@ LYCEUM LYCEUM INTERNATIONAL SCHOOLS ASSESSMENTS Second Semester Examination — July 2022 Paper Handwriting Subject : Commerce Class :8 Duration : 2 periods Candidate’s name : Answer all the questions. 1. Underline the most suitable answer. (i) What is the difference between human needs and wants? (a) Needs are essential and wants are limited. (b) Needs are not essential and wants are unlimited, (©) Needs are essential and wants are unlimited. (d)_ Needs are not essential and wants are common, (ii) Which one of the following is not an advantage of business organizations? (a) Generating profits for investors (b) Supporting to decrease the quality of life (©) Providing required goods and services (d) Introducing innovations to the market (iii) Which one of the following is not an example for trade? (a). Selling stationery items of Rs. 150 000 (b) Buying stationery items of Rs. 200 000 (©) Deciding to obtain a new building worth of Rs. 2.5 million (@) Paying salaries and wages Rs. 35 000 Grade 8 Commerce Second Semester Examination - July 2022 Prepared for Lyceum International Schools by Lyceum Assessments2 (iv) An annual payment for an insurance company is called (a) insurance premium (b) insurance claim (©) insurance policy (@) insurance agreement (v) Which one of the following is a feature of free market economy? (2) Production of goods with greater demand. (b) There are no private sector businesses. (©) All resources are owned by the state. (@ Production of luxury goods is limited. (vi) Following are features of business organizations. A. - Owned and controlled by the government B_ - Providing essential services C_ - Profit motive D_ - Owned by single owner Out of the above, select the features of ‘State Pharmaceuticals Corporation of Sri Lanka’. (a) AandB (b) Aandc (©) Band (@) CandD (vii)Limited liability is an advantage of (2). Sarath Traders (b) Farmer's Association (©) Unilever PLC (d) Silva & Sons (viii)Select the correct answer regarding basic accounting equation. (a) Capital = Assets + Liabilities (b) Capital = Assets - Liabilities (©) Liabilities Assets + Capital (A) Liabilities = Capital - Assets Grade 8 Commerce Second Semester Examin ion - July 2022 Prepared for Lyceum International Schools by Lyceum Assessments3 (ix) Which is the correct transaction related to the given double entry? Cash Account Dr 2,500 Sales Account Cr 2,500 (a) Sold goods worth of $ 2,500 (6) Bought goods worth of $ 2,500 (c) Sold a vehicle worth of $ 2,500 (d) Bought equipment worth of $ 2,500 (x) Select the answer which includes only examples for assets. (a) Bank Overdraft, Inventory, Bank Loan, Land and Building (6) Bank Overdraft, Land and Building, Bank Loan, Inventory (©) Bank balance, Inventory, Land and Building, Trade debtors (@) Bank balance, Inventory, Bank Overdraft, Land and Building [Total = 2 x 10 = 20 marks] 2, Mark True (T) or False (F). (i) Goods and services can be stored in warehouses securely. (ii) Double entry for depositing cash in bank account $ 100 is Bank Account Dr 100 Cash Account Cr 100 (iii) Ceylon Agri (Pvt) Ltd. must publish its financial reports annually. (iv) There is a direct relationship between the price and quantity supplied. (v) Value addition = Product price — Cost of production [Total x 5=10 marks} Grade 8 Commerce Second Semester Examination - July 2022 Prepared for Lyceum International Schools by Lyceum Assessments4 3. Match column A with column B and write the correct letter in the grid provided below. A B (i Using modem technology in the (a) Autocratic leadership production process (ii) Decreasing the unemployment rate (b) Laissez-faire leadership (iii) Ability to identify strengths and (©) Capital intensive production weaknesses of employees (iv) Giving complete freedom for subordinates (4) Labour intensive production to take decisions (v) Taking all the decisions by the leader (e) Performance appraisal x @ wD @ | © o B [Total = 2 x 5 = 10 marks] 4, Fill in the blanks with the following words. Iprivatization, accounting, Public Corporations, inflation, legal environment factor, economic environment factor] (i) The process of identifying, measuring and communicating economic information to stakeholders for deci mn making is called i) Ability to improve efficiency and productivity is an advantage of (iii) Keeping the prices of essentials low and affordable is an objective of (iv) Workers health and safety law is a - (¥)_ Increasing general pric level and falling of the purchasing value of money is called [Total = 2 x 5 = 10 marks} Grade 8 Commerce Second Semester Examin ion - July 2022 Prepared for Lyceum International Schools by Lyceum AssessmentsPart—2 Answer all the questions. 