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1

At which stage is production completed?

2. Commercial operations  →  2.4. Wholesaling

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

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2

The diagram below shows a chain of production for a wooden box. cost of planting trees used to make a box $5 consumer buys a wooden box in a shop at a price of $72 retailer buys a wooden box at a price of $48 manufacturer buys wood at a price of $15 How much value does the manufacturer add in the making of the wooden box?

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

2. Commercial operations  →  2.4. Wholesaling

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3

Below is an incomplete diagram showing the structure of commerce. home trade foreign trade commerce aids to trade • advertising • banking • communications • X • insurance • warehousing Which item, marked X, is missing from the list of the aids to trade?

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

1. Commerce and production  →  1.1. Trade and commerce

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4

Why are there more new businesses in retailing than in manufacturing?

2. Commercial operations  →  2.3. Retailing

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5

The diagram shows two retailers, each selling only one main product. Hitched bridal gowns Melt handmade chocolates What is this type of shop called?

2. Commercial operations  →  2.3. Retailing

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6

Why might a customer wish to shop online rather than use telephone shopping?

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

2. Commercial operations  →  2.3. Retailing

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7

What is meant by credit?

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8

Why does a government introduce consumer protection laws?

6. Sustainability and ethics  →  6.3. Consumer protection

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

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9

Controls on advertising are supported by A codes of advertising practice. B collective advertising. C public liability insurance. D television programmes.

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

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10

What is the main service provided by a wholesaler?

2. Commercial operations  →  2.4. Wholesaling

2. Commercial operations  →  2.3. Retailing

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11

What is a reason for the decline in the importance of the wholesaler?

2. Commercial operations  →  2.4. Wholesaling

2. Commercial operations  →  2.3. Retailing

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12

The diagram shows the channel of distribution used by a Chinese manufacturer to export toys to Europe. Chinese manufacturer Forwarding agent X European wholesalers European retailers European consumers What does X represent?

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

2. Commercial operations  →  2.4. Wholesaling

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

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13

Which item is not included in an order?

2. Commercial operations  →  2.3. Retailing

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

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

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14

“2.5 % 1 month” is printed on an invoice totalling $100. What does this mean?

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15

Why might a wholesaler offer cash discount to a retailer?

2. Commercial operations  →  2.4. Wholesaling

2. Commercial operations  →  2.3. Retailing

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16

Which statement describes what happens in an entrepôt port?

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

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

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17

What is a function of a customs authority?

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

1. Commerce and production  →  1.1. Trade and commerce

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

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18

Why do developing countries want to keep some import tariffs?

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

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19

What is the aim of most advertising?

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

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

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20

This advertisement is for sports shoes. Want to be the FASTEST athlete in the world?

5. Aids to trade that support commerce  →  5.1.3. Methods of appeal used in advertising

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

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21

What is the main reason for the growth of advertising on the Internet?

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

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22

Why are communications important in the global economy?

2. Commercial operations  →  2.6.3. Factors that affect communication

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

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

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23

Which person would be most likely to use the postal service called Poste Restante?

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24

Which method of transport would be used to send oil from an inland well to a port located 500 km from it?

4. Logistics in commerce  →  4.1. Transport

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25

What is meant by ‘a bill of lading is a quasi-negotiable instrument’?

1. Commerce and production  →  1.1.3. Types of commerce

2. Commercial operations  →  2.5.2. Documents of international trade

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26

What is a responsibility of a port authority?

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

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

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27

What is required for the good running of a warehouse?

4. Logistics in commerce  →  4.2. Warehousing

2. Commercial operations  →  2.4. Wholesaling

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28

Imports may be stored in a bonded warehouse if A the importer wishes to delay payment of customs duty. B the rightful owner is not known. C they are required as security for a loan. D they are smuggled goods seized by customs officers.

4. Logistics in commerce  →  4.2. Warehousing

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

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29

What aspect of insurance does the diagram show?

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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30

You are applying for life insurance cover. Failure to inform the insurance company that you are suffering from a serious illness is a breach of A indemnity. B insurable interest. C subrogation. D utmost good faith.

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

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

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31

A fire has destroyed the insured house owned by Mr Maboto. What is the first thing he should do when making an insurance claim?

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

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32

What is a function of commercial banks?

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

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

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33

A customer has an agreed overdraft facility of $200. She has received a bank statement showing the balance of the account to be $120 overdrawn. The account was later credited $50. What is the new balance of her account?

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

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34

This diagram shows a cheque. Pay The sum of A/C Payee Date $ N Virji 3 Nov 2012 Ninety dollars only Sanjay Singh 90 - 00 Who is the drawer of this cheque?

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35

Which type of business organisation is not in the private sector?

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

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36

What is an advantage to a country of having a multinational company operating within its borders?

2. Commercial operations  →  2.1.3. Multinational companies (MNCs) in the global economy

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37

JK (Pvt) Ltd is a successful company. Why would the owners decide to turn JK (Pvt) Ltd into a public limited company?

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

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38

Which source of finance would be most suitable for a large company planning to modernise its manufacturing equipment?

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

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39

Jamal asks for a bank loan to purchase a truck. What evidence must he produce for the bank to grant him a loan?

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40

A trader has the following results: sales $800 000 cost of sales $650 000 expenses $90 000 What is the net profit?

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

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

5. Aids to trade that support commerce  →  5.4.3. Improving commercial performance

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