TANZANIA HEADS OF ISLAMIC SCHOOLS COUNCIL

FORM FOUR INTER ISLAMIC MOCK EXAMINATION

COMMERCE
061
(For both School and Private Candidates)

TIME: 3 Hours Wednesday, 30th August 2023 p.m.

Instructions
1. This paper consists of three sections A, B and C with a total of eleven (11) questions.
2. Answer all questions in sections A and B and two (2) questions from section C.
3. Section A carries sixteen (16) marks, section B carries fifty four (54) marks and section C
carries thirty (30) marks.
4. All communication devices, calculators and any unauthorized materials are not allowed in
the examination room.
5. Write your Examination Number on every page of your answer booklet(s)

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 SECTION A (16 Marks)
Answer all questions in this section
1. For each of the items (i) – (x), choose the correct answer from among the given
alternatives and write its letter beside the item number in the answer booklet provided.
(i) You have decided to engage in business activities of buying and selling of goods
within and outside our country. Which level of production does your business
belong?
A. Primary production
B. Secondary production
C. Tertiary production
D. Indirect production
E. Direct production
(ii) It is often argued that when the price of petrol in the market increases the price of
bus fare rises. This demand is referred to as:
A. Competitive demand
B. Composite demand
C. Complementary demand
D. Derived demand
E. Increased demand
(iii) Due to advancement of science and technology Abood Bus services allow his
customers to settle their due using negotiable instruments. Which among the
following will not be accepted by Abood?
A. Cheque
B. Bill of exchange
C. Promissory notes
D. Bank draft
E. Money order
(iv) Muharam trader in Dar es Salaam buys goods from China and sells them in
Burundi. How can you describe the trade conducted by Muharam trader?
A. Entrepot trade
B. Export trade
C. Import trade
D. Foreign trade
E. Internal trade
(v) Which of the following describes the behavior of the headmaster of a certain
school who always assigned his duties to be performed by his deputy when he
leaves the school for various reasons?
A. Span of control
B. Scalar chain
C. Division of work
D. Delegation of work
E. Authorization of work

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(vi) After keeping goods for a long time without settling a bill of exchange, Igalawa
Cargo supplier is authorizing CRDB bank to take back the goods supplied to
Mihan and sells them. Which document will be issued by Igalawa Cargo to
authorize that repossession?
A. Letter of credit
B. Letter of hypothecation
C. Bill of lading
D. Certificate of original
E. Consular invoice

(vii) Tax authority kept one of the imported machines from Indonesia until the
payment of all importation duties are settled. Where is the machine kept?
A. Warehouse
B. Public warehouse
C. Private warehouse
D. Bonded warehouse
E. Producer warehouse

(viii) KFC multinational trade is using signs installed on the walls and roofs at the front
of their restaurants which appear more attractive at night with the help of the
electricity. What is the form of advertising used by KFC?
A. Neon light
B. Bill boards
C. Outdoor
D. Press advertising
E. Exhibition

(ix) One of the following is not among the advantages that Hassan will get by using
aeroplane to transfer his commodities to DRC Congo.
A. Low insurance cost
B. Low risk of accident
C. High speed
D. Suitable for valuable items
E. Door to door services

(x) Madam Halima and her husband were travelling using her husband’s car which
was insured, unfortunately they got an accident. Madam Halima presented claims
but the insurance company rejected to make a compensation. Which principle was
considered by insurer?
A. Utmost good faith
B. Proximate cause
C. Insurable interest
D. Indemnity
E. Subrogation

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2. Match the following explanations of entrepreneurship functions in column A with the
correct function in column B by writing the letter of the correct response beside the item
number in your answer booklet.
COLUMN A COLUMN B
(i) An entrepreneur sets down the objectives and designs A. Organizing
strategies to achieve the goals. B. Planning
(ii) An entrepreneur undertakes the responsibility for loss that C. Managerial role
may arise due to future unforeseen events. D. Idea generation
(iii) An entrepreneur decides on type and nature of the E. Rewarding
business that will be undertaken. other factors
(iv) An entrepreneur awards other factors for their F. Employment
contribution in production process. G. Risk bearing
(v) An entrepreneur function which involves planning, H. Hard working
organizing, staffing and controlling
(vi) Entrepreneur hires a person who work for wages or salary

SECTION B (54 Marks)

3. After working alone in Taxi business for two years, Khalfan decided to offer his friends
Musa and Imran a chance to become partners in his business. Analyse six (6) reasons
which influenced Khalfan’s decisions.

4. Assume your name has been shortlisted for an interview to work with Silent Ocean
Company which deals with transporting various items from Asia and America. How
would you explain the following concepts to interview panelists?
(a) Full container load FCL
(b) Liners
(c) Tramps
(d) Charter part
(e) Dry port

5. A suddenly decrease in demand for Eshaa’s juice with a popular brand “Embe dodo”
influences her to approach marketing specialist who advises her to adopt marketing mix
promotion techniques (sales technique) which might stimulate customers preference.
Identify six (6) tools that will be adopted by her.

6. Domestic traders play a significant role in helping both the manufacturers and the final
consumers. Despite their effort, they face a number of challenges to attain their goals.
Illustrate six (6) of them.

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7. Your cousin brother is a businessman and has presented you with the following
information:
Sales …………………………………………………… 1,000,000/=
Opening stock …………………………………………. 100,000/=
Closing stock ………………………………………….. 25% of sales
Gross profit markup …………………………………… 33.3%

Use the above information to help him on determining:

8. You are asked to give out the story to your friends about a cerebration that you had
following the promotion of your father as a new manager to a particular company.
Eventually your friends want to know the meaning of management and five (5) duties that
your father will be assigned with. Analyse what will be your response.

SECTION C (30 Marks)

9. Brother Kalukula was shocked and became angry after receiving a LUKU token message
in his mobile phone showing 18% of the money paid by him has been taken off as a VAT
deduction. He faced you as a form four business student to explain to him the meaning of
VAT and why it should be imposed to our transactions? Justify six (6) reasons to your
brother Kalukula.

10. Opposing views prevail over trade protectionism. One prevailing view is that elimination
of protectionism would boost international trade. Nevertheless another contends that
protectionism is harmful to country’s economy. Discuss this statement by giving six (6)
views regarding appropriateness of whichever decision to be persuaded in a country like
Tanzania.

11. Mwanyala plan to establish a mobile restaurant that he believes will help workers to save
time by delivering meals to their working place, unfortunately he does not have enough
capital to run it effectively. Advise him on six (6) sources of fund for that.

Wabillah Tawfiiq

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