Bank rate is the rate of interest charged by:

Match the items in List A with the responses in List B by writing the letter of the correct response beside the item number. LIST A (i) Sells products from different manufacturers (ii) A grant of property for a term of months/years (iii) Is where short term loans can be obtained (iv) Occurs if a country trades with only one country (v) Do not carry any interest (vi) A valuable document accepted by the bank as a protection against loan granted. (vii) Provides capital and receives profit but takes no part in management (viii) Where liquid assets of a firm are insufficient to meet claims of creditors (ix) A document that defines the relationship between the company and the outsiders (x) A payment is made at the point of sale LIST B A. Memorandum of association B. Sleeping partner C. Tied shops D. Money market E. Bilateral trade F. Articles of association G. Collateral security H. Rent I. Loan market J. Solvency K. Single shops L. Diamond M. Quasi partner N. Spot cash O. Multilateral trade P. Cash with order Q. Lease R. Current accounts S. Insolvency T. Fixed deposit accounts

1. Sells products from different manufacturers (1 mk)
2. A grant of property for a term of months/years (1 mk)
3. Is where short term loans can be obtained (1 mk)
4. Occurs if a country trades with only one country (1 mk)
5. Do not carry any interest (1 mk)
6. A valuable document accepted by the bank as a protection against loan granted. (1 mk)
7. Provides capital and receives profit but takes no part in management (1 mk)
8. Where liquid assets of a firm are insufficient to meet claims of creditors (1 mk)
9. A document that defines the relationship between the company and the outsiders (1 mk)
10. A payment is made at the point of sale (1 mk)

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Write short notes on the following: (a) Geographical/national specialization. (b) Balance of trade. (c) Bills of exchange. (d) Canons of taxation.

1. Geographical/national specialization. (3 mk)
2. Balance of trade. (3 mk)
3. Bills of exchange. (3 mk)
4. Canons of taxation. (3 mk)

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Given the following: Sales 6,000/= opening stock 1,500/= purchases 2,600/= carriage inwards 55/= returns inwards 400/= closing stock 1,000/= purchases 400/= Calculate: (a) Mark up (b) Margin (c) Rate of stock turnover.

1. Mark up (4 mk)
2. Margin (4 mk)
3. Rate of stock turnover. (4 mk)

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(a) Mention three (3) differences between a public company and a private company. (b) Explain two (2) factors that influence the size of a business unit.

1. Mention three (3) differences between a public company and a private company. (6 mk)
2. Explain two (2) factors that influence the size of a business unit. (4 mk)

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(a) Mention and define four (4) elements of transport. (b) Explain the importance of transport to business.

1. Sells products from different manufacturers (1 mk)
2. Mention and define four (4) elements of transport. (8 mk)
3. A grant of property for a term of months/years (1 mk)
4. Explain the importance of transport to business. (2 mk)
5. Is where short term loans can be obtained (1 mk)
6. Occurs if a country trades with only one country (1 mk)
7. Do not carry any interest (1 mk)
8. A valuable document accepted by the bank as a protection against loan granted. (1 mk)
9. Provides capital and receives profit but takes no part in management (1 mk)
10. Where liquid assets of a firm are insufficient to meet claims of creditors (1 mk)
11. A document that defines the relationship between the company and the outsiders (1 mk)
12. A payment is made at the point of sale (1 mk)

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(a) Explain five benefits that a businessman would get by using face-to-face communication. (b) Explain five barriers to effective communication in business.

1. Explain five benefits that a businessman would get by using face-to-face communication. (5 mk)
2. Explain five barriers to effective communication in business. (5 mk)

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Explain why trading with overseas countries is more difficult than trading within a country.

1. Explain why trading with overseas countries is more difficult than trading within a country. (5 mk)

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(a) Explain five (5) factors that determine elasticity of supply. (b) Discuss the effects on the demand for bicycle due to: (i) an increase in incomes (ii) a rise in the price of petrol (iii) an improvement in the technology of bicycle production

1. Explain five (5) factors that determine elasticity of supply. (5 mk)
2. an improvement in the technology of bicycle production (4 mk)

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Account for the presence of many small-scale retailers than large-scale retailers in Tanzania.

1. Account for the presence of many small-scale retailers than large-scale retailers in Tanzania. (5 mk)

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