01-10: ABDDCBBACE
11-20: BDABCBDDBB
21-30: BDDDCDECCD
31-40: DBAEBAEABB
41-50: DCEDDCEBDA
51-60: EEDBEDAAAB
======================================================

ANSWER ANY FIVE QUESTION
__________________________________________

NUMBER 1
(1) (i) Awareness
(ii) Information
(iii) Persuasion
(iv) Reminder
(v) Expansion of Markets

(1) (i)Awareness:
One of the important roles of advertising is to create awareness of the product or services such as brand name and price. The awareness of the product or services can be created through highlighting the unique features of the brand. Nowadays, due to intense competition it is not just enough to create awareness, but top of mind awareness is needed.

(ii) Information:
Advertising helps to inform the target audience about the product. Providing information is closely related to creating awareness of the product. Potential customers must know about a product, such as product features and uses.Product information is very much required, especially when the product is introduced in the market, or when product modification is undertaken. Proper product information can help the consumers in their purchase decision.

(iii)Persuasion:
When business firms offer similar products, the firm must not only inform the customers about the product’s availability, but also persuade them to buy it. Through persuasive messages, the marketers try to provide reasons regarding the superiority of their products as compared to others available in the market. Persuasion can be undertaken through creative advertising messages, product demonstration at trade fairs, offering free gifts, premium offers and organizing contests.

(iv) Reminder:
If target customers already have a positive attitude towards a firm’s product or service, then a reminder objective may be necessary. The reminder objective is necessary because the satisfied customers can be targets for competitors’ appeals. Well-established brands need to remind the customers about their presence in the market. For instance, ‘Raymond – the complete man’ campaign is designed to remind the customers.

(v) Expansion of Markets:
Successful ads results in expansion of the markets. A marketer may intend to expand markets from the local level to the regional level, from the regional level to the national level, and from the national level to the international level. For this purpose, the marketer may undertake various techniques of promotion.
=========================================

NUMBER 2
(2a) i. Control: Employers are typically in control of the work environment and have the authority to make decisions about how work is done. While Employees, on the other hand, are typically subject to the direction of their employer and must follow specific guidelines and procedures.

ii. Compensation: Employers are responsible for paying their employees for the work they perform. while employers are compensated for the value they create through their business activities.

(2b) [PICK ANY FOUR]
i. Perform assigned tasks
ii. Follow company policies
iii. Communicate effectively
iv. Maintain a positive attitude

i. Perform assigned tasks: Employees are responsible for performing the tasks assigned to them by their employer. This includes completing work in a timely and accurate manner, following established procedures and guidelines, and meeting performance expectations.

ii. Follow company policies: Employees are expected to follow the policies and procedures established by their employer. This includes adhering to safety guidelines, respecting the privacy of others, and using company resources responsibly.

iii. Communicate effectively: Employees must be able to communicate effectively with their coworkers, supervisors, and customers. This includes listening actively, asking questions when needed, and conveying information clearly and accurately.

iv. Maintain a positive attitude: Employees are expected to maintain a positive attitude and contribute to a positive work environment. This includes being respectful to others, taking initiative when appropriate, and working cooperatively with others to achieve common goals.
========================================

NUMBER 3
(3a) An insurance is a legal agreement between an insurer (insurance company) and an insured (individual), in which an insured receives financial protection from an insurer for the losses he may suffer under specific circumstances.

(3b) [PICK ANY FOUR AND EXPLAIN]
(i) Principle of Utmost Good Faith
(ii)Principle of Insurable Interest
(iii)Principle of Proximate Cause
(iv) Principle of Subrogation
(iv) Principle of Indemnity
(v) Principle of Indemnity
(vi) Principle of Contribution
(vii) Principle of Loss Minimisation

(i) Principle of Utmost Good Faith
This is a primary principle of insurance. According to this principle, you have to disclose all the information that is related to the risk, to the insurance company truthfully.

You must not hide any facts that can have an effect on the policy from the insurer. If some fact is disclosed later on, then your policy can be cancelled. On the other hand, the insurer must also disclose all the features of a life insurance policy.

(ii)Principle of Insurable Interest
According to this principle, you must have an insurable interest in the life that is insured. That is, you will suffer financially if the insured dies. You cannot buy a life insurance policy for a person on whom you have no insurable interest.

(iii)Principle of Proximate Cause
While calculating the claim for a loss, the proximate cause, i.e., the cause which is the closest and the main reason for a loss should be considered.
Though it is a vital factor in all types of insurance, this principle is not used in Life insurance.

(iv) Principle of Subrogation
This principle comes into play when a loss has occurred due to some other person/party and not the insured. In such a case, the insurance company has a legal right to reach that party for recovery.

