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"Business Organizations" question number distribution across years
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JAMB questions for "Economics :: Business Organizations"
Q1
The downturn in the price of shares on stock markets is to highlight of
A
efficient allocation of resources
B
the regulatory nature of the market
C
the invisible hand
D
consumer rationality
E
Q2
The maximum number of shareholders for a limited liability company is
A
twenty
B
seven
C
five
D
infinte
E
Q3
The major problem confronting a sole proprietor is
A
high level of risk
B
limited expertise
C
limited source of capital
D
high taxation
E
Q4
A public liability company is run on a daily basis by
A
the chief executive
B
the shareholders
C
the board of directors
D
financial consultants
E
Q5
The economic policy of privatization came up as a result of the poor performance of
A
commercial banks
B
small-scale business
C
public enterprises
D
private enterprises
E
Q6
Joint-stock companies can rise funds from size of its
A
the money market
B
the capital market
C
various sources
D
government
E
Q7
The minimum number of shareholders for a joint-stock company is
A
7
B
4
C
3
D
2
E
Q8
The survival of a partnership depends on
A
the goodwill of the partners
B
political stability
C
access to finance
D
the managerial ability of the partners
E
Q9
A firm incurs short-run costs when
A
operation is at its later stages
B
some inputs cannot be varied
C
it cannot increase prices
D
operation is at its early stages
E
Q10
A characteristic common to partnership and sole proprietorship is
A
limited liability
B
unlimited liability
C
accessibility to loans
D
transferability of shares
E
Q11
Business organization in which the owners, personal property may be forfeited in the event of bankruptcy are
A
partnerships and limited liability companies
B
partnerships and sole proprietorship
C
cooperatives and limited liability companies
D
corporations and sole proprietorships
E
Q12
The number of shareholders in a private limited liability company ranges from
A
two to twenty
B
two to fifty
C
two to seven
D
two to three
E
Q13
Statutory organisations usually established by Acts of Parliament are called
A
public corporations
B
cooperative societies
C
joint-stock companies
D
public enterprises
E
Q14
Privatization and commercialization of public enterprises in Nigeria is necessiated by
A
the IBRD condition
B
the government's loss of interest in them
C
their operational inefficiency
D
the IMF conditions
E
Q15
An advantage of the sole proprietorship over the partnership form of business organization is that
A
its existence is limited by an individual's life span
B
it relies on the decision of friends to succeed
C
the possibility of conflict in management is virtually non-existent
D
it enjoys limited for debt in the event of failure
E
Q16
External finance for a limited liability company is mainly sourced through
A
the issuing shares
B
the leasing of equipment
C
trade credits
D
bank loans
E
Q17
The losses suffered by a sole proprietor are
A
usually equal to the amount invested
B
usually less than the amount invested
C
limited to the amount invested
D
not limited to the amount invested
E
Q18
A distinguishing characteristic of cooperative societies is that voting power depends on the
A
number of shares held
B
equality of member
C
status of the member
D
management's decision
E
Q19
The major problem of cooperative societies in Nigeria is that
A
they often lack cohesion and continuity
B
their liability is unlimited to members
C
voting is by proxy
D
their management style is poor
E
Q20
Liquidation of a limited liability company implies that the
A
company may not pay its debts
B
debts of the company can only be paid from its own assets
C
debts of the company are paid from both business and private funds of the owners
D
debts of the company must be paid from public funds only
E
Q21
One form of business organization which is not motivated solely by the profit objective is the
A
joint stock company
B
private limited company
C
co-operative society
D
ordinary partnership
E
Q22
Which of the following can have their shares quoted on the stock exchange?
A
Public corporations
B
A partnership
C
A consumer co=operative
D
A public limited liability company
E
Q23
A form of business organization which is characterized by limited authority and liability of the individual owners is the
A
sole proprietorship
B
partnership
C
joint stock company
D
co-operative society
E
Q24
The share that must be redeemed first at liquidation of a company are
A
preference shares
B
non-voting ordinary shares
C
ordinary shares
D
debentures
E
Q25
In a joint stock company preference share holders are those who receive
A
high dividends when profits are high and little or nothing when profits of the company
B
a fixed rate of dividend and have the first claim on the net profits of the company
C
the remaining profits after all other shareholders have been paid
D
dividends quantity when others receive annually
E
Q26
The major reason for the survival of small shops despite competition from large business enterprises is because of
A
the small capital outlay involved
B
regularity and constant supply of commodities by them
C
their local services and longer hours of operation
D
their level of management competence
E
Q27
One of the major advantages of public enterprises is that
A
they are highly subsidized
B
they are the largest employers of labour
C
their operations are highly standardized
D
their make prompt decision and actions
E
Q28
When public enterprises become commercialized it means that
A
the products of the enterprises are further subsidized
B
they are expected to operate with the primary aim of making profits
C
the government has decided to divest itself of such enterprises
D
thestaff of the enterprises will be laid off
E
Q29
A major shortcoming of the sole proprietorship form of business is lack of
A
working capital
B
patronage
C
continuity
D
market
E
Q30
In the event of liquidation of a private limited liability company, the shareholders liability is limited to their total
A
income from all sources
B
family variations
C
collateral offered for bank loans
