COMMERCE 7100/11 Paper 1 Multiple Choice October/November hour

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1 * * ambridge International Examinations ambridge Ordinary Level OMMERE 7100/11 Paper 1 Multiple hoice October/November hour dditional Materials: Multiple hoice nswer Sheet Soft clean eraser Soft pencil (type or H is recommended) Ruler Protractor RE THESE INSTRUTIONS FIRST Write in soft pencil. o not use staples, paper clips, 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. O NOT WRITE IN NY ROES. 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. I17 11_7100_11/5RP R ULES 2017 [Turn over

2 2 1 t which stage is production completed? when goods are manufactured when goods are used by the consumer when goods reach the consumer when goods reach the retailer 2 In the manufacturing of a pair of jeans, how is value added to the cloth? designing the jeans displaying the jeans packaging the jeans stitching the jeans 3 Many factories use division of labour in the production process. Which feature of division of labour might be an advantage to a factory worker? jobs take less time to learn overall increase in production savings in labour costs tasks completed in less time ULES /11/O/N/17

3 4 The diagram shows the four provinces of a country and their specialisms. 3 western province agriculture northern province mining southern province banking and finance eastern province textiles Which province specialises in tertiary production? eastern province northern province southern province western province 5 What is not a function of a retailer? acting as a link between manufacturer and wholesaler exchanging faulty goods within the warranty period offering after-sales service providing services to both wholesaler and consumer 6 town has the following numbers of retail outlets. 1 department store 2 variety chain stores 3 supermarkets 22 independent stores 10 multiple chain stores 30 hawker stalls How many large-scale retailing outlets are there in this town? ULES /11/O/N/17 [Turn over

4 4 7 What is an example of after-sales service? offering repairs, refunds and warranties providing an interest-free loan suggesting related or additional products or services thanking customers for their business 8 Why has internet shopping increased? ustomers can negotiate discounts on all purchases. elivery of goods is always made within 24 hours. Goods can be bought 24 hours a day, 7 days a week. Payment systems are always secure. 9 Informal credit is most likely to be offered to customers of department stores. hypermarkets. independent retailers. multiple shops. 10 How can a consumer protect themself against unfair trading practices? buy a consumer magazine check goods and services before buying report unfair practices to the local council send purchased goods to be tested for quality ULES /11/O/N/17

5 11 Four customers are discussing the problem of a faulty product costing $10. Which customer has taken the most appropriate action? 5 I will contact my lawyer and sue the shop. I will go to the local police department. I will contact the government. I will visit the shop and discuss it with the manager. 12 Four channels of distribution are shown. What is the most appropriate distribution channel for the selling of canned fish? manufacturers / producers manufacturers / producers manufacturers / producers manufacturers / producers wholesaler wholesaler retailer retailer customer customer customer customer 13 What is the function of a broker? 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 ULES /11/O/N/17 [Turn over

6 6 14 Mr X purchased watches at $5000 from Mr Y and received an invoice for the amount due. Later, Mr Y sent Mr X a credit note for $1000. How much does Mr X now owe Mr Y? $1000 $4000 $5000 $ On 5 November, a sports equipment shop bought sportswear valued at $ and received 20% trade discount and 5% 30 days cash discount. If payment was made in full on 3 ecember, how much was paid? $2400 $7500 $7600 $ What is a function of a customs authority? to compile statistics on imports and exports to impose income tax on importers to maintain seaports and airports to set the rates of customs duty 17 country has recently placed an embargo on the import of all canned food. What will this mean for canned meat suppliers from other countries who regularly export to that country? Restricted quantities of their goods will be allowed into the country. Their goods will be classed as illegal substances by customs authorities. The meat suppliers will have to pay increased tariffs on goods allowed into the country. There will be a complete ban on all their goods entering the country. 18 The table below shows a country s international trade. exports $ bn imports $ bn visible invisible What is the balance of payments on the current account? $70 bn $60 bn +$10 bn +$420 bn ULES /11/O/N/17

