CANDIDATES’ NUMBER ___________________________________________________

PRESIDENT’S OFFICE
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT
MUFINDI DISTRICT COUNCIL
FORM ONE ANNUAL EXAMINATION NOVEMBER, 2021
061 COMMERCE
Time: 2:30 Hours
Instructions
1. This paper consists of sections A, B and C with a total of seven (7) questions.
2. Answer all questions in sections A B and C in the space provided.
3. All writings must be in black or blue ink except diagrams which must be in pencil.
4. Cellular phones and calculating devices are not allowed in the examination room
5. All communication devices, calculators and any unauthorized materials are not allowed
in the assessment room.
6. Write your Assessment Number at the top right hand corner of every page.

FOR EXAMINERS USE ONLY

QUESTION SCORE EXAMINERS’ INITIALS

NUMBER.
1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

TOTAL.

Page 1 of 9
CANDIDATES’ NUMBER ___________________________________________________

SECTION A (30 Marks)

Answer all questions in this section.
1. Choose the most correct answer among the given alternatives and write its letter in the
table of answer provided at the end of this question.
(i) Which of the following functions is NOT normally done by the wholesaler?
A. Storage B. Sell goods to consumer C. Transporting D.
Financing

(ii) Who is the businessman who does not have permanent premises?
A. Broker B. Underwriter C. Itinerant trader D. Barrow
Boys

(iii) Which type of warehouse used to store imported goods before custom duty is
paid?
A. Private warehouse C. Public warehouse
B. Bonded warehouse D. Manufacturer warehouse

(iv) What is the formula for calculating profit margin?

A. Cost of goods sold divide by average stock
B. Opening stock plus closing stock divide by two
C. Gross profit divide b y cost price
D. Gross profit divide by selling price

(v) What is the main objective of commerce?

A. To enable trader to earn profit C. To enable consumer to buy goods
B. To bridge the gap between producer and consumer
C. To enable consumer to buy goods
D. Help manufacturer to produce goods

(vi) The abbreviation of “CWO” on the order form means?

A. Cash with order C. Cash with offer
B. Come with order D. Cash with omission

(vii) The difference between cost price and selling price is?
A. Net profit B. Net loss C. Gross profit D. Gross loss

(viii) Mrs. Maganga’s total sales during the year 2018 was Tsh.160,000/= if her profit
was 20% of sales. What was the cost of goods sold during the year?
A. Tsh.128,000/= B. Tsh.160,000/= C. Tsh.32,000/= D.
Tsh.16,000
(ix) Suppose a form one commerce students asked you about the best way of
describing the term commerce. Which of the following is the best response you
should give?
A. Commerce deals with distribution of goods and services
B. Commerce deals with exchange of goods and consumers
C. Commerce deals with exchange of goods and services outside the country.
Page 2 of 9
CANDIDATES’ NUMBER ___________________________________________________

D. Commerce deals with exchange and distribution of goods and services.

(x) A credit Note is issued to correct;

A. Any error in an invoice C. Any undercharge in an invoice
B. Any overcharge in an invoice D. Any undercharge in a statement

item i ii iii iv v vi vii viii ix x

answer

2. 2. Match the items in List A with the correct response from List B.
LIST A LIST B
(i) The price for the use of land as a factor of A. Salary
production B. Producers
(ii) Activity undertaken for making profit . C. Marginal cost
(iii) Goods which are highly demanded by higher D. Stock control
income earners E. Rent
(iv) The cost of production of one more unit of output F. Business
produced. G. Goods of
(v) Individuals or group of people engaging in ostentation
making goods or render services

LIST A (i) (ii) (iii) (iv) (v)

LIST B

3. (a) Write TRUE for correct statement and FALSE for incorrect statement.
(i) Assets are resources owned by a business. _______________
(ii) Agent of production is the economic resources which assist the process of
production. ________________
(iii) Quotation is the statement which shows the amount of goods and services
that have been supplied and the total owned by the buyer. _____________
(iv) Food, car, soft drinks and phone are necessary items to human life,
without them one dies. ______________
(v) Salary is the payment for the use of land _______
(vi) Department store is the type of large scale retailer which operates its
business under one roof and management. _____________
(vii) Domestic trade is the trade carried out between nations . ______________
(viii) Invoice is sent to people who have bought goods on cash. ____________
(ix) Broker arranges for the business transaction between two parties and
receives a fee. ______

Page 3 of 9
CANDIDATES’ NUMBER ___________________________________________________

(x) A retailer who sells only coca-cola products is good example of tied shop.
_______
(b) Fill in the blanks.
(i) _____________________ is the arrangement where the product remains
the hands of seller until the last installment is paid.
(ii) _____________________ is the cost which increase or decrease with the
level of output.
(iii) _____________________ is the table that shows the quantity of
commodity that a buyer is willing to buy from the market at different
price.
(iv) _____________________ is any physical or mental effort of human being
applied in production process.
(v) _____________________ means the route through which goods flow
from the producer to the consumer.

