Mock papers

PREPARED BY I.MUSARA 0774 683 394

Paper 2 – Set 1
Commerce Examinations
Section A [Answer all questions]
1. a) Giving an example, what is meant by a capital good. [2]
b) Explain the need for production. [4]
2. a) State any one consumer right. [1]
b) Explain the importance of public sector entities. [4]
3. a) Distinguish between the private sector and the public sector. [4]
b) Identify any two internal sources of finance. [2]
c) Explain the features of unincorporated businesses. [4]
4. The information below shows trade figures for country X.
Exported tobacco $150 000
Imported insurance services $200 000
Exported textbooks $300 000
Imported banking services $ 50 000
Imported wheat $120 000
Exported insurance services $ 60 000
Calculate:
i. Visible trade balance. [3]
ii. Invisible trade balance. [3]
iii. Balance of payment. [3]
5. a) State the reasons for the construction of toll gates in your country.[2]
b) Outline the role of tobacco auction floors. [4]
6. a) Identify any two causes of inflation. [2]
b) Give any two ways people can use to manage personal finance. [2]

Section B[ Answer any three questions]

7. a) Why is production important? [10]
b) Distinguish between the current account and the savings account.[10]
8. Discuss the importance of multinational companies to host countries. [20]
9. a) Describe the functions of the Reserve Bank of Zimbabwe. [10]
b) Distinguish assurance from insurance. [10]
10. a) Outline factors that determine warehouse location. [10]
b) State and explain any five features of money. [10]
11. a) Examine factors to consider when choosing a distribution channel.[10]
b) Explain the difference between mass and niche marketing. [10]

Mock marking schemes

Section A [Answer all questions]

1. a) Products used to create supply e.g. grinding meal. [2]
b)
 Create employment. [1]
 Stimulate economic growth. [1]
 Utilise idle resources. [1]
 Increase gross domestic product. [1]
 Encourage specialization. [1]
 Correct balance of payment. [1]
 To ensure socio-economic disparities. [2]
 Improve the standards of living of citizens. [1]
 Develop infrastructure. [1]

2. a) Right to choose. Consumers should have a wide range of goods and services on the
market. [2]
b)
 Create employment to local citizens and foreigners. [1]
 Offer better quality goods and services. [2]
 Provide a source of income to the government. [1]
 Prevent the emergency of monopolies. [1]
 Ensure efficient allocation of resources. [1]
 Offer affordable goods and services. [1]
 Ensure equality in the sharing of resource. [1]

3. a) Private sector enterprises are owned and controlled by the private sector e.g sole trader
business whilst public sector enterprises are owned and controlled by the government e.g.
National Railways of Zimbabwe.
[4]
b) – sale of assets. [1]
- retained profits. [1]
- Funds from relatives and friends. [1]
c)
 Professionally managed by directors. [1]
 There is perpetual existence. [1]
 Comply with government rules and regulations. [1]
 Have separate legal existence. [1]
  Have limited liability. [1]
 Requires documents such as articles of association and memorandum of
association. [2]

4.
i) Visible trade = Visible exports – Visible imports
$ [150 + 300] - $ [120]
$ 450 - $120
$330 favourable. [2]

ii) Invisible trade = Invisible exports – Invisible imports

= $60 – [$200 + $50]
= $60 - $250
= $190 adverse. [2]

iii) Balance of payment = Total exports – Total imports

= $(150 + 300 + 60) - $(200 + 120 + 50)
= $510 - $370
= $140 favourable. [2]

5. a) – raise funds for road construction. [1]

- raise funds for repair and maintenance of roads. [1]
b)
 Storage of tobacco. [1]
 Grading of tobacco. [1]
 Packaging of tobacco. [1]
 Maturing of tobacco. [1]

6. a) – increase in cost of raw materials. [1]

- Decrease in exchange rate. [1]
- Too much notes and coins in a country. [1]

b)
 Depositing funds/money in savings account. [1]
 Open pension fund account. [1]
 Opening a fixed deposit account. [1]
 Joining rounds (mukando). [1]

