JAMB Past Questions and Answers - Page 118

586.

A business organization can obtain long term financing through

A.

bank overdraft

B.

the sale of shares

C.

credit purchases

D.

bureau de change

Correct answer is B

Share capital is a longterm means of sourcing for business funds. It is the part of the capital of a company that comes from the issue of shares.

587.

A feature common to public and private limited liability companies is that

A.

both can sue and be sued

B.

the minimum number of their shareholders is five

C.

the transfer of their shares is not restricted

D.

their annual accounts are published for public use

Correct answer is A

Common Features of Private and Public Limited Companies

  • Both types of companies are registered with the words “Ltd” / “Sdn Bhd” under the Companies Act.
  • The shareholders and the company are separate entities, they can sue and be sued
  • All shareholders have limited liability.
  • A board of directors is elected by the shareholders. ...
  • Salaries managers are employed to manage the business.

588.

The most important business objective is to

A.

improve investments

B.

provide quality products

C.

target consumers for satisfaction

D.

carve a niche for the business

Correct answer is C

No explanation has been provided for this answer.

589.

A business organization that exploits the capabilities of a member to remedy the weaknesses of another is

A.

joint venture

B.

partnership

C.

nominal partnership

D.

cooperative

Correct answer is D

The cooperative society works on the principle of mutual help & welfare.

590.

The type of letters that are delivered through the normal mail or by airmail express service is referred to as

A.

inland letters

B.

registered letters

C.

airmail letters express letters

D.

express letters

Correct answer is C

No explanation has been provided for this answer.