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FORM ONE MIDTERM EXAMINATION MARCH 2020

061 COMMERCE

TIME 2 HOURS Monday 30RD March 2020 am

INSTRUCTIONS
1. This paper consist of sections A, B and C
2. Answer all questions

SECTION A
1. For each of the items (I – x) choose the correct answer from among the given
alternatives and write it’s be side the items number.
(i) Auxiliary service may be defined as the activities aimed at ________
A. Assisting the consumer directly
B. Helping traders in their business
C. Making the work of those involved in manufacturing of essential goods easy
D. Bridging the gap between the producer and the consumer
E. Assisting the producers directly
(ii) All of the following methods are involved in a barter exchange, except ______
A. The buyer must have some goods to give to the seller
B. The buyer can offer labour services to obtain goods
C. The buyer must pay cash to the seller
D. There must be a double coincidence of wants
(iii) Commerce is concerned with _______
A. Stock control in industries
B. The distribution and the exchange of goods and services
C. Selling of the consumer goods only
D. Selling of durable goods only
(iv) The main purpose of commerce is to __________
A. Make profit
B. Help customers
C. Help manufacturers
D. Bridge the gape between the producers and the consumer.
(v) Which one of the following is not an aid to trade?

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A. Transporting B. Warehousing
C. Banking D. Retailing
(vi) Which of the following statement is FALSE?
A. Commercial services add value to products
B. Every stage of production employs commercial services
C. If there were no commercial services, most goods would not be produced
D. Commercial services cannot begin until the manufacturing process has been
completed.

(vii) The main purpose of the commerce is to satisfy human wants, needs and fill the
gap between _________
A. Wholesalers and retailers
B. Shopkeeper and buyers
C. Retailers and consumers
D. Producers and consumers

(viii) Which one of the following is an example of a barter trade?

A. Fish and coins B. Goat and notes
C. Cow and chair D. Sheep and silver coins

(ix) Which one of the following is not a direct service?

A. Cooking at home B. Teaching
C. Fishing D. Nursing

(x) What is the term used when a person finds a person who has the goods or service
that he wants, and also that person wants what he has:
A. Barter trade B. Selective process
C. Specialization D. Trade liberalization
E. Credit wealthy

2. Fill in the blanks

(a) ………………. is the buying and selling of goods and services
(b) ………………..is an example of auxiliary service.
(c) ………………. Is the selling of goods to the final consumers.
(d) The branch of economics that deals with the exchange of goods services and all
the activities that facilitate such exchange is known as ………………….
(e) ……………… is the movement of people and goods from one place to another
place.

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SECTION B
3. Short answer questions
(i) Production
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(ii) Insurance
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Export
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(iii) Communication
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(iv) Import ____________________________________________________
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4. Differentiate the following term

(i) Perishable vs durable goods
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(ii) Consumer vs producer goods
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(iii) Private goods and economic goods

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SECTION C
5. What is the usefulness studying commerce

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Draw production flow chart

ALL THE BEST

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