Zg> BOTSWANA EXAMINATIONS COUNCIL = Botswana General Certificate of Secondary Education COMMERCE 0598/01 Paper1 Multiple Choice October/November 2017 ‘1 hour Additional materials: Multiple Choice Answer Sheet Soft Clean Eraser Soft Pencil (type B or HB) READ THESE INSTRUCTIONS FIRST Do not open this booklet until you are told to do so. Read the instructions on the separate answer sheet very carefully. Write your name, Centre number and candidate number in the spaces provided on the Answer ‘Sheet unless this has already been done for you. ‘Sign your name in the space provided on the Answer Sheet. There are forty questions on this paper. Answer all questions, For each question, there are four possible answers A, B, G and D. Choose the one you consider correct and record your choice using a soft pencil on the separate answer sheet. Each correct answer will score one mark. A mark will not be deducted for a wrong answer. Any rough working should be done in this booklet, Do not use staples, paper clips, highlighters, glue or correction fluid. Calculators may be used. This document consists of 10 printed pages and 2 blank pages. © BEC 2017 [Turn over2 1 Which of the following is an example of a human need? accommodatic nm communication education vom> entertainment 2 Which statement is an advantage of specialisation? A It increases boredom B It increases cost of training, C _Itincreases output D__itincreases unemployment 3 Whats the role of a finance house in hire purchase? A acceptance and confirming of letters of credit B insures the goods on behalf of customers C provides storage facilities for the product D provides the finance to buy the product 4 Which credit trading allows the buyer to assume ownership upon payment of deposit? budget account deferred payment hire purchase monthly account vom> 5 Lesika bought some fruit in a shop. The shop did not look clean and some fruits on the shelves were rotten. Which of Lesika’s rights as a consumer has been violated? A tight to choose B right to consumer education right to healthy environment D right to redress 6 What is the function of an order in a commercial transaction? A _Itallows buyers to return goods wrongly supplied. B It instructs the supplier to supply particular goods. C tis a polite request for payment. D__ tis a response to a letter of inquiry. BEC 2017 osea/ot/omn01710 Use Fig. 1 to answer questions 7 and 8. Baisago Secondary School ‘Stock Record Card | Stock: ‘Ad Line Paper Stock levels Supplier: Botswana Book Centre Maximum: 100 reams Shelve No: 5B Minimum: 20 reams Date Received | From | Issued To (reams) Quantit quantity Balance 1 February 2017 | __100 BBC 10 _ | Science Dept 90 3 February 2017 : : 15 __| English Dept 75 5 February 2017 : - X | Setswana Dept 55 6 February 2017 Y BBC - - 85 Fig.4 Calculate X, the quantity issued to Setswana Dept on 5 February 2017. A B c D 15 20 25 90 Z Calculate Y, the quantity received from BBC on 6 February 2017. A ooo 25 30 60 75 What is the function of the Customs and Excise Department of Botswana? A B c D collecting revenue devaluing the local currency giving loans to exporters safeguarding the public's health What is a feature of an unincorporated business? A B c D controlled by board of directors has a separate legal entity owners have unlimited liability registered with registrar of companies 0598/01/0/N/2017 [Turn overBe " 12 13 14 15 4 Which factor causes stock market turbulence in a country such as Botswana? change of goverment policy unfavorable to investments sudden death of a president of a major trading partner A B industrial dispute in one small company c D takeover of a private limited company by another Which middleman in foreign trade guarantees payment for goods sold on credit? broker del credere agent factor com> forwarding agent Botswana Trading Company Ltd (BTC) has decided to raise funds for expansion through the sale of shares. Which document would be used by BTC Ltd to invite the public to buy shares? A Atticles of association B_ Certificate of incorporation © Memorandum of association D Prospectus ‘Which term describes a government takeover of a private company? A commercialisation B liquidation nationalisation D privatisation Which method of research allows the researcher to collect data without seeking consumers’ opinions? A experiment B interview © observation D questionnaire © BEC 2017 ossaovoneo1716 Fig. 2 shows part of a Balance Sheet. 