‘0’ LEVEL COMMERCE

QUESTIONS BOOKLET

PAPER 1

7 SETS

280 QUESTIONS

Tinofamba nevanofamba
1|Page
 COMMERCE EXAM PANEL
COMMERCE
FORM 4 –EXAM 1
REVISION EXAMINATION
COMMERCE TIME: 1 HOUR 15MINUTES

Answer all questions. For each question there are four possible answers A, B, C and D.
Choose the one you consider correct and record your choice in the given box

1 In which sector of production is commerce found?

A industry
B primary
C secondary
D tertiary

2 Which factor of production mobilizes other factors of production?

A land
B enterprise
C capital
D labour

3 Which of the following is a human want?

A housing
B bread
C television
D shelter

4 In which stage of production is more value added to goods?

A direct production
B primary production
C secondary production
D subsistence production

5 Which is the correct order in the production process?

A commercial → secondary → primary

B commercial → primary → secondary
C primary → secondary → commercial
D primary → commercial → secondary

2|Page
6 Which is not an advantage of specialisation?

A craftsmanship is developed
B more goods are produced
C prices of goods are reduced
D quality of goods is improved

7 Which is a producer good?

A car
B tractor
C television
D umbrella

8 The reward for enterprise is

A wages.
B rent.
C profit.
D interest.

9 What is the name of an agent who buys and sells goods on a commission basis for
another person?

A a factor
B a manufacturer
C a retailer
D an underwriter
10 What happens when a business organization becomes a public limited company?

A It becomes part of the public sector of business.

B It changes to a government agency.
C It expands into a partnership.
D It offers shares for sale to the general public.

11 What is a person who owns a small business and works for himself called?

A employee
B manufacturer
C shareholder
D sole trader

3|Page
12 The diagram shows some trading organizations.

Private Enterprise

X Partnership Companies

Private Public
Companies Companies

What does X represent?

A government
B sole trader
C trade
D public enterprise

13 What would a multinational consider to be the main reason for locating a branch in
a developing country?

A to create jobs in that country

B to improve the company’s image
C to increase the country’s workforce skills
D to make use of cheap labour

14 Which is a function of the Consumer Council of Zimbabwe (CCZ)?

A advise consumers of best buys

B establish consumer shops
C fix prices of goods
D test goods for quality

15 Which Act ensures that certain medicine should only be sold with a prescription?

A Drugs Act
B Health Act
C Hire Purchase Act
D Weight and Measures Act

16 Which is unethical behaviour in business?

A respect
B honest
C corruption
D fairness

4|Page
17 The term “limited” in an incorporated business means that

A the amount of goods sold is limited.

B the liability of shareholders is limited.
C the number of shares is limited.
D the number of shareholders is restricted.

18 Which is not a characteristic of an entrepreneur?

A self confidence
B self discipline
C self minded
D self starter

19 The purpose of an indent is to state the

A goods available.
B goods delivered.
C goods insured.
D goods required.

20 A document used when goods are transported by sea is a bill of

A carriage.
B entry.
C exchange.
D lading.

21 What is not considered when calculating the balance of trade?

A duty paid for imported goods

B entry fees paid by tourists
C value of goods exported
D value of goods imported

22 Which process is not involved in transport?

A e-tailing
B e-ticketing
C toll gates
D tracking system

23 A wholesale formed by farmers is a

A cash and carry wholesaler.

B co-operative wholesale society.
C general wholesaler.
D specialist wholesaler.

5|Page
24 Which is a function of the Standards of Zimbabwe (SAZ)?

A advise consumers of best buys

B establish consumer shops
C fix prices of goods
D test goods for quality

25 Sale of Goods Act deals with

A prices of goods.
B quality of goods.
C value of goods.
D fitness of goods.

26 Which statement represents a disclaimer clause?

A trespassers will be prosecuted

B goods left at owners risk
C quality guaranteed or your money back
D do not use for more than 10 days without consulting your doctor

27 Which type of business unit has a maximum of 20 members?

A partnership
B public company
C public corporation
D private limited company

28 Which method of payment enables settlement of a foreign bill urgently?

A billof exchange
B cable transfer
C direct debit
D letter of credit

29 The service offered by building societies is

A offering loans to start a business.

B offering overdrafts as working capital.
C offering loans to build houses.
D offering salaries to civil servants.

30 Which organisation finances foreign trade?

A Building society
B Merchant Bank
C Post Office Saving Bank
D Reserve Bank of Zimbabwe

6|Page
31 Which item is legal tender?

A bank draft
B bank notes
C cheque
D credit card

32 What is the function of the Reserve Bank of Zimbabwe?

A giving financial advice to traders

B issuing shares to the public
C providing a clearing house to bankers
D running individual bank accounts for the public

33 What is containerisation?

A storing containers in one warehouse.

B packing goods in paper bags
C transportation in large metal boxes
D putting food in refrigerators

34 Which is not allowed in a bonded warehouse?

A branding goods
B exporting goods
C manufacturing goods
D selling goods

35 Which type of warehouse is located near customers?

A bonded warehouse
B manufacture’s warehouse
C retailer’s warehouse
D wholesaler’s warehouse

36 Which is not a reason for the formation of National Social Security Authority (NSSA)?
A providing finance during disability
B providing retirement package
C providing security for worker’s pensions
D providing work to unemployed people

37 Which medium can a school use to advertise broilers?

A poster
B television
C radio
D magazine

7|Page
38 Consumers need protection against the following except

A false price cutting

B buying tested products
C incorrect labelling of goods
D unfair repossession of goods

39 Which is not a consumer right?

A The right to redress

B The right to choose
C the right to be informed
D the right to luxury goods

40 Consumers can avoid overspending by

A buying goods that are past their sell by dates

B prepare a shopping list and budget
C reading labels on goods
D taking advice from the code of advertising

8|Page
 COMMERCE EXAM PANEL
COMMERCE
FORM 4 –EXAM 2
REVISION EXAMINATION
COMMERCE TIME: 1 HOUR 15MINUTES

Answer all questions. For each question there are four possible answers A, B, C and D.
Choose the one you consider correct and record your choice in the given box

1.Which is a correct description of commerce?

