Cambridge O Level

* 5 1 2 7 0 5 8 2 7 5 *

COMMERCE 7100/23
Paper 2 Written May/June 2022

2 hours

You must answer on the question paper.

No additional materials are needed.

INSTRUCTIONS
● Answer all questions.
● Use a black or dark blue pen.
● Write your name, centre number and candidate number in the boxes at the top of the page.
● Write your answer to each question in the space provided.
● Do not use an erasable pen or correction fluid.
● Do not write on any bar codes.
● You may use a calculator.

INFORMATION
● The total mark for this paper is 80.
● The number of marks for each question or part question is shown in brackets [ ].

This document has 16 pages. Any blank pages are indicated.

DC (RW/CGW) 303880/3
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Answer any four questions.

1 Fig. 1 shows an extract from an article about people working in the fishing industry.

Many people work in the fishing industry or in jobs connected

with it. Abdul works as a fisherman for a fishing company. Phil
has a job in the fish processing factory. Asram owns a wholesale
company which buys canned fish from the fish processing factory.
Silvia is the manager of a small shop which sells fish. Brian delivers
fish from the factory to the shop. Rita works as a clerk in the bank
where the fishing company has its bank account.

Fig. 1

Use Fig. 1 to help you to answer the following questions:

(a) (i) Identify a primary occupation given in Fig. 1. [1]

(ii) Identify a tertiary occupation given in Fig. 1. [1]

(b) Explain the differences between primary and secondary occupations. [3]

(c) Should the fish processing factory sell through Asram’s wholesale company or should it sell
directly to shops? Give reasons for your recommendation. [4]

(d) Silvia is planning a new advertising campaign for the shop.

(i) Would posters and leaflets be more effective than television?

Give reasons for your opinion. [3]
(ii) State two methods of sales promotion that Silvia might also use. [2]

(e) How might the bank that Rita works for assist the fishing company to run its business? [6]

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2 Several types of retailers are located in a shopping centre, as shown in Fig. 2.

SHOPPING CENTRE

UNIT MULTIPLES SUPERMARKET DEPARTMENT HYPERMARKET

RETAILERS STORE

Fig. 2

Use Fig. 2 to help you to answer the following questions:

(a) Explain what is meant by the term shopping centre. [2]

(b) Explain how a hypermarket differs from a supermarket. [4]

(c) State two advantages to the consumer of each of the following:

(i) department stores. [2]

(ii) multiple chains. [2]

(d) Is it better for unit retailers to be located in a shopping centre or to be located along a busy
street in the Central Business District (CBD)? Give reasons for your answer. [4]

(e) Does the growth of e-commerce present a threat or an opportunity to the shops in the
shopping centre? Discuss this statement. Give reasons for your opinion. [6]

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3 The following headlines have appeared in a newspaper. For

Examiner's
Use
Rise in popularity of the small retailer - many small shops opening

Supermarkets compete on price - consumers benefit

Fig. 2
Use the newspaper headlines in Fig. 2 to help you to answer the following questions.

(a) Explain two reasons why many people start small retail businesses.

Reason 1

Reason 2

[4]

(b) Explain why small shops are popular with consumers.

[4]

(c) Do consumers benefit from supermarkets competing on price? Give reasons for your
opinion.

[3]

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(d) Mrs Ming has bought some cooking oil from her local supermarket. The cooking oil For
smells bad. What actions could she take? Examiner's
Use

[3]

(e) A supermarket wishes to increase its sales by using the following options:

Option 1 Selling local produce

Option 2 Offering own brands
Option 3 Giving loyalty cards to customers
Option 4 Providing an in-store bakery

Which two of these options would be the best methods of increasing sales? Give
reasons for your choices.

[6]

[Total: 20]

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3 Munira is a sole trader. She owns a pizza restaurant and accepts payments by credit card. She
frequently advertises special offers to attract customers. She is considering becoming a franchisee
of a well-known pizza company.

(a) (i) State one feature of a sole trader.

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..................................................................................................................................... [1]

(ii) Identify one disadvantage to Munira of advertising special offers.

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..................................................................................................................................... [1]

(b) State two reasons why businesses accept payments by credit card.

1 ................................................................................................................................................

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2 ................................................................................................................................................

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[2]

(c) Do you think Munira should buy her supplies from a cash-and-carry warehouse? Give reasons
for your answer.

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(d) Explain two advantages to Munira if she decides to become a franchisee of a well-known
pizza company.

1 ................................................................................................................................................

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2 ................................................................................................................................................

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[4]

(e) Discuss whether Munira should use local newspapers or leaflets to advertise her pizza
restaurant. Which would you recommend? Give reasons for your answer.

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............................................................................................................................................. [8]

[Total: 19]
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