Which of the following best describes the subject matter of commerce? A. Production of goods for personal use B. Exchange and distribution of goods and services C. Extraction of raw materials from the earth D. Construction of infrastructure like roads

Match the items in List A with the responses in List B by writing the letter of the correct response beside the item number in your answer booklet. LIST A LIST B (i) The ability of goods to satisfy human wants A. Bill of exchange (ii) A document used to facilitate credit in international trade B. Utility (iii) A shop that sells products of one manufacturer only C. Stock turnover (iv) The rate at which stock is sold and replaced in a business D. Tied shop (v) A place where imported goods are stored until duties are paid E. Direct production (vi) Producing goods for personal use rather than for sale F. Bonded warehouse (vii) A tax imposed on the value of goods at each stage of production G. Value Added Tax (VAT) (viii) A principle of taxation ensuring fairness in tax burden H. Equity (ix) A leadership style where few people are involved in decision-making I. Autocratic (x) The process of selling goods to the final consumer J. Retailing

1. The ability of goods to satisfy human wants (1 mk)
2. A document used to facilitate credit in international trade (1 mk)
3. A shop that sells products of one manufacturer only (1 mk)
4. The rate at which stock is sold and replaced in a business (1 mk)
5. A place where imported goods are stored until duties are paid (1 mk)
6. Producing goods for personal use rather than for sale (1 mk)
7. A tax imposed on the value of goods at each stage of production (1 mk)
8. A principle of taxation ensuring fairness in tax burden (1 mk)
9. A leadership style where few people are involved in decision-making (1 mk)
10. The process of selling goods to the final consumer (1 mk)

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Write short notes on the following: (a) Home trade (b) Stock-in-trade (c) Letter of credit (d) Direct services (e) Dumping

1. Home trade (2 mk)
2. Home trade (2 mk)
3. Stock-in-trade (2 mk)
4. Stock-in-trade (2 mk)
5. Letter of credit (2 mk)
6. Letter of credit (2 mk)
7. Direct services (2 mk)
8. Direct services (2 mk)
9. Dumping (2 mk)
10. Dumping (2 mk)

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Differentiate between the following: (a) A credit note and a debit note (b) A cooperative organization and a partnership

1. A credit note and a debit note (5 mk)
2. A credit note and a debit note (5 mk)
3. A cooperative organization and a partnership (5 mk)
4. A cooperative organization and a partnership (5 mk)

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The price of a commodity changed from Shs. 50 per kg to Shs. 60 per kg, resulting in a change in quantity demanded from 500 kg to 400 kg. (a) Calculate the price elasticity of demand. (b) Is the demand elastic, unitary, or inelastic? (c) What does your answer in (b) imply about the commodity?

1. Calculate the price elasticity of demand. (4 mk)
2. Calculate the price elasticity of demand. (3 mk)
3. Is the demand elastic, unitary, or inelastic? (2 mk)
4. Is the demand elastic, unitary, or inelastic? (2 mk)
5. What does your answer in (b) imply about the commodity? (2 mk)
6. What does your answer in (b) imply about the commodity? (4 mk)

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Mwajuma had an opening stock of Shs. 30,000 and a closing stock of Shs. 40,000. Her net purchases for the year were Shs. 120,000, and her gross profit margin was 25% on sales. Her expenses for the year were Shs. 15,000. Calculate: (a) Cost of goods sold (b) Gross profit (c) Net profit

1. Cost of goods sold (3 mk)
2. Cost of goods sold (3 mk)
3. Gross profit (3 mk)
4. Gross profit (3 mk)
5. Net profit (3 mk)
6. Net profit (4 mk)

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(a) Define international trade. (b) Explain four advantages and four disadvantages of international trade for a country like Tanzania.

1. Define international trade. (2 mk)
2. Define international trade. (3 mk)
3. Explain four advantages and four disadvantages of international trade for a country like Tanzania. (12 mk)
4. Explain four advantages and four disadvantages of international trade for a country like Tanzania. (8 mk)

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(a) What is a market survey? (b) Outline five types of information a retailer can obtain from a market survey to improve their business.

1. What is a market survey? (2 mk)
2. What is a market survey? (5 mk)
3. Outline five types of information a retailer can obtain from a market survey to improve their business. (10 mk)
4. Outline five types of information a retailer can obtain from a market survey to improve their business. (8 mk)

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(a) Define a cheque. (b) Explain five circumstances under which a cheque may be dishonoured by a bank.

1. Define a cheque. (2 mk)
2. Explain five circumstances under which a cheque may be dishonoured by a bank. (8 mk)

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(a) What are the principles of taxation? (b) Explain why a progressive tax system is considered more equitable than a regressive tax system.

1. What are the principles of taxation? (4 mk)
2. Explain why a progressive tax system is considered more equitable than a regressive tax system. (6 mk)

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