BOTSWANA EXAMINATIONS COUNCIL

Botswana General Certificate of Secondary Education

COMMERCE 0598/02
Paper 2 October/November 2023
2 hours 30 minutes
Candidates answer on the Question Paper.

No Additional materials are required

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READ THESE INSTRUCTIONS FIRST

Write your Centre number, candidate number and name in the spaces provided at the top of the page.
Do not use staples, paper clips, highlighters, glue or correction fluid.
Answer all questions.
Write your answers in the spaces provided on the question paper.
The number of marks is given in brackets [ ] at the end of each question or part question.
Calculators may be used.

This document consists of 13 printed pages and 3 blank pages.

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1 TTM (Pty) Ltd manufactures bricks and sells them to individual customers as well as
construction companies locally.

(a) (i) State the level of specialization that TTM (Pty) Ltd operates at?

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(ii) Explain two disadvantages of division of labour to TTM (Pty) Ltd.

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(b) A construction company in Zimbabwe has recently contacted TTM (Pty) Ltd to buy
bricks from them.

(i) State three middlemen who might assist TTM (Pty) Ltd when exporting its bricks.

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(ii) TTM (Pty) Ltd and the construction company in Zimbabwe agreed to use a letter
of credit as a method of payment.

Discuss whether or not the letter of credit as a method of payment would be

beneficial to TTM (Pty) Ltd.

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(c) TTM (Pty) Ltd is to deliver the bricks to Zimbabwe. They have an option to use these
modes of transport:

• Road transport
• Rail transport

Discuss the two options. Which mode of transport would you recommend? Give
three reasons for your recommendation.

Road transport .............................................................................................................

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Recommendation .........................................................................................................

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2 Fig.1 is an advertisement by a mail order business.

SMART CLOTHING MAIL ORDER BUSINESS

The number 1 mail order business in Africa

No business can beat us with customer service.

• No sales tax
• Offer discount to our loyal customers
• Free return shipping when returning or exchanging items.

We dress celebrities and models – check our Catalogues with price lists

Non-store retailing so reaching out to you at the comfort of your home or office:

Online advertisement; sales and payment by post office: cash on delivery

Fig. 1

(a) (i) Identify two statements from the advertisement that makes it competitive.

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(ii) Describe one method of appeal used by Smart Clothing.

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(iii) Describe three services in Fig.1 rendered by the post office to the mail order
business.

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(b) Explain three advantages of a mail order business to the customers of Smart
Clothing.

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(c) Smart Clothing owns a warehouse which they prepare orders from.

Analyse three functions of warehousing to Smart Clothing.

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[Total: 25]

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3 ZM Builders in South Africa supplies RTM Wholesalers in Botswana with building

materials.

The two businesses have entered into a contract of sale.

(a) (i) What is meant by the term ‘acceptance’, in the contract of sale?

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(ii) State one difference between actual sale and agreement to sell.

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(b) ZM Builders in Red Jacket Street, Zeerust, South Africa has dispatched on
30 September 2024, the following items to RTM Wholesalers, Kago Street in
Molepolole, Botswana as per their order No: 2010.

• 100 Aluminium door frames – reference number 1

• 200 Afrisam 50kg bags of cement – reference number 2

Prepare the advice note sent by ZM Builders to RTM Wholesalers.

reference number description of goods quantity

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(c) State three consumer rights that RTM Wholesalers has to observe when entering
into agreement with their customers.

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(d) Explain three functions performed by RTM Wholesalers to its customers.

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(e) RTM Wholesalers uses after sales on regular basis as a strategy to survive in the
chain of distribution.

Discuss whether or not after sales service would help RTM Wholesalers survive in
the chain of distribution.

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[Total: 25]

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4 LGK is a multinational company with a branch in Botswana. It has issued shares and
debentures through Botswana Stock Exchange.

(a) (i) State two differences between ordinary shares and preference shares.

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(ii) Analyse three ways by which LGK would benefit from raising finance by issuing
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(b) (i) What is meant by a stock exchange?

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(ii) Explain two functions of the stock exchange.

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(c) Discuss whether or not the citizens of Botswana would benefit from the operations of
LGK Multinational Company.

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[Total: 27]

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publisher will be pleased to make amends a the earliest possible opportunity.

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