FORM TWO TERMINAL EXAMINATIONS

COMMERCE
Time 2HOURS ………… 29th August 2020

INSTRUCTIONS:-

1. Answer ALL questions.

SECTION A (20 Marks)

1. For each of the following items (I – x) choose the correct answer from among the given alternatives
and write its letter in the blacket provided

i) Commerce is mainly dealing with ( )

a) Distribution of good and services
b) Production and consumption of goods and services
c) Buying and selling of goods and services
d) Exchange and distribution of goods and services

ii) Which of the following function is not done by the wholesaler?

a) Breaking the bulk ( )
b) Selling goods the producer
c) Storing the goods.
d) Selling good to the retailers

iii)The art of selling goods to the final customer is called

a) Retail trade
b) Wholesale trade
c) Retailing
d) Wholesaling ( )

iv) process of sorting, examining delivering and storing of goods is called

a) Ware housing ( )
b) Warehouse
c) Advisement
d) Advertising

v) Home trade involves the following activities

a) Buying and selling of good and services within the country ( )

b) Selling goods and services within the country

c) Buying goods and services from within the country
d) Buying and selling goods and services from within the country

Form Two Commerce August 2020

Page 1
 vi) Which of the following is not an aid to trade
a) Transport
b) Warehousing ( )
c) Banking
d) Retailing
vii) Which of the following is not a direct services
a) Cooking at home
b) Teaching ( )
c) Fishing
d) Nursing
viii) Aids to trade may be defined as the activities aimed at
a) Assisting consumer directly
b) Making easy the work of those involved in manufacturing of essential goods
c) Helping traders in heir business
d) Involving all activities I the production process ( )
ix) Making goods for ones own use is termed production
a) Self services
b) Direct production ( )
c) Self employment
d) Direct services
x) Consumer good are those that
a) Satisfy want directly
b) Decrease demand for the goods ( )
c) Are used directly by consumers
d) Increase demand for the goods

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

LIST A LIST B
i. The small scale retail business unit owned by A) mail order shop
an individual selling variety of goods from
different manufactures B) Mobile shop
ii.The large scale business unit whose
commodities are sold at fixed price and have C) Single shop
price tag
D) Multiple shop
iii. The large scale retail business unit which
sell their commodities through post office E) Department store

iv. The large scale retail business unit carried F) Cooperative shop
out less than one roof and one management.
G) supermarket
v.The small scale retail business unit using
lorries and vans to visit a particular area in
selling different commodities

Form Two Commerce August 2020

Page 2
 Answers:
LIST A i ii iii iv v
LIST B

3. for each of the following statements, write TRUE if the statement is correct and FALSE if the
statement is not correct in the space provided
i. Export trade deals with only selling of goods to other countries……………………………………
ii.A wholesaler is a trade who sells goods to the final consumer in small quantities…………………
iii. Foreign trade involves buying and selling of goods and services between the countries…………...
iv. Cigarettes and chocolates present the examples of basic needs………………………………….....
v. Supply is amount of goods or money that remain after needs have been satisfied…………………
vi. Commerce is the branch of economic……………………………………………………………....
vii. Aids to trade help trade……………………………………………………………………………..
viii.Commerce is the subject which deals with distribution and exchange of goods and services to
satisfy human wants………………………………………………………………………………..
ix. The art of transmitting information by words of mount is called advertisement………………….

SECTION B (40 Marks)

4. Explain five qualities of a good retailer

i) ……………………………………………………………………………………………………
ii) ……………………………………………………………………………………………………
iii)……………………………………………………………………………………………………
iv) ……………………………………………………………………………………………………
v) ……………………………………………………………………………………………………

5. Mention five importance of study commerce in everyday life

i. ……………………………………………………………………………………………………
ii. …………………………………………………………………………………………………...
iii. ……………………………………………………………………………………………………
iv. ……………………………………………………………………………………………………
v. ……………………………………………………………………………………………………

6. State and explain aid to trade

i. ……………………………………………………………………………………………………
ii. …………………………………………………………………………………………………...
iii. ……………………………………………………………………………………………………
iv. ……………………………………………………………………………………………………
v. ……………………………………………………………………………………………………

Form Two Commerce August 2020

Page 3
7. Mention four factor of production
i. ……………………………………………………………………………………………………
ii. …………………………………………………………………………………………………...
iii. ……………………………………………………………………………………………………
iv. ……………………………………………………………………………………………………

SECTION C (40 Marks)

Choose only two question from this sections.

8. i. You are given the following information

Price of Y Tshs Quality of bought in

month
10 70
15 60
20 50
25 40
30 30

a) Draw a graph to represent the above schedule

b) Explain what your graph

ii. What are the advantage and disadvantages of price mechanisms.

9. Explain ten factor influencing elasticity of demand for a commodity

10. Explain ten factor influencing supply.

Form Two Commerce August 2020

Page 4