ASSESSMENT
Session: 2018 - 2019
COMMERCE (7100) Paper – 1 & 2
Name: ________________________________________
Total Marks: 50 Time: 1 Hour
This document consists of 11 printed pages and 1 blank page.
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COMMERCE (7100) - Paper 1 Multiple Choice
Additional Materials:
Multiple Choice Answer Sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)
Ruler
Protractor
READ THESE INSTRUCTIONS FIRST
Write in soft pencil.
Do not use staples, paper clips, glue or correction fluid.
Write your name on the Answer Sheet in the spaces provided unless this has been done for you.
There are twenty questions on this paper.
Answer all questions. For each question there are four possible answers, A, B, C and D.
Choose the one you consider correct and record your choice in soft pencil on the separate
Answer Sheet.
Read the instructions on the Answer Sheet very carefully.
Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
Any rough working should be done in this booklet.
The businesses described in this question paper are entirely fictitious.
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1 Which term describes the manufacture of goods and the provision of services?
A commerce
B industry
C production
D trade
2 Which picture shows an example of a human need?
A B C D
3 Which group of people distributes raw materials and finished goods?
A commercial workers
B direct service providers
C factory employees
D primary producers
4 What would a small-scale retailer often provide?
A large variety of goods
B long-term credit
C mail order sales
D personal service
5 How do barcodes assist retailers?
A by advertising goods and services to consumers
B by distinguishing one product from another
C by producing helpful information to consumers
D by providing information on stock levels
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6 How have retailers responded to recent changes in customer requirements and expectations?
A by decreasing the use of computers and technology
B by having shorter sell-by dates for goods
C by providing better quality own brands
D by reducing the provision of after-sales service
7 How does online shopping differ from traditional shopping?
A accepts credit card payments
B offers cheaper prices
C operates without sales staff
D provides variety of goods
8 What is an advantage to a department store of offering a store card?
A It increases the amount of cash kept on the premises.
B It increases the amount of records to be kept.
C It increases the number of bad debts.
D It increases the turnover of the business.
9 Shanshan wishes to buy a bedroom suite that is on offer for $1800. If she pays cash, a discount
of 20% will be given. If she buys on hire purchase terms, a 5% deposit is required plus 10 equal
instalments of $200.
How much more will Shanshan pay if she buys on hire purchase rather than paying cash?
A $290 B $650 C $1440 D $2090
10 What is the function of a standards association?
A to award a distinguishing mark on quality products
B to guard against unethical advertising techniques
C to mediate in disputes between consumers and traders
D to monitor the rise in the cost of basic commodities
[Turn over
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11 The diagram shows four different intermediaries that XYZ & Company could use to export its
manufactured products.
agent
merchant XYZ & Company broker
factor
Which activity applies only to a merchant when preparing to export XYZ & Company’s
manufactured products?
A arranging necessary transport to carry products to other countries
B buying the products before selling them for profit
C finding and dealing with creditworthy buyers in other countries
D providing suitable warehousing while the products await export
12 What is a function of a wholesaler?
A to act as a link between manufacturers and retailers
B to advertise widely on television and radio
C to control demand from retailers and consumers
D to provide after-sales service to customers
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13 The diagram represents a commercial transaction.
enquiry
statement quotation
invoice
What is the missing document X?
A advice note
B catalogue
C delivery note
D receipt
14 On which document would the following terms of payment appear?
30 days: 5%
A cheque
B credit note
C order
D statement
15 What do the letters E & OE printed at the bottom of an invoice stand for?
A Errors and Observations Expected
B Errors and Omissions Excepted
C Errors and Omissions Expected
D Errors and Opinions Excepted
16 A computer retailer bought a computer for $200 and sold it to a customer for $300.
What is the percentage mark-up?
A 50% B 100% C 150% D 300%
[Turn over
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17 What is an invisible export for Australia?
A a company based in Australia selling cloth to customers in Singapore
B a driver living in Australia insuring his car with a German insurance company
C a Malaysian business using a ship owned by an Australian company
D an Australian company buying steel made in China
18 Which question is most important for a customer considering buying goods on credit?
A Are the goods fit for the purpose?
B Do the goods represent value for money?
C What discount will be given by the retailer?
D What is the difference between the cash price and the credit price?
19 Why do companies use logos on the packaging of their products?
A to ensure that the product cannot be resold by thieves
B to identify and scan the product for the purposes of stock control
C to make the product easily recognised and remembered by the consumer
D to show that the product meets all legal health and safety requirements
20 Sonia Shar has entered into a hire purchase agreement to buy a television from a retail
store over a 2-year period.
When will she become the legal owner of the television?
A after paying instalments for 1 year
B at the end of the 2-year instalment period
C when the store has installed the television in her house
D when the store receives her deposit
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COMMERCE (7100) - Paper 2 Written
Students answer on the Question Paper.
No Additional Materials are required.
____________________________________________________________________________
READ THESE INSTRUCTIONS FIRST
Write in dark blue or black pen.
You may use an HB pencil for any diagrams or graphs.
Do not use staples, paper clips, glue or correction fluid.
Answer all questions.
The businesses described in this Question Paper are entirely fictitious.
At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part question.
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1 Commerce involves distributing goods from the producer to the final customer in order to satisfy
human wants.
(a) What is meant by:
(i) the producer
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(ii) human wants
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(b) Explain why the chain of distribution is not complete until it reaches the consumer.
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(c) Describe two services that wholesalers provide for producers.
1 ................................................................................................................................................
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2 ................................................................................................................................................
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[4]
(d) Wholesalers use commercial documents and give discounts.
Circle the correct answer to complete each of the following sentences.
A credit note is a commercial document used when the customer is
overcharged OR undercharged.
Trade discount is offered to encourage
bulk buying OR prompt payment.
[2]
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(e) Discuss how important the wholesaler is to the small-scale retailer.
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[Total: 17]
[Turn over
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2 SS Sofas is a multiple chain store that sells sofas.
(a) SS Sofas provides loyalty cards to its customers.
Explain one way in which the customers of SS might benefit from using a loyalty card.
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(b) Identify two features of hire purchase.
1 ........................................................................................................................................
2 ........................................................................................................................................
[2]
(c) Explain one reason why warehousing would be important to this multiple chain store.
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(d) Discuss the implications of online shopping for consumers. Give reasons for your answer.
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[Total: 13]
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