D
investment in the company
E
Q31
A debenture share entitles its holder to
A
participate in the annual general meeting of the company
B
share in the dividends declared
C
receives a fixed interest on sums invested
D
have a representative on the Board of Directors
E
Q32
A public liability company is different from a private limited company because it
A
is registered with the Registrar of companies
B
is a legal entity
C
can raise capital of any size by way of loans
D
can sell shares in the Stock Exchnge
E
Q33
A modern corporation is owned by
A
debenture holders
B
ordinary shareholders
C
preference shareholders
D
creaditors
E
Q34
the main handicap of sole proprietorship is
A
limited liability
B
lack of technical know-how
C
low profit margin
D
inadequate capital
E
Q35
The type of business organisations mostly used for producing public goods in Nigeria is
A
sole proprietorships
B
limited liability companies
C
co-operational societies
D
statutory corporations
E
Q36
the type of business finance that entitles the holder to a fixed rate dividend is
A
preferred stock
B
common stock
C
debenture
D
bank loan
E
Q37
When interest rates are high and still rising, the least-cost method used by public limited companies to obtain additional funds for their operations is by
A
obtaining long-term loans from merchant banks
B
obtaining shot-term loans from commercial banks
C
selling floating-rate debenture stocks to the general public
D
selling new ordinary shares to the general public
E
Q38
The ordinary partner in a partnership
A
takes no active part in the management of the business
B
has limited liability in case of business failure
C
has unlimited liability in case of business failure
D
cannot be sued personally on matters relating to the business
E
Q39
A possible factor which limits the extant of growth of a firm is the
A
existence of a monopoly
B
bureaucratic delays in decision-making
C
use of by-products
D
unwillingness to share ownership and control
E
Q40
One of the most outstanding disadvantages of co-operative societies as business organisations is that
A
true spirit of co-operation is marred by delegated authority
B
members show much interest
C
it is poorly financed
D
membership interest is centered on sharing of essential commodities
E
Q41
A disadvantage of a joint-stock company is
A
unlimited liability
B
limited liability
C
continuity
D
loss of controlling interest
E
Q42
a characteristic of a debenture is that
A
its yield is based on profits
B
its yield is a fixed rate of interest
C
it has no redemption date
D
there is a voting right when interest is paid
E
Q43
The tailoring service is competitive partly because it consists of a large number of
A
large-scale enterprises
B
medium scale enterprises
C
small scale enterprises
D
government-owned enterprises
E
Q44
A major difference between a state-owned enterprise and a private enterprise is that the former
A
is not expected to cover its costs of production while the latter is
B
is not always expected to maximize profits while the latter is
C
has shareholders while latter does not
D
has a board of directors while the latter does not
E
Q45
Divorce of ownership from control is a characteristic of
A
sole proprietorship
B
a limited liability company
C
partnership
D
a private limited company
E
Q46
Capital provided by individual to the firm by purchasing stock is called
A
debt capital
B
fixed capital
C
circulating capital
D
equity capital
E
Q47
The size of a business unit tends to be small if the activity
A
involves mass production of goods
B
requires a large capital
C
requires division of labour
D
involves the provision of direct services
E
Q48
Which type of business organization has the attribute of effectively combing management with control?
A
Sole proprietorship
B
Partnership
C
Limited liability company
D
Co-operatives
E
Q49
The co-operative as a form for business organisation differs from partnership by having
A
several sources of capital for business financing
B
ability to issue preferred stocks to members
C
entrenched democratic control in the conduct of business
D
established rules and regulations governing the activies of its members
E
Q50
The type of business finance that entitles the holder to fixed rate of dividend is
A
preferred stock
B
common stock
C
debenture
D
bank loan
E
Q51
Which of the business organisations listed below is characterized by limited authority and liability of the individual owners?
A
Sole proprietorship
B
Partnership
C
Joint stock company
D
Co-operative society
E
Q52
a company is said to be highly geared if the
A
value of fixed interest loans is high compared with share capital
B
value of share capital is high compared with fixed interest loans
C
dividend rate is high
D
interest rate is high
E
Q53
The most important limitations on the partnership as a form of business enterprises is the
A
implication for partners' liability
B
legal limitation placed on the number of partners
C
difficulties arising from having two co-ordinate heads of a firm
D
fact that each partner regardless of the capital he contribute must have the same voting rights
E
Q54
In a public company, entrepreneurial functions are as a form of business enterprises is the
A
workers
B
shareholders
C
general manager
D
board of directors
E
Q55
Under partnership, investors who have no desires to be actively involved in the day-to-day management of such organisations, are called
A
stock brokers
B
sleeping partners
C
part-time investors
D
ordinary partners
E
Q56
Restriction of credit creation banks can be effected through
A
an overdraft
B
loans and advances
C
demand deposits
D
liquidity ratio
E
Q57
Merchant banks perform all the following functions EXCEPT
A
raising of capital for industry
B
provision of current account facilities
C
management of investment portfolios
D
provision of credit for overseas trade
E
Q58
The liability of the sole trader is
A
indeterminable
B
unlimited
C
transferable
D
limited
E
Q59
Which of the following is NOT a type of business ownership?
A
Debenture holding
B
Private company
C
Partnership
D
Joint Stock Venture
E
Q60
A limited liability company is usually owned by
A
an individual
B
a government
C
Share-holders
D
two of more partners
E