ONS COUNCIL 7103/1 1 hour 15 minutes “HB is recommended) STO CANDIDATES s booklet until you are told to do so by the invigilator. are forty questions in this paper. Answer alll questions. For each question there are four Possible answers, A, B, Cand 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, 32015. ozmsec noi [Tarn over 3)2 1 Inwhich activity are fewer wants and needs satisfied? A commercial farming B indirect production C subsistence farming D tertiary production 2 Direct services A are commercial services. B are personal services C involve importing goods. D involve retail trade. 3 4 4 A are non-durable goods. B last fora short period. € produce other commodities. D satisfy consumers directly. 5 Which factor is not considered when establishing a retail outlet? A accessibility to the retail outlet B_ competition from other retailers C Alexibility to changes in the matket D trading licence from the municipality 6 Which of the following does not affect the operations of a mail order firm? A bad debts B display « C packaging / D postage, ‘Tos nos3 7 ‘What is the purpose of bar coding in retail trade? A Itadvertises goods and services, B It calculates total purchases made. C _Itcontains product name and price. D__ It shows amount of value added tax. 8 When does a buyer own goods in a credit sale agreement? A after paying a fixed deposit B after paying first instalment C after paying last instalment D after making an agreement 9 Hedging on the commodity market assures suppliers of consistent future prices. enables quality goods to be sold all the time. protects the buyer from future price increases. protects investors from unfair dealings by brokers. vomD> 10 Which document is not a contract of carriage? A bill of lading B charter party c consignment note D delivery note 11 Which set of documents is in the correct sequence of th ‘A letter of inquiry + quotation — order > B order —> invoice + quotation > C quotation + letter of inquiry — i D invoice - order — letter of in when increasing the amount on the o when reminding the buyer that: {Turn over4 When does an unfavourable balance of payment (B.O.P) occur? A when exported goods are more than imported goods B _when imported goods are more than exported goods C when total exports are more than total imports D when total imports are more than total exports, When is a bill of lading “dirty bill”? A when goods received are damaged B when goods received are not damaged when the bill has a lot of cancelled errors D when the bill is dirty and cannot be read Which Standards Association of Zimbabwe (S.A.Z) mark is used for safety? Which Act specifies that goods must fit the purpose for which they are sold? Sale of Goods Act Food and Drugs Act Pair Trading Act Consumer Safety Act ‘What action is taken by the registrar of companies after approving the articles and memorandum of association? distributes dividends to shareholders issues a certificate of incorporation sells shares to members of the public tells the company to commence trading Tos 201s18 19 20 2 22 5 Which is not a function of a board of directors? calling for annual general meetings choosing the managing director debating accounts in parliament A B ce D deciding on the company policies Use the information to answer questions 19 and 20. s Sales 50 000 Cost of goods sold 35.000 Cost of average stock 10.000 Total expenses 7000 ‘What is the gross profit? A $43,000 B $40.000 C $2500 D— $1500 The rate of tumover is es A 1.4 times & B 3.5 times C 5.0 times D 7:1 times, Which is not a function of money? A It can be accepted in settlement of debts B _Itcan be saved for use in the future C __Itisa standard for comparing prices D__Itis divisible into different units Which method of payment is a cheque? A bank draft B cable transfer c direct debit D standing order Tiosn 2015 [Turn over24 25 26 27 6 ‘Six months after date, pay to me or my order the sum of one thousand dollars ($1 000) for the value of goods received.” On which document is this information found? A bill of exchange B_ dilloflading C promissory note D letter of credit Which comparison is correct? Money order Postal order A valid for 12 months valid for 3 months B used in home trade used in foreign trade C pays telephone bills pays salaries and wages D debtor initiates payment creditor initiates payment Which is not a function of a merchant bank? A acting as an underwriter B drafting letters of credit C printing notes and minting coins D discounting bills of exchange Which pair is incorrect? Insurance Assurance A tisks certain to occur risks which may occur B refers to property refers to life C covers fire covers death D canbe indemnified * cannot be indemnified ‘What does pluvius insurance policy cover? dishonesty of employees who handle cash disruption of out-door activities by rain injury to a customer whilst in a supermarket loss resulting from temporary closure of business vamp ‘Toa 01s28 29 30 Bi A B ce 7 ‘Who ascertains the proximate cause when a loss occurs? actuary assessor broker underwriter D Which service is used by banks to receive information on foreign exchange rates? vam date] transmission electronic mail free post recorded delivery Postage paid by licencee BUSINESS REPLY SERVICE LICENCE NO. 54 ‘THE DIRECTOR: B, K. INVESTMENTS. PRIVATE BAG 120 AVONDALE: HARARE A trader uses this service when A B c D Freightliners are found in onw> sending large volumes of mail regularly to customers. sending important documents where proof of reply is needed. customers do not have street addresses to receive mail conducting market research on consumer preferences. air transport. rail transport. road transport, sea transport. oan 201s [Turn over32 33 34 35 36 37 8 ‘Which reason has not resulted in increase in the volume of air cargo? A direct mode of transportation B developments in computerisation C introduction of containerisation D competitive air freight charges ‘What name is given to an agreement to hire a ship for a specific journey? A bill ofexchange B bill of lading C demise charter D voyage charter Which documents are required when transporting goods using a tramp? A airway bill and consignment note B bill of lading and bill of exchange © charter party and bill of lading D delivery note and consignment note When is demurrage charged? ‘A when days for off-loading goods have been exceeded z B _ when goods received aboard a ship have been damaged C when hiring a tramp together with its crew members D when paying for the unoccupied space in a tramp ship Which service is not provided by a sea-port authority? A cleating approaches to port by dredging the harbour B collecting customs duties on dutiable imports C maintaining general state of efficiency of a seaport D supervising handling of both imports and exports Which document allows movement of dutiable goods between bonded warehouses? A bill oflading B delivery note C consignment note D customs warrant ‘Tosyt 201838 39 9 A refund of duty on goods for entrepét trade is a custom’s A B a D dividend. draw-back. duty. surplus. Unclaimed dutiable goods are sold by customs authorities at a A B ic D barter exchange. commodity market. rummage sale, stock exchange, “Shop at A and K superette where your money buys you more”. This type of advertising is A collective B generic. C informative. : D institutional. ios 01s