A. Distribution of goods and services
B. Manufacturing of goods
C. Provision of services
D. Trade
2.Capital goods
A. Last for short period of time
B. Produce other commodities
C. Are non durable
D. Satisfy consumers directly
3.Direct services
A. Involve retail trade
B. Are personal services
C. Are commercial services
D. Involve importing goods

4.In which activity are fewer wants and needs satiesfied?

A. Commercial farming
B. Subsistence farming
C. Tertiary production
D. Indirect production

5.What is a feature of a department store?

A. Sell goods at low prices
B. Sells one line of goods
C. Located on the outskirts of a town
D. Multi-storey building

6.Which statement describes franchising?

A. Giving goods a distinctive name
B. Using the name of a reputable business
C. Selling products to selected consumers
D. Selling products of only one manufacturer

9|Page
7.A wholesaler is most likely to be used when
A. Goods are large
B. Goods are fragile
C. The retailer is small
D. Selling technical goods

8.Which is a benefit to a buyer under the credit sale?

A. Instalments are spread over a long period
B. Ownership of goods after making agreement
C. Purchasing goods with a second hand value
D. Possession of goods without owning them
9.Which statement is true of cash discount?
A. Does not reduce bad debts
B. Used to encourage prompt payment
C. Offered by discount stores only
D. Used to encourage bulk purchases
10.Which document would be used to show the amount owing?
A. A credit note
B. A statement of account
C. A receipt
D. A delivery note
11.Which statement correctly defines entrepot trade?
A. Delivering goods through a port
B. Barter trade
C. Re-exporting imported goods
D. Importing duty free goods
12.Why is a consular invoice required by customs officials?
A. To certify the owner of the goods
B. To certify the origin of the goods
C. To certify the value of goods
D. To certify the ingredient of goods

13.Which is not used to correct an unfavourable balance of payment?

A. Imposing import duties
B. Subsidising local industries
C. Reducing foreign currency allocation
D. Taxing tourists visiting other countries

10 | P a g e
14.A method of making payments in foreign trade is
A. Bank draft
B. Credit transfer
C. Direct debit
D. Standing order

15.What does the term “limited” in company refer to?

A. The amount of capital is limited
B. The amount of goods sold is limited
C. The liability of shareholders is limited
D. The number of shareholders is limited
16.Which organisation is under the public sector?
A. Local authority
B. Sole trade
C. Multinational company
D. Public limited company
17.Who enjoys limited liability in a limited partnership?
A. Active partners
B. All partners
C. General partners
D. Sleeping partners
18.Which document states the objects of a company?
A. Articles of Association
B. Certificate of Incorporation
C. Certificate of trading
D. Memorandum of Association
19.Which one is not a characteristic of money?
A. Acceptability
B. Accountability
C. Scarcity
D. Durability

20.What is the feature of a stop order?

A. Creditor initiates payment
B. Suitable for paying premiums
C. Suitable for settlement of water bills
D. Used to pay varying amounts

11 | P a g e
21. A cheque is payable to the
A. Bank
B. Drawee
C. Drawer
D. Payee

22.With a bank loan,

A. Collateral security is required
B. Deposit is required
C. A written agreement is not required
D. High interest rates are charged
23.Which is a function of the central bank?
A. Issuing notes and coins
B. Issuing trading certificates
C. Collecting customs duties
D. Offering mortgage finance
24.A cheque drawn by a bank on itself is called a
A. Bank draft
B. Cable transfer
C. Bill of exchange
D. Documentary credit
25.Which risks are insurable?
A. Risks or which no statistics exist
B. Risks that have past statistics
C. Very large risks that occur very rarely
D. Very small risks that occur very frequently
26.Experts who calculate probabilities of risks occuring are called
A. Actuaries
B. Assessors
C. Jobbers
D. Underwriters

27.Which principle requires that the insured and insurer disclose all detail?
A. Indemnity
B. Insurable interest
C. Proximate cause
D. Utmost good faith

12 | P a g e
28.What policy covers a business against loss due to theft of funds by an accountant?
A. Fidelity guarantee
B. Hull insurance
C. Pluvius insurance
D. Emoloyer`s liability

29.In which postal service is there both proof of postage and proof of receipt?
A. Freepost
B. Business reply
C. Poste restante
D. Recorded delivery
30.Which service allows fast and accurate transmission of diagrams?
A. Datel
B. Fascimile
C. Radio paging
D. Telex
31.In confravision, people in different places are able to
A. Watch a recorded video at the same time
B. Talk to each other without seeing each other
C. See and talk to each other over any distance
D. See each other but can not talk to each other
32.Which mode is most approprite to transport 1000 tonnes of coal from Hwange
to Munyati powerstation?
A. Air transport
B. Rail transport
C. Roadtransport
D. Pipetransport
33. What document accompanies goods carried by sea?
A. Bill of exchange
B. Bill of lading
C. Consignment note
D. Customs warrant
34.The agreement between the exporter and the shipping company to transport
goods is a
A. Bill of exchange
B. Bill of lading
C. Charter party
D. Telegram

13 | P a g e
35.Which process is not done in a bonded warehouse?
A. Blending
B. Branding
C. Grading
D. Processing

36.What is an advantage of warehousing to the consumer?

