O level Commerce Quiz 4049/1 specimen paper 1

#1. Which type of warehouse is located near customers?

manufacture’s warehouse

retailer’s warehouse

wholesaler’s warehouse

bonded warehouse

#2. Which is a risky investment?

ordinary shares

participating preference shares

cumulative preference shares

redeemable shares

#3. Which document is used to request payment from customers?

order form

statement of account

advice note

delivery note

#4. Which action is taken to correct an unfavourable balance of payment?

remove import quotas

reduce foreign currency allocation

import more goods

reduce customs duty

#5. A wholesale formed by farmers is a

general wholesaler.

cash and carry wholesaler.

co-operative wholesale society.

specialist wholesaler.

#6. Which is an objective of the Small Enterprise Development Corporation (SEDCO)?

It encourages and assists in the formation of co-operatives

It provides long-term infrastructural finance for construction of roads.

It is a non-profit making financial organisation.

It fights poverty in middle and low income nations.

#7. X insures his car valued at $20 000 against accidents for $12 000. Later the car is involved in an accident and the cost of repairs is $6 000.Which principle is applied to determine the compensation?

contribution

average clause

subrogation

proximate cause

#8. Trade Measures Act deals with

weight of goods.

value of goods.

quality of goods.

prices of goods.

#9. Which medium can a school use to advertise broilers?

poster

television

radio

magazine

#10. Which is not mass marketing?

creation of generic brands and brand loyalty

making products which have a universal appeal

tailoring a product to a particular type of customer

everyone should be a customer of the product

#11. Which is not a characteristic of an entrepreneur?

self minded

self starter

self discipline

self confidence

#12. Which product is suitable for a niche market?

clothes

blankets

bread

chocolates

#13. Which insurance principle states that the insured must not make a profit?

indemnity

utmost good faith

average clause

insurable interest

#14. Which is not allowed in a bonded warehouse?

selling goods

exporting goods

branding goods

manufacturing goods

#15. Which is not a function of the Reserve Bank of Zimbabwe?

allocating foreign currency

replacing worn-out notes

clearing of cheques

accepting deposits from the public

#16. Which is a function of the Consumer Council of Zimbabwe (CCZ)?

advise consumers of best buys

establish consumer shops

fix prices of goods

test goods for quality

#17. In which stage of production is more value added to goods?

Primary production

Secondary production

Direct production

Subsistence production

#18. Which is not an advantage of specialisation?

prices of goods are reduced

craftsmanship is developed

quality of goods is improved

more goods are produced

#19. Which telecommunication sends exact copies of diagram?

telex

radio paging

facsimile

data post

#20. Which document states the objects of a company?

Memorandum of Association.

Company Prospectus

Certificate of Incorporation.

Articles of Association.

#21. The reward for enterprise is

Wages

Rent

Interest

Profit

#22. Which mode of communication can a trader use to encourage customers to respond to a survey?

poste restante

express mail service

free post

business reply service

#23. A document used when goods are transported by sea is a bill of

Carriage

Exchange

Entry

Lading

#24. The service offered by building societies is

offering loans to start a business.

offering overdrafts as working capital.

offering loans to build houses.

offering salaries to civil servants.

#25. What is not considered when calculating the balance of trade?

duty paid for imported goods

value of goods exported

entry fees paid by tourists

value of goods imported

#26. Why has the volume of cargo carried by air increased?

economic use of fuel

no transhipment of cargo

low maintenance charges

speedy movement of goods

#27. Which service enables people in different locations to speak face to face?

franking

prestel

confravision

Datel

#28. Which policy falls under assurance?

mortgage guarantee policy

consequential loss policy

pluvious policy

endowment policy

#29. Which policy covers customers injured within the shop?

fidelity guarantee

employers liability

public liability

comprehensive

#30. Freightliners are

inter-continental cargo aeroplanes.

tankers carrying large amounts of oil.

cargo ships operating on regular routes.

high speed, long distance cargo trains.

#31. Which is the correct order in the production process?

commercial → primary → secondary

primary → commercial → secondary

commercial → secondary → primary

primary → secondary → commercial

#32. Which is a producer good?

Tractor

car

umbrella

Television

#33. X insures his car valued at $20 000 against accidents for $12 000. Later the car is involved in an accident and the cost of repairs is $6 000. What amount will the insurance company pay as compensation?

$20 000

$3 600

$6 000

$12 000

#34. Which organisation finances foreign trade?

Reserve Bank of Zimbabwe

Merchant Bank

Post Office Saving Bank

Building society

#35. In containerisation, the term “groupage” means

transporting a number of containers in one ship.

storing containers in one warehouse.

transporting consignments to different destinations.

using one container for a number of consignments.

#36. The diagram shows sources of finance available to “BEN AND TICH” Pvt Limited Company.Which of the above does not attract interest?

D

C

A

B

#37. The term “limited” in an incorporated business means that

the number of shares is limited.

the liability of shareholders is limited.

the number of shareholders is restricted.

the amount of goods sold is limited.

#38. Which mode of communication is considered as formal?

Skype

Facebook

E-mail

#39. Which is not true of Private Limited Companies and Public Limited Companies?

both have a minimum of two shareholders

both are financed by shareholders

both sell shares at the stock exchange

both have limited liability

#40. The purpose of an indent is to state the

goods insured.

goods required.

goods delivered.

goods available.