THE UNITED REPUBLIC OF TANZANIA, PRIME MINISTER'S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT 

FORM THREE TERMINAL EXAMINATIONS 

061 COMMERCE

Time 3:00 HRS May, 2026

Instructions

1. This paper consist of sections A. B and C
2. Answer ALL questions in section A and B and TWO question from Section C
3. Cellular phones and any unauthorized materials are not allowed in the examination room
4. Write your examination number on every page of your answer booklet (s) Sheets

SECTION A 16 MARKS

Answer all question in this question

1. For each of the item (i) –(x). choose the correct answer from the given alternative and write its beside the item number in the answer booklet provided

(i) Why face to face business communication is advantageous to both retailer and final customers?

1. There is no need of keeping record of the message communicated
2. It provides immediate feedback on the message communicated
3. It reduces unnecessary noise between the sender and the receiver.
4. It promote trust worth between the sender and the receiver
5. The message communicated can not be distorted.

(ii) Which one is an appropriate channel for distribution of fruits to the consumers

1. Producer → Wholesalers → Retailers → Consumers
2. Producer → Retailers → Wholesaler → Consumers
3. Producer → Wholesaler → Consumers
4. Producer → Consumers

(iii) Which one is advertising media which covers a wider geographical area? 

1. Television 
2. Website 
3. Radio
4. Newspaper
5. Outdoor publicity

(iv) Which means of transport is safe and convenient to transport co Hon

1. Air transport 
2. Railway 
3. Pipeline transport
4. Containerization 
5. Road Transport

(v) The document used to deposit money in current account is known as:-

1. Deposit form
2. Pay in sleep
3. Pay in receipt
4. Bank statement
5. Withdraw forms

(vi) Production process end when

1. Manufacturing process ends
2. Goods reach the final consumers
3. Good reach the retail shop
4. Goods are stored in warehouse

(vii) For particular goods, elasticity of demand is 0.4 what does this indicate?

1. Elastic demand
2. Inelastic
3. Unitary
4. Potect elastic
5. Unit elastic

(viii) When goods are transferred from the factory of the consumers so as to reach them is known as:-

1. Primary production
2. Extractive materials
3. Secondary production
4. Tertiary production
5. Constrictive production

(ix) Satisfactory derived after consumption of goods and services is referred to as:-

1. Utility
2. Exchange
3. Auxiliary services
4. Satisfaction
5. Consumption

(x) The main purpose of commerce is to

1. Make profit
2. Help customer
3. Help manufactures
4. Bridge the gap between the producer and the consumers
5. Rise production

2. Match the items in column A with the responses in column B by writing the letter of the correct responses beside the item number in your answer sheet.

SECTION B 54 MARKS 

Answer all questions in this section

3. (a) Communication is what communication does” discuss by five point

(b) Distinguish between change in demand and change in quantity demanded. Use graph

4. (a) Differentiate between wholesaler and wholesaling

(b) Why sometimes wholesaler are not necessary in chain of distribution?

5. Mention and explain six (6) advantages of specialization

6. John bought an article for Tsh.320. He wishes to make Gross profit of 20% .His indirect expenses are usually 60% of his Gross profit .

Calculate his :

1. Selling price
2. Markup percentage
3. Gross profit
4. Expenses
5. Net profit per Unit

7. (a) Briefly Explain the classes of human wants 

(b) Describe four features of human want

8. Write short notes on the following commercial terms:

1. Brand name
2. Standardizing
3. Promotion mix
4. Marketing
5. Trade mark

SECTION C (30 MARKS) 

Answer two (2) questions from this section

9. Explain ways which can be used to manage rising self-employments.

10. Transportation is only factor which leads to the growth of Commerce .Discuss

11. Explain five (5) functions of marketing.

THE UNITED REPUBLIC OF TANZANIA PRESIDENT’S OFFICE- REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM THREE TERMINAL EXAMINATION

061 COMMERCE

TIME: 3 Hours

Instructions

1. This paper consists of sections A, B and C with a total of ten (10) questions

2. Answer all questions in section A and B and two (2) questions from section C.

3. Section A carries twenty (20) Marks, section B Fifty (50) marks and section C carries thirty (30) marks.

4. Cellular phones and any unauthorized materials are not allowed in the examination

5. Write your Name on every page of your answer booklet(s)

SECTION A (20 Marks)

Answer all questions from this section

1. For each of the items (i) – (xv) choose the correct answer from among the given alternative and write its letter beside the item number on the answer sheet provided

i. Mr. Brian is a trader selling second hand clothes that normally buying them from Dubai and selling them Dar es salaam-Tanzania. Which type of trade Mr. Brian conducting?

