THE UNITED REPUBLIC OF TANZANIA. THE PRESIDENT'S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM THREE ANNUAL EXAMINATION

061 COMMERCE

TIME 3: 00 Hours November 2025

Instructions

1. This paper consists of three sections A, B and C with a total of eleven (11) questions
2. Answer all questions from section A, B and two (2) questions from section C.
3. Section A carries sixteen (16) marks, B carries fifty four (54) marks and section C carries thirty (30) marks.
4. Non- programmable calculators may be used in the examination room.
5. Write your examination number on every page of your answer sheet(s) or booklet(s)

SECTION A_. (16 MARKS)

Answer all questions in this section

1. From items (i) – (x) choose the most correct answer from the given alternatives and write its letter beside the item number in the answer sheet(s) /book(s) provided.

i. The general manager of ABC company issued a memo stating “one of the employees is urgently need at the C.E.O office” without mentioning the name and time. Which quality the memo lacks?

1. Correctness
2. Concreteness
3. Conciseness
4. Clearness
5. Completeness

ii. The document sent by the exporter’s bank giving assurance of the importer’s credit worthiness is called

1. Letter of hypothecation
2. Letter of credit 
3. Consular invoice 
4. Bill of exchange 
5. Bill of lading

iii. You approached a bank clerk in order to open an account and keep your money for 2 years without taking it. The possible account that the clerk would advice you to open is

1. Current account
2. Saving account
3. Fixed deposit account
4. Junior account
5. Fixed current account

iv. A total receipt from export wa TZS 2 billion by Tanzania, while the total payment for the import was TZS 6 billion. What does this mean in the health of participating in international trade by your country?

1. Favorable balance of payment
2. Unfavorable balance of payment
3. Favorable terms of trade
4. Unfavorable terms of trade
5. Banking balance of payment

v. Assume your father produces a car for the total cost of TZS 20,000/= before deciding to sell it, he added TZS 10,000/= as his profit, he will be selling it for TZS 30,000/=. Which pricing strategy was used by him

1. Demand based
2. Competitive
3. Price determined by treaties
4. Penetration
5. Cost plus

vi. You were employed as a warehouse keeper and review bookstore. Which stock calculation will help the fir to identify the fast- and slow-moving items?

1. A. Rate of stock turn rate
2. B. Mark up
3. C. Order point
4. D. Sales per turnover
5. E. Average stock

vii. “Omo removes dirty and strains, ordinary powder leaves behind”. Which form of advertising is best described by this example?

1. A. Informative 
2. B. Competitive 
3. C. Generic
4. D. Persuasive
5. E. Sponsorship

viii. When the price of orange in the market was TZS 200, the quantity demanded was 1000 orange per week. When the price fall in TZS 150, The quantity demanded rises by 500 orang per week. What will be the price elasticity of orange per week?

1. 2.0 elastic  
2. 0.2 elastic 
3. -0.2 inelastic
4. 0.2 inelastic
5. 2.0 inelastic

ix. Mwang’ombe is a supplier of gas in Tupambane village. He decided to insure his shop against fire to minimize possible future loss. Which among the following ways was adopted by him?

1. Risk avoidance 
2. Risk exploitation 
3. Risk sharing and transferring
4. Risk acceptance
5. risk escaping

x. Which of the following is the correct form of transport?

1. Water, land and air
2. Water, air and road
3. Water, land and railways
4. Sea, railways and pipeline
5. Sea and land

2. Match the description of the entrepreneur’s skills in column A with the corresponding skill in column Bby writing the letter of the correct response bise the item number in the answer sheet provided.

SECTION B (54 MARKS)

Answer all questions from this section

3. Bwana mdogo is a business man selling bar soaps in small lots. The following detail were extracted from his records and presented to you as follow.

• Markup 20%
• Rate of stock turnover 5 times
• Average stock at selling price Tshs 400000
• Expense 20% of net profit
• Minimum stock 100 bars
• Daily sales 50 bars
• Delivery times 2weeks

As a commercial student assist Bwana Mdogo to calculate the following;

1. Business sales revenue
2. Gross profit
3. Expenses
4. Net profit
5. Margin
6. Re-order level

4. Imagine you are in the highly populated market like Kariakoo where there are many buyers and sellers. Meanwhile you are interested to promote one of your customers. Describe the barriers that might affect your means of communication (5 points).

