UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Ordinary Level

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1 UNIVERSITY OF MRIGE INTERNTIONL EXMINTIONS General ertificate of Education Ordinary Level * * OMMERE 7100/01 Paper 1 Multiple hoice October/November 2009 dditional Materials: dditional Materials (not provided by IE): RE THESE INSTRUTIONS FIRST Multiple hoice nswer Sheet Soft clean eraser Soft pencil (type or H is recommended) Ruler Protractor Write in soft pencil. o not use staples, paper clips, highlighters, glue or correction fluid. Write your name, entre number and candidate number on the nswer Sheet in the spaces provided unless this has been done for you. 1 hour There are forty questions on this paper. nswer all questions. For each question there are four possible answers,, and. hoose the one you consider correct and record your choice in soft pencil on the separate nswer Sheet. Read the instructions on the nswer Sheet very carefully. Each correct answer will score one mark. mark will not be deducted for a wrong answer. ny rough working should be done in this booklet. The businesses described in this question paper are entirely fictitious. This document consists of 11 printed pages and 1 blank page. I09 11_7100_01/3RP ULES 2009 [Turn over

2 2 1 What is the name given to those activities that help to provide customers with goods and services? direct services division of labour production trade 2 Which statement about commerce is correct? ommerce begins after production is completed. ommerce is part of production. Production begins after commerce is completed. Production is part of commerce. 3 The table shows the number of people employed productively in a country. commercial services direct services farming and fishing manufacturing and building How many people are employed in the secondary sector of production? Why are there more new businesses in the retail trade than in manufacturing? Few skills are required to run a retail outlet. More capital is required to start retail trading. Retailers can obtain bank loans without collateral security. The retail trade is more profitable than manufacturing. ULES /01/O/N/09

3 3 5 The picture shows a label from an article of clothing. mirabella What is the purpose of the label? to assist with packaging the product to enable the price to be changed electronically to make the product recognisable to customers to provide details about the product 6 What advantage does oolsounds Ltd have from selling its s and Vs over the Internet? It avoids the high costs of e-commerce. It does not need a website to advertise its products. It gains access to a global market for music. It has reduced the need to transport its products. 7 hmed has seen an advertisement for a computer. It includes the words credit terms available after the price shown. Which statement explains why he is interested in buying the computer shown in the advertisement? ash vouchers will be offered to him. His money will be refunded if he finds he cannot use the computer. Payment for the computer can be spread over time. The price will be reduced if he pays when he buys the computer. 8 Why might a consumer organisation advertise? to improve consumer awareness to inform consumers of new products to persuade consumers to buy to remind consumers of existing products ULES /01/O/N/09 [Turn over

4 4 9 sale of goods act requires the seller to supply goods that are fit for purpose. not over-priced. of reasonable quality. tested before use. 10 What has contributed to the elimination of the wholesaler? after-sales service cash and carry growth of large scale retailing hire purchase 11 What is the function of brokers? to auction goods to the highest bidder to bring buyers and sellers together to guarantee that the goods imported will be sold to take possession of goods and to sell them in their own name 12 What does a buyer issue to find out the terms offered by a supplier? delivery note enquiry order form quotation 13 manufacturer makes a pair of jeans. The costs are as follows. materials $30 labour $20 overheads $30 The manufacturer marks up all its retail prices by 50 %. What is the selling price of the jeans? $60 $80 $120 $160 ULES /01/O/N/09

5 5 14 Why are imports important to a country? Greater variety of goods are made available. More money is brought into the country. The alance of Trade is improved. They compete with local industry. 15 The table shows trade figures for ountry X. ountry X $ million total exports of goods 2300 total imports of goods 1700 services provided by ountry X to other countries 300 services provided to ountry X by other countries 800 What is the alance of Payments for ountry X? +$100 m +$500 m +$600 m +$1100 m 16 Which is a function of a customs authority? controlling airports fixing rates of duty maintenance of ports prevention of smuggling 17 How do trading blocs, such as SEN and S, help to increase international trade? by ensuring that member countries export enough to pay for imports by imposing quotas on member countries by reducing the need for customs authorities by removing import tariffs among member countries 18 Why do firms advertise? to even out prices to fight competition to increase prices to mislead customers ULES /01/O/N/09 [Turn over

