My Exam Practice Kit

Commerce
My Exam Practice Kit

O Level

With answers
Exam hints and tips
Exam practice papers
Topical questions and answers

Mercy Dube
Winee Mlilo
My Exam Practice Kit
COMMERCE
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O-LEVEL
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Mercy Dube
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Winee Mlilo
Sa
 Gramsol
Commerce O-Level
Examination Practice

Published by
Gramsol Books
46 Kwame Nkrumah Avenue,
Harare. 2021
www.gramsol.com

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Tel. 0864 420 9124

© Gramsol Books
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The moral rights of the authors have been asserted.
Publisher: Sandura Tafadzwa
Managing Editor: Mbono Njabulo
Commissioning Editor : Madenga Tatenda Lisa
Development Editor:
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Typeset by Mbono Njabulo
Cover by Chikanga Francis

Printed by Gramsol Books

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ISBN: 978-1-77921-442-3

Legal Notice
All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted
in any form, or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior
written permission from the Gramsol Books.

You must not circulate this book in any other binding or cover and you must impose this same condition on
any inquirer.
 CONTENTS

Topic 1: Production.............................................................................................1
Topic 2: Trade.....................................................................................................6
Topic 3: Consumer protection...........................................................................11
Topic 4: Business organisation..........................................................................13
Topic 5: Enterprise............................................................................................15
Topic 6: Finance and Banking............................................................................17
Topic 7: Insurance and Assurance.....................................................................20
Topic 8: Communication....................................................................................22
Topic 9: Transport.............................................................................................25
Topic 10: Warehousing......................................................................................27

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Topic 11: Marketing..........................................................................................29
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Examination Practice 1.....................................................................................31
Examination Practice 1.....................................................................................34
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Examination Practice 1.....................................................................................35
Examination Practice 1.....................................................................................38
Examination Practice 1.....................................................................................39
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Examination Practice 1.....................................................................................42

Examination Practice 1.....................................................................................43
Examination Practice 1.....................................................................................46
Examination Practice 1.....................................................................................47
Examination Practice 1.....................................................................................50
Examination Practice 1.....................................................................................51
Examination Practice 1.....................................................................................54
Examination Practice 1.....................................................................................55
Examination Practice 1.....................................................................................58

Answers............................................................................................................59
APPROACH TO ANSWERING EXAM QUESTIONS

To gain full marks, you need to:

• support explanations using scientific knowledge and understanding.
• use appropriate scientific words and terms.
• write clearly and logically link ideas.
• maintain a sustained line of reasoning, rather than getting lost or bogged down.
Six-mark questions are extended open response questions. These require longer answers than other
questions. It is wise to plan your answer rather than rushing straight into it. Otherwise, you may stray away
from the key points.

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 1 PRODUCTION

Answer all questions

Multiple choice C. Processing, extraction, distribution
1. Which of the following defines the term D. Extraction, processing, distribution
“commerce”? 9. Which part is not industry?
A. Distribution of goods and services A. Construction
B. Making of goods and services B. Extraction
C. Provision of goods and services C. Manufacturing
D. Selling of goods and services D. Trade
2. Human needs are___________. 10. The following are processes of value
A. essentials in people’s lives addition except_________.
B. items people can live without A. drying
C. luxurious goods and services B. harvesting
D. satisfied by watching television C. milling
3. Who is last in the chain of production? D. salting
A. Wholesaler
B. Retailer
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11. Tertiary production involves__________.
A. manufacturing
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C. Manufacturer B. mining
D. Consumer C. processing
4. Direct production is producing D. selling
goods_____________. 12. Which of the following good is obtained
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A. directly to the consumer from primary production?
B. in large quantities A. Car
C. to satisfy one’s own needs B. Flour
D. with the help of other people C. Ore
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5. Which of the following is an advantage of D. Tractor

