Interactive

Learner Guide

Cambridge O Level
Commerce 7100

For examination from 2022

Version 2
Copyright © UCLES 2020
Cambridge Assessment International Education is part of the Cambridge Assessment Group. Cambridge Assessment is
the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which itself is a department of the
University of Cambridge.
UCLES retains the copyright on all its publications. Registered Centres are permitted to copy material from this booklet for
their own internal use. However, we cannot give permission to Centres to photocopy any material that is acknowledged to a
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Contents
About this guide 4

Section 1: Syllabus content - what you need to know about 5

Section 2: How you will be assessed 6

Section 3: What skills will be assessed 8

Section 4: Example candidate response 9

Section 5: Revision 12

Section 6: Useful resources 27

 Learner Guide

About this guide

This guide explains what you need to know about your Cambridge O Level Commerce course and examinations.
It will help you to:
9 understand what skills you should develop by taking this Cambridge O Level course

9 understand how you will be assessed

9 understand what we are looking for in the answers you write

9 plan your revision programme

9 revise, by providing revision tips and an interactive revision checklist (Section 5).

Cambridge O Level Commerce is recognised by universities and employers throughout the world.
Through this course you will gain an introduction to the nature of commercial activities, how these activities are affected
by changes in the commercial environment, and the impact they have on national and international consumers, producers,
retailers and wholesalers.
You will also develop your skills of enquiry, interpretation and communication.

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Section 1: Syllabus content - what you need to know about

This section gives you an outline of the syllabus content for this course. You will study the commercial environment in a
national and international context. Content is divided into 15 topics covering commercial activities and processes, and the
ways in which they are subject to changes brought about by political, social, technological and environmental factors.

Only the broad topics of the syllabus have been included here. In the ‘overview’ column, below, you are given a basic idea
of what each topic covers. Ask your teacher for more detail about each topic. You can also find more detail in the Revision
checklists of this guide.

Topic Overview
Production The chain of production. Primary (extractive) industries, secondary (manufacturing and
construction) industries and tertiary activities (commercial services and direct services).
Specialisation and division of labour. The relationship between industry, commerce and direct
services.
Retail trade The different types of retailer and the role of the retailer in the chain of distribution. Selling
techniques and methods including e-commerce.
Consumer credit The types and uses of credit. Calculations of the costs of credit. The suitability of different types of
credit in given situations.
Wholesale trade The role of the wholesaler in the chain of distribution. The role of intermediaries such as agents and
brokers.
Documents of trade The documents involved in trading. Calculations of amounts such as discounts.
International trade The importance and difficulties faced when trading internationally. The Balance of Trade and Balance
of Payments. The main functions of customs authorities. Evaluations of free trade, trading blocs and
protectionism.
Advertising The role of advertising and sales promotion in commerce. Explanation of the methods of appeal
(devices) and trends in advertising. Evaluations of the main forms of advertising media for different
situations.
Communications Importance of communications in trade and the global market. Explain how different methods
of communication might be used in a given situation. Identify trends and developments in
communication.
Transport An evaluation of the importance of transportation in the chain of distribution. The factors affecting
the choice of transport in given situations. The different transport documents. Developments in
transportation and the handling of goods and passengers.
Warehousing The role and types of warehousing.
Insurance Business and personal risks. The purposes and principles of insurance. How to arrange insurance
cover. Analysis of the factors influencing the level and of insurance. How to make an insurance claim.
Banking Banking services and the means of payment for home and international trade activities. The trends
in banking and their impacts.
The business unit Factors affecting the location of business. The difference between the public and private sectors. The
main forms of business organisation in the private sector including franchises and multinationals.
Finance Sources of finance for commercial activity. Ways to improve commercial performance.
Changing How the external environment affects commerce. The commercial and environmental effects of
environment of e-commerce. The impact of commerce on the environment. Consumer protection.
commerce

Make sure you always check the latest syllabus, which is available at www.cambridgeinternational.org.

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Section 2: How you will be assessed

You will be assessed at the end of the course using two components:
• Paper 1 Multiple Choice
• Paper 2 Written

Components at a glance
This table summarises the key information about each examination paper. You can find details and advice on how to approach
each paper in the ‘About each paper’ sub-section.

