EXAMINATIONS COUNCIL OF ZAMBIA Examination for General Certificate of Education Ordinary Level Commerce 7100/1 Tuesday 12 JULY 2016 Actions! Wate ‘ose Boctiet Time: 2 hours 30 minutes Instructions to Candidates Write your name, centre number and candidate number in the spaces provided on the Answer Booklet ‘There are ten (10) questions in this paper. Answer any five (5) questions. Write your answers in the separate Answer Booklet provided. Ifyou use more than one Answer Booklet, fasten the Bookiets together Information tor Candidates ‘The number of marks is given in brackets [ ] at the end of each question or part question. Calculators may be used. Cell phones are not allowed in the examination room. ‘cecaanraccena This question paper has 5 printed papers.Page 20f5 1 (a) (b) (c) (a) (b) (a) (b) © (a) (b) (© What is the role of Commerce in Production. 4 (Discuss land as a factor of production. BI (ii) Identify the effects of a Mining Industry on the environment. B) State (advantages of specialisation. (5) (ii) disadvantages of specialisation. 65] [20 marks} Retail trade has gone through a number of changes in recent years. () State any five changes that have taken place in retail trade. (5) (ii) Outline the features of: — Mobile shops. B] ~ Hawkers. (2) () Why isan invoice described as the most important document in business transactions? 5) (ii) What is the importance of a Statement of Account in business transactions? (5) [20 marks} Define the word Quota as it is used in Intemational trade. (2) (Discuss the main reasons why countries get invoved in International Trade (li) Discuss the importance of the following documents used in International Trade. — Charter Party (5] ~ Bill of Lading [5] Distinguish between Brokers and Factors in International Trade. B) [20 marks} Mention five main players of the Lusaka Stock Exchange. [5] (i) Explain why it might be necessary for a small business to be converted into a Private Limited Company. [5] (i) What advantages do Public Limited Companies (PLC) have over Private Limited Companies. [5] Differentiate Public Corporation from Public Limited Companies. [5] [20 marks] ‘Commerce? 100712016@) (b) (a) (b) () FUNDS FUNDS Pago 3 of 5 Businesses are faced with problems of choosing between using their own transport or hiring in both Home trade and International Trade. (i) Outline the advantages of a trader using their own trucks in delivering goods. GB] State the type of transport that each of the following statements best describes, very slow but covers very long distances. very fast over very long distances. the safest for very expensive goods. suitable for bulky inland consignment. offers door to door delivery 5] onwne There ere different types of warehouses that assist people involved in trade. Explain the importance of each of the following types of warehouses: (i) Wholesale warehouse. [5] (i) Manufacturer's warenouse. (5) [20 marks] A cheque is not @ “Legal Tender’. Define Legal Tender (4 Explain the advantages of using a cheque as a means of payment. [4] The table below shows the way a commercial bank serves its customers, toocustowers | BANK 400 CUSTOMERS HAVE SURPLUS SAVE LENO || HAVE SHORATAGE OF te (i) Describe any two services which the bank may use to enable customers to serve their surplus money. [5] Give reasons why a company would choose the bank loan as a method of obtaining additional finance. {8} [20 marks] (Commeresrri0ar 2016 [TurnoverPage 4 of 5 7 (@) (b) (©) (a) (e) (a) (b) (e) In connection with communication, state any four postal services. (4) Give reasons for continuing need for Postal Services despite the abundant sophisticated telecommunication system. (4) Describe the advantages of using a Mobile Phone. 4] ‘What is the importance of Fax for people engaged in business? 4 Write brief notes on Data Post. (4) [20 marks] Mention the Principles of Insurance . 4] Mrs Kantu wishes to insure her house, @) Explain to Mrs Kantu the benefits of Insuring her house against the risk of fire with an Insurance Company. [5] Gi) What steps would Mrs Kantu take in Insuring her house with the Insurance Company? [5] A building is valued at K90m and is insured for K60m. The building is burnt with fire and the cost for renovation is estimated at K30m. Calculate how much ‘would be paid in compensation, (6) [20 marks] 9 Most business undertake advertising in order to increase their sales by informing customers about the availability of goods and services and persuading them to buy. 10 (a) (b) (©) (a) List any five (5) factors that should be taken into account when designing an advertisement. 65] (i) Why are most National Advertising Campaigns undertaken by Advertising Agencies? 15) (ii) What functions do Advertising Agencies perform? 6) Discuss the “code of advertising” 5) [20 marks] (i) Explain the meaning of working capital. rea] (ii) What is the importance of working capital to a business? fea] (iii) Explain the working capital ratio, (2) (iv) State the difference between Current Assets and Non-Current Assets.[2] ‘commercer71001/2016Page 5 of 5 (b) The following Is the Balance Sheet of Gama a sole trader as at 30" October 2011. Assets K’000 a Motor Vehicles | 400.00 Office Equipment 360.00 | stock 100.00 | Debtors 250.00 Libilities _ Capital . 