GENERAL CERTIFICATE OF EDUCATION BOARD General Certificate of Education Examination 0520 COMMERCE 1 JUNE 2023 ORDINARY LEVEL Centre Number Centre Name Candidate Identification Number Candidate Name Mobile phones are NOT allowed in the examination room. MULTIPLE CHOICE QUESTION PAPER One and a half hours INSTRUCTIONS TO CANDIDATES Read the following instructions carefully before you start answering the questions in this paper. Make sure you have a soft HB pencil and an eraser for this examination. 1. USE SOFT HB PENCIL THROUGHOUT THE EXAMINATION. 2. DONOT OPEN THIS BOOKLET UNTIL YOU ARE TOLD TO DO So. Before the examination begins: a Check that this question booklet is headed “ORDINARY LEVEL - 0520 COMMERCE 1” 4, Fill in the information required in the spaces above. 5. in the information required in the spaces provided on the answer sheet using your HB pencil: Candidate Name, Exam Session, Subject Code and Candidate Identification Number. Take care that you do not crease or fold the answer sheet or make any marks on it other than those asked for in these instructions. How to answer the questions in this examination 6. Answer ALL the $0 questions in this Examination. All questions carry equal marks, 7. Non-programmable Calculators are allowed. 8. Each question has FOUR suggested answers: A, B, C and D. Decide which answer is appropriate. Find the number of the question on the Answer Sheet and draw a horizontal line across the letter to join the square brackets for the answer you have chosen. For example, if C is your correct answer, mark C as shown below: [A] (6) £64 [0] 9. Mark only one answer for each qu question. If you change your answer. ion. If you mark more than one answer, you will score a zero for that about an answer, erase the first mark carefully, then mark your new 10, ~ Avoid spending too much time on any one question. If you find a question difficult, move on t0' the next question. You can come back to this question later. 11. Doall your rough work in this booklet using the blank spaces in the question booklet. 12, At the end of the examination, the invigilator shall collect the answer sheet first and then the question booklet. DO NOT ATTEMPT TO LEAVE THE EXAMINATION HALL WITH IT, Turn Over 052071 ©GCEB20231. Anauniliary to trade that enables goods to be available when and where needed is; A Advertising. B_ Insurance. C Transport. D_ Warehousing. Which retail trader sells goods to consumers. on a door-to-door basis? ‘A Hawker. B_ Retailer. C Mobile shop. D_ Road side trader, 3. What is the reward to an entrepreneur? A. Interest, B Dividends. C_ Rents. D_ Profits. 4. The process of change of forms of goods is by; A. Industry. B Commerce. C Manufacturing. D__ Direct services. “LTD” at end of a company’s name si A _ Private corporation. B Public corporation. C Private company. D_ Public company. fies? 9. Customers who buy in bulk benefit from; A Quantity discount. B_ Trade discount. Rebate discount. D_ Cash discount. 10, A document used to correct an error of Overcharge in an invoice is called; A. Delivery note. B__ Debit note. C Consignment note. ‘The abbreviation E&OE is printed in which of the following trade documents? A. Statement of account. B Invoice. C Credit note. D Debit note. is also ealled “shop of shops". ‘A Department stores, B_ Multiple shops. C__ Mail order business. D_ Hypermarkets. 13, A transport mode that is flexible over short distances is; A Road. Bo Sea C__ River transport. D. Air. 6. Which of the following retail outlets occupies the largest space? A Supermarket. B Tied shop. © Chain stores. D_ Hypermarket. Which document provides a summary of transactions at the end of every trading period? A Invoice. B Statement of account. Bank statement of account. D__ Pro forma invoice. State a restriction on foreign trade that does not generate income; A Tariffs B_ Quotas. C Embargo. D Customs duty. 23 0520/1 14, Cheques that can be cashed by anyone are; Order cheques. Bearer’s cheques. Certified cheques. Blank cheques, com> Capital owned. Working capital. Capital employed. Circulating capital. vow> 16, Anorderto an agent to buy goods from a named manufacturer is called; A. Indent. B Open indent. C Closed indent, D__ Forwarding agent. 17, Ina cheque transaction identify the payee; A Account holder. B Creditor. C Bank. D Drawer. Go on to the next page18, Who pays for loading charges in an FOB price quotation? A. Seller, B Buyer. Importer, D Consignee. 19. Direct dealing by-passes; A Producers. B Wholesalers. C Retailers, D Consumer. 20. A monetary policy tool used to inerease the ‘quantity of money in circulation is; ‘A Moral suasion. B_ Special deposits. Funding, D__ Open market operation. 