Angel International SchoolManipay

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1 Grade 10 Angel International SchoolManipay 2 nd Term Examination March, 2016 Commerce Duration: 3 Hours Index No:- 1 The diagram shows the parts of production. production What is X? X commerce direct services A B C D aids to trade industry trade warehousing 2 Specialisation within a firm results in A decreased output. B greater stability of employment. C increased use of automation. D longer periods of worker training. 3 Commercial services and direct services are interrelated. Which example illustrates this statement? A a farmer paying a vet to vaccinate his cattle B a lawyer drawing up a contract between a wholesaler and a retailer C an architect preparing plans for a new car factory D a teacher preparing students for an examination in Commerce 4 Which retail outlet offers a wide variety of services to consumers? A department store

2 B mobile shop C multiple chain store D supermarket

3 5 Why do manufacturers brand their goods? A to enable customers to recognise the goods B to make the handling of goods easier C to reduce the damage to goods D to show the date by which the goods must be sold 6 What is a characteristic of mail order trading? A an elaborate showroom for goods B expensive town centre premises C high costs of postage and advertising D the elimination of bad debts 7 Which question is most important for a customer considering buying goods on credit? A Are the goods fit for the purpose? B Do the goods represent value for money? C What discount will be given by the retailer? D What is the difference between the cash price and the credit price? 8 Seals of approval on manufactured goods mean that A they are cheaper than other goods. B they have been advertised to persuade customers to buy. C they have been tested for quality. D they were made by a well-known company. 9 The decline of the independent wholesaler has been caused partly by the growth of A automatic vending machines. B cash and carry warehouses. C large-scale retailers. D mobile shops.

4 10 A general wholesaler acts as a middleman between the manufacturer and the retailer. Which function carried out by the wholesaler benefits both the manufacturer and the retailer? A clearing stocks to enable production to continue B giving help and advice on the use of new products C providing a wide variety of goods D taking the risks of losses from unsold goods 11 The following advertisement recently appeared on the Internet. Interspere moving goods to customers worldwide coverage packing containerisation insurance arranged customs clearance What type of business is Interspere? A B C D a freight forwarding company a warehousing company a wholesaler an export merchant 12 Malay Motors Ltd produces parts for cars. The manager wants to find buyers for the goods which are kept at the factory and which Malay Motors Ltd will deliver to the buyer. She decides to use the services of an intermediary to find buyers for the goods. Which intermediary is she most likely to use? A broker B C D del credere agent factor forwarding agent 13 What would the supplier do when goods have been overcharged on an invoice? A give a cash discount B issue a credit note C provide a new order form D send an advice note

5 14 The diagram shows the statement of account for ABC Ltd from New Fashion Wholesalers. STATEMENT OF ACCOUNT New Fashion Wholesalers Crown Avenue To: ABC Ltd Month ending: 31 May Ming Street Singapore Terms: 5% 14 days Date Details Debit Credit Balance $ $ $ 01 May Balance owed May Cheque Cash Discount May Invoice May Invoice May Credit Note 40 X What is the balance on 27 May 2015 marked X on the statement of account? A $710 B $750 C $790 D $ On which document would the amount of trade discount be shown? A delivery note B enquiry C invoice D order form 16 A shop sells a television for $750. The shop had a mark-up of 20% on the television set. What price did the shop pay for the television? A $150 B $600 C $625 D $750

6 17 Why does a country import raw materials from other countries? A to assist home production B to improve the balance of trade C to obtain customs revenue D to protect home industries 18 The diagram shows imports and exports of a country. exports of fish $80m imports of food $180m imports of fuel exports of palm oil $100m COUNTRY $110m tourist services for salaries of teachers visitors from other and doctors from countries other countries $190m $150m What is the total value of exports for this country? A $190m B $340m C $380m D $530m 19 Enver has purchased jewellery from an importer. The jewellery is held in a bonded warehouse at the airport. What must Enver do before he is allowed to take his jewellery from the warehouse? A arrange for insurance against the loss of the jewellery B find a buyer for the jewellery C inform the customs officers about the jewellery so they can record it as an import D pay the customs officers any import duty that is due on the jewellery

7 20 The advertisement shows a world-famous tennis player using a popular brand of sports equipment. All match winners prefer Tenspin Which method of appeal is being used in the advertisement to attract a consumer? A B C D ambition good health romance social acceptance 21 Which method of sales promotion would be suitable for increasing the sales of toothpaste for a short period of time? A after-sales service B competition prize draw C loyalty / reward programme D money-off coupon 22 Why would Wilby Ltd make increasing use of the Internet to advertise its products? A to allow competitors to see what the company is selling B to enable the company to target consumers in its local area C to reduce the need to update the website D to show detailed information about its range of products

