Ordinary level 2025 North West regional mock commerce guide
Ordinary level 2025 North West regional mock commerce guide
Mark Guide Paper 2
1a) Name and explain the difference between a private and a public enterprise (8mks)
| A Private Enterprise | A Public Enterprise |
| -Owned by private individuals or shareholders -It is out to make profit -It is managed or controlled by BOD appointed shareholders -It is created by Registrar of company or company Act. -Profits are shared to shareholders as dividend -Capital is from sell of shares -Risk is borne by shareholders |
-Owned by the state/government -It is not profit making but provide essential goods and services. -It is managed or controlled by BOD appointed by the state. -It is created by an Act of Parliament or presidential decree. -Surpluses are use for the benefits of all citizens. -Capital is provided by the state (taxes). -Risk is borne by tax payers. |
(Any 4pts correct on either sides 1mk x 2 x4 = 8mks)
b) Explain any THREE internal sources of finance to a
public company (6mks).
– Contributions from shareholders
-Plough back of profit
– From provisions for depreciation
– Provisions for bad debts etc.
| (Any 3pts explained 2mks x 3 = | 6mks) |
| c) Outline any six reasons for the continual existence of | |
| small business in Cameroon -Small capital requirement |
(6mks) |
– Provision of door to door services.
– Low overhead cost
– Attractive low prices.
– Hard work and pride for ownership of business
– The rule, regulation and flexible manage policies.
-Quick decision making
-Flexible opening hours etc.
(Any six pts 1 mk each x 6 = 6mks)
2a) Define the following terms
i) Land
– It is a natural gift of nature
– It is geographically immobile
– Its reward is rent etc.
ii) Capital
– It is worth set aside for the production of
further worth.
– It is a man made factor of production.
– It’s reward is interest.
iii) Entrepreneur
– It is a managerial factor production
– It coordinates the other factors to produce a
good.
– Its reward is profit, dividend, royalty etc.
Any 2 pts each 2mks x 3 = 6mks).
b) Explain any THREE criteria of classifying an
enterprise in Cameroon ( 6mks).
By Activity
– Industrial : Primary, Secondary, Tertiary
– Commercial
– Service Enterprise.
By Location
– Local enterprise
– International enterprise
By ownership
– Private enterprise
– Public enterprise
– Para-statal enterprise
Type of product produced