Section B
7. a)
 Create employment. [1]
 Increase export earnings. [1]
 To widen markets. [1]
  Satisfy consumer needs and wants. [1]
 Protect local industries. [1]
 To control unfavourable balance of payment. [1]
 Improve countries technology. [1]
 Increase gross domestic product. [1]
 Provide raw materials to other countries or industries. [1]
 To reduce socio-economic disparities/inequalities. [2]
 To stabilize local currency. [1]
 Encourage specialization. [1]
 Reduce dependence on foreign countries. [1]

b)
Current Account Savings Account
 Interest rate is relatively low .  High interest rate. [2]
 Transactions are numerous.  Transactions are small in nature. [2]
 Investment is for a short period.  Investment is for a longer period. [2]
 Provides cheque book and deposit  Provides a pass book or bank book.
book . [2]

8. Merits /Advantages
 Improves technology through research and development. [2]
 Contribute to economic growth. [1]
 Help in product development through research and development. [2]
 Create employment. [1]
 Assist in changing the social and economic status of the host country. [2]
 Improves the standard of living of local citizens. [1]
 Leads to infrastructure development. [1]
 Bring foreign currency through exportation. [1]
 Improves the country’s balance of payment. [1]
 Assist in the removal of trade barriers. [1]
However, Demerits/disadvantages
 Can lead to cultural distortion. [1]
 Promote the shortage of foreign currency. [1]
 Exploit local labour. [1]
 Cause pollution e.g. water pollution. [1]
 Result in closure of small firms. [1]
 Lead to exorbitant prices. [1]
 Lead to over-exploitation of natural resources. [1]

9. a)
 Sells treasury bills on behalf of the government. [1]
  Keeps government department accounts. [1]
 Sets the official interest rate. [1]
 Regulates and supervises the banking industry. [1]
 Determines interest rates. [1]
 Implements monetary policies. [1]
 Acts as the tender of last resort to banking institutions. [1]
 Acts as the banker and advisor of the government. [1]
 Is a custodian of gold and other foreign assets. [1]
 Issues bank notes and coins. [1]
 Formalities and implements monetary policies. [2]
b) Distinguish between insurance and assurance
Insurance Assurance
 Covers risks uncertain to happen e.g.  Covers risks that are bound to happen
theft. e.g. death. [4]
 Probability of occurrence is less.  Probability of occurrence is high. [2]
 Insurance can be varied for example  Assurance is only limited to human
motor vehicle and marine insurance. life. [2]
 Aims to minimize financial loss.  Aims to cover against life. [2]
 Is a short term benefit .  Is a long term benefit e.g. endowment
policy. [2]
 Premium is fixed as per nature of risk  Amount of premium is linked to the
involved. age of assured. [2]
 The tenure is less.  The tenure is longer. [2]
 Restores to the previous position.  life cannot be restored. [2]


10. a)
 Proximity to transport networks: a warehouse should be situated very close to
all transport networks e.g. rail, air, pipeline and sea. [2]
 Highly secured environment: a warehouse should be sited in a place that is free
from risks such as theft. [2]
 Cost of building, acquisition and renting: the costs to build purchase or rent a
warehouse should be reasonable and affordable. [2]
 Closeness to distribution centres : distribution centres ha to be near/very close
to the warehouse. [2]
 Nearness to the market: sitting a warehouse very close to the market reduces the
cost of production in terms of transport to the market. [2]
 Proximity to suppliers: a warehouse should be located close to suppliers of
components to be used in the manufacture of a product or service. [2]

b)
 Scarcity. Money should be limited in the process of circulation oversupply of
notes and coins triggers inflation. [2]
  Uniformity Denominations of the same value should be identical/ be the same in
all features e.g. colour and size. [2]
 Recognizable. In all circumstances a particular denomination should be easily
identified. [2]
 Portable. Notes and coins should be easily carried around. [2]
 Divisible. Notes and coins should be divided into various denominations of
different value e.g. 10 cents and 20 cents coins. [2]

