(For Both School and Private Candidates)

Time: 3 Hours Year: 2008


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

(i) . . . . . . is a means used by producers to identify their products from other manufactures.

  1. Brand name
  2. Sorting
  3. Colour 
  4. Survey
  5. Price fixing
Choose Answer :

(ii)A 25% mark up is applied to a commodity selling at Shs. 2400. What is the gross profit?

  1. Shs. 600 
  2. Shs. 450
  3. Shs. 480
  4. Shs. 384 
  5. Shs. 390
Choose Answer :

(iii)In the event of total loss, insurance companies undertake to pay:

  1. a sum insured;
  2. a real value of the property destroyed;
  3. the sum insured or the real value whichever is less;
  4. the sum insured or the real value whichever is more;
  5. the sum insured together with the premium paid.
Choose Answer :

(iv) . . . . . . . . is the identification of a product which cannot be pronounced but can be sighted and is protected by the law.

  1. Brand law
  2. Brand mark 
  3. Trade mark
  4. Patent right
  5. Grading
Choose Answer :

(v) . . . . . . means all activities necessary in bringing goods and services into the market.

  1. Sales
  2. Distribution
  3. Market
  4. Marketing
  5. Market survey
Choose Answer :

(vi)When visible imports of a country exceed visible exports it implies

  1. a favourable balance of trade
  2. unfavourable balance of trade
  3. a favourable balance of payment
  4. unfavourable balance of payment
  5. a balance of trade
Choose Answer :

(vii) Which one of the following is not correct about the functions of management? 

  1. Sound policy
  2. Planning
  3. Organizing
  4. Staffing 
  5. Control
Choose Answer :

(viii)Which of the following are places where ships wait for cargo?

  1. Ocean 
  2. Customs
  3. Docks
  4. Terminals
  5. Overseas
Choose Answer :

(ix)One of the following is the method used by the government to collect money from most people whether foreigners or citizens whenever they buy goods for use

  1. Fees
  2. Licenses
  3. Cooperation tax
  4. Indirect tax
  5. Direct tax
Choose Answer :

(x)Which of the following documents must be accepted or paid before the bill of lading is surrendered to the foreign buyer?

  1. Promissory note
  2. Bills of exchange
  3. Cheque
  4. Consignment note
  5. Debits
Choose Answer :

2. Match the items in List A with the responses in List B by writing the letter of the correct response beside the item number.


(i) Is the reward for capital

(ii) The import and export of intangible items

(iii)The process whereby the demand for the products of a business enterprise is created

(iv)An event against which an insurance policy is taken out.

(v)Is one for which an increase in income leads to a decrease in the amount demanded, other things being equal

(vi) In management whereby one employee is answerable to one supervisor only

(vii)The quantity of a certain supply that should always be in stock to safeguard sales against unforeseen delays in delivery

(viii)Enables those with small incomes to be reached

(ix)Refers mainly to insurance of ships and goods in ships

(x)Is an instruction to a bank to pay a specified sum of money to a named person at regular interval

  1. Unity of command
  2. Indirect taxation
  3. Inferior goods 
  4. Average stock
  5. Marine insurance 
  6. Visible trade 
  7. Invisible trade 
  8. Unity of objectives 
  9. Standing order 
  10. Sales 
  11. Normal goods
  12. Sales promotion 
  13. Loss
  14. Interest
  15. Profit
  16. Shipping insurance 
  17. Minimum stock 
  18. Credit taxation
  19. Direct taxation 
  20. Risk

View Ans


3. K. Buta had an opening stock of Shs. 20,000/= and a closing stock of Shs. 25,000/=. His net purchases for the year amounted to Shs. and a 40% mark up is applied. His expense for the year was Shs. 28,600/=. Find the:-

(a) cost price (b) gross profit

(c) turn over (d) net profit

View Ans

4. Anita and Beatrice were travelling from Iringa to Dar es Salaam using Beatrice's car which is insured. When they reached Kibaha their car was involved in an accident and it was badly damaged. Anita decided to go to the National Insurance Company to ask for compensation. The company didn't agree to give compensation for the car.

(a) Why did the company refuse to compensate Anita's claim?

(b) Which principle of insurance was applied by the company?

View Ans

5. The price of commodity "x" changed from Shs. 6/= to Shs. 7/=, resulting in a change of the quantity supplied from 200kg to 250kg.

(a) Calculate elasticity of supply.

(b) Is the supply elastic, equal to unit or inelastic? 

(c) What does your answer in 5 (b) imply?

View Ans

6, (a) Define tax.

(b) The following are data from Income Tax Department

Individual income







Tax payable







(i)Calculate the % rate of tax.

(ii)Illustrate by graph and identify the system of taxation used.

View Ans


7. (a) Define money.

(b) State four (4) functions of money.

View Ans

8. Outline five (5) advantages and five (5) disadvantages of air transport.

View Ans

9. Describe five (5) basic principles of a good tax system.

View Ans

10. Why does a country decide to regulate or restrict the volume of foreign trade? Give five (5) reasons.

View Ans

Download Learning
Hub App

For Call,Sms&WhatsApp: 255769929722 / 255754805256