specialisation?
A. Goods are produced to one’s taste
B. High quality goods are produced
C. The worker can easily change jobs
D. The worker learns a variety of skills
6. Which of the following is a consumer good?
A. Fertilizer
B. Plough
C. Seed
D. Vegetables
7. Which one is not part of secondary production?
A. Assembling motor parts
B. Building a shop
C. Growing crops
D. Grinding maize
8. Which set gives the correct order of production
activities?
A. Distribution, processing, extraction
B. Extraction, distribution, processing
13. Standardisation is_____________.
A. doing work in which one is talented in
B. making goods for one’s use
C. Producing similar goods
D. Splitting work into small tasks
14. Which is the most appropriate channel for
the distribution of perishable?
A. Producer-----------consumer
B. Producer----retailer----consumer
C. Producer ----wholesaler---- consumer
D. Producer----wholesaler----retailer----consumer
15. Goods required for personal use are called
____________.
A. agricultural goods
B. consumer goods
C. capital goods
D. producer goods
16. Division of labour is_____________.
A. doing work in which one is talented in

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 B. making goods for one’s use SECTION B
C. Producing similar goods ESSAY QUESTIONS
D. Splitting work into small tasks 1. What are the purposes of trade? [12]
17. Which process is not part of beneficiation? 2. State five advantages and five disadvantages of
specialisation. [10]
A. Baking
3. Distinguish between direct and indirect
B. Ginning
production. [12]
C. Husking
4. State the advantages of division of labour. [8]
D. Smelting
5. List and explain the factors considered when
18. What collective name is given to those factors selecting channels of distribution. [12]
that interact with an organisation in its day to day
6. How do advertising and communication benefit a
operations?
manufacturer? [12]
A. Market segmentation
7. Explain the reasons for wholesaler elimination. [8]
B. Marketing mix
8. What is meant by the term “industry”? [8]
C. Intellectual property
9. Explain the role played by the government in
D. Business environment indigenising the economy. [8]
19. Which external environment factor is regarded as 10. How do transport and insurance assist an
or associated with “creative destruction”? exporter of tobacco? [12]
A. Political 11. Outline the advantages and disadvantages of the
B. Technological exploitation of natural resources. [10]
C. Physical 12. Explain the term production. [20]
D. Economical
20. PESTLE is an acronym for the elements of
_____________.
e 13. Explain the following terms:
a) Indirect production [6]
b) Tertiary production [6]
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A. External environment 14. Describe the external factors of a business
B. Factors of production environment. [20]
C. Internal environment 15. Distinguish between industry and commerce.
[12]
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D. Market segmentation
16. Explain the following:
SECTION A (i) Primary production
STRUCTURED QUESTIONS (ii) Secondary production
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1. Distinguish between commercial services and 17. Describe the importance of banking to a farmer.
direct services. [4] [10]
2. Name any two factors of production and their 18. Explain the four factors of production. [20]
rewards. [4] 19. Explain the term human wants and needs. How
3. List any three forms of specialisation. [3] are they satisfied? [10]
4. List three advantages of value addition. [3] 20. State the importance of warehousing to:
5. State any two systems of ownership of means of a) A large chain supermarket [5]
production. [2] b) Wine importer [5]
6. List any two internal factors of a business 21. Discuss the term commerce. [20]
environment. [2]
7. State any three problems of barter. [5]
8. Outline the disadvantages of division of labour. [4]
9. Distinguish between primary and secondary
industries. [6]
10. What is beneficiation? [3]
11. Give reasons why land is important for our
Zimbabwean economy. [3]
12. What are the benefits of mass production? [8]

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8. State the importance and contents of the following documents:
i) Partnership deed [8]
ii) Certificate of trading [6]
iii) Certificate of incorporation [6]
9 a) In connection with business organisations, explain the following terms:
i) Annual General Meeting (AGM)
ii) Board of Directors
iii) Legal entity [12]
b). Outline challenges faced by Small and Medium Enterprises. [8]
10. State the contents and importance of the following documents:
i) Prospectus [6]
ii) Articles of Association [7]
iii) Memorandum of Association [7]
11 a) Identify similarities between a public and private limited company. [10]
b) How can the government assist Small and Medium Enterprises? [10]
12 a) Outline the features of Traders Associations. [10]
b) What are the reasons for forming Marketing Boards? [10]

