Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
The main objective of corporate mergers is to?
minimize the effect of taxation
increase financial advantage
facilitate profit maximization
enhance economies of scale
Correct answer is D
The main benefit of a merger is to gain more market share. This increases a firms monopoly power and enables higher prices (this is why mergers are often regulated by government.)
When the goods are distributed to the wholesalers
When the goods reaches the retailer
When the goods reaches the final consumers
When the goods are fully packaged
Correct answer is C
production ends when it reaches the final consumer
production doesn’t end until the goods reaches its final consumers
What is the difference between current assets and current liabilities?
Working capital
nominal capital
capital employed
issued capital
Correct answer is A
The difference between current asset and current liability is known as working capital which represents operating liquidity available to business. Working capital is the capital of a business which is used in its day-to-day trading operations, calculated as the current assets - the current liabilities.
Working capital, also known as net working capital, is the difference between a company's current assets, like cash, accounts receivable (customers' unpaid bills) and inventories of raw materials and finished goods, and its current liabilities, like accounts payable.
What’s the first form an applicant must complete before taking an insurance policy?
Cover note
advice note
proposal form
certificate of insurance
Correct answer is C
A proposal form is the form completed by the proposer when applying for insurance, proposal forms are completed online or over the phone.
this is the first form to be filled by intending insured