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1

The diagram shows the stages of production. production tertiary commercial services secondary X primary extractive What is X?

1. Commerce and production  →  1.2. Production

1. Commerce and production  →  1.1.4. The relationship between production, trade and commerce

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2

What is the advantage to a factory owner of using specialisation?

1. Commerce and production  →  1.2. Production

1. Commerce and production  →  1.2.2. In-house production and outsourced production

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3

What is meant by commerce?

1. Commerce and production  →  1.1.3. Types of commerce

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4

An example of the interdependence between industry and direct services is A a construction company advertising its range of charges. B a drilling company taking out employer’s liability insurance for its workers. C a manufacturer making medical equipment for doctors. D a wholesaler raising finance from a bank.

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

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

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

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5

Which service is carried out by the retailer to help both the customer and the manufacturer?

2. Commercial operations  →  2.4. Wholesaling

2. Commercial operations  →  2.3. Retailing

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6

What is a feature of a department store and not of an e-shop?

2. Commercial operations  →  2.3. Retailing

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7

The diagram shows four characteristics of large-scale retailers. Which characteristic suggests that their customers can expect to purchase branded products?

2. Commercial operations  →  2.3. Retailing

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8

One of the advantages of ecommerce is that it enables small firms supplying a specialised market to increase their sales. To which business would this be most likely to apply?

2. Commercial operations  →  2.3. Retailing

1. Commerce and production  →  1.1.3. Types of commerce

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9

What is an advantage to a business of selling on credit?

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

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

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10

This label was displayed on a tablet computer in a store. Cash Price: $450 Hire Purchase Price: Deposit $200 and 12 monthly installments of $25 How much more would the tablet computer cost if it was bought on hire purchase?

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11

Buying in bulk and selling in smaller quantities is an important service which is provided by the A manufacturer for the retailer. B manufacturer for the wholesaler. C retailer for the wholesaler. D wholesaler for the retailer.

2. Commercial operations  →  2.4. Wholesaling

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

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12

MM Ltd produces parts for cars. The manager wants to find buyers for the goods which are kept at the factory and which MM Ltd will deliver to the buyer. She decides to use the services of an intermediary to find buyers for the goods. Which intermediary is she most likely to use?

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

2. Commercial operations  →  2.4. Wholesaling

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13

The diagram shows part of the flow of documents between the buyer and seller in home trade. order → X → invoice What is the document marked X?

2. Commercial operations  →  2.5. Trading documents

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

2. Commercial operations  →  2.5.2. Documents of international trade

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14

Mr Amon bought goods at $400 less 25% trade discount. He paid promptly and received a cash discount of 5%. How much did he pay for the goods?

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15

What does an unfavourable Balance of Trade mean?

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

1. Commerce and production  →  1.1. Trade and commerce

3. Globalisation of trade  →  3.1. International trade

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16

What are ASEAN and the EU examples of?

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

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17

SS Ltd wishes to export its sportswear. It must consider the following factors when researching potential markets. climatic conditions cultural requirements language differences Which other factor is most likely to influence its choice of potential markets?

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

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

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18

The diagram shows a notice in a shop window aimed at attracting customers into the shop. An extra 10% off today only Which statement describes this notice?

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

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

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19

Why would WW Ltd make increasing use of the internet to advertise its products?

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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20

What is browsing the internet by going from one page to another known as?

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

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21

What is not an example of social media?

1. Commerce and production  →  1.1.3. Types of commerce

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

2. Commercial operations  →  2.6.2. Methods of communication

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22

What is a feature of rail transport?

4. Logistics in commerce  →  4.1. Transport

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23

What is an advantage of containerisation?

4. Logistics in commerce  →  4.1. Transport

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24

What is mass rapid transit (MRT)?

4. Logistics in commerce  →  4.1. Transport

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25

Why would a consignment of goods sent from China to the UK be stored in a bonded warehouse?

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

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

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26

Why do hypermarkets need warehousing?

4. Logistics in commerce  →  4.2. Warehousing

2. Commercial operations  →  2.4. Wholesaling

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

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27

The following information concerns an insurance company. $ m administration costs claims by policy holders interest on investments premiums received How much is the profit of the insurance company?

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

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28

What does employer’s liability insurance cover?

5. Aids to trade that support commerce  →  5.3.2. Types of insurance risk

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

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29

What does the principle of indemnity state?

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

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

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30

Which banking service is shown...

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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31

Mr Soon has an overdraft limit of $5000. His current account has a credit balance of $300. If he draws further cheques totalling $2000, what will be the overdrawn balance on his account?

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

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32

Which service, offered to bank customers, enables them to make fixed payments at regular intervals?

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

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

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33

The diagram shows reasons for the location of a business. X good road network large site with low rent close to several towns supply of labour What type of business is marked X?

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

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34

A shareholder in a public limited company can sell his shares by A advertising them in a newspaper. B asking the company to buy them back. C offering them on the stock exchange. D transferring them to friends and family.

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

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35

The diagram shows four businesses involved in a franchise. B Ltd D Bank plc C Ltd A Foods plc pays royalties allows use of name lends money supplies food Which business is the franchisee?

2. Commercial operations  →  2.1.4. Franchises

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

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36

A public limited company has been refused a bank loan for an expensive project. What would be the most suitable course of action for this company to take to obtain the finance?

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

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37

The following information relates to a sole trader. $ current liabilities 20 000 stock 10 000 debtors 15 000 cash in hand 10 000 What is the sole trader’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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38

What is an example of an economic factor affecting commercial activities?

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

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

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

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39

What is a commercial effect of ecommerce?

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

1. Commerce and production  →  1.1.3. Types of commerce

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40

Which product may contribute to global warming?

6. Sustainability and ethics  →  6.1.2. Actions to improve sustainability

3. Globalisation of trade  →  3.2.2. Global supply chain risks

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