5. (a) Mrs. Alex has an account at NMB Bank with TZS 10 million. He issued a cheque in favorable of Wacha Maneno a creditor who demanded TZS 800,000/= ON 01/01/2019. Use the information given to analyses the three main parties to a cheque involved in this transaction.

(b) from (a) above Wacha Maneno did not get the money as the NMB bank refused to cash the cheque. Explain three possible reasons why this happened.

6. Business opportunities are created from many sources. On being studying human wants. As a commercial student, explain any other five (5) source.

7. The demand of goods and services in the market can only be affected by the price of a particular commodity. Which six points (6) criticize this statement.

8. In order to avoid environment pollution in 2019, Tanzania government restricts the importation and production of all kind of nylons paper bags. It is strictly prohibited for anyone to use these sorts of bags. How can you explain six (₆₎ methods used by the government to restrict importation of all kinds of nylons paper bags?

SECTION C (30 Marks)

Answer two questions from this section

9. Tanga cement uses wholesalers to distribute its products all over the country. For some reasons, the wholesalers have decided to step down. Explain how the industry is negatively affected by such a decision. Give out six (6) points.

10. Although the transportation sector in Tanzania is growing fast, it has some number of challenges to be successful. Describe six (6) of them.

11. In 2021 a country named B faced excess supply of money in the economy which later led to economic problem including inflation. Use your knowledge on banking to advice country B on the tools that central bank should employ to control excessive supply of money (6 points).

THE PRESIDENT’S OFFICE MINISTRY OF EDUCATION, REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

COMPETENCY BASED SECONDARY EXAMINATION SERIES

                                                             COMMERCE   FORM THREE

TIME: 3 HOURS                                                                                 NOVEMBER 2022

INSTRUCTIONS

1. This paper consists of section A, B and C with total of  ten (10) questions
2. Answer all questions in section A and B and only two questions from section C
3. Section carries twenty (20) marks, section B carries fifty (50) marks and section C carries thirty (30) marks 
4. Programmable calculators, cellular phone and any unauthorized materials are not allowed in the examination room
5. Write your NAME on every page of your answer sheet(s)

Section A (20 Marks)

Answer all questions in this section

1. Careful read the following questions, then choose the correct answer from the alternative given and write its letter on the space provided.

1. John and Johnson has been partners for several years, but John has been dealing with all business affairs alone, how can you group Johnson in such partnership business                                                                                                            

1. As sleeping partner
2. As an active partner
3. As Quasi partner  
4. As general partner
5. As Unlimited partner

2. The reduction of prices which results from large purchases is known as;          

1. Price support
2. Re-sale price maintenance
3. Trade discount 
4. Cash discount
5. Discount allowed 

3.                     Mamalishe has been selling fresh juice by using water bottle in her restaurant, so the process of placing fresh juice in water bottle is called? 

1. Brading
2. Packing
3. Packaging
4. Putting
5. Grading   

4.                      Mr. Pweza prefers buying carbonated soft drinks (Mango) from Azam Co.ltd, after the rise in prices for Mango Juice, he decided to shift and consume fresh juices from Mamalishe. The demand for two commodities is classified as:  

1. Joint demand
2. Complementary demand
3. Independent demand 
4. Competitive demand
5. Derived demand

5. When drawing supply curve, automatically supply curve slope upward from left to right. Why does this supply curve slope upward from left to right? 

1. The lower the price, the higher the quantity demanded and vice versa
2. When the price is held constant, the quantity supplied increases
3. When the factors other than price held constant, Quantity supplied increases
4. The higher the price, the higher the quantity of commoditied supplied and vice versa
5. The lower the price, the higher the supplied

6.                      Given that, a daily sale is 20kg of NIDO milk, delivery time 5 days, Minimum stock 100kg, and Maximum stock 70kg. What will be the order point?  

1. 200kg B. 100kg  C. 150kg  D. 180kg  E. 120kg  E. 70kg

7.                   A kind of home trade which deals with buying of goods in large quantity from the wholesaler and selling them to the final consumers is called? 

1. Home trade
2. Wholesale trade
3. Retail trade
4. Foreign trade
5. Import trade

8.                 Mr. Mwasambabha as household has prepared a fresh fruit juice for his child Consumption. In which kind of production activities done by Mwasambabha be grouped? 