Component Time and Skills assessed Details Percentage of

marks qualification
Knowledge, application, analysis and 40 multiple-choice
Paper 1 1 hour
evaluation. questions covering the 30%
Multiple Choice 40 marks entire syllabus.
Some questions will require calculations.
Knowledge, application, analysis and Structured questions. Some
Paper 2 2 hours
evaluation. questions will be based on 70%
Written 80 marks stimulus response material.
Some questions will require calculations.

About each paper

Paper 1 Multiple Choice
Paper 1 contains 40 multiple choice questions. You must answer all of the questions. The questions may cover any part of the
syllabus and you answer on an answer sheet.
Paper 1 tests your knowledge, ability to apply that knowledge and techniques of analysis and evaluation.
Some of the questions will require you to use mathematical skills. These include being able to:
• analyse diagrams and charts of information such as graphs
• use numeracy skills such as addition, subtraction, multiplication and division
• calculate percentages and simple ratios.
Paper 2 Written
Paper 2 tests your knowledge and ability to apply, analyse and evaluate commercial concepts to given situations.
This paper contains structured questions of varying lengths from 1 mark to 8 marks. You must answer all of the questions and
the questions may cover any part of the syllabus.
• All the questions are based on commercial scenarios. Some questions will contain stimulus response material such as:

written text,
e.g. advertising
materials

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numerical
information, e.g.
balance sheets

visual information,
e.g. graphs and
diagrams

For Paper 1 and Paper 2 you will be required, in some questions, to use mathematical skills.

Question types
The time you spend on each question should be directly linked to the number of marks available. You must read the questions
carefully to make sure you know what you are being asked to do. For example:
`Explain two advantages to Hannah of being a sole trader’.
If you just include one advantage, this will limit the number of marks available to you. If you explain more than two
advantages, you will not increase the marks you gain, and it may waste valuable time that could be used on other questions.
Questions will vary in what they are asking you to do. The command word, e.g. Calculate, Compare, Describe, and the number
of marks available, will help you to see what level of detail you need to provide. There is a list of other command words and
their meanings in the syllabus here.
Questions using the command words ‘State …’ or ‘Define …’, require you to write clearly and precisely to show the examiner
you know and understand the term or word it is focused on.
Calculation questions which use the command word ‘Calculate …’, should always include your working out.
When answering 6 to 8 mark questions, you should always include examples and/or applications. These questions may ask
you to provide a two-sided answer, considering the advantages and disadvantages of an action. When making a comparison,
avoid using words such as easier, quicker or cheaper on their own. It is better to say `cheaper than…` or `quicker than…`.

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Section 3: What skills will be assessed

The areas of knowledge, understanding and skills that you will be assessed on are called assessment objectives (AO). The
examiners take account of the following skills areas (assessment objectives) in the examination papers.
• Knowledge and understanding
• Application
• Analysis
• Evaluation

Assessment objectives What does the AO mean? What do you need to be able to do?
(AO)
AO1 Knowledge and You will be asked to show that you Give precise definitions of key terms and state
understanding understand: methods of calculating figures such as profit and
• basic principles, techniques and ideas in revenue.
commerce
Be able to describe different commercial
• terms relevant to commerce activities such as large and small scale retailing.
• key features and purposes of commercial
Be able to describe and explain the purpose of
activities
documents.
• main documents used in commerce.
AO2 Application You should be able to: Use the ideas you have learnt in commerce to:
• apply ideas, terms and techniques • calculate figures from numbers given
• use data and information in written, • complete commerce documents
number and visual forms • select a suitable action for a given commerce
• make calculations. situation.
AO3 Analysis You should be able to: Explain the possible impacts of commercial
• identify and select the important issues in actions to the situation described in the question
a commercial situation material.
• explain written and numerical problems. Explain the positive and negative impacts.
Explain the meaning and possible effect of any
numbers provided.
AO4 Evaluation You should be able to: Show that you understand the difference
• make distinctions between evidence and between someone’s view (opinion) and facts that
opinion can be checked (evidence).
• make reasoned judgements and Make decisions based on the evidence you have
communicate them in an accurate and selected and explain why you have made this
logical manner. decision.