8 23 Why is communication important in the global economy? A to advertise and promote goods nationwide B to enable companies to contact customers worldwide C to move goods urgently required D to transport people over long distances 24 An export sales manager needs to have a meeting of overseas agents. Visual aids will be shown at this meeting. Which telecommunications service would she use? A B C D Internet intranet videoconferencing 25 The transport of goods has been made easier by A express road routes in many countries. B fewer facilities at many airports. C increased checks by customs officers. D more detailed inspections of railway networks. 26 What is a function of a port authority? A collecting customs duties B controlling movement of prohibited goods C hiring out ships D providing refuelling facilities 27 Which process is not carried out in a bonded warehouse? A B C D blending bottling manufacturing selling

9 28 Mr Chang is advertising his cash and carry warehouse. His advertisement includes some information which is not accurate for a cash and carry warehouse. Chang s Cash and Carry Warehouse offers discounted prices extended credit free car parking variety of goods open 7 days a week! Which part of his advertisement is not accurate? A B C D discounted prices extended credit free car parking variety of goods 29 Mrs Smith owns a small general store. Why does she have various insurance policies covering different aspects of the business? A to guard against risk B to help customers C to make a profit D to reduce prices 30 What does consequential loss insurance cover? A an injury to a customer B expenses while a business is closed for repairs after a fire C money stolen by a dishonest employee D the life of an important employee 31 A cheque that is crossed A can be cashed over a bank counter. B has been cancelled. C may be used by a third person. D must be deposited into a bank account.

10 32 Jenni has decided to pay for her holiday air flight tickets by using her credit card. What is the advantage of paying by credit card? A Commission is charged on the transaction. B Interest will be charged. C Payment can be postponed until the end of the month. D Payment is made directly from her bank account. 33 Sanjay purchased a washing machine from Coolray Ltd. He paid the full amount online through the company s website. What is the most likely method of payment Sanjay used to pay for the washing machine? A cheque B debit card C direct debit D standing order 34 Why would a business use an Internet bank account? A to obtain cash using an ATM B to pay in cash and cheques received C to seek advice on investments D to set up direct debits and standing orders 35 Which industry would benefit most from being located close to the raw materials it uses? A car manufacturing B iron and steel making C toy manufacturing D watch making 36 Which type of business organisation is controlled by the government? A B C D partnership private limited company public corporation public limited company

11 37 Which information is not contained in a partnership deed for a general partnership? A the conditions under which new partners may be introduced B the method of sharing profits and losses C the responsibilities of each partner in the business D the statement that the liability of the partners is limited 38 Which statement is true of a bank overdraft? A Collateral security must be provided. B Interest is calculated on a daily basis. C It is a formal way of borrowing money. D It is available to all applicants. 39 A clothing retailer says that her rate of turnover is five. What does this mean? A The average stock held remains with the retailer for five weeks. B The mark-up is 5% more than the cost of the clothes. C The profits are 5% of the capital invested. D The retailer sells five times the average stock held each year. 40 The table shows the value of Chandyo Manufacturing Company s assets. $ cash debtors furniture and equipment land stock vehicles What is the value of Chandyo Manufacturing Company s fixed assets? A $ B $ C $ D $

12 Answer any four questions. E Pashbury is a small inland town. It has a range of shops, a fast food restaurant, a small industrial area with factories and warehousing, a bank which opens twice a week, a post office, and a bus service to neighbouring towns but no railway. Mr Patel, who lives in Pashbury, has commented that the town is not concerned with commerce. Do you think that he is correct in saying this? Give reasons for your answer. [6] The factories and warehousing in Pashbury are involved in production. (i) Giving one example, explain what is meant by production. [3] (ii) Name one type of warehouse likely to be found in Pashbury. [1] (c) The fast food restaurant operates as a franchise. (i) What is meant by a franchise? [2] (ii) Explain two likely advantages to the owner of the fast food restaurant of being a franchise. [4] (iii) Why are commercial documents used when supplies are required? [4] 2 Drools Ltd manufactures and packages chocolates. The company sells to many different customers. (a) Explain how packaging adds value to the chocolates. [3] (b) Explain how communication is likely to assist Drools Ltd to sell to many different customers. [4] (c) Drools Ltd advertises in magazines, newspapers and on television. (i) Explain why Drools Ltd needs to use all these three advertising media. [4] (ii) Give one example of an advertising device Drools Ltd might use in its advertisements. [1] (d) Drools Ltd is experiencing a shortage of working capital. (i) What is meant by working capital? [2] (ii) Drools Ltd might improve its working capital by using some of the following options: ask customers to pay as soon as possible increase the company s overdraft negotiate longer trade credit with suppliers. Discuss each option. What would you recommend Drools Ltd to do? Give reasons for your answer. [6]

