Monthly Test - January 2022

Subject : Commerce Paper = /48

Handwriting = /02
Class : 8 …....... Total = /100
Duration : 1 period Date : .........……….................…
Candidate's name : ................................................................... Admission no : .....…...................
Part – I
(1) Underline the most suitable answer.
(i) A collection of factors that affect the functions of a business organization directly or
indirectly is called
(a) business organization. (b) business environment.
(c) business functions. (d) business processes.

(ii) ---------------1------------- is an internal environment factor and ---------------2------------- is

an external environment factor.
Select the correct answers for 1 and 2 respectively.
(a) Production and operations, political environment
(b) Political environment, production and operations
(c) Political environment, social environment
(d) Social environment, production and operations

(iii) Select the correct statement relevant to the external environment of a trading business.
(a) Ensure the sufficient availability of funds.
(b) Continuous increase in general price level.
(c) Creation of a new plan to compete with the competitors of the business.
(d) Implementing new production technique in order to increase productivity.

(iv) A visual representation of how work is divided in an organization is called

(a) organization structure. (b) organization divisions.
(c) organization strategy. (d) organization functions.

(v) What is the new invention in the industry of information technology?

(a) Using posters, banners and handouts to promote products.
(b) Using manual methods to record business transactions and other events.
(c) Using snail mails and telegrams to send ideas, messages and information.
(d) Using debit cards and credit cards to settle payments instead of notes and coins.

Grade 8 Commerce - Monthly Test January 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 2
(vi) Which one of the following is not a function of marketing department?
(a) Deciding the best marketing mix
(b) Selecting the best manufacturing method
(c) Doing market research to identify new opportunities
(d) Doing market research to identify consumer needs and wants

(vii) Which one of the following is not an objective of marketing?

(a) Increasing product awareness among target consumers
(b) Providing information about product features
(c) Increasing sales and consumer loyalty
(d) Increasing motivation of employees

(viii) ------------------------------------- refers to all the activities undertaken to make the

product known to the user.
(a) Packaging (b) Positioning
(c) Place (d) Promotion

(ix) Which one of the following is not an example for a product?

(a) Motor vehicle (b) Personal computer
(c) Machinery (d) Supermarket

(x) Select the correct answer related to market segmentation.

(a) Expanding the existing market is called market segmentation.
(b) Introducing a new product to the target markets is called market segmentation.
(c) Dividing target markets into approachable groups is called market segmentation.
(d) Customizing the products in order to increase the market share is called market
segmentation.

[Total = 2 × 10 = 20 marks]

Grade 8 Commerce - Monthly Test January 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 3
(2) Mark the following True (T) or False (F).
(i) Consumer trends and attitudes is an example for internal environment factor. (--------)

(ii) Few layers of management and slow decision making are features of tall
organization structure. (--------)

(iii) Ability to transfer large amounts of data is an advantage of information

technology. (--------)

(iv) Delayering means removing one or more levels of hierarchy from the
organizational structure. (--------)

(v) Televisions, radio broadcast, magazines, articles and newspapers are examples
for mass media. (--------)

[Total = 2 × 5 = 10 marks]

(3) Match column A with column B and write the correct letter in the grid provided
below.
A B

(i) The changes in foreign exchange rate (a) Tall Structure

(ii) Narrow span of control (b) Internal Environment

(iii) The amount of money charged for a product (c) Flat Structure

(iv) Good financial strength (d) External Environment

(v) Short chain of command (e) Price

(i) (ii) (iii) (iv) (v)

[Total = 2 × 5 = 10 marks]

Grade 8 Commerce - Monthly Test January 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 4
Part – II
Answer all the questions.
(1) Ban for importing artificial fertilizer by the government of Sri Lanka, in order to promote
the organic fertilizer and healthy food solution which allows Sri Lankans to grow and eat
organic, fresh and healthy food.
(i) Identify the external environment factor related to the above case.
----------------------------------------------------------------------------------------
(1 mark)
(ii) Write two advantages of analysing the external environment.
(a) --------------------------------------------------------------------------------------
(b) --------------------------------------------------------------------------------------
(1 mark)
(iii) Write two internal environment factors which affect the business.
(a) ---------------------------------------------------------
(b) ---------------------------------------------------------
(1 mark)
(iv) Write two effects of not having a clear organisational structure.
(a) ----------------------------------------------------------------------------
(b) ----------------------------------------------------------------------------
(1 mark)
(v) Information technology is the application of computers to create, process, store, retrieve
and exchange data and information. Write two advantages of Information Technology.
(a) --------------------------------------------------------------------------------
(b) --------------------------------------------------------------------------------
(1 mark)
(vi) Write the marketing tools (marketing mix) which are used to maximize customer
satisfaction and the profitability of the business.
(a) -------------------------------------------------------------------------
(b) -------------------------------------------------------------------------
(c) -------------------------------------------------------------------------
(d) -------------------------------------------------------------------------
(1 mark)

Grade 8 Commerce - Monthly Test January 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 5
(vii) ‘Next Tech IT Solution’ is a trading business which sells computers, tablets, laptops and
many other telecommunication equipment. Fill the following table using appropriate
examples.

Promotion methods Example

1. Sales promotion
2. Public relations

(1 mark)
(viii)Write two criteria which can be used to segment the market.
(a) -------------------------------------------------------------------------------
(b) -------------------------------------------------------------------------------
(1 mark)
[Total = 8 marks]

END

Ref: CJ

Grade 8 Commerce - Monthly Test January 2022

Prepared for Lyceum International Schools by Lyceum Assessments