It is important that you know the different weightings (%) of the assessment objectives, as this affects how the examiner will
assess your work. For example, assessment objective 1 (AO1: Knowledge and Understanding) is worth 45% of the total marks
in Paper 1, and 28% of the total marks in Paper 2.

The approximate weighting allocated to each of the assessment objectives is summarised below.

Component AO1 % AO2 % AO3 % AO4 % Weighting of component in

overall qualification
Paper 1 Multiple Choice 45 35 10 10 30
Paper 2 Written 28 27 25 20 70
Weighting of AO in overall
33 29 21 17
qualification

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Section 4: Example candidate response

This section takes you through an example question and learner response from a Cambridge O Level Commerce past paper. It
will help you to see how to identify command words within questions and to understand what is required in your response. A
command word is the part of the question that tells you what you need to do with your knowledge. For example, you might
need to describe something, explain something, argue a point of view or list what you know.

All information and advice in this section is specific to the example question and response
being demonstrated. It should give you an idea of how your responses might be viewed by an
examiner but it is not a list of what to do in all questions. In your own examination, you will
need to pay careful attention to what each question is asking you to do.

This section is separated as follows:

Question
The command words in the question have been highlighted
and their meaning explained. This should help you to
understand clearly what is required by the question.

Example candidate response and examiner

comments
This is an answer by a real candidate in exam conditions.
Good points and problems have been highlighted by the
examiner.

How the answer could have been improved

This summarises what could be done to gain more marks.

Common mistakes
This will help you to avoid common mistakes. Candidates
often lose marks in their exams because they misread or
misinterpret the questions.

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Question

Discuss – this is the key instruction. This means that you should give the main
advantages and disadvantages of each option. You should give the benefits and costs of
remaining as a private limited company (Ltd) or changing to a public limited company.
There is further guidance in the question that you must also make a recommendation.

Example candidate response

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Examiner comment
There are 8 marks available for this question.
• 4 marks for knowledge and understanding of each type of business organisation
• 2 marks for analysis
• 2 marks for the evaluation deciding if the business should convert from a private to a public limited company.
The candidate in this answer has started by giving the benefits and problems of converting to a public limited company. The
candidate has explained the possible effect on the business of the benefit by explaining that huge amounts of capital can be
raised. The problem of loss of control is also explained. These explanations show analysis.
The candidate also shows some knowledge and understanding of the benefits of remaining as a private limited company.
However, there is very little explanation of these benefits, they are just statements. The candidate has commented upon both
choices, showing analysis.
The answer concludes with a recommendation of the best choice. The conclusion repeats some of the points already stated in
the answers, but the candidate mentions a new problem of documentation. This recommendation shows evaluation.

How the answer could have been improved

The answer showed the skills needed to gain marks in the top level for this question. Knowledge and understanding was
shown of both types of business organisation and an explained decision was made.
The answer could have been improved by stronger knowledge of the organisation of private limited companies, especially a
problem. There were also some irrelevant points made, such as economies of scale which can be gained by the growth of any
type of business organisation. These points did not add to the answer. The recommendation needed to be built upon with
more detailed analysis of both types of organisation to justify maximum marks.

Common mistakes
The most common mistakes when approaching the longer questions which require evaluation are:
• writing long lists of knowledge points
• producing general answers which are not applied to the business stated in the question and therefore losing the analysis
points
• ignoring one of the options mentioned in the question, and so producing an unbalanced answer
• repeating points made earlier in the answer in the conclusion
• not stating clearly, the decision made in the recommendation.

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Section 5: Revision
This advice will help you revise and prepare for the examinations. It is divided into general advice for all papers and more
specific advice for Paper 1, and Paper 2.
Use the tick boxes to keep a record of what you have done, what you plan to do or what you understand.

General advice
In order to do your best when answering questions in this examination you should know the meaning of each of the
command words used in questions. These words will indicate the type of answer you should provide.
In the examination read and re-read the question before attempting to answer it.
Take note of the number of marks awarded for the question, and make sure that you allocate your time effectively. A
question worth 2 marks should be given less time than a question worth 8 marks.
Make sure that you take notice of all the guidance given in the question including the command words.
Questions with 6–8 marks are marked on the quality of answer you provide, not the number of separate points listed.
Make sure that in these questions you develop each point made with either an application to a business, or an example, if
appropriate.
Make sure that you have shown your understanding of any technical terms in your answer and that you have considered
both benefits and costs, if the question will be marked for evaluation (Evaluate ...).
If the question asks you to decide a course of action, make sure that your decision is clearly stated. Always provide the
reasons for your decision and try not to repeat points already stated earlier in your answer.

