COMMERCE TERMINAL EXAMINATION

 

FORM ONE 

COMMERCE TERMINAL EXAMINATION

Time: 2 Hours

Instructions:

• Answer all questions in Sections A and B

• Choose one question from Section C

• Write your answers clearly in the spaces provided

• Use examples where possible to support your answers

• Show all your working for calculation questions

---

SECTION A (15 MARKS)

Multiple Choice Questions (10 Marks)

Choose the best answer for each question and write its letter in the space provided.

1. What subject helps us understand how people create and trade products and services?
   A. The study of past events
   B. The study of places and environments
   C. The study of business activities
   D. The study of citizenship

2. How would you describe someone who purchases items for their own use?
   A. A person who offers items for sale
   B. Someone who creates products
   C. An individual who buys for personal needs
   D. A business that moves goods to stores

3. Which of these is something people must have to survive?
   A. An expensive vehicle
   B. Fashionable clothing
   C. Basic nourishment
   D. A mobile device

4. What do we call the creation of products and services?
   A. Using up resources
   B. Making goods available
   C. The manufacturing process
   D. Trading between people

5. Which activity represents commercial trade?
   A. Growing crops for family meals
   B. Constructing a home to live in
   C. Purchasing and reselling items
   D. Preparing food at home

6. When people use currency to obtain goods and services, this is called:
   A. Swapping items directly
   B. Small-scale selling
   C. Large-volume trading
   D. Modern economic exchange

7. Where would you typically go to purchase everyday items?
   A. An educational institution
   B. A shopping area
   C. A manufacturing plant
   D. An agricultural field

8. When a shop assistant helps a customer select merchandise, this is part of:
   A. Creating products
   B. The sales process
   C. Purchasing decisions
   D. Inventory management

9. What is the most common way people pay for goods today?
   A. Trading items directly
   B. Exchanging products
   C. Using currency
   D. Manufacturing goods

10. What is the main purpose of advertising?
    A. To manufacture products
    B. To move goods between locations
    C. To increase product awareness and sales
    D. To keep products in storage

---

Matching Items (5 Marks)

Match each commerce term with its correct description by writing the letter in the space provided.

Term	Description
1. Barter	C. Trading goods without using money
2. Retailer	B. Sells directly to final buyers
3. Wholesaler	E. Supplies shops with bulk goods
4. Advertising	D. Promotes products to customers
5. Entrepreneur	A. Creates and runs business ventures

---

SECTION B (70 MARKS)

Answer all questions in this section.

1. Importance of Commerce (10 marks)

Explain five ways that commercial activities benefit individuals and society.

2. Goods vs Services (10 marks)

Compare physical products and intangible services by discussing five key differences.

3. Human Wants (10 marks)

Describe five different types of desires that people seek to satisfy beyond basic needs.

4. Types of Trade (10 marks)

Outline five different methods through which goods and services are exchanged.

5. Retailer Responsibilities (10 marks)

Explain five important functions that shopkeepers perform in the distribution process.

6. Advertising Methods (10 marks)

Discuss five different techniques businesses use to promote their products to customers.

7. Entrepreneur Traits (10 marks)

Identify and explain five qualities that help business owners succeed in their ventures.

8. Business Location (10 marks)

Describe five important factors entrepreneurs should consider when choosing where to set up shop.

---

SECTION C (15 MARKS)

Answer one question from this section.

9. Commerce and National Development (15 marks)

Analyze how commercial activities contribute to a country's economic growth, using specific examples to illustrate your points.

OR

10. The Future of Commerce (15 marks)

Explore how technological advancements are changing business practices and predict how commerce might evolve in the coming years.