ZIMBABWE REPUBLIC POLICE EDUCATION SECTION

FORM 1 END OF YEAR EXAMINATION

COMMERCE 4049/2
PAPER 2 Essays

NOVEMBER 2025 SESSION

MARKING GUIDE

2025 Form 1 End of Year Exams: Commerce Paper 2 Marking Guide Page 1 of 11
 Section A [40 Marks]

Answer all questions

1 (a) Name the three stages of production [3]

 Primary/Extractive Production
 Secondary Production
 Tertiary Production
(b) Explain the term basic human needs [2]

 These are items people cannot live without/ they are necessities/essentials [1]
e.g. shelter, clothing, medical care, water, education, food [1] (any one)

(c) Name one factor of production and its reward [2]

Factor Reward

 Land Rent
 Labour Wages / salaries/royalties/commissions/fees
 Capital Interest
 Enterprise/organisation Profit

(d) The transferring of ownership of business and the means of production

to locals is called indigenisation. [1]
2 (a) Complete the chain of production:
Producer Wholesaler Retailer Consumer [1]
(b) Why is trade important to a country? [4]
 Consumers can buy the goods that they require to satisfy their needs and wants
 People can get a variety of and services. This is possible because goods can be
obtained from producers within the country as well as from other countries
 Through trade, the people’s standard of living or their quality of life is improved by
providing a wide variety of goods and services to satisfy their wants
 Employment is created in producing the goods and services, as well as in selling and
distributing them
 Producers and traders sell their goods and services at a profit. The major aim for
trading is indeed to make profit
 Producers are able to dispose of surplus goods (and to some extent ensure that there
are no shortages)
 Countries and regions can prevent shortages of goods and services by buying from
those experiencing a surplus
 Trade helps to earn foreign currency by selling their goods and services to other
countries. Foreign currency is necessary when you have to buy from outside your
country.
 Trade helps a country obtain goods it cannot produce itself

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  As a result of trade there is interdependence of countries, that is, countries will
develop close or friendly relations as they realise that they ned one another
 Trade raises revenue for the government
 Enables goods to be produced in large quantities
3 (a) Name the organisation that tests products for quality in Zimbabwe [1]
 Standards Association of Zimbabwe (SAZ)

(b) Outline three consumer rights [3]

 right to basic human needs - must have access to basic necessities such as food
 right to choose - must have access to a variety of goods and services
 right to be informed - must be provided with correct information about
goods/services
 right to redress - must have fair settlement of just claims/return unfit goods
 right to consumer education - must be provided with knowledge of their rights
 right to a healthy environment - must be protected against environmental hazards
 right to safety - must be protected against harmful goods
 right to be heard/represented - consumers must be able to lodge complaints/ express
themselves

(c) Classify the following under private or public sector:

 defence forces
 public sector
 partnerships
 private sector
 water purification
 public sector [3]
4 (a) Outline three advantages of being an entrepreneur [3]

 Being his/her own boss.

 Owner enjoys all profits.
 Use personal skills and interests.
 Able to put up own ideas into practice.
 If entrepreneur is successful, the entrepreneur will become famous.
(b) List two characteristics of money [2]

 scarcity
 durability
 acceptability
 uniformity/homogeneity
 divisibility
 portability
 stability
 identifiability/recognisability

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 5 (a) Distinguish between insurance and assurance [4]
Insurance Assurance

- covers an event that may or may - covers an event that must occur e.g. death
not occur e.g. fire
- compensation is paid to insured - sum assured paid to beneficiaries

- covers property - covers life

- can be indemnified - cannot be indemnified

(b) Identify three mobile telecommunication operators in Zimbabwe [3]

 Netone
 Telecel
 Econet
 Africom

6 (a) State the most suitable form of transport to carry the following:
(i) flowers from Harare to Pretoria, [1]
 air transport (also accept aeroplane)
(ii) bread from bakery to retailers, [1]
 road transport (also accept delivery van)
(iii) large volume of crude oil from Beira to Mutare, [1]
 pipeline
(iv) 1000 tonnes of coal from Hwange to ZISCO. [1]
 rail transport

(b) Identify any four marketing concepts [4]

 Production concept
 Product concept
 Selling concept
 Market(ing) concept
 Social marketing oriented company

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 Section B [60 Marks]

7 Draw a diagram to show the branches of Production [20]

8 (a) What are the functions of the Grain Marketing Board (GMB)? [10]

 buys grain from farmers.