A. Clearing production lines
B. Protecting goods against fire
C. Protecting goods against theft
D. Stabilising prices of goods
37.Which medium would be used when advertising new medical equipment to
doctors?
A. Cinema
B. Newspaper
C. Radio
D. Trade journal
38.Which advertising medium provides local coverage cheaply?
A. Radio
B. Television
C. Posters on walls and trees
D. Magazine
39.The function of the code of advertising practice is to
A. Limit the number of advertisements
B. Find the most suitable advertising media
C. Ensure that advertisements are not disparaging
D. Arbitrate when consumers are cheated
40.What is the advantage of advertising on television over radio?
A. Sound
B. Vision
C. Coverage
D. Repetition

14 | P a g e
 COMMERCE EXAM PANEL
COMMERCE
FORM 4 –EXAM 3
REVISION EXAMINATION

COMMERCE TIME: 1 HOUR 15MINUTES

Answer all questions. For each question there are four possible answers A, B, C and D.
Choose the one you consider correct and record your choice in the given box

1. In which sector of production is commerce found?

A industry
B primary
C secondary
D tertiary

2. In which sector of production are teachers classified?

A commercial services
B direct services
C extractive industry
D non-productive services

3. Which is the best example of specialisation?

A a husband and wife running a shop together
B a part-time cleaner
C a self-employed plumber
D a worker on a car factory’s assembly line

4. Which of the following is a human want?

A housing
B bread
C television
D warmth

5. Why are commercial services essential to a motorcycle manufacturer?

A They assist the manufacturer to get the motorcycles to the consumer.
B They control the quality of the motorcycles produced.
C They organise workers needed in the motorcycle factory.
D They produce the raw materials necessary for making motorcycles.

6. What name describes people involved in the distribution of raw materials and finished
goods?
A commercial workers
B direct service providers
C manufacturing workers
D primary producers

15 | P a g e
7. In which trade is the wholesaler most likely to be eliminated?
A bread
B clothes
C furniture
D newspapers

8. What will a retailer expect when purchasing from a cash-and-carry wholesaler?

A cash discount, if a debt is paid within 28 days
B long-term credit
C no credit and no delivery of goods
D prompt delivery of goods

9. Which of the following are aids to trade?

A banking and insurance
B importing and exporting
C manufacturing and construction
D mining and fishing

10. What are the three stages in production?

A buying, selling and distribution

B extraction, manufacturing and distribution
C importing, manufacturing and exporting
D manufacturing, wholesaling and retailing.

11. Which occupation would be classified as a direct service?

A bank cashier
B fisherman
C hairdresser
D toolmaker

12. The figure relate to a country’s economy in a particular year.

Output $m
Farming, forestry and fishing 7 000
Mining and drilling 5 000
Construction 5 000
Manufacturing 70 000
Communication and advertising 2 000
Insurance, banking and finance 12 000
Transport 8 000
Warehousing and storage 2 000

What is the total value of primary output?

A $10 000
B $12 000
C $17 000
D $75 000

16 | P a g e
13. What is a multiple chain?
A a group of retailers buying from one wholesaler
B a group of wholesalers
C a large- scale retailer with many similar branches
D a large self-service store

14. Which factor helps small retailers to survive competition from large retailers?
A Small retailer can afford expensive advertising.
B Small retailers have easy access to credit finance.
C Small retailers offer a wide variety of goods.
D Small retailers provide a personal service.

15. Why do supermarkets need warehouses?

A to avoid paying customs duties

B to increase profits
C to prevent shortages arising from a high rate of turnover
D to reduce high advertising costs

16. Which function is not performed by a retailer?

A displaying goods
B grading goods
C manufacturing goods
D providing a local supply of goods

17. What name is given to an agent who guarantees payment to the principal?

A a broker
B a del credere agen
C a factor
D an auctioneer

18. What advantage do vending machines have compared with retail shops?

A They deal with consumers’ complaints.

B They make greater savings on space.
C They offer a wider range of goods.
D They sell goods at lower prices.

19. Which is the correct sequence of documents in a business transaction?

A enquiry, quotation, order, invoice, statement

B invoice, order, enquiry, statement, quotation
C order, enquiry, quotation, statement, invoice
D quotation, enquiry, order, invoice, statement

17 | P a g e
20. What information would be found in a quotation?

A a summary of a number of transactions

B details of goods returned by a customer
C instructions to a carrier relating to the delivery of goods
D prices and conditions under which certain goods will be sold

21. What happens when a business organization becomes a public limited company?

A It becomes part of the public sector of business.

B It changes to a government agency.
C It expands into a partnership.
D It offers shares for sale to the general public.

22. What is a person who owns a small business and works for himself called?

A employee
B manufacturer
C shareholder
D sole trader

23. What would a multinational consider to be the main reason for locating a branch in
a developing country?

A to create jobs in that country

B to improve the company’s image
C to increase the country’s workforce skills
D to make use of cheap labour

24. The diagram shows some trading organizations.

Sole traders Partnership Companies

Private Public
Companies Companies

What does X represent?

