1. The scope of commerce is limited to A. home and foreign trade B. wholesale and retail trade C. trade and aids-to-trade D. wholesale and entrepot trade Right choice – Option

2. Which of the following groups is paid first when a firm liquidates? A. Ordinary shareholders B.Preference shareholders C. Debentures holders D. Cumulative preference shareholders Right choice – Option

3. Which of the following are features of a limited liability company? l. Separate legal entity ll. Right to sue but not be sued III. Has its own corporate name IV. The liability of members is limited. A. I, ll and III B. ll, III and IV C.I,II and IV D.I, III and IV Right choice – Option

4. Which of the following is an internal source of capital to a business concern? A.Trade credit B. Debenture C.Overdraft D. Retained profit Right choice – Option

5. Total assets minus current liability is equal to a company’s A. Gross profit B. Net profit C. Capital owned D.Capital employed Right choice – Option

6. The selling of new shares to existing shareholders is referred to as A. Public issue B. Offer for sale
C. Rights issue D. Bonus issue Right choice – Option

7. If a partnership deed is silent on how profits are to be shared, partners share profits A. in a ratio of the value of. business secured by each partner for the partnership B. in the ratio of partners’ capital contributions
C. in an equal proportion, irrespective of partners’ capital contributions D. according to duties performed by each partner Right choice – Option

8. Which of the following stresses the use of only specialists to head departments? A. committee organization structure B. line organization structure C. Line and staff organization structure D functional organization structure Right choice – Option

9. The difference between personal selling and sales promotion is that while sales promotion includes free gifts and samples, personal selling involves A. premium programming for customers B. distributing instructional posters
C. face-to-face communication with customers D. publishing promotional booklets Right choice – Option

10. The media used for inter-departmental communication include A. circulars, notice boards and advertisement B.memoranda, advertising and face-to-face C. memoranda, advertising and telephone D memoranda, circulars and telephone. Right choice – Option

11. The bank that discounts bills of exchange is the A. commercial banks B. central bank C. mortgage bank D.development bank Right choice – Option

12. From which of the following sources can partnership increase their capital? A. admission of a new partner B.sale of shares C. discharge of a mortgage D grants from relatives Right choice – Option

13. The market where only indigenous firms are considered is the A. money market B. Local market C. second-tier securities Market D. stock exchange Right choice – Option

14. Initial public offering is undertaken through the A. primary securities market B. secondary securities market
C. first-tier securities market D. second-tier securities market Right choice – Option

15. The major participants in the stock market when stock prices are rising generally are the A. bulls B.registrars C. bears D. companies Right choice – Option

16. The rate at which a central bank discounts first class bills is called the
A. fixed rate B. bill rate bank rate C. interest rate Right choice – Option

17. Olu purchased goods from Yemi and he is to pay custom duties before collection. The goods are likely to be collected from A. a manufacturer’s warehouse B. bonded warehouse C. an importers warehouse D. a wholesalers warehouse Right choice – Option

18. The rights of the public to protection against questionable products and. marketing practices is A. an economic aspect of the business B. a social responsibility of the business C. a legal aspect of the business D. political aspect of the business Right choice – Option

19. The basic elements of a valid contract are A. offer, acceptance, consideration and witness B. offer, intention, acceptance and legality C. offer, acceptance, intention, capacity and legality D. offer, acceptance, capacity, legality and consideration Right choice – Option

20. When an organization studies a market that is under served by others and creates a product or service for the segment, it is engaged in A. market integration B. market positioning C. market orchestration D. product differentiation Right choice – Option

21. In marine insurance, the deliberate throwing of some goods into the sea to prevent the ship from sinking is an example A. a constructive total loss B. a partial loss C. a general average loss D. an actual total loss Right choice – Option

22. Another name for sea taxi is A. tramp B. liner C. special freighter D. voyage charter Right choice – Option

23. An insurance policy which benefits one’s family only in the event of one’s death is known as A. a comprehensive insurance B. a whole life insurance C. an annuity D. an endowment Policy Right choice – Option

24. Who among the following has no right of ownership to a business organization? A. shareholder B. entrepreneur
C. partner D. debenture holder Right choice – Option

25. A symbol that is used to distinguish a company’s product from others is a A. copyright B. trade mark C. patent right D. trade permit

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