SECTION A (20mks)

Circle the letter corresponding to the correct answer.

1. Double coincidence of wants occurs when each of the parties involved in barter
trade has …….
A. Similar ones as the other
B. Exactly what the other one wants
C. Twice as much as the other
D. Exactly what the other one has

2. Which of the following is the most appropriate kind of business for firms offering
professional services…………..
A. Partnership
B. Sole proprietorship
C. Private limited company
D. A parastatal body

3. Demand can be defined as the quantity of goods and services that ……………
A. Satisfy human wants
B. Are desired by consumers
C. Are brought to the market at a give price
D. Consumer is willing to buy at a given price

4. Which of the following arrangement made among insurance companies to spread

the risk insured ……………
A. Re-Insurance
B. Under insurance
C. Co-insurance
D. Over insurance
5. The main reason for the existence of the public cooperation is to ……………
A. Sells shares to the public cheaply
B. Provide certain essential goods and services to the public cheaply
C. Enlighten the public on how to conduct business
D. Minimize profits from the distribution of goods and services to the public
cheaply.

6. Given a mark up 40% and the cost of goods SSP 2,800,000, the gross profit will
be ……………..
A. SSP 3,920,000
B. SSP 800,000
C. SSP 1,680,000
D. SSP 1,120,000

7. Arrangement where companies sell their products at an agreed price is called ..

A. Consortium
B. Cartel
C. Merger
D. Trust

8. Advertising is important to a business because it ………………..

A. Create employment opportunities
B. Reduce the price of goods and services
C. Increase the supply of goods and services
D. Increase the sales of goods and services

9. A document showing the duty payable and kept by the collector of goods from the
bonded warehouse is called …………….
 A. Custom warrant
B. Consignment notes
C. Warehouse keeper’s order
D. Memorandum

10. The provision of services falls under the production stage called ………..
A. Primary
B. Secondary
C. Tertiary
D. Commercial

11. Which one of the following methods would be most suitable to advertise a cheap
commodity which is for general consumption in South Sudan?
A. News papers
B. Radio
C. Television
D. Posters

12. The cost of goods on an invoice was SSP 800,000, how much would a customer
pay if he was allowed 6% trade discount and 8% cash discount?
A. SSP 752,000
B. SSP 60,160
C. SSP 48,000
D. SSP 691,840

13. Which of the following is an indirect service?

A. Building
B. Farming
C. Insurance
 D. Manufacturing

14. Money used in circulation without being backed up by gold reserve is called..
A. Bank notes
B. Legal Tender
C. Fiduciary
D. Currency issue

15. Value added tax is ………………………..

A. A tax levied on goods from other countries
B. An indirect tax levied on the value added on the goods
C. A direct tax levied on the value added to the commodity
D. A tax paid by customer at the time of purchase of a product

16. A certificate of in cooperation ….

A. Gives a company a separate legal entity
B. Sets out the rules and regulations of the company
C. States the name, objectives and share capital of the company
D. Gives the company permission to begin business and invite shares

17. An itinerant trader is the one who ………………..

A. Enjoys limited liability
B. Has no specific premises
C. Stock goods from the producer
D. Sells goods in bulk

18. ……………………………. Is a document issued to the buyer by the seller to

correct an over charge on the invoice.
A. Statement of account
 B. Debit note
C. Delivery note
D. Credit note

19. The insurance principles which requires the insured to surrender the scrap after
full compensation has been made is ……………………
A. Indemnity
B. Utmost good faith
C. Insurable interest
D. Subrogation

20. A situation where a company is unable to continue functioning due to debts is

called ………………………………
A. Insolvency
B. Dissolution
C. Bankruptcy
D. Deficiency
SECTION B (80 Marks)
Answer Four questions attempting (Q21) and any other three question from this
section.
Q21 (a). Distinguish between balance sheet and income statement (2mks)
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(b). Study the balance sheet below and answer the questions that follows.
Balance Sheet
Liabilities (SSP) Assets (SSP)
Capital 204,000 Fixtures & Fittings 75,000
Debenture 25,000 Motor van 80,000
Bank loan 75,000 Plant & machinery 95,000
Drawings 10,500 Stock 30,000
Creditors 45,000 Debtors 55,000
Profit for the year 20,500 Prepaid rent 25,000
Bank overdraft 25,000 Bank 45,000
405,000 405,000

You are also provided with the following information.

 Purchases for the year SSP 90,000
 Opening stock was valued at SSP 28,000
 Returns outwards is 10% of total purchase
Calculate;-
i. Net purchases (3mks)

ii. Cost of sales (3mks)

iii. Equity capital (3mks)

iv. Rate of stock turn (3mks)

 v. Working capital (3mks)

vi. Capital employed (3mks)

Q22. (a). Define the term insurance (2mks)

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(b). mention and explain any four importance of insurance to the business community in
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(c). State and explain any five principles of insurance (10mks)
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Q23.(a). Define the term division of labour (2mks)
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(b). Discuss any five benefits a teacher may get due to having only teaching commerce in
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(c). What are the four shortcomings a teacher may face due to having only teaching
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Q24 (a). Differentiate between legal tender and quasi money (4mks)
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(b). Mention and explain five qualities of a good money 10mks)
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(c). Explain the functions of South Sudan currency (8mks)
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Q25. (a). What do you mean the term partnership deed? (2mks)
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(b) Outline any six items found on the partnership deed (6ks)
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(c). Briefly explain any six merits of operating a partnership form of business over sole
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Q26. (a). Distinguish between departmental stores and multiple shops (4mks)
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(b). Explain the circumstances under which a wholesaler may be eliminated from the
chain of distribution (8mks).
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(c). What are the qualities of a good wholesaler? (8mks)
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Q27.(a). Differentiate between Privatization and Nationalization (4mks)
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(b). Give and explain any
(i). Four merits of nationalization (8mks)
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(ii). Four demerits of nationalization (8mks)
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Q28. a). Differentiate between advertising appeal and advertising media (4mks)
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(b). Give and explain any four factors considered when choosing advertising media
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(c). Point out any four challenges faced by advertising companies in South Sudan (8mks).
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