Professional Documents
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Commerce Mdr1
Commerce Mdr1
FORM FOUR
COMMERCE
TIME 3:00HOURS
Instructions
1. This paper consists of section A, B and C with a total of ten (10) questions.
2. Answer all questions in section A and B and two questions from section C
3. Calculators, cellular phones and any unauthorized materials are not allowed in the examination room
4. Write your examination number on every page of your answer sheets.
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A Standing order B Credit transfer
C Traveler’s cheque D Credit card
E Money order
v. A credit note is issued to correct
A Any error in an invoice B An overcharge in an invoice
C An undercharge in an invoice D An overcharge in a statement
E An undercharge in a statement vi. The function which is
NOT usually performed by a retailer is
A Transport goods B Storage of goods
C Advice to customer D Changing the form of goods
E Selling goods to the wholesaler vii. The most suitable
type of account for a businessman is
A A saving account B A current account
C A deposit account D A contract saves account E A
company account
viii. The list of documents prepared in the course of commercial transaction in the right order of being raised is
A Order, inquiry, quotation, invoice, statement, receipt.
B Quotation, inquiry, invoice, order, cheque, statement
C Inquiry, quotation, order, invoice, statement, cheque
D Quotation, inquiry, order, invoice, cheque, statement
E Inquiry, order, quotation, invoice, statement, cheque ix. The group which represents a broad classification of human occupations is
A Commerce, production and aids to trade B
Trade and aids to trade
C Banking, insurance and transportation
D Extractive, manufacturing and constructive industries
E Industrial and tertiary
x. If Tanzania exports more goods to Uganda than she imports from the same country her balanceof
A Trade is favourable B Trade is unfavourable
C Payment is favourable D Payment is unfavourable
E Trade and payment are favourable xi. A
marketing board is a board set up to
A Advise cooperatives only
B Deal with exports
C Buy goods from importers and sell them
D Buy products from producers and sell them
E Export manufactured goods xii. Which of the following is the benefit of sole traders over limited companies?
A They have unlimited liability
B They do not pay VAT
C They find it easier to raise capital
D They make decisions quickly
E They have no risks associated with their personal assets xiii. Which of the following industries are concerned with obtaining raw
materials from natural resources?
A Constructive industries B Manufacturing industries
C Building industries D Mining industries
E Extractive industries xiv. One method
of discouraging imports is to
A Remove tariffs system B Encourage free trade
C Impose high taxes on exports D Remove tax on import
E Impose high tariffs on import xv.
The term “ Legal Tender “ means
A The form of money that a creditor must accept from a debtor in settlement of a debt
B A right to supply goods to an institution for a period of time
C A lawyer can pay money legally to his client
D The form of money that a creditor has a right to refuse in settlement of a debt E The right to make settlement on any unpaid debts
2. Match the item in column “A” with the responses in column “B” by writing the letter on the correct response beside the item number.
COLUMN A COLUMN B
i. Document issued by an airline company A. Cover note
to act as a contract of carriage by the airline B. Memorandum of association
company and contract to pay freight charges C. Article of association
by the sender of goods. D. Proposal form
ii. Document issued by insurance
E. Import and export tax
company after the payment of the premium
F. Certificate of trading
by the insured. iii. Tax levied on
import or export. iv. The document G. Freight charges
clearly states the rules and regulations that H. Certificate of incorporation
guide the internal operation of the company. I. Customs duty
v. Document that empowers the public J. Airway bills
limited company to start operating.
3. You have been invited in a seminar about Taxation conducted by Tanzania Revenue Authority. The main theme of the seminar is “the effects of
taxation” at the end of the seminar, you will be required to present to your fellow students the positive and negative effects of taxation in an
economy. Summarize your presentation by showing the:-
i. Three positive effects of taxation and
ii. Two negative effects of taxation
4. Write short notes on the following terms;
A. VAT
B. Taxation
C. Regressive tax system
D. Progressive tax system
E. Joint demand
5. Write short notes on the following items i. Money ii. Banking iii. Marketing iv. Parastatals
6. Can we eliminate the wholesaler? Give five reasons to support your answer.
7. (a) What is cheque?
(b) Give four reasons for a cheque to be dishonoured