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ZIMSEC O Level · 4049/01 · J2019

Commerce Paper 1 June 2019

Questions
39 of 40
Time allowed
75 min
Syllabus code
4049/01

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Questions
39
Pass mark
24
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Answer every question in the printed order, get marked at the end, then see the answers.

The questions

Question 1

Production
Which service is not part of tertiary production?
  1. Abanking
  2. Bdistribution
  3. Cmanufacturing
  4. Dteaching

Question 2

Production
Which is an advantage of specialisation?
  1. Aleads to employment
  2. Bresults in labour mobility
  3. Cretraining workers is cheap
  4. Dworkers become skilled

Question 3

Production
Which is not value addition?
  1. Abaking cakes from flour
  2. Bmaking steel from iron ore
  3. Cpackaging diamonds in metal boxes
  4. Dselling live cattle to abattoirs

Question 4

Business environment
Which external factor affects business environment?
  1. Acustomers
  2. Bpolitics
  3. Csuppliers
  4. Dworkers

Question 5

Production
Beneficiation is the
  1. Aamount by which the value of a product is increased.
  2. Bdifference between cost of production and selling price.
  3. Cnatural intrinsic value in the extracted raw materials.
  4. Dprocess which removes impurities from mineral ores.

Question 6

Production
Which factor of production mobilises other factors of production?
  1. Aland
  2. Blabour
  3. Centerprise
  4. Dcapital

Question 7

Retail trade
Retailing is
  1. Aoffering goods to wholesalers.
  2. Bproviding raw materials to producers.
  3. Cselling directly to consumers.
  4. Dselling goods in small quantities.

Question 8

International trade
Quotas
  1. Adiscourage domestic consumption.
  2. Bincrease inflow of foreign currency.
  3. Climit quantities of goods imported.
  4. Dmake imports more expensive.

Question 9

International trade
Balance of trade is equal to
  1. Agoods exported minus goods imported.
  2. Bgoods exported minus services exported.
  3. Cservices exported minus services imported.
  4. Dtotal exports minus total imports.

Question 10

International trade
The aim of forming trading blocs is to
  1. Achallenge integration of global economy.
  2. Bdiscriminate against non-member countries.
  3. Cpromote free trade among member states.
  4. Dencourage global free trade by nations.

Question 11

International trade
The similarity between home trade and foreign trade is that
  1. Agoods in transit are insured.
  2. Bsame language is involved.
  3. Cforeign currency is used.
  4. Dsame measurements are used.

Question 12

Consumer protection
Consumers need protection against the following except
  1. Afalse price cutting.
  2. Bbuying tested products.
  3. Cincorrect labelling of goods.
  4. Dunfair repossession of goods.

Question 13

Consumer protection
Which board tests products for quality?
  1. AAdvertising Media Association of Zimbabwe.
  2. BConsumer Council of Zimbabwe.
  3. CStandards Association of Zimbabwe.
  4. DSmall Claims Court of Zimbabwe.

Question 14

Business units
Which is a feature of business in the private sector?
  1. Aclearly identifiable owners
  2. Bno profit making motive
  3. Cowned by the government
  4. Dset-up to provide a service

Question 15

Business units
A partnership is formed by
  1. Aat least one person.
  2. Btwo and no maximum shareholders.
  3. Ctwo to fifty shareholders.
  4. Dtwo to twenty individuals.

Question 16

Business units
Which characteristic applies to both private limited company and public limited company?
  1. Aowners are called shareholders
  2. Bshare transfer is unrestricted
  3. Cshares sold on Stock Exchange
  4. Dstart trading after incorporation

Question 17

Business units
What is privatisation?
  1. Aconverting a partnership into a public corporation
  2. Bconverting a private limited company into a public limited company
  3. Cselling a business to government by an individual
  4. Dconverting public sector business to private sector business

Question 18

Entrepreneurship
An entrepreneur is
  1. Aa book-keeper who maintains accounts.
  2. Ba salesperson who markets goods.
  3. Cone who takes financial risks.
  4. Dsomeone who calculates premiums.

Question 19

Management
Planning as management function deals with
  1. Abringing workers together.
  2. Bensuring that workers do different jobs.
  3. Cfinding out whether aims are met.
  4. Dsetting goals for the business.

