"O" Level Commerce Paper 2-Questions Topic by Topic Exam Time
"O" Level Commerce Paper 2-Questions Topic by Topic Exam Time
PAPER 2- QUESTIONS
TOPIC BY TOPIC
EXAM TIME
With
Admire
TINOFAMBA NEVANOFAMBA
NAMWARI ZVINOITA
O777749666
NOVEMBER 1992 TO JUNE 2015
RESULTS ORIENTATED HANDOUT 0777 749 666
PRODUCTION
1.a) What are the purposes of trade? (10)
-to obtain foreign currency
-to make profit
-to supplement shortages
-to make available throughout the year seasonal goods
-to access wider range of goods and services at lower prices
-to increase sales by widening market
-improves standard of living
-create friendship with other countries
-create employment
-bring in new technology
b) Distinguish between commercial services and direct services(4)
Commercial services Direct service
-these are services offered indirectly to -these are services offered directly to the
consumers consumer
-examples include banking -examoles include teaching
-bo face to face contact because it is -consumers have face to face contact
indirect with the provider of the service
Land
-this is the site on which production on takes place for example seas
-no costs of production
-reward for land is rent
Labour
-this is the effort put in by people in the production of goods
-can be in the form of body that is physical
-reward for labour is wages or salaries
Capital
-wealth put aside for the the production of further wealth
-example include assets that is machinery
-reward for capital is inTerest
Entrepreneurship/Organisation
-the ability to run a business
-coordinates other factors of production
-reward is profit
10.a) Explain the term human wants and needs. How are they satiesfied?(10)
-human wants are the things which, though not essential for the proper
functioning of the body
-these are desired by people in order to have a higher standard of
living
- examples of wants include television sets,cars
-human needs are those items that people require in order to keep
their bodies functioning properly.
-examples of the basic human needs are food ,clothing and shelter
cars, televisions
-people seek to satisfy the human needs before satisfying wants
-these are satiesfied through the provision of goods and services
-this involves all the stages of production that is primary,secondary and
tertiary
-it also involves forms of production which includes direct and indirect
production
b) State the importance of warehousing to
i. a large chain of supermarkets, and (5)
-it enables the storage of: -finished goods
-goods in transit
-equipment and machinery
-prevents shortages and evens out flow of goods
-protects goods from bad weather conditions
ii. a wine importer (5)
RESULTS ORIENTATED HANDOUT 0777 749 666
-the right to basic human needs thus consumers must have access to basic
needs such as food and shelter.
-the right to safety thus consumers must be protected against goods and
and services which are dangerous to health
b) State five functions of the Standard Association of Zimbabwe(S.A.Z.).(5)
-tests products for quality
-prepare standards of products
-ensure quality of goods is maintained
-adopts or modify international standards of quality,safety or perfomance
c)State five ways in which advertising can be a disadvantage to consumers.(5)
-leads to overspending
-leads to impulse buying
-interupts television and radio programmes
-some advertised goods are harmful
-leads to higher prices if advertising campaign is unsuccessful
3.a) Explain factors to be considered in the choice of advertising media.(10)
-cost of advertising
-target group
-expected revenue
-size of market
-effectiveness of the medium
b) What are the functions of the Code of Advertising Practice? (4)
-establishes basic standards of advertising
-guards against disparaging advertisements
-ensures that there is fair competition among producers
-ensures that advrtisements are not misleading by making untrue claims
about their products
c) What are the funtions of the Consumer Council of Zimbabwe?(6)
-receives complaints from customers and investigates them
-acts as a watchdog against profiteering by overcharging
-encourages fair competition among manufacturers when advertising
-educates consumers on their rights
-settles disputes between traders and consumers
-promotes proper labelling of goods
selling.
b) Why might a trader use television to advertise products(6)
-provides sound and vision
-demonstrations are possible
-advertisements can be repeated
-different languages can be used
-advertisements can be timed
-provides wide coverage
c) What are the funtions of Standard Association of Zimbabwe(S.A.Z.)(4)
-tests products for quality
-ensures that standard of goods is maintained
-adopt or modify international standards of quality,safety or perfomance
-encourage uniformity of products
10. Study the advertisement and answer the question that follow.
“Stationery Box,the leading brand in stationery and office supplies”.
