Monthly Test – October 2021

Paper = / 96
Subject : Commerce Handwriting = / 04
Class : 8 …....... Total = / 100
Duration : 1 Period
Date : ...........................................
Candidate's name : ......................................................... Admission no : .............................

Instructions: Choose the correct answer, write the alphabet letter only.

Part 1

1. (i) Which of the following is not true?

a) Needs are essential for living.
b) Wants are not essential for living.
c) Needs are limited and basic in nature.
d) Wants are limited and unlimited in nature.

(ii) The basic economic problem exists because of the following reason:
a) Consumers don’t know how unlimited their wants are.
b) Unlimited needs and wants and limited amount of resources.
c) Unlimited nature of resources is causing this problem.
d) What to produce, how to produce, whom to produce?

(iii) The value of the next best alternative foregone when a choice is made is defined as
a) Value foregone.
b) Opportunity cost.
c) Market research.
d) Economic problem.

(iv) A system of production and exchange of goods and services as well as allocation of
resources in a society is defined as
a) an economic system.
b) a Mixed economic system.
c) a Free market economy.
d) a Planned market economy.

(v) Insurance, finance and warehousing are examples of

a) production.
b) Aids to trade.
c) trade.
d) business organizations.
Grade 8 Commerce Monthly Test October 2021
Prepared for Lyceum International Schools by Lyceum Assessments
 2
(vi) Which of the following is not true about Command Economy?
a) There is no private sector or privately owned businesses.
b) The state plans and controls the use of resources.
c) What to produce, how much and when is decided by the government.
d) People have freedom of choice on what they want to buy and where they want to
work.

(vii) Two or more businesses agreeing to start a new business together is called
a) joint ventures. b) multinationals.
c) limited companies. d) partnership.

(viii)Which of the following is true about Mixed Economy?

a) No country is involved in mixed market economy.
b) A mixed economy has no privately owned business.
c) Some goods and services are provided free of charge.
d) A mixed economy has no government control.

(ix) The main objective of a public sector organization is,

a) to maximize profit.
b) to help people by reducing taxes.
c) to provide more job opportunities.
d) to increase the value of its market share.

(x) What is the main purpose of ‘Business’?

a) Provide goods and services which are expected to satisfy needs only.
b) Provide services to the general public alone.
c) Provide goods and services to health care workers as well as protection.
d) Provide goods and services which are expected to satisfy human needs and wants.

[Total = 2 × 10 = 20 marks]

2. Mark if the following is ‘true’ or ‘false’ (T/F).

(i) Those who are involved in selling goods for re-sale are known as wholesalers. ( )

(ii) When an organization does business, it must not protect its assets. ( )

(iii) Every partnership must not have an agreement stating the capital
introduced by each partner. ( )

(iv) The franchisee pays the franchiser to use the brand name and operate a similar
business. ( )

(v) Public organizations are owned and managed by the private sectors. ( )

[Total = 2 × 5 = 10 marks]
Grade 8 Commerce Monthly Test October 2021
Prepared for Lyceum International Schools by Lyceum Assessments
 3
3. Fill in the blanks with the correct answer. ( Write only the answer )
Nationalization, Privatization, Private organizations, public, Partnership, Sole trader,
Limited liability business

(i) --------------------- is when the State takes over certain businesses in the private sector.
(ii) Local government authorities or Municipal offers certain services to the
--------------------- .
(iii) --------------------- is where state owned organizations are bought over by the private sector.
(iv) A single owner business is called --------------------- .
(v) The owners who are not personally held responsible for the losses of the business type is
called --------------------- .
[Total = 2 × 5 = 10 marks]

Part 2

4. Answer in brief.
A business organization is where a group of people work for a common goal. ‘Business
organizations operate in two sectors’

(i) State two advantages and two disadvantages of a partnership business.

Advantages
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
(5 marks)
Disadvantages
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
(5 marks)

(ii) List five features of a Command Economy.

------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
(5 marks)

Grade 8 Commerce Monthly Test October 2021

Prepared for Lyceum International Schools by Lyceum Assessments
 4
(iii) State four advantages and four disadvantages of a Sole trader business.

Advantages

------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
(4 marks)
Disadvantages
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
(4 marks)
(iv) List two advantages and disadvantages of Public Limited companies.
Advantages
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
(4 marks)
Disadvantages
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
(4 marks)
[Total = 31 marks]

5. Write answers in brief.

(i) Why is business activity needed in our day-to-day lives?
(ii) Aids to Trade

(iii) What is the understanding of real economic problem?

(iv) Nationalization and Privatization

(v) Mixed Economy

[Total = 5 × 5 = 25 marks]
END
Ref: CG
Grade 8 Commerce Monthly Test October 2021
Prepared for Lyceum International Schools by Lyceum Assessments