THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL CERTIFICATE OF SECONDARY EDUCATION EXAMINATION 061 COMMERCE (For Both School and Private Candidates) Time: 2:30 Hours Thursday, 09 th November 2017 p.m. Instructions 1. This paper consists of sections A, B and C with a total of ten (10) questions. 2. Answer all questions in sections A and B and two (2) questions from section C. 3. Calculators, cellular phones and any unauthorized materials are not allowed in the examination room. 4. Write your Examination Number on every page of your answer booklet(s).

SECTION A (20 Marks) Answer all questions in this section. 1. For each of the items (i) - (x), choose the correct answer from among the given alternatives and write its letter beside the item number in your answer booklet(s) provided. (i) Which of the following is not a major goal of planning in business? A To gain economic operation B To focus attention on objectives C To facilitate control D To maintain profits E To offset uncertainty and change (ii) Marine insurance policy which do not specify the subject matter insured is referred to as A time policy B cargo policy. C floating policy D mixed policy E voyage policy (iii) Which of the following is the disadvantage of mail order business? A There is limited range of goods B Middlemen can be eliminated C Trade is carried out 24 hours D Not necessary to maintain a big shop E No shop assistants are employed (iv) The traders who buy goods from abroad in their own name and sell them locally are called A import commission agents B import argents. C import merchants D import brokers E importers’ argents. (v) A certificate of incorporation is a document that A governs the relationship of the company with outsiders. B empowers the company to commence business activities. C gives a company a legal existence. D lays down rules and regulations of the internal organization of a company. E invites offer from the public for subscription of shares of a company. (vi) Which of the following is not the aim of marketing boards? A Finding a satisfactory market. B Stabilizing prices of agricultural products. C Ensuring a steady supply of the commodity all through. D Encouraging competition between marketing boards. E Assisting farmers with collection and storage of their produce.

(vii) The warehouses which are situated at terminals of railway, air ports and sea ports are known as A public warehouse. B bonded warehouse C wholesaler’s warehouse D manufacture’s warehouse. E private warehouse. (viii) A special crossing is a type of crossed cheque which consists of A two parallel lines with no words between them. B two parallel lines with words ‘and Company’ between them C two parallel lines with drawee’s name between them D two parallel lines with drawer’s name between them E two parallel lines with endorser’s name between them. (ix) An insurance principle which restored the insured to the same position after the event is known as A Insurable interest. B Utmost good faith. C Subrogation. D Contribution. E Indemnity. (x) What are the two main stages in production? A Direct production and indirect production. B Direct production and secondary production. C Commerce and industry. D Primary and secondary industries. E Trade and industry.

2. Match the items in Column A with the responses in Column B by writing the letter of the correct response beside the item number in the answer booklet provided. Column A Column B (i) The accounts in which the account holders are allowed to overdraw their accounts. A B Travellers cheques Dishonoured cheques (ii) The cheques issued by the banks in fixed denominations to a person who pays for them in advance. C Bank draft (iii) A cheque drawn on a bank and is more readily acceptable as a bank guarantees payments against it. D E Crossed cheques Credit transfer (iv) The cheques made payable on a later date in future. F Stale cheques (v) The situation in which the current account holders are allowed to overdraw their accounts. G Bank charges (vi) The payee signs the back of the cheque authorizing the drawee to pay the cheque to any one presenting it. H I Order cheques Post-dated cheques (vii) A cheque made payable to a specified person. J Bank overdraft (viii) A written order from an account holder to his bank to pay a specified sum of money to the person named therin or to bearer. K L Current accounts Savings accounts (ix) A single cheque prepared by the bank from instructions given by the account holder to pay the named people directly to their accounts. M N General endorsement A cheque (x) A cheque that is presented to the bank six months after the date on it. O Transfer of cheque.

SECTION B (40 Marks) Answer all questions in this section. 3. (a) Elaborate five disadvantages of departmental stores. (b) Briefly explain five benefits of installments selling to the seller. 4. (a) Giving five points, discuss the importance of commerce to a developing country. (b) Describe five functions of capital as factor of production. 5. (a) Tabinza insured his house against fire accident, the value of that house was shilings 20 million. Two months later, the house was destroyed as a result of an insured risk and he would be entitled to claim the total amount insured. The insurance company sales the scrap from the destroyed house for shilings 5 million. How much would Tabinza receive from the insurer? Justify your answer with clear explanation principle applied to compensate him. (b) Giving three points, explain how insurance companies make their profit. (c) Differentiate co-insurance from re-insurance. 6. The following details were extracted from the books of Mawaya for the year ended 30 th June 2015. Sales shs 840,000 Cost of sales is 75% of sales Opening stock at cost shs 90,000 Closing stock 20% of cost of goods sold Owner’s capital was shs 500,000 Trade debtors shs 110,000 Cash in hand shs 23,500 Lorry shs 400,000 Trade creditors shs 45,500 Net profit is 20% of sales. Compute the following: (a) Cost of goods sold (b) Closing stock (c) Gross profit (d) Net profit (e) Working capital (f) Working capital ratio (g) Total value of assets (h) Total expenses for the year. (i) Mark-up ratio (j) Margin ratio

SECTION C (40 Marks) Answer two (2) questions from this section. 7. (a) What is meant by the term branding in marketing? Give one example. (b) Analyze six functions of marketing. (c) Describe three disadvantages of using radio as an advertising media. 8. (a) (i) Describe three importance of management in business organization. (ii) What is the different between planning and staffing in relation to management? (b) (i) Describe the term organization. (ii) With four points, explain the importance of organization in any business. (c) Mr Kenge is a supervisor in printing department of a certain organization. His department has 120 subordinates. Which principle of organization had been violated for him to supervise large number of subordinate? Justify your answer by stating clearly the principle violated. 9. (a) Explain by giving five reasons, why a wholesaler can usually sell his goods on a lower profit margin than a retailer? (b) Discuss five services rendered by the wholesaler to the manufacturer. 10. (a) Explain five roles of transport to the development of a country. (b) Elaborate two advantages and three disadvantages of water transport.