THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL OF TANZANIA

FORM TWO NATIONAL ASSESSMENT

061 COMMERCE

Time: 2:30 Hour Year: 2025

Instructions

1. This paper consists of sections A, B and C with a total of ten (10) questions.
2. Answer all questions in spaces provided.
3. Section A and C carry fifteen (15) marks each and section B carries seventy (70) marks.
4. All writing must be in blue or black ink, except diagrams which must be in pencil.
5. Communication devices and any unauthorised materials are not allowed in the examination room.
6. Write your Assessment Number at the top right corner of every page.

FOR ASSESSOR’S USE ONLY
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CHECKER’S INITIALS

SECTION A (15 Marks)

Answer all questions in this section.

1. For each of the items (i) – (x) choose the correct answer from the given alternative and write its letter in the box provided

(i) Which one represents the various levels of stock in warehouse?

1. Minimum average maximum and order point
2. Average maximum receiving and stock taking
3. Maximum order point average and opening stock
4. Average minimum closing stock and order point

(ii) At the end of her teaching contract in Dubai Madam Maua decided to transport her properties from Dubai to Zanzibar Which one of the documents must be used as a contract of transport between the ship owner and Madam Maua?

1. Freight note
2. Charter party
3. Charter bill
4. Dock warrant

(iii) Kikunje Secondary School employed three computer teachers during holiday time in which stage of production does the services provided by those teachers be categorised?

1. Primary production
2. Secondary production
3. Direct production
4. Tertiary production

(iv) There is a high demand for cotton in the market due to excessive customer's demand for clothes Which type of demand explains this situation?

1. Competitive demand
2. Joint demand
3. Derived demand
4. Composite demand

(v) Why is it important for employers to motivate employees in an organisation?

1. To enable employees to work dependently
2. To encourage absenteeism among the employees
3. To increase efficiency of the employees
4. To enable employer to increase supervision to employee

(vi) Zarat is one of Mama Mkulima agent who sells onions in her possession and under her control on behalf of Mama Mkulima In which category of agent do Zarat be placed? 

1. Auctioneers
2. Factors
3. Broker
4. Del credere

(vii) Which one presents the main branches of commerce?

1. Home trade and foreign trade
2. Import trade and export trade
3. Trade and aids to trade
4. Retail trade and wholesale trade

(viii) Mr. Masika wants to buy the products from department stores Which feature would help him to identify department stores from other shops? 

1. They sell products of a single manufacturer only
2. They use large vans to arrange and display goods for sale
3. They sell different products under one roof and one management
4. They sell products to customers in public places only

(ix) John is a transportation agent who is involved in the transportation of fresh fishes from Mwanza to all regions in Tanzania In which type of utility do John's activities be placed?

1. Marginal utility
2. Place utility
3. Possession utility
4. Form utility

(x) The following are the importance of entrepreneurship except

1. creating employment
2. promotes innovations and development of products
3. promotes the use of obsolete technology in production
4. fosters economic development

2. Match the descriptions of concepts of demand in List A with the relevant concept in List B by writing the letter of the correct response beside the corresponding item number in the table provided

SECTION B (70 Marks)

Answer all questions in this section.

3. Briefly explain the following terminologies in relation to commerce

1. Capital goods
2. Consumer goods
3. Variable cost
4. Fixed cost
5. Extractive industries

4. Being a good buyer is among the qualities a good retailer to succeed in retail trade In five points briefly explain other qualities that a good retailer should possess.

5. Briefly explain the following concepts

1. Retail trade
2. Wholesale trade
3. Import trade
4. Export trade
5. Barter trade

6. Bill of lading is an important document in water transport. Justify by giving five points.

7. Ms Mkomazi is an entrepreneur who own a poultry farm in Mbeya region. Briefly suggest five roles that she should perform as entrepreneur.

8. The following table shows the information obtained from Mbuyuni market showing quantity of maize demanded by consumers and quantity of maize supplied by producers at different prices for the month of January 2025.

Required:

Using the particulars given on the table to:

1. Draw the demand and supply curve on the same pair of axis
2. Interpret the nature of the two demand and supply curve in (a)

1. Demand curve
2. Supply curve

3. From the demand and supply curves in (a) determine 

1. Equilibrium quantity
2. Equilibrium price

9. (a) Briefly explain two advantages of warehousing to the customers

(b) The following information have been extracted from Masanzu's business records for the financial year ending 31^st December 2024. 

• Sales during the period was Tsh. 7,200,000/= 
• Stock at 01/01/2024 was Tsh. 1,250,000/=
• Stock at 31/12/2024 was Tsh 1,650,000/= 
• Cost of goods sold valued at Tsh. 3,500,000/= 

Use the information provided and assist Masanzu in the computation of the following stock administration calculations. Show all the workings. 

1. Gross profit
2. Average stock
3. Stock turn rate

SECTION C (15 Marks)

Answer question ten(10)

10. “Risks in self employment are unavoidable.” By using five points justify the validity of this statement.