KWUN TONG GOVERNMENT SECONDARY SCHOOL
Half-yearly Examination 2003-2004
S.4 Commerce
Date: 15.1.2004 Max. Mark: 100
Time: 8:45 - 10:45am (2 hours only)
Answer ALL Questions. Put your answers on the Answer Sheets provided.
Section A: Multiple-choice questions (30 marks)
There are 20 questions in this section. Choose the best answer for each question.
1. Direct exchange of one product for another is known as
A. production.
B. barter.
C. localization of production.
D. specialization.
2. Which of the following is NOT an advantage of specialization?
A. It is easier to supervise the production process
B. Improvement in workers’ skill
C. Workers learn faster
D. Higher job satisfaction
3. The importance of the sector(s) has/have increased in Hong Kong over
the past 10 years.
A. primary
B. secondary
C. tertiary
D. secondary and tertiary
4. Which of the following is an example of aids to trade?
A. Insurance
B. Tourism
C. Fishing
D. Construction
5. Which of the following is NOT an advantage of e-commerce?
A. Consumers can shop at homes at any time
B. Production costs are lowered
C. Goods can be checked before purchase
D. A wider range of products is available for sale
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6. Distribution is the process by which goods pass from
A. manufacturers to wholesalers.
B. warehouses to shops.
C. retailers to consumers.
D. producers to consumers.
7. Which of the following is NOT a function of a warehouse?
A. A place for sorting, blending and packaging products
B. A place for breaking bulk
C. Keeping products in safe places
D. Raising the retail prices of products
8. Which of the following channels of distribution has been most likely adopted by those
large supermarkets in Hong Kong?
A. Producers → consumers
B. Producers → retailers → consumers
C. Producers → wholesalers → consumers
D. Producers → wholesalers → retailers → consumers
9. The market operated by the Vegetable Marketing Organization is an example of
A. a primary produce market.
B. a futures market.
C. a storage warehouse.
D. an industrial distributor.
10. Smaller number of middlemen in the channel of distribution can
(1) lower the product price
(2) shorten the distribution process
(3) improve the product quality
(4) raise the productivity
A. (1) and (3) only
B. (2) and (3) only
C. (1), (2) and (3) only
D. (1), (2) and (4) only
11. Retailers’ co-operatives are usually formed
A. to produce the goods by retailers themselves.
B. to aim at making a large profit.
C. to buy goods directly from wholesalers.
D. to buy goods in bulk at lower prices.
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12. Which of the following are functions of retailers?
(1) Storing large quantities of goods
(2) Providing producers with customers’ opinions
(3) Providing consumers with a wide range of choices
(4) Giving consumers credit facilities
A. (1) and (2) only
B. (2) and (4) only
C. (1), (3) and (4) only
D. (2), (3) and (4) only
13. Which one of the following is a characteristic of franchise in retailing?
A. Franchisees can obtain a wide variety of goods from different suppliers.
B. Franchisees are able to obtain managerial support from the franchisor.
C. Franchisors have to compensate the loss made by franchisees.
D. Franchisors allow each franchisee to carry out different promotion activities.
14. Superstores have become very popular in Hong Kong because
A. a wide range of goods at reasonable prices are on sale.
B. they sell luxury items only.
C. they provide personal services.
D. they are close to manufacturing centres.
15. Which of the following are modern trends in retailing?
(1) There are more and more franchised shops.
(2) The nature of retailing is changing considerably due to developments in technology.
(3) There is less competition because shops have grown larger in scale.
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
16. Which of the following are reasons for the existence of small shops in Hong Kong?
(1) They employ a large number of workers to serve customers.
(2) They are popular with customers who enjoy personal attention from shop assistants.
(3) Some customers prefer to purchase in small shops specializing in one product.
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
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17. Foreign trade is different from domestic trade because
(1) different currencies may be used for payment.
(2) longer distances are required for transportation.
(3) more profit will be gained.
(4) there may be import and export regulations.
A. (1) and (2) only
B. (3) and (4) only
C. (1), (2) and (4) only
D. (1), (2), (3) and (4)
18. Which of the following would increase Hong Kong’s invisible exports?
A. A US businessman joins a local tour in Hong Kong.
B. A Hong Kong family has a holiday trip in Canada.
C. A local firm uses the services of a local bank in Hong Kong.
D. A Hong Kong resident buys a car produced in Germany.
19. Which of the following are reasons of a country imposing restrictions on trade with
other countries?
(1) To retaliate against other countries for practicing trade protectionism
(2) To protect domestic industries
(3) To provide more low-priced goods for its own consumers
(4) To improve its balance of payments
A. (1), (2) and (3) only
B. (1), (2) and (4) only
C. (2), (3) and (4) only
D. (1), (3) and (4) only
20. Which one of the following is NOT a statutory body promoting foreign trade in Hong
Kong?
A. The Hong Kong Trade Development Council
B. The Chinese Manufacturers’ Association of Hong Kong
C. The Hong Kong Export Credit Insurance Corporation
D. The Federation of Hong Kong Industries
End of Section A
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Section B. (30 marks)
1. What is commerce? State three major reasons for the rapid development of Hong Kong
as a commercial centre. (5 marks)
2. Identify and explain the type of production in which the following people are engaged:
(a) A garment worker in a factory
(b) An accounting clerk in a business firm
(4 marks)
3. What are chain stores? State the major characteristics of chain stores. (6 marks)
4. Explain the reasons for large-scale retailing. (4 marks)
5. Briefly explain the problems Hong Kong is facing in external trade. (8 marks)
6. The following are Country A’s trade figures in 2002:
$ billion
Visible imports 8,540
Invisible imports 6,700
Visible exports 7,000
Invisible exports 7,200
Re-exports 5,000
Calculate the overall balance of trade. Show your workings. (3 marks)
End of Section B
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Section C. (40 marks)
Each question carries 20 marks, of which 17 marks will be rewarded for subject content, and
3 marks will be awarded for effective communication.
7. Mr Wong is the owner of a shop selling computer accessoriess in Golden Computer
Centre（ 高 登 電 腦 中 心 ） in Shamshuipo for many years.
(a) State and explain two reasons for the concentration of many computer shops in
Golden Computer Centre. (4 marks)
(b) Mr Wong usually obtains goods from several wholesalers. Explain three services
provided by wholesalers to Mr Wong. (9 marks)
(c) Explain two advantages of running an independent shop by Mr Wong. (4 marks)
8. Lewis is a famous jeans-making factory. Its owners plan to expand their business into
local retail industry and export their products to overseas.
(a) State the channels of distribution used by Lewis in local trade and external trade.
(2 marks)
(b) Suppose Lewis leases spaces in some department stores for setting up its own retail
outlets. Explain two advantages to Lewis and two advantages to those department
stores. (8 marks)
(c) Explain what kinds of services Lewis can obtain from the Trade and Industry
Department and the Hong Kong Export Credit Insurance Corporation, when Lewis
exports its products to other countries. (7 marks)
END OF PAPER
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