1. i) Define the term ‘Trade’ (2 marks) (ii) (@) What is meant by export trade? (1 mark) (b) Write four examples for export products of Sti Lanka, 1 I UL IV. (2 marks) (©) Write two L - pporting services (aids to trade) for export businesses. 1 - (2 marks) (ii) Transportation is important for all business organizations. Write twa factors to be considered when selecting an appropriate transportation method. @- 0) (2 marks) (iv) (@) Business environment influences a business organization in different ways. Write two internal environment factors. 0, (2 marks) environment of the business. (b) Write one advantage of studying busines: (1 mark) [Total = 12 marks] Grade 8 Commerce Second Semester Examination - July 2022 Prepared for Lyceum International Schools by Lyceum Assessments6 2. CAFE MILK is a private owned restaurant with over fifty employees and they have a well experienced and talented management. (i) Write two advantages of starting sole proprietorship. @ o) (2 marks) (ii) Owner wants to incorporate his business as private limited company. Write twe advantages of converting sole proprietorship into private limited company. (a) ) (2 marks) (iii) Lack of knowledge of Information Technology causes many issues. Write two issues on businesses due to lack of knowledge of Information Technology. @) ) (2 marks) iv) Motivation is a good strategy to increase the productivity level of businesses. What are the problems of having demotivated employees? (@) (b) (2 marks) (v) Modern technology and machines are used in the production process in ‘CAFE MILK’. (a) Write two inputs of the production process of ‘CAFE MILK’ L - I - (2 marks) (b) Write two advantages of using capital intensive method for the production process of “CAFE MILK’. L - u - (2 marks) [Total = 12 marks] Grade 8 Commerce Second Semester Examin ion - July 2022 Prepared for Lyceum International Schools by Lyceum Assessments4 DAZD is an automobile manufacturing company which introduced a new electric car with high capacity to the market () (@)_ Write twa functions of the Marketing Department. L - 1 - (2 marks) (b) Write one substitute for an electric car (mark) (©) Prices of motor vehicles which are powered by fuel were increased recently. What is the impact of quantity demanded of electric vehicles? (1 mark) (ii) (@) Write two functions of the Human Resource Department. (2 marks) (b). Write two advantages of maintaining good employer and employee relationship. L - W - (2 marks) (iii) (@) Write twa impacts of not keeping a proper accounting system. (2 marks) (b) Write two users of accounting reports. L n - (2 marks) Grade 8 Commerce Second Semester Examination - July 2022 Prepared for Lyceum International Schools by Lyceum Assessments8 (©) The following shows the impact of transactions on accounting equation, Write possible transactions for A, B and C with the related value. Transaction Assets = Capital + Liabilities @ +25 000 +25 000 Cash Capital ‘®B) +30 000 +30 000 Cash Loan © = 10 000 Cash + 10 000 Equipment (3 marks) (d) Define the term ‘Assets’, (1 mark) (©) The following transactions are related to Sagara Traders. Write double entries for the following transactions. ‘Transaction Account to be debited Account to be credited 1. Owner invested $10,000 as Capital 2, Obtained a loan $20,000 Bought a machine worth of $5,000 4, Withdrew $ 1,000 by the owner for his personal use 5, Paid loan installment $2,500 (5 marks) [Total = 21 marks] ENI Grade 8 Commerce Second Semester Examination - July 2022 Prepared for Lyceum International Schools by Lyceum Assessments RefiCG