ZIMBABWE SCHOOL EXAMINATIONS COUNCIL General Certificate of Education Ordinary Level COMMERCE 7103/2 PAPER 2 NOVEMBER 2011 SESSION 2 hours Additional materials: ‘Answer paper TIME 2 hours INSTRUCTIONS TO CANDIDATES Write your name, Centre number and candidate number in the spaces provided on the answer paper/answer booklet. Answer any four questions. Write your answers on the separate answer paper provided. If you use more than one sheet of paper, fasten the sheets together. INFORMATION FOR CANDIDATES ‘The number of marks is given in brackets { ] at the end of each question or part question. This question paper consists of 3 printed pages and 1 blank page, Copyright: Zimbabwe School Examinations Council, N2011 @ziMsec N2011 [Turn over Ne zy@) (b) (a) (b) 2 Distinguish between industry and commerce Explain how a manufacturer of clothes benefits from communication. Explain the following terms: (@ doit yourself (D.1-Y.) products; (i) self-ser Describe any four measures which a sole trader could take to avoid the risk of failure. With the aid of examples, explain the following principles of insurance: @) (by © (a) (b) @) (b) (C) (a) (b) @) (b) indemnity; insurable interest; utmost good faith. Differentiate between a private limited company and a partnership. State the contents and importance of the following documents used in the formation of a public limited company: @ prospectus; (ii) certificate of trading. Why is a bonded warehouse important to a manufacturer? For what reasons do revenue.authorities keep statistical records of imports and exports? Describe the use of documentary credits. State and explain the functions of money. ‘What are the advantages of using a current account? Outline the functions of @ — anadvertising agency; (ii) Standards Association of Zimbabwe. How are consumers protected by the Hire Purchase Act? ‘ros 2011 18] (8) 71 {5} {10} (s] [8] {6} U0} 0) [8] [6] [6]fa) (b) fa) (b) What are the functions of a seaport authority’? [10] How do the following assist a trader in communication? (@) — franking machine [5] (ii) ‘fax machine {5} On the 5® of March 2005, a wholesaler bought goods worth $ 2 500 on credit under the following terms: trade discount - 254% ‘ cash discount within 30 days - 5% cash discount within 60 days - 2% On the 10" of April 2005, the account was settled in full. Calculate, showing all your working, the @ trade discount, 21 (ii) cash discount, (4) (iii) amount paid by the wholesaler. (4) Why do large-scale retailers buy directly from manufacturers? (io) ‘70572 N2011