Candidate's Examination Number ………………… THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL FORM TWO SECONDARY EDUCATION EXAMINATIONS 0061 COMMERCE Time: 2 Hours Friday, 28 th November 2014 p.m. Instructions 1. This paper consists of sections A, B and C. 2. Answer all questions. 3. All answers must be written in the spaces provided. 4. All writing must be in blue or black ink. 5. Cellular phones and calculators are not allowed in the examination room. 6. Write your Examination Number at the top right corner of every page. FOR EXAMINER'S USE ONLY QUESTION NUMBER SCORE EXAMINERS’ INITIALS 1 2 3 4 5 6 7 TOTAL

Candidate's Examination Number ………………… SECTION A (30 MARKS) 1. For each of the following items (i) - (x), choose the correct answer and write its letter in the box provided. (i) The process of selling goods and services to other countries is called (a) Home trade (b) International trade (c) Retail trade (d) Export trade (ii) The movement along a demand curve is caused by (a) change in price of a commodity (b) change in consumers’ income (c) change in quantity demanded (d) change in consumers’ taste (iii) Which of the following is the best feature of the multiple shops? (a) Providing self service to customers. (b) Stocking variety goods from different producers. (c) Stocking similar goods and often similar in appearance. (d) Stocking similar goods under one roof and one management. (iv) The main branches of production are (a) Commerce, industry and trade (b) Commerce, industry and public service (c) Commerce, industry and direct services (d) Commerce, industry and personal services (v) The shops which sell products of one manufacturer only are called (a) Supermarket shops (b) Tied shops (c) Single shops (d) Mobile shops (vi) Which of the following is a reward for land as a factor of production? (a) Interest (b) Profit (c) Wage (d) Rent

Candidate's Examination Number ………………… (vii) A warehouse where imported goods are kept waiting for customs clearance is called (a) Specialized warehouse (b) Bonded warehouse (c) Public warehouse (d) Private warehouse (viii) Which of the following service is normally rendered by wholesalers to consumers? (a) Providing capital (b) Providing transport (c) Providing advice (d) Providing variety of goods (ix) An art of making goods and services known to the public is known as (a) marketing (b) sales promotion (c) advertising (d) communication (x) Any price above equilibrium price for a given commodity leads to (a) excess supply (b) decrease in supply (c) decrease in demand (d) excess demand

Candidate's Examination Number ………………… 2. Match the items in List A with the correct responses in List B by writing the letter of the correct response below the number of the corresponding item in the table provided. LIST A LIST B (i) Buying and selling of goods and services inside or outside the country. (ii) Buying and selling of goods and services inside the country. (iii) Buying of goods in bulk from the producer and selling them in reasonable quantities to retailers. (iv) Buying and selling of goods where by exchange involves goods by goods. (v) Selling of goods and services to other countries (vi) Activities that facilitate buying and selling of goods and services inside and outside the country. (vii) Buying of goods from the wholesalers in large quantities and selling them to the consumers in smaller quantities. (viii) Buying of goods and services from outside the country. (ix) Buying and selling of goods and services beyond a country’s boundaries. (x) The movement of goods and services from one place to another whether inside or outside the country. A Foreign trade B Barter trade C Retail trade D Warehousing E Trade F Transportation G Commerce H Wholesale trade I Auxiliary to trade J Advertising K Export trade L Production M Communication N Import trade O Home trade ANSWERS LIST A (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) LIST B 3. Complete the following sentences by filling in the blanks with the correct word(s): (i) Goods which are used in production of other goods in production process are called (ii) The path through which products follow from the producer to the final consumer is known as

Candidate's Examination Number ………………… (iii) The table which shows the quantity of goods supplies against their prices is called (iv) Small scale retailers who move from place to place carrying their goods on their shoulders are called (v) is an ability of a commodity to satisfy human needs or wants. (vi) The costs of production which do not change according to the level of output are called (vii) Creation of goods and services to satisfy human wants is known as (viii) An arrangement of stocks in a warehouse in a way that old stocks can easily be identified from new one is known as (ix) Goods which are used directly by the final consumers are categorized as (x) A large building which is specifically made for the storage of goods before use is called SECTION B (30 Marks) 4. Briefly describe the following terms: (a) Luxury needs (b) Constructive industries (c) Deferred payment

Candidate's Examination Number ………………… (d) Consumers (e) Stock administration 5. (a) Who is a “trader”? (b) Briefly explain five functions of a wholesaler. (i) (ii) (iii) (iv) (v)

Candidate's Examination Number ………………… SECTION C (40 Marks) 6. The following details were extracted from the book of Makoko for the year ending 31/07/2014. Purchases…............................ Shs. 500,000 Opening Stock………………Shs. 80,000 Closing Stock……………… Shs. 40,000 Minimum Stock Level……. kg. 120 Daily sales volume………… kg. 80 Delivery time…..................... 5 days By using the information given above, calculate the following showing clearly all the workings. (a) Average stock (b) Costs of good sold (c) Rate of stock turn (d) Order point 7. (a) Define the term “specialization”.

Candidate's Examination Number ………………… (b) Explain six disadvantages of specialization.