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"Business Units and Financing Business" question number distribution across years
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JAMB questions for "Commerce :: Business Units and Financing Business"
Q1
One of the facilities enjoyed by a current account holder is
A
a dividend
B
a bonus
C
an overdraft
D
interest on deposits
E
Q2
The principle of insurance which entitles an insurance company to take any advantage due to the insured after full indemnity is
A
contributed
B
subrogation
C
proximate cause
D
utmost good faith
E
Q3
The most important reason for the existence business is to
A
prevent the occurrence of any loss
B
spread losses to all covered participants
C
provide for the replacement of facilities
D
encourage individuals to save
E
Q4
In a public limited liability company, planning is carried out by
A
the chairman of the board
B
the board of directors
C
shareholders
D
employees
E
Q5
One of the major problems of a sole proprietor is sourcing for
A
raw materials
B
labour
C
machineries
D
funds
E
Q6
Partnerships are most effectives where
A
the partners are family friends
B
professionals are involved
C
members can easily raise enough capital
D
government regulations are favorable
E
Q7
The type of partnership in which all partners are jointly liable in bearing risks is
A
limited partnership
B
partnership-at-will
C
ordinary partnership
D
industrial partnership
E
Q8
The circulating capital of a business enterprise is classified into
A
cash, work-in-progress and debtors
B
cash, vehicles, land and buildings
C
debtors, stocks of raw materials and fittings
D
pre-payments, debtors and equipment
E
Q9
Determine the value of Ojo's fixed assets
A
₦14 450
B
₦13 450
C
₦13 005
D
₦12 005
E
Q10
What is Ojo's working capital?
A
₦2 150
B
₦1 950
C
₦1 800
D
₦1 150
E
Q11
If a firm has a turnover of ₦50 000 and the cost of goods sold is ₦40 000, what is the percentage of gross profit on sale?
A
30.5%
B
20.5%
C
20.0%
D
10.0%
E
Q12
The cheapest source of funds available to a company is through
A
the sale of share
B
retained profits
C
the sale of bonds
D
leasing financing
E
Q13
The components of capital employed in a business are
A
owners' equity and long-term debts
B
total assets and current liabilities
C
share capital and long term debts
D
share capital and current liabilities
E
Q14
What is the company's authorized share capital?
A
N2 500 000
B
4 000 000
C
5 000 000
D
7 500 000
E
Q15
Determine the company's reserve share capital
A
500 000
B
1 000 000
C
1 500 000
D
2 000 000
E
Q16
The account maintained with a commercial bank for the purpose of foreign exchange transaction is the
A
foreign account
B
international account
C
domiciliary account
D
foreign reserves account
E
Q17
A source of capital that has both elements of debt and equity is a
A
debenture
B
warrant
C
loan
D
share
E
Q18
The resources which are necessary for business development include
A
manufacturing, materials, mentors and money
B
merchant, materials, mentors and money
C
man, money, materials and machines
D
machines, manufacturing, money and materials
E
Q19
Determine the owners' equity
A
₦25,000,000
B
₦20,000,000
C
₦42,000,000
D
₦38,000,000
E
Q20
What is the net working capital?
A
₦ 6,000,000
B
₦6,000,000
C
₦11,000,000
D
₦16,000,000
E
Q21
Which of the following is a risk-free security?
A
Treasury bills
B
Debenture
C
Ordinary share
D
Preference share
E
Q22
A new company requiring a large amount of equity finance may source funds from the
A
commercial banks
B
capital market
C
central bank
D
money market
E
Q23
The selling of new shares to existing shareholders is referred to as
A
public issue
B
offer for sale
C
bonus issue
D
right issue
E
Q24
A memorandum of Association is applicable to
A
joint-stock company
B
public corporation
C
partnership
D
sole trader
E
Q25
A major function of an entrepreneur is
A
motivating employees
B
encouraging competition
C
decision-making
D
human-resource training
E
Q26
A document which advertises the shares of a company is known as a
A
memorandum of satisfaction
B
dividend warrant
C
prospectus
D
deed
E
Q27
A feature common to privatization and commercialization is
A
profit-making
B
price increases
C
credit sales
D
market expansion
E
Q28
The difference between a private and pubic limited liability company is that the former
A
pays higher salaries to its managers
B
is unable to declare and pay dividend
C
is unable to offer shares to the public
D
has a higher number of shareholers
E
Q29
A financial institution which uses its capital strength to acquire controlling interests in other firms can be regarded as a
A
cartel
B
trust
C
subsidiary company
D
holding company
E
Q30
A shop which consists of many stores trading under a single roof and which stocks varieties of goods with each unit having its own head is a
A
departmental store
B
supermarket
C
superstore
D
multiple
E
Q31
Which of the following is a development bank in Nigeria?
