7100_w22_qp_22
A paper of Commerce, 7100
Questions:
5
Year:
2022
Paper:
2
Variant:
2
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1
Nazif is an online retailer who sells t-shirts from his parents’ house and garage. All the t-shirts are stored in the house and garage. He uses social media to advertise his t-shirts as shown in . Nazif You choose: Which t-shirt is your favourite? 30 October 2022 Like Comment Share Use to help you answer the following questions. Define online retailer. Do you think is an effective advertisement? Give reasons for your answer. Explain two difficulties to Nazif of storing all his t-shirts in his parents’ house and garage. 1. 2. Circle the correct answer to complete each of the following sentences. A person who can persuade others to buy goods on social media is a/an influencer OR specialist. One way to reduce the impact of fashion on the environment is to buy fewer clothes OR new clothes. Nazif’s t-shirts have sold well and he now wants to sell his t-shirts in small retail stores. He must decide which chain of distribution to use. He has two options: Option 1: supplying to small retailers directly Option 2: supplying through a wholesaler. Discuss each of these two options. Which would you recommend? Give reasons for your answer.
2. Commercial operations  →  2.3. Retailing
2. Commercial operations  →  2.4. Wholesaling
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2
AA Ltd is a private limited company that manufactures running shoes to sell in the home market. It employs over 70 workers who specialise in different parts of the production process. State two features of a private limited company. 1. 2. Describe two differences between home trade and overseas trade. 1. 2. Do you agree that specialisation benefits AA Ltd? Give reasons for your answer. AA Ltd wants to start selling overseas and become a public limited company. Explain one reason why customs officers might inspect the running shoes that AA Ltd transports overseas. Is a public limited company a better form of business ownership than a private limited company? Give reasons for your answer.
2. Commercial operations  →  2.1.2. Types of private and public sector enterprises
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3
BB Ltd is a toy manufacturer in Asia that is going to export for the first time to the European Union (EU) trading bloc. State two features of a trading bloc. 1. 2. Explain one advantage to BB Ltd of exporting. BB Ltd would like to receive payment by electronic transfer. Explain one reason why BB Ltd would prefer to receive electronic payment before transporting toys to export customers. Explain why buyers may not want to pay in advance. shows the estimated transit times and costs for the two methods of transport that BB Ltd could use to export the toys to the EU. $1000 $4000 1 – 10 days 23 – 43 days . Transport methods, times and costs from Asia to the EU Evaluate which method of transport BB Ltd should use. Give reasons for your answer.
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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4
Mrs Ali operates a convenience store. She provides informal credit to some customers and receives 30 days’ credit from some suppliers. A convenience store is a small-scale retailer. Give one other type of small-scale retailer. Do you think that Mrs Ali should offer informal credit to some customers? Give reasons for your answer. Explain one advantage and one disadvantage to Mrs Ali of receiving 30 days’ credit from some suppliers. Advantage Disadvantage Mrs Ali requires buildings insurance. Evaluate the role of an insurance broker in arranging buildings insurance for Mrs Ali. An insurance company charges Mrs Ali $21 per $10 000 insured for buildings insurance. Calculate the cost to Mrs Ali of insuring her store for $170 000. Show your working.
5. Aids to trade that support commerce  →  5.3.3. How enterprises make use of insurance
2. Commercial operations  →  2.3. Retailing
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5
Hassan offers customers the chance to experience driving a go-kart around a racetrack. He sells packages to individual customers and for group bookings. The go-kart experience package price list is shown in . THE HASSAN GO-KART EXPERIENCE PACKAGE PRICE LIST • Package A: $15 for 2 laps of the racetrack • Package B: $50 for 10 laps of the racetrack • Each extra lap charged at $5 • Helmet headcam to record your experience $20 • 10% discount for online booking at www.hassango-kart.com Using the information given in , complete –on the invoice below. THE HASSAN GO-KART EXPERIENCE INVOICE Customer name – Waleed Tarkan 15 October 2022 Description Quantity Cost ($) Total ($) Package B Extra laps Helmet headcam Total Discount for online booking Total to pay Hassan requires finance to improve his business. Which of these statements about finance are true and which are false? Tick (✓) TRUE or FALSE in the correct column. TRUE FALSE A go-kart helmet is a fixed asset. Working capital is important for paying Hassan’s bills. Creditors are suppliers who owe money to Hassan. Hassan wants to buy three new go-karts for $2800 each and make repairs to two other go-karts. The go-kart repairs will cost $300 each. Analyse Hassan’s decision to finance the purchase and repair by using an overdraft. Give reasons for your answer.
5. Aids to trade that support commerce  →  5.4. Sources of finance and commercial performance
5. Aids to trade that support commerce  →  5.4.2. Commercial calculations
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