2015 - JAMB Commerce Past Questions and Answers - page 4

31
The measure of independence available to the individual business units that come together is the main difference between
A
vertical and horizontal integration
B
Mergers and Acquisition
C
Consortium and imagination
D
Trust and Cartel
correct option: b
in merger and acquisition the firms coming together are independent of one another as is not correct because they are types of merge.
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32
In the permanent storage device, DASD means
A
Data Access Systems Device
B
Direct Access Systems Device
C
Data Access Storage Device
D
Direct Access Storage Device
correct option: c
Option C is the correct answer because it is a magnetic storage unit, in which the access mechanism and storage medium can be positioned directly at the addresses sought to read or write specific data items.
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33
The development of commercial activate in Nigeria was harnessed by
A
A good storage system
B
Availability of market
C
Increase in production
D
Activities
correct option: a
Is good storage system makes it possible for goods produced ahead of time to be stored until they are needed.
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34
The forum for the selling and buying of securities of small and medium companies is called.
A
Securities and Exchange Commission
B
Second tier Security Market
C
Foreign exchange Market
D
Second tier foreign Exchange market
correct option: b
it is a market for buying and selling shares of small and medium scale companies,
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35
The external environmental factors that affect a business cooperation are
A
Economic, Social and legal
B
Political, Culture and Labour
C
Competition, Labour and Political
D
Competition, Industry and Product.
correct option: a
these elements affect the operation of business eternally factor which can affect the operations of the business.
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36
The difference between a private are public limited liability company is that the former
A
Is unable to declare and pay dividend.
B
Has a higher number of share holder
C
Is unable to offer shares to the public.
D
pays higher salaries to its member
correct option: c
the former does allow members of the public to subscribe to its shares.
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37
A type of long-term loan granted to companies with fixed interest rate as well as with redeemable and irredeemable features is referred to as projects.
A
debenture
B
a bond
C
a term loan
D
an overdraft
correct option: a
it is a debenture that is grow under a seal by company in acknowledgement of a debit undertaking to repay the stated amount or sum on or before a certain date and to pay a fixed rate of interest. There are redeemable and irredeemable debenture
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38
The circulating capital of a business enterprise is classified into
A
Cash, work-in-progress and debtors
B
Cash, Vehicles, land and building
C
debtors, stocks of raw materials and fitting
D
Prepayments, debtors and equipment
correct option: a
circulating capital is the amount of many used for day-to-day running of the business. It is the capital available to a firm for general purpose after current liabilities have been deducted. It is the excess of current liabilities over the current liabilities
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39
Use the information below to answer this question.

Mammy Plc, whose nominal capital is made up of 5,000,000 ordinary shares at 50K each, decide to offer 80% of it to the public and realized only 50% of the amount due.

what is the company authorized share authorized share capital?
A
N4,000,000
B
N5,000,000
C
N7,500,000
D
N2,500,000
correct option: d
From the calculation made we arrived at the answer and using the formula.

Nominal capital is the same as authorized x capital

The price per share is 50K

∴ Authorized share capital

=N5000000 x 0.50K

= N2,500,000
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40
A bond which attracts interest but leaves the capital repaid is referred to as
A
A redeemable bond
B
An irredeemable bond
C
A development bond
D
A long-term loan
correct option: b
the bond is per petrol, which is until death. The issuing authority or entity pays a specific interest rate periodically but provides no data on when the principal will be returned.
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