JAMB Commerce Past Questions & Answers - Page 79

391.

The main objective of a trade association is to

A.

protect its members against litigation

B.

boost the trade of its members

C.

secure credit for its members

D.

protect its members against victimization

Correct answer is D

The objective of trade associations is to promote the business interests of the members, exchange views, serve as a platform for discussions and to represent the interests of its members.

392.

Given:

opening stock #1,800
purchases #2,800
sales #8,000
closing stock # 350
carriage on sales # 500

calculate the value of the unused stock.

A.

#800

B.

#500

C.

#350

D.

#320

Correct answer is C

Unused stock can also be referred to closing stock. that is the left over stock after sales. In this case closing stock is 350 

393.

A company has an authorized capital of 40 million shares at N1 each, out of which 32 million are issued and fully paid-up. What happens to the remaining 8 million shares?

A.

it has been issued but not paid-up

B.

it has been applied for but not issued

C.

it is not paid-up

D.

it has not yet been issued

Correct answer is D

The remaining 8million shares have not been issued out for subscription by the public.

394.

The portion of the authorized share capital given out to the public for subscription is

A.

called-up capital

B.

issued capital

C.

paid-up capital

D.

reserved capital

Correct answer is B

The Issued Capital refers to the number of shares issued by the company to the shareholders.

395.

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.