The production process of goods is said to create utility if the: A. manufacturing process is completed B. goods reach retailers shops C. goods reach the final consumer D. goods are kept in a warehouse E. raw materials are changed to semi-raw materials

One among the following is NOT a function of the Bank of Tanzania (BoT): A. It acts as a banker to commercial banks B. It is the sole currency issuing authority C. It advises the government on financial matters D. It lends money to the discount house if there is no other source E. It provides banking facilities to parastatal bodies

Given the daily sales 40 tins, delivery time 28 days, and minimum stock 1600 cartons.

1. Calculate the re-order level. (4 mk)
2. Briefly explain what it means by your answer in 3(a) above. (2 mk)
3. As the price of mangoes increased from Shs. 400/- to Shs. 600/-, the quantity consumed by a family decreased from 40 to 30 per month. Calculate the price elasticity of demand. (4 mk)
4. Outline four different features of Current Account from Fixed Deposit Account. (4 mk)

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Briefly explain the following terms:

1. Letter of hypothecation (2 mk)
2. Trade discount (2 mk)
3. Composite demand (2 mk)
4. Overdraft (2 mk)
5. Multiple shops (2 mk)

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Distinguish the following terms as used in home trade:

1. The amount of money a business is liable to its investor (1 mk)
2. Deferred Payment and Hire Purchase (2 mk)
3. The long term liabilities (1 mk)
4. Advice Note and Packing Note (2 mk)
5. The excess of current assets over current liabilities (1 mk)
6. Primary Industries and Secondary Industries (2 mk)
7. Inquiry and Quotation (2 mk)
8. The sum of fixed assets and working capital (1 mk)
9. Cash discount and Quantity discount (2 mk)
10. The maximum amount a company raises by selling shares (1 mk)
11. The amount that the shareholders have been asked to pay (1 mk)
12. The amount that has actually been received from shareholders (1 mk)
13. The total face value of the shares that have been issued (1 mk)
14. The amount stated by the promoters when making application for registration of the company (1 mk)
15. The amount spent on buying or adding value to non-current assets (1 mk)

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Explain the functions of management.

1. Explain the functions of management. (10 mk)
2. Calculate the re-order level. (3 mk)
3. Briefly explain what it means by your answer in 3(a) above. (2 mk)
4. As the price of mangoes increased from Shs. 400/- to Shs. 600/-, the quantity consumed by a family decreased from 40 to 30 per month. Calculate the price elasticity of demand. (5 mk)
5. Outline four different features of Current Account from Fixed Deposit Account. (5 mk)

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Answer two (2) questions from this section

1. Elaborate five (5) principles of co-operatives. (10 mk)
2. Letter of hypothecation (2 mk)
3. Trade discount (2 mk)
4. Explain five (5) principles of insurance. (10 mk)
5. Composite demand (2 mk)
6. Overdraft (2 mk)
7. Multiple shops (2 mk)

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Answer two (2) questions from this section

1. Explain five (5) features of partnership. (10 mk)
2. Distinguish Deferred Payment and Hire Purchase (5 mk)
3. Distinguish Advice Note and Packing Note (5 mk)
4. Explain five (5) advantages of partnership as compared to sole proprietorship. (10 mk)
5. Distinguish Primary Industries and Secondary Industries (5 mk)

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Answer two (2) questions from this section

1. Describe six (6) factors that are responsible for changes in demand for a commodity. (8 mk)
2. Explain briefly the effects of a rise in the price of coffee on the demand for: i. Tea leaves ii. Sugar (4 mk)
3. (i) Explain how Equilibrium Price occurs. (ii) With the aid of a diagram illustrate the Equilibrium Price. (8 mk)

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Answer two (2) questions from this section

1. With particular reference to Tanzania, discuss the importance of road transport to Commerce. (15 mk)
2. What is meant by Marginal Cost? (5 mk)

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