The components of capital employed in a business are?
owners' equity and long-term debts
total assets and current liabilities
share capital and long-term debts
share capital and current liabilities
Correct answer is B
Capital employed is derived by subtracting current liabilities from total assets
The cheapest source of funds available to a company is through?
the sale of shares
retained profits
the sale of bonds
lease financing
Correct answer is B
Retained earnings are a portion of a company's profit that is held or retained from being distributed or paid out to investors, but rather re-invested into the business. This is one of the cheapest sources of funds for a business because it doesn't come at an extra cost. That is, the business will not be required to pay interest on the funds.
OPEC
ECOWAS
AU
EU
Correct answer is A
A cartel is where two or more businesses agree not to compete with each other. The businesses agree not to compete with each other. Example the OPEC
A proposed company may not be registered if?
the name conficits with that of another
it does not put 'limited' after its proposed name
it has no paid-up capital
it has no asset of its own
Correct answer is A
One of the criteria for getting your business name registered by the corporate affairs commission is that it must be a unique and distinct name, different from an already existing business name. This means that whatever name you choose, must not conflict with that of another.
A document which gives a legal status to a company is the certificate of?
incorporation
trading
commencement of business
business registration
Correct answer is A
A certificate of incorporation is a document given by the companies' regulation agency of a country (in Nigeria's case this is the Corporate Affairs Commission – CAC) as evidence of the existence of a company, and its right to do business.