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ZIMSEC O Level · 4049/1 · N2018

Commerce Paper 1 November 2018

Questions
39 of 40
Time allowed
75 min
Syllabus code
4049/1

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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
Goods required for personal use are called
  1. Aagricultural goods.
  2. Bcapital goods.
  3. Cconsumer goods.
  4. Dproducer goods.

Question 2

Production
Which are the three stages of production?
  1. Aextracting, manufacturing and distributing
  2. Bextracting, constructing and exporting
  3. Cdistributing, buying and selling
  4. Dmanufacturing, extracting and retailing

Question 3

Production
Which is a feature of specialisation?
  1. Aone worker is required
  2. Bhigh output of products
  3. Chigh costs of production
  4. Dmore labour is required

Question 4

Production
Who provides an indirect service?
  1. Aadvertiser
  2. Blawyer
  3. Cmusician
  4. Dteacher

Question 5

Production
Which is not an example of value addition?
  1. Ablending coal
  2. Bgrading coal
  3. Cprospecting coal
  4. Dtransporting coal

Question 6

Retail trade
Which action may a small retailer take to compete with large retailers?
  1. Abuying goods directly from the manufacturers
  2. Bjoining voluntary chain group
  3. Cproviding a wide range of goods
  4. Dpurchasing goods in large quantities

Question 7

Retail trade
Which is a feature of a vending machine?
  1. Ait is found everywhere
  2. Bit is used by vendors only
  3. Cit offers personal service
  4. Dit operates twenty-four hours

Question 8

Marketing
A manufacturer can differentiate his goods from those of a competitor by
  1. Ablending.
  2. Bbranding.
  3. Cdescribing.
  4. Dpricing.

Question 9

Trade documents
When would cash discount be deducted?
  1. Awhen debt is paid promptly
  2. Bwhen goods are perishable
  3. Cwhen goods are bought for resale
  4. Dwhen it is a futures contract

Question 10

Trade documents
A trader bought 10 kitchen tables for $800, under the following terms: 10% trade discount, and 5% cash discount within 30 days. What is the net invoice price?
  1. A$80
  2. B$720
  3. C$736
  4. D$800

Question 11

Trade documents
A trader bought 10 kitchen tables for $800, under the following terms: 10% trade discount, and 5% cash discount within 30 days. How much did the trader pay if the amount owing is settled within 20 days?
  1. A$36
  2. B$40
  3. C$684
  4. D$760

Question 12

Consumer protection
Which is a function of the Consumer Council of Zimbabwe?
  1. Aauthorising use of seal of approval
  2. Bcontrolling prices of goods
  3. Cinvestigating consumer complaints
  4. Dtesting consumer products for quality

Question 13

Consumer protection
Which statement represents a disclaimer clause?
  1. ADo not use for more than 10 days without consulting your doctor.
  2. BGoods left at owner's risk.
  3. CQuality guaranteed or your money back.
  4. DTrespassers will be prosecuted.

Question 14

Business units
In a private limited company, what does the term limited mean?
  1. Aall shareholders have limited liability
  2. Bcapital contributed by shareholders is limited
  3. Crights of shareholders are limited
  4. Dshareholders are limited to twenty only

Question 15

Business units
Which document confirms a limited company as a separate legal entity?
  1. AArticles of Association
  2. BCertificate of Incorporation
  3. CMemorandum of Association
  4. DStatutory declaration

Question 16

Business units
Which feature applies to both private companies and public companies?
  1. Afamily owned business
  2. Bpublication of financial accounts
  3. Cregistration with Registrar of Companies
  4. Dsale of shares on Stock Exchange

Question 17

Business units
Which is not a challenge faced by Small and Medium Enterprises?
  1. Aadapting to environmental changes
  2. Black of capital (for expansion)
  3. Clegal requirements
  4. Dserving niche markets

Question 18

Management
Which is not a management function?
  1. Aplanning
  2. Borganising
  3. Cmerchandising
  4. Dcontrolling

Question 19

Entrepreneurship
What is perseverance in business?
  1. Aability for imaginative creation
  2. Bbeing honest and truthful in business
  3. Cdetermination that pushes the entrepreneur
  4. Dwillingness to start a new business

Question 20

Business finance
The trading figures of Madziro Enterprise are: sales $10 000, cost of goods sold $5 000, average stock $4 000 and sales returns $1 000. What is Madziro's gross profit?
  1. A$6 000
  2. B$4 000
  3. C$2 000
  4. D$1 000

Question 21

Business finance
The trading figures of Madziro Enterprise are: sales $10 000, cost of goods sold $5 000, average stock $4 000 and sales returns $1 000. The rate of turnover is
  1. A1 and a quarter times.
  2. B2 times.
  3. C2 and a quarter times.
  4. D10 times.

