MINISTRY OF EDUCATION

DASIMO PRIMARY AND SECONDARY SCHOOL

COMMERCE GRADE 12
MOCK EXAMINATION – JULY 2024
Duration: 2: 30 minutes Marks: 100
FULL NAME: ………………………………………………………………………………………. CLASS: ………………..

Instructions to candidates
1 Write all your answers in this question paper.
2 Write your name and class in the spaces above.
3 There are three (3) sections in this question paper, Section A, B and C.
4 Answer all the questions in all three (3) sections. Write all your answers in the spaces
provided in this question.
5 In Section A, for each question, four (4) suggested answers are given A, B, C and D.
Choose the best answer and show it by marking it with a cross (X).
For example if the answer is D:
[A]. [B]. [C]. [D].

Information for candidates

Cell phones are not allowed in the examination room.

This paper contains both questions and spaces for answers. Write all your
answers in this paper.
SECTION A (20 MARKS)

Mr. P. R. Banda & Commerce @2024

Choose the best answer and show it by marking it with a cross (X). Answer of questions in this
section.
1. Goods sold below cost prices in order to attract customers into the shop or increase
working capital in a business are called ………………………
[A] Damages. [B] Loss leaders. [C] Counterfeit goods. [D] Fake goods
2. Which of the following is one of the ways of reducing land pollution caused by packages of
goods such as bottles, plastics, etc thrown on the environment?
[A] To ban packaging of goods [B] To ban branding of goods
[C] To increase recycling of packages. [D] To increase production of packages
3. Goods that are regarded as durable, expensive and attractive are called ……………..
[A] counterfeit [B] Fake [C] original [D] standard
4. A business document used in home trade which is also referred to as a bill is …………..
[A] a cheque. [B] a quotation. [C] an enquiry. [D] an invoice.
5. A trade restriction faced by an exporter is called …………………
[A] balance of payment [B] customs drawback. [C] embargo. [D] entrepot trade.
6. Which of the following is an example of a public corporation?
[A] Konkola Copper Mine [B] Pick n Pay
[C] Zambia sugar PLC [D] National Housing Authority
7. Which document is by the Registrar of Companies for a company to be registered?
[A] Title deed [B] Deed Of Partnership
[C] Article of Association [D] Trading Licence
8. A number of shares that are bundled together for easy trading and handling is called
[A] debentures. [B] bond [C] security.
9. ………………….. are ships mainly for carrying large quantities of one product.
[A] Bulk carriers [B] Container ships [C] Roll-on-roll-off ferries [D] Tankers
10. The mode of transport that is more economical in long distances is ………… transport.
[A] road. [B] railway. [C] air [D] sea.
11. The financial institution that acts as a lender of last resort to all banks is ………………..
[A] Central Bank. [B] National Building Society
[C] National Savings and Credit Bank. [D] Zambia National Commercial Bank.

Mr. P. R. Banda & Commerce @2024

12. A financial institutions that offers foreign currency to the public is …………
[A] cleaning ruse. [B] bureau de change
[C] insurance companies. [D] micro-finance companies.
13. 14 One of the reasons some postal services are needed in todavs trade is that they.
[A] are cheap. [B] are expensive [C] are very fast. [D] require special equipment.
14. Which internet facility enables access to a wide range of information?
[A] Air mail. [B] world wide web. [C] Poste restante. [D] Surface mail
15. ………..is a global network of computers which allows users access to worldwide information.
[A] Radio messaging [B] Mobile phoning [C] Internet [D] Confravision
16. Which of the following does not belong to household risks?
[A] Damage to furniture by rain [B] Embezzlernent
[C] Loss of furniture due to fire. [D] Theft of furniture
17. The type of advertising that seeks to merely inform the public about matters of national
interest such as corona virus and cholera called............... advertising.
[A] Persuasive [B] Informative [C] Competitive [D] Collective
18. When 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] Informative Advertising.
19. Firms that are independent and specialised in helping to advertise the product of the seller
to potential buyers are..............
[A] advertising agents. [B] advertising campaigns. [C] advertising media. [D] brokers.

20. Which of the following is the effect of e-commerce in retail trade?

[A] The delays in the delivery of goods bought. [B] The giving of money for free.

[C] Enjoying the phone used for browsing. [D] Delays in sleeping.

SECTION B (40 MARKS)

Mr. P. R. Banda & Commerce @2024

Write your answers in the spaces provided below or after each question. Answer all the
questions in this section.

1.For each of the following statements, state whether it is TRUE or FALSE.

(i) Buying and selling or goods and services is wholesaling……………
[1]
(ii) A contract can either be written or orally expressed. ……………
[1]
(iii) Retail trade is divided into small scale and large scale. …………...
[1]
(iv) The reward for trading is profit or loss. …..……….
[1]
(v) Self-service came mainly as a result of branding. …………….
[1]
2. Use the word list below to complete the statement that follow:
Word list: Land. Indirect production. Manufacturer. Enterprise. Production
(a) ………………….…………….…..… is the production of goods and services for exchange.
(b) ………………...…….……..…… has the ability to organise and combine factors of production.
(c) …………………….……………... is the process of creating goods and services to satisfy man’s
wants and needs. [ 3 marks ]
3. What do you understand by the term pre-sale services?..................................................
…………………………………………………..………………………………………………………………….. [ 2 marks ]
4. What do you call a large retail shop whose location is on the outskirts of town but close to
main roads?................................................................................................................ [ 1 mark ]
5. Name the type of retail shop that turns a motor van or mini bus into a shop when selling
goods to consumers………………................................................................................... [ 1 mark ]
6. Name any two(2) items that is used as a shop window for mail order businesses.
.............................................................................................................................. [ 2 mark ]
7. The Biemba Brothers owe K6 000.00 to Silavwe Limited. They were given 10% trade
discount. They were further given 5% cash discount for paying within the agreed period.
a. What was the amount for Trade Discount?
……………………………..................................................................................................…………..
……………………………..................................................................................................…………..

