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UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Ordinary Level COMMERCE Paper 1 Multiple Choice Additional Materials: Multiple Choice Answer Sheet Soft clean eraser Soft pencil (type B or HB is recommended) Ruler Protractor 7100/12 May/June 2012 1 hour *1247437147* Additional Materials: (not provided by CIE) READ THESE INSTRUCTIONS FIRST Write in soft pencil. Do not use staples, paper clips, highlighters, glue or correction fluid. Write your name, Centre
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    This document consists of 12  printed pages. IB12 06_7100_12/4RP © UCLES 2012 [Turn over          *           1           2           4           7           4           3           7           1           4           7          *       UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Ordinary Level COMMERCE 7100/12  Paper 1 Multiple Choice  May/June 2012 1 hour Additional Materials: Multiple Choice Answer Sheet Additional Materials: ( not  provided by CIE) Soft clean eraser Soft pencil (type B or HB is recommended) Ruler Protractor READ THESE INSTRUCTIONS FIRST Write in soft pencil. Do not use staples, paper clips, highlighters, glue or correction fluid. Write your name, Centre number and candidate number on the Answer Sheet in the spaces provided unless this has been done for you. 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. Read the instructions on the Answer Sheet very carefully. 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.  2   © UCLES 2012 7100/12/M/J/12 1  People have a number of basic needs. What do these needs include? A  entertainment and tourism B  food and water C  insurance and medical care D  transport and communication 2  The diagram shows the costs involved in making and selling a pair of jeans. manufacturingexpenses$52 metres of clothat $2 per metreother materialse.g. zip, buttons$1distributionexpenses$1selling expenses$2  How much value is added to the two metres of cloth in making  the pair of jeans? A  $6 B  $8 C  $9 D  $13 3  Which production process makes trade between countries necessary? A  mechanisation B  simplification C  specialisation D  standardisation 4  Which aid to trade would be most useful to a sole trader who lacks capital? A advertising B banking C insurance D transport  3   © UCLES 2012 7100/12/M/J/12 [Turn over    5 What is the chain of distribution for manufactured goods? A consumer retailer wholesaler manufacturer B consumer wholesalerretailer manufacturer C manufacturer wholesalerconsumer retailer D manufacturer wholesalerretailer consumer 6  What is a multiple chain? A  a group of retailers buying from one wholesaler B  a group of wholesalers C  a large-scale retailer with many similar branches D  a large self-service store 7  Loss leaders are products that are A  branded and packaged. B  ordered specially for customers. C  past their sell-by date. D  sold at or below cost price. 8  Which of the following would be expected to help the small-scale retailer to survive? A  buying goods in larger quantities B  charging higher prices C  employing more sales staff D  opening for longer hours 9  A small-scale shopkeeper allows customers she knows well to have goods and pay for them at the end of the week. What is this called? A  budget account B  deferred payments C  hire purchase D  informal credit  4   © UCLES 2012 7100/12/M/J/12 10  How does a consumer protect herself against unfair trading practices? A  Check goods and services before buying. B  Join a consumer association. C  Report unfair practices to the police. D  Send purchased goods to be tested for quality. 11  In which trade is the wholesaler most likely to be eliminated? A  blankets B  bread C  clothes D  meat 12  A general wholesaler acts as a middleman between the manufacturer and the retailer. Which function carried out by the wholesaler benefits both  the manufacturer and the retailer? A  clearing stocks to enable production to continue B  displaying goods ready for sale C  giving help and advice on the use of new products D  taking the risks of damaged and unsold goods 13 Which agent advises companies on the best means of moving goods? A broker B del credere agent C factor D freight forwarder
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