LEARNING HUB TANZANIA

COMMERCE - OPENING EXAMINATION

FORM TWO

TIME: 2:30HRS                                                                                                  2019.

NAME ________________________________________                   CLASS:______________

INSTRUCTIONS.

-          This paper consists of section A, B and C with a total of eight questions

-          Answer all questions

-          All communication devices, calculators any unauthorized materials are not allowed in the examination room.

-          No one is allowed to borrow anything during the exam.

SECTION A (30 MARKS)

Answer all questions in this section

1. For each of the following items (i)-(x), choose the correct answer from among the given alternatives and write your answer in the table provided there after.

i)                    The production process in which a farmer grows maize for sale is referred to as

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

ii)                  The label which shows the price of a particular good in a shop is called?

1. Price list
2. Price tag
3. Invoice
4. Branding

iii)                What is the main purpose of Commerce?

1. To bridge the gap between wholesalers and retailers
2. To bridge the gap between producers and the retailers
3. To bridge the gap between producers and consumers
4. To bridge the gap between retailers and consumers

iv)                Which one among the following is part of aids to trade?

1. Commerce
2. Direct services
3. Trade
4. Communication

v)                  A person who coordinates all productive resources and bears the business risks is called

1. A business manager
2. An entrepreneur
3. Entrepreneurship
4. Consumer

vi)                The effect of increase in supply is reflected by

1. A shift of supply curve to the right
2. A shift of supply curve to the left
3. An upward movement along the supply curve
4. A downward movement along the supply curve

vii)              The best way in which individuals and business organizations use to protect their businesses against risks is

1. Creating bank account through which all business cash are deposited
2. Increasing number of employees into the business
3. Insuring their business through insurance companies
4. Insuring their employees through insurance companies

viii)            Why is it easy to establish retail trade as compared to wholesale trade?

1. It requires small amount of capital
2. It has many customers
3. No competition among retailers
4. It does not need record keeping

ix)                A wholesaler who operate on a very large scale business and supply goods to retailers in all parts of the country is known as

1. Nationwide wholesalers
2. Specialized wholesalers
3. General line wholesalers
4. Regional wholesalers

x)                  Which of the following presents a disadvantage of barter trade system?

1. Double coincidence of wants
2. Standard of defined payments
3. Divisibility
4. indivisibility

2. Match items in list A with the responses 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 statements by filling in the blank spaces with the correct term(s)

i)                    Goods and services that are sold outside the country are termed as______________

ii)                  The industries dealing with assembling of already manufactured goods into finished goods are called_____________________

iii)                A small scale retail business which is owned by one person, offering variety of goods from different manufacturers and has fixed premises is called______________

iv)                The law which states that the lower the price the higher the quantity demanded and vice versa is known as_________________

v)                  An auxiliary service which involves exchange of information between people or organization is known as_____________________

vi)                The cost incurred in producing the extra unit of output is called_________________

vii)              The commercial activity that deals with selling goods and services to other countries is called_________________________

viii)            The last person to receive goods in the channel of distribution is called____________

ix)                A person who sells goods and services with an aim of making profit______________

x)                  The resources in the form of money or materials or goods that a person or an organization use in commencing or starting business is termed as_______________

SECTION B (30 MARKS)

Answer all questions in this section

4. Define the following terms with examples

a)      Durable goods

b)      Consumer goods

c)      Indirect production

d)      Extractive industries

e)      Habitual goods

5. Briefly describe the five types of large scale retail businesses

i)                    ____________________________________________________________________

ii)                  ____________________________________________________________________

iii)                ____________________________________________________________________

iv)                ____________________________________________________________________

v)                  ____________________________________________________________________

SECTION C (40 MARKS)

Answer all questions in this section

6.             Explain six factors that cause change in supply of a commodity

7.             Draw the production flow chart and label it clearly

8.             Draw a well labeled diagram to show the movement along a supply curve. Illustrate your diagram.

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