A
First Bank Plc.
B
Federal Mortgage Bank
C
Union Bank Plc
D
First City Monument Bank
E
Q32
A bond which attracts only interest but leaves the capital unpaid is referred to as
A
long-term loan
B
a development bond
C
an irredeemable bond
D
redeemable bond
E
Q33
Capital to a business is technically
A
an asset
B
a profit
C
an expense
D
liability
E
Q34
The main requirement for admission to the second-tier securities market is the
A
creation of a good atmosphere for growth and development
B
disclosure of all trading activities
C
guaranteeing of dividends to shareholders
D
provision of a three-year record
E
Q35
Trading on the stock exchange in anticipation of price change in the market value of shares is
A
expectation
B
forecasting
C
projection
D
speculation
E
Q36
A public company has 2,000,000 ordinary shares of 50k each and offers 50% for subscription at N2 per share. If the shares were fully subscribed, calculate the issued capital.
A
N2,000,000
B
N4,000,000
C
N500,000
D
N1,000,000
E
Q37
What is the capital employed?
A
N300,000
B
N170,000
C
N340,000
D
N200,000
E
Q38
The total sum for financing short-term protects is
A
N30,000
B
N40,000
C
N70,000
D
N200,000
E
Q39
A current account is beneficiary to its holder as
A
customers cannot withdraw frequently
B
cheques can be issued to anybody
C
it is only the holder that can make withdrawals
D
allow customers the use of passbooks
E
Q40
The Lack Chad Basin Commission was formed in
A
1974
B
1984
C
1954
D
1964
E
Q41
A major disadvantage of the privatization policy is that
A
The economy would be private sector-led
B
citizens would benefit less from government
C
more money would be brought into circulation
D
government would lose control of the economy
E
Q42
Commercialization of government corporations brings about an in the level of
A
money supply in the economy
B
distrust among business operators
C
competition among business operators
D
social responsibility
E
Q43
One of the disadvantages of sole proprietorship is
A
secrecy of annual reports
B
pride of ownership
C
limited liability
D
unlimited liability
E
Q44
An acquired firm in a merger will always receive a
A
premium
B
grant
C
share
D
discount
E
Q45
The Nigerian Telecommunications Limited is a
A
jointly owned company
B
public corporation
C
privately owned company
D
public company
E
Q46
Wholesalers can be divided into
A
sales agents and brokers
B
full service wholesalers and merchant wholesalers
C
cooperative wholesale society and limited service wholesalers
D
merchant wholesalers and agent middlemen
E
Q47
From which of the following sources can partnerships increase their capital?
A
Admission of a new partner
B
Sale of shares
C
Discharge of a mortgage
D
Grants from relations
E
Q48
The excess of the assets over the liabilities of a business is called
A
working capital
B
net worth
C
capital employed
D
initial capital
E
Q49
The fixed and current assets of a business are called
A
called-up capital
B
capital employed
C
paid-up capital
D
authorized capital
E
Q50
To increase the supply of money in a country, the central bank has to
A
reduce cash ratio
B
sell securities in the open market
C
call on special deposits
D
raise cash ratio
E
Q51
A good financial instrument which serves as a hedge against inflation is
A
a bond
B
a share
C
an option
D
a warrant
E
Q52
Given: ₦ Sales 15,000 Opening stock 5,600 Purchases 9,700 Closing stock 4,400 Gross profit 4,500 Net profit 2,000 From the data above, calculate the rate of turnover
A
3.50 times
B
3.00 times
C
2.00 times
D
2.18 times
E
Q53
Authorized share capital is also known as
A
paid-up
B
share capital
C
registered share capital
D
issued
E
Q54
The acronym PLC is used to identify a
A
private company limited by share
B
public company limited by share
C
company limited by guarantee
D
company limited by shares
E
Q55
The merger of a textile mill, a cement company and a tannery is referred to as
A
vertical merger
B
conglomerate merger
C
horizontal merger
D
E
Q56
Sources of finance to a business include personal savings, shares, debentures
A
money from political parties
B
central bank loans
C
loans from IMF
D
bank overdrafts
E
Q57
The shares of a company listed on the stock exchange for sales are referred to as
A
deferred shares
B
quoted shares
C
registered shares
D
issued shares
E
Q58
A group of assets which a business acquires with the intention of reselling them are referred to as
A
fixed assets
B
intangible assets
C
investment assets
D
current assets
E
Q59
Charges for loans paid by commercial banks to the Central Bank of Nigeria are called
A
interest rates
B
bank charges
C
credit charges
D
bank rates
E
Q60
The current highest decision-making body on privatization and commercialization of public enterprises in Nigeria is the
A
Nigeria Investment Promotion Commission
B
Bureau of Public Enterprises
C
National Council on Privatization
D
Securities and Exchange Commission
E