5 ENTERPRISE
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Answer all questions
4. Which of the following is not a business ethic?
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MULTIPLE CHOICE A. Honesty
1. What is piracy in intellectual property? B. Reliability
A. Copying of written material without C. Profitability
acknowledgement D. Trustworthiness
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B. Copying and selling of an artist’s work without
acknowledgement
C. Copying and using a trademark without
permission
D. Copying of an industrial design by a third
party
2. A management function that describes
bringing people together in an organisation is
called_________.
A. Controlling
B. Planning
C. Coordinating
D. Directing
3. Business ethics refer to___________.
A. rules and regulations set for the personnel
B. rules and regulations stated in the business
plan
C. a set of policies prescribed by the government
D. moral principles that guide a business conduct
5. Which of the following is unethical behaviour in
business?
A. Corruption
B. Honesty
C. Transparency
D. Fairness
6. What is an entrepreneur?
A. A book-keeper who maintains accounts
B. A salesperson who markets goods
C. One who takes financial risks
D. Someone who calculates premiums
7. Planning as a management function deals with
___________.
A. bringing workers together
B. ensuring that workers do different jobs
C. finding out whether aims are met
D. setting goals for the business
8. The following are types of intellectual property
except____________.
A. patents

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8. Examine the benefits of insurance [10]
9. Explain reasons for the formation of the National Social Security Authority (NSSA). [10]
10. With the aid of examples, explain the following principles of insurance:
(i) indemnity
(ii) insurable interest
(iii) outmost good faith [12]
11. Explain the purpose of the Export Credit Guarantee Corporation and Export Credit Guarantee
Department, or how does the Credit Guarantee Department assist exporters? [10]
12. Discuss the advantages of e-insurance. [12]
13. Discuss the principles of subrogation and contribution. [8]
14. Assess the benefits of assurance. [8]
15. State advantages and ICT in insurance and assurance. [10]
16. Explain the characteristic of the following insurance policies:
(i). Fire insurance
(ii). Home owner’s insurance [8]
17. List and explain any five documents in insurance. [20]
18. Discuss marine insurance and explain at least two marine insurance policies. [12]
19. Describe any three motor vehicle insurance policies. [12]
20. Discuss the following types of insurance policies:
(i) Household insurance policy
(ii)
(iii)
Group personal accident insurance policy
Funeral policies
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(iv) Pluvius policy
21. Explain the disadvantages of ICT in insurance. [10]
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8 COMMUNICATION
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Answer all questions

MULTIPLE CHOICE B. call a doctor in an emergency

1. Communication is the exchange of C. call the shareholders to an annual general
____________. meeting (AGM)
A. goods and services D. call the police to attend to an accident
B. computers 4. Under what circumstances would a trader
use a franking machine?
C. information
A. When the safety of mail is required
D. money
B. When sending important documents
2. The method of communication that can be
used to send exact images and copied materials is C. When speedy delivery is required
called________. D. When sending large volumes of mail
A. confravision 5. Which service is used by a sales person who
B. poste restante is away from his station?
C. Radio paging A. Recorded delivery
D. Facsimile B. Datel
3. Radio paging is used when________. C. Poste restante
A. call a fire bridged D. Business reply

