Business Capital and Profits Generix Content - Business Capital and Profits
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"Business Capital and Profits" question number distribution across years
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WAEC questions for "Commerce :: Business Capital and Profits"
Q1
A document through which the public is invited to subscribe to the shares of a company is a
A
Memorandum of association
B
Article of association
C
Prospectus
D
Debenture
E
Q2
Which of the following is a source of capital to a sole proprietorship?
A
Loans from friends
B
Admission of new member
C
Issue of shares
D
Issue of debentures
E
Q3
Who among the following has no voting right?
A
Preferred ordinary shareholders.
B
Ordinary shareholders.
C
Deferred shareholders.
D
Debenture holders.
E
Q4

In which of the following business units are profits shared on the basis of membership patronage?

A

Public enterprise

B

Partnership

C

Co-operative society

D

Public Limited Liability

E
Q5
A private company's ability to raise capital is limited because
A
its borrowing powers are limited.
B
membership does not exceed 50.
C
shares cannot be made public.
D
of limited collateral security.
E
Q6
The working capital of a firm, is calculated as
A
current assets minus current liabilities.
B
current liabilities minus fixed assets.
C
value of all assets.
D
value of issued capital.
E
Q7
Which of the following sources of capital to a business requires mortgaging a specific asset?
A
Overdraft
B
Ordinary shares
C
Fixed debenture
D
Trade credit
E
Q8
The total amount of money actually received by a company out of the issued capital is
A
paid-up capital
B
unissued capital
C
reserved capital
D
called-up capital
E
Q9
Which of the following is an internal source of capital to a business concern?
A
Trade credit
B
Debenture
C
Overdraft
D
Retained profit
E
Q10
A public limited company wishing to obtain more capital may have to
A
apply for subvention
B
buy treasury bills
C
buy second-hand securities
D
issue debentures
E
Q11
What is the company's registered capital?
A
N50,000.
B
N80,000.
C
N200,000.
D
N400,000.
E
Q12

What is the paid up capital?

A

N50,000.

B

N100,000.

C

N150,000.

D

N200,000.

E
Q13

What is the called up capital?

A

N50,000.

B

N100,000.

C

N200,000.

D

N400,000.

E
Q14
Key industries and those requiring huge capital are usually establishes as
A
public corporations.
B
public limited companies.
C
private limited companies.
D
holding companies.
E
partnerships.
Q15
The capital of a company indicated in the Memorandum of Association is known as
A
authorized capital
B
capital employed
C
working capital
D
fixed capital
E
called-up capital
Q16
A partner who contributes to the capital but does not take part in running the business is known as
A
a sleeping partner
B
an active partner
C
a general partner
D
a nominal partner
E
a limited partner
Q17
The total assets of a business minus its total liabilities is the
A
net profit
B
capital owned
C
working capital
D
capital employed
E
gross profit
Q18
The intangible benefits arising from the business connections and reputation of a firm are called
A
interest
B
goodwill
C
commission
D
bonus
E
dividend
Q19
The capital market is a market
A
for long term loans
B
for new shares of public companies
C
where money is deposited
D
where foreign currencies are bought and sold
E
for short term loans
Q20
The value of a profit expressed in monetry terms is known as
A
utility
B
price
C
premium
D
commission
E
interest
Q21
Which of the following is not a source of capital
A
Personal savings
B
Credit transfer
C
Bank loan
D
Credit purchase
E
Debenture
Q22
Which of the following is not a way of raising capital for business?
A
Issuing of bonds
B
Borrowing
C
Savings
D
Ploughing back profit
E
Issuing dividend warrants.
Q23
Called-up capital is the amount
A
paid on allotment.
B
paid on first call
C
paid on application
D
demanded shares issued
E
paid-up on all shares
Q24
A public limited company has the rights and duties of an individual because it
A
has a board of directors.
B
has a trading certificate.
C
has corporate status.
D
has a memorandum of association.
E
is so stated in the articles of association
Q25

The total indebtedness of a business is the same as its

A

liabilities.

B

liquid capital.

C

solvency.

D

capital employed

E

working capital.