1. Retail trade 
2. Export trade 
3. Wholesale trade 
4. Import trade 
5. Home trade

ii. Which is the correct reason for the movement along the demand curve?

1. Change in taste and fashion
2. Change in people’s level of income
3. Change in the price of the commodity
4. Change in the demand of the other goods
5. Change in the value for money 

iii.Suppose a form one commerce student asked you about the best way of describing the term commerce. Which of the following is the best response that you could give?

1. Commerce deals with distribution of goods to final users
2. Commerce deals with exchange of goods and service
3. commerce deals with exchange and distribution of goods and services
4. commerce deals with exchange of goods and services within the country
5. Commerce deals with exchange of goods and services outside the Country 

iv. The following are the roles of entrepreneurship in economic development except:

1. creation of friendship among the countries 
2. creation of employment opportunities
3. improvement on peoples’ living standards
4. improvement in per capital income
5. capital formation

v. Which one among the following is the correct classification of warehouses?

1. Private warehouse, bonded warehouse and wholesalers warehouses
2. Bonded warehouse, private warehouse and retailers warehouse
3. Public warehouses, private warehouses and bonded warehouse
4. Public warehouses, bonded warehouses and producers warehouses
5. Wholesalers warehouses, retailers warehouses and manufacturers warehouses

vi. If there was a farmer who had wheat and wanted salt he had to find one who had salt and wanted wheat, this is an example of:

1. Difficult in transporting immobile items.
2. Invisibility of some items.
3. Lack of store of value.
4. Need of double coincidence of wants.
5. Lack of measure of value.

vii. Which of the following is not a feature of free goods?

1. They are not scare
2. They are not produced by human effort
3. They are not transferable in terms of ownership
4. They lack exchange value
5. They are transferable in terms of ownership 

viii. Nearly every journey involves junctions where we can transfer from one form of transport to another, in this case we are referring to:

1. The way
2. The unit of carriage
3. The terminal
4. The unit of propulsion
5. None of the above.

ix. Suppose you have bought medicine from India and they are urgently needed to serve the life of patients in Tanzania, which mode of transport would consider being appropriate?

1. Road transport
2. Air transport
3. water transport
4. Railway transport
5. Pipeline transport

x. Under which classification the services provided by teachers, lawyers and police to their customers are categories? 

1. Direct services
2. Auxiliary services
3. Personal services
4. Public services
5. Indirect services 

xi. The following are the functions of production department in management except

1. controlling the quality of goods produced in production department
2. maintaining the quality of machines in the production department
3. developing and implementing production plans
4. preparation of budget for activities carried in the department
5. Recruiting members of staff for production department.

xii. The process of giving a particular name to a product is called

1. Pre-packaging
2. Trade naming
3. Pre-packing
4. Branding
5. Retailing

 xiii. A delcredere agent

1. receives longer credit terms from his principals in consideration of higher trade discount
2. Obtains higher commission as he guarantees payment for goods sold on behalf of his principals
3. Handles only imported goods of high standing
4. Receive longer credit terms from his principals in consideration of lower trade discount
5. Is given credit from his principals but himself sales only by cash 

xiv. Aids to trade may be defined as the activities aimed at

1. Assisting the consumers directly
2. Making the work of those involved in manufacturing of essential goods easy
3. Helping producers directly
4. Bridging the gap between the producer and a consumer
5. Helping retailers directly 

xv.Why does elimination of the wholesaler from the channel of distribution not affect the flow of goods from the manufacturer to the final consumer?

1. The wholesaler has very small amount of capital.
2. The wholesaler performs the only selling function.
3. All goods involved in the channel of distribution are branded.
4. In regardless of the financial position, manufacturer can sell direct to final users.
5. The wholesaler’s functions can be performed by other agents.

2. Match the item in LIST A with the response in LIST B by writing the letter of the correct response beside the number in the table provided below

 SECTION B (50 Marks)

Answer all questions in this section

3. Martine is a bookseller in Dodoma, and he wants to choose the best communication media that will help him to reach his customers countrywide easily. He approached you as a business communication expert to advise him

(a)What suitable communication media should he use?

(b)What factors have been considered in selecting the medium in (a) above? Six factors

4. Being employed in an organization will not make a person rich, but being a boss for you is a source of richness to many entrepreneurs. Briefly explain three benefits and two demerits of self-employment to the people of Tanzania.

