ZIMBABWE SCHOOL EXAMINATIONS COUNCIL <br> General Certificate of Education Ordinary Level
**COMMERCE** 4049/1
**PAPER 1 Multiple Choice**
**NOVEMBER 2018 SESSION** 1 hour 15 minutes
Additional materials: Multiple choice answer sheet Soft clean eraser Soft pencil (type B or HB is recommended)
TIME 1 hour 15 minutes
INSTRUCTIONS TO CANDIDATES
Do not open this booklet until you are told to do so by the invigilator. Write your name, Centre number and candidate number on the answer sheet in the spaces provided unless this has already been done for you.
There are forty questions in this paper. Answer all questions. For each question there are four possible answers, \(\mathbf{A}, \mathbf{B}, \mathbf{C}\) and \(\mathbf{D}\). Choose the one you consider correct and record your choice in soft pencil on the separate answer sheet.
Read carefully the instructions on the answer sheet.
INFORMATION FOR CANDIDATES
Each correct answer will score one mark. A mark will not be deducted for a wrong answer. Any rough working should be done in this booklet.
Question 1
Goods required for personal use are called
A agricultural goods.
B capital goods.
C consumer goods.
D producer goods.
Question 2
Which are the three stages of production?
A extracting, manufacturing and distributing
B extracting, constructing and exporting
C distributing, buying and selling
D manufacturing, extracting and retailing
Question 3
Which is a feature of specialisation?
A one worker is required
B high output of products
C high costs of production
D more labour is required
Question 4
Who provides an indirect service?
A advertiser
B lawyer
C musician
D teacher
Question 5
Which is not an example of value addition?
A blending coal
B grading coal
C prospecting coal
D transporting coal
Question 6
Which action may a small retailer take to compete with large retailers?
A buying goods directly from the manufacturers
B joining voluntary chain group
C providing a wide range of goods
D purchasing goods in large quantities
Question 7
Which is a feature of a vending machine?
A it is found everywhere
B it is used by vendors only
C it offers personal service
D it operates twenty-four hours
Question 8
A manufacturer can differentiate his goods from those of a competitor by
A blending.
B branding.
C describing.
D pricing.
Question 9
When would cash discount be deducted?
A when debt is paid promptly
B when goods are perishable
C when goods are bought for resale
D when it is a futures contract
Use the information below to answer questions 10 and 11.
A trader bought 10 kitchen tables for \(\$ 800\), under the following terms - \(10 \%\) trade discount
- \(5 \%\) cash discount 30 days
Question 10
What is the net invoice price?
A \(\$ 80\)
B \(\$ 720\)
C \(\$ 736\)
D \(\$ 800\)
Question 11
How much did the trader pay if the amount owing is settled within 20 days?
A \(\$ 36\)
B \(\$ 40\)
C \(\$ 684\)
D \(\$ 760\)
Question 12
Which is a function of the Consumer Council of Zimbabwe?
A authorising use of seal of approval
B controlling prices of goods
C investigating consumer complaints
D testing consumer products for quality
Question 13
Which statement represents a disclaimer clause?
A "Do not use for more than 10 days without consulting your doctor."
B "Goods left at owner's risk."
C "Quality guaranteed or your money back."
D "Trespassers will be prosecuted."
Question 14
In a private limited company, what does the term 'limited' mean?
A all shareholders have limited liability
B capital contributed by shareholders is limited
C rights of shareholders are limited
D shareholders are limited to twenty only
Question 15
Which document confirms a limited company as a separate legal entity?
A Articles of Association
B Certificate of Incorporation
C Memorandum of Association
D Statutory declaration
Question 16
Which feature applies to both private companies and public companies?
A family owned business
B publication of financial accounts
C registration with Registrar of Companies
D sale of shares on Stock Exchange
Question 17
Which is not a challenge faced by Small and Medium Enterprises?
A adapting to environmental changes
B lack of capital (for expansion)
C legal requirements
D serving niche markets
Question 18
Which is not a management function?
A planning
B organising
C merchandising
D controlling
Question 19
What is perseverance in business?
A ability for imaginative creation
B being honest and truthful in business
C determination that pushes the entrepreneur
D willingness to start a new business
Use the following information to answer questions 20 and 21.
The trading figures below were taken from the books of Madziro Enterprise.
\$
| Sales | 10000 | | :--- | ---: | | Cost of goods sold | 5000 | | Average stock | 4000 | | Sales returns | 1000 |
Question 20
What is Madziro's gross profit?
A \(\quad \$ 6000\)
B \(\$ 4000\)
C \(\quad \$ 2000\)
D \(\$ 1000\)
Question 21
The rate of turnover is
A \(\quad 1 \frac{1}{4}\) times.
B 2 times.
C \(\quad 2 \frac{1}{4}\) times.
D 10 times.
Question 22
A cheque may be dishonoured if
A it has been folded.
B the drawer has gone overseas.
C it is written in red.
D it is not dated.
Question 23
Which is the most appropriate method of paying monthly salaries to 600 employees?
A credit transfer
B direct debit
C money order
D stop order
Question 24
The risk that a cashier may steal the employer's money is covered by
A consequential loss.
B employer's liability policy.
C public liability insurance policy.
D fidelity guarantee insurance policy.
Question 25
An insured motor vehicle is written off in an accident. According to the principle of indemnity the insurer pays compensation and
A buys the damaged motor vehicle.
B pays profits to the policyholder.
C purchases a new motor vehicle for the policyholder.
D takes possession of the damaged motor vehicle.
Question 26
A trader's stock valued at \(\$ 4000\) was insured for \(\$ 3000\) against fire. When fire occurred goods worth \(\$ 1500\) were destroyed.
How much compensation was paid?
A \(\quad \$ 1125\)
B \(\quad \$ 1500\)
C \(\$ 3000\)
D \(\$ 4000\)
Question 27
What is the use of an insurance prospectus?
A It gives information on exact premiums to be paid.
B It has questions to be answered in utmost good faith.