JAMB Commerce Past Questions & Answers - Page 87

431.

When two or more companies agree to execute a project too large for one to handle, this is referred to as?

A.

an amalgamation

B.

a cartel

C.

a merger

D.

a consortium

Correct answer is D

consortium is a group made up of two or more individuals, companies, or governments that work together to achieving a common objective.

432.

The business organization that can effectively combine management with control is?

A.

private limited liability company

B.

sole proprietorship

C.

public limited liability company

D.

co-operation society

Correct answer is B

sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity. The business owner manages and controls all business activities

433.

One of the major disadvantages of pipeline transportation is its?

A.

high cost of construction

B.

limitation in scope

C.

vulnerability to climate changes

D.

high maintainance cost

Correct answer is A

No explanation has been provided for this answer.

434.

Inbound tourism occurs when?

A.

non-residents of a country travel to other countries

B.

resident of a country travel to another country

C.

non-resident of a country travel within it

D.

resident of a country travel within it

Correct answer is B

Inbound tourism is when a person from his/her home country travels to another country for not less than 24 hours and not more than few months. The purpose of the travel is mostly leisure and very seldom for business.

435.

The agreement of insurers to spread risks among themselves is a major feature of?

A.

reinsurance

B.

life insurance

C.

underwriter

D.

marine insurance

Correct answer is A

Reinsurance is the practice whereby insurers transfer portions of their risk portfolios to other parties by some form of agreement to reduce the likelihood of paying a large obligation resulting from an insurance claim.