7100_s05_qp_2
A paper of Commerce, 7100
Questions:
8
Year:
2005
Paper:
2
Variant:
0
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1
‘Consumers have many wants and needs which are satisfied by both home and international trade.’ Explain, with examples, the meaning of this statement. International trade has become increasingly important to many countries. Explain how each of the following has assisted international trade: communication warehousing. ‘As the result of being in a global market, countries are becoming increasingly interdependent.’ Is this true? Explain your answer.
1. Commerce and production  →  1.1. Trade and commerce
1. Commerce and production  →  1.1.4. The relationship between production, trade and commerce
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2
Fig. 1 gives details of Chocolick, a company using e-commerce to sell chocolates on the Internet. Fig. 1 Use Fig. 1 to help you to answer the following questions. Explain the term ‘e-commerce’. Explain two reasons why e-commerce is becoming increasingly important. Calculate how much a customer would pay if she purchased 4 1kg boxes of assorted chocolates and 2 boxes of milk chocolates. Show your working. Suggest one method of delivering this order for chocolates: A to an address in the same country B to an address in another country. Explain why attractive packaging is used for the chocolates. Chocolick uses the Internet to advertise and sell its chocolates. Discuss other ways in which the staff of Chocolick might make use of computers to run the business. CHOCOLICK www.chocolick.com Extensive range of high quality chocolates in attractive packaging 500g box of milk chocolates $25 500g box of assorted chocolates $30 1kg box of assorted chocolates $50 Prices: Delivery: within 10 days
2. Commercial operations  →  2.5.3. Digital use of trading documents
2. Commercial operations  →  2.3.4. Effects of ecommerce on traditional commerce
2. Commercial operations  →  2.3. Retailing
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3
The accountant in a small engineering company is responsible for paying suppliers who send the company invoices and statements of account. Explain why suppliers send the company both invoices and statements. Explain the advantages of using crossed cheques to pay the suppliers. The accountant wishes to pay some regular suppliers by direct debit rather than by cheque. Explain the main features of direct debit. Will the company benefit from using this method of payment? Give reasons for your answer. Explain how the accountant might make use of Internet banking.
5. Aids to trade that support commerce  →  5.2.2. Digital technology in banking
1. Commerce and production  →  1.2.5. Effects of digital technology on production
5. Aids to trade that support commerce  →  5.2. Banking
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5
[T Bing Ltd is a public limited company which employs a large number of people. It operates a wholesale business serving small-scale retailers in several large cities. Explain two characteristics of a public limited company. Bing Ltd offers credit to its customers (the small-scale retailers). Explain why Bing Ltd offers credit to them. Name and explain three other services Bing Ltd might offer to these small-scale retailers. Bing Ltd has insured against the following business risks: PUBLIC LIABILITY EMPLOYER’S LIABILITY CONSEQUENTIAL LOSS Is cover for these business risks needed by Bing Ltd? Give reasons for your answer.
2. Commercial operations  →  2.1.2. Types of private and public sector enterprises
2. Commercial operations  →  2.3. Retailing
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6
Fig. 2 shows a number of newspaper headlines labelled A–E relating to air transport. Fig. 2 Use Fig. 2 to help you to answer the following questions. Identify one advantage and one disadvantage of air transport as shown in the newspaper headlines labelled A–E. Explain why the volume of freight carried by aircraft continues to increase. Name two services provided at airports to protect passengers. Explain why low cost airlines are becoming so popular. Why is air transport suitable for emergency aid? Name two other groups of products for which air transport is particularly suitable. Give a reason for each of your choices. C RISING POPULARITY OF LOW COST AIRLINES WITH MORE CONGESTION AT OVERCROWDED AIRPORTS D EARTHQUAKE DISASTER Emergency aid provided using nearby airport B THE VOLUME OF FREIGHT CARRIED BY AIRCRAFT CONTINUES TO INCREASE A SUCCESSFUL AIRLINES CANNOT FLY ALL ROUTES E TRAVELLERS DEMAND MORE AIRPORT SECURITY THE FUTURE OF AIR TRANSPORT
4. Logistics in commerce  →  4.1. Transport
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7
[T Fig. 3 shows several sources of finance available to a multinational company. Fig. 3 Use Fig. 3 to help you to answer the following questions. Explain, using an example, what is meant by a multinational company. Explain three reasons why multinational companies are important in the global economy. Using Fig. 3, identify: one source of short-term finance one source of long-term finance. Giving reasons for your choices, recommend a source of finance given in Fig. 3 that the multinational company might use to: update its computer system build a new factory in another country improve its cash flow. (Do not use the same source of finance more than once.) QUESTION 8 IS ON THE NEXT PAGE OVERDRAFT RETAINED PROFIT DEBENTURES MULTINATIONAL COMPANY BANK LOAN TRADE CREDIT ORDINARY SHARES
2. Commercial operations  →  2.1.3. Multinational companies (MNCs) in the global economy
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8
Rita Shah is a nurse. She is setting up a small business offering nursing services. Explain why Rita will need to use the following for her new business: informative advertising persuasive advertising. Some of the general factors to consider when choosing suitable media for advertising a small business are: COST OF MEDIA TARGET AUDIENCE METHODS OF APPEAL Are these important factors for Rita’s business? Explain your answer. Rita has been advised that many businesses fail during their first two years. Explain the importance of working capital to her business. Suggest ways in which she could make a profit.
5. Aids to trade that support commerce  →  5.1. Advertising
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