11.
a) Competition. Competitive products need to be marketed through an indirect channel
to ensure that products are displayed with other competitors’ products in the market.
[2]
Product characteristics. These include product design, perishability, service
requirements and standardization. [2]
 Perishable products need a direct distribution channel to avoid perishability
e.g. bread and vegetables. [3]
 Industrial products need a direct distribution channel from producer to the
user. [2]
 Standardised products need an indirect distribution channel. [2]
 Non-standardised products e.g. cake made to consumer specifications require
a direct channel e.g. producer to consumer. [2]
Company characteristics.
 These include financial resources, sizes, product mix, market, and marketing
personnel experience. [2]
 They influence the choice of distribution channel.
 Example if the business is large, it might opt to eliminate the wholesaler
Consumer characteristics. [2]
 These are determined by the location, buying habits, capacity, tastes, number
and geographical location. [2]

b) Mass marketing is a marketing strategy or approach in which an enterprise focuses all

its marketing efforts to the entire market whereas niche marketing is an approach in
which an enterprise focuses its marketing efforts to specified small segments.
[4]

Paper 2- Set 2
1. a) Define privatisation. [2]
b) Identify any two internal business environment factors. [2]
c) How can a supplier affect business operations? [4]
2. a) State any two forms of specialisation. [2]
b) Distinguish partnership business from a sole trader business. [4]
 3. a) Suggest reasons for privatisation in your country. [2]
b) Define barter trade. [2]
4. a) State two benefits of a mail order firms to customers. [2]
b) Identify any one document used in international trade. [1]
c) Give two details provided on a cheque. [2]
5. a) Identify ways consumers can protect themselves. [2]
b) Outline the functions of a stock jobber. [4]
6. a) On a particular day a trader converted $ 30 000 to rands. If the exchange
rate was $1 : 0.30 Rand , how much the trader received. [2]
b) Explain the benefits of business ethics in a business. [4]
7. a) Identify the functions of actuaries in insurance. [2]
b) Explain two factors that are considered when locating a warehouse.[4]

Section B [Answer any three questions]

8. a) Explain reasons for mineral exploitation in Zimbabwe. [10]
b) Describe factors considered when locating a warehouse. [10]
9. a) Explain the importance of marketing to a business. [10]
b) Discuss the benefits of internet marketing to a business. [10]
10. a) Describe the characteristics of a retail cooperative societies .[10]
b) Explain reasons for consumer protection. [10]
11. a) Explain the benefits of operating a private limited company. [10]
b) Explain the functions of the Zimbabwe Stock Exchange. [10]
12. a) Summarise on the functions of a bonded warehouse. [10]
b) Write note on the renewal notice and a proposal form. [10]
13. a) Explain the advantages of public sector entities. [10]
b) Outline the contents of the following:
i. Articles of Association,
ii. Memorandum of Association. [10]

Marking scheme
1 a. Refers to the transfer of ownership and control from the public sector to the private
sector . [2]
b)
 Supplier. [1]

 Customer/clients. [1]
  Resources e.g. finance. [1]

 Workers / employees. [1]

 Owners /shareholders. [1]

c) Positive impact
 Provide quality raw materials for quality manufacture. [1]
 Supply components in time to meet demand. [1]
 Offer discounts to a business thus economies of scale. [1]
However,
 Suppliers can hike prices of components. [1]
 They can cut down discounts. [1]
 Suppliers can provide poor quality components. [1]
 They can delay supply of raw materials thus failure to meet demand. [1]
2
 Profession. [1]
 Country. [1]
 Region. [1]
 Firm. [1]

b) A sole trader business is owned and controlled by a single entrepreneur whilst a

partnership business is owned and controlled by many entrepreneurs called partners . [2]
Another difference is that a sole trader business has quick decision making since a sole
owner has a final decision whereas a partnership business has slow decision making as a result of
consultation. [2]
1. a)
 Empower local citizens. [1]
 Improve the quality of life of local citizens. [1]
 Ensure fair and equitable distribution of the means of production. [1]
Indigenisation is the transfer of ownership of and control of the means of production to the
local citizen’s e.g land. [2]
b) Is the exchange of goods and services without the physical or electronic transfer of funds.
[2]

4. a)
 Clients buy goods in the comfort of their residence/homes. [1]
 There is freedom of returning goods. [1]
 Credit facilities can be guaranteed to clients. [1]
 Provides flexible payment options. [1]
 clients can make payments using credit card and debit card [1]
 Involves the purchase of goods via post. [1]
b) Bill of lading. [1]
c)
 Date. [1]
 Payees name. [1]
 Amount in words and figures. [1]
 Drawer’s signature. [1]
 Branch code. [1]
 Account number. [1]
 Cheque number. [1]