1. Primary Production
2. Tertiary production
3. Direct production 
4. Indirect Production
5. Personal services

9.                      Which of the following qualities of a good money signifies that, good money should have a long life span 

1. Portability
2. Malleability
3. Durability 
4. Divisibility
5. Difficult to make a fake copy

10. Mr. Matata own a supermarket at Singida Bus terminal. Which one of the following stock computation will help him to identify fast and slow moving items in the business 

1. Average stock
2. Stock turn rate
3. Minimum stock 
4. Stock order point
5. Stock levels 

11.                      Self service is a common features of a .............

1. Chain store
2. Single shop
3. Supermarket 
4. Tied shop
5. Multiple shop

12.                   Continuing rise in general level of prices and consequent fall in purchasing power of money is called?    

1. Deflation
2. Inflation
3. Disinflation 
4. Equilibrium price
5. Rein - Inflation

13.                 Are warehouses which are owned by the government and individual and its free to any one wishing to hire them for a certain charge; 

1. Bonded warehouse
2. Private warehouse
3. Public warehouse
4. Wholesaler warehouse
5. Retailer warehouse

14.                 Mr Kimbo wishes to start his drinking water industry at Kigoma, then how can he differentiate his product from other company’s products like Uhai, Afya ect.

1. Through packaging
2. Through branding
3. Through price
4. Through packing
5. Through standardizing  

15.                    Which method would Tanzania adopt if she wants to complete restrict importation of sugar from Malawi 

1. Imposing heavy import duty
2. Total ban
3. Fixing Import quota 
4. Using government agencies
5. Using VAT

2.      For each of item (i-v) match the description of item in list A with their corresponding names in list B by writing the letter of the correct response on the space provided

SECTION B (50 Marks)

Answer all questions in this section

3.      Differentiate between the following terms

a)      Packing and packaging 

b)      Composite demand and competitive demand

c)      Commerce and economics

d)      Air transport and land transport

e)      Specialization and division of labour

4.      a) (a) Mr. Kiombo has been producing Beans for years and selling them at his private warehouse, but he has been running his business at loss, what do you think could be the reasons for running his business at loss? Identify any five reasons

(b)   Mr. Kiombo who has been producing Beans for years and selling them within a local market, but now he wishes to sell them to Kenya, he has been thinking either to use road transport or air transport.

Required: Since you have business knowledge briefly explain to him any five factors to be taken into consideration before choosing any model of transport system

5.      Careful study the following demand and supply schedule for Cooking oil in Tanzania and then answer the questions below

a)      Draw a demand and supply curve in the same pair of axes

b)      Indicate the equilibrium point, equilibrium quantity and equilibrium price

c)      Calculate price elasticity of demand when cooking oil price changed from Tshs.

2,000 to 5,000

d)      Give Comment on the results you obtained in question (c) above

e)      Name any five factors affecting demand of Cooking Oil in Tanzania

6.      a) Miss Janeth has been employee as an Accountant at Singida Regional Hospital for 10 years, this year she has decided to quit the job and become an entrepreneur. Highlight any six reasons why Janeth decided to be entrepreneur.

(b)   Since Miss Janeth has decided to be an entrepreneur, provide your profesion advice by naming any four factors that should be taken into consideration when locating her business. 

7.      a) Define cheque and identify any three circumstances under which a cheque may be dishonoured

(b)   Mr. Keko a Sole trader, who own a departmental store at Dodoma City wishes to apply for a loan from NMB Bank for his business expansion, but he is not aware of any factors that are taken into consideration by Bank before giving loans to their customers. As business expert help Mr. Keko by briefly explaining to him any five factors that Banks take into consideration before granting loan to their customers

Section C (30 Marks)

Answer only two questions from this section

8.      (a) Differentiate departmental store and supermarket

(b)   Small scale retailers like road side traders, machingas, auctioneers and market stall holders has been increasing in our country, but they are facing many challenges. Explain any five challenges facing small scale retailers in Tanzania.

9.      In our country most of the products are imported from other countries such as China, Japan, India etc, but to much importation may have negative impact in our country. So what do you think should be done in order to reduce to much importation of products from abroad(Discus any five factors)   

10.  (a) Define and identify any five difficulties associated with barter trade system

(b)   We normally use money in our daily live, as student explain how do you use money. (Explain any six uses)