Before the examination

Find out when the examinations are and plan your revision, so you have time to revise. Create a revision timetable and
divide it into sections to cover each topic – the revision checklist in the guide can help you with this.
Find out how long each paper is, how many questions you have to answer, how many marks there are for each question,
and work out how long you have for each question.
Know the meaning of the command words used in questions and how to apply them to the information given. Look at
past examination papers and highlight the command words and check what they mean.
Make revision notes. Try different styles of notes.
Work for short periods then have a break. Revise small sections of the syllabus at a time.
Test yourself by writing out key points, completing documents, etc.
Make sure you define, commerce terms accurately. E.g. cashless society is not that` people use less money`, it is when
people use less cash and use more electronic methods such as debit or credit cards instead.
Definitions must not reuse the words to be defined. E.g. Secondary stage of production is not just the second stage of
production. It is the stage where products are made or manufactured from raw materials.
Make your own dictionary or draw up a glossary of key terms for each section of the syllabus.
Look at graphs, diagrams and documents, etc. to find out what are their key features.
Practise calculations and completion of commerce documents.
Learn to spell commerce terms correctly.
Have a look at past questions so that you are clear of what to expect in an examination.
Look at mark schemes to help you to understand how the marks are awarded for each question.

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In the examination
Read the instructions carefully.
Do not provide more points than are needed, as this will not gain you more marks in the examination.
Plan your time according to the marks for each question. For example, a question worth three marks requires less time
and a shorter answer than one worth 10 marks. If a question has several parts, then the parts with more marks will need
more time and more developed answers.
Do not leave out questions or parts of questions. Remember, no answer means no mark.
Read each question very carefully.
• Identify the command words – you could underline or highlight them.
• Identify the other key words and perhaps underline them too.
• Try to put the question into your own words to understand what it is really asking.
Read all parts of a question before starting your answer. Think carefully about what is needed for each part. You will not
need to repeat material.
Look very carefully at the resource material you are given.
• Try using coloured pencils or pens to pick out anything that the question asks you about.
Answer the question. This is very important!
Use your knowledge and understanding. Do not just write all you know, only write what is needed to answer the question.
Plan your answers. Clear, concise, well-ordered, well-argued, well-supported answers get more marks than long,
rambling, muddled, repetitious answers. Quality is better than quantity.
Use commerce terms in your answers as much as possible.
Use the resource material given in the question to support your answer.
Figures and calculation can be used to support your answer. Use them whenever possible but do not copy long pieces of
information from the material.
Use the information given in the stimulus response material even when it is not required specifically by the question.
Make sure your writing is clear and easy to read. It is no good writing a brilliant answer if the examiner cannot read it.

Paper 1 advice
Allocate your time effectively each question should take a maximum of 1½ minutes to complete.
If you change your mind about an answer, follow the instructions on the exam paper which will clearly show how to alter
your marks on the answer sheet.
Attempt all questions, even if you don’t know the answer.

Paper 2 advice
Notice the number of marks awarded for the question.
Use your time effectively, spend longer on questions with a higher number of marks.
Read and re-read the questions before answering to make sure you know the level of detail needed in the answer.
Underline the command words in the question to remind you how to answer the question.
Underline other key words that will help you in making any conclusion such as always or best.
Include your working out in all calculation questions – this is very important.
In the questions with 6 or 8 marks, it is the quality of the response that decides the mark. You must fully explain each
point made showing your skills of application, analysis and judgement. Long lists or bullet points of knowledge will not
gain high marks.