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 10 WAREHOUSING

Answer all questions

B. Are constantly the same
1. Which duty is charged on goods in a bonded C. Determine the type of customer
warehouse?
D. Patterns rarely match
A. Ad-valorem
9. Which one is not true for warehousing?
B. Customs
A. It enables mass production
C. Excise
B. It minimises price fluctuations
D. Value-added
C. It stores surplus goods
2. The purpose of a warehouse is to store________.
D. It produces capital goods
A. expired goods
10. Indigenous storage systems are used to
B. goods to raise prices store_______.
C. boarded goods A. perishables
D. seasonal goods B. fuel and gases
3. When are goods released from a bonded C. durable goods
warehouse?
A. When a warehouse receipt is issued
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11. Tracking and verification of the products in a
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B. When goods have been branded warehouse is facilitated by ________.
C. When the owner produces a customs warranty A. barcoding
D. When the warehouse owner receives rent B. branding
4. Goods in a bonded warehouse cannot C. grading
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be_________.
D. packaging
A. graded
12. Which process is not done in the
B. manufactured warehouse?
C. packed
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A. Blending
D. bottled B. Grading
5. Why do chain stores need warehouses? C. Branding
A. To avoid high distribution of goods D. Grinding
B. To avoid high advertising costs 13. Which one is not an indigenous storage system?
C. To avoid the possibility of stock-outs A. Basket
D. To protect goods against theft B. Caves
6. In which warehouse are perishables stored? C. hut
A. Cold storage D. Grain silo
B. Fuel tank 14. Which one does not apply to bonded
C. Grain silo warehouses?
D. Households’ storage A. They are located at the entry ports
7. Why are seasonal goods such as fruits kept in a B. A customs authority supervises them
warehouse? C. Save manufacturer’s capital
A. To allow regular consumption of fruits D. Stores goods whose duty has not been paid
B. To create a shortage of fruits 15. Identify a public warehouse
C. To increase the price of fruits A. Bonded warehouse
D. To reduce the demand for fruits B. Manufacturer’s warehouse
8. Storage is necessary because production and C. Retailer’s warehouse
demand___________.
D. Wholesale warehouse
A. Are always seasonal

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 11 MARKETING

Answer all questions

MULTIPLE CHOICE 8. Which method is not a sales promotion method?

1. Marketing a product to benefit a few customers A. Competitions
is_________. B. Free samples
A. market research C. Market research
B. market segmentation D. Price reduction
C. C mass marketing 9. Which market segmentation criteria allow
D. D niche marketing producers to design a product according to
2. The process of dividing a market into groups lifestyle?
is_________. A.B ehavioural
A. market research B. Demographic
B. market segmentation C. Geographic
C. mass marketing D. Psychographic
D. marketing mix
3. What is the marketing mix?
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10. The correct stages of a product life cycle
are____________.
A. development, growth, saturation, decline,
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A. all activities used to sell a product
introductio
B. adaptation to market changes
B. development, introduction, growth, maturity,
C. selling a variety of products
decline
D. set of questions for market research
C. introduction development, growth, decline,
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4. Which factor is not used when segmenting a maturity
market?
D. introduction, growth, development
A. competition maturity, decline
B. demography
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11. Giving a product a distinguishing trademark is

C. income __________.
D. personal interests A. blending
5. The most suitable product for mass marketing B. branding
is___________. C. grading
A. blankets D. pre-packaging
B. chocolates 12. The following are elements of the marketing mix
C. jewellery except___________.
D. sunglasses A. price
6. Which of the following pairs is a result of B. promotion
competitive advertising? C. production
Quality of goods Cost of goods D. place
A. high high 13. Marketing concepts include all of the following
B. high low except_________.
C. low high A. production
D. low low B. advertising
7. Which medium provides national coverage? C. product
A. Bill board D. market
B. Point of sale 14. The following are advantages of Virtual markets
C. Poster except___________.
D. Radio A. global marketing

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 O-LEVEL EXAMINATION PRACTICE 1
COMMERCE
PAPER 1 TIME: TIME:1 Hr 15 Min
INSTRUCTIONS TO CANDIDATES
• When you are told to start choose one correct answer from the suggested answers.
• Answer all questions