 provides transport to the farmers.
 grades grain.
 supplies/distributes grain to millers and consumers.
 markets grain internally and externally.
 provides storage (grain silos) and regulated prices of grain.
 regulates grain supplies/prevents shortages.
 pays farmers regularly, thereby easing their cash flow problems.
 promotes small-scale farming projects, e.g., providing finance.
 processes grain.
 packages and brands grain products.
(b) Examine the services offered to retailers by wholesalers [10]

 sell goods in smaller quantities to retailers (breaks bulk).

 store goods in readiness of retailers.
 receive orders.
 stabilise prices.
 ensure that goods are always available.
 even out the flow of goods to ensure that there is neither shortage nor oversupply.
 provide a variety of goods bought from different manufacturers.
 bring goods nearer to retailers (situated near retailers).
 transport goods to retailers.
 receive complaints from retailers.
 sell goods on credit to retailers (financing the retailer).
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 9 (a) Why do consumers need protection? [10]

Consumers need protection from:

 misleading advertising/advertisements that make false claims

 unethical/immoral advertising that undermine social standards
 the advertising of harmful goods
 impulse buying
 overspending
 improper labelling of goods
 incorrect weights and measures
 overcharging by some retailers
 false price-cutting
 unfair repossession of goods bought on credit
 shoddy goods or services
 conditional selling of goods
 unhygienic premises
 high pressure salespersons
 adulteration of goods
 hoarding of goods
 the selling of expired goods
 refusal by traders to honour guarantees
 disclaimer clauses
 consumers are often gullible

(b) Distinguish between public sector and private sector enterprises [10]

Private Sector Public Sector

Ownership is in the hands of private Ownership is in the hands of central or
individuals or groups of individuals. local government.
Individuals make their own decisions as Management refers all decisions to the
the owners of the businesses. central or local governments.
Individuals invest money, time and State-owned businesses get their capital
effort into the business. from the government.
Private sector businesses are controlled State-owned businesses are controlled by
by individuals. the government.
Private businesses aim to make a profit; Public sector businesses aim to break even;
if they make losses continuously, they a surplus is welcome.
may close down.
Investors share profits and losses among Profits go to the government.
themselves.

10 (a) Outline the importance of enterprise skills [10]

 support job creation through entrepreneurship, reducing unemployment.

 increase the availability of goods and services.
 improve people’s quality of life.

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  drive innovation and business creation needed for economic growth.
 generate foreign exchange through exports and attracting investment.
 promote self-employment and help reduce unemployment.
 support economic diversification beyond traditional sectors like agriculture and
mining.
 reduce poverty by creating income-generating activities.
 build resilience, adaptability, and risk-taking in the population.
 boosts Zimbabwe’s global competitiveness through innovation and continuous
improvement.
 increase competition and productivity
 create new businesses
 increase people’s level of income and their ability to spend
 increase national income through taxes
 reduces government spending by lessening reliance on welfare and state support as
more people become self-reliant.
 crime is reduced
 promotes trade
 leads to low prices due to competition
 leads to infrastructure development

(b) Explain any five functions of money [10]

 Means/medium of exchange - can be exchanged for goods or services.

 Measure of value - enables goods to be easily priced or to be given value in monetary
terms and enables comparison of values of goods.
 Store of value/wealth - enables savings to be made.
 Standard/unit of deferred payments - goods/services can be bought or sold on credit
to be paid for in future and the price to be paid is expressed in monetary terms.
 Unit of account - enables financial reporting to be made i.e. transactions are
accounted for in monetary terms.

11 (a) Explain how insurance is “pooling of risks” [10]

 many people facing the same type of risks [2]

 contribute premiums into a common pool regularly [2]
 administered by the insurance company [1]
 in the event of a loss, money is taken from the pool to compensate the unfortunate
member [2]
 the remainder is invested leaving profit for the insurer [1]
 enables sharing of burden of loss [1]
 the fortunate helps the unfortunate [1]
 the pool of risks is governed by the principles of insurance [1]

(Accept correctly drawn and labelled diagram like one below and award up to 5 marks
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 for diagram only)