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Revision checklists
In the next part of this guide we have provided some revision checklists. These include information from the syllabus that you should revise. They don’t contain all the detailed knowledge
you need to know, just an overview. For more detail see the syllabus and talk to your teacher.
The table headings are explained below:

Topic You should be able to R A G Comments

These are the details of the 15 The content of this column explains You can use the tick boxes to show when you have revised You can:
topics covering commercial what you need to be able to do and an item and how confident you feel about it.
• add further information of your own, such
activities and processes which the content of the syllabus you need to
R = RED means you are really unsure and lack confidence; as examples of business
are listed in the syllabus. cover before the examinations.
you might want to focus your revision here and possibly • add learning aids, such as rhymes, poems or
talk to your teacher for help. word play
A = AMBER means you are reasonably confident but need • pinpoint areas of difficulty you need to
some extra practice. check further with your teacher or
textbooks
G = GREEN means you are very confident.
• include reference to a useful resource.
As your revision progresses, you can concentrate on the
RED and AMBER items in order to turn them into GREEN
items. You might find it helpful to highlight each topic in
red, orange or green to help you prioritise.
Note: the tables below cannot contain absolutely everything you need to know, but it does use examples wherever it can.

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Paper 1 and Paper 2

Production
Topic You should be able to R A G Comments
1.1 The chain of production • define the term production

• show understanding of the production of goods and

• services to satisfy human wants and needs

1.2 Primary (extractive) • describe these types of industries and activities with examples
industries, secondary
(manufacturing and • explain how people working in primary industries, secondary industries and
construction) industries and tertiary activities are part of production
tertiary activities (commercial • discuss the relative importance of each type of industry within a country
services and direct services)
1.3 Specialisation and division • explain the terms specialisation and division of labour
of labour
• describe the different forms of specialisation by: country, region, town, firm,
factory, individual
• discuss the advantages and disadvantages of division of labour to a
manufacturer and a worker
1.4 Commerce • define the terms trade and commerce showing the differences between them

• discuss how distribution assists commercial activity

• explain the nature, purposes and importance of trade, both at home and
overseas
• discuss how advertising, communications, transport, warehousing, insurance,
banking and finance help trade to function
• evaluate the extent to which businesses are involved in trade and/or
commerce
1.5 The relationship between • discuss ways in which industry, commerce and direct services are inter-
industry, commerce and related and interdependent
direct services

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Retail trade
Topic You should be able to R A G Comments
2.1 The role of the retailer in • identify functions of the retailer as the middleman between manufacturer
the chain of distribution and consumer
• evaluate possible responses to changes in customer requirements and
expectations
2.2 Types of retailer • describe the characteristics of different types of retailer, including: large and
small (hypermarkets, supermarkets, multiples, department stores, speciality
shops, unit/independent retailers, street markets)
• discuss the advantages and disadvantages of each type of retailer

2.3 Large-scale and small- • discuss the advantages and disadvantages of large-scale retailing
scale retailing
• discuss the effects of large-scale retailers on wholesalers, other retailers and
consumers
• explain why the small-scale retailer often survives, including: personal
service, opening hours, additional services provided
2.4 Selling techniques and • discuss the importance, advantages and disadvantages of selling techniques,
methods and the implications including: branding, own brands, logos, packaging, self-service, after-sales
of e-commerce service, barcoding, Electronic Point of Sale (EPoS), direct mail, factory
outlets, shopping centres and internet auctions
• describe the use of computers to aid retailing

• describe characteristics of mail order, telesales, television shopping, online

shopping (e-tailing) and discuss the advantages and disadvantages to
retailers and consumers of these methods of selling
• evaluate the likely implications for retail outlets and consumers of the
growth of online shopping and e-commerce
2.5 Trends in retailing • describe trends in retailing, including: omnichannel retailing, self-service
check-outs, development of loyalty programmes, virtual retailing, mobile
retailing (m-commerce), shopping anywhere/anytime

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Consumer credit
You should be able to Ways to practise skills R A G Comments
3.1 Use of credit • outline the concept of credit

• analyse reasons for the increased use of credit

• discuss the advantages and disadvantages of credit to the buyer and the
seller
3.2 Types of credit 3.2.1 Hire purchase
• identify main features

• discuss advantages and disadvantages to consumers and retailers

• explain how the finance of hire purchase operates compared with extended
credit
3.2.2 Extended credit (deferred payments)
• identify main features

• discuss advantages and disadvantages to consumers and retailers

3.2.3 Store cards

• identify main features

• discuss advantages and disadvantages to consumers and retailers

3.2.4 Credit cards

• identify main features

• discuss advantages and disadvantages to consumers and retailers

3.2.5 Informal credit

• identify main features

• discuss advantages and disadvantages to consumers and retailers

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Topic You should be able to R A G Comments

