MINISTRY OF EDUCATION

DASIMO PRIMARY AND SECONDARY

SCHOOL
COMMERCE GRADE 11
END OF YEAR EXAMINATION – 29th
NOVEMBER 2024

Duration: 110 minutes Marks: 80

FULL NAME: …………………………………………………………………………………………….……………..

Instructions to candidates
1 Write all your answers in this question paper.
2 Write your name in the space above.
3 There are two (2) sections in this question paper, Section A and B. Answer ALL
questions in section A answer any two in section B.
4 Write all your answers in the spaces provided below each question.

Information for candidates

Cell phones are not allowed in the examination room.

Department of Mathematics and Business- Mr. Banda@2024

 SECTION A - (40 MARKS)
Write your answers in the spaces provided below or after each question. Answer all the questions
in this section.

1. What are three elements that make up a valid contract?

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…………………………………………………………………………………………….…………….. [3]
2. Mention two effects of commerce and production on the environment.
………………………………………………………………………………………….……………………………………………
……………………………………………………………………………………….………………………………………….. [2]
3. The following shows problems paired with their solutions.

Problem Solution
Distance Banking
Risk Insurance
Storage Warehouse
State either True or False whether each problem has been paired with the correct
solution. ………………………………………………………………….……………………………………………. [2]
4. Study the diagram of an invoice below:

Quantity Description Unit price (K) Total price (K)

400 School uniforms CHIMFWEMBE
100 BRANDING LTD.
(i) ............
Less 5% trade discount Garden House, Lusaka (ii) ….........
Invoice no. 123
Total (iii) ………….Date: 26-11-24
To: MBOMBUBO PRIMARY SCHOOL
Kachala Area 10, MUMBWA

E&OE. SIGN: Davis Chimfwembe.

Calculate the values at (i), (ii) and (iii). [3]

5. Retailers select goods they would like to buy from a ………………........................................
……………………………….……….. warehouse. [1]

Department of Mathematics and Business- Mr. Banda@2024

6. What form of capital is often secured on a company’s assets?
……………………………………………………………………………………….………………………………………….. [1]
7. Give two examples of people who have no legal capacity to enter into a legal contract.
………………………………..…………………………. .………………….………………………………………….. [2]
8. State the effect of each of the following on share prices:
(i) Announcement of recent profit made by the company
……………………………………………………………………………………….………………………………………….. [1]
(ii) Government threatens to take over the operation of the company
……………………………………………………………………………………….………………………………………….. [1]
(iii) Company discovers a new mineral.
……………………………………………………………………………………….………………………………………….. [1]
9. Match the items in terms column to the correct means in the description column in the
table below:
Terms
Description
Capital secured on a company’s own assets. Consignment note

Granted to a legal person to be paid later Bill of exchange

with interest. Unfavorable balance of trade

Used when goods are sent through a hired
Debenture
transport.
Authority to resale dishonoured imports. Loan
Visible imports exceeds visible exports.
[5 marks]
10. A private limited company is controlled by .....................................................................[1]
11. What is the main source of capital for a public corporation?
……………………………………………………………………………………….……………………………………….....[1]
12. Shooba limited company had a share capital of 4000 5% preference shares of k500 each.
The company made a profit of K20 000 that year. Find :
(a) total dividends paid to preference shareholders.
(b) dividends paid to owners of 1 500 preference shares.

Department of Mathematics and Business- Mr. Banda@2024

 (c) What would be the income from the investments of 9 000 1 ordinary shares with a
rate of dividend of 12.5%? ………………...............................................................................
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……………………………………………………………………………………….………………………………………....[5]
13. Explain the term ‘separate legal existence'.
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……………………………………………………………………………………….………………………………………....[2]
14. Use the word list below to complete the statements that follows.
Word list

risks losses share stock Ordinary Preference

(a) Insurance company compensates the insured in case of ……………………………………….[1]

(b) Some entrepreneurs seek strengths from successful entrepreneurs to avoid. ………...
……………………………………………………………………………….………………………………………....... [1]
(c) ………………………….shares have no voting rights and say in a company. [1]
(d) …………………………. shares have voting rights and say in the company management [1]
15. From the following list, identify five(5) main characteristics of hire purchase:
(i) Buyer becomes a legal owner immediately the first payment is made.
(ii) Installments follows an initial deposit for the goods bought.
(iii) It is suitable for non-durable goods.
(iv) Buyer becomes the legal owner of goods on making the last installment.

Department of Mathematics and Business- Mr. Banda@2024

 (v) Items bought may be sold before the last payment is completed.
(vi) Legally the item remains a property of the seller until the last instalment.
(vii) Seller can repossess the item if the buyer defaults.
(viii) It is suitable for selling durable goods.
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……………………………………………………………………………………….……………………………………….. [5]

SECTION B - (40 MARKS)

Answer any two (2) questions in this section. Circle the question number of the question
you will choose to answer.
1. Explain how the services of each of the following would help a poultry farmer to be
successful:
(a) Banking [5]
(b) Transport [5]
(c) Communication [5]
(d) Insurance. [5]

2. (i) Describe how a self-service store operates. [4]

(ii) What are the main features of a self-service store? [6]
(iii) Distinguish self-service from personal service. [10]

3. (a) What is the importance of foreign trade to people engaged in commerce? [10]
(b) Outline the main challenges that business individuals face in foreign trade. [10]

4. (i) Discuss the main features of a sole trader. [8]

(ii) Differentiate a sole trader from a shareholder [12]

5. Describe:
(i) features of a private limited company. [10]
(j) the benefits of a public corporation to a country. [10]

Good bye 
Department of Mathematics and Business- Mr. Banda@2024
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Department of Mathematics and Business- Mr. Banda@2024