13 3 The notices in Fig. 1 are displayed in shop windows. ANNUAL SALE LAST FEW DAYS FAB MULTIPLE CHAIN STORE SUPER DUO STORE CLOSING DOWN SALE AT THIS BRANCH CONTINUE TO SHOP ONLINE 25% OFF MARKED PRICE USING OUR WEBSITE FOR THIS WEEK ONLY Fig. 1 Use the information given in Fig. 1 to help you to answer the following questions. (a) A customer bought a coat at the marked price of $200 this week from Super Duo Store. How much did she pay? Show your working. [3] (b) Explain why some retailers hold sales but others do not. [4] (c) Fab Multiple Chain Store is closing some of its branches due to increased costs. (i) Define the terms costs and price. [2] (ii) Assess the impact of the growth of supermarket chains on multiple chain stores and other types of large-scale retailers. [6] (d) (i) Explain why companies, such as Fab Multiple Chain Store, choose to sell goods online. [4] (ii) State one reason why it is expensive for companies to sell online. [1]

14 4 Countries, such as Japan, import and export visible and invisible items. (a) Using examples, distinguish between visible and invisible items. [4] (b) A Japanese company has purchased machinery costing $ from a company in the US. (i) How will this purchase affect Japan s Balance of Payments? [1] (ii) (iii) (iv) Name and describe one means of payment the Japanese company could use to pay for the machinery. [3] State two insurance risks against which the machinery should be insured whilst being transported. [2] The US company could send the machinery to Japan using either air freight or container ship. Discuss both options. Which would you recommend? Give reasons for your answer. [6] (c) Explain how the Japanese home-produced goods. Government could restrict imports which compete with [4] 5 Comidex International Ltd is seeking insurance for its motor racing team. (a) (i) Explain the purposes of an insurance proposal form. [4] (ii) (iii) State and explain one principle of insurance which must be considered when completing an insurance proposal form. [3] Discuss whether or not Comidex International Ltd will have difficulty in obtaining insurance for its motor racing team. Give reasons for your opinion. [6] (b) Comidex International Ltd may need additional finance in order to develop the motor racing team. (i) State one example of internal finance. [1] (ii) Explain why it would use internal finance rather than a bank loan. [4] (c) Explain why international motor racing stars often appear in advertisements. [2]

15 6 Fig. 2 shows the percentage use of drinks cans in different parts of the world in PERCENTAGE SHARE OF THE TOTAL USE OF DRINKS CANS IN 2014 N O R H T A M R I E C A 3 %0 E U R O P E 2 2 % S O U T A HAMERIC ASIA15% 1 %6 A U A % FRICA10 S T A A S R L I A 7 % Fig. 2 Use Fig. 2 to help you to answer the following questions. (a) Name one type of drinks product packaged in a can. [1] (b) 120 billion drinks cans were used worldwide in (i) Using Fig. 2, calculate the number of drinks cans used in North America. Show your working. [2] (ii) 65% of all the drinks cans were used by ten multinational companies in Calculate the average number of drinks cans used by one of these companies in Show your working. [3] (c) Explain why there are multinational companies in the worldwide drinks market. [4] (d) Sigma is a manufacturer of drinks cans. It is based in Canada. (i) Sigma wishes to expand its market into Europe. It is considering the following options: opening a factory in Germany, a member of the European Union, to manufacture the drinks cans using agents to sell its drinks cans to large-scale producers of drinks. Discuss both options. Which would you recommend? Give reasons for your choice. [6] (ii) Sigma trades with buyers in Australia. Why might the distance between Canada and Australia cause difficulties for Sigma? [4]

16 7 Salima imports computers and sells them in bulk to many different kinds of retailers. (a) Explain how Salima is engaged in trade. [2] (b) Identify four services provided by a bank that Salima is likely to use. [4] (c) A retailer has returned a computer to Salima saying that it is not fit for purpose. State three actions that Salima should take. [3] (d) Many people buy computers using their credit cards. (i) What should they do to avoid paying interest on their credit card bills? [1] (ii) Explain one advantage and one disadvantage to retailers of accepting credit card payments. [4] (e) Salima is now considering selling directly to consumers rather than through retailers. Discuss whether or not she should do this. Give reasons for your opinion. [6

17 8 The pictures in Fig. 3 show the side of a truck carrying a container and the back of a refrigerated truck. They are owned by Gupta International Transport, a distribution company operating at home and abroad. GUPTA INTERNATIONAL TRANSPORT DISTRIBUTION ANYWHERE, ANYTIME GUPTA INTERNATIONAL TRANSPORT REFRIGERATED VEHICLE CONTAINER TRUCK REFRIGERATED TRUCK Fig. 3 Use Fig. 3 to help you to answer the following questions. (a) Explain two reasons why transport is important in international trade. [4] (b) Explain what is meant by distribution. [2] (c) Explain why many companies use Gupta International Transport to move their goods rather than using their own transport. [4] (d) (i) Gupta International Transport has a website. State three reasons why it uses this method of communication. [3] (ii) Why does Gupta International Transport have its name on the outside of its trucks? [1] (e) Discuss whether or not Gupta International Transport needs warehousing as part of its business. Give reasons for your answer. [6]

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