3.3 Suitability of different • evaluate the suitability of different methods of credit in given situations
types of credit (including calculations of the cost associated with different methods of
credit)

Wholesale trade
Topic You should be able to R A G Comments
4.1 The role of the wholesaler • explain different patterns of distribution and evaluate their use in given
in the chain of distribution situations
• analyse trends in wholesaling: forces making for the elimination and the
survival of the independent wholesaler
4.2 Functions and services of • describe functions and services provided by the wholesaler
the wholesaler
• evaluate the importance of the wholesaler to the manufacturer and retailer

4.3 Intermediaries • evaluate the role of agents (including brokers and factors) and export
merchants in international trade

Documents of trade
Topic You should be able to R A G Comments
5.1 Documents of home trade • identify and interpret key information and explain the purposes of
documents used in home trade, including: enquiry, quotation, price list,
order, invoice, advice note, delivery note, credit note, statement of account,
receipt
5.2 Terms of payment • define the terms cash discount, trade discount and mark-up

• calculate cash discount, trade discount and mark-up and evaluate their use in
given situations (including calculations)

International trade
Topic You should be able to R A G Comments
6.1 The importance of • define the term global market
international trade
• explain the benefits of international trade to a country

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Topic You should be able to R A G Comments

• calculate cash discount, trade discount and mark-up and evaluate their use in
given situations (including calculations)
• define imports, exports, visible and invisible trade

• apply these terms to given products or services

• examine the interdependence of countries within the global market

6.2 Balance of Trade and • differentiate between Balance of Trade and Balance of Payments
Balance of Payments
• calculate and interpret statistics relating to international trade, including
Balance of Trade and Balance of Payments from given figures
• explain how commercial activities may affect the Balance of Trade/Balance
of Payments
6.3 Customs authorities • describe the main functions of customs authorities, including: collection
of duties, collection of trade statistics, enforcement of trade restrictions,
supervision of bonded warehouses
• explain how the work of customs authorities affects trade

6.4 Free trade, trading blocs • describe free trade

and protectionism
• describe the main features and aims of a trading bloc

• discuss the advantages and disadvantages of joining a trading bloc, e.g.

ASEAN, European Union, SADC
• evaluate the importance of free ports in international trade

• explain how restrictions on trade are applied, including: licences, tariffs,

quotas, embargoes and their possible effects on commercial activities
6.5 Difficulties faced by • describe the main difficulties, including: distance, language, methods of
exporters and importers payment, documentation, transport, different customs, non-payment,
currencies, exchange rates, duties, competition

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Advertising
Topic You should be able to R A G Comments
7.1 The role of advertising • show understanding of the purposes of advertising

• describe the types of advertising: informative, persuasive, collective (generic)

and competitive and explain when they would be used
• discuss the advantages, dangers and criticisms of advertising when selling
goods and services

7.2 Media • identify the main forms of advertising media, including: television, radio,
internet, cinema, newspapers (local and national), magazines, trade journals,
trade fairs and shows, leaflets/flyers, packaging, direct mail, sponsorship,
catalogues/brochures, digital billboards, transport vehicles, displays – point
of sale and window, neon lights, signs
• discuss the advantages and disadvantages of the main forms of advertising
media
• evaluate the factors affecting choice of medium in given situations

7.3 Methods of appeal • explain methods of appeal (devices), including: colour, emotions, ambition,
(devices) famous people, music
• select methods of appeal in given situations

7.4 Sales promotion • distinguish between advertising and sales promotion and explain why
businesses use sales promotions
• describe methods of promotion, including: point of sale, offers, sponsorship,
displays, competitions, coupons, sales periods, loss leaders
• evaluate the factors affecting choice of sales promotion methods in given
situations
7.5 Trends in advertising • describe trends, including digital billboards, product placement, importance
of internet advertising, mobile phone advertising, use of social media, digital
video