Question 20

Money and banking
Which function of money is used to compare goods?
  1. Ameasure of value
  2. Bmedium of exchange
  3. Cstandard for future payment
  4. Dstore of value

Question 21

Business finance
Return on capital employed is given by the formula
  1. Agross profit divided by capital owned, times 100.
  2. Bgross profit divided by cost of sales, times 100
  3. Cnet profit divided by capital invested, times 100
  4. Dnet profit divided by turnover, times 100

Question 22

Trade documents
A trader bought 200 crates of mineral water at $10 a crate from a wholesaler under these terms: trade discount 25%, cash discount 5% within 15 days. How much trade discount was offered to the trader?
  1. A$100
  2. B$400
  3. C$500
  4. D$2 000

Question 23

Trade documents
A trader bought 200 crates of mineral water at $10 a crate from a wholesaler under these terms: trade discount 25%, cash discount 5% within 15 days. How much did the trader pay if the account was settled within 10 days?
  1. A$1 900
  2. B$1 600
  3. C$1 500
  4. D$1 425

Question 24

Insurance
Which statement is true about the principle of utmost good faith?
  1. Athe insured must not make profit
  2. Ball relevant information must be disclosed
  3. Cthe insured must suffer loss
  4. Dthe risk must be insurable

Question 25

Insurance
The calculation of insurance premiums is done by the
  1. Aactuaries.
  2. Bassessors.
  3. Cbrokers.
  4. Dunderwriters.

Question 26

Insurance
Non-payment by an importer due to lack of foreign currency is covered by
  1. Aconsequential loss insurance.
  2. Bexport credit guarantee corporation.
  3. Cfidelity guarantee insurance.
  4. Dfreight insurance.

Question 27

Insurance
The diagram shows arrows labelled premiums flowing into a common fund and arrows labelled claims flowing out of it. What is represented in the diagram?
  1. Aaverage clause
  2. Binsurable interest
  3. Cpooling of risks
  4. Dproximate cause

Question 28

Insurance
Which activity is not part of e-insurance?
  1. Abuying insurance cover on-line
  2. Bcontracting an agent to discuss insurance
  3. Cdownloading a policy document
  4. Dpaying monthly premiums on-line

Question 29

Communication
Which telecommunication service allows contact when trader is out of office?
  1. Acellphone
  2. Bdatel
  3. Cpost restante
  4. Dtelephone

Question 30

Communication
Effective communication does not involve a
  1. Afeedback.
  2. Blicence.
  3. Cmedium.
  4. Dtransmitter.

Question 31

Transport
A charter party is a
  1. Acontract of hire.
  2. Bdocument of title.
  3. Cproof of delivery.
  4. Dreceipt of freight.

Question 33

Transport
What is the importance of transport to a trader?
  1. Agoods are kept safely before sale
  2. Bgoods are moved to the markets
  3. Ctastes and demands of customers are known
  4. Dtrader is covered against loss

Question 34

Transport
What is the disadvantage of using containers in transport?
  1. Acontainers are sealed in transport
  2. Bcontainer terminals are expensive to build
  3. Cpackaging costs are reduced
  4. Dsmall loads require groupage

Question 35

Transport
Which is not a function of a seaport authority?
  1. Aproviding refuelling facilities
  2. Bmaintaining dry docks
  3. Cdredging the harbour
  4. Dcollecting customs duty

Question 36

Transport
In which agreement does an exporter hire a tramp together with its crew?
  1. Ademise charter
  2. Bbill of lading
  3. Ctime charter
  4. Dvoyage charter

Question 37

Warehousing
Where does a communal farmer store grain?
  1. Agranery
  2. Bgrain silo
  3. Cmetal container
  4. Dstoreroom

Question 38

Marketing
Marketing a product to benefit a few customers is
  1. Amarket researching.
  2. Bmarket segmentation.
  3. Cmass marketing.
  4. Dniche marketing.

Question 39

Marketing
The process of dividing a market into groups is
  1. Amarket research.
  2. Bmarket segmentation.
  3. Cmass marketing.
  4. Dniche marketing.

Question 40

Marketing
What is marketing mix?
  1. Aall activities used to sell a product
  2. Bbrand name distinguishing products
  3. Cselling a variety of products
  4. Dset of questions for market research

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