Chao bre | ® ZIMBABWE SCHOOL EXAMINATIONS COUNCIL General Certificate of Education Ordinary Level COMMERCE 7103/1 PAPER1 Multiple Choice JUNE 2008 SESSION J hour 15 minutes ‘Additional materials: Multiple choice answer sheet Soft clean eraser Soft pencil (type B or HB is recommended) TIME 1 hour 15 minutes INSTRUCTIONS TO CANDIDATES Do not open this booklet until you are told to do so by the invigilator. ‘Write your name, Centre number and candidate number on the answer sheet in the spaces provided unless this has already been done for you. There are forty questions in this paper. Answer all questions. For each question there are four possible answers, A, B,C and D. Choose the one you consider correct and record your choice in soft pencil on the separate answer sheet. Read carefully the instructions on the answer sheet. INFORMATION FOR CANDIDATES Each correct answer will score one mark, A mark will not be deducted for a wrong answer. Any rough working should be done in this booklet. This question paper consists of 9 printed pages and 3 blank pages. Copyright: Zimbabwe School Examinations Council, 12008. ‘ounasec 008 [Turn overx a. \ AQ ARI 1 Which of the following are involved in Commerce? (@ — foreigntrade (ii) farming —(ii)_insurance A (and (ii) only B (i) and (iii) only C Gi) and (iii) only D (ii) and (iii) 2 Which one is not part of secondary production? A assembling motor vehicles B building a shop C growing crops D _ packaging goods 3 Which set gives the correct order of the production activities? A distribution, processing, extraction B extraction, distribution, processing C extraction, processing, distribution D _ processing, distribution, extraction 4 Which activity represents trade? A advertising goods on sale in a newspaper B __ buying groceries on credit C branding manufactured goods D storing goods for resale in a warehouse 5 Which one is a characteristic of a hire purchase agreement? A Itisused for buying both-durable and non-durable goods. ——B- The buyer becomes the owner upon paying the deposit. C The buyer can resell the goods after paying half the purchase price. D The goods are repossessed if the buyer defaults on payment, 6 A brand name serves all the following functions except A_ distinguishing a product from the goods of competitors. B __ enabling easy identification of the produet by customers. C making a product more attractive to buyers. D reducing soiling of goods due to customer handling. 7103/1 200810 il 3 Which product is sold by sample on commodity markets? A cloth B fertiliser Cc gold D tea Asa middleman, a broker A collects payment for goods on behalf of the seller. B delivers goods and collects payment for them. C delivers goods to the buyer for a commission. D links buyer and seller without handling the goods. ‘When would a supplier issue a debit note to a customer? when more goods than those on the invoice have been supplied when the customer has been overcharged on the invoice when the customer returns crates of empty drink bottles, ‘when the customer presents gift vouchers offered by the supplier vowP Mrs Tende bought goods worth $7 500 on 20 April 2007 on the following terms: 20% trade discount, 5% cash discount — 30 days, 2% cash discount ~ 60 days. ie How much should Mrs Tende pay if she pays in full on 17 May 2007? A $5580 B $5880 Cc $5700 D $6 000 Customs duty is charged on goods in order to avoid the smuggling of goods by importers. prevent importation of prohibited goods. raise government revenue from exports. reduce the volume of goods imported. cawE os robe [Turn over4 12 Which goods are placed in bonded warehouses? A dutiable imports on which duty has not been paid B duty-free items imported for resale in the country C imported goods that have been duly cleared D smuggled goods that are discovered by customs officials 13 Which item is included in the calculation of a country’s balance of trade? A amount paid to foreign transport companies B__ investment capital received from international organisations C revenue received from tourists who visit the country D value of goods exported from the country 14 What products are the following standards marks used for in Zimbabwe? A (i) general products. (ii)—gold B (i) gold Gi) general products C (i) gold Gi) timber D @) ._ timber Gi) general products 15—_Which activity would be carried out by the Consumer Council of Zimbabwe? A B c D 16 Which one is an advantage of operating a sole trade business? A B @ D awarding seals of standards on goods educating consumers on their rights passing legislation that protects consumers testing products for quality on behalf of consumers large capital is raised quick decisions are made the burden of loss is shared the owner enjoys limited liability ‘Tos 20087 18 19 20 24 2 5 ‘The document which shows that a company exists as a separate legal entity is the A Articles of Association. B Certificate of Incorporation. C Memorandum of Association. D Statutory Declaration. What do stags do on the stock market? ‘A. They buy existing shares