A government
B private enterprise
C public corporation
D public enterprise

18 | P a g e
25. What is the most suitable source of finance for purchasing supplies for a shop?

A bank loan
B factoring
C overdraft
D trade credit

26. This diagram shows two ways in which a manufacturer of sportswear plans to
expand his business.

Which source of finance is suitable to cover the cost of both of these ways of
expansion?

A bank loan
B mortgage
C ordinary shares
D trade credit

27. A company’s share capital consists of 100 000 ordinary shares at $2 per share.
What is the voting power of a shareholder who owns $2000 worth of these shares?

A 1 vote
B 1 000 votes
C 2 000 votes
D 4 000 votes

28. A man pays a deposit for a refrigerator that he is buying on hire purchase.
In this sale, who owns the refrigerator?

A the buyer after the first two instalments

B the buyer immediately
C the seller until final payment
D the seller until the expiry of the guarantee

19 | P a g e
29. A company raises finance by issuing debentures. The debenture holders are entitled to
A interest after the shareholders have been paid
B one vote per share
C repayment before shareholders if the company goes into liquidation
D variable dividend

30. What is a feature of a crossed cheque?

A It cannot be cashed over the counter.

B It cannot be dishonoured by the bank.
C It cannot be endorsed to someone else.
D It cannot be stolen easily.

31. How does a bank customer benefit from using an ATM (automated teller machine)?

A financial advice
B overdraft facilities
C personal service
D withdrawal on demand

32. In which situation would the bank giro credit system be most appropriate?

A buying clothes from a shop

B instructing a bank to pay monthly bills
C paying staff wages
D withdrawing money from a bank

33. Which statement applies to a direct debit but not to a standing order?
A Cash is paid to the creditor
B It is used for payment of small amounts of money
C The amount is transferred from one account to another
D The creditor, and not the debtor, asks for payment

34. Why has internet banking increased rapidly during the last three years?

A Customers are not concerned about the security of their accounts

B Customers can make use of bank services at home
C Internet banking companies always provide free gifts
D The use of ATMs is decreasing

20 | P a g e
35. The diagram shows part of a bank statement.

What is the balance on 18 September?

A $275
B $1 475
C $1 875
D $2 275

36. 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 required urgently
D to transport people over long distances

37. The picture shows a service offered at post offices for people to collect their mail.

What is this service called?

A night safe
B poste restante
C private box
D special delivery

21 | P a g e
38. Which service can be used to hold a face-to-face meeting between people in
different places?

A fax
B radio paging
C telephone
D video conferencing

39. A parcel is sent by ordinary post. On what is the charge based?

A bulk
B shape
C value
D weight

40. Which type of business is likely to have the highest rate of turnover?

A a bakery
B a jeweller’s shop
C a motor car dealer
D an electrical goods shop

22 | P a g e
 COMMERCE EXAM PANEL
COMMERCE
FORM 4 –EXAM 4
REVISION EXAMINATION
COMMERCE 4049/01

TIME : 1 HOUR 15 MINUTES

Answer all questions. For each question there are four possible answers A, B, C and D.
Choose the one you consider correct and record your choice in the given box

1 In which stage of production is more value added to goods?

A direct production
B primary production
C secondary production
D subsistence production

2 Which is the correct order in the production process?

A commercial → secondary → primary
B commercial → primary → secondary
C primary → secondary → commercial
D primary → commercial → secondary

3 Which is not an advantage of specialisation?

A craftsmanship is developed
B more goods are produced
C prices of goods are reduced
D quality of goods is improved

4 Which is a producer good?

A car
B tractor
C television
D umbrella

5 The reward for enterprise is

A wages.
B rent.
C profit.
D interest.

6 The purpose of an indent is to state the

A goods available.
B goods delivered.
C goods insured.
D goods required.

23 | P a g e
7 A document used when goods are transported by sea is a bill of
A carriage.
B entry.
C exchange.
D lading.

8 What is not considered when calculating the balance of trade?

A duty paid for imported goods
B entry fees paid by tourists
C value of goods exported
D value of goods imported

9 Which action is taken to correct an unfavourable balance of payment?

A import more goods
B reduce customs duty
C reduce foreign currency allocation
D remove import quotas

10 Which document is used to request payment from customers?

A advice note
B delivery note
C order form
D statement of account

11 A wholesale formed by farmers is a

A cash and carry wholesaler.
B co-operative wholesale society.
C general wholesaler.
D specialist wholesaler.

12 Which is a function of the Consumer Council of Zimbabwe (CCZ)?

A advise consumers of best buys
B establish consumer shops
C fix prices of goods
D test goods for quality

13 Trade Measures Act deals with

A prices of goods.
B quality of goods.
C value of goods.
D weight of goods.

14 Which is not true of Private Limited Companies and Public Limited Companies?
A both are financed by shareholders
B both have a minimum of two shareholders
C both have limited liability
D both sell shares at the stock exchange

24 | P a g e
15 The term “limited” in an incorporated business means that
A the amount of goods sold is limited.
B the liability of shareholders is limited.
C the number of shares is limited.
D the number of shareholders is restricted.

16 Which is not a characteristic of an entrepreneur?

A self confidence
B self discipline
C self minded
D self starter

17 The service offered by building societies is

A offering loans to start a business.
B offering overdrafts as working capital.
C offering loans to build houses.
D offering salaries to civil servants.