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Communications
You should be able to Ways to practise skills R A G Comments
8.1 Importance of • show understanding of the importance of communications in trade and the
communications in trade and global market
the global market • evaluate the need for rapid and accurate communication in trade and in the
global market
8.2 Methods of • describe methods of communication, including: oral, written, telephonic,
communications, internal and electronic (including: mobile phones, internet, intranet, email,
external teleconferencing, videoconferencing) and explain how each might be used in
a given situation
• discuss factors affecting choice of method in given situations

8.3 Postal services • describe postal services

• explain in what circumstances different postal services might be used

8.4 Trends in communication • identify trends and developments in communication, including: computer
hardware (tablets, smartphones, in-touch interfaces), use of social media,
application stores (app stores) and importance of the mobile phone as a
multi-functional tool
• identify main features

• discuss advantages and disadvantages to consumers and retailers

Transport
You should be able to Ways to practise skills R A G Comments
9.1 Transportation • evaluate the importance of transportation in the chain of distribution

• describe the characteristics of different methods: road, rail, air, sea,

waterways, pipeline
• describe different modes of transport used for road, rail, air and sea,
including: passenger train, goods train, ferry, tanker, bulk carrier, cruise liner,
container ship, cargo liner, delivery vans, buses, shared taxis, passenger
aircraft, freight planes

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Topic You should be able to R A G Comments

• evaluate the factors affecting choice of method in given situations

• evaluate the benefits to a business of having own transport

9.2 Containerisation • identify main features

• discuss advantages and disadvantages

• discuss reasons for increased use

9.3 Ports and airports • describe services offered at seaports and airports for the handling of goods
and passengers
9.4 Transport documents • identify and use the key information and explain the purposes of transport
documents: delivery/consignment note, bill of lading, air waybill (including
calculations)
9.5 Developments and trends • explain developments and trends in the handling of goods and passengers,
in transportation including: growth of air freight, express road routes, changes in use of rail
transport, high speed trains, mass rapid transport, importance of logistics,
increased use of freight forwarders, demands on transport from global
market

Warehousing
You should be able to Ways to practise skills R A G Comments
10.1 Role of warehousing • describe warehousing functions

• evaluate the importance of warehousing to businesses and trade, including:

links with seasonal production, demand, protecting supply and price stability
10.2 Types of warehouse • identify the main features of bonded, cold storage, cash and carry,
manufacturers’ and retailers’ warehouses and large-scale retailers’ regional
distribution centres
• evaluate the importance of each in either home or international trade

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Learner Guide

Insurance
Topic You should be able to R A G Comments
11.1 Purposes of insurance • describe the purposes, including: risk reduction, compensation, financial
protection, business confidence, investment
• evaluate the importance of pooling of risk

11.2 Business and personal • identify and describe the main types of business and personal risk and explain
risks why they are important
• distinguish between insurable and non-insurable risks

• explain why some risks are not insurable

11.3 Insurance principles • explain the essential elements of insurance principles, including: indemnity
(including contribution and subrogation), insurable interest, utmost good
faith and explain how they are applied
• evaluate the importance of insurance principles when taking out insurance
and making a claim in given situations (including calculations relating to
insurance premiums and compensation payments)
11.4 Effecting insurance cover • outline procedures, including calculating premiums

• identify the main documents of insurance, including: proposal form, cover

note, policy and explain their purposes
• evaluate the role of an insurance broker

11.5 Statistical basis of • analyse factors influencing the level of insurance premium
insurance
• evaluate insurance quotations

11.6 Effecting a claim • outline procedures, including claim form

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 Learner Guide

Banking
Topic You should be able to R A G Comments
12.1 Banking services • distinguish between deposit/savings accounts and current/cheque accounts

• describe services and documents provided to personal and business

customers, including: paying-in slip, bank statement, night safe, ATM
services, internet banking, telephone banking
• explain when each service and document would be used

12.2 Means of payment for • identify the characteristics and purposes of means of payment in home and
home and international trade international trade, including: cash, cheques, credit transfers, standing orders
activities (banker’s order), direct debits, debit cards, credit cards, electronic transfers,
documentary credits (letters of credit), bank drafts
• evaluate factors affecting choice of method of payment in given situations

