1. .................... is one of the career prospects for a student of Commerce.
(a) Lawyer (b) Economist (c) Engineer (d) Driver
2. Which one of the following is a method of production that the provision of goods and
services on a large scale and sale?
(a) Tertiary production (b) Secondary production
(c) Indirect production (d) Direct production
3. The type of wholesaler who mainly sells groceries to both retailers and consumers is
Called a .................................
(a) Cash and carry (b) General (c) Independent (d) Specialist
4. A business legal binding agreement between two or more people that creates an
obligation to do certain things is known as ....................................
(a) Acceptance (b) Company (c) Contract (d) Partnership
5. ......................... is a document used in international trade when goods are sent by sea.
(a) Consular invoice (b) Charter party (c) Certificate of origin (d) Bill of
lading
6. One of the purposes of commerce is .............................................
(a) Distribution of goods and services to satisfy human wants.
(b) Extraction of raw materials from nature.
(c) Supervising retailers and wholesalers in the distribution of goods.
(d) The production of goods in the home wants.
7. Goods that are produced and regarded as durable, expensive and attractive are called .........
(a) Counterfeit (b) Fake (c) Original (d) Standard
8. Not everyone has the........ to enter completely into a contract because of certain
requirements.
(a) Consent (b) Chance (c) Knowledge (d) Legal capacity
9. A business document used in home trade which is also referred to as a bill is ......................
(a) Cheque (b) Quotation (c) An inquiry (d) An invoice
10. A trade restriction faced by an exporter is called .......................................
(a) Balance of payment (b) Customs drawback (c) Embargo (d) Entrepot trade
11. Which of the following are examples of public corporations?
(a) Konkola Copper Mine, Mopani Copper Mine, Quantum Minerals.
(b) Pick n Pay, Hungry Lion, Shoprite Checkers.
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(c) Zambia Sugar Plc, ZANACO Plc, Chilanga Cement.
(d) ZESCO, National Housing Authority, Nitrogen Chemicals.
12. Which document is required by the Registrar of Companies for a company to be
registered.
(a) Certificate of Title (b) Deed of Partnership
(c) Memorandum of Association (d) Trading License
13. A number of shares that are bundled together for easy trading and handling are called.......
(a) Debentures (b) Bond (c) Security (d) Stock
14. ...................... are ships mainly for carrying large quantities of one product.
(a) Bulk carriers (b) Containership (c) Roll-on-roll off ferries (d) Tankers
15. The mode of transport that is more economical over long distance is ..................................
(a) Pipeline (b) Railway (c) Road (d) Sea
16. Which type of warehouse is found at railway station?
(a) Large scale (b) Manufacturer (c) Public (d) Wholesale
17. The financial institution that acts as lender of last resort is ......................................
(a) Central Bank (b) National Building Society
(c) National Saving and Credit Bank (d) Zambia National Commercial Bank
18. Financial institutions that offer currency to the public are known as ............................
(a) Clearing house (b) Bureau dechange
(c) Insurance company (d) Micro-Finance company
19. ,,,,,,,,,,,,,,,,,,,, is a global network of computers which allows users access to worldwide
Information,
(a) Radio messaging (b) Mobile phoning (c) Internet (d) Confravision
20. Which firms advertise heavily in order to protect themselves from new competition, it is
called ..................................
(a) Collective Advertising (b) Defensive Advertising
(c) High Pressure Promotion (d) Information Advertising
SECTION B (40 Marks)
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Answer all questions in this section on the space provided in the inserted booklet.
1. Mention the three types of items that satisfy human needs. 3 marks
2. For each of the following statement below, state whether they are TRUE or FALSE.
(i) Buying and selling of goods and services is called wholesaling.
(ii) A contract can either be expressed or implied.
(iii) Retail trade is divided into small scale and large scale.
(iv) For a contract to be valid there must be a witness.
4 marks
3. Differentiate between sole trader and partnership. 2 marks
4. Using the phrase/word list below, answer the question that follows:
Export trade, import trade, customs duty, quota, excise duty, certificate of origin, and bill
Of lading, entreport trade
(i) The name given to re-export of goods is ...............................................
(ii) The buying of goods and services from other countries is known as ........................
(iii) ..................... is levied by government on locally produced goods such as Tobacco.
(iv) A limit placed on the quantity of goods imported in a year is known as ..............
(v) A document that is signed by a representative of the importing county residing in
an exporter`s country showing where the goods were produced is called ................
5 marks
5. Explain the phrase partnership 2 marks
6. Give any three features of a sole trader 3 marks
7. The following describes vessels that are used in sea transport: name the vessel that fits the
description.
8. Match the sentence in A with the phrase in B
Sentence (A) Phrase (B)
(a) An account which does not earn (i) Credit union
interest but is popular with business
people.
(b) Which bank issues notes and (ii) Current account
coins.
(c) Name the account intended for a (iii) Central bank
small sever with regular income.
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(d) Bank owned by financial (iv) Banker`s draft
cooperatives and controlled by same
members.
(e) A document equivalent to a banker`s (v) Savings account
cheque
5 marks
9. Fill in the blank space using appropriate words/phrase
(a) A fax is used to send or receive ..........................................................
(b) Express Mail Service is used because it is ..........................................
(c) A ............................... can be used for Short Messages Service (SMS).
(d) A service that allows people situated different locations to hold face to face
Discussion is known as .........................................
4 marks
10. (a) Explain the term Internet. 2 marks
(b) Kalambo hardware bought the following goods from Monga Quarry company.
11. Match the items in column A with those in column B
Column A Column B
(i) Enterprise (i) Salary
(ii) Labour (ii) Interest
(iii Capital (iii Profit
) )
3 marks
SECTION C (40 Marks)
There are Five (5) questions in this section. Answer only Two (2) questions.
1. (a) (i) State at least three reasons why contracts are important in business. 3 marks
(ii) Identify the parties to a contract 3 marks
(b) (i) Explain the concept of consumer protection 4
marks
(ii) Explain any one way of obtaining information from the seller before placing an
order for goods. 3 marks
(c) (i) Kachepa a trade bought 25 dresses at K60 each. He was give 20% trade discount
and 2% cash discount. If he paid within 21 days. How much will he pay if he
settles the bill in 14 days?
Show your working. 4 marks
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(ii) Kachepa decided to postpone the payment of the dresses to next month. Explain
why he could do this? 3 marks
Total 20 marks
2. (a) Explain the disadvantages of rail transport. 10 marks
(b) Discuss the benefits of advertising to the manufacture. 10 marks
Total 20 marks
3. (a) Define standing order in banking. 5
marks
(b) (i) Explain the procedures of opening a current account. 5 marks
(ii) Give the main services offered by the commercial. 5 marks
(iii) Explain the main services provided by National saving and credit bank. 5 mark.
Total 20 marks
4. (a) (i) State Five (5) documents used in transport. 5 marks
(ii) Give the advantages of using pipeline as a means of transport. 5 marks
(b) (i) Explain the characteristics of goods that are carried by air and give three examples
of each. 5 marks
(ii) Describe the disadvantages of using sea transport to an exporter. 5 marks
Total 20 marks
5. (a) List Four (4) various ways of sending letters. 4 marks
(b) Briefly explain each of the following.
(i) Registered Mail. 4 marks
(ii) Video Conferencing. 4 marks
(iii) Telephone. 4 marks
(iv) Cash on Delivery (COD). 4 marks
Total 20 marks
