7100_w13_qp_21
A paper of Commerce, 7100
Questions:
8
Year:
2013
Paper:
2
Variant:
1
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1
Fishing is a primary industry. A large amount of fish is sold to canning factories. Many fishermen own their own boats. Explain why a fisherman is classified as a primary producer. State three ways in which a fisherman might make use of banking and finance. Explain why it is important for a fisherman to take out insurance. How important is warehousing to a fishing industry? Give reasons for your answer. Explain how communications would assist a canning factory to sell its products.
1. Commerce and production  →  1.2. Production
1. Commerce and production  →  1.1.2. Aids to trade and logistics
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2
Maisie is considering opening a coffee bar. Explain two factors that should be considered when deciding on a location for the coffee bar. To what extent will Maisie be involved in trade? Give reasons for your answer. Explain why protection of the consumer is important to Maisie and her customers. Maisie will expect to be given trade credit by wholesalers who supply her. What are the advantages of trade credit for Maisie? Why will these wholesalers also offer Maisie trade discount?
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
6. Sustainability and ethics  →  6.3. Consumer protection
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3
Fig. 1 shows an advertisement with a sales promotion. POPPO LTD SWEATERS FOR EVERY OCCASION All sizes available in black, blue or red BUY NOW WHILE STOCKS LAST Only $12.50. Second one half price. Postage and Packing $4. Rapid ordering service using telephone number 123456789 or order online at www.poppo.com. All credit cards accepted. Fig. 1 Use the information given in Fig. 1 to help you to answer the following questions. Identify one way in which the advertisement shown in Fig. 1 is persuasive. A customer orders two sweaters. Calculate the total cost of the order. Show your working. Why does Poppo Ltd accept credit card payments? State and explain one other method of payment that could be used to pay for the sweaters. Explain the advantages to a company of operating a mail order catalogue company rather than a chain of multiple shops. Discuss whether it is better for customers to order goods using the telephone or to order online. Give reasons for your answer.
5. Aids to trade that support commerce  →  5.1.4. Sales promotion
2. Commercial operations  →  2.5.3. Digital use of trading documents
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4
Lucy and Imran own a fashion boutique as a partnership. They invite Max to join them as a sleeping partner. State three features of a partnership. Explain why operating a business as a partnership might be considered risky. Explain what is meant by a sleeping partner. After signing the partnership deed, Max applies to an insurance company to buy insurance cover against the failure of the business. Will the insurance company accept Max’s application or not? Give reasons for your answer. Lucy and Imran are considering: • introducing a store card for customers • offering informal credit to customers • providing loyalty cards for customers. Would these benefit the business? Give reasons for your answer.
5. Aids to trade that support commerce  →  5.3.3. How enterprises make use of insurance
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5
Brookdown is a multinational company in the hospitality industry. It owns hotels, sports and leisure facilities, in many parts of the world. Explain two ways in which Brookdown might maintain its share of the market. Explain the ways in which Brookdown might raise finance to develop a resort hotel in Hong Kong. Why is an Internet website important for Brookdown’s business? Brookdown operates in many parts of the world. Are the trading activities of this company important to the countries in which it operates? Give reasons for your answer.
2. Commercial operations  →  2.1.3. Multinational companies (MNCs) in the global economy
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6
The table in Fig. 2 shows the number of retail outlets in a town. 1 department store 2 supermarkets 3 variety chain stores 12 multiple chain stores 28 independent shops 1 street market Fig. 2 Use the information given in Fig. 2 to help you to answer the following questions. State two features of: a department store a street market. What is the difference between a variety chain store and a multiple chain store? Calculate the number of large-scale retailers in this town. Show your working. Explain two possible reasons why there are more independent shops in this town than other types of retailer. Why do some of the shops in the town offer after-sales service to their customers? The two supermarkets in the town are owned by large retail businesses who also own many other supermarkets. How important is transport for the successful operation of these supermarkets? Give reasons for your answer.
2. Commercial operations  →  2.3. Retailing
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7
Some car companies in the international motor industry manufacture cars in countries where tariffs and quotas exist. Explain what are meant by: tariffs quotas. What effect will the introduction of tariffs and quotas have on: the import of foreign cars into a country domestic industries within that country? Explain how the following will affect the Balance of Payments of a country: a company manufacturing cars there for export an importer of car parts a bank in that country providing services to customers in other countries. ‘The growth of the global economy makes countries more dependent on one another.’ Is this true? Give reasons for your opinion.
2. Commercial operations  →  2.1.3. Multinational companies (MNCs) in the global economy
3. Globalisation of trade  →  3.1.4. Free trade, trading blocs, trade restrictions and sources of support for exporters
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8
Fig. 3 shows a price list that appeared in a trade magazine. LATIFF CASH AND CARRY WHOLESALERS Light Bulbs and Electrical Accessories Prices per 100: coloured light bulbs $50 clear light bulbs $50 plugs $80 adaptors $100 extension sockets $200 Minimum order $50 Quality Guaranteed Fig. 3 Use the information given in Fig. 3 to help you to answer the following questions. Why was this price list placed in a trade magazine rather than in a newspaper? Calculate the cost to a retailer of 1000 extension sockets. Show your working. Name and describe two commercial documents that Latiff would use when selling the extension sockets to a retailer. Another retailer bought 2000 coloured light bulbs and put a mark up of 15% on these light bulbs when he sold them. Calculate his gross profit if all the light bulbs were sold. Show your working. Discuss whether it is better for Latiff to operate as a cash and carry wholesaler rather than to operate as a traditional wholesaler. Give reasons for your answer.
2. Commercial operations  →  2.4. Wholesaling
5. Aids to trade that support commerce  →  5.4.2. Commercial calculations
2. Commercial operations  →  2.3. Retailing
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