6 6 19 n international bank intends to advertise a new credit card using prestige and high status as a method of appeal to customers. Which slogan would be most suitable? Everyone needs this card! Exclusively for you! Low interest rates will save you money! Your children s future depends on you! 20 ommunications play an important part when trade takes place within the global economy. Which reason best explains the above statement? ommunications support all commercial transactions within a country. ommunications link traders in all parts of the world. ifferent currencies are required for overseas trade. Fax and can be used to communicate written messages. 21 Which telecommunication service allows discussion between people in different places at the same time? fax paging videoconferencing 22 Which postal service would a large business organisation use to send monthly statements or accounts to its customers? business reply express mail letter post registered mail ULES /01/O/N/09

7 7 23 The diagram shows a barge / bumboat. What is most likely to be transported by this method? food fruit machinery sand 24 onsignment notes are used when delivering goods by container ships. independent transport firms. manufacturer s own trucks. pipelines. 25 What is required for the good running of a warehouse? cash and carry on all sales efficient distribution of goods refrigeration for all foods manufacturing facilities for goods 26 Which statement describes a cash and carry warehouse? located close to ports and airports sells goods on credit specialises in one type of goods wholesale supermarket ULES /01/O/N/09 [Turn over

8 8 27 When are imported goods released from a bonded warehouse? when customs duty is paid on the goods when the exporter gives approval when the goods have been prepared for sale when rent is paid to the warehouse owner 28 The diagram shows the pooling of risk. insured public X make payments for losses insurance pool expenses dividends to investors What is the missing statement marked X? invest funds make claims pay premiums receive policies 29 The insured is the name given to the insurance company offering insurance. payment made for insurance. person who is covered by insurance. property that is covered by insurance. 30 Which statement is true of a bank current account? It allows withdrawal by cheque. It gives the account-holder a high interest rate. It is used as a means of long-term saving. It requires a week s notice before withdrawal. ULES /01/O/N/09

9 9 31 bank statement for Miss hang is shown below. Part of the entry for 12 th October is missing. ank of sia Statement for Miss hang October 2009 Paid in Paid out alance 1 st Oct alance $560 7 th Oct heque $300 $860 9 th Oct $180 $ th Oct heque $70 O/ 15 th Oct heque $130 $60 27 th Oct ash $250 $310 What is the correct entry for 12 th October? $610 paid in $610 paid out $750 paid in $750 paid out 32 Why are TMs used by many bank customers? cash card is not needed to make a withdrawal. heques can be cashed at any time. Overdrafts can be arranged with the bank manager. Withdrawals can be made at any time. 33 Why has Internet banking increased rapidly during the last three years? ustomers can make use of bank services at home. ustomers require personal service. Internet banking companies provide free gifts. The Internet is secure from fraud. ULES /01/O/N/09 [Turn over

10 10 34 Mrs Matumbe wishes to set up a small shop selling clothing. The most important factor she should consider when choosing where to open her shop is nearness to customers. suppliers. transport. workers. 35 company s share capital consists of ordinary shares at $2 per share. What is the voting power of a shareholder who owns $2000 worth of these shares? 1 vote 1000 votes 2000 votes 4000 votes 36 Mr Patel, his brother and his cousin, wish to set up a new business venture offering accountancy services. Which type of business organisation should they form? partnership public corporation public limited company sole trader 37 Which definition describes a multinational company? It is formed by two or more organisations, now trading as one company. It operates in many countries, with its headquarters in one country. It is owned and run by a government to provide a service nationally. It is owned by many shareholders who live and work in other countries. 38 What is a characteristic of a bank overdraft? formal agreement is required. No interest is charged. The borrower must provide collateral security. The interest rate on the amount borrowed is variable. ULES /01/O/N/09

11 11 39 The table below shows figures taken from a trader s books for the year gross profit $ net profit $ cost of goods sold $ cost of average stock $ What were the total expenses? $8000 $ $ $ Which business is likely to have the highest rate of turnover? a bookseller a jeweller s shop a motor car dealer a vegetable stall ULES /01/O/N/09

12 12 LNK PGE Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (ULES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. University of ambridge International Examinations is part of the ambridge ssessment Group. ambridge ssessment is the brand name of University of ambridge Local Examinations Syndicate (ULES), which is itself a department of the University of ambridge. 7100/01/O/N/09

UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Ordinary Level

UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Ordinary Level *7073444731* UNIVERSITY OF MRIGE INTERNTIONL EXMINTIONS General ertificate of Education Ordinary Level OMMERE 7100/13 Paper 1 Multiple hoice May/June 2013 1 hour dditional Materials: Multiple hoice nswer