JAMB Commerce Past Questions & Answers - Page 196

976.

On liquidation of a public limited liability company, the residual owners are the

A.

creditors

B.

ordinary shareholders

C.

preference shareholders

D.

debenture holders

Correct answer is B

Common stockholders also known as ordinary shareholders, are the residual owners because their claim to dividends and receiving compensation in the case of bankruptcy, are at the bottom of the line. This means that, other classes of shareholders get compensated first, and whatever is left is given to the common stock holders.

Residual claim: is the rights of shareholders to the remaining assets once the fixed claims on a business have been met.

977.

Government policies relating to the establishment and operation of business are targeted at

A.

increasing the profit of business owners

B.

the general improvement of the economy

C.

even spread of facilities and employment

D.

diversification and expansion of business

Correct answer is B

No explanation has been provided for this answer.

978.

The measure of independence available to the individual business unit that come together is the main different between

A.

veritcal and horizontal integration

B.

mergers and acquisition

C.

consortium and almalgamation

D.

trust and cartel

Correct answer is B

No explanation has been provided for this answer.

979.

Which of these is both merit and demerit in partnership?

A.

The number of partners

B.

It unlimited nature

C.

The bearing of risk

D.

The withdrawal of a major partner

Correct answer is A

No explanation has been provided for this answer.

980.

The term Plc implies that the are available

A.

to the public at the company

B.

privately on the stock exchange

C.

publicly on the stock exchange

D.

publicly in commericial banks

Correct answer is C

No explanation has been provided for this answer.