Test for Topics Commerce Form 1



1. Choose the most correct answer.
(i)              Which of the following is not a nature of commerce?
  1. Production
  2. Economic activities.
  3. Exchange of goods and services
  4. Creation of utility.
 (ii) Which of the following is an indirect service?
  1. Cobbles and Client
  2. Doctor and patient
  3. Advocate and client
  4. Public rallies
 (iii) Which is not a characteristic of good.
  1.        Variability
  2.         Quality
  3.         Possession
  4.        Storage.
 (iv) Service have simultaneity property, this means?
  1.        Can be used for two purposes.
  2.         It is one time generated, rendered and consumed.
  3.         Service provider is indispensable from service delivered.
  4.        One requested the service should be generated without delay.
 (v) Ability of economic resource to satisfy human need is called?
  1.        Variability
  2.         Inseparability
  3.         Utility.
  4.        Transferability.
 (vi) A foregone satisfaction as a result of making a choice is called?.
  1. Scarcity.
  2. Utility
  3. Opportunity cost
  4. Choice.
(vii) Occur when product is manufactured to a final and usable product.
  1. Possession Utility
  2. Time Utility
  3. Place Utility.
  4. Form Utility.
(viii) The two features of commodities includes,
  1.     Utility and tangibility
  2.     Utility and exchange value.
  3.     Exchange value and Transferability.
  4.     Utility and possession.
(ix) Activities that facilitate trade are called?
  1. Utility
  2. Trade supporter
  3. Elements of trade
  4. Aids of trade.
(x) Which of the following is not a drawback of barter trade?
  1. Double coincidence
  2. Lack of measure of value.
  3. Indivisibility of commodity.
  4. Lack of store of value.
2. Match the items from list A with those in list B.
(i)           Tangible products.
(ii)        Direct contact between service provider and customer.
(iii)      Each service is unique.
(iv)       Using goods or services by the final consumer.
(v)         Resources provided freely by nature.
(vi)       Foregoing satisfaction as a result of making choice between two equally competing goods or services.
(vii)    Ability of good or service to satisfy human wants
(viii)  Product is manufactured to a final and usable product.
(ix)       Buying of goods and services within a country.
(x)         Elements of commerce.
  1. Satisfaction
  2. Form utility
  3. Perishability
  4. Time utility
  5. Human resources
  6. Foreign trade
  7. Possession
  8. Opportunity cost
  9. Home trade
  10. Simultaneity
  11. Retail trade
  12. Consumption
  13. Exchange value
  14. Variability.
  15. Natural resources.
  16. Utility and exchange value
  17. Good.
  18. Trade and Aids to trade
  19. Home trade and foreign trade
  20. Service
  21. Place utility
  22. Direct service.
3. (a) Differentiate between a good and a service.
    (b) Describe six characteristics of a service.
4. (a) Explain the meaning of the following.
(i)     Consumer
(ii)  Producer
(iii) Consumption
(iv) Scale of preference
(v)   Satisfaction
   (b) Mention five characteristics of economic resources.
5. Write short notes on the following terms.
a)      Scarcity
b)     Choice
c)      Opportunity cost
d)     Form utility
e)      Time utility
6. (a) Describe the Aids to trade.
    (b) Outline importance of Commerce in our daily life.

                          MULTIPLE CHOICE QUESTIONS.
1. Choose the most correct answer.
(i)              Which of the following does not create utility in production?
  1.        Man and construction
  2.         Rendering of services.
  3.         Transportation
  4.        Buying and selling.
 (ii) Which is not characteristic of direct production.
  1.           The is specialization and division of labour
  2.            Tool of production
  3.            Production is in small scale
  4.           Trade is not encouraged.
 (iii) One characteristic of indirect of production is that
  1.           Production is on small scale
  2.            No specialization and division of labour
  3.            Simple tools are used
  4.           Production is for exchange.
 (iv) Goods in which we cannot prevent people from using them are called?
  1.           Material goods
  2.            Non – excludable goods.
  3.            Non – rival good.
  4.           Durable goods.
 (v) When prices of these goods increase, people tend to buy more.
  1. Gifted goods
  2. Merit goods
  3. Snob goods
  4. Complimentary goods.
 (vi) Which is not a factor of production?
  1. Land
  2. Commerce
  3. Entrepreneurship
  4. Capital
(vii) Which is not a characteristic of land as a factor of production?.
  1.        Gradability
  2.         Leasable
  3.         Has derived demand
  4.        Free gift from nature.
(viii) Policemen and clerical officers are example of
  1.        Salaried labour
  2.         Skilled labour.
  3.         Semi – skilled labour.
  4.        Unskilled labour.
(ix) Which is not a reward of labour?
  1. Fees
  2. Wages
  3. Loyalties
  4. Rent.
(x) Which one is not a characteristic of a want?
  1. Insatiability
  2. Diminishing satisfaction
  3. Interdependency.
  4. Competitive.
2. Match the items from list A with those in list B.
(i)           The more we consume the less we want the same
(ii)        Want cannot be satisfied at once.
(iii)      Services of wholesalers and retailers.
(iv)       All human made resources used to create further goods and services.
(v)         Annual payment made to local government by landlords for land ownership
(vi)       Fertility of land vanes from one region to another
(vii)    Goods which when their process increase can an increase in demand of another.
(viii)  Goods people may underestimate their benefit.
(ix)       Goods provided free by nature.
(x)         Scarce and not easy to obtain.
  1. Recurrent
  2. Gifted goods
  3. Labour
  4. Natural goods
  5. Direct services
  6. Commercial services
  7. Veblen goods
  8. Public goods
  9. Habitual
  10. Economic goods
  11. Perishable goods
  12. Consumption
  13. Diminishing satisfaction
  15. Rent
  16. Rates
  17. Produce goods.
  19. Free goods
  20. Ment goods.
3. (a) Define production
    (b) Differentiate direct and indirect production
    (c) Outline characteristic of direct production.
4. (a) Write short notes on the following
a)      Free goods
b)     Perishable goods
c)      Durable goods
d)     Consumer goods
e)      Producer goods
    (b) Write 5 (five) features of land as a factor of production
5. (a) Mention three types of labour
    (b) Write down 8 (eight) characteristic of labour as factor of production
6. (a) Who is an entrepreneur?
    (b) Mention qualities of an entrepreneur.
7. (a) What is specialization and division of labour
    (b) Write four advantages and five disadvantages of specialization and division of labour.
8. Discuss factors one has to consider when construction an industry.