7 19 Which slogan is an example of collective advertising? 7 R toothpaste makes your teeth sparkle FF Supermarkets sell only the finest foods For brighter, whiter whites use ZZ soap powder For healthy teeth, drink more milk 20 mos Patel wishes to use the internet to promote his business. He has arranged to place a pop-up advertisement on the website of a well-known company. What advantage is gained by mos? endorsement by the well-known company mailing list of many potential customers professional design of the advertisement regular and frequent worldwide publicity 21 The diagram below shows four methods of communication used by The GE ompany. Which method of communication would be used for external communication? face-to-face discussions The GE ompany intranet staff newsletters 22 y what means is a business most likely to send urgent and confidential documents to clients? courier service internet letter post parcel post ULES /11/O/N/17 [Turn over

8 23 Which is not an advantage of sending an item by registered mail? 8 compensation when lost proof of postage security speed of delivery 24 What is an advantage of road transport over rail transport? fixed timetables minimum transhipment quicker over long distances suitable for bulky loads 25 How do low-cost airlines reduce their costs? allowing excess baggage on board flying into main city airports providing on-board meals selling tickets online 26 Which airport service is least likely to assist the import and export of goods? customs facilities digital information boards road and rail access security 27 Which feature applies to all types of warehouse? located on the outskirts of towns owned by wholesalers provides suitable storage for commodities situated near major roads ULES /11/O/N/17

9 28 There are several types of warehouse where bulk quantities of goods are stored. In which warehouse will seasonal non-perishable goods be stored until they are sold? 9 bonded warehouse cold storage warehouse general wholesaler s warehouse regional distribution centre 29 Which circumstance is an insurable risk? a business partner insuring the life of his partner a property owner insuring a neighbour s house a television company insuring against bad management a tenant insuring her rented flat 30 The diagram shows the procedure for taking out an insurance policy through an insurance broker. proposer contacts insurance broker proposer completes proposal form X proposer pays insurance premium insurance company issues policy What is X? insurance company assesses risk insurance company issues cover note proposer pays commission to insurance broker proposer studies prospectus issued by insurance company 31 record of the customer s transactions with a bank is available to the customer in the form of a credit slip. a letter. a statement. an account. ULES /11/O/N/17 [Turn over

10 10 32 Why are deposits at commercial banks classified as money? They are liabilities to banks. They can be used to settle debts. They can be withdrawn at any bank. They earn interest for the depositor. 33 What is a bill of exchange? a document used by international travellers to pay hotel bills a guarantee of payment to an importer a promise to pay a debt at a fixed date in the future a sum of money shown on an invoice 34 n expanding business requires a large area for a factory building. Where would it be likely to locate? a central residential area a shopping mall between two towns an industrial estate close to a town the central business district of a city 35 Which statement best describes how a public sector firm differs from a private sector firm? Investment is funded through selling shares on a stock exchange. Its main objective is to serve the public interest. Public sector firms offer services that the private sector does not provide. There is no need for public sector firms to make a profit. 36 Mr Patel s computer advisory service has grown quickly. He decides to set up a franchise. What does this mean for Mr Patel? He will become a franchisor. He will borrow money to open a new office. He will have to make royalty payments. He will take on a new partner. ULES /11/O/N/17

11 11 37 Which source of finance is the most appropriate for a company that wishes to replace its vehicles every two years? hire purchase leasing mortgage overdraft 38 What is an example of short-term finance for a company? applying for a government grant extending trade credit with its suppliers increasing the number of shares on offer to the public taking out a new loan 39 What is part of a clothing manufacturer s fixed (non-current) assets? cloth dresses packaging materials sewing machines 40 retailer has the following trading figures. $ sales cost of goods sold opening stock (inventory) closing stock (inventory) What is the retailer s rate of inventory turnover? ULES /11/O/N/17

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. To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the ambridge International Examinations opyright cknowledgements ooklet. This is produced for each series of examinations and is freely available to download at after the live examination series. 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. ULES /11/O/N/17

UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Ordinary Level

UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Ordinary Level UNIVERSITY OF MRIGE INTERNTIONL EXMINTIONS General ertificate of Education Ordinary Level *4869887961* OMMERE 7100/01 Paper 1 Multiple hoice October/November 2009 dditional Materials: dditional Materials