JAMB Commerce Past Questions & Answers - Page 46

226.

The main advantage of a sole trader is the freedom to

A.

employ anyone he likes

B.

seek advice from any source

C.

take quick decisions

D.

plough all the profits back into the business

Correct answer is C

No explanation has been provided for this answer.

227.

One of the implications of the incorporation of a company is that

A.

it is more difficult for the company to raise loans

B.

the company can sue but cannot be sued

C.

the company's property becomes distinguished from that of its members

D.

its members become liable for all the debts of the company

Correct answer is C

No explanation has been provided for this answer.

228.

The merger of two companies producing the same type of products is an example of

A.

vertical integration

B.

horizontal integration

C.

lateral merger

D.

an acquisition

Correct answer is B

No explanation has been provided for this answer.

229.

Which of the following information is contained in the Articles of Association of a limited liability company?

A.

Rights and obligations of directors

B.

Objectives of the company

C.

Amount of share capital

D.

Limitation of liability of shareholders.

Correct answer is A

No explanation has been provided for this answer.

230.

If a partnership deed is silent on how profits are to be shared, partners share profits

A.

in the ratio of the value of business secured by each partner for the partnership

B.

in the ratio of partner capital contributions

C.

in an equal proportion irrespective of partners's capital contributons

D.

according to duties performed by each partner

Correct answer is C

No explanation has been provided for this answer.