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1

The diagram shows an industrial building. For what is this building most suitable?

1. Commerce and production  →  1.2. Production

2. Commercial operations  →  2.1.5. Physical and ecommerce location factors

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2

Deep Velvet is a luxury chocolate brand. In what way does the manufacturer of Deep Velvet add value to the chocolates?

2. Commercial operations  →  2.4. Wholesaling

2. Commercial operations  →  2.3. Retailing

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3

Why do some retailers buy directly from manufacturers?

2. Commercial operations  →  2.3. Retailing

1. Commerce and production  →  1.2.4. Intermediaries in a supply chain

2. Commercial operations  →  2.4. Wholesaling

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4

How might customers benefit from loyalty cards provided by retailers?

2. Commercial operations  →  2.3. Retailing

2. Commercial operations  →  2.3.4. Effects of ecommerce on traditional commerce

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5

The picture shows part of the packaging of a product. What is shown...

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6

Ahmed has seen an advertisement for a computer. It includes the words ‘credit terms available’. Which statement explains why he is interested in buying the computer shown...

5. Aids to trade that support commerce  →  5.1. Advertising

5. Aids to trade that support commerce  →  5.2. Banking

6. Sustainability and ethics  →  6.3. Consumer protection

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7

Mrs Khan has a credit card. Her statement for April is shown...

3. Globalisation of trade  →  3.1.3. Balance of Trade and Balance of Payments

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8

A shopkeeper must exchange goods when A a shopper does not want the goods after they have been paid for. B a shopper prefers another item after the goods have been paid for. C goods are deliberately damaged just after they have been bought. D goods have faults but are supposed to be in perfect condition.

1. Commerce and production  →  1.1.3. Types of commerce

1. Commerce and production  →  1.2.4. Intermediaries in a supply chain

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9

The wholesaler is not likely to be needed in the distribution of A books. B bread. C canned foods. D clothing.

2. Commercial operations  →  2.4. Wholesaling

1. Commerce and production  →  1.2.4. Intermediaries in a supply chain

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10

Which service is provided by wholesalers to manufacturers?

2. Commercial operations  →  2.4. Wholesaling

1. Commerce and production  →  1.2.4. Intermediaries in a supply chain

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11

The diagram shows four different intermediaries a manufacturer, Salmon & Company, could use to export its products. agent Salmon & Company merchant broker factor Which activity applies only to a merchant when preparing to export Salmon & Company’s products?

1. Commerce and production  →  1.2.4. Intermediaries in a supply chain

1. Commerce and production  →  1.1.2. Aids to trade and logistics

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12

What is the function of a Customs Authority?

1. Commerce and production  →  1.1. Trade and commerce

3. Globalisation of trade  →  3.1.2. Challenges of international trade to exporters and importers

1. Commerce and production  →  1.2.6. Costs involved in trade, commerce and production

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13

Which document is widely used between buyers and sellers in home trade?

2. Commercial operations  →  2.5. Trading documents

2. Commercial operations  →  2.5.2. Documents of international trade

1. Commerce and production  →  1.1. Trade and commerce

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14

Which document is used to request payment from customers who buy on credit?

2. Commercial operations  →  2.5. Trading documents

2. Commercial operations  →  2.5.3. Digital use of trading documents

5. Aids to trade that support commerce  →  5.2. Banking

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15

A wholesaler has the following rates of trade discount. % 0-500 units 501-1000 units 1001-1500 units A retailer secures a reduction of $3.75 from an article’s list price of $15. What was the size of the order?

2. Commercial operations  →  2.4. Wholesaling

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16

A school’s monthly statement from a bookseller received on 7th May shows that it owes $800. The cash discount terms are 5% two weeks, 2.5% one month. The account is settled on 28th May. How much cash discount is given?

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17

Why might a company benefit from international trade?

3. Globalisation of trade  →  3.1. International trade

3. Globalisation of trade  →  3.1.4. Free trade, trading blocs, trade restrictions and sources of support for exporters

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18

Why does a trader exporting goods to another country have more difficulties than a trader selling in the home market?

3. Globalisation of trade  →  3.1.2. Challenges of international trade to exporters and importers

3. Globalisation of trade  →  3.1.4. Free trade, trading blocs, trade restrictions and sources of support for exporters

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19

Why might advertising lead to lower prices?

5. Aids to trade that support commerce  →  5.1. Advertising

5. Aids to trade that support commerce  →  5.1.4. Sales promotion

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20

The diagram shows an advertisement. GOVERNMENT HEALTH DEPARTMENT KEEP HEALTHY BY EATING FRUIT DAILY These contain vitamins, minerals and are low in calories. Which type of advertising is shown...

