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1

Which of the following is a human want?

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2

In which stage of production is the construction industry classified?

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

Advertising, banking and insurance are collectively known as A commercial services. B distribution. C essential services. D trade.

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

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

2. Commercial operations  →  2.4. Wholesaling

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4

How does commerce assist industry?

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

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

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5

What is a feature of a multiple chain store?

2. Commercial operations  →  2.3. Retailing

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6

Which action is a small-scale retailer most likely to take to compete with large-scale retailers?

2. Commercial operations  →  2.3. Retailing

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

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7

Saranjit wishes to purchase a motorbike that costs $1200. She cannot afford to pay immediately. Under the terms of a credit agreement offered by the retailer, she will pay a deposit of $200 and then pay off the rest of the purchase price plus 10% interest in 12 equal instalments. If Saranjit accepts the offer of a credit agreement, how much will she pay for the motorbike?

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8

The diagram shows the financing of a television bought using a hire purchase agreement. finance house sale of television deposit consumer X payments for television monthly payment Identify X in the diagram. A creditor B investor C manufacturer D retailer

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

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9

What is not covered by consumer protection legislation?

6. Sustainability and ethics  →  6.3. Consumer protection

6. Sustainability and ethics  →  6.2. Ethics

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10

What is the advantage to a manufacturer of using the channel of distribution shown...

2. Commercial operations  →  2.4. Wholesaling

2. Commercial operations  →  2.3. Retailing

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

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11

What is a function of the wholesaler but not of the small retailer?

2. Commercial operations  →  2.4. Wholesaling

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

2. Commercial operations  →  2.3. Retailing

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12

In which order would the commercial documents concerning the purchase of goods be used?

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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13

A trader receives an invoice for $800 and is allowed 5% cash discount for payment within 7 days. If the trader immediately paid the invoice, how much would he pay?

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14

What is meant by the term mark-up?

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

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

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15

What is a function of a customs authority?

1. Commerce and production  →  1.1. Trade and commerce

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

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

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16

How do trading blocs, such as ASEAN and SADC, help to increase trade?

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

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17

Which of the following would help exporters to reduce their difficulties in trading?

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

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

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18

This advertisement aims to attract franchisees to buy a franchise from Roadmaster Ltd. Franchising opportunities from Roadmaster Ltd For tyres and batteries – supplies and fitting Are you an experienced motor mechanic?

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19

A manufacturer of soft drinks has decided to advertise on the Internet. This is because A computer users can block unwanted messages by installing security software. B instructions can be given on how to use the products. C market coverage is limited to those who surf the Internet. D the advertisement can appear on popular websites and homepages.

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 essential for trade to take place between a manufacturer in Asia and a retailer in Europe?

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

2. Commercial operations  →  2.4. Wholesaling

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

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21

What is an advantage to a company of using videoconferencing?

2. Commercial operations  →  2.6.3. Factors that affect communication

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

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22

Which postal service would be most suitable for a firm requiring proof of posting but neither compensation nor proof of receipt?

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23

Iron ore is being carried from Australia to Pakistan. Which method of sea transport is likely to be used to carry this iron ore?

4. Logistics in commerce  →  4.1. Transport

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24

What is an advantage to transport companies of using toll roads?

4. Logistics in commerce  →  4.1. Transport

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25

Which service is provided for an air freight company by an airport authority?

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

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

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26

The graph shows the sales of Product X. winter spring summer season autumn high sales low What is product X most likely to be?

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

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27

Why are selling costs in a cash and carry warehouse lower than in a traditional warehouse?

4. Logistics in commerce  →  4.2. Warehousing

2. Commercial operations  →  2.4. Wholesaling

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

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28

Which type of warehouse would an importer of tea need to run his business efficiently?

4. Logistics in commerce  →  4.2. Warehousing

2. Commercial operations  →  2.3. Retailing

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29

What is the basis of insurance?

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

After an insured risk has occurred, what would not be covered by consequential loss?

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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31

What does the principle of indemnity state?

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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32

Tariq’s new sports car is worth $30 000 but he has insured it for $24 000. Yesterday the car was involved in an accident and will cost $15 000 to repair. If Tariq claims on his policy, what is the maximum amount that the insurance company is likely to pay out?

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

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33

A night safe is used for the safekeeping of A cheque books when they are not in use. B jewellery and important documents. C money collected after banking hours. D money deposited during the day.

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

2. Commercial operations  →  2.5. Trading documents

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34

Banks provide automatic teller machines (ATMs) at which customers can use debit cards to obtain cash. For which other purpose can a customer use an ATM?

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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35

Which banking service is not available on the Internet?

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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36

Who owns a public sector enterprise?

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

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37

Which type of business is most likely to own the van shown...

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

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38

What is an advantage of franchising to the franchisee?

2. Commercial operations  →  2.1.4. Franchises

2. Commercial operations  →  2.3. Retailing

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39

Anand wishes to buy a van for use in her business. She has decided to finance the purchase by using hire purchase. Why is hire purchase the best source of finance for Anand to use?

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

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40

The table shows figures taken for the year 2012 from a trader’s accounts. $ gross profit 20 000 net profit 12 000 cost of goods sold 80 000 cost of average stock 10 000 What is the rate of turnover?

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

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