18 Which organisation finances foreign trade?

A Building society
B Merchant Bank
C Post Office Saving Bank
D Reserve Bank of Zimbabwe

19 Which is not a function of the Reserve Bank of Zimbabwe?

A accepting deposits from the public
B allocating foreign currency
C clearing of cheques
D replacing worn-out notes

20 Which principle is applied to determine the compensation?

A average clause
B contribution
C proximate cause
D subrogation

21 Which is an objective of the Small Enterprise Development Corporation (SEDCO)?

A It encourages and assists in the formation of co-operatives.
B It fights poverty in middle and low income nations.
C It is a non-profit making financial organisation.
D It provides long-term infrastructural finance for construction of roads.

22 Which item is legal tender?

A bank draft
B bank notes
C cheque
D credit card

25 | P a g e
23What is the function of the Reserve Bank of Zimbabwe?

A giving financial advice to traders

B issuing shares to the public
C providing a clearing house to bankers
D running individual bank accounts for the public

24Which policy falls under assurance?

A consequential loss policy

B endowment policy
C mortgage guarantee policy
D pluvious policy

25 Which policy covers customers injured within the shop?

A comprehensive
B employers liability
C fidelity guarantee
D public liability

26 Which insurance principle states that the insured must not make a profit?
A average clause
B indemnity
C insurable interest
D utmost good faith

27 Which mode of communication can a trader use to encourage customers to respond to

a survey?
A business reply service
B express mail service
C free post
D poste restante

28 Which telecommunication sends exact copies of diagram?

A data post
B facsimile
C radio paging
D telex

29 Which service enables people in different locations to speak face to face?

A confravision
B datel
C franking
D prestel

30 Which mode of communication is considered as formal?

A e-mail
B facebook
C skype
D whatsapp

26 | P a g e
31 Freightliners are
A cargo ships operating on regular routes.
B high speed, long distance cargo trains.
C inter-continental cargo aeroplanes.
D tankers carrying large amounts of oil.

32 Why has the volume of cargo carried by air increased?

A economic use of fuel

B low maintenance charges
C no transhipment of cargo
D speedy movement of goods

33 In containerisation, the term “groupage” means

A storing containers in one warehouse.
B transporting a number of containers in one ship.
C transporting consignments to different destinations.
D using one container for a number of consignments.

34 Which is not allowed in a bonded warehouse?

A branding goods
B exporting goods
C manufacturing goods
D selling goods

35 Which type of warehouse is located near customers?

A bonded warehouse
B manufacture’s warehouse
C retailer’s warehouse
D wholesaler’s warehouse

36 Which product is suitable for a niche market?

A blankets
B bread
C chocolates
D clothes

37 Which medium can a school use to advertise broilers?

A poster
B television
C radio
D magazine

38 Which is not mass marketing?

A creation of generic brands and brand loyalty
B everyone should be a customer of the product
C making products which have a universal appeal
D tailoring a product to a particular type of customer

27 | P a g e
39. Which service can be used to hold a face-to-face meeting between people in
different places?

A fax
B radio paging
C telephone
D video conferencing

40. A parcel is sent by ordinary post. On what is the charge based?

A bulk
B shape
C value
D weight

28 | P a g e
 COMMERCE EXAM PANEL
COMMERCE
FORM 4 –EXAM 5
REVISION EXAMINATION

COMMERCE TIME: 1 HOUR 15MINUTES

Answer all questions. For each question there are four possible answers A, B, C and D.
Choose the one you consider correct and record your choice in the given box

1. Which of the following is an example of a commercial worker?

A Catering
B Insurance
C Nursing
D Teaching

2. At which stage of production are raw materials turned into finished goods?
A Extractive
B Primary
C Secondary
D Tertiary

3. What is trade?
A Providing consumers with goods and services
B Changing natural resources into usable goods
C Producing and distributing goods and services
D Buying and selling of goods and services

4. Production of goods on a large scale is known as

A Direct production
B Commerce
C Standardisation
D Mass production

5. In which retail outlet do members receive a share of profits based on their purchases?
A Discount store
B Mail order shop
C Retail co-operative shop
D Variety chain store

29 | P a g e
 6. Small scale retailers survive competition from large scale retailers because
A Small scale retailers can afford expensive advertising
B Small scale retailers have easy access to credit finance
C Small scale retailers offer a wide variety of goods
D Small scale retailers put emphasis on personal service

7. Which retail outlet have grown largely as a result of pre-packaging and branding?
A Chain stores
B Discount stores
C Departmental stores
D Supermarkets

8. Which commodity is least likely to be handled by a wholesaler?

A Beer
B Bread
C Cotton
D Tinned fruit

9. What does a factor do?

A Arranges insurance for goods
B Brings buyers and sellers together
C Sells goods in his own name
D Guarantees to sell goods for the exporter

10. What is the purpose of a debit note?

A To increase the amount owing on the invoice
B To remind customers of the amount due
C To show details of goods returned to the supplier
D To show packing cases have been returned

11. In which order are the following trade documents used?

A Inquiry > order > invoice > statement
B Inquiry > order > statement > invoice
C Statement > invoice > inquiry > order
D Order > inquiry> invoice > statement

12. On which document would the following terms of payment appear?

30days : 5%
A A credit note
B An advice note
C An order
D A statement

30 | P a g e
 13. Which of the following is an ‘invisible’ item on the balance of payments?
A Shoes send to Harare
B Natural gas from Nigeria
C Expatriate doctors from Canada
D Motor vehicle kits from Japan

14. Which statement describes entrepot trade?

A The re-exportation of imported goods
B The importation of duty free goods
C The arrangement of trade between two other countries
D The importation of goods which have previously been exported

Questions 15 and 16 refer to the table that gives information for country X.