1. Which service is not part of tertiary production? B. providing raw materials to producers
A. banking C. selling directly to consumers
B. distribution D. selling goods in small quantities
C. manufacturing 8. Quotas__________.
D. teaching A. discourage domestic consumption
2. Which of the following is an advantage of B. increase inflow of foreign currency
specialisation? C. limit quantities of goods imported
A. leads to employment D. make imports more expensive
B. results in labour mobility 9. Balance of trade is equal to _________.
C. retraining workers is cheap
D. workers become skilled
e A. goods exported minus goods imported
B. goods exported minus services exported
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3. Which of the following is not value addition? C. services exported minus services imported
A. baking cakes from flour D. total exports minus total imports
B. making steel from iron 10. The aim of forming trading bloc is_________.
C. packaging diamonds in metal boxes A. challenge integration of global economy
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D. selling live cattle at abattoirs B. discriminate against non-member countries
4. Which external factor affects the business C. promote free trade among member countries
environment?
D. encourage global free trade by nations
A. Customers
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11.The similarity between home trade and foreign

B. Politics trade is that_________.
C. Suppliers A. goods in transit are insured
D. Workers B. the same language is involved
5. What is beneficiation? C. foreign currency is used
A. The amount by which the value of a product is D. same measurements are used
increased
12. Consumers need protection against the following
B. Difference between cost of production and except __________.
selling price
A. false price-cutting
C. Natural intrinsic value in the extracted raw
B. buying tested products
material
C. incorrect labelling of goods
D. The process which removes impurities from
the mineral ore D. unfair repossession of goods
6. Which factor of production mobilises other factors 13. Which board tests products for quality?
of production? A. Small Claims Court of Zimbabwe
A. Land B. Standards Association of Zimbabwe
B. Labour C. Consumer Council of Zimbabwe
C. Capital D. Advertising Media Association of Zimbabwe
D. Enterprise 14. Which of the following is a feature of businesses
7. Retailing is ________. in the private sector?
A. offering goods to retailers A. Identifiable owners
B. No profit-making motive

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 O-LEVEL EXAMINATION PRACTICE 5
COMMERCE
PAPER 1 TIME: TIME:1 Hr 15 Min
INSTRUCTIONS TO CANDIDATES
• When you are told to start choose one correct answer from the suggested answers.
• Answer all questions

1. Mass production means___________. 7. Which service do wholesalers provide to

A. a large output is made using a small labour manufacturers only?
force A. Finding markets
B. making parts that can be used in many B. Giving information
similar articles C. Providing finance
C. many people concentrating on specific tasks D. Transporting goods
D. machines now do the work of human beings 8. All of the following are middlemen in wholesaling
2. Which is not a problem of barter? except __________.
A. Some goods are difficult to divide A. brokers
B. Some goods are perishables
C. There has to be a double coincidence of
wants
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C. del credere agents
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D. factors
D. Valuation of goods is difficult 9. Which description does not apply to a bill of
3. Primary products such as coffee are distributed lading?
through ___________. A. A contract of carriage
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A. commodity markets B. A document describing goods on board a
B. consumer markets vessel
C. local wholesale markets C. A document of the title used when goods are
D. stock exchange markets sent by sea
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4. A customer buys a motor vehicle on hire purchase D. A document used when hiring a ship
from a car dealer, and the instalments must be
paid over 24 months. Who is the legal owner of The table below shows foreign trade figures for
the vehicle during this time? country Z. use the information to answer questions
A. the customer 10 and 11.b
B. the car dealer
C. the finance company Goods Services
D. the insurance company Imports (in $m) 320 300
5. Which retail outlet will be most affected by an Exports (in $m) 330 270
increase in wages for shop assistants?
A. Department stores 10. What was country Z’s trade balance?
B. Mail-order firms A. – $30m
C. Mobile shops B. +$10m
D. Supermarkets C. – $10m
6. Why do small-scale retailers continue to exist D. +$30m
when there is so much competition from large
11. What is country Z’s balance of payment?
retailers?
A. –$30m
A. They advertise on a large scale
B. – $20
B. They employ specially trained staff
C. +$20m
C. They offer personal service to customers
D. +$30m
D. They order stock directly from manufacturers

