Natural Stars group of

colleges
Form 1 End of term 2
Commerce Paper 1

Total Questions: 40

Total Marks: 40 (1 mark per question)

Time Allowed: 60 minutes

Instructions to Students:
1. Read Carefully: Answer all questions by choosing the best option (A, B, C, or D).

2. Answering: Circle the correct answer on the question paper or shade the
correct box on the answer sheet (if provided).

3. Time Management: Spend no more than 1.5 minutes per question to complete
the test on time.

4. Review Your Work: If time remains, go back and check your answers.

5. Academic Honesty: Do not use external resources or work with others.

1. What is the primary goal of production?

A. To create ability B. To generate employment

C. To earn profit D. To relieve carry

2. Which of the following is a factor of production?

A. Land B. Labour C. Capital D. All of the above

3. What is the difference between primary and secondary production?

A. Primary production involves manufacturing while secondary production

involves extracting.

B. Primary production involves extracting while secondary production involves

manufacturing.

C. Primary production involves serving while secondary production involves

goods.

D. Primary production involves goods while secondary production involves

services.

4. What is division of labour?

A. When workers specialize in different tasks

B. When workers perform multiple tasks

C. When workers work in different industries

D. When workers work in different countries

5. What are the benefits of division of labor?

A. Increased productivity and efficiency

B. Reduced productivity and efficiency

C. Increased costs and reduced quality

D. Reduced costs and improved quality

6. What is Mass Production?

A. Production of large quantities of goods using standardized methods.

B. Production of small quantities of goods using customized methods.

C. Production of goods using manual labor

D. Production of goods using automated machinery

7. What is trade?

A. The exchange of goods and services between countries.

B. The exchange of goods and services within a country.

C. The production of goods and services.

D. The consumption of goods and services.

8. What is consumer protection?

A. Laws and regulations that protect consumers from unfair business practices.

B. Laws and regulations that protect business from consumers

C. Laws and regulations that promote competition .

D. law and regulations that reduce price.

9. Why is consumer protection important?

A. To ensure that consumers are treated fairly

B. To ensure business owners are treated fairly

C . To promote competition

D. To increase production
10.What is the role of the Consumer Council of In Zimbabwe?

A.To protect businesses from cc consumers.

B.To protect consumers from unfair business practices.

C.To promote competition.

D.To reduce prices.

11.What is a consumer right?

A.The right to fair treatment . B. The right to high price.

C.The right to poor quality, good will. D. What is limited choice?

12. What is an enterprise?

A. A business organization that promotes goods or savings?

B. A non-profit organization that provides charitable services.

C. A government agency that regulates businesses.

D. A financial institution that provides loans.

13.What is an entrepreneurship?

A. The process of starting and running a business.

B . The process of working for someone else.

C. The process by investing in stocks.

D. The process of saving money.

14. What are the types of enterprises?

A. Sole partnership, Corporation.

B. Non-profit ,for profit, government

C. small, medium, large

D. local, national, international.

15. What is a sole proprietorship?

A. A business owned and operated by one person

B. A business owned and operated by multiple people

C. A business owned and operated by a corporation

D. A business owned and operated by the government

16. What is a partnership?

A. A business owned and operated by two or more people

B. A business owned and operated by one person

C. A business owned and operated by a corporation

D. A business owned and operated by the government

17. What is finance?

A. The management of money and investments.

B. The production of goods and services.

C. The marketing of products.

D. The distribution of goods and services.

18. What is a bank?

A. A financial institution which gives loans and other services..

B. A non- governmental organization .

C. A government agency.
D. A business organization that that produces goods and services.

19. What is a bank account?

A. A financial account that allows users to deposit and withdraw money.

B. A type of loan that allows users to borrow money.

C. A type of investment that generates returns.

D. A type of insurance that protects against losses.

20. What is online banking?

A. A service that allows users to manage their bank account online.

B. A service that allow users to borrow money online.

C. A service that allows users to invest in stocks online.

D. A service that allows users to shop online.

21. What is a saving account?

A. A type of bank account that earns interest.

B. A type of loan that allows users to borrow money .

C. A type of investment that generates returns.

D. A type of insurance that protects against losses.

22. What is inflation?

A. A sustained increase in the general price level.

B. A sustained decrease in the general price level.

C. A short-term increase in the general price levels.

D. A short-term decrease in the general price level.

23. Commerce is _____________

A. Distribution of goods B. Manufacture of goods

C. Provision of goods D. Provision of personal service

24. Traders who sell goods or order to ________________

A. Pack goods. B. Dump goods

C.Enable exchange D. Make goods expensive

25. A wholesaler is more likely to be used when ___________

A. Goods are large B. Goods are fragile

C. The retailer is small D. Seller’s technical goods

26. Consumers can avoid over-spending by ___________________

A. Buying goods that are past their sell- out date

B. Preparing a shopping list and budget

C. Taking advice from an advising agent.

D. Reading the labels

27. Which is not a consumer right?

A. The right to redress. B. The right to choose

C. The right to luxurious goods D. The right to be informed

28. Businesses in the private sector are formed by ______________

A. Central government B. Local government

C. The state D. Individuals

29. The main investors in the public organization is __________

A. Donor B. Government C. Individual D. Individuals

30. What is a characteristic of money?

A. It is a measure of value B. It is a measure of exchange

C. It has stability in value D. It is a store of value

31. All of the following are forms of ownership investment except ____

A. Brandy B. Your own business

C. Real estate D. Stocks

32. Which of the following is a characteristic of good money?

A. Money should be attractive B. Money should be heavy

C. Money should be portable D. Money should be precious

33. Under the barter trade system ,goods and services are exchanged without the
use of __________________

A. Cattle. B. Money. C. Scortch cart. D. Trade

34. Which are a problem of barter trade?

A. Goods are cheap B. Goods are difficult to value.

C.It creates a shortage of money. D There is scarcity of goods.

35. Which one of the following is a correct channel of distribution of goods?

A. Manufacturer—wholesaler—retailer—consumer

B. Manufacturer—wholesaler-related—consumer

C. Retailer—wholesaler—consumer

D. Wholesaler—manufacturer—consumer-related

36. Extractive industries are involved in ____________________

A. The manufacturing of goods. B. The mining of goods

C. The processing of goods. D. The trading of goods

37. Which of the following is not a factor of production?

A. Capital B. Commerce C. Enterprise D. Land

38. What is the primary purpose of communication?

A. To persuade others B. To inform others

C. To build relationships D. All of the above

39. What is the difference between verbal and non-verbal communication?

A. Verbal communication involves written messages while non-verbal

communication involves spoken messages.

B. Verbal communication involves spoken messages while non-verbal

communication involves body language and facial expressions.

C. Verbal communication involves body language while non-verbal

communication requires spoken messages.

D. Verbal communication involves verbal expressions while non-verbal

communication involves spoken messages.

40. Which organizational provides conventional landline telephone service?

A. Econet B. Not one C. Telexel D. Telone