hoping to sell them at a lower price later. B They buy new shares hoping to sell them at a higher price later. C They sell existing shares hoping to buy them back at a lower price later. D _ They sell new shares hoping to buy them back at a higher price later. Which term describes the number of times that a trader sells the average volume of goods in a trading period? A gross profit Bo mark-up Cnet profit D _ stock-tum Which statement correctly describes a limited partnership? Al partners have limited liability. All partners have unlimited liability. ‘At least one partner has unlimited liability Only one partner has limited liability. paeDp What name is given to shares that are entitled to additional dividends after ordinary shares have received a certain rate? basic preference shares cumulative preference shares participating preference shares redeemable preference shares vaeD Which of the following are the minimum numbers of members allowed in the formation of (i) a general partnership and, (ii) a private limited company? A @_—_Imember (ii), 2members + BG). 2members (ii) -20 members CG) nolimit (ii): 50 members D —@_—-2members (ii) 2 members ‘ras 12008 [Turn over24 25 26 6 A business concern had the following figures at the end of a financial period: Capital $24 000, Fixed Assets $14 000, Current Assets $12 000. ‘What is the value of its current liabilities? A $2000 B — $22.000 Cc $26 000 D $50.00 Which method of payment can a creditor be legally forced to accept? A __ bank certified cheque B _ bank notes and coins C bills of exchange D money order Which statement applies to a crossed cheque? ‘A. Itmust be cashed over the bank counter. B _Itmust be deposited into a bank account, C _ Itshould be endorsed to someone else. D The drawer must be asked to open the crossing. Which one would not be a reason for a bank to dishonour a cheque? ‘The cheque was drawn 20 days before being presented. ‘One or more signatures are missing. ‘The cheque is torn or dirty. There is no date on the cheque. pomp ‘Tog 300827 28 29 30 7 Refer to the table below in order to answer questions 27 and 28. The table is showing a clearing summary of amounts between three branches of a commercial bank. CLEARING IN $ MILLIONS PAYING BRANCH RECEIVINGBRANCH | A |B | C | TOTAL A = 2 5 +7 B Bee |e Sales ic 143 |- | TOTAL Pane ilans8 How much does Branch C owe Branch A? A $2 million B $4 million C $5 million D ‘$12 million When the totals are considered, which branch or branches has or have a balance to pay? A Branch C only B Branches A and B only C Branches A and C only D _ Branches B and C only Immediately after an insurance proposal has been accepted, the insured often receives A acover note. B apolicy. C arenewal notice. D _aclaim form. In insurance, people who calculate the value of items,to be insured are called actuaries, assessors. brokers. ‘underwriters. vamp nos 008 [Turn over32 34 35 36 8 What does the principle of insurable interest mean? A B S D All relevant information about the risk must be disclosed. The event causing the risk must be the one insured against The insured must not make profit out of a loss. The insured must suffer financial loss when the risk occurs. Which service would a company use to allow its managers to hold a meeting and discuss, face to face from different places? A B ic D confravision datel radio-paging view-data Which item is a business person most likely to send using the recorded delivery service? A B G D a customer’s dishonoured cheque a final demand for payment an advertisement of special offers cash payment to a supplier Which document is used for the hiring of sea transport? A B i D airway bill ill of lading charter party consignment note Containers can be ferried using A B G D road and rail transport only. sea, air, road and rail transport. sea and road transport only. sea, rail and road transport only. Which one is not a reason for warehousing goods? yop to enable goods to be produced ahead of demand to ensure a steady supply of goods on the market to keep goods long enough to profit from higher prices, 10 protect goods from deterioration due to weather elements ‘Tosi 1200837 38 = 40 9 Which aid to trade helps to solve problems aris maize? ig from the seasonal production of A advertising B banking C insurance D warehousing What kind of advertising occurs when several milk producers jointly promote milk consumption? A combined advertising B competitive advertising C generic advertising D informative advertising How do consumers benefit from the competition between manufacturers of similar products? A access to high quality goods at lower prices B_ __ buying more goods from the competing manufacturers C getting to know the truth about the different products D obtaining employment in the advertising industry Which organisation enforces the regulation that producers must not make misleading claims on their products? Advertising Media Association Consumer Council of Zimbabwe Standards Association of Zimbabwe Stock Exchange Council yop ‘70M 1008