5 a)
 Prepare personal budget. [1]
 Conduct window shopping. [1]
 Check and ask for receipts. [1]

b)
 Buy shares at a low price. [1]
 Sell shares. [1]
 Specialise in a narrow range of securities. [1]
 Maintains an inventory of shares. [1]

6a) money after exchange =$30 000 × 0.30

=9 000 Rands. [2]

b)
 Build Goodwill/reputation. [1]
 Maintains goodwill. [1]
 Results in customer loyalty. [1]
 Prevent loss. [1]
 Result in large capital investment. [1]

7.
 Assess risks. [1]
 Review statistical information. [1]
 Prepare reports for management. [1]
 Recommend premium rates. [1]
 Fix fair premiums. [1]
 Calculate probabilities off risks. [1]
 Collect data e.g. on death rates, sickness and disability rates. [2]
  Predict future insurance trends. [1]

b) Highly secured environment .A warehouse needs to be situated in an environment that is

safe and free from acts such as theft and burglary. [2]
Also, near transport network .Many means of transportation has to be nearby to make
transportation cheap and easier. [2]

Essay questions
8 a)
 To create employment. [1]
 To boost the industrial sector. [1]
 To revive industries. [1]
 To utilise the means of production. [1]
 To provide raw materials to other sectors of the economy. [1]
 To increase export earnings/increase foreign currency. [1]
 In order to ensure specialisation. [1]
 To increase Gross Domestic Product. [1]
 To widen the nation's mineral market. [1]
 To reduce socio -economic disparities. [2]
 To improve technology through research and development. [2]
 To stimulate economic development. [1]
b)
 Availability of water. [1]
 Nearness to suppliers. [1]
 Availability of energy/power. [1]
 Security of the environment. [1]
 Distribution centres. [1]
 Cost of building. [1]
 Cost of acquisition or renting. [1]
 Proximity to transport networks. [1]
 Government policies. [1]
 Type and quantity of goods to be warehoused. [1]

9a)
 Increase sales. [1]
 To increase profits. [1]
 To maintain sales. [1]
 To maintain profits. [1]
 To launch new products/services. [1]
 To fight competition. [1]
 To remind clients. [1]
 To widen the market. [1]
 To boost demand of a good or service. [1]
 Inform clients /customers. [1]
b)
 cheap to advertise. [1]
 Allows speedy transmission of business information. [1]
 allows speedy manufacture of goods and delivery of services [1]
 Reduces human errors. [1]
 Allows the receiving of payment. [1]
 Allows a trader to acquire goods and services in the comfort of home or office. [1]
 Widens clientele base. [1]
 It is reliable. [1]
 Reaches many markets e.g regional, local and international. [1]
 Allows easy monitoring of business transactions and activities. [1]
 Helps in fleet management. [1]
However,
 It is affected by barriers eg power cuts. [1]
 To purchase advanced machinery and technogical tools. [1]
 Requires constant upgrading, repair and maintenance. [1]
 Attracts competition. [1]

10 a)
 Is a large scale retail outlet. [1]
 Formed by consumers who come together. [1]
 Sell products to members and non-members of the society they operate in. [1]
 Members who are customers are given credit facilities. [1]
 Members who wish to join should purchase a share. [1]
 There is democratic control. [1]
 Members elect a management committee. [1]
 Willing to start retail cooperative society finance for it. [1]
 It enjoys economies of scale. [1]
 Purchase goods in bulk. [1]
 Goods purchased can be re-branded and own brands labelled. [1]
 Provides training to members internally. [1]
 Personal property of members is not liable for payment of amounts due. [1]

b)
 Preventing hoarding of goods so as to prevent price hiking. [2]
 To avoid impulse buying. [1]
 To exaggeration by traders. [1]
 To avoid false price cutting. [1]
 To ensure fair and lawful repossession of goods. [1]
 To ensure fair weight and measures for consumers. [2]
 Ensure completeness of consumer information. [1]
 To prevent the purchase of fake items. [1]
 To guard consumers against misleading advisements [1]
 Protect against immoral and indecent advertising. [1]
 Guard consumers against unfair and market practices. [2]
 To ensure a healthy and clean environment for consumers. [2]
 To guard against overspending. [1]