12.3 Trends in banking • describe trends, including mobile and digital banking, the mobile wallet

• discuss the concept of the cashless society

• evaluate the implications of internet banking, including the closure of bank

branches

The business unit

You should be able to Ways to practise skills R A G Comments
13.1 Location of a business, • evaluate factors to be considered, including: labour, markets, transport,
including retail units power and raw materials, competition, suppliers, communication,
government influence in given situations
13.2 Public and private • distinguish between enterprises in the public and the private sector
sectors
• identify the characteristics of public sector enterprises

13.4 Franchises • describe the main characteristics of franchises

• discuss the advantages and disadvantages of franchises for particular

businesses

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Learner Guide

You should be able to Ways to practise skills R A G Comments

13.5 Multinationals • define multinational company

• explain reasons for the existence of multinationals in the global economy

• evaluate the importance of multinationals in the global economy

• evaluate the opportunities offered to, and conflicting interests of,

multinational companies locating in individual countries

Finance
Topic You should be able to R A G Comments
14.1 Sources of finance • distinguish between long-term and short-term finance

• discuss the main features, advantages and disadvantages of:

– long-term finance, e.g. shares (ordinary and preference), debentures,
mortgages, loans, sale and leaseback
– short-term finance, e.g. overdraft, factoring, leasing, trade credit, hire
purchase
• describe methods of self-financing, including: retained earnings (retained
profits), sale of assets, savings
• evaluate the suitability of choice of finance (including self-financing) in given
situations
14.2 Finance for commercial • identify, define, calculate and examine the importance in commercial
activity situations of capital (fixed capital), working capital, assets and liabilities,
sales turnover, rate of inventory turnover, gross profit and profit for the year
(net profit)
14.3 Improving commercial • explain methods of improving sales turnover, rate of inventory turnover,
performance profit and working capital, including: reducing expenses, increasing mark-up,
changing prices, improving marketing, introducing new products in given
situations

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 Learner Guide

Changing environment of commerce

Topic You should be able to R A G Comments
15.1 Commercial activity and • define the term environment of commerce
the external environment
• identify and explain the external PEST (political, economic, social,
technological and environmental) factors that affect commercial activities
15.2 Commercial and • describe the characteristics of an e-shop, including: use of website, wide
environmental effects of range of goods, delivery dates, return option
e-commerce • explain commercial effects, including: change in supply, such as retailers
supplying directly from warehouses rather than from their stores, more
communications (online orders), smaller packages leading to greater use of
couriers and air transport, opening of new consumer markets such as China
and India
• explain environmental effects, including: increased use of transport for
deliveries, greater vehicle emissions, less lighting needed in stores, greater
use of electricity for use of computers, search for sustainable solutions for
the movement of goods
15.3 Commerce and the • identify negative impacts of commerce on the environment, including:
environment exploitation of some countries’ natural resources, dangerous products being
extensively advertised, retail developments spoiling the natural environment
• explain how businesses attempt to deal with environmental impacts,
including: recycling, using less packaging, ethically-produced goods,
environmentally friendly products
15.4 Consumer protection • evaluate the growing importance of consumer protection in the global
economy
• describe the actions buyers or sellers might take in given situations,
including: making a complaint, dealing with faulty or poor quality goods or
services

26 Cambridge O Level Commerce 7100

Learner Guide

Section 6: Useful resources

Endorsed by Cambridge: Endorsed resources have been through a rigorous quality-assurance process to make sure they
closely reflect the syllabus and are appropriate for Cambridge schools worldwide.

This title is designed to be accessible for students studying in a second language, while
providing depth and stretch for all students. It provides varied activities and structure and
multiple-choice practice questions at the end of every chapter. Key terms and important
terminology are highlighted and explained.
Publisher: Hodder Education
Author: Whitcomb, A
ISBN: 9781471859656
Published: 2015
Website: www.hoddereducation.co.uk

This title features up-to-date real-life examples, activities and practice questions to help
learners apply commercial theory. Key terms are highlighted and explained and there are
summary sections at the end of each chapter.
Publisher: Cambridge University Press
Author: Trigwell-Jones, M
ISBN: 9781107579095
Published: 2016
Website: education.cambridge.org

Cambridge O Level Commerce 7100 27

Cambridge Assessment International Education
The Triangle Building, Shaftesbury Road, Cambridge, CB2 8EA, United Kingdom
t: +44 1223 553554
e: info@cambridgeinternational.org www.cambridgeinternational.org

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