SECTION B: (30 MARKS)

4. (a) Define the following terms;
(i) Demand:
_____________________________________________________
____________________________________________________________
____________________________________________________________
______________
(ii) Transportation :
______________________________________________________
____________________________________________________________
____________________________________________________________
______________
(iii) Cash on delivery:
____________________________________________________
____________________________________________________________
____________________________________________________________
______________
(iv) Trade discount:
______________________________________________________
____________________________________________________________
____________________________________________________________
______________
(v)Entrepreneur _____________________________________________________
___________________________________________________________________

Page 4 of 9
CANDIDATES’ NUMBER ___________________________________________________

5. (a) Briefly explain wholesale trade?

(b) Describe any five (5) challenges that face retail traders in Tanzania.
i. __________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
ii ___________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
iii.___________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
iv.___________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
v __________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

SECTIONC (40 Marks)

Answer all questions in this section
6. The success or failure of an entrepreneurial business depends on the ability of the
entrepreneur to organize his business. A successful entrepreneur poses different
characteristics. Describe five of them.
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Page 5 of 9
CANDIDATES’ NUMBER ___________________________________________________

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
________________________________________________________
7. (a)what is self-employment
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
b) Briefly explains five (5) factors affecting efficiency of labour.
i. _____________________________________________________________________
__________________________________________________________________
ii.______________________________________________________________________
________________________________________________________________
iii._____________________________________________________________________
__________________________________________________________________
iv._____________________________________________________________________
_________________________________________________________________
Page 6 of 9
CANDIDATES’ NUMBER ___________________________________________________

v.______________________________________________________________________
__________________________________________________________________

Page 7 of 9
CANDIDATES’ NUMBER ___________________________________________________

MARKING SCHEME
COMMERCE-FORM ONE
NOVEMBER 2021
SECTION A (30 MARKS)
1. MULTIPLE CHOICE-10 Marks@1
i ii iii iv v vi vii viii ix x
B C B A B A B A D C

2. Matching the items. 05 Mark@1

List A i ii iii iv v
List B E F G C B

3. (a) True or False. 10 Marks@1

i ii iii iv v vi vii viii ix x
T T T F F T F F T T
(b) Fill in the blanks. 05 Marks@1
i. Hire purchase
ii. Variable cost
iii. Demand schedule
iv. Labour
v. Chain of distribution
SECTION B (30 MARKS)
4. Definition of terms. 15 Marks@3
i. Demand is willingness and the ability to buy a certain quantity of a commodity at
a going price and specific period of time
ii. Transportation this is the process of transporting goods and passengers from one
place to another place.
iii. Cash on delivery means the buyer is supposed to pay cash when the goods are
delivered to them.
iv. Trade discount this is an allowance/ deduction made if goods are sold whose price
is either fixed or controlled or generally known.
v. Entrepreneur is the owner of the business. Is the one who organizes other factors
of production in the production process and establishes business.

5. (a) Wholesale trade is the trade of buying goods in large quantities from
producer/manufacturer and sell them I large quantities to retailer. 05 Marks.
(b) Challenges faced by Retail Traders. 10 Marks@2
i. Limited areas to locate their business
ii. Uncertainty of continuity
iii. Limited possibility of expansion
Page 8 of 9
CANDIDATES’ NUMBER ___________________________________________________

iv. Poor transport and communication

v. Lack of training
vi. Lack of storage facilities
SECTION C (40 MARKS)
6. Characteristics of Entrepreneur. 20 Marks@4
i. Self-motivation
ii. Take risks
iii. Understand what you offer
iv. Know how to network
v. Flexibility
7. (a) Self-employment is the state of working for oneself rather than an employer, 05 marks
(b) Factors affecting efficiency of labour. 15 Marks@3 for any five points
i. Education and training
ii. Social services to workers and other incentives
iii. Levels of wages
iv. Peace of mind
v. Experience
vi. Health of the worker
vii. Normal weather condition

Page 9 of 9