Q26
What is the working capital of KO Ltd which has N3,500 in fixed assets, cash balance of N4,170, trade debtors N1,150 and sundry creditors of N1,800?
A
N7,020.00.
B
N5,320.00
C
N4,720.00
D
N3,620.00
E
N3,520.00
Q27
Which of the following is not a source of capital to a public limited company
A
Equipment leasing
B
Debt factoring
C
Debentures
D
Trade credits
E
Dividends
Q28
Dividend paid by public limited companies
A
is based on patronage.
B
depends on the price of the shares.
C
is based on stock exchange rating.
D
depends on profit declared.
E
depends on rate of turn over.
Q29
Capital owned is the same as
A
authorised capital
B
issued capital
C
net worth of a business
D
fixed assets of a business
E
public limited company.
Q30
Which of the following belongs to the capital market?
A
Commercial bank.
B
Stock exchange.
C
Ministry of Finance.
D
Chamber of Commerce.
E
Discount House.
Q31
Which of the following is not a source of short-term capital?
A
Trade credit
B
Overdraft
C
Bonus issue
D
Discounting bills
E
Money market
Q32
The amount of capital supplied by the owners of a company is known as
A
loan capital.
B
working capital.
C
capital employed.
D
share capital.
E
fixed capital.
Q33

Business risks that can be insured against include
1.     imitation of a company's product.
11.   damages caused by the use of a company's product.
111. changes in fashion.
1V.  damages caused by fire.
V.    damages caused by flood.

A

1, 11 and V only

B

11 and 1V only

C

111 and 1V only

D

1V and V only

E

1, 11, 111 and V only

Q34
The insured is preventing from making profit from claims under more than one policy for the same risk by the principle of
A
contribution.
B
subrogation.
C
utmost good faith.
D
proximate cause.
E
insurable interest
Q35
The excess value of the assets of a business over its liabilities is
A
capital owned.
B
working capital.
C
issued capital.
D
liquid capital.
E
reserved capital.
Q36
The capital that is needed to meet the day-to-day running of a business is the
A
fixed capital.
B
reserved capital.
C
circulating capital.
D
liquid capital.
E
capital employed.
Q37
The working capital of a company is
A
current assets less current liabilities.
B
fixed assets less current liabilities.
C
fixed assets less fixed liabilities.
D
current assets less current liabilities.
E
current assets less owners' equity.
Q38
The document issued to a lender under a company's seal acknowledging a debt is called
A
stock
B
share
C
dividend warrant
D
debenture
E
mortgage
Q39
Which of the following investors earn profit on his basis of his patronage?
A
debenture holder.
B
partner.
C
sole proprietor
D
cooperative member
E
shareholder
Q40
In winding-up a company, the assets of the company are vested in the hands of the
A
receiver.
B
liquidator.
C
registrar of companies.
D
director of companies.
E
the government.
Q41
Which of the following is not a means of raising capital by a promoter?
A
Goodwill.
B
Borrowing.
C
Selling of Shares.
D
Selling real assets.
E
Past savings.
Q42
The reward of capital is
A
dividend.
B
interest.
C
profit.
D
rent.
E
rebate.
Q43
The authorised capital of a company is also referred to as its
A
called-up capital.
B
issued capital.
C
subscribed capital.
D
norminal capital.
E
unissued capital.
Q44
The amount of capital with which a new company proposes to be registered is called
A
called-up capital.
B
nominal capital.
C
fixed capital.
D
issued capital.
E
circulating capital.
Q45
Pure profit is the element of profit paid
A
for land.
B
for capital.
C
a manager.
D
to an enterpreneur.
E
for labour.
Q46
The process whereby a firm buys over the assets and liabilities of another firm is known as
A
amalgamation.
B
cartel.
C
factoring.
D
holding.
E
combine.
Q47
What was the issued capital
A
N5,000.
B
N10,000.
C
N15,000.
D
N20,000.
E
N35,000.
Q48
What was the paid up capital?
A
N35,000.
B
N30,000.
C
N20,000.
D
N15,000.
E
N5,000.
Q49
What was the unissued capital?
A
N35,000.
B
N30,000.
C
N15,000.
D
N10,000.
E
N5,000.