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CSEE

Commerce · Paper 1 · 2025

38 questions 🇹🇿 NECTA ✓ Official NECTA answers

CSEE 🇹🇿 NECTA ✓ Official NECTA answers

Commerce · Paper 1 · 2025

38 questions

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Questions (38)

Section A

1. 1 mark

Migomba engaged in farming and his farming activities involve a lot of risks. Which way of managing risks adopted by Migomba?

A. Preventing risks

B. Reducing risks

C. Accepting risks

D. Transferring risks

E. Scaring risks

2. 6 marks

Match the descriptions of the taxation principles in List A with the appropriate tax principle in List B by writing the letter of the correct response beside the corresponding item number in the answer booklet provided.

(none) List any four functions of management. 4 mk

((i)-() Match the descriptions of the taxation principles in List A with the appropriate tax principle in List B. 1 mk

(i) Tax should be charged according to the individual ability to pay. 1 mk

(ii) Tax should change in proportion to the change of tax base. 1 mk

(iii) Tax payers must know exactly how much to pay and tax collectors must know how much to collect. 1 mk

(iv) The cost and administration of tax should not exceed the revenue realized. 1 mk

(v) Tax collection should be easy or should not cause unnecessary hardship for tax payers. 1 mk

(vi) Tax should generate enough revenue for the Government. 1 mk

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12. 1 mark

What is the process of creating, communicating, and delivering value to customers?

A. Accounting

B. Management

C. Marketing

D. Finance

13. 1 mark

Which of the following is a source of finance for a business?

A. Selling fixed assets

B. Paying off debts

C. Reducing inventory

D. Decreasing expenses

14. 1 mark

What does 'inflation' mean in economics?

A. A decrease in the general price level.

B. A sustained increase in the general price level.

C. A decrease in the unemployment rate.

D. An increase in economic growth.

16. 1 mark

What is the main advantage of a public limited company?

A. Easy to set up

B. Unlimited liability for shareholders

C. Ability to raise large amounts of capital

D. Direct control by owners

Section B

3. 6 marks

Briefly explain three positive and three negative effects of specialization and division of labour in the organization.

(none) Three negative effects of specialization and division of labour. 3 mk

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4. 6 marks

You have been invited in a school economic committee to discuss the need for the school to have some commercial activities. Briefly elaborate the following to the members:

(none) Briefly explain any four types of banking services. 4 mk

(a) Four importance of commerce. 4 mk

(b) Two commercial activities that can be undertaken by the school. 2 mk

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6. 6 marks

(a) Planning is the only function of business management. By using four points, briefly argue against this statement. 4 mk

(b) Differentiate the Unity of command from the scalar chain management as explained by Fayol. 2 mk

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7. 6 marks

(a) How are the following mechanisms used in protecting domestic industries? (i) Imposing heavy import duties (ii) Fixing imports quotas (iii) Total ban 3 mk

(b) 'Despite its limitations, international trade is important for the country's economic development.' Briefly, use three points to justify this statement. 3 mk

((a)(i) How is a total ban used in protecting domestic industries? 1 mk

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8. 6 marks

Differentiate the following terms as used in marketing:

(a) Market and marketing 2 mk

(b) Branding and packaging 2 mk

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17. 5 marks

The following table shows the monthly income and expenditure of a small business for the first quarter of the year. | Month | Income (Tshs) | Expenditure (Tshs) | |-------|---------------|--------------------| | January | 5,000,000 | 4,000,000 | | February| 6,000,000 | 4,500,000 | | March | 7,000,000 | 5,000,000 |

Month	Income (Tshs)	Expenditure (Tshs)
January	5,000,000	4,000,000
February	6,000,000	4,500,000
March	7,000,000	5,000,000

(a) Calculate the net profit for each month. 3 mk

(b) Calculate the total net profit for the first quarter. 2 mk

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18. 4 marks

Consider the following scenario: Company X is a manufacturing firm that produces widgets. The company is facing challenges with its production process, leading to high costs and low output quality. (a) Identify two possible reasons for the challenges faced by Company X. (b) Suggest two strategies that Company X can implement to improve its production process.

(a) Identify two possible reasons for the challenges faced by Company X. 2 mk

(b) Suggest two strategies that Company X can implement to improve its production process. 2 mk

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19. 5 marks

A retail shop recorded the following sales and purchases of a particular product during a month: Opening stock: 50 units Purchases: 100 units at Tshs 10,000 each Sales: 120 units at Tshs 15,000 each (a) Calculate the value of closing stock using the FIFO (First-In, First-Out) method. (b) Calculate the gross profit from the sales.

(a) Calculate the value of closing stock using the FIFO (First-In, First-Out) method. 3 mk

(b) Calculate the gross profit from the sales. 2 mk

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20. 4 marks

Explain the difference between direct marketing and indirect marketing, and provide one example for each.

(none) Explain the difference between direct marketing and indirect marketing, and provide one example for each. 4 mk

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21. 4 marks

A government wants to reduce unemployment. Describe two fiscal policy measures that the government could use.

(none) Describe two fiscal policy measures that the government could use. 4 mk

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Section C

22. 5 marks

The following information relates to a sole trader for the year ended 31st December 2024: Drawings: Tshs 2,000,000 Capital at end: Tshs 15,000,000 Net profit: Tshs 4,000,000 Calculate the capital at the beginning of the year.

(none) Calculate the capital at the beginning of the year. 5 mk

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