(i) Which of the following activities is not involved in the study of commerce?

  1. A study of auxiliary services
  2.   A study of how factors of production can be utilized to the optimal point so as to achieve more goods and services.
  3.  A study of how best the bank clerks could be organized so as to satisfy the needs of a consumer
  4.  A study of trade and the principal activity in the distribution of goods
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(ii)   The last person in the distribution chain is:

  1.   consumer
  2. consumer and retailer
  3. manufacturer
  4.   retailer
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(iii)The ability of goods and services to satisfy human wants is known as:

  1.  production
  2. specialization
  3.  subsistence
  4.  utility
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(iv)Distinguishing mark attached to the product and which cannot be used by any other producer is called:

  1. brand name
  2. kite mark
  3. producer mark
  4.  trade mark
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(v)    A retailer may prefer to deal with a wholesale firm because:

  1.  there is less likelihood of loss through damage
  2. they break bulk and re-pack the goods
  3.  they offer a large choice of goods from different manufacturers
  4.  they provide storage for goods until the retailer needs them.
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(vi)Variable cost is that which varies with:

  1. company position
  2. output
  3.  technology
  4.  time
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(vii)         The exchange of goods and services among different countries is called:

  1.  barter trade
  2. domestic trade
  3. foreign trade
  4.  internal trade
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(viii)       Re-order level is the level:

  1. necessary to safeguard against delays
  2. when new stock is to be sold
  3.  when new stock is to be ordered
  4.  when supplies are received
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(ix)An aid to trade that safeguards goods and trade against loss is called:

  1.   advertising
  2. communication
  3.  insurance
  4. warehousing
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(x)    A building which is usedto store goods on payment:

  1.  bonded warehouse
  2. private warehouse
  3. public warehouse
  4. goods warehouse
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Choose correct term from Group B which matches with explanation from Group A, the write the letter below the number of the relevant explanation in the table provided.

Group A

(I) A document issued when goods have been bought or sold on credit.

(ii) Are those retailers who carry goods in the boxes and call up customers at their places.

(iii) Place where imported goods arc kept while waiting for the payment of custom duty.

(iv) Process of dividing work according to skills of the workers.

(v) Production for one's own use.

(vi) The amount of goods or money remaining after the satisfaction ants.

(vii) The graphical representation of demand schedule.

(viii) The number of times the average stock held turned over during a period.

(ix) The situation whereby different commodities com use of certain resources in the pete in the process of production.

(x) Ways through which goods flow from consumers, manufacturers to final

Group B

  1. Bonded warehouse
  2. Competitive demand
  3. Composite demand
  4. Demand curve
  5. Direct production
  6. Distribution chain
  7. Division of labour
  8. Indirect production
  9. Invoice
  10. Itinerant traders
  11. Private warehouse
  12. Rate of stock turn
  13. Supply curve
  14. Surplus Tied shop

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

(a) Large self-service shop located away from the town centre selling a great variety of goods is called

(b) It occurs when demand and supply curves intersect......

(c) The exchange and distribution of goods and services is termed as ......

(d) The cost of producing one more unit of output is known as......

(e) The labour that comes as a result of education and training is called ......

(f) The process of finding the value of stock held is ....

(g) Periodical valuing of all goods on hand is termed as....

(h) Public and personal services are types

(i) The reward or payment of capital is .....

(j) The situation of increasing or decreasing quantity supplied mainly caused by the change of the price of a commodity is

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4. Write short notes on the following terms:

(a) Tertiary production

(b) Wholesale trade

(c) Consumer

(d) Hawkers

(e) Sales promotion

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5. (a) Define the term "storage".

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(b) Briefly explain five advantages of a warehouse.

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6. Denis Company, bought goods for cash for Tshs. 20,000/= and sold at Tshs. 25,000/=. Calculate the company's:

(a) Profit margin

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(b) Mark up price

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7. Briefly explain five functions of stock administration.

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