Mr. P. R. Banda & Commerce @2024

 ……………………………..................................................................................................…[1 mark]
b. What was the amount for Cash Discount?
……………………………..................................................................................................…………..
……………………………..................................................................................................…………..
……………………………..................................................................................................……[1 mark]
c. How much did they finally pay?
……………………………..................................................................................................…………..
……………………………..................................................................................................…………..
……………………………..................................................................................................…[1 mark]
8. Match the words/phrases in Table A with the statements in Table B.

Table A Table B

Invoice Adding on to capital the undistributed profits.

Bill lading A status of not being held responsible for

company’s financial losses and debts.

Limited liability Bringing low quality and cheaper goods from rich
countries.

Trade discount Deduction given to encourage bulky and repeated

buying/ordering.

Ploughing back profits A business document that shows the buyer what
he/she owes the supplier.

Dumping Business document that shows proof of payment.

[6 marks]
9. A company is an artificial person. It can sue and can be sued. It can own land, buildings and
sign contracts.
a. What do we call people who own shares in a company?
………….....................................................................................................…………………… [1 mark]
b. What is the two(2) main sources of capital for a company?
………………………………............................................................................................................………

Mr. P. R. Banda & Commerce @2024

 ……………………………….........................................................................................................
……………………………………….......................................................................................................[2
marks]
10. Explain the term 'internet'.
……………………………….........................................................................................................................………
………………………………...........................................................................................................
……………………………………….........................................................................................................................
......[2 marks]
11. (a) What is the main difference between a mobile shop and a hawker?
..............................................................................................................................................
..............................................................................................................................................
.............................................................................................................................. [ 2 mark ]

b) Mention any TWO disadvantages of a mobile shop.

..............................................................................................................................................
............................................................................................................................... [1 mark ]
..............................................................................................................................................
............................................................................................................................... [1 mark ]
12. Use the word list provided below to classify each of the following statements correctly.
Word List:
Private bag, Franking machine, Telephone, Telegram, E-mail, Posted Restante, Business
reply

Mr. P. R. Banda & Commerce @2024

 Statement Word/phrase
Postal service that enables clients to send replies in special envelopes
which do not require postage stamps to be affixed on them.
Used in organisation that send many letters at once to save time
affixing postage stamps on each letter.
Postal service for travelers to a city where they do not have a
permanent address.
Postal service that provides more security than post office boxes.
Used for receiving letters only where a person rents and receives
letters from one point at any time.
Used to provide an instant and speedy contact for people in engaged
in commerce even over a long distance(within a country or abroad).
Message via an electronic device without the need to post letters.
Speedy and urgent means of sending messages in which charges are
calculated per word.
[8 marks]

SECTION C ( 40 MARKS)
There are five questions in this section. Answer only two questions. Write your answer on the
spaces provided after the questions. Circle the question number of questions that you’re
going to answer.
1. (a) Explain:
(i) How specialisation depends on trade. [2]
(ii) Automatic Vending Machine [2]
(iii) loss leaders. [2]
(b) Electronic Commerce is one of the latest trends in retailing.
(i) What is Electronic Commerce? [4]
(ii) Explain the advantages and disadvantages of Electronic Commerce to the retailers [5]
(c) What are the effects of electronic commerce in retail trade? [5]
2. (a) When transporting goods by road over a 'long distance, what will be taken into
account to determine transportation rates? [4]
(b) Describe the advantages and disadvantages of road transport. [8]
(c) Explain the advantages of using your own fleet of trucks. [4]
(d) What roles do the Customs and Excise authorities play in foreign trade? [4]

Mr. P. R. Banda & Commerce @2024

3. Mr. P. Mwiinga has just opened his furniture shop at Lucky Chance Shopping Complex.
Unfortunately his shop is not insured.
(a) Explain to him the need to take out an insurance cover [4]
(b) List six risks which he must insure against.
[6]
(c) Why should he consider the principles of insurable interest and indemnity before
deciding to insure? [6]
(d) Why should he be advised to go to an insurance broker to arrange for an insurance cover
rather than directly to an insurance company? [4]
4. (a) With examples, explain the following documents as used in home trade:

(I) Quotation. [3] (iii) Cheque. [3]

(II) Debit note. [3]. (Iv) Inquiry [3]
(b) What are the differences between cash discount and trade discount. [8]
5. Miss F. Ndumba and Mr. Y. Koyi are leading business people in your local area as partners.
(a) What reasons would you give to encourage them to go ahead with the idea of forming a
Private Limited Company?
(b) To some extent both Private and Public Companies have common features.

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Mr. P. R. Banda & Commerce @2024

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Mr. P. R. Banda & Commerce @2024

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Mr. P. R. Banda & Commerce @2024

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Mr. P. R. Banda & Commerce @2024

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Mr. P. R. Banda & Commerce @2024

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Mr. P. R. Banda & Commerce @2024

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Mr. P. R. Banda & Commerce @2024

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Mr. P. R. Banda & Commerce @2024