WISEBRAIN ACADEMY
HIGH SCHOOL PAPER
Commerce Paper 1 Term
two 2025
Form 3 paper 2
Hours
Name:_____________________________________________
_____
1. What is the primary goal of production?
A) To create goods and services
B) To distribute goods and services
C) To consume goods and services
D) To store goods and services
2. Which factor of production is considered a
human resource?
A) Land
B) Labor
C) Capital
D) Entrepreneurship
3. What is quality control in production?
A) Ensuring products meet standards
B) Reducing production costs
C) Increasing production levels
D) Improving product design
4. What is the role of technology in production?
A) To reduce labor costs
B) To increase production efficiency
C) To improve product quality
D) All of the above
5. What is production planning?
A) Determining production levels
B) Managing inventory levels
C) Scheduling production
D) All of the above
6. What is the difference between a product and a
service?
A) A product is tangible, while a service is
intangible
B) A product is intangible, while a service is
tangible
C) A product is durable, while a service is non-
durable
D) A product is non-durable, while a service is
durable
7. What is the purpose of production management?
A) To plan, organize, and control production
B) To buy and sell goods
C) To transport goods
D) To store goods
8. What are the types of production?
A) Primary, Secondary, Tertiary
B) Manufacturing, Construction, Service
C) Large-scale, Small-scale, Cottage
D) All of the above
9. What is retail trade?
A) Buying and selling goods in large quantities
B) Buying and selling goods to consumers
C) Transporting goods
D) Storing goods
10. What are the types of retail trade?
A) Department stores, Specialty stores,
Convenience stores
B) Wholesale trade, Retail trade, E-commerce
C) Online retail, Offline retail
D) All of the above
11. What is the role of a retailer?
A) To buy and sell goods
B) To provide customer service
C) To manage inventory
D) All of the above
12. What are the benefits of retail trade?
A) Convenience, Variety, Competitive prices
B) High prices, Limited selection
C) Poor customer service
D) None of the above
13. What is e-commerce in retail trade?
A) Buying and selling goods online
B) Buying and selling goods in physical stores
C) Transporting goods
D) Storing goods
14. What is the role of technology in retail trade?
A) To improve customer service
B) To manage inventory
C) To increase sales
D) All of the above
15. What is inventory management in retail trade?
A) Managing stock levels
B) Managing customer relationships
C) Managing supply chains
D) All of the above
16. What are the challenges faced by retailers?
A) Competition, Changing consumer behavior
B) High prices, Limited selection
C) Poor customer service
D) None of the above
17. What is consumer credit?
A) Borrowing money to purchase goods and
services
B) Saving money for future purchases
C) Investing in stocks and bonds
D) None of the above
18. What are the types of consumer credit?
A) Credit cards, Loans, Hire purchase
B) Savings accounts, Investments
C) Insurance policies
D) All of the above
19. What are the benefits of consumer credit?
A) Convenience, Flexibility, Rewards
B) High interest rates, Debt
C) Limited purchasing power
D) None of the above
20. What are the risks associated with consumer
credit?
A) High interest rates, Debt
B) Limited purchasing power
C) Poor credit scores
D) All of the above
21. What is wholesale trade?
A) Buying and selling goods in large quantities
B) Buying and selling goods to consumers
C) Transporting goods
D) Storing goods
22. What are the types of wholesalers?
A) General wholesalers, Specialty wholesalers
B) Retailers, Wholesalers
C) Manufacturers, Wholesalers
D) All of the above
23. What is the role of a wholesaler?
A) To buy and sell goods in bulk
B) To provide customer service
C) To manage inventory
D) All of the above
24. What are the benefits of wholesale trade?
A) Lower prices, Bulk purchases
B) Higher prices, Limited selection
C) Poor customer service
D) None of the above
25. What is the difference between a wholesaler
and a retailer?
A) A wholesaler sells to consumers, while a retailer
sells to businesses
B) A wholesaler sells to businesses, while a retailer
sells to consumers
C) A wholesaler sells in small quantities, while a
retailer sells in bulk
D) A wholesaler sells in bulk, while a retailer sells in
small quantities
26. What are the benefits of using a wholesaler?
A) Lower prices, Bulk purchases
B) Higher prices, Limited selection
C) Poor customer service
D) None of the above
27. What is the role of a wholesaler in managing
inventory?
A) To buy and sell goods in bulk
B) To provide customer service
C) To manage stock levels
D) All of the above
28. What are the types of products that
wholesalers typically sell?
A) Consumer goods
B) Industrial goods
C) Both A and B
D) Neither A nor B
29. What is the significance of wholesalers in the
supply chain?
A) They provide a link between manufacturers and
retailers
B) They provide a link between retailers and
consumers
C) They manage inventory levels
D) All of the above
30. How do wholesalers benefit retailers?
A) By providing goods at lower prices
B) By providing goods in bulk
C) By managing inventory levels
D) All of the above
31. What is a bill of lading?
A) A document that confirms shipment
B) A document that confirms payment
C) A document that confirms ownership
D) None of the above
32. What is an invoice?
A) A document that requests payment
B) A document that confirms shipment
C) A document that confirms ownership
D) None of the above
33. What is a receipt?
A) A document that confirms payment
B) A document that confirms shipment
C) A document that confirms ownership
D) None of the above
34. What is a proforma invoice?
A) A document that confirms shipment
B) A document that requests payment
C) A preliminary invoice
D) None of the above
35. What is a commercial invoice?
A) A document that confirms shipment
B) A document that requests payment
C) A document that confirms ownership
D) A detailed invoice for customs
36. What is a certificate of origin?
A) A document that confirms the country of origin
B) A document that confirms shipment
C) A document that confirms payment
D) None of the above
37. What is a packing list?
A) A document that details the contents of a
shipment
B) A document that confirms shipment
C) A document that confirms payment
D) None of the above
38. What is the purpose of a bill of lading?
A) To confirm shipment
B) To request payment
C) To confirm ownership
D) None of the above
39. What is the difference between a commercial
invoice and a proforma invoice?
A) A commercial invoice is a preliminary invoice,
while a proforma invoice is a final invoice
B) A commercial invoice is a final invoice, while a
proforma invoice is a preliminary invoice
C) A commercial invoice is used for customs, while
a proforma invoice is used for payment
D) None of the above
40. What is the significance of documents of trade
in international trade?
A) They facilitate payment and shipment
B) They confirm ownership and country of origin
C) They provide a record of transactions
D) All of the above
