1995 - JAMB Commerce Past Questions and Answers - page 4
31
If a partnership deed is silent on how profits are to be shared, partners share profits
A
in the ratio of the value of business secured by each partner for the partnership
B
in the ratio of partner capital contributions
C
in an equal proportion irrespective of partners's capital contributons
D
according to duties performed by each partner
correct option: c
Users' Answers & Comments32
Which of the following information is contained in the Articles of Association of a limited liability company?
A
Rights and obligations of directors
B
Objectives of the company
C
Amount of share capital
D
Limitation of liability of shareholders.
correct option: a
Users' Answers & Comments33
The merger of two companies producing the same type of products is an example of
A
vertical integration
B
horizontal integration
C
lateral merger
D
an acquisition
correct option: b
Users' Answers & Comments34
One of the implications of the incorporation of a company is that
A
it is more difficult for the company to raise loans
B
the company can sue but cannot be sued
C
the company's property becomes distinguished from that of its members
D
its members become liable for all the debts of the company
correct option: c
Users' Answers & Comments35
The main advantage of a sole trader is the freedom to
A
employ anyone he likes
B
seek advice from any source
C
take quick decisions
D
plough all the profits back into the business
correct option: c
Users' Answers & Comments36
In the case of a voluntary liquidation of a business the receivers is appointed by the by the
A
creditors
B
debtors
C
directors
D
shareholders
correct option: a
Users' Answers & Comments37
When a company uses more of loans than equity to finance its business, the company is said to be
A
bankrupt
B
solvent
C
highly geared
D
in a strong liquid position
correct option: c
Users' Answers & Comments38
The nominal value of a share as specified in the Memorandum of Association and the share certificate is the
A
discounted value
B
stock value
C
face value
D
par value
correct option: c
Users' Answers & Comments39
A public limited company can raise long-term loans through
A
the capital market
B
the money market
C
bank overdrafts
D
discount houses
correct option: a
Users' Answers & Comments40
Factoring is a trade debt term used when the agent buys all the trade debts of the
A
importers
B
exporters
C
nation
D
customers
correct option: b
Users' Answers & Comments