(iv) Principle of Indemnity
The principle of indemnity states that the insurance will only cover you for the loss that has happened. The insurer will thoroughly inspect and calculate the losses. The main motive of this principle is to put you in the same position financially as you were before the loss. This principle, however, does not apply to life insurance and critical health policies.

(v) Principle of Indemnity
The principle of indemnity states that the insurance will only cover you for the loss that has happened. The insurer will thoroughly inspect and calculate the losses. The main motive of this principle is to put you in the same position financially as you were before the loss. This principle, however, does not apply to life insurance and critical health policies.

(vi) Principle of Contribution
According to the principle of contribution, if you have taken insurance from more than one insurer, both insurers will share the loss in the proportion of their respective coverage.

If one insurance company has paid in full, it has the right to approach other insurance companies to receive a proportionate amount.

(vii) Principle of Loss Minimisation
You must take all the necessary steps to limit the loss when it happens. You must take all the necessary precautions to prevent the loss even after purchasing the insurance. This is the principle of loss minimization.
============================================

NUMBER 4
(4a) (i) Niche market: Small businesses often cater to niche markets that larger businesses might overlook or not serve as effectively. By focusing on a particular customer base, small businesses are better able to provide the specialized services and products that their customers desire.
(ii) Customer service: Small businesses often prioritize in providing personalized services to their customers. By taking the time to understand each customer’s unique needs, small businesses are able to provide a higher quality of customer service.
(iii) Adaptability: Small businesses are usually more agile in their operations and can respond quickly to changing market conditions. This allows them to adjust their products and services to meet customer demand and stay competitive.
(iv) Staff motivation: Small businesses often have more motivated staff members because they are typically more invested in the success of the business. This creates a culture of collaboration and innovation that can help small businesses compete with larger ones.

(4b) (PICK ANY TWO)
(i) Size: Small business units tend to be smaller in size than large retail outlets.
(ii) Revenue: Small business units typically generate lower revenues than large retail outlets.
(iii) Inventory: Small business units usually carry less inventory than large retail outlets.
(iv) Customer service: Small business units often focus on providing personalized customer service that large retail outlets may not offer.
(v) Location: Small business units are often located in more local markets where large retail outlets are more likely to be found in shopping malls and other larger areas.

(4c)- small retail outlets-
(PICK ANY FOUR)
(i) Bakeries
(ii) Grocery stores
(iii) Jewelry stores
(iv) Clothing boutiques
(v) Bookstores
(vi) Home accessory shops

-large retail outlets-
(PICK ANY FOUR)
(i) Supermarkets
(ii) Department stores
(iii) Shopping malls
(iv) Electronic stores
(v) Pharmacies
(vi) Furniture stores
=========================================

NUMBER 5
(5a) A second-tier securities market, also known as a secondary market, is a platform where already issued securities, such as stocks or bonds, are bought and sold by investors. It is distinct from the primary market where new securities are initially offered for sale to the public.

(5b) (PICK ANY FOUR)
(i) Organizations must be registered with the regulatory body in their region.
(ii) Organizations must have satisfactory financial and accounting records and disclosure documents.
(iii) Organizations must be compliant with all applicable rules and regulations related to trading in the secondary market.
(iv) Organizations must pass a due diligence review by the regulatory body.
(v) Organizations must demonstrate a commitment to continuing disclosure obligations.
(vi) Organizations must provide a potentially liquid market for the security, meaning it must actively facilitate the buying and selling of the security.

(5c) (PICK ANY FOUR)
(i) Direct listing.
(ii) Reverse merger.
(iii) Reg-A+ IPO.
(iv) Self underwriting.
(v) Special acquisition company.
(vi) Over-the-counter Bulletin Board (OTCBB).
(vii) Pink sheets.
========================================

NUMBER 6
(6a) Economic grouping is an organization that encourages economic cooperation among its member countries.

(6b) [PICK ANY EIGHT]
(i) To encourage increased trade among member countries
(ii) To promote a wild range of industrial development
(iii) To promote a better allocation of resources
(iv) To promote a better mobility of factors of production
(v) To ensure future customs union
(vi) To facilitate infrastructural development among member countries
(vii) To promote economies of large scale production
(viii) To remove all forms of tariff and quotas among member states.
(ix) To harmonize a bargaining power/devices to a better prices of their agricultural products.
(x) To create a wild market for member countries
================================================

NUMBER 7
(7a) (PICK ANY FOUR)
(i) Commercial Banks
(ii) Central Banks
(iii) Mutual Funds
(v) Hedge Funds
(iv) Investment Banks
(v) Hedge Funds
(vi) Insurance Companies

(i) Commercial Banks: These institutions play a significant role in the money market by borrowing and lending money to individuals, businesses, and other institutions. They also provide various financial services such as checking accounts, savings accounts, and loans.

