HIGHGATE COLLEGE
General Certificate of Education Z.J.C (FORM 1)
COMMERCE PAPER 1
END OF YEAR 2024 PAPER 1
Additional materials:
Answer paper
TIME: 1hr
1. Production is defined as:
A The process of exchanging goods and services
B The creation of goods and services to satisfy human wants
C The act of buying and selling goods
D The consumption of goods and services
2. Which of the following is NOT a factor that influences production?
A Labor
B Capital
C Advertising
D Natural resources
3. Primary production mainly involves:
A Manufacturing goods
B Extracting raw materials
C Providing services
D Retailing goods
4. Which of the following is an example of secondary production?
A Fishing
B Mining
C Car manufacturing
D Teaching
5. Domestic trade refers to:
A Trade between nations
B Trade within a country
C Trade without the use of currency
D Trade through online platforms
6. A benefit of trade for consumers is:
A Limited product choices
B Increased product variety
C Higher prices
D Reduced quality of goods
7. Which of the following best describes wholesale trade?
A Selling goods directly to consumers
B Selling goods in bulk to retailers
C Producing goods for export
D Providing storage for goods
8. An example of retail trade is:
A Selling to large factories
B A supermarket selling groceries
C A warehouse storing goods
D A company exporting goods
9. Warehousing is the process of:
A Producing goods
B Storing goods until needed
C Advertising goods for sale
D Delivering goods to customers
10. Which of the following is a function of a warehouse?
A Producing goods
B Transporting goods
C Storing goods until they are sold
D Designing products
11. A bonded warehouse is primarily used for:
A Storing raw materials for manufacturing
B Storing imported goods awaiting customs clearance
C Storing perishable goods only
D Storing goods for retailers
12. An advantage of using a bonded warehouse is:
A Reduced import taxes
B Immediate access to goods without customs clearance
C Enhanced security for valuable goods
D Storage of goods at reduced costs
13. An enterprise is best defined as:
A A large company only
B A business organization involved in production
C A nonprofit organization
D Any public sector organization
14. One characteristic of a successful entrepreneur is:
A Risk aversion
B Innovation and creativity
C Avoidance of competition
D Reliance on government funding
15. A small enterprise typically has:
A Hundreds of employees
B Very limited market share
C Fewer than 50 employees
D Global reach
16. An example of a medium enterprise is:
A A large supermarket chain
B A family-owned grocery store
C A local manufacturing company with 100 employees
D An international retail corporation
17. The purpose of a business plan is to:
A Explain the company’s mission and objectives
B Secure investment and guide business operations
C Ensure the company becomes a monopoly
D Set company tax rates
18. Which of the following is NOT a key component of a business plan?
A Marketing strategy
B Financial projections
C Employee list
D Product description
19. A business plan helps startups to:
A Secure loans and attract investors
B Reduce production costs significantly
C Eliminate competition entirely
D Avoid any risk of failure
20. Another benefit of a business plan is:
A Lack of any marketing requirement
B Avoiding government regulations
C Providing clear objectives for employees
D Reducing the need for financial oversight
