COMMERCE 7100/2

Oct/Nov 09

5Bing Ltd is a public limited company which employs a large number of people. It operates a wholesale business serving small-scale retailers in several large cities.

(a) Explain two characteristics of a public limited company. [4]

(b) Bing Ltd offers credit to its customers (the small-scale retailers). Explain why Bing Ltd offers credit to them. [4]

(c) Name and explain three other services Bing Ltd might offer to these small-scale retailers. [6]

(d) Bing Ltd has insured against the following business risks:PUBLIC LIABILITY EMPLOYER’S LIABILITY CONSEQUENTIAL LOSSIs cover for these business risks needed by Bing Ltd? Give reasons for your answer. [6]

Oct/Nov 08

May/June 09

2 Clare wishes to buy a home cinema system costing $2500 from a retailer. She could pay for it by credit card or on hire purchase terms.

(a) Explain what is meant by the term credit. [2]

(b) What benefits may the retailer gain from selling to customers on credit? [3]

(c) Which form of credit – credit card or hire purchase - would you recommend Clare touse? Give reasons for your choice. [6]

(d) (i) Explain why Clare should insure her home cinema system. [3]

(ii) Name two risks against which she should insure the home cinema system. [2]

(e) Explain why Clare might need some consumer protection. [4]

MARKING SCHEMES

Oct/Nov 09

Oct/Nov 08

May/June 09

EXAMINER REPORTS

MAY/JUNE 09

OCT/NOV 08