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WAEC questions for "Economics :: Business Structures and Market Organisation"
Q1

All the following are features of market economies except

A

competition among producers

B

demand and supply forces guiding production decisions

C

that profit motive is paramount

D

public ownership of capital

E
Q2

The main objective of setting up a private business organization is to

A

protect the interest of the owners

B

promote export

C

provide infrastructure

D

maximize profits

E
Q3

Which of these is true of a perfect competitor?

A

P = AR < MR

B

P > AR = MR

C

P = MR < AR

D

P = AR = MR

E
Q4

Which of the following is a condition necessary for a perfect market?

A

The goods are heterrogeneous

B

There is preferential treatment

C

There is a large number of buyers and sellers

D

Buyers and sellers are easily influenced

E
Q5

A market in which a single price obtains for a product is known as

A

a product market

B

a capital price market

C

an imperfect market

D

a perfect market

E
Q6

Small scale enterprises are important in a country because

A

they usually produce goods for the depenants

B

they provide after sales service only to the rich

C

the prices of their products are fixed

D

they render personalized services to the consumers

E
Q7

A business outfit is said to be a public limited company when it

A

is owned by government

B

operates as a public corporation

C

is run by the public

D

sells its shares to members of the public

E
Q8

The main characteristics of an ordinary share are

A

maximum risk, fixed dividends, voting rights

B

maximum risk, fixed dividends, no voting rights

C

maximum risk, variable dividend, voting rights

D

maximum risk, fixed dividends, no voting rights

E
Q9

The monopolist can determine

A

price and output

B

price only

C

output only

D

price or output

E
Q10

A market situation with a large number of firms selling closely related but differentiated products is

A

monopolistic competition

B

perfect competition

C

monopoly

D

monopsony

E
Q11

Equilibrium under perfect competition requires that

A

MC=MR BUT AR

B

MR=MC=AR=AC

C

AC=AR

D

TR

E
Q12

The purely competitive firm should close down when its price is less than its

A

average variable cost

B

total fixed cost

C

average total cost

D

marginal cost

E
Q13

During a sale by auction, the price at which the good is finally sold is determined mostly by

A

competition between buyers and sellers

B

competition among buyers

C

competition among sellers

D

government policy

E
Q14

Patents are examples of

A

natural barriers to entry

B

legal barriers to entry

C

illegal barrier to entry

D

unnatural barriers to entry

E
Q15

Which of the following is a characteristic of monopoly? 

A

Many sellers

B

Homogenous commodity

C

A single seller

D

Perfect Knowledge

E
Q16

When a firm is nationalized 

A

former owners are removed without compensation

B

it has the right to draw on state funds for capital investment

C

it must break even within a specified period 

D

workers take over the firm

E
Q17

The practice whereby a business is owned by two or more independent firms is termed

A

indigenization

B

joint venture

C

commercialization

D

foreign investment

E
Q18

The main objective of privatizing a government business is to

A

create additional employment

B

increase expenditure

C

source for new funds

D

increase the level of efficiency

E
Q19

An owner-manager of a firm can also be called 

A

a shareholder

B

an entrepreneur

C

an employer

D

a chairman

E
Q20

A debenture holder is entitled to payments in the form of

A

allowance

B

interest

C

salary

D

donation

E
Q21

The main difference between a private and public enterprise is the

A

amount of profit realized

B

mode of operation

C

objective of the business

D

ownership structure

E
Q22

The total amount of money raised by a company through issuance of shares to the public is

A

debentures

B

normal capital

C

ordinary shares

D

paid-up capital

E
Q23

Buying and selling of shares is a function performed mostly by the

A

insurance companies

B

stock exchange

C

merchant banks

D

discount houses

E
Q24

Which of the following is not a reason for establishing public enterprises?

A

discouraging investors

B

opening up neglected parts of the country

C

effective control of a natural monopoly

D

rapid economy development

E
Q25

For a monopolist, the average revenue (AR) curve is 

A

above the total cost curve

B

the same as the marginal cost curve

C

above the marginal revenue curve

D

the same as that of the perfect competitor

E
Q26

Advertising expenses would not be necessary under perfect competition because

A

consumers would have complete knowledge of goods

B

cost of production would be at the maximum level

C

every firm would enjoy the benefits of large scale production

D

incomes of consumers in the community would be high

E
Q27

The equilibrium level of output of a monopolist is determined at a point where

A

marginal cost equals average revenue

B

marginal cost equals average cost

C

marginal cost equals marginal revenue

D

marginal revenue equals average cost

E
Q28

The transfer of ownership of a public enterprise to individuals and firms is called 

A

commercialization

B

nationalization

C

privatization

D

restructuring

E
Q29

One-man businesses are popular in West Africa because of all the following except the

A

ease of entry

B

small capital required

C

limited entrepreneurial skill needed

D

tendency to become joint-stock companies 

E
Q30

In which of the following business units are the owners mostly the customer?

