UNIVERSITY OF MALTA
SEC SECONDARY EDUCATION CERTIFICATE
COMMERCE
May 2007
EXAMINERS’ REPORT*
MATRICULATION AND SECONDARY EDUCATION
CERTIFICATE EXAMINATIONS’ BOARD
*[NOTE: The following is a summary of the examiners’ full report.
The original can be consulted at the Matsec Office.]
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SEC COMMERCE
May 2007 Session
Examiner’s Report
Statistics
Table 1: Distribution of grades for SEC Commerce − May 2007 session
Grade
1
2
3
4
5
6
7
1
0
5
1
1
I+IIA
−
−
0
0
2
0
I+IIB
−
−
−
1
0
5
1
1
2
0
Total
6.67
0.00
33.33
6.67
6.67
13.33
0.00
%
U
Abs
0
1
1
6.67
1
3
4
26.67
Total
9
6
15
100.00
A total of 15 candidates – the lowest number ever – applied to sit for the examination in 2008: nine entered
for Paper IIA, of whom one was absent, and six entered for Paper IIB with three absentees. The distribution
of grades was not inferior to that of previous years.
The Assessment Objectives of SEC Commerce are clearly stated in the syllabus. The questions in all Papers
aimed to achieve a balance between recalling facts and principles, using commercial terminology and
performing simple calculations, applying knowledge to particular commercial situations, understanding the
purposes and functions of commercial activities and analysing data and situations whilst making reasoned
arguments and drawing conclusions.
Although the syllabus states that Paper I is a core paper consisting of a number of compulsory questions
covering various areas of the syllabus, it was noted that a high percentage of those taking the exam were
only familiar with about seventy per cent of the syllabus content, with certain topics not being covered at
all.
One needs to emphasise that candidates should be advised not to just brush over certain details as if they do
not exist and hope to do well by studying only the main sections of the syllabus content. The two papers are
set to cover all sections of the syllabus.
Students should be guided to look up information about Maltese commercial practice through project work,
visits and other similar methods. Searching the internet would be a good idea as most of the information
required about the Chamber of Commerce, Commercial Banks, The Central Bank of Malta, The Stock
Exchange, MFSC, the Malta Maritime Authority, etc. is there waiting to be downloaded and read.
Paper I
Question 1: This question was, in general, well answered by most candidates. However, in part (a) most of
them only managed to say that the purpose is to inform and omitted the fact that another important purpose
is to convince the public to buy. In part (b), most candidates said solely that babies are cute and attract the
attention of the public but failed to state that advertisers use babies to suggest softness and gentleness,
especially in adverts connected with fabric conditioners.
Whilst sections (c) and (e) were satisfactorily answered, the majority of candidates failed to mention the
four principles of insurance required in section (d) and also failed to state the reason for offering a cash
discount, both of which are major topics in commerce.
Question 2: This was another question which in general was well tackled by the majority of candidates.
The areas which were below expectations where those in which candidates had to explain the terms
securities, interim and fixed [(b)(i), (b)(v) and (b)(vi)].
Several candidates found great difficulty in answering parts (a) and (c)(ii) and several students made
mathematical mistakes in answering section (d).
Question 3: The ratios section was very well answered by most candidates but sections (b) and (f)
produced very weak responses. Very few knew that turnover is the technical term referring to sales and that
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assets and liabilities provide the totals of the balance sheet. (N.B. capital employed was accepted as a valid
answer).
In section (c) most candidates identified some of the disadvantages of a sole trader but very few managed
to identify all the documents used.
Question 4: Although recent examination papers gave prominence to EU matters, most examinees still fail
to keep abreast with current developments in this area. Only a couple of students were aware of the latest
countries that joined the EU and the one which joined the Euro Zone. One has to add that most candidates
knew when Malta is going to join the Euro Zone.
Parts (c) and (d) were dealt with confidently and examinees managed to clearly differentiate between tariffs
and quotas.
This cannot be said for section (e) where practically all candidates gave an incorrect answer to parts (i)
treasury bills and (ii) crossed cheque. Only 50% managed to give a satisfactory answer to parts (iii) bank
statement, (iv) standing order, and (vii) public corporations while 30% answered part (vi) franchising
correctly. Previous reports had drawn attention to these topics.
PAPER IIA
Students were asked to attempt four questions out of seven set. This table shows the distribution of
questions chosen and average marks attained out of 25 per question.
Table 2
Question number
Respondents
Average mark
1
6
14.4
2
8
16.3
3
4
12.0
4
1
20.0
5
4
11.0
6
8
15.5
7
1
9.0
General Comments: Of the eight scripts presented, one was exceptional (with the candidate scoring 20 or
more out of 25 on every question attempted), four were average, two obtained a pass grade, and one was a
failure. One candidate was absent from all papers.
Question 1: (a) Whilst the question required students to state what part commerce plays in production, only
one actually made any reference to the fact that for products to reach consumers on time, safely and their
final destination, activities like transport, insurance and finance, played a vital role.
(b) Except for one student who attempted this question, the others were able to spell out the main
advantages and disadvantages of specialization.
(c) The majority found serious problems in explaining how and to what extent recent technological
improvements in communications benefited the general public and commerce.
It is important that our students are not only taught the main points but shown the applicability of all
concepts being discussed.
Question 2: The majority of those who attempted this question tackled well all sections. Several good
reasons were given as to why many individuals wish to start up their own business, why so many others
failed and which personal qualities are necessary to make the business a success.
Many respondents did explain what a successful sole trader can gain by converting his business into a
private or public limited company, but marks were lost because they completely discarded mentioning the
disadvantages involved in making such a move.
Few found any problems in bringing out the difference between public corporations and public limited
liability companies.
Question 3: Half the examinees attempted this question but only one gave an overall creditable answer.
Once again, the poorest section was that which dealt with the work of the Malta Stock Exchange and its
importance to industry and government. In 2002 we had made a similar comment on this topic.
Question 4: Why this question was shunned by most students requires further analysis since it was based
on a fundamental area in the commerce syllabus, i.e. the main documents used in an ordinary trading
transaction such as the order, invoice, debit note, the statement and the receipt, what a buyer would do on
receiving the statement from his supplier and the drafting of a cheque. Despite being the least popular
question, the mark attained was above the average.
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Question 5: This hybrid question required knowledge on location decisions, the advantages of branding of
goods and how the central Bank of Malta could influence the credit policies of the commercial banks.
Most marks allotted to the last topic were lost as students had no idea of the monetary tools at the disposal
of the Central Bank of Malta.
Question 6: This was a popular question dealing with the role played by wholesalers in the ‘chain of
commerce’, and the advantages and disadvantages of privatisation. However, more attention needs to be
given to the various methods other than the cheque system that traders can use to settle their debts with
their creditors.
Question 7: Attempted by only one student who was not even able to distinguish between more than three
of the items listed, reflecting lack of preparation across a wide spectrum of the syllabus.
Topics tackled well were ‘debentures, ordinary and preference shares’ and ‘branding, informative
advertising and persuasive advertising’.
Final Comment: The standard shown this year was not much different from that of previous years and this
is reflected in the lower percentage of students getting the top grades. Teachers and students should realise
that Commerce is not an easy option and a fair share of reading around the whole syllabus is required for an
adequate pass mark.
The Chairperson
Board of Examiners
July 2007
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