PECULIAR ACADEMY (MUZAVAZI AREA)
2024 Mid Year Examinations
FORM 4 COMMERCE
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Section A (Multiple Choice Questions)
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1. Which of the following contributes to the satisfaction of human wants?
A. goods only
B. goods and services
C. services only
D. government
2. The effort to organise, coordinate and control other factors of production is referred to
as
A. capital
B. land
C. labour
D. enterprise
3. Which of the following is not a form of trade?
A. entrepot
B. exporting
C. retailing.
D. franchising
4. What is electronic commerce (e - commerce)?
A. the buying and selling between two or more countries
B. the marketing of goods and services on the internet
C. the sending and receiving of messages through computers
D. the trade conducted between foreigners
5. Which of the following offers self-service?
A. supermarket
B. mail order shop
C. sole trader
D. vendors
6. Which of the following is an advantage of branding goods?
A. goods advertise themselves
B. it makes goods easy to handle
C. perishable are protected from deterioration
D. there is no advantage at all
7. Direct distribution refers to:
A. the process whereby producers sell directly to wholesalers
B. the situation where producers sell directly to retailers
C. the situation where producers sell directlty to consumers
D. the stage where goods are sold in bulk
8. Which one of the following is not a reward for factors of production?
A .rent
B. labour
C. profit
D. wages
9. The following are advantages of international trade except __________
A. it promotes specialisation
B. it earns foreign currency for the host countries.
C. it ensures that resources are equally distributed among nations
D. it promotes poverty to poor countries.
10. Which of the following is not a function of the wholesaler?
A. advertising goods on behalf of consumers
B. advertising goods on behalf of producers
C. purchasing goods in bulk from producers
D. providing storage for manufacturers' goods.
11. What is consumer protection?
A it is the practice of protecting consumers from thieves
B it is a law which encourages consumers to demand more resources from government
C. it is the practice of protecting and safeguarding the consumer against unfair
practices in the marketplace
D. it is an association of all retailers in Zimbabwe.
12. The tertiary stage of production in concerned with the ____________
A. the distribution of goods and services
B. the production of goods and services
C. the extraction of raw materials from the Earth's surface.
D. the conversion of raw materials into usable goods.
13. The traditional channel of distribution is suitable for the distribution of ______________
A. perishable goods
B. goods that are in short supply
C. goods that have a long shelf life
D. goods that have been imported from other countries
14. Beneficiation involves the process of _____________
A. removing impurities from raw materials or minerals so that they become high grade
products
B. adding value to value a product at each stage of production
C. selling products in foreign currency only
D. importing goods from neighbouring countries
15. Entreport trade can be described as ____________________
A. the buying of goods from other countries
B. the selling of goods to foreign currency
C. the distribution of goods and services
D. re - exporting of goods previously imported
16. The following are reasons for direct dealing (elimination of the wholesaler) except
_______________
A. wholesaling is unprofitable
B. perishable goods need reach consumers quickly
C. some large scale manufacturers own retail shops
D. some commodities such as jewelery cannot pass through wholesalers
17. In the law of insurance, the principle ''utmost good faith' states that _________________
A. both parties (the insured and the insurer) should disclose all important details.
B. the insured can deliberately cause an accident and claim compensation thereafter
C. the insured will receive compensation for a misfortune not covered in the contract
D. the principle is not that important
18. Which of the following is untrue about the Reserve Bank of Zimbabwe?
A. it is a lender of last resort
B. it regulates operations of financial institutions in Zimbabwe
C. it issues bank notes and coins
D. it takes deposits from the general public
19. The Consumer Council of Zimbabwe was established to _____________
A. to arrest consumers who complained about unfair market practices
B. as a voluntary watchdog to safeguard or protect consumer interests
C. to create laws that protect consumer rights
D. to protect the interests of retailers and manufacturers
20. Production is said to be complete when _____________
A. the goods are stored in the warehouses of manufacturers
B. there are serious shortages in the market
C. the goods have reached the final consumers
D. consumers fail to purchase goods and services
Section B (Essay questions)
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Please Note: The essay format requires you to answer in continuous writing, and not in
point form. The mark allocations to the questions serve to guide you on how much detail
you should include in the answers.
You are advised to answer any THREE questions from this section.
Q1.a) Define the term Commerce and briefly describe each of the two main branches of
commerce. [4]
b) State any four functions of commerce and show how each helps to satisfy the
needs and wants of consumers. [4]
c) Give any two disadvantages of division of labour. [2]
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Q2. a) Briefly describe any three advantages of multiple shops (chain stores) [3]
b) Give and explain any three reasons why manufacturers and retailers advertise
their goods. [3]
c) Explain any two advantages of advertising through radio and newspapers [4]
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Q3. a) Why is foreign trade important to Zimbabwe? . [6]
b) Why do large retailers buy directly from manufacturers? [4]
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Q4. a) What is production? [2]
b) "Communication and insurance are vital commercial services."
How do these aids to trade assist in the production of goods? [8]
Q5. Explain each of the following insurance terms:
(I) premium [2]
(ii) pooling of risks [2]
(iii) indemnity [2]
(iv) insurable risk [2]
(v) subrogation [2]
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END OF PAPER (Compiled by C.Marufu, August 2024)
