JAMB Past Questions and Answers - Page 111

551.

Which of the following will not be stated in a Memorandum of Association

A.

Name clause

B.

rights of shareholders

C.

object clause

D.

registered office

Correct answer is B

memorandum of association contains a name clause, registered office clause, object (or objective clause), objects clause, liability clause, capital clause, and association clause. An MOA is a type of legal paper that is prepared when forming and registering a limited liability company (LLC).

552.

A business partner who provides capital but abstains from participation in administration of a firm is a

A.

general partner

B.

nominal partner

C.

secret partner

D.

dormant partner

Correct answer is D

Dormant partner; a partner who contributes capital in a business but takes no share in the active business of a company or partnership, but is entitled to a share of the profits, and subject to a share in losses. called also sleeping partner or silent partner

553.

In order to increase the capital owned, a sole trader may

A.

seek for bank loan

B.

issue debentures

C.

acquire extra shop fittings on credit

D.

draw less of his profit for personal use

Correct answer is D

A sole trader can raise capital for the business by ploughing back profit. That is, re-investing the profits realised from the business instead of using it for personal needs

554.

An importance of warehousing is in the

A.

production of goods

B.

transportation of goods

C.

importation of goods

D.

repackaging of goods

Correct answer is A

Warehouses reduce violent fluctuations in prices by storing goods when their supply exceeds demand and by releasing them when the demand is more than immediate productions. Warehouses ensure a regular supply of goods in the market. This matching of supply with demand helps to stabilise prices

555.

The most reliable and efficient means of conveying urgent documents is through

A.

postal order

B.

ordinary letters

C.

registered letters

D.

courier services

Correct answer is D

Courier company is one which delivers messages, packages and mail and is known for their speed, security, tracking service and specialisation.