1. Which statement is not true about small business
  1. It has little risk
  2. Creates wealth faster
  3. Highly innovative
  4. It needs less capital
2. Which is not nature and behavior of an entrepreneur?
  1. Communication skills
  2. Hard work
  3. Visionary
  4. Innovative
3. What is a fundamental nature of economic growth?
  1. Gap filling
  2. Status withdrawal
  3. Creative innovation
  4. High achievement
4. The word illumination means;
  1. Checking if idea is viable
  2. Testing an idea
  3. Checking reality of an idea
  4. Carrying out verification
5. Ability to interact with customers and clients can be termed as;
  1. Communication skills
  2. Managerial skills
  3. Interpersonal skills
  4. Social  skills
6. Which of the following is not a contribution of entrepreneurs to society?
  1. Scholarship provision to the poor
  2. Running charitable institutions
  3. Donations
  4. Advice to the government
7.  Which of the following is not a function of an entrepreneur?
  1. Taking risks
  2. Innovation
  3. Carrying out research
  4. Helping the government
8. Which of the following is not a reason as to why people become self employed?
  1. To increase wealth faster
  2. To be independent
  3. To be their own boss
  4. To have freedom
9. One risk of being self employed is;
  1. Freedom
  2. Conflict
  3. Inability to make decision
  4. Instability
10. The emergency of entrepreneurs in Tanzania has greatly been influenced by;
  1. Role models
  2. Unemployment
  3. Provision of education
  4. Existence of opportunities.
11. As a student who has just left school, mention any ten business opportunities you can start.
12.  Explain with reasons why people decide to start their own business
13. Give reasons why not many people want to be self employed
14. What benefits do people who are self employed have?
15. What contributions have entrepreneurs brought in the society?
16.  Explain the functions of entrepreneurial activities
17. Explain the entrepreneurial process.


1. Choose the most correct answer.
(i)              Which of the following is not a function of a retail trade?
  1.     Sales goods in wholesale to consumers
  2.     Limits producer and consumer.
  3.     Provide investment opportunity for entrepreneurs.
  4.     Provide peace among people.
 (ii) Which among the following is not function of a retailer?
  1.           Transportation of goods
  2.            Adding value to goods
  3.            Offering credit facilities
  4.           Stocking various goods
 (iii) Which among the following services is not provided to a manufacture by a retailer?
  1.              Financial services
  2.               Market research
  3.               Communication
  4.              Marketing of goods
 (iv) Breaking Bulk means
  1.           Repackaging.
  2.            Selling in small quantities.
  3.            Buy in large quantity and sell them in small quantity.
  4.           Branding goods.
 (v) Which is not a quality of a retailer?
  1.           Honest
  2.            Good seller
  3.            Good buyer.
  4.           Good time keeper.
 (vi) A trader who carries goods for sale from door to door is called?
  1. Hawker
  2. Peddlers
  3. Itinerant trader
  4. Road side traders.
(vii) They move with good along busy streets.
  1.           Peddlers
  2.            Hawker
  3.            Machinga
  4.           Mobile shops
(viii) Found mostly in rural areas and run by family members.
  1.        Tied shops
  2.         Single shops.
  3.         Market traders
  4.        Mobile shops.
(ix) Number of shops under one roof and one management is called?
  1.        Departmental store
  2.         Chain store
  3.         Hyper market
  4.        Mall
(x) One disadvantage of mail order business is that:
  1.        No need to employ shop attendant
  2.         Price changed are high due to cost of operation
  3.         Customers cannot make choice without influence
  4.        Most do not allow credit facilities.
2. Match the items from list A with those in list B.
(i)                       A technique whereby customers serve themselves.
(ii)                     Buying and selling is done through post office.
(iii)                   Self – service markets which occupy large area than super - market.
(iv)                   Shops specializing in selling the same line of goods and services.
(v)                     A store that consists of a number of shops which are under one roof and one management.
(vi)                   Shop selling goods from some manufactures only.
(vii)                 Special degmated areas where people sale their goods.
(viii)              They move from one place to another selling large number of goods.
(ix)                   One quantity of a retailer.
(x)                     An individual who carries out activities of retail trade.
  1. Retail trade
  2. Retailer
  3. Road side traders
  4. Hawker
  5. Market traders
  6. Hard working
  7. Chain stores
  8. Honest
  9. Peddlers
  10. Hypermarket
  11. Super market
  12. Departmental stores
  13. Itinerant traders
  14. Tied shop
  15. Shopping mails
  16. Mobile shop
3. (a) Define:
(i)     Retailer
(ii)  Retail trade.
    (b) Identify six functions of retailers.
4. (a) Who is an Itinerant trader?
    (b) Discuss six characteristics of small scale retailers.
5. (a) What is mail order business?
    (b) Mention four advantages and four disadvantage of mail order business.
6. Mention five services rendered by retailers to the following;
(i)     Manufacturers
(ii)  Wholesalers
(iii) Customers.
7. (a) Describe using examples how retail trade has developed in modern times.
    (b) Outline four features of mail order business. 


