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.
Part payments made on allotted shares by subscribers is usually the
subscribed capital
authorized capital
issued capital
called-up capital
Correct answer is D
Called up share capital is shares issued to investors, under the understanding that the shares will be paid for at a later date or in installments.
overdraft
advance
interest
commission
Correct answer is A
Overdraft; a deficit in a bank account caused by drawing more money than the account holds. The overdraft allows the account holder to continue withdrawing money even when the account has no funds in it or has insufficient funds to cover the amount of the withdrawal.
Which of the following attracts only interest but leaves the capital unpaid
a long-term loan
a development bond
a redeemable bond
an irredeemable bond
Correct answer is D
Irredeemable bond; a government bond which has no date of maturity and which therefore provides interest but can never be redeemed at full value.
The document that explains the types of shares available for sale to the public is
a prospectus
an invoice
an open indent
a closed indent
Correct answer is A
prospectus is a document giving details of a share offer for the benefit of investors.
syndicate
merger
cartel
consortium
Correct answer is C
Cartel; is a group of independent market participants, whose goal is to improve their profits and/or market position by reducing their mutual competition.