7 18 19 P P Stock 800 Debtors 1200 Cash 2700 4700 Creditors 800 Overdraft 1000 1800 Working capital x Fig. 2 Calculate the working capital indicated by X A ooo P1800 P2900 P4700 P6500 Which approach could be used by a business to improve its working capital? com> frequent drawings over capitalisation overtrading sales promotion ‘Which of the following is an item in the profit and loss account of a business? A B c D purchase of equipment purchase of furniture purchase of stationery purchase of stock David and May are in partnership. They need extra funding for expansion. Which source of finance will be appropriate? A B ic D bank loan debentures subsidy trade credit os9a/v1onv2017 [Turn over6 20 Tebogo has listed his company on the stock market. He wants to raise funds to buy additional fixed assets but does not want to make repayments. Which source of finance will be appropriate? A. debentures B factoring mortgage D_ ordinary shares 21. The reason for the establishment of the National Development Bank (NDB) in Botswana is to ‘A accept deposits from the general public. B engage in international transactions. © offer financial services to foreign companies. D_ provide financial assistance to its members. 22. Which principle of insurance requires a customer to have ownership of property before insuring whi i? A indemnity B insurable interest © proximate cause D utmost good faith 23 Which statement makes an insurance contract invalid? lient defaults in paying premiums Glient displays utmost good faith client over-insures property alient submits relevant documents voo> 24 What is a disadvantage of advertising? A__Itincreases market share of the business. B It persuades consumers to buy things they did not intend to buy. C__Itraises turnover thus providing more profit for the business. D__Itreminds consumers that a brand is still available. 25 Neo has taken out a motor vehicle insurance policy. Which method of paying monthly premiums would the insurance company be most likely to recommend to Neo? A cash B cheque & C credit transfer D direct debit BEC 2017 oss01v01Ns20177 28 How has containerisation helped the transportation of goods from one country to another? A Ithas allowed more workers to be employed. B thas increased the risk of theft. © __Ithas reduced transshipment of goods. D thas saved on warehousing space. 27 Which method of payment assures the exporter of payment of goods? A bank transfer B bill of exchange C letter of credit D postal order 28 Which insurance document is issued as a proof of insurance, pending the preparation of an insurance policy? A claim form B cover note © proposal form D prospectus 29 Which statement is an advantage of warehousing? A __ Itenables producers to make customers aware of their products. B___Itenables producers to produce ahead of demand. © _Itprovides compensation for traders’ losses. D__ It provides financial security for traders. 30 For what purpose might a wholesaler use a warehouse? A attracting customers manufacturing goods repackaging goods storing goods until duty is paid B c D 31 Which type of advertising keeps the consumer thinking about the product? A B c D generic informative reminder persuasive 0598/01/0/N/2017 [Turn over8 32. Which of the following is an example of informative advertising? ‘A notices giving details of examination timetables B pictures of food to advertise supermarkets C__ posters appealing to emotions D world wide web message about a special offer 33. Tswana Bank wishes to send credit card pin numbers to its clients using the most secure method. Which postal service is most appropriate for the bank to use? A business reply service B expedited mail service © ordinary mail D registered mail service 34. The picture shows a tramp ship ‘What is most likely to be transported by this method? A fresh flowers B industrial machinery C mineral ore D refrigerated food 38 Which financial institution in Botswana operates through the postal system to provide services dlients? A Botswana Building Society B__ Botswana Development Cooperation © Botswana Savings Bank D The National Development Bank BEC 2017 oseao/onz01738 Which method of communication would a company's head office use to urgently collect sales information from its branches? com>, 37 Which transport system is most a} e-mail fax post telephone Botswana? A ppropriate for transporting petroleum products from Angola to 38 Which document is used when goods are transported by sea? A B ic D bill of fading certificate of insurance certificate of origin delivery note 39 Mareledi General Dealer is located in a shopping complex where there are large scale retailers. Itis experiencing a decline in sales, How can Mareledi General Dealer survive in a shopping complex? A B c D © BEC 2017 offer expensive goods provide personalised service request for larger shop space sell a limited range of goods osoeovomz017 [Turn over40 40 Which pressure group in Botswana has similar activities to Green Peace?” A Ditshwanelo B Kalahari Conservation Society C Lifeline D_— Somarelang Tikologo i ©BEC 2017 oseeo1/onNv2017