Commerce Questions and Answers
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
Which of the following is an advantage of a sole trader?
Guaranteed profit
Quick decision-making
Unlimited liabilty
Buying on credit
Correct answer is B
Sole traders maintain full control of their business. Running it how they please without the interference of others. Decisions are made quicker and faster without having to go through the approval of the board
fixed capital
capital employed
paid-up capital
working capital
Correct answer is D
Working capital is the capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.
D10,0000,000
D6,000,000
D4,000,000
D2,000,000
Correct answer is B
1,200,000 x 5 = 6,000,000
The difference between current assets and current liabilities is
Issued capital
capital employed
working capital
nominal capital
Correct answer is C
The difference between current asset and current liability is known as working capital which represents operating capital
A personal computer on sale in an office equipment shop is an example of
stock
fixed asset
liability
fixed capital
Correct answer is A
stock refers to the goods on hand which is to be sold to customers. The computer system is a stock