A

co-operatives

B

Limited companies

C

Patrnerships

D

public corporations

E
Q31

An essential characteristic of a market economy is

A

government control

B

producer surplus

C

consumer surplus

D

consumer sovereignty

E
Q32

As a firm expands, it enjoys some advantages called 

A

variable proportions

B

diminishing marginal returnss

C

internal economies of scale

D

decreasing returns to scale

E
Q33

For both the monopolist and the perfectly competitive firm, profit maximizing output occurs at the point where the

A

marginal cost curve cuts marginal revenue from below

B

marginal revenue curve cuts the marginal output from above

C

marginal cost curve intersects the X-axis

D

marginal revenue curve intersects the Y-axis

E
Q34

The market structure in which the operators are many or none of them can influence the prices is

A

imperfect market

B

perfect market

C

oligopolistic market

D

stock market

E
Q35

One main benefit of partnerships is

A

the possibility of raising funds on the stock exchange

B

the possibility of attracting twenty or more members

C

the members can specialize in various functions 

D

that it enjoys its own separate legal entity

E
Q36

Joint ventures are partnerships involving 

A

the poor and the rich

B

employers and workers

C

government and private investors

D

multinationals and individuals

E
Q37

The economic goal of public corporations is to

A

maximize profit

B

expend assets

C

minimize costs

D

provide essential services

E
Q38

Which of the following is necessary for the survival of small firms in West Africa?

A

Access to land for development

B

Inadequate collaterals for bank loans

C

Government assistance in the form of loan and tax holidays

D

High transportation costs

E
Q39

The most common type of business in West African countries is

A

joint stock companies

B

sole proprietorships

C

partnerships

D

public enterprises

E
Q40

Which of the following is a type of business organisation?

A

Stock excharge

B

Insurance company

C

Chain stores

D

Co-operative

E
Q41

One advantage of the sole proprietorship is that

A

control and supervision is under one man

B

accounts must be publized

C

it is always successful

D

funds are easy to obtain

E
Q42

The shares which do not carry any fixed rate of dividend are known as

A

debuntures

B

cumulative preference sahres

C

ordinary shares

D

participating preference shares

E
Q43

The main objective of setting up private businesses is to 

A

protect the interest of government

B

maximize porfits

C

provide infrastructure

D

promote exports

E
Q44

Small firms are important for the development of a country because

A

the prices of their products usually high

B

they render personalized services to the consumers

C

they usually produce goods for the elite

D

they do not normally provide after sale service

E
Q45

A limited liability company is owned by the 

A

president of the country

B

workers

C

general manager

D

shareholders

E
Q46

The National Electric Power Authority (NEPA) of Nigeria is a 

A

public limited company

B

private limited company

C

private authority

D

public corporation

E
Q47

Which business organization enjoys tax-free profits in West Africa?

A

Co-operative societies

B

Private limited liability companies 

C

Joint stock companies

D

Partnerships

E
Q48
Which of the following business units can issue shares?
A
Sole trader
B
Private limited company
C
Central Bank
D
Supermarket
E
Q49
When the government initiates measures to make an organization which it has substantial interest more profit oriented, such a business is described as being
A
indigenized
B
restructured
C
privatized
D
commercialized
E
Q50
Which of the following is not condition for a prefect market?
A
Homogeneous commodity
B
Ignorance of consumers
C
Perfect information
D
Free entry and exit
E
Q51
The monopolist power can be controlled by the government through
A
labour union
B
price legislation
C
import restrictions
D
export promotion
E
Q52
The reward for shareholdership of a company is
A
wages
B
interest
C
dividends
D
profit
E
Q53
In a public corporation, the risks of business are borne by the
A
workers
B
tax payers
C
board members
D
treasury
E
Q54
Public enterprises are established mainly to
A
provide basic amenities for people
B
make goods available in the market
C
make profit for the government
D
compete with foreign in the industrial sector
E
Q55
One important feature of sole proprietorship is that
A
it is a limited liability business
B
the business is owned by shareholders
C
one person bears all the risk
D
it is a legal entity
E
Q56
The Consumer's Co-operative Society is owned by
A
a management committee
B
members of the society
C
debenture holders
D
the government
E
Q57
The maximum amount a company is allowed to raise by issuing shares to the public is called
A
paid-up capital
B
fixed capital
C
working capital
D
authorized capital
E
Q58
Shares and stocks can be brought in the
A
Commodity market
B
Stock exchange
C
Money market
D
Open market
E
Q59
Small enterprises find it hard to expand due to
A
inadequate capital
B
lack of skilled manpower
C
the high level of technology required for expansion
D
their inability to provide after sale services
E
Q60
In a perfect market, price and quality to be brought are determined by the
A
consumers and retailers
B
producers and wholesalers
C
forces of demand and supply
D
interest of government and producers
E