7100_w13_qp_22
A paper of Commerce, 7100
Questions:
8
Year:
2013
Paper:
2
Variant:
2
Login to start this paper & get access to powerful tools
1
Sari and Ismail have opened a shop selling computers. They also repair customers’ computers. They work in the tertiary sector of production. What is meant by the tertiary sector? Name one other sector of production. Sari is responsible for sales. Ismail does the accounts and specialises in repairing customers’ computers. Explain one advantage to the customers of Ismail specialising in repairing their computers. Explain one advantage to the business of Sari specialising in sales. At the end of the first year of trading, Sari and Ismail’s business showed the following trading figures: cost of sales $25 000 income from computer repairs $12 000 income from computer sales $44 000 Fig. 1 Use the information from Fig. 1 to help you to answer the following questions. Calculate the total sales revenue. Show your working. Calculate the gross profit. Show your working. State what additional information Sari and Ismail would need to calculate their net profit. Explain one reason why it is important that Sari and Ismail make a profit from their business. The income from computer repairs is far less than the income from sales. Do you think that Ismail should stop specialising in repairs and help Sari with sales? Give reasons for your answer. Mention any additional information you might need to give a more informed opinion.
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
Open
2
Busybuy Stores is a large retailing business with supermarkets in many parts of a country. It has regional distribution warehouses and its own fleet of delivery vehicles. It also offers an online shopping service to customers. As part of its expansion plans, Busybuy Stores has decided to build a new supermarket near the town of Ishi on the site marked Y shown on the map in Fig. 2. MI NO R RO AD MINO R R O A D MIN O R RO AD MAJOR ROAD MAJOR ROAD MOTORWAY MAJOR ROAD MAJOR ROAD RAILWAY RAILWAY SITE X SITE Y VANU TOWN CENTRE ISHI TOWN CENTRE Fig. 2 Use the information given in Fig. 2 to help you to answer the following questions. Explain what is meant by a supermarket. Explain two reasons why Site Y is a more suitable site for the new supermarket than Site X. Identify another type of large-scale retailing for which Site X might be more suitable. Give a reason for your answer. Explain two advantages to Busybuy Stores of owning its own fleet of vehicles. Should Busybuy Stores develop its online shopping service to customers rather than continuing to build new supermarkets? Give reasons for your opinion.
2. Commercial operations  →  2.3. Retailing
2. Commercial operations  →  2.1.5. Physical and ecommerce location factors
Open
3
Takunda Ltd sells its fizzy drinks in bulk to wholesalers and large-scale retailers all over the country. Explain how Takunda Ltd would make use of the following to assist its business: warehousing banking ‘Branding and packaging are essential for the fizzy drinks that Takunda Ltd sells’. Discuss this statement. Is it true? Give reasons for your answer. ‘Wholesalers break bulk’ State what is meant by this. Show why this service is important to many retailers. Explain two other services offered by wholesalers to retailers.
2. Commercial operations  →  2.4. Wholesaling
2. Commercial operations  →  2.3. Retailing
Open
4
Makore Ltd is a public limited company trading in a number of markets. It sells electronic toys. Many of its customers are private limited companies. State two characteristics of public limited companies that do not apply to private limited companies. State two characteristics of private limited companies that do not apply to public limited companies. The shareholders of all companies have limited liability. Why is limited liability important to shareholders? Explain the benefits to Makore Ltd of trading in a number of markets. Makore Ltd has seen a rise in profits over the last year. State three possible reasons for Makore Ltd’s rise in profits over the last year. The directors of Makore Ltd wish to maintain this rise in profits. They are considering some of the following options: • offering more products • opening sales offices in more countries • increasing the money spent on advertising and sales promotion. Consider these options. Recommend a possible course of action to the directors. Give reasons for your recommendation.
2. Commercial operations  →  2.1.2. Types of private and public sector enterprises
Open
5
Tresum Ltd is a manufacturer of motor vehicle parts. Most of its products are exported. Last year the value of the total sales of the company was $210m, of which export sales were $180m. EUROPEAN UNION 40% SOUTHEAST ASIA 25% INDIA AND PAKISTAN 15% USA 10% OTHER COUNTRIES 10% EXPORT MARKETS FOR TRESUM LTD VALUE OF EXPORT SALES = $180 m Fig. 3 Use the information in Fig. 3 to help you to answer the following questions. Which area was the largest export market for Tresum Ltd? Calculate the total value of export sales to Southeast Asia. Show your working. Calculate the total value of sales Tresum Ltd made in its home market. Show your working. Explain how Tresum Ltd will contribute to the Balance of Trade in the country in which it is based. Some of the countries to which Tresum Ltd exports may introduce import quotas. Explain the possible effects on Tresum Ltd’s business. Tresum Ltd exports its motor vehicle parts in containers. Explain two benefits to Tresum Ltd of using containers for its exports. Tresum Ltd wants to expand into other markets. It has always found overseas buyers for itself. Should the company now consider using intermediaries such as brokers and factors? Give reasons for your answer.
3. Globalisation of trade  →  3.1.3. Balance of Trade and Balance of Payments
3. Globalisation of trade  →  3.1.2. Challenges of international trade to exporters and importers
1. Commerce and production  →  1.1.4. The relationship between production, trade and commerce
Open
6
A manufacturer based in a city in the centre of a country is selling a large consignment of furniture to a retailer located in a town 450 kilometres from the manufacturer. Identify two commercial documents that would be used by the manufacturer in this transaction and explain when each would be used. Describe two business risks against which the manufacturer might insure. Name two documents that would be completed when taking out insurance cover. The following methods of transport are available to the manufacturer within this country. AIR ROAD RAIL Discuss which method of transport would be most suitable to move this large consignment of furniture to the retailer. Give reasons for your choice. The consignment has been delayed. Explain how the manufacturer would inform the retailer of this delay. Give reasons for your answer.
2. Commercial operations  →  2.4. Wholesaling
4. Logistics in commerce  →  4.1. Transport
Open
7
Mrs Ho wishes to buy a home cinema system costing $5000. Explain the advantages to Mrs Ho of the following means of payment: paying cash using a credit card buying it on hire purchase. What factors would you need to take into account when deciding which of these means of payment to recommend to Mrs Ho? Mr Bin wishes to buy a car. He could finance the payment by using either a loan or an overdraft. Discuss both sources of finance. Which would you recommend to him? Give a reason for your choice. Miss Zile has used a debit card to pay for goods in a multiple chain store. Explain the benefits to the multiple chain store of accepting debit cards for purchases.
5. Aids to trade that support commerce  →  5.2. Banking
5. Aids to trade that support commerce  →  5.2.2. Digital technology in banking
Open
8
Fig. 4 shows a box of chocolate cakes. JOUNCY CHOCOLATE CAKES FOOD YOU CAN TRUST JOUNCY CHOCOLATE CAKES $1 $1.50 7 for the price of 5 Delicious cakes topped with chocolate icing To speak to us about this product phone 0123456789 175 g Fig. 4 Use the information in Fig. 4 to help you to answer the following questions. Identify, from Fig. 4, an example of: sales promotion persuasive advertising. Explain why the advertising on the packet of chocolate cakes is not an example of collective advertising. The packaging contains a bar code. State two functions of a bar code. A customer bought a packet of the chocolate cakes. There were only six in the packet. Explain what actions he should take. Advertisers make use of devices. Giving an example, explain what is meant by an advertising device. How important is it to advertise and promote goods in order to sell them? Give reasons for your answer.
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
Open