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 O-LEVEL EXAMINATION PRACTICE 6B
COMMERCE 4049/2
PAPER 2 TIME: TIME: 2 Hours
INSTRUCTIONS TO CANDIDATES
• When you are told to start choose one correct answer from the suggested answers.
• Answer all questions

SECTION A (40MARKS) National Social Security Authority (NSSA). [12]

ANSWER ALL QUESTIONS b). Explain the purpose of the Export Credit
Guarantee Corporation and Export Credit
Guarantee Department. [10]
1 a). Outline the disadvantages of division of labour.
[4] 13 a). Why has there been an increase in the use of
containers to transport goods? [10]
b. Give reasons why land is our heritage. [3]
b) How do the following assist a trader in
2 a). Give any four types of information shown on
communication?
goods sold through hire purchase. [4]
a). telex [6]
b). Name the three methods of payments used in
mail order firms. [3]

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3 a). Identify any two elements of a business plan. [2]
b). Outline any four ways of measuring the size of a
b). facsimile [4]
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business. [4]
4 a). ) Identify three external sources of business
finance. [3]
b). State the two marketing approaches. [2]
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5 a). In what way are communal systems of insurance
and assurance important to Zimbabwe. [4]
b). Explain the term endorsement in insurance. [1]
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6 a). What are Oil-Bulk Ore (O.B.O) Ships?[4]

b) Distinguish between postal boxes and private
bags. [4]

SECTION B
ANSWER ANY THREE QUESTIONS (60 marks)

7. Explain the four factors of production. [20]

(8.a). How does a factor differ from a broker? [12]
b). How can a business promote its sales? [8]
9 a)What are the functions of the Consumer Council
of Zimbabwe?[10]
b) State and explain five factors that determine the
size of a business. [10]
10 a). Explain the information required by a bank
before granting a loan. [10]
( b) Describe the services of a commercial bank. [10]
11 a) Explain why a business plan is important. [10]
b). What are the characteristics of a supermarket?
[10]
12 a) Explain the reasons for the formation of the

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 ANSWERS

TOPIC 1: PRODUCTION ANSWERS

Examination Tips

• Candidate to read question thrice before attempting to answer it

• Candidates to take note of words like “most, not, advantage, disadvantage, except”
• Most mean that all the answers may be correct, but candidates have to choose the one that overrides
others

MULTIPLE CHOICE

1. A 2. A 3. D 4. C 5. B 6. D 7. C 8. D 9. D 10. D
11. D 12. C 13. C 14. A 15. B 16. D 17. A 18. D 19. B 20. A

SECTION A

Examination Tips
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This section has short questions which require candidates to list, state, outline, name and so on. Candi-
dates are advised not to worst time trying to give explanations

Structured Questions
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Possible Answers

1. Distinguish between commercial services and direct services [4]

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Commercial services Direct service

• these are services offered indirectly to consumers • these are services offered directly to the
consumer
• examples include banking • examples include teaching
• no face to face contact because it is indirect • consumers have face to face contact with the
provider of the service

1. Name any two factors of production and their rewards [4]

Production Reward

• land rent
• labour wages and salaries
• enterprise /organisation profit
• capital interest

3. List any three forms of specialisation [3]

• specialisation by region
• specialisation by firms
• specialisation by individual

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Shipping services provided to companies in country Z$20

Calculate, showing all working;

i. invisible trade balance [2]

exported services – imported services

($100+$40) – ($200+$20) = -$80 (unfavourable)

ii. balance of trade [2]

exported goods – imported goods,

$400 - $500 = -$100 (unfavourable)

iii. balance of payment. [4]

Total exports – total imports
($100+$40+$400)-($200+$20+$500) =- $180 (unfavourable)

13. Explain the methods that are used to correct a balance of payment deficit. [10]

• To increase exports to increase the inflow of foreign currency.