(b) Describe the importance of internet to a trader [10]

 sends and receives messages, payment of documents/orders through e-mail

 facilitates e-commerce
 customers can make enquiries
 queries can be settled
 used to advertise
 facilitates video conferencing
 facilitates use of social media e.g. whatsapp/facebook/x/Instagram/snapchat/wechat
 can be used over any distance, anytime
 cheap to use/reduces operational costs
 fast
 library of information
 trader can use datel
 it is a communication method
 facilitates e-banking, e-ticketing, e-tolling, e-government, e-tracking, e-insurance,
e-assurance, e-parcel counter

12 (a) How do the services of transport assist a construction company? [10]

 carries workers to and from work

 carries/moves building materials from their source to construction sites.
 it carries the machinery, tools and equipment needed for construction work
 transport delivers the spare parts needed to repair and maintain construction
equipment and machinery.
 it can also be used to advertise the business by printing the name and logo of the
business on the vehicles and conducting road shows.
 it carries business executives and supervisors e.g. building inspectors
 it moves clients.
 without transport, the construction company’s work would be local.
 enables construction to get building materials, tools, machinery and equipment
from other countries.
 move materials and equipment on site

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 (b) Outline the importance of warehousing [10]

 Enables Storage of:

 raw materials.
 finished goods.
 partly finished goods.
 goods in transit.
 goods in entrepot trade.
 seasonal goods.
 goods prior to sale or delivery.
 enables even distribution of goods i.e., natural resources are produced in abundance,
stored, and distributed to areas of need.
 stabilises prices i.e., in times of plenty, prices are low and in times of shortages prices
are high and by storing goods for all times, prices stabilise.
 enables grading, packing, and branding of goods.
 enables preservation of perishables in very large cold storage rooms e.g., fish, fruits,
or meat.
 enables goods to improve on quality or enables goods to mature e.g., wine, spirits,
fruits, or tobacco.
 prevents shortages, in the event of some machinery breaking down, drought, or
manufacturers running short of raw materials.
 provides collateral security in obtaining loans.
 meets unexpected demands arising from:
 increase in school children needing more uniforms.
 increase in wages which would mean more money to spend on demands and
leisure.
 meets demands at any time at different volumes, i.e., warehouses carry surplus
supplies and release them onto the market when needed.
 protects goods from weather elements such as rain, sun etc.
 clears lines of production.
 allows bulk purchases by businesses.
 stores durable goods until duty is paid.
 reduces risks such as theft, damages.

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 13 (a) Explain five problems of Barter trade [10]

 it requires a double coincidence of wants – an individual who has a commodity to

exchange has to find someone who wants what he/she has and also has a commodity
he/she wants e.g. John has a goat that Mary wants and Mary has a cow that John
wants.
 it involved long distances in order to get the person with the required product.
 it is difficult to value goods – it is difficult to determine how much of a given
commodity can be exchanged for another e.g. how many broilers are equivalent to a
cow.
 lack of divisibility of some goods – some goods are difficult to divide because
dividing goods may result in wastage e.g. it may be difficult to divide e.g. animals.
 it is cumbersome – many transactions are made to get what one requires.
 lack of storage facilities – goods are stored for long periods and it creates problems
for perishables.
 some goods were too heavy to - carry e.g. grains.

(b) Describe the features of virtual markets [10]

 A virtual market is where buyers purchase goods and services through the Internet
e.g. eBay.
 buyers and sellers do not meet or interact physically.
 also referred to as electronic markets and are the foundation of electronic commerce
(e-commerce).
 they combine together advertising, product ordering, delivery, and payment systems.
 An electronic marketplace allows the participating buyers and sellers to exchange
information about prices and product offerings.
 E-markets provide an electronic or online methods to facilitate transactions between
buyers and sellers.
 E-markets often provide support for all of the steps in receiving, processing and
delivery of the goods.
 Buying can be done at any time.
 Cheaper to advertise on the internet.
 Goods are delivered to the customer.
 Low operational costs.
 Any distance (convenient).
 Wide coverage/can buy and sell goods worldwide.
 Saves on travelling expenses.

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  Variety of goods from several producers.
 Shopping can be done in the comfort of the customer’s home.
 Enables online payments.
 Less or no paperwork.
 Fast way of transacting.
 Customers can compare prices from various sellers.
 Pictures may not portray the real quality of goods.
 No human follow-up or clarification.
 Impersonal - buyers and sellers trade without face-to-face contact, relying on digital
platforms instead of personal relationships.
 Some questions may not be answered.
 High cost for postage, advertising.

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