WISEBRAIN
ACADEMY
HIGH SCHOOL PAPER
COMMERCE April 2025
Paper 1 2 hours
You must answer on the answer sheet provided.
You will need: answer sheet
pen (blue pen is recommended)
INSTRUCTIONS
Answer all questions
Write your name ON YOUR ANSWER SHEET
Do not write write anything on the Question Paper
Do not open the Question Paper until you are told to do so
INFORMATION
The total mark for this paper is 40
This document has 7 pages.
1. Goods required for personal use are called ...
A agricultural goods.
B capital goods.
C consumer goods..
D producer goods.
2. Which·ofthe following ~oes not belong to the secondary industries?
A baking
B canning
C mining
D tanning
3. Commercial activities are concerned with the ...
A distribution of goods from producers to consumers.
B production of goods and Services. .
C provision of health services.
D provision of direct services.
4. Which one of the.following is a disadvantage of direct production?
A immobility'of labour
B lack of other related skills
C limited~hoire of goeds ....
D poor quality goods
5. Specialisation Occurswhen a person ...
A becomes an expert in carrying out specific tasks.
B changes occupations when the need arises.
C has no skills at all in any trade.
D is a jack of all trades.
6. What is meant by .division of labour ?
A getting goods from the manufacturer to the consumer
B lack of job satisfaction at work
C the breakdown of work activities into individual tasks
D the conversion of raw materials into useful products
7. Which of the following is not true for. tertiary production?
A advertising and teaching
B importing andexporting
C mining and-quarrying
D retailing and wholesaling
8. The name given to trade and the services that facilitate trade is...
A assembly.
B commerce.
C industry.
D mechanisation..
9. Why would a specialist worker find his or her skills no longer relevant in a
particular industry?
A consumption of perishable goods
B development of new processes and techniques
C greater skill and greater speed at particular jobs
D mass production of standardised goods
10. Which one is a reward of capital?
A interest
B profit
C rent
D wage
11. One of the functions of a wholesaler is to ...
A provide a variety of goods to retailers.
B produce goods for manufacturers.
C sell consumer goods to manufacturers.
D sell goods for retailers to consumers.
12. Warehousing is when wholesalers provide ...
A advice to retailers on how to display goods.
B delivery services to retailers for goods bought.
C market information to suppliers on customer wants.
D storage facilities for different types of goods.
13.Why are wholesalers important in the channel of distribution?
They:
A are the last link in the chain of production.
B collect orders from several retail outlets.
C form part of the extractive industries.
D specialise in the transportation 'of raw material.
14. General merchandise wholesalers sell ...
A different types of goods to retailers.
B expensive goods to retailers.
C goods made to order.
D perishable goods only.
15. A wholesaler who does not offer delivery and credit is called a ...
A cash and carry wholesaler.
B mail order wholesal.
C specialist wholesaler.
D wholesale merchant.
16. Direct dealing is most suitable for goods that ...
A are affected by seasonal fluctuations.
B are produced by several manufacturers.
C can be delivered to wholesalers.
D have a slow rate of turnover .
17 Which one of the following is a wholesaler?
A Choppies
B Spar
C Trans
D PnP
18 Which one is not a reason for setting up marketing boards?
A to control prices
B to manufacture goods
C to prevent shortages
D to store goods
19 Which'one is owned by farmers?
A cash-and-carry wholesalers
B co-operative wholesaler society
C specialist wholesalers
D traditional wholesalers
20 Which one is not true of a wholesaler?
A branding goods for retailers
B delivering goods to retailers
C evening out supply of goods
D located near to customers
21 Which one is not a large-scale retail outlet?
A department store
B independent store '
C retail co-operative society
D variety chain store
22 Pre-packaging ....
A assures consumers of consistent quality.
B enables trader to order goods easily.
C makes goods easy to handle and carry
D makes products look different
23 Which factor may not increase-sales ofa firm?
A carrying out market research
B improving quality of service
C lowering prices of goods
D selling to a few selected customers
24 Department stores are located in ...
A busy shopping areas.
B city centres.
C industrial areas.
D outskirts of cities.
25 With "Do-It-Yourself” products, customers ... .
A assemble parts using accompanying instructions
B get goods at very low prices' .
C should be knowledgeable of the products
D should produce their own goods
26 For what reason do some retailers buy from manufacturers?
A Retailers have enough capital to buy in bulk
B Retailers need to buy variety of goods
C Retailers want to buy on credit
D Retailers want to bay in single units
27 In which transaction do goods belong to the buyer, on payment of the last
instalment?
A deferred payment
B factoring hire purchase
D lease agreement
28 Which statement is true of a lay-bye agreement?
A· It must be in writing and signed by all parties.
B It must givethe date of.payment for each instalment.
C. It must include a statement of cash price before interest is added.
D The goods are kept by the seller until the price is paid in full.
29 Which is a feature of credit sales agreement?
A Buyer becomes owner of goods on payment of first instalment.
B Buyer becomes owner of goods on payment of last instalment.
C Buyer cannot Sell the goods before the last instalment.
D Buyer is accorded legal protection.
30 What is the primary advantage of wholesale trade?
A It allows manufacturers to sell goods directly to consumers
B It provides financing to retailers
C It reduces the cost of goods by eliminating the need for retailers
D It increases the efficiency of distribution by acting as a middleman
31 Retailers at times offer trade discounts to their customers.
A. True
B. False
32 Large scale retailers normally buy from wholesalers at low prices.
A. True
B. False
33 A vending machine uses the self-service selling method.
A. True
B. False
34 Shopping malls allows the selling of foodstuffs and household goods only;
A. True
B. False
35 "Do-it-yourself' is.the process of producing, one'sigoods.
A. True
B. False
36 Which of the following is a characteristic of retail trade?
A Buying in large quantities
B Selling in small quantities
C Dealing with manufacturers directly
D Providing after-sales service
37 What is the primary function of a wholesaler?
A To sell goods directly to consumers
B To provide financing to retailers
C To act as a middleman between manufacturers and retailers
D To produce goods
38 Which of the following types of production involves the creation of goods using
machines and factories?
A Primary production
B Secondary production
C Tertiary production
D Quaternary production
39 What is the term for the process of creating goods or services?
A Production
B Consumption
C Distribution
D Marketing
40 Which of the following is an example of a retail trade business?
A A factory that produces clothing
B A wholesaler that sells clothing to retailers
C A department store that sells clothing to consumers
D A farmer who grows wheat