11a)
 Enjoys professional management e.g from directors. [1]
 Benefits from large capital investment from shareholders. [1]
 There is continued existence. [1]
 Enjoy limited liability. [1]
 Sharing of return is amount 2-50 shareholders. [1]
 Confirmation to government rules and regulations ensure safe business operation.[1]
 Personal assets are not attached for the settlement of liabilities. [1]
 Make contracts. [1]
 Control is by board of directors. [1]
 He can be a director and shareholder at the same time. [1]

b)
 Raise revenue for the government. [1]
 Measures the economic wellbeing of a country. [1]
 List companies on the Stock Exchange. [1]
 Delist companies on the stock exchange. [1]
 Quotes the prices of shares. [1]
 Educates members or the public. [1]
 protects investors by closely examining companies before allowing a quotation solve
conflicts and allows investors to change their shares into cash. [2]
 Protects investors by insisting on the highest standards of behaviour from members.[2]
12 a)
 Stores ductile goods. [1]
 Allows goods to be sold whilst in the warehouse. [1]
 Allows the removal of goods in small quantities. [1]
 Facilitates grading. [1]
 Allows packaging. [1]
 Facilitates tinning. [1]
 Facilitates bottling. [1]
 Allows goods to mature. [1]
 Facilitate entrepot trade. [1]
 Ensures that goods stored are not manufactured. [1]
b) Proposal form
 Applies for insurance cover. [1]
 Contains questions. [1]
 These are answered in utmost good faith. [1]
 Shows the proposer's name. [1]
 Shows proposer's profession and occupation. [1]
 A detail proposer's business, previous and present insurance details, sum insured,
signature, place of residence and date the proposal was signed. [5]
Renewal notice
 Informs clients to renew their insurance contracts or policies. [1]
 Failure to renew results in the termination of the contract or policy. [1]
 States the stipulated time frame to renew the contract. [1]
13 a)
 Cheap goods and services. [1]
 Quality goods and services. [1]
 Reliable goods and services. [1]
 Employment creation. [1]
 Improvement in standards of living. [1]
 Provision of public goods. [1]
 Efficient utilisation of resources. [1]
 Equality in the sharing of goods and services. [1]
 Infrastructure development. [1]
 Protection of local citizens interest. [1]
 Accelerated economic development. [1]
 Prevention of private monopolies effects e.g high prices. [1]

b)
 Company name. [1]
 Company address. [1]
 Company field of activity. [1]
 Rights, duties and powers of directors. [3]
 Method of electing directors. [1]
 Number of internal auditors. [1]
 Appointment and remuneration of auditors. [2]
 Voting rights of shareholders. [1]
 Procedure of calling annual general meetings. [1]
 Nominal value and number of shares. [2]
 Share capital. [1]
 Dividends and reserves. [2]
 Borrowing powers of directors and managers. [1]
  Forfeiture of shares. [1]