21. An insurance practice that restores the insured in the original position before the loss occurred ‘A Indemnity. B_Proximate cause. CC Insurable interest. D__ Utmost good fai 22 The following are corporate bodies EXCEPT; ‘A. Public company. B Partnership. C Private company. D__ Public corporation. 23. Which of the following is the most important function of a commercial bank? A- Granting loans. B_ Accepting deposits. © Making payments. D__ Providing night safe fe ity, 24. Gross profits expressed as a percentage of sales is; A) Mark-up. B_ Rate of turnover. CNet profits. D. Margin, 25. When a bank customer uses a single cheque to ‘make several payments itis called; A. Bank draft B Credit transfer. Standing order, D_ Overdraft. 237052071 26. A risk that may lead to an intentional loss is; A Hull policy. B_ Ship's owner liability. C_Iettison. D_ Cargo insurance. 27. A document used when goods are transported by a hired means of transport is; A Delivery note. B Consignment note. Airway bill. D__ Bill of lading. 28. Cost of goods sold divided by average stock is, known as; A Turnover. B Rate of turnover. C Purchases. D. Margin. 29. Savings account are opened to; ‘A. Regular income earners. B__ Small income earners. C High income eamers. D Civil servants 30. A document which stipulate how profits are shared in an incorporated business is called; A. Articles of association. B Deed of partnership. C Memorandum of association, D__ Prospectus. 31 Anadvantage of operating a current account is; ‘A Use pass book for transactions. B_ Can obtain an overdraft. C Pays charges to the bank. D Account earns interest. 32. Acount ble bi balance is; A Balance of trade. B__ Balance of payments on current account, C Balancing item. D_ Terms of trade. ince plus her invisible 33. Insurance claims are calculated by; A’ Actuaries. B_ Assessors. C Adjuster. D Broker. 34. Which of the following is an external source of finance to a business? A Past savings. B__ Issue of shares. C Retained earnings, D_Plough-back, ‘Turn Over35. A document which spells out the exact terms of an insurance contract is called; A Cover note. B__ Proposal form. Insurance policy. D_ Claim form. 36. Anagent who guarantees to pay for bad debts, is; A’ Forwarding agent. B Insurance agent. C Del credere agent. D_ Factor agent. 37. The relationship between a country’s exports and imports is termed; ‘A. Favourable balance. B__Unfavourable balance. C Balance of trade. D_ Terms of trade. 38. __ A document showing particulars of items carried in a ship is called; A Shipping report. B Shipping note. C _Billoflading. D Ship manifest. 39 Theact ofan unplanned buying is known as; A. Self-service buying. B__ Impulse buying. CC Bulk-buying, D Automatic buying. 40 Given that the cost of goods sold is 3,000,000 CFAF and the selling price is 3,750,000 CFAR, then mark-up equals; A 25%. B 30%. C 20%. D 35%, “41, A carrier that carries more passengers and little éargo on fixed routes is called; A Cargo liners. B__ Passenger liners. Tramps ships. D Coastal liners. 42. Given that closing stock is 10,000 CFAF, purchases is 60,000 CFAF, opening stock is 30,000 CFAF and sales is 100,000 CFAF. Gross profit equals; ‘A 20,000 CRAP. B 30,000 CRAP. C 80,000 CFAF. D_ 90,000 CFA 23 /0520/1 43. A business with both private and public ‘ownership is known a5; A Public enterprise. B Public compan Public corporation. D Para-statals. 44. Containerization is advantageous for the ‘transportation of goods for the following, reasons EXCEPT; ‘A Reduces the risks of pilfering. B Requires trans! C— Maximises quantity of goods in a given space. D_ Can be put into other uses. 45. Joint advertising carried out by MTN, ‘NEXTTEL and ORANGE is known as; A. Generic. B_ Mass advertising, C Persuasive advertising, D_ Competitive advertising 46. Which of the following is a disadvantage of advertising? A Increase of product. B__ Increase cost of production. C_ Educates customers. D Creates awareness of product availa ity. 47. ‘The practice in which goods sold by description must correspond to the description is best describe by; ‘A. Food and Drug Act. B Sales of Goods Act. C Trade description Act. D Hire Purchase Act. 48 Which of the following is NOT a reason for trade restriction? ‘A. Prevent dumping. B__ Prevent consumption of harmful goods. C__ Reduce government revenue. D__ Correct a temporal balance of payments, 49. Which of the following is NOT used as a ctiterion for classifying enterprises? A. Ownershij B Output, C Size. D Demand. 50, The capital with the least risk in a joint-stock company is; A. Equity capital, B_ Debenture. C Preference shares. D__ Cumulative preference shares STOP GO BACK AND CHECK YOUR WORK