Commerce Paper 2 June 2004

1. AThe transportation and storage of goods that move them from the factory to the final consumer
2. BThe advertising and promotion of goods and services in order to increase demand and sales
3. CThe making of goods and the provision of services to satisfy wants and needs
4. DThe buying and selling of goods for profit, without changing them in any way

1. APeople produce for their own consumption, e.g. subsistence farming
2. BRaw materials are extracted from nature, e.g. mining
3. CRaw materials are converted into finished goods, e.g. manufacturing
4. DPeople produce a surplus for sale, e.g. commercial farming

1. ALow capital outlay required to start the business
2. BAbility to offer highly personalised service to individual customers
3. CFlexibility for branch managers to make independent purchasing decisions
4. DLower advertising costs, since one advertisement covers all branches

1. AOffering personal service, credit and delivery to known customers
2. BExploiting economies of scale from centralised buying
3. CUsing centralised accounting across many branches
4. DSelling only branded, standardised goods at uniform prices

1. AA written agreement is legally required
2. BNo deposit is required from the buyer
3. CThe buyer owns the goods immediately at the time of purchase
4. DIt is typically used for non-durable goods such as clothes

Answer this when you sit the paper.

Answer this when you sit the paper.

1. AA private partnership deed
2. BAn Act of Parliament
3. CA memorandum and articles of association filed with the Registrar of Companies
4. DA licence issued by the local municipality

1. AThey carry voting rights at company meetings
2. BReturns to holders are variable, depending on profit
3. CDebenture holders are creditors of the company, not owners
4. DThey cannot force the company into liquidation if unpaid

1. AIt provides a permanent written record that can be kept
2. BIt allows very detailed, lengthy descriptions of the product
3. CIt offers regional or national coverage through print circulation
4. DIt caters for illiterate people and can use audio/personal impact

1. ATo limit the quantity of goods available to consumers
2. BTo inform the public and create demand for their products
3. CTo reduce the price of raw materials from suppliers
4. DTo reduce the amount of tax payable to government

1. AIt transmits typed messages instantly between two distant offices
2. BIt prints the postage payable on mail, saving on labour and time
3. CIt provides door-to-door delivery of goods by road
4. DIt allows a business to withdraw cash outside banking hours

1. AIt requires deep water ports for loading and unloading
2. BIt offers door-to-door delivery and reaches remote areas
3. CIt transmits typed business messages instantly over telephone lines
4. DIt is the cheapest option for transporting bulky cargo over very long distances

1. AIt allows the country to obtain products not locally produced and to earn foreign currency
2. BIt eliminates the need for a Reserve Bank to manage the exchange rate and the money supply
3. CIt removes the need for customs and excise authorities to collect duty on imported goods
4. DIt guarantees that all locally produced goods are of a higher quality than imported goods

1. AA document authorising a bank to lend money to an exporter against an unpaid bill of exchange
2. BA certificate issued by a country's consul confirming the price and quantity for customs duty
3. CA note that accompanies goods delivered locally by a road haulage firm, similar to a consignment note
4. DA document of title showing ownership of goods carried by sea, and a contract of carriage

1. ABorrowing money directly from the Reserve Bank of Zimbabwe, which acts as lender of last resort
2. BBuying goods on hire purchase and repaying the balance in fixed monthly instalments over time
3. CWithdrawing cash from an ATM using a bank card and a personal identification number
4. DSelling/cashing a bill of exchange to a bank before its due date, less a discount

1. AOffering current accounts and cheque books directly to the general public
2. BSelling shares to the public to raise capital for private companies
3. CActing as banker and adviser to the government, and issuing currency
4. DProviding personal loans and overdrafts to individual customers

1. AThe insurer must always pay out the full sum insured regardless of loss
2. BThe insured may insure any person's property, not only their own
3. CThe insured must directly suffer loss if the risk insured against occurs
4. DThe insured must pay the full value of the item as a premium

Answer this when you sit the paper.