PAPER 1 EXAMINATION 1 YEAR 2025

MULTIPLE CHOICE EXAMINATION TIME :
END OF YEAR EXAMINATION
PREPARED BY I.MUSARA 0774 683 394

1. Which service is not part of tertiary production?

A. Banking B. Distribution
C. Manufacturing D. Teaching
2. Which is an advantage of specialization?
A. Leads to employment B. Results in labour mobility
C. Retraining workers in cheap D. Workers become skilled
3. Which is not value addition?
A. Baking cakes from flour B. Making steel from iron ore
C. Packaging diamonds in metal boxes D. Selling live cattle to abattoirs
4. Which external factor affects business environment?
A. Customers B. Politics
C. Suppliers D. Workers
5. Beneficiation is the ………………………………………………………………………………
A. Amount by which the value of a product is increased
B. Difference between cost of production and selling price
C. Natural intrinsic value in the extracted raw materials
D Process which removes impurities from mineral ores
6. Which factor of production mobilises other factors of production?
A. Land B. Labour
C. Enterprise D. Capital
 7. Retailing is ………………………………………………………………………………………….
A. Offering goods to wholesalers. B. Providing raw materials to producers.
C. Selling directly to consumers. D. Selling goods in small quantities.
8. Quotas ……………………………………………………………………………………..
A. Discourage domestic consumption. B. Increase inflow of foreign currency.
C. Limit quantities of goods imported. D. Make imports more expensive.
9. Balance of trade is equal to …………………………………………………………………….
A. Goods exported minus goods imported. B. Goods exported minus services
exported.
C. Service exported minus services imported. D. Total exports minus total imports.
10. The aim of forming trading blocs is to ……………………………………………………………
A. Challenge integration of global economy. B. Discriminate against non- member
countries.
C. Promote free trade among member states D. Encourage global free trade by nations
11. The similarity between home trade and foreign trade is that ………………………………….
A. Goods in transit are insured. B. Same language is involved.
C. Foreign currency is used. D. Same measurements are used.
12. Consumers need protection against the following except
A. False price cutting. B. Buying tested products.
C. Incorrect labeling of goods. D. Unfair repossession of goods.
13. Which board tests products for quality?
A. Advertising Media Association of Zimbabwe.
B. Consumer council of Zimbabwe.
C. Standards Association of Zimbabwe.
D. Small Claims Court of Zimbabwe.
14. Which is a feature of business in the private sector?
A. Clearly identifiable owners. B. No profit making motive.
C. Owned by the government D. Set- up to provide a service
15. A partnership is formed by …………………………………………………………………………….
A. At least one person. B. Two and no maximum shareholders.
C. Two to fifty shareholders. D. Two to twenty individuals.
16. Which characteristic applies to both private limited company and public limited
company?
A. Owners are called shareholders. B. Share transfer is unrestricted.
C. Shares sold on stock exchange. D. Start trading after incorporation.
17. What is privatization?
A. Converting a partnership into a public corporation.
B. Converting a private limited company into a public limited company.
C. Selling a business to government by an individual.
D. Converting public sector business to private sector business.
18. An entrepreneur is ………………………………………………………………………………………
A. A book- keeper who maintains accounts. B. A salesperson who markets goods.
C. One who takes financial risks. D. Someone who calculates premiums.
19. Planning as management function deals with …………………………………………………….
A. Bringing workers together B. Ensuring that workers do different jobs
C. Finding out whether aims are met D. Setting goals for the business
20. Which function of money is used to compare goods?
A. Measure of value B. Medium of exchange
C. Standard for future payments D. Store of value
21. Return on capital employed is given by the formula
A × 100 B × 100

C × 100 D ×100

Use the information below to answer questions 22 and 23.

A trader bought 200 crates of mineral water at $10 a crate from a wholesaler under the
following terms:
- Trade discount 25%
- Cash discount 5% 15 days

22. How much trade discount was offered to the trade?

A. $100 B. $400
C. $500 D. $2 000
23. How much did the trader pay if account was settled within 10 days?
A. $1 900 B. $1 600
C. $1 500 D. $1 425
24. Which statement is true about the principle of utmost good faith?
A. The insured must not make profit B. All relevant information must be
disclosed
C. The insured must suffer loss D. The risk must be insurable
25. The calculation of insurance premiums is done by the ………………..
A. Actuaries. B. Assessors.
C. Brokers. D. Underwriters.

26. Non-payment by an importer due to lack of foreign currency is covered by …….

A. Consequential loss insurance. B. Export credit guarantee corporation.
C. Fidelity guarantee insurance. D. Freight insurance.

27.Which of the following is a part of tertiary production?

A. Processing B. Distribution
C. Assembling D. Construction

28. Which activity is not part of e-insurance?

A. Buying insurance cover on-line B. Contacting an argent to discuss
insurance
C. Downloading a policy document D. Paying monthly premiums on-line

29. Which telecommunication service allows contact when trader is out of office?
A. Cellphone B. Datel
C. Post restante D. Telephone

30. Effective communication does not involve a ……………………………

A. Feedback B. License
C. Medium D. Transmitter
31. A charter party is a ………………………
A. Contract of hire. B. Document of title.
C. Proof of delivery. D. Receipt of freight.
32. Which is not considered when choosing a method of communication?
A. Cost B. Distance
C. Reliability D. Urgency
33. What is the importance of transport to a trader?
A. goods are kept safety before sale B. Goods are moved to the markets
C. Tastes and demands of customers are known D. Trader is covered against loss
34. What is the disadvantage of using containers in transport?
A Containers are sealed in transport B Container terminals are expensive to
build
C Packaging costs are reduced D Small loads require group age