Question 22

Banking
A cheque may be dishonoured if
  1. Ait has been folded.
  2. Bthe drawer has gone overseas.
  3. Cit is written in red.
  4. Dit is not dated.

Question 23

Banking
Which is the most appropriate method of paying monthly salaries to 600 employees?
  1. Acredit transfer
  2. Bdirect debit
  3. Cmoney order
  4. Dstop order

Question 24

Insurance
The risk that a cashier may steal the employer's money is covered by
  1. Aconsequential loss.
  2. Bemployer's liability policy.
  3. Cpublic liability insurance policy.
  4. Dfidelity guarantee insurance policy.

Question 25

Insurance
An insured motor vehicle is written off in an accident. According to the principle of indemnity the insurer pays compensation and
  1. Abuys the damaged motor vehicle.
  2. Bpays profits to the policyholder.
  3. Cpurchases a new motor vehicle for the policyholder.
  4. Dtakes possession of the damaged motor vehicle.

Question 26

Insurance
A trader's stock valued at $4 000 was insured for $3 000 against fire. When fire occurred goods worth $1 500 were destroyed. How much compensation was paid?
  1. A$1 125
  2. B$1 500
  3. C$3 000
  4. D$4 000

Question 27

Insurance
What is the use of an insurance prospectus?
  1. AIt gives information on exact premiums to be paid.
  2. BIt has questions to be answered in utmost good faith.
  3. CIt is a temporary cover on payment of first premium.
  4. DIt is used to decide whether or not to accept cover.

Question 28

Insurance
One communal system of assurance is
  1. Aworking together in the fields.
  2. Bbuilding a community toilet.
  3. Ccoming together during community gathering.
  4. Dcontributing towards burial expenses.

Question 29

Communication
Radio paging may be used to
  1. Acall a doctor to an emergency room.
  2. Bcall for a fire brigade to a burning house.
  3. Ccall shareholders to attend a meeting.
  4. Dcall the police to attend an accident.

Question 30

Communication
Under what circumstances would a trader use a franking machine?
  1. Awhen safety of mail is required
  2. Bwhen sending important documents
  3. Cwhen speedy delivery is required
  4. Dwhen sending large volumes of mail

Question 31

Communication
Which service is used by a salesperson who is away from his station?
  1. Arecorded delivery
  2. Bprivate bag
  3. Cposte restante
  4. Dbusiness reply

Question 32

Communication
Which list contains telecommunication services only?
  1. Acellphone, radio paging and recorded delivery
  2. Bconfravision, radiopaging and recorded delivery
  3. Cfacsimile, datel and e-mail
  4. Dposte restante, telephone and registered mail

Question 33

Transport
Which is an advantage of rail transport over road?
  1. Acheaper over short distances
  2. Bfaster over short distances
  3. Clarger carrying capacity
  4. Dwide network coverage

Question 34

Transport
The agreement to hire a tramp is
  1. Abill of lading.
  2. Bcharter party.
  3. Cconsignment note.
  4. Ddelivery note.

Question 35

Transport
Which is a difference between an Airport Authority and a Seaport Authority?
  1. Acommunication facilities
  2. Brefuelling facilities
  3. Ctransport links to the port
  4. Dwell levelled runway

Question 36

Transport
Which ship allows loaded vehicles to be driven on and off?
  1. Atramp
  2. Bro-ro
  3. Cliner
  4. Dcoastal

Question 38

Marketing
Which is the most suitable advertising medium for a new cake mixer?
  1. Anewspaper
  2. Bposter
  3. Cradio
  4. Djournal

Question 39

Marketing
What benefit does the consumer get from competition between manufacturers of similar products?
  1. Abuying goods on impulse
  2. Bcreating employment in the advertising business
  3. Cincreasing the sales of new products
  4. Dobtaining high quality goods at lower prices

Question 40

Marketing
The four Ps of the marketing mix are shown as price, place, X and promotion. What is X?
  1. Apreference
  2. Bproduct
  3. Cprofit
  4. Dprotection

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