5. Aids to trade that support commerce  →  5.1. Advertising

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21

What is the most appropriate form of advertising for a small shop?

5. Aids to trade that support commerce  →  5.1.2. Methods of traditional and digital advertising media

5. Aids to trade that support commerce  →  5.1. Advertising

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22

Which of the following is an example of sales promotion?

5. Aids to trade that support commerce  →  5.1.4. Sales promotion

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23

Which telecommunications method allows users to access information world-wide?

2. Commercial operations  →  2.6.2. Methods of communication

2. Commercial operations  →  2.6.3. Factors that affect communication

2. Commercial operations  →  2.6. Communication

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24

A customer in Pakistan wishes to inform his UK supplier immediately that a recent delivery was not up to the quality expected. What would be the most appropriate method of communication?

2. Commercial operations  →  2.6.3. Factors that affect communication

2. Commercial operations  →  2.6.2. Methods of communication

2. Commercial operations  →  2.6. Communication

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25

Which postal service would a large retail outlet use to send monthly statements to its customers?

2. Commercial operations  →  2.3. Retailing

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26

5000 copies of a best-selling book have been reprinted and need to be taken urgently from Singapore to New York. What is the most suitable method of transport the publisher could use?

4. Logistics in commerce  →  4.1. Transport

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27

Which factor might limit the growth of air transport?

4. Logistics in commerce  →  4.1. Transport

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28

For each additional day that vegetables are kept in warehouses, A costs of warehousing are reduced. B more profit is gained on the capital employed. C the risk of wastage increases. D the vegetables increase in value.

4. Logistics in commerce  →  4.2. Warehousing

2. Commercial operations  →  2.3. Retailing

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29

Which statement about a bonded warehouse is correct?

4. Logistics in commerce  →  4.2. Warehousing

1. Commerce and production  →  1.2.3. Global supply chains

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30

What is the contract between the insurance company and the insured called?

5. Aids to trade that support commerce  →  5.3.3. How enterprises make use of insurance

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31

Four people work in the insurance industry. Which person would be working as an insurance broker?

5. Aids to trade that support commerce  →  5.3.3. How enterprises make use of insurance

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32

When a claim is agreed by an insurance company, the insured usually pays the first portion of what is due. Which term is used for such a payment?

5. Aids to trade that support commerce  →  5.3.3. How enterprises make use of insurance

5. Aids to trade that support commerce  →  5.3. Insurance

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33

Internet banking is widely used because customers can A carry out transactions without any danger of fraud. B obtain cash through the Internet. C pay in cash and cheques. D use banking services at any time.

5. Aids to trade that support commerce  →  5.2.2. Digital technology in banking

5. Aids to trade that support commerce  →  5.2. Banking

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34

What is an advantage of a bank current account?

5. Aids to trade that support commerce  →  5.2.2. Digital technology in banking

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35

A letter of credit ensures that goods involved in international trade have had A customs duties paid. B insurance arranged. C payment guaranteed. D their quality checked.

3. Globalisation of trade  →  3.1.2. Challenges of international trade to exporters and importers

2. Commercial operations  →  2.5.2. Documents of international trade

3. Globalisation of trade  →  3.1.4. Free trade, trading blocs, trade restrictions and sources of support for exporters

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36

A bank statement for Miss Chang is shown...

3. Globalisation of trade  →  3.1.3. Balance of Trade and Balance of Payments

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37

Which of the four organisations is in the public sector?

2. Commercial operations  →  2.1.2. Types of private and public sector enterprises

2. Commercial operations  →  2.1. Commercial enterprises

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38

A public limited company may raise more capital by A arranging for a bank overdraft. B delaying payment of bills. C getting a short term loan from the bank. D issuing ordinary shares.

5. Aids to trade that support commerce  →  5.4. Sources of finance and commercial performance

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39

For which purpose would a bank manager offer a loan rather than an overdraft to a small-scale retailer?

2. Commercial operations  →  2.3. Retailing

2. Commercial operations  →  2.4. Wholesaling

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40

The diagram shows a company’s assets and liabilities. buildings $180 000 vehicles $20 000 debtors $9000 ASSETS creditors $18 000 overdraft $20 000 loan $150 000 stock $40 000 cash $11 000 LIABILITIES What is the company’s working capital?

5. Aids to trade that support commerce  →  5.4. Sources of finance and commercial performance

5. Aids to trade that support commerce  →  5.4.2. Commercial calculations

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