•
•
•
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Devaluing local currency to make imports expensive and imports cheaper.
Enforcement of quotas to limit the quantities of goods to be imported.
Charging high customs duty to make imports expensive.
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• Control the issue of import licences to limit the number of importers.

The answer should have five mentions and five explanations. Mentions only will give the learner five marks.
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Explanations tallied with wrong mentions will result in a leaner losing marks for explanations. Explanations
without mentions will result in a leaner getting no marks.
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14. What is a bill of exchange? [8]

• It is a promise to pay a certain amount of money at a future date.

• It is drafted by an exporter and sent to an importer -it is drawn for three months (or multiples thereof).
• It must first be accepted by the importer, who then writes the word “accepted” across the face of the bill.
• The order of payment is unconditional.
• The date of payment should be certain.

15. State the contents and explain the importance of a bill of lading [12]

Contents

• Name and addresses of the importer and the exporter.

• Quantity of goods.
• Port of origin (loading) and port of destination (offloading).
• Description of goods.
• Condition of goods (dirty or clean bill).

Importance

• It is a contract of carriage of goods.

• It helps in negotiating documentaries of credit from banks.

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 • Damage to the insured vehicle.
• Personal injury to the driver.
• Loss or damage to possessions in the vehicle.
• Medical expense.
• Towing fees.
• Hotel accommodation.
• Legal fee.

NB. MARKS WILL BE AWARDED FOR ANY CORRECT MENTIONED MOTOR VEHICLE POLICY. COR-
RECT EXPLANATION AND WRONG MENTION NO MARKS

20. Discuss the following types of insurance policies: [12]

Household insurance policy

• Taken by individuals.
• Covers movable household items such as jewellery, TV sets, sofas and many more.
• Covers against losses from theft, floods or fire.
• Compensation is based on the value of the item when the risk occurs.

Group personal accident insurance policy

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• Taken by a group as one policy for example football clubs.
• Covers injuries that prevent members from working for a certain period or permanently.
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• Members are paid compensation for the loss of income due to injury.

Funeral policies
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• Individuals take out a policy.
• To cover burial expenses of assured.
• Gives the bereaved families peace of mind when a family has lost a beloved one through death.
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• The insurer provides the following:

- Coffins
- Flowers
- Tents
- Movable toilets
- Transport to rural areas
- Airtime

Pluvius policy

• Taken out by event organisers.

• To cover for loss due to rain or any other adverse weather condition.
• Taken to cover losses by event holders outside such as parties, trade fairs and many more.

21. Explain the disadvantages of ICT in insurance [10]

• This leads to unemployment since a lot of people will lose their jobs.
• Training of computer experts tends to be expensive to companies.
• Some clients might not have computers.
• Customers’ data files may be stolen (hacking).
• There is no face to face interaction with clients.

133
EXAM 3 ANSWERS breaking bulk.
• Provides retailers with a wider choice/ variety.
MULTIPLE CHOICE POSSIBLE ANSWERS 2 a) Identify any three ways in which consumers
can protect themselves. [3]
1. C 21.D

2. D 22.B • By preparing shopping lists/budgets to avoid

impulse buying.
3. B 23.C • Do window shopping to make quality and price
comparisons on goods before buying.
4. A 24.A Before buying, check expiry dates, quality,
labels, standards seal (SAZ), guarantees, and
5. C 25.C
faults.
6. B 26.A
b) What do you understand by the term
7. B 27.A product? [2]

8. D 28.D • It can be a good or service/ tangible or

intangible, for example cellphones, shoes, books,
9. D 29.A legal advice, bank services, medical services. (any
1 example for each)
10. C 30.C

