JAMB Commerce Past Questions & Answers - Page 240

1,196.

Compulsory dissolution of a business can arise from

A.

an agreement by the owners

B.

a declaration by a court of law

C.

the termination of its life

D.

an unfavourable economic climtate

Correct answer is B

No explanation has been provided for this answer.

1,197.

Which of the following groups is paid first when a firm liquidates?

A.

Preference shareholders

B.

Debenture holders

C.

Ordinary shareholders

D.

Cumulative preference shareholders

Correct answer is A

preference shareholders is a term used in venture capital contracts to specify which investors get paid first and how much they get paid in the event of a liquidation event such as the sale of the company.

1,198.

Which of the following takes place when firms producing at different stages in the same industry combine?

A.

conglomeration

B.

vertical integration

C.

horizontal integration

D.

cartel

Correct answer is B

No explanation has been provided for this answer.

1,199.

A distinguishing characteristics of a limited liability company is that it

A.

is a collection of many sole proprietors

B.

is a multiple partnership

C.

can sue and be sued

D.

has limited resources

Correct answer is C

No explanation has been provided for this answer.

1,200.

A demonstration of social responsibility by a business is the payment of

A.

taxes to government

B.

dividends to shareholders

C.

interests on loans

D.

premium on insurance

Correct answer is A

No explanation has been provided for this answer.