trade
2. foreign trade and international trade
3.  retail trade and wholesale trade 
4.  trade and aids to trade

(x)       An agent who sells goods at a public auction is:

1.  a broker
2. a del-credere agent
3. a factor
4. an auctioneer

2. Match the items in List A with the correct response in List B by writing the letter of the correct response below the number of the corresponding item in the table provided.

3. Complete the following sentences by filling in the blanks with correct word(s):

(i) Goods which are used in production of other goods in production process are called

(ii) The paths through which products follow from the producer to the final consumer is known as

(iii) The table which shows the quantity of goods supplied against their prices is called

(iv) Small scale retailers who move from place to place carrying their goods on their shoulders are called

(v) is an ability of a commodity to satisfy human needs or
wants.

(vi) The costs of production which do not change according to the level of output are called

(vii) Creation of goods and services to satisfy human wants is known as

(viii) An arrangement of stocks in a warehouse in a way that old stocks can easily be identified from new ones is known as

(ix) Goods which are used directly by the final consumers are categorized as .........

(x) A large building which is specifically made for the storage of goods before use is called

SECTION B

Briefly describe the following terms:

(a) Luxury (goods)

(b) Constructive industries

(c) Deferred payment

(d) Consumers

(e) Stock administration

(a) Who is a "trader"?

(b) Briefly explain functions of a wholesaler.

SECTION C

6. The following details were extracted from the book of Makoko for

the year ending 31/07/2014.

Purchases ........Shs 500,000

Opening........ Shs 80,000

Closing stock ........Shs 40,000

Minimum stock level .......kg. 120

Daily sales volume ........kg. 80

Delivery time ....... 5 days

By using the information given above, calculate the following showing clearly all the workings.

(a) Average stock

(b) Cost of goods sold

(c) Rate of stock turn

(d) Order point

7. (a) Define the term "specialization".

(b) Explain six disadvantages of specialization.