2

1 Fig. 1.1 shows the share of mobile retailing sales as a percentage (%) of all online sales in a
country for 2017–2021.

60%
Cambridge O Level 53.9%
50% 49.2%
44.7%
39.6%
40%
34.5%
share of all
online sales 30%

20%
* 5 1 6 1 1 4 5 0 7 8 *

COMMERCE 7100/22
10%
Paper 2 Written May/June 2023
2 hours 0%
2017 2018 2019 2020 2021
You must answer on the question paper. year

No additional materials are needed.

Fig. 1.1 Mobile retailing sales

INSTRUCTIONS Use Fig. 1.1 to help you answer the following questions.
● Answer all questions.
● Use a black or dark blue pen. (a) (i) Define mobile retailing.
● Write your name, centre number and candidate number in the boxes at the top of the page.
● Write your answer to each question in the space provided. ...........................................................................................................................................
● Do not use an erasable pen or correction fluid.
● Do not write on any bar codes. ...........................................................................................................................................
● You may use a calculator.
...........................................................................................................................................

INFORMATION ..................................................................................................................................... [2]

● The total mark for this paper is 80.
● The number of marks for each question or part question is shown in brackets [ ]. (ii) Calculate the increase in the share of mobile retailing sales from 2017 to 2021.

...........................................................................................................................................

..................................................................................................................................... [1]

This document has 12 pages. Any blank pages are indicated.

DC (KN/FC) 314854/2
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(b) Explain two methods of payment which customers use for online purchases. 2 Adam and Bella have set up a partnership to make and deliver boxes of ready meals. Adam
will make the meals and Bella will deliver the meals in a van. They have drawn up a deed of
1. ............................................................................................................................................... partnership.

................................................................................................................................................... (a) Suggest two reasons Adam and Bella had for starting their business as a partnership.

................................................................................................................................................... 1. ...............................................................................................................................................

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2. ............................................................................................................................................... 2. ...............................................................................................................................................

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[2]
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(b) (i) State one item of information usually included in a deed of partnership.
...................................................................................................................................................
[4] ...........................................................................................................................................
(c) Circle the correct answer to complete each of the following sentences. ..................................................................................................................................... [1]
As online sales increase, distribution costs (ii) Explain one reason why it is important for Adam and Bella to draw up a deed of
partnership.
decrease OR increase.
...........................................................................................................................................
Consumers are more likely to be attracted to a website by
...........................................................................................................................................
order tracking OR free returns.
[2] ...........................................................................................................................................
(d) Discuss the importance of warehouses to online retailers. Give reasons for your answer. ...........................................................................................................................................
................................................................................................................................................... ...........................................................................................................................................
................................................................................................................................................... ..................................................................................................................................... [3]
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(c) Do you think it is a good idea for Adam and Bella to specialise their roles within the
partnership? Give reasons for your answer.
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[Total: 15]
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(d) Each box of ready meals costs $15 and there will be a mark-up of 40%. 3 Kelvin Peng applied successfully for a VB Games store card six months ago, after considering the
advantages offered by using the card. Fig. 3.1 shows a store card statement from VB Games to
Calculate the selling price of each box of ready meals. Show your working. Kelvin Peng that he received in the post.

...................................................................................................................................................
VB GAMES STORE CARD STATEMENT
...................................................................................................................................................
Kelvin Peng
...................................................................................................................................................
CREDIT LIMIT $700.00
...................................................................................................................................................

...................................................................................................................................................
Purchases and Payments $ $
............................................................................................................................................. [3]
10/03/2023 VB Games, Klang store 24.40
(e) Discuss whether Adam and Bella should use local newspapers or the sides of their van to
advertise. Which would you recommend? Give reasons for your answer. 12/03/2023 VB Games, Ipoh store 56.30

................................................................................................................................................... 15/03/2023 VB Games, Padawan store 143.30

................................................................................................................................................... 18/03/2023 Payment at Klang store 212.00

................................................................................................................................................... Present balance (i) ................


...................................................................................................................................................

................................................................................................................................................... Available to spend (ii) ................

................................................................................................................................................... Minimum payment due by 30/04/2023 5.00

...................................................................................................................................................
Fig. 3.1 Store card statement
...................................................................................................................................................
Use Fig. 3.1 to help you answer the following questions.
...................................................................................................................................................
(a) Complete (i) and (ii) in Fig. 3.1. [2]
...................................................................................................................................................
(b) Explain how Kelvin will be affected if he does not pay the minimum payment on time.
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[Total: 20]

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(c) Is the postal service the best method for Kelvin to receive store card statements from 4 Freya is interested in exporting recycled laptops. She attended a trade fair to find out about the
VB Games? Give reasons for your answer. commercial opportunities and risks experienced by exporters.

................................................................................................................................................... (a) Define exports.

................................................................................................................................................... ...................................................................................................................................................

................................................................................................................................................... ...................................................................................................................................................

................................................................................................................................................... ...................................................................................................................................................

................................................................................................................................................... ............................................................................................................................................. [2]

............................................................................................................................................. [3] (b) Do you think exporting recycled laptops is a good commercial opportunity for Freya? Give
reasons for your answer.
(d) Kelvin wants to buy an expensive guitar. He can use a loan or an overdraft to pay for the
guitar. Discuss both options. Which would you recommend? Give reasons for your answer. ...................................................................................................................................................

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................................................................................................................................................... (c) Explain two ways that customs authorities can affect Freya’s trade.

................................................................................................................................................... 1. ...............................................................................................................................................

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................................................................................................................................................... 2. ...............................................................................................................................................

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[4]
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[Total: 15]

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(d) Discuss how important insurance will be for Freya if she exports laptops. Give reasons for 5 Fig. 5.1 shows the supply chain for a car manufacturer that receives vehicle components into its
your answer. factory from international component suppliers.

...................................................................................................................................................
Car manufacturer’s factory
...................................................................................................................................................

...................................................................................................................................................
Freight forwarder 1 Freight forwarder 2 Freight forwarder 3
...................................................................................................................................................

...................................................................................................................................................
Shipping company 1 Shipping company 2 Shipping company 3
...................................................................................................................................................

...................................................................................................................................................

................................................................................................................................................... International component suppliers

...................................................................................................................................................
Fig. 5.1 supply chain for a car manufacturer
...................................................................................................................................................
Use Fig. 5.1 to help you answer the following questions.
...................................................................................................................................................
(a) Explain what is meant by a factory.
............................................................................................................................................. [6]
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[Total: 15]
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...................................................................................................................................................

............................................................................................................................................. [2]

(b) State two services provided by freight forwarders.

1. ...............................................................................................................................................

...................................................................................................................................................

2. ...............................................................................................................................................

...................................................................................................................................................
[2]

(c) Explain one reason why shipping companies often use more than one freight forwarder.

...................................................................................................................................................

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...................................................................................................................................................

............................................................................................................................................. [2]

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(d) Which of these statements about transport documents are true and which are false? BLANK PAGE

Tick (3) true or false in the correct column.

TRUE FALSE

A bill of lading is a receipt for goods shipped.

An air waybill is a document of title.

A consignment note is a delivery note used by freight
forwarders.
[3]

(e) Evaluate the importance to manufacturers of selling through wholesalers. Give reasons for
your answer.

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............................................................................................................................................. [6]

[Total: 15]

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