                     MULTIPLE CHOICE QUESTIONS.
1. Choose the most correct answer.
(i)              Buying goods in large quantities and selling them in smaller quantities to other trader is called?
  1.        Retailing
  2.         Whole selling.
  3.         Whole saler trade.
  4.        Wholesaler.
 (ii) Which of the following is not a service rendered by whole saler to customers?
  1.        Breaking Bulk
  2.         Advertising
  3.         Storage
  4.        Providing a variety of goods
 (iii) Wholesalers who operate in a specific geographical area are called?
  1.        Rack Jobbers
  2.         General line wholesalers
  3.         Regional wholesalers
  4.        General merchandise whole saler.
 (iv) A rack jobber is a wholesaler who?
  1.        Operate throughout country
  2.         Stock only specialized type of goods within a given line of product.
  3.         Specialize in marketing a specific type of a product.
  4.        Stock a variety of goods but within a specific line of product.
 (v) Which is not a function of wholesaler?
  1.        Marketing goods
  2.         Preparation for sale
  3.         Storage of goods.
  4.        Advice consumers
 (vi) Wholesalers offer the following services to manufactures except;
  1.        Advices manufacturers
  2.         Offer transport services
  3.         Relief manufacture Burden of storage
  4.        Carry out market research.
(vii) Wholesalers who deal with a wide variety of goods.
  1.           National wide wholesalers
  2.            Specializes whole salers
  3.            General merchandise wholesalers
  4.           Regional wholesalers.
(viii) A path through which product follow from producer to the final consumer
  1.        Channel of distribution
  2.         Intermediaries.
  3.         Chain of Distribution
  4.        Distribution
(ix) Length of a channel is determined by the following except?
  1.        Producer marketing skills
  2.         Producer communication skills
  3.         Nature of product
  4.        Quantity of middlemen.
(x) Stock varieties of goods, enable retailers to visit their premises, pick goods pay for them and transport the goods.
  1. Rack Jobbers
  2. Cash and carry wholesalers
  3. Regional wholesalers.
  4. Distribution.
2. Match the items from list A with those in list B.
(i)              Buying goods in large quantities for purpose reselling them in relatively small quantities.
(ii)            Making consumers aware of existence of goods in markets.
(iii)         Market of particular type of product.
(iv)          Deal with a wide variety of goods.
(v)            Specialized in a given line of product.
(vi)          Retailers visit and pick goods they want and pay.
(vii)       Movement of goods from point of production to point of sale.
(viii)     Path through which product follow from producer to consumer.
(ix)          Retailers, wholesalers and agents.
(x)            An individual who buys goods in bulk from manufactures and sell them in small quantities to retailers.
  1. Advertising
  2. Wholesale trade
  3. Wholesaler
  4. Distribution
  5. Chain of distribution
  6. Intermedians
  7. Middlemen
  8. Wholesaler
  9. Wholesaling
  10. General line wholesaler
  11. Cash and carry wholesaler
  12. Retailing
  13. General merchandise
  14. Specialized wholesaler
  15. Rack Jobber
  16. Regional wholesaler
3. (a) Give two differences between a retailer and wholesaler.
    (b) Describe six functions of a wholesaler.
4. Explain ten services rendered by wholesaler to producers and manufactures.
5. (a) What is a distribution chain?
    (b) Elaborate any six distribution chain available to a wholesaler.
6. (a) Give two reasons why it is necessary to eliminate a wholesaler?
    (b) Elaborate three circumstances in which wholesalers can be eliminated.
    (c) Describe five factors that determine the length of a distribution channel.
7. Explain five types of wholesalers.