5. Mundemu secondary school after the loss of sacks of corn, A food Teacher Madame Isuchaa insists on establishing a large building which will be used for the storage of maize, rice and oils for future use and that building will help the school for the protection like bad weather and theft. What factors do you think will be considered for the establishment of that building?

6. Given the diagram below.

a) Name and explain the diagram above.

b) Explain six (6) reasons that might be reasons for the shift from either 0QE to 0Q1 or 0QE to 0Q2.

7. Mwambola is a trader who exports fresh fish and flowers from Tanzania to Japan and he did not know the best means of transport to be used. As a commercial student:

a) Identify and suggest the suitable means of transport to be used.

b) Describe two (2) advantages and two (2) disadvantages of the means transport chosen in (a) above.

SECTION C (30 Marks)

Answer only two questions in this section

8. Sunflower Oil industry at Singida uses wholesalers in distributing its products all over Tanzania. With some reasons, the wholesalers have decided to step down. Explain how the Industry is negatively being affected by stepping down of the wholesalers. Give six points.

9. Money to be called money should have traits. Examine six things which make money to be money.

10. Advertising is considered as an aid to trade because of the role it play in spreading information about goods and services and creating inclination in the mind of the consumers. Without effective advertising it would be very difficult, if not impossible, for any large scale organization to stay in business. Advice to large scale organization six factors that should be considered when choosing advertising media

THE PRESIDENT’S OFFICE MINISTRY OF EDUCATION, LOCAL ADMINISTRATION AND LOCAL GOVERNMENT

COMMERCE- TERMINAL EXAMINATION-MAY

FORM THREE

TIME: 2:30HRS                                                                2020

NAME:_______________________________________________                     CLASS:___________

INSTRUCTIONS

• This paper consists two sections A and B
• Answer All questions in both sections
• Answers should be written in blue/black ink

SECTION A

MULTIPLE CHOICE QUESTIONS

1. For each of items (i)-(x), choose the correct answer from among the given alternatives and write its letter in the boxes provided below:

(i) All of the following methods are involved in a barter exchange except:

1. The buyer must have some goods to give to the seller
2. The buyer must pay cash to the seller
3. The buyer can offer labour services to obtain goods
4. There must be a double coincidence of wants

 (ii)  Which one of the following is an example of a barter trade?

1. Fish and coins
2. Goat and notes
3. Cow and chair
4. Sheep and silver coins

 (iii) Which of the following industries deal with natural resources?

1. Manufacturing
2. Constructive
3. Extractive
4. Textile 

 (iv) The resources in the form of money or materials that a person or an organization has for establishing and running a business is called:

1. Merchandise
2. Basic needs
3. Capital
4. Debts

 (v)  The point where demand and supply curves intercept is called:

1. Centre point
2. Zero point
3. Equilibrium point
4. Margin

 (vi) A refrigerator used in making ice cream for sale, is in the category of:

1. Consumer goods
2. Luxury goods
3. Producer goods
4. Domestic goods

 (vii) Generally, more goods will be supplied when:

1. Prices are relatively high
2. Prices are relatively low
3. Prices are fairly competitive
4. Prices are fixed by the government 

 (viii) Traders who do not have permanent business premises are called:

1. Itinerant traders
2. Gamblers 
3. Brokers
4. Underwriters
5. Retailers

 (ix) The last people in the distribution chain are:

1. The customers
2. The retailers
3. The wholesalers
4. The consumers

 (x) Given that:

• Daily sales = 20 tins of NIDO milk
• Delivery time = 5 days
• Minimum stock = 100 tins of NIDO milk

Order point is:

1. 200 tins
2. 150 tins
3. 180 tins
4. 100 tins

2. MATCHING ITEMS

Choose the items in group A that matches with the items in group B

SECTION B

3. Short answer questions

1. Traditional Media
2. Visual communication
3. Inflation
4. Expansionary Monetary policy
5. Savings bank

SECTION C

Answer All questions in this section 

4. “Money is as money does “Discuss.

5. Discuss the importance of communication to business

6. a) What is B.O.T?

b) Examine the functions of B.O.T in Tanzania

7. Explain the  qualities of a good retailer

8. Explain the problems facing communication in Tanzania

9. a)Explain the term “ Transportation”

b) State the merits of air transport in Tanzania. (Five points)

10. Discuss the factors which must be considered for choosing a mode of transport