a) State and describe the type of advertising given above. (8)
Persuasive advertising
-promoting products of Stationery Box only
-undertaken by individual company
-the advertisement is using a brand or name
-encouraging customers to buy the advertiser’s products
b)Outline the disadvantages of advertising to a consumer. (6)
-leads to overspending
-leads to higher prices if advertising campaing is unsuccessful
-some advertised goods are harmful
-interupt television and radio programmes
-leads to impulse buying
-some advertisements are misleading
c) Why would a manufacturer of exercise books use radio to advertise? (6)
-provides sound
-caters for both the illiterate and blind
-advertisements can be repeated or timed
-differnt languages can be used
-provides wide coverage
TRANSPORT AND
COMMUNICATION
RESULTS ORIENTATED HANDOUT 0777 749 666
-flexible timetables
-provide door to door delivery service
-cheap over short distances
-low cost of maintanance
-there is no transhipment of goods
disadvantages
-slow over long distances
-not suitable for carrying bulky or heavy goods
-can be affected by bad weather conditions
-can also be affected by traffic congestion
-expensive over long distance
-requires other modes of transport when transporting goods
b) Why has there been an increase in the use of containers in transporting
goods?(8)
advantages
-less handling charges
-lower insurance costs
-safe method of carrying goods
-less deterioration from bad weather conditions
-marked for easy identification
-less damage and less theft
-allows groupage of less than a container
-can be easily transferred from one mode of transport to another
5.) State,giving reasons,the most suitable form of communication which can
be used in each of the following cases:
a) sending important documents from Karoi to Mutare,if not required
urgently;(5)
recorded delivery
-suitable for sending valuable documents
-there is proof of postage and delivery
-articles are delivered personally
-each article has a registered number
-provide security for items in transit
-security
-refueling points for aeroplanes
-information to pilots on weather conditions
-warehouses
-repair and maintanance facilities
-office space for customs authorities
-information on departure and arrivalk times of aeroplanes
b) Differentiate between cargo liner and tramp(10)
Tramp Cargo liner
-meant for hiring -not meant for hiring
-operate on flexible timetable -operate on fixed timetable
-operate on flexible routes -operate on fixed routes
-have no permanent homes -have permanent homes
-charges are fixed by negotiations -charges fixed at conferences
-uses self selection method of selling -use self srvice method of selling
-sell goods at high prices -sell goods at low prices
-offer credit facilities -sell goods on cash basis
-offer luxurious facilities eg lifts -do not offer luxurious facilities
a) What are the differences between multiple shops and department store(10)
Multiple shops Department stores
-located in busy shopping cetres -located in the city centre
-sell narrow range of goods on one -sell wide range of goods
line of products
-goods are usually sold at low prices -sell goods at high prices
-do not offer delivery services -offer delivery services
-may offer credit sales -offer credit sales
INTERNATIONAL TRADE
1.a) Distinguish between visible and invisible trade,giving one example of each
for Zimbabwe.(6)
RESULTS ORIENTATED HANDOUT 0777 749 666
INSURANCE
1.a)What are the differences between assurance and insurance?(4)
Assurance Insurance
-events must occur, for example death -events may occur ,for example theft
-cannot be indemnified for loss -can be indemnified for loss
BUSINESS DOCUMENTS
1.Why are the following documents important to a tader:
a) proforma invoice(5)
-may be used as a quotation
-used to apply for foreign currency
-used when goods are send on approval
-it contains details of goods send on consignment
-shows quantities of goods
b) advice note(5)
-notifies the buyer that goods are on the way
-enables buyer to prepare storage facilities
-enables buyer to check whether correct order has been dispatched
-it shows description of goods,method of despatch,date of despatch
and names and addresses of buyer and seller
c) delivery note(5)
-provides proof of delivery if signed
-sent with the goods to check state and quantity of goods on arrival
-it shows:
RESULTS ORIENTATED HANDOUT 0777 749 666
-description of goods
-names and addresses of buyer and seller
-method of delivery
d)receipt?(5)
-it is evidence of cash sale
-used to acknowledge cash payments
-indicates reasons for payments
-it shows description of goods
-it shows prices of goods and unit prices
2.a) Differentiate between trade discount and cash discount.(8)
Trade discount Cash discount
-it is deducted from the gross invoice -it is an allowance from the net invoice
price price
-not recorded in the books of accounts -recorded in the books of accounts
-given by one trader to another -given to any customer who pays
promptly
-deducted at the point of sale -deducted at the point of payment
BUSINESS ORGANISATIONS
1.a)Give three purposes of a Memorandum of Association, and(3)
-it states the name of the company followed by “limited”
-it states the purpose of the company
-it states the address of the company
RESULTS ORIENTATED HANDOUT 0777 749 666
tinofamba nevanofamba