Total exports of goods $230m

Total imports of goods $370m
Services provided by country Z to other countries $300 m
Services provided to country Z by other countries $400 m

15. What was the balance on invisible trade?

A -$100m
B -$500
C +$700
D +$1 400

16. What was the balance of payments for country X?

A +$100
B +$240
C +$600
D -$240

17. Which business unit is not privately owned?

A A public corporation
B A co-operative society
C A public limited company
D A multi-national corporation

18. Which document confirms a company as a separate legal entity?

A Prospetus
B Articles of Association
C Memorandum of Association
D Certificate of lncorporation

31 | P a g e
 19. What is the meaning of the term ‘limited liability’?
A Shareholders can lose only the value of their initial investment
B Shareholders are paid back only a certain percentage of their
investment
C Shareholders can buy only a certain some of share capital
D Shareholders are issued only to a certain total value

20. A trader’s gross profit is 35% of turnover and his net profit is 15% of turnover. If his
turnover is $30 000,what are his trading expenses?

A $4 500
B $6 000
C $10 500
D $15 000

21. What is a feature of a crossed cheque?

A It cannot be stolen easily
B It cannot be endorsed to someone else
C It cannot be cashed over the counter
D It cannot be dishonoured by the bank

22. Which item is legal tender?

A Bank draft
B Bank notes
C Cheque
D Credit card

23. What is the function of the Reserve Bank of Zimbabwe?

A Giving financial advice to traders
B Issuing shares to the public
C Providing a clearing house to bankers
D Running individual bank accounts for the public

24. What is a characteristic of a bank overdraft?

A A written agreement is required
B Interest is charged on the overdrawn amount
C Providing a clearing house to bankers
D Running individual bank accounts for the public

25. What does consequential loss insurance cover?

A A loss resulting from another loss
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

32 | P a g e
 26. Who works in the insurance business?
A Broker
B Factor
C Merchant
D Speculator

27. Which insurance principle prevents the insured from gaining by under-insuring
property?
A Indemnity
B Insurable interest
C Proximate cause
D Utmost good faith

28. Which statement is true about a comprehensive motor vehicle insurance policy?
A It covers one’s own vehicle and the occupants
B It covers one’s own vehicle ad that of a third party
C It is cheaper than third-party insurance
D It is compulsory for licensing purposes

29. Which postal service gives proof of posting and proof of delivery?
A Air mail
B Business reply service
C Franked mail
D Recorded delivery

30. Which telecommunication service allows subscribers to access library information

world-wide?
A Facsimile(fax)
B Internet
C Telex
D Video conferencing(confravision)

31. Which method of communication enables the instant updating of computerised

accounts between a head office and its branches?
A Confravision
B Datel
C Telephone
D Telex

32. Which advantage does air transport have over road transport?
A Bulk goods may be carried
B It is cheaper over short distances
C It is quicker over long distances
D There is no packaging of goods

33 | P a g e
 33. Which goods are most likely to be transported by sea?
A Chrome ore
B Fresh flowers
C Jewellery
D newspapers
34. What is the best way of transporting 300kg of gold from Karoi,outside Harare to
London?
A By air, sea and road
B By road, air and road
C By rail, air and rail
D By road, air and sea

35. Which statement is true of a bonded warehouse?

A Stores non dutiable goods
B Is controlled by airport authorities
C Enables goods to be sold and removed in small quantities
D Allows the manufacturing and packaging of goods

36. Which product would be stored long-term in a warehouse?

A Bread
B Eggs
C Soap
D Tomatoes

37. Which aid to trade helps most to solve the problems that arise from seasonal
production of goods?
A Banking
B Communication
C Insurance
D warehousing

38. What is the advantage to the consumer of competition between manufacturers of

similar products?
A Buying goods on impulse
B Creating employment in the advertising business
C Increasing the sales of new products
D Obtaining high quality goods at lower prices

39. What does a code of advertising practice guard against?

A Competitive advertising
B Direct advertising
C Dishonest advertising
D Persuasive advertising

34 | P a g e
 40. How is a publisher likely to advertise a new textbook?
A Cinema
B Direct mail
C Neon signs
D Posters

35 | P a g e
 COMMERCE EXAM PANEL
COMMERCE
FORM 4 –EXAM 6
REVISION EXAMINATION

COMMERCE TIME: 1 HOUR 15MINUTES

Answer all questions. For each question there are four possible answers A, B, C and D.
Choose the one you consider correct and record your choice in the given box

1.Which of the following is an example of primary production?

A. Banking
B. Manufacturing
C. Building
D. mining
2.Which statement about mass production is correct?
A. it increases the cost of goods
B. it improves craft skills among workers
C. it increases the range of goods
D. it lowers production cost per unit
3.The diagram below shows a chain of distribution
Manufacturer > X > Retailer > Consumer
What is X
A. Agent
B. Customer
C. Producer
D. Wholesale
4.In which activity are fewer wants and needs satiesfied?
A. commercial farming
B. subsistence farming
C. tertiary production
D. indirect production
5.What is a feature of a department store?
A. sell goods at low prices
B. sells one line of goods
C. located on the outskirts of a town
D. multi-storey building