35. Which is not a function of a seaport authority?

A Providing refueling facilities B Maintaining dry dock
C Dredging the harbor D Collecting customs duty

36. In which agreement does an exporter hire a tramp together with its crew?
A. Demise charter B. Bill of lading
C. Time charter D. Voyage charter

37. Where does a communal farmer store grain?

A. Granary B. Grain silo
C. metal container D. Storeroom

38. Marketing a product to benefit a few customers is ----------------

A. Market researching. B. Market segmentation.
C. Mass marketing. D. Niche marketing .

39. The process of dividing a market into groups is ……………..

A. Market research B. Market segmentation
C. Mass marketing D. Niche marketing
40. The marketing mix variable that brings revenue is……………
A. Price. B. Promotion
C. Product D. People

PAPER 2 EXAMINATION
PREPARED BY I.MUSARA 0774 683 394
 SECTION A[Answer all questions]
1. (a) Identify any three tangible goods. [3]
Given below are trading figures for country X
$ Million
Goods sold to foreigners 300
Goods bought from other countries 600
Payment for use of foreign transport 150
Money received for insuring foreign businesses 200
b) Calculate country X’s balance of payment. [4]

2. a) Explain any two consumer rights. [4]

b) Explain the meaning of mass marketing. [4]

3. a) Outline the contents of the articles of association. [4]

b) Suggest reasons for protection of intellectual property. [3]
4. a) State any three functions of the stock of exchange. [3]
b) Explain ways of managing personal finance. [4]

5. a) Give any two examples of insurable risks. [2]

b) Describe the principle of indemnity. [4]

6. a) List any two recent communication platforms. [2]

b) Distinguish between visible and invisible trade. [4]
Section B[Answer any three questions]
7. a) Explain the meaning of production. [10]
b) Discuss the importance of indigenization in your country. [10]
8. a) Give an explanation for the elimination of a wholesaler in a chain of distribution.[10]
b) Describe the aims of protectionism. [10]
9. State and explain any five consumer rights. [20]
10. a) How can a market for clothes be segmented? [10]
b) Describe the functions of the Zimbabwe Chamber of Commerce. [10]
11. a) Describe the services rendered by Discount Houses. [10]
b) Explain the importance of a business plan. [10]
12. Describe any four insurance principles. [20]
13. Outline the advantages and disadvantages of Information Communication Technology in
Communication. [20]

PAPER 2 EXAMINATION 2
PREPARED BY I.MUSARA 0774 683 394

Section A [Answer all questions]

1. a) State the rewards of the following:
i) Enterprise. [1]
ii) Land. [1]
b) State any three trade restrictions. [3]
c) Identify any three primary warehouses. [2]

2. a) Outline the features of virtual markets. [3]

b) Explain the importance of the Weights and Measurement Act to consumers. [3]

3. a) Define intellectual property. [2]

b) Explain the importance of personal income management. [4]

4. a) Identify any four external sources of finance. [4]

b) Distinguish between direct and indirect tax. [4]

5. a) Outline the features of insurable risks. [3]

b) How important is the National Social Security to workers. [4]

6. a) Define retailing. [2]

b) Explain the importance of communication in a business. [4]

Section B[Answer any three questions]

7. a) Outline the benefits of Facebook in business communication. [10]
b) Explain factors that influence the choice of communication media. [10]
8. a) Explain the term pooling risks. [10]
b) Discuss the benefits of e-insurance to a business and a client. [10]
9. a) State and explain the functions of money. [10]
 b) Describe the functions of the Reserve Bank. [10]
10. a) Describe the features of a partnership business. [10]
b) Explain the role of business ethics to the society. [10]
11. a) Explain the reasons for consumer protection. [10]
b) Discuss the importance of online markets. [10]
12. Distinguish between home trade and foreign trade. [10]
13. a) Explain the meaning of commerce. [10]
b) Discuss the impact of the external environment to a business. [10]

PREPARED BY I.MUSARA 0774 683 394

CONSTRUCTIVE COMMENTS ARE WELCOME