900.00 | Creditors 200.00 L Bank overdrafts 10.00 @ Calculate the working capital for Gama (i) Calculate the value of net assets. Gi) Show the working capital ratio for Gema. (iv) Interpret the ratio you find in (i) above. ‘Cornmeroori00r 12006 (3] [3] BI (3] [20 marks]EXAMINATIONS COUNCIL OF ZAMBIA Examination for General Certificate of Education Ordinary Level Commerce 7100/1 Monday 31 JULY 2017 Additional Matias) Anower Bocklot Time 2 hours 30 minutes Instructions to Candidates Write your name, centre number and candidate number in the spaces provided on the Answer Booklet There are ten (10) questions in this paper. Answer any five (5) questions. ‘Write your answers in the separate Answer Booklet provided If you use more than one Answer Booklet, fasten the Booklets togather. Information for Candidates The number of marks is given in brackets [] at the end of each question or part question Non programmable calculators may be used. Cell phones are not allowed in the examination room. SECUSCEOTINS This question paper consists of 4 printed pagesPage 2 of 4 1 (a) _ Identify four career prospects in Commerce. (4 (b) Explain the following terms: (1) Quality goods; [3] (ii) Substandard goods. (31 (©) Production is classified into Direct Production and Indirect Production. Differentiate the two methods of production. [10] [Total:20] 2 (a) __Inconnection with contracts; (1) What is the difference between acceptance and consideration? [3] Why should a business not breach a contract? Bl (b) Explain the features of Home Trade. 4] ‘Small scale retailers operate on a small scale and may or may not have fixed shops. Give reasons why such retailers face problems in Zambia, (41 (©) Matukuta trading, specialized in selling groceries, bought the following items from Mwandi wholesalers: 8 cases of butter at K135 each; 4 boxes of milo at K98 each; 25 cases of planet drinks at K26 each; 14 by 2.5 litres mama cooking oil at K39 each; 1 and was allowed 3: trade discount. (2) Calaulate the amount of trade discount. fa] Gi) Show how much Matukuta Trading pays Mwandi Wholesalers if Matukuta Trading was only allowed trade discount. 2 [Total:20] 3 (a) __ State why deficit in balance of payments in Foreign Trade is undesirable. R) (b) Explain the following terms in relation to Foreign Trade: (i) Ad Valorem duty [5] (ii) Customs draw back 15] ii) Entrepot trade 5] (c) Describe the use of shipping note in Foreign Trade. B) [Total:20] (Commercerr1901/2017@ (b) (©) (a) (b) © () (b) Page 3 of 4 List the features of a Sole Trader. is] @__ Explain five ways in which a Private Limited Company differs from a Public Limited Company. (5] (i) In connection with Limited Companies, explain the term “Limited Liability". 1 Business is an activity that involves more than just buying and selling. Explain the main activities that an individual or an organisation may be involved in. 0] [Total:20] ‘The government is one of the main players on Lusaka Stock Exchange (LuSE). State the duties of the government on LuSE. 15] Explain the following: (i) Underwriters at the Stock Exchange 15] (ii) how the Lusaka Stock Exchange (LuSE) facilitates secondary trading. (5) How is capital raised at the Stock Exchange? rea] [Total:20] (i) Different methods of transport are used for the movement of raw materials, goods and people. List the most common methods used. (5) State the factors to consider when choosing the mode of transport for the movement of goods. 15] Explain the following types of warehouses: (3) Cold Storage Warehouses; (5] Cash and Carry Warehouses, 5] [Total:20] Commarce/7 1001/2017 [Turn overPage 4 of 4 7 10 (@) (b) (a) (b) (a) (b) (e) (a) (b) List two benefits of running a savings account. (2) (Loan facilities are one of the services offered by banking institutions, Explain the characteristics of a bank loan, {61 (ii) Explain the advantages of credit transfer. [6] (ili) Explain the effects of any two of the following cheque crossings. | | | a 3 | al Be] |# [8 zg 8 : 8 s | (5 é | 2} ise | I*} lei | |S (a) (>) ©) @ ) ) (6] [Total:20] Define communication. [4] Briefly explain the following; (Fax, (4) Money orders, [4] SMS, [4] Telex. 4] [Total:20] What is an insurance policy? a In relation to Marine Insurance, explain the following terms; (i) Hull Insurance (] (ii) Freight insurance [5] Mrs Lungowe insured the television set costing K6 000 with two insurance companies. The television set Is damaged in fire and the cost of repairs is valued at K2 500. Explain the principle that will apply in compensating Mrs Lungowe. {6] [Total:20] Identify at least five modes of advertising used by companies. [5] Give reasons as to why the products are best advertised on the media indicated; (i) Anew brand of washing powder advertised on radio. [5] (ii) Anew soft drink advertised on television. [5] (iii) Recruitment of police officers advertised in the newspaper. [5] [Total:20] ‘commercerrv00r 2017WWW.ECZPASTPAPERS.XYZ DOWNLOAD TEXTBOOKS FOR FREE! www. eczpastpapers. xyz INSTAGRAM : ECZPASTPAPERS FACEBOOK: ECZPASTPAPERS YOUTUBE: ECZPASTPAPERS