List five aids to trade. (i).......... (ii).......... (iii).......... (iv).......... (v).......... (b) Give three differences between home trade and foreign trade. (c) State two functions of commerce. 8. Prepare a balance sheet from the following list of balances.

Here are the answers to your Business Studies questions:

7. a) List five aids to trade.
Aids to trade are services that help the buying and selling of goods and services run smoothly.

• i. Transport
• ii. Banking
• iii. Insurance
• iv. Warehousing
• v. Advertising i. Transport, ii. Banking, iii. Insurance, iv. Warehousing, v. Advertising

7. b) Give three differences between home trade and foreign trade.
Home trade happens within one country, while foreign trade happens between different countries.

Home Trade	Foreign Trade
i. Uses a single currency.	i. Involves multiple currencies.
ii. Operates under one legal system.	ii. Operates under different legal systems.
iii. Fewer customs barriers and tariffs.	iii. Involves customs duties and tariffs.
iv. Less complex documentation.	iv. Requires more complex documentation.
v. Generally lower risks.	v. Generally higher risks (e.g., exchange rate).
See table above for three differences.

7. c) State two functions of commerce.
Commerce includes all activities that help move goods from producers to consumers.

• i. It removes the barrier of place by providing transport.
• ii. It removes the barrier of time by providing warehousing.
• iii. It removes the barrier of finance by providing banking services.
• iv. It removes the barrier of risk by providing insurance. i. Removes the barrier of place (transport), ii. Removes the barrier of time (warehousing).

8. Prepare a balance sheet from the following list of balances.

Balance Sheet
As at [Date - not provided, so omitted]

Assets	Le	Le
Non-current Assets
Premises	1,000
Land	6,000
Total Non-current Assets		7,000
Current Assets
Debtors	3,500
Cash	1,000
Stock	1,000
Total Current Assets		5,500
TOTAL ASSETS		12,500
Capital and Liabilities
Owner's Equity
Capital	9,300
Add: Net Profit	700
Less: Drawings	(2,500)
Total Owner's Equity		7,500
Non-current Liabilities
Loan		1,000
Current Liabilities
Creditors	500
Bank Overdraft	3,500
Total Current Liabilities		4,000
TOTAL CAPITAL AND LIABILITIES		12,500

See balance sheet above.