2019 - JAMB Commerce Past Questions & Answers - page 1

1

A partnership may be automatically dissolved due to the following factors except________

A

Court verdict

B

Joint decision

C

Admission of new partners

D

Bankruptcy of a partner

CORRECT OPTION: c

dissolution of a partnership generally occurs when one of the partners ceases to be a partner in the firm. Dissolution is distinct from the termination of a partnership and the "winding up" of partnership business. More.

2

One of the disadvantages of Sole Proprietorship is__________

A

It requires small operations

B

It involves small capital

C

It lacks specialization

D

Grants from government

CORRECT OPTION: c
3

In the formation of a united liability company, the following documents are prepared except_______

A

Memorandum of Association

B

Article of Association

C

Statement of Nominal Capita

D

Prospectus

CORRECT OPTION: d

A prospectus, in finance, is a disclosure document that describes a financial security for potential buyers. Wikipedia

4

The process of winding up or bringing a company to an end is________

A

Dissolution

B

Liquidation

C

Integrating

D

Merger

CORRECT OPTION: b

Liquidation is the process in accounting by which a company is brought to an end. The assets and property of the company are redistributed. Wikipedia

5

Use the following information to answer this question.

The following is a summary of the asset and liabilities of Ojo trading company as at 31st December, 2018

Initial Capital 5000
Net Profit 1000
Furniture 2000
Equipment 2900
Debtors 100
Stock 1000
Bank 500

 

From the above, calculate Current assets


 

A

1600

B

1060

C

1500

D

600

CORRECT OPTION: a
Current Assets     N
Debtors 100
Stock 1000
Bank 500
  1600

 

6

The following is a summary of the asset and liabilities of Ojo trading company as at 31st December, 2018

Initial Capital 5000
Net Profit 1000
Furniture 2000
Equipment 2900
Debtors 100
Stock 1000
Bank 500

 

From the above, calculate Fixed assets

 

A

6500

B

2000

C

4900

D

600

CORRECT OPTION: c
Fixed Assets     N
Furniture 2000
Equipment 2900
  4900

 

7

The following is a summary of the asset and liabilities of Ojo trading company as at 31st December, 2018

Initial Capital 5000
Net Profit 1000
Furniture 2000
Equipment 2900
Debtors 100
Stock 1000
Bank 500

 

From the above, calculate Current liabilities

A

100

B

6000

C

600

D

3000

CORRECT OPTION: c

Assets = Capital + liabilities
Hence,

Liabilities = Assets - Capital
Liabilities = (4900 + 1600) - (500 + 1000) = 6500 - 6000
⇒ ₦600

8

In a law of contract, what is given in exchange for a promise to perform is_____

A

offer

B

acceptance

C

warranty

D

consideration

CORRECT OPTION: d

Consideration is a benefit which must be bargained for between the parties and is the essential reason for a party entering into a contract. Consideration is one of the valid element of a contract.

9

In Nigeria, it is mandatory for all business enterprises to be registered with the________

A

Government

B

Corporate Affairs Commission

C

Agent

D

Enterprise

CORRECT OPTION: b

All businesses operating in Nigeria has to be registered with the Corporate Affairs Commission. If successfully incorporated, the business is issued a certificate of incorporation.

10

All but one does not provide an Indirect Service?

A

Custom Officers

B

Family Doctors

C

Civil Servants

D

Law Makers

CORRECT OPTION: a

Indirect service refers to services rendered to the general public but they are not paid for by the members of the public directly. The government will pay for the services from taxes and levies paid by the public.

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