(ii) Central Banks: These institutions are responsible for controlling and regulating the money supply and setting interest rates in their respective countries. They also guide the economic and fiscal policies of their country.
(iii) Mutual Funds: These institutions provide investors with the option to diversify their investments by investing in a variety of different securities, such as stocks, bonds, and derivatives.
(iv) Investment Banks: These institutions help companies access capital markets by issuing new securities and providing a range of other services such as underwriting, merger advice, and asset management.
(v) Hedge Funds: These institutions use a variety of complex investment strategies to generate returns for investors.
(vi) Insurance Companies: These institutions manage the risks of individuals and businesses by providing insurance products such as life insurance, health insurance, and property insurance.

(7b) (PICK ANY TWO)
(i) Soft commodities are often perishable and are subject to seasonal demand swings, while hard commodities are generally non-perishable and less sensitive to seasonal demand variation.
(ii) Soft commodities are usually consumed before reaching the market, while hard commodities are consumed further down the production chain.
(iii) Soft commodities are mostly traded on futures exchanges, while hard commodities are mainly traded in over-the-counter (OTC) markets.
(iv) Soft commodities tend to have more volatile prices than hard commodities, since they are affected by factors such as weather patterns and crop yields.
(v) Soft commodities typically require more intensive management by producers, while hard commodities require less intensive management.
(vi) Soft commodities are more easily transported than hard commodities, which tend to be bulky and heavy.
===========================================

NUMBER 8
(8a) Customs and Excise Authority is an agency responsible for the collection of taxes on imported and exported goods. This authority is responsible for ensuring compliance with government regulations related to the import and export of goods. They also enforce laws related to the movement of goods across international borders.

(8b) ( PICK ANY 4 )
(i) Collecting Taxes
(ii) Enforcing Regulations
(iii) Preventing Smuggling
(iv) Protecting the Economy
(v) Facilitating Trade

(i) Collecting Taxes: The authority collects taxes on imported goods and ensures that the correct taxes are paid by importers. They also collect taxes on exported goods.
(ii) Enforcing Regulations: The authority enforces regulations related to imports and exports. This includes ensuring that goods meet the required standards and are safe for use.
(iii) Preventing Smuggling: Customs and Excise Authority works to prevent smuggling by inspecting goods at ports of entry and exit. They also work to identify and apprehend smugglers.
(iv) Protecting the Economy: Customs and Excise Authority helps protect the economy by preventing the importation of goods that could harm local industries. They also help to prevent the export of goods that are restricted or banned.
(v) Facilitating Trade: Customs and Excise Authority works to facilitate trade by ensuring that goods move smoothly across borders. They also help to reduce delays and facilitate the movement of goods.
======================================

NUMBER 9
(9) (i) Bond:- is a debt instrument that is issued by a borrower to an investor. When an investor purchases a bond, they are essentially lending money to the issuer (the borrower) for a fixed period of time, in exchange for regular interest payments and the return of the principal at the end of the term. Bonds are typically issued by corporations, municipalities, and governments to raise capital for various purposes, such as financing new projects, funding operations, or paying off existing debt.

(ii) Carrier :is a company that provides transportation services to move goods or people from one place to another. Carriers can be involved in various modes of transportation, such as air, sea, rail, or road transport. They are responsible for the safe and timely delivery of goods or passengers to their destination. Carriers can be divided into two main categories: passenger carriers and freight carriers.

(iii) Debenture: A debenture is a type of debt instrument that is issued by a company to raise capital from investors. When an investor purchases a debenture, they are essentially lending money to the company for a fixed period of time, in exchange for regular interest payments and the return of the principal at the end of the term. Debentures are typically unsecured, meaning that they are not backed by collateral, and are considered a higher-risk investment than secured debt instruments such as bonds.

(iv) Communication:-is the process of exchanging information, ideas, or thoughts between two or more people. Communication can take many forms, such as verbal, nonverbal, written, or visual, and can occur through various channels, such as face-to-face conversations, phone calls, emails, text messages, or social media. Effective communication is essential in all aspects of life, including personal relationships, business, education, and healthcare.

(v) Transportation: is the movement of people, goods, or services from one place to another. Transportation can take many forms, such as air, sea, rail, or road transport, and can be used for various purposes, such as commuting, trade, tourism, or emergency response. Transportation is an essential component of modern society, as it enables people to access goods and services, connect with others, and participate in economic activities.
============================================

COMMERCE QUESTION PAPER