36 | P a g e
6.Which statement describes franchising?
A. giving goods a distinctive name
B. using the name of a reputable business
C. selling products to selected consumers
D. selling products of only one manufacturer
7.A wholesaler is most likely to be used when
A. goods are large
B. goods are fragile
C. the retailer is small
D. selling technical goods
8.Which is a benefit to a buyer under the credit sale?
A. instalments are spread over a long period
B. ownership of goods after making arrangement
C. purchasing goods with a second hand value
D. possession of goods without owning them
9.Which statement is true of cash discount?
A. does not reduce bad debts
B. used to encourage prompt payment
C. offered by discount stores only
D. used to encourage bulk purchases
10.Which document shows the buyer the amount he owes the supplier?
A. a credit note
B. a statement of account
C. a receipt
D. a delivery note
11.Under what circumstances would a trader not use a credit note?
A. when empties are returned
B. when goods are under supplied
C. when goods are undercharged
D. if damaged goods are returned
12.Why is a consular invoice required by customs officials?
A. to certify the owner of the goods
B. to certify the origin of the goods
C. to certify the value of goods
D. to certify the ingredient of goods

37 | P a g e
13.Why is international trade important to Zimbabwe?
A. to prevent dumping of foreign goods
B. to obtain quality goods at lower prices
C. to reduce variety of goods available
D. to protect local industries
14.Which is not used to correct an unfavourable balance of payment?
A. imposing import duties
B. reduce foreign currency allocation
C. subsidising local industries
D. taxing tourists visiting other countries
15.How may a shareholder in a public limited company sell his shares?
A. advertise the shares in a newspaper
B. sell the shares through the stock exchange
C. ask the company to buy the shares back
D. requests the company to sell the shares for him
16.Which organisation is under the public sector?
A. local authority
B. sole trader
C. multinational company
D. public limited company
17.Who enjoys limited liability in a limited partnership?
A. active partners
B. all partners
C. sole trader
D. sleeping partners
18.Which document states the objects of a company?
A. Articles of Association
B. Certificate of Incorporation
C. Certificate of trading
D. Memorandum of Association
19.Which one is a characteristic of money?
A. store of value
B. accountability
C. measure of value
D. durability

38 | P a g e
20.What is the feature of a stop order?
A. creditor initiates payment
B. suitable for paying premiums
C. suitable for settlement of water bills
D. used to pay varying amounts
21.Why is a cheque not legal tender?
A. it can be crossed
B. it must be paid into a bank
C. it can be refused by a creditor
D. it can be transferred to another person
22.With a bank loan,
A. collateral security is required
B. deposit is required
C. a written agreement is not required
D. high interest rates are charged
23.Which is a function of the central bank?
A. issuing notes and coins
B. issuing trading certificates
C. collecting customs duties
D. offering mortgage finance
24.A cheque drawn by a bank on itself is called a
A. bank draft
B. cable transfer
C. bill of exchange
D. documentary credit
25.Which risks are insurable?
A. risks or which no statistics exist
B. risks that have past statistics
C. very large risks that occur very rarely
D. very small risks that occur very frequently
26.Experts who calculate probabilities of risks occuring are called
A. actuaries
B. assessors
C. jobbers
D. underwriters

39 | P a g e
27.Which principle requires that the insured and insurer disclose all detail?
A. Indemnity
B. insurable interest
C. proximate cause
D. utmost good faith
28.What policy covers a business against loss due to theft of funds by an accountant?
A. fidelity guarantee
B. hull insurance
C. pluvius insurance
D. employer`s liability
29.In which postal service is there both proof of postage and proof of receipt?
A. freepost
B. business reply
C. poste restante
D. recorded delivery
30.Which service allows fast and accurate transmission of diagrams?
A. datel
B. facsimile
C. radio paging
D. telex
31. Which form of communication transmits coded computerised information ?
A. fax
B. datel
C. telex
D. radio paging
32. A bill of lading can be endorsed to another person because it is a
A. contract of carriage
B. document of title
C. quasi-negotiable instrument
D. receipt for goods
33. What document accompanies goods carried by sea?
A. bill of exchange
B. bill of lading
C. consignment note
D. customs warrant

40 | P a g e
34.The agreement between the exporter and the shipping company to transport goods is a
A. bill of exchange
B. bill of lading
C. charter party
D. telegram
35.Which process is not done in a bonded warehouse?
A. blending
B. branding
C. grading
D. processing
36.What is an advantage of warehousing to the consumer?
A. clearing production lines
B. protecting goods against fire
C. protecting goods against theft
D. stabilising prices of goods
37.Why might the Consumer Council of Zimbabwe (C.C.Z) advertise ?
A. to improve consumer awareness
B. to inform consumers of new products
C. to remind consumers of existing goods
D. to persuade consumers to buy
38.How does point-of-sale advertising help a trader to increase sales.
A. it attracts customers to the shop
B. it reduces competition
C. it encourages impulse buying
D. it results in reduced prices
39. A manufacturewants to show the results of using a washing powder. Whichadvertising
mediumwould best be used?

A. television
B. radio
C. newspaper
D. magazine
40. What is the advantage of advertising on television over radio?
A. sound
B. vision
C. coverage
D. repetition

41 | P a g e
 COMMERCE EXAM PANEL
COMMERCE
FORM 4 –EXAM 7
REVISION EXAMINATION

COMMERCE TIME: 1 HOUR 15MINUTES

Answer all questions. For each question there are four possible answers A, B, C and D.
Choose the one you consider correct and record your choice in the given box

1 Which service is not part of tertiary production ?

A banking
B distribution
C manufacturing
D teaching

2 Which is an advantage ofspecialising ?

A leads to employment
B results in labour mobility
C retraining work is cheap
D workers become skilled

3 Which is notvalue addition?

A baking cake from flour

B making steel from iron ore
C packaging diamonds in metal boxes
D selling live cattle to abattoirs

4 Which external factor affects business environment?

A customers
B politics
C suppliers
D workers

5 Beneficiation is the

A amount by which the value of a product is increased.

