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