SECTION A: (20 marks)

1. What is the reward for enterprise?

A) Salary.

B) Profit.

C) Interest.

D) Rent.

2. Extractive industries that are not replenishable include

A) Forestry.

B) Fishing.

C) Farming.

D) Mining.

3. Which of the following is one of the functions of a retailer?

A) Preparing goods for sale.

B) Providing transport service to customers.

C) Storing large quantities of goods for sale.

D) Advertising goods in his own brand name.

4. A market vendor bought a shelf, a counter and a stool. What kind of expenditure is this?

A) Current expenditure.

B) Speculative expenditure.

C) Capital expenditure.

D) Overhead expenditure.

5. ..........................operates on the same basic as public limited enterprises.

A) A parastatal body

B) A public corporations

C) A nationalized industry

D) An urban authority

6. Earnings made by foreign banks in Uganda are

A) An invisible import for Uganda.

B) An invisible export for Uganda.

C) A visible import for Uganda.

D) A visible export for Uganda.

7. S.D.D Co.Ltd has authorized share capital of shs 1million. It sells 10,000 shares at shs80 per share. If the company has a paid share capital of half the authorized capital, calculate the unpaid-up share capital.

A) Shs500,000

B) Shs200,000

C) Shs800,000

D) Shs300,000

8. A middleman who guarantees payment to his overseas suppliers is known as a

A) Factor

B) Broker

C) Del credere agent

D) Forwarding agent

9. A bonded warehouse more often facilitates the work of...

A) Uganda Revenue Authority

B) Uganda Manufacturer's Association

C) Uganda Investment Authority

D) The Export Promotion Council

10. The bank year commences from

A) June to June

B) January to December

C) July to June

D) September to august

11. The term used to describe the special forms of publicity employed for a limited period to launch a new product or boost sales of an existing product by a manufacturer is

A) Advertising

B) Campaigning

C) Sales promotion

D) Marketing research

12. Which of the following means of transport would involve the least costs of loading and off- loading of goods in transit from Mombasa to Kampala?

A) Rail

B) Road

C) Air

D) Sea

13. The principle document of insurance is known as

A) An insurance policy

B) Insurance interest

C) A cover note

D) A proposal form

14. Debentures are used by the

A) Government to borrow money from the public.

B) Public to borrow money from the government.

C) Companies to borrow money from the public.

D) Public to borrow money from companies.

15. A cheque that has been in circulation for more than six months is known as a

A) Crossed cheque

B) Post dated cheque

C) Ante-dated cheque

D) Stale cheque

16. The cost of advertising is mostly met by the

A) Manufacturer.

B) Consumer.

C) Retailer.

D) Wholesaler.

17. A Go-down is another term for

A) A large store.

B) An underground store.

C) An underground road.

D) A large hall.

18. If a business had the following record:

Cash shs 30,000.

Stock shs 120,000.

Bank loan shs 150,000.

Debtors' shs 50,000.

Creditors' shs 30,000.

A) Shs380,000

B) Shs200,000

C) Shs180,000

D) Shs20,000

19. A radio call service is only possible to those who have

A) Radios.

B) Television sets.

C) Radio communication equipment.

D) Walkie-talkies.

20. When a supplier quotes an F.A.S price for and importer, which of the following expenses is the importer not likely to incur?

A) Ship loading expenses.

B) Dock handling charges.

C) Ship freight expenses.

D) Insurance expenses.

SECTION B: (80 marks)

21. a) Distinguish between Commerce and Production.

b) Describe the different types of occupation in production.

22. a) Describe the factors that influence a consumer to buy a commodity.

b) Outline five factors that influence the supply of commodities in your country.

23. a) Why are there many types of retail units within Uganda's commercial sector?

b) Outline the recent changes in retailing which are aimed at overcoming the increased competition within this type of trade.

24. a) Why should Uganda Revenue Authority monitor the flow of imports?

b) How does it control the flow of imports?

25. a) Name and explain the elements of transport.

b) Define the term containerization and give any three of its advantages.

26. With examples distinguish between Fixed Capital and Circulating capital.

b) Outline and explain five main sources of money capital available to a businessman.

27. Briefly describe how the following documents change hands between the seller and the buyer so as to be able to fulfill their functions in foreign trade.

a) The bill of lading.

b) The exporters' invoice.

c) The insurance policy or certificate.

d) The bill of exchange.

28. a) Define the term margin as used in commerce.

b) The following record of 1994 was extracted from the books of Mr.Y.Fida a small retailer in Bushenyi Trading Centre:

Turn over shs984, 000

Margin 25%

Expenses shs49, 200

Calculate his:

i) total cost of sales,

ii) gross profit,

iii) net profit,

iv) net profit as a percentage of the turnover.