The goods that are used for the production of other goods are known as
Answer
(C)
capital goods
3
Which of the following brings about specialization?
Answer
(B)
Division of labour
4
Which of the following refers to all the resources used in creating utilities?
Answer
(B)
Factors of production
5
Which of the following enables people to consume a variety of goods and services?
Answer
(D)
Exchange
6
A business unit in which profits are shared on the basis of members' patronage is known as
Answer
(C)
Co-operative society
7
A public limited company wishing to obtain more capital may have to
Answer
(D)
issue debentures
8
The safe keeping of goods from the point of production to the time they are needed is`
Answer
(B)
warehousing
9
The document which regulates the operations of a partnership is known as
Answer
(A)
Deed
10
A company is said to be insolvent when
Answer
(B)
its total liabilities exceed total assets
11
Which of the following is formed in order to enforce the rights and powers of buyers in relation to sellers?
Answer
(C)
Consumer Association
12
A public Limited Company whose nominal capital is made up of 400,000 ordinary shares of 50k each, decided to issue 50% of it to the public and realized only 50% of the amount due
What is the company's registered capital?
Answer
(C)
#200,000.00
13
A public Limited Company whose nominal capital is made up of 400,000 ordinary shares of 50k each, decided to issue 50% of it to the public and realized only 50% of the amount due
What is the paid up capital?
Answer
(A)
#50,000.00
14
A public Limited Company whose nominal capital is made up of 400,000 ordinary shares of 50k each, decided to issue 50% of it to the public and realized only 50% of the amount due
What is the called-up capital
Answer
(B)
#100,000.00
15
Which of the following documents is used to advertise shares to the public?
Answer
(D)
Prospectus
16
A major advantage of the private company over a partnership is that the private company
Answer
(B)
has limited liability
17
Which of the following is a contract of carriage and a document of title?
Answer
(B)
Bill of lading
18
Which of the following is not a feature of a Department Store?
Answer
(B)
Deals in one line of goods
19
A major cost component of running a mail order firm is the
Answer
(A)
printing of catalogues
20
A bill of exchange becomes negotiable when it is
Answer
(A)
accepted
21
What is the purpose of a debit note? To
Answer
(A)
reduce the credit in the buyer's account
22
Status enquiry is necessary when
Answer
(C)
granting credit to a new customer
23
Trade discount is given to the buyer for
Answer
(D)
retailer's mark-up
24
Government can borrow money from the public through
Answer
(A)
the issuing of treasury bills
25
Insurance is necessary because of the need to
Answer
(B)
meet uncertainties in future
26
Notes and coins are legal tender because they are
Answer
(B)
backed by law
27
If a company is described as "listed" it means
Answer
(A)
its shares can be traded on the stock exchange
28
The counterfoil of a cheque book enables the drawer to
Answer
(B)
reconcile his book of accounts
29
Which of the following qualities of money is generally undermined by inflation?
Answer
(A)
Stability
30
One advantage of communication by telephone is
Answer
(C)
feedback is instantenous
31
Which of the following is the fastest means of sending a document from one place to another?
Answer
(B)
Courier service
32
Which of the following is a disadvantage of canal transport? it is
Answer
(A)
narrow and cannot support big vessels
33
A manufacturer of machinery who wants to reduce cost of promotion can use
Answer
(D)
catalogues
34
Direct selling by a producer to a consumer is possible when the
Answer
(A)
goods have to be made on demand
35
The task of grouping consumers according to their buying habits is known as market
Answer
(D)
segmentation
36
Which of the following is not an economic grouping?
Answer
(C)
ECOMOG
37
Business losses in nationalized industries are borne by the
Answer
(D)
Public
38
Which of the following can be sold through a vending machine?
Answer
(A)
cigarettes
39
Which of the following is the most suitable channel of distribution for technical goods?
Answer
(D)
manufacturer-consumer
40
Which of the following implies that the price quoted includes the cost of insurance and carriage?
Answer
(D)
C.I.F
41
Bonded warehouses are controlled by
Answer
(C)
Customs and Excise Authority
42
A hire purchase transaction becomes a sale when when the
Answer
(D)
hirer pays full cost of the goods
43
Which of the following serves as a receipt for goods kept in a bonded warehouse?
Answer
(A)
Dock Warrant
44
Which of the following have lien on goods in their possession until their commission is paid?
Answer
(B)
Factors
45
A picture which indicates that success in life can only be achieved through the use of the product is an example of