11. D 31.C

12. C 32.B
e 3 a) Identify three challenges that are faced by
Small and Medium Enterprises (SMEs). [3]
pl
13. B 33.C • Stiff competition from large businesses already in
existence and imports.
14. D 34.C • Accessing finance for start-up capital and
m
expansion.
15. B 35.D
• Meeting government regulations and
16. B 36.A requirements for operation.
Sa

17. D 37.B
b) Define an incorporated business unit. [3]
18. A 38.A
• A registered business/ a legal entity/ legal person
19. C 39.A separate from its owners.
• Examples include, limited liability companies,
20. D 40.B
corporation, multinational companies.
Paper 2

POSSIBLE ANSWERS c) Explain the importance of a consular invoice. [2]

SECTION A [40 Marks] • Prevents cheating when assessing duty.

Answer all questions.
1 a) Name the three stages of production. [3]
• Primary, secondary and tertiary
b) Name one factor of production and its reward. [2]
• Speeds up clearing of goods at border posts as
there is no need to inspect the goods.
• Speeds up the delivery of goods.
• Assists customs officials to prohibit the
importation of banned goods. (any 2)

• Land rent 4 a) State two types of bank payments in home

c) Outline two functions of the wholesaler to the trade. [2]
retailer. [2]
• Stop order/standing order.
• Sells goods to retailers in small quantities/ • Direct debit.

172
 b) List any three commercial services. [3]

• Transport
• Warehousing
• Advertising/marketing
EXAM 4 ANSWERS

MULTIPLE CHOICE POSSIBLE ANSWERS 2 a) State the two types of market research. [2]

1. C 21.A • Primary research

• Secondary/desk research
2. A 22.A

3. C 23.C
b) Outline any three roles of the Consumer
4. C 24.B Council of Zimbabwe. [3]
• Receive complaints from consumers and
5. D 25.C investigate them.
6. D 26.D • Settles disputes/ arbitrates between consumers
and traders.
7. A 27.C • File lawsuits with the police or law enforcement
agents on behalf of consumers.
8. C 28.B

9. D 29.A

10.A 30.D
e
3 a) State the three classes of public sector
businesses. [3]
pl
• Public corporation/parastatals/ statutory bodies.
11. C 31.B • Local authorities.
12. B 32.A • Public utility corporations/ marketing boards.
m
13. B 33.D
q
14. C 34.C
-creativity, confidence, risk-taker, determination, skills
15. B 35.D and organisation, flexibility
Sa

16. D 36.D -leadership, professionalism, knowledge, passion,

planning.
17. B 37.B

18. C 38.C
c) State three types of cheque clearing. [3]
19. B 39.B
• Intra branch /when drawer and payee use same
20. C 40.D bank same branch.
• Inter branch/ when the drawer and payee use the
same bank but different branches.
PAPER 2 • Inter-bank/ when the drawer and payee use
different banks.
POSSIBLE ANSWERS

SECTION A [40 Marks]

4 a). Outline any two features of an order
Answer all questions. cheque. [2]
• Date
1 a) What activities are involved under the third • Name of drawee
stage of production. [2] • Name of payee
• Commerce. • Name of drawer
• Direct services.

177
 Mastering Series

GramSol Publishing

Our Marketing Contacts

PROVINCE CONTACT NUMBER
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Our banking details

RTGS RTGS
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Account Name: Gramsol Trading PL Account Name: Gramsol Trading PL
Account Number: 21441025696 Account Number: 04725112200018
Branch: Pearl House Branch: Selous
NOSTRO NOSTRO
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Branch: Africa Unity Square Branch: Selous

15
 ‘O’ LEVEL
GRAMSOL SERIES
MY STUDY GUIDE
MY EXAM PRACTICE

‘A’ LEVEL

SAMPLE
MASTERING SERIES
MY STUDY GUIDE
MY EXAM PRACTICE

WHY YOU
SHOULD USE
GRAMSOL
RESOURCES
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• They contain activities that are suitable for CALA.
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