Paper 1 Nov 2008
Paper 1 Nov 2008
Paper 1 Nov 2008
COMMERCE 7100/01
Paper 1 Multiple Choice October/November 2008
1 hour
Additional Materials: Multiple Choice Answer Sheet
*3324443454*
There are forty questions on this paper. Answer all questions. For each question there are four possible
answers A, B, C and D.
Choose the one you consider correct and record your choice in 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.
The businesses described in this question paper are entirely fictitious.
IB08 11_7100_01/3RP
© UCLES 2008 [Turn over
2
A industry
B primary
C secondary
D tertiary
A commercial services
B direct services
C extractive industry
D non-productive services
4 The pie chart shows a country’s trade with other countries for a year.
other
products
oil
15 %
25 %
textiles
20 %
chemicals
20 %
manufactured
products
20 %
Bread Cereals
Cakes Home baking
Sugar
A mail order
B market trader
C multiple chain
D supermarket
8 Many customers are using credit cards to buy goods and services on the Internet.
11 When selling goods to the public, a large-scale retailer uses the items shown below.
Which item is concerned with protecting the consumer when buying goods?
A B
C D
Warning sign
Caution
Slippery
Surface
A bonded warehouses.
B cash and carry warehouses.
C hypermarkets.
D multiple chains.
13 What does a broker engaged in foreign trade receive as payment for his services?
A commission
B interest
C profit
D wages
If two damaged cases of pineapple are returned, what should the supplier send to the retailer?
A cash discounts.
B free gifts.
C gift vouchers.
D trade discounts.
17 ‘Tourists from Japan visiting the UK spend money while they are there and, by doing so,
contribute to the UK’s balance of payments with .............… .’
A invisible exports
B invisible imports
C visible exports
D visible imports
18 A country has the following pattern of imported goods and exported goods:
Total Total
imported goods exported goods
$460 m $520 m
A $60 m deficit
B $460 m deficit
C $60 m surplus
D $980 m surplus
19 Which difficulty makes exporting more complicated than trading in the home market?
A capital
B currencies
C statistics
D subsidies
21 Which advertising medium would a manufacturer use to give detailed information to a retailer
about a product?
A daily newspaper
B poster
C radio
D trade journal
22 What would be the most effective method of promotion to sell a new model of car?
23 A customer in Pakistan wishes to inform his UK supplier that a recent delivery was not up to the
ordered quality.
A email
B pager
C surface mail
D teleconferencing
A answering machine
B fax machine
C mobile phone
D video phone
A canned food.
B clothes.
C milk.
D toys.
29 Mr Chang is advertising his cash and carry warehouse. His advertisement includes some
information which is not accurate for a cash and carry warehouse.
discounted prices
extended credit
free car parking
variety of goods
A discounted prices
B extended credit
C free car parking
D variety of goods
A to increase sales
B to make a profit
C to protect against risks
D to reduce competition
Under the principle of contribution, for how much would Y be liable in the event of a total loss?
A a current account
B a deposit account
C a loan account
D a savings account
40-56-17
A a blank cheque
B a crossed cheque with a general crossing
C a crossed cheque with a special crossing
D an open cheque
35 Which banking service is not available to customers who use the Internet for banking?
A obtaining overdrafts
B paying into creditors’ bank accounts
C using direct debits
D withdrawing cash
What will be the most important factor when looking for a suitable site?
37 Which of the following has many owners and is in the private sector?
39 Which source of finance would be most suitable for a large company planning to modernise its
manufacturing equipment?
A bank loan
B factoring
C overdraft
D trade credit
40 During October a retailer buys 1000 articles for $20 each. She sells all of them with a mark up of
30 %. Her expenses total $2000.
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reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.
University of Cambridge International Examinations is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of University of
Cambridge Local Examinations Syndicate (UCLES), which is itself a department of the University of Cambridge.
7100/01/O/N/08