B difference between cost of production and selling price.
C natural intrinsic value in the extracted raw materials
D process which removes impurities from minerals

42 | P a g e
6 Which factors of production mobilises other factors of production?

A land
B labour
C enterprise
D capital

7 Retailing is

A offering goods to wholesalers

B providing raw materials to producers
C selling directly to consumers
D selling goods in small quantities

8 Quotas

A discourage domastic consumption

B increase inflow of foreign currency
C limit quantities of goods imported
D make imports more expensive

9 Balance of trade is equal to

A goods exported minus goods imported

B goods exported minus services exported
C services exported minus services imported
D total exports minus total imports

10 The aim of forming trading blocs is to

A c hallange intergration of global economy

B discriminate against non-member countries
C promote free trade among member states
D encourage global free trade by nationssss

11 The similarity between home trade and foreign trade is that

A goods in transit are insured

B same language is involved
C foreign currency is used
D same measurements are used

12 Consumers need protection agaist the following except

A false price cutting

B buying tested products
C incorrect labelling of goods
D unfair repossession of goods

43 | P a g e
13 Which board tests products for quality?

A Advertising Media Association of Zimbabwe

B Consumer Council of Zimbabwe
C Standards Association of Zimbabwe
D Small Claims Court of Zimbabwe

14 Which is a feature of business in the private sector?

A clearly identifiable owners

B no profit making motive
C owned by the government
D set-up to provide a service

15 A partnership is formed by

A. at least one person

B two and no maximum shareholders
C two to fifty shareholdes
D two to twenty individuals

16 Which characteristics applies to both private limited company and public limited company?

A owners are called shareholders

B share transfer is unrestricted
C shares sold on Stock Exchange
D start trading after incorporation

17 Which is privatisation

A converting a partnership into a public corporation

B converting a private limited company into a public limited company
C selling a business to government by an individual
D converting a public sector business to private sector business

18 An entrepreneur is

A a book-keeper who maintaints accounts

B a salesperson who markets goods
C one who takes financial risks
D someone who culculates premiums

19 Planning as a management function deals with

A bringing workers togethers

B ensuring that workers do different jobs
C finding out whether aims are met
D setting goals for the business

44 | P a g e
20 Which function of money is used to compare goods

A measure of value
B medium of exchange
C standard for future payment
D store of value

21 Return on capital employment is given by the formula

A x 100

B x100

C x 100

D x 100

Use the following information to answer questions 22 and 23.

A trader bought 200 crates of mineral water at $10 a crate from a wholesaler under the following
terms:

- Trade discount 25%

- Cash discount 5% 15 days

22 How much trade discount was offered to the trader ?

A $ 100
B $ 400
C $ 500
D $ 2 000

23 How much did the trader pay if the account was settled within 10 years?

A $ 1 900
B $ 1 600
C $ 1 500
D $ 1 425

24 Which satement is true about the principle of utmost good faith?

A the insured must not make profit

B all relevant information must be disclosed
C the insured must suffer loss
D the risk must be insuarable

45 | P a g e
25 The calculation of insurance premiums is done by the

A actuaries
B assessors
C brokers
D underwriters

26 Non-payment by an importer due to lack of foreign currency is covered by

A consequential loss insurance

B export credit guarantee corporation
C fidelity guarantee insurance
D freight insurance

27

PREMIUMS COMMON CLAIMS

FUND

What is represented in the diagram?

A average clause
B insurable interest
C pooling of risks
D proximate cause

28 Which activity is not part of e-insurance?

A buying insurance cover on-line

B contracting an agent to discuss insurance
C downloading a policy document
D paying monthly premiums on-line

29 Which telecommunication service allows contact when trader is out of office?

A cellphone
B datel
C post restante
D telephone

46 | P a g e
30 Effective communication does not involve a

A feedback
B licence
C medium
D transmitter

31 A charter party is a

A contract of hire
B document of title
C proof of delivery
D receipt of freight

32 Which is not considered when choosing a method of communication?

A cost
B distance
C reliability
D urgency

33 What is the importance of transport to a trader?

A goods are kept safely before sale

B goods are moved to the markets
C tastes and demands of customers are known
D trader is covered against loss

34 What is the disadvantage of using containers in transport?

A containers are sealed in transport

B container terminals are expensive to build
C packaging costs are reduced
D small loads require groupage

35 Which is not a function of seaport authority?

A providing refuelling facilities

B maintaining dry docks
C dredging the harbour
D collecting customs duty

36 In which agrement does an exporter hire a tramp together with its crew?

A demise charter
B bill of lading
C time charter
D voyage charter

47 | P a g e
37 Where does a communal farmer store grain?

A granery
B silo
C metal container
D storeroom

38 Marketing a product to benefit a few customers is

A market research
B market segmentation
C mass marketing
D niche marketing

39. The process of dividing a market into groups is

A market research
B market segmentation
C mass marketing
D niche marketing

40. What is marketing mix?

A all activities used to sell a product

B brand name distinguishing products
C selling a variety of products
D set of questions for market research

CONTACT DETAILS

0774-453126 [Calls] 0783-727157 [Whatsapp]

48 | P a g e