WAEC Commerce Past Questions & Answers - Page 140

696.

One of the features of reinsurance is the

A.

total transfer of risk from one company to another

B.

protection of insurance company by the government

C.

protection of the insured by the third party

D.

collection of indemnity by third party only

E.

transfer of a portion of risk from one insurer to another

Correct answer is E

No explanation has been provided for this answer.

697.

Which of the following is not one of the aims of indigenization? To

A.

reduce the remittance of profits aboard

B.

increase the control of the government over its economy

C.

expose the indigenes to different business enterprises

D.

collection of indemnity by third party only

E.

transfer of a portion of risk from one insurer to another

Correct answer is E

No explanation has been provided for this answer.

698.

When a company raises additional capital by selling shares directly to the public through insurance companies or investment houses, this is known as

A.

rights issue

B.

bonus issue

C.

private placing

D.

debenture issue

E.

preference share issue

Correct answer is C

No explanation has been provided for this answer.

699.

Ali Plc with issued capital of #500,000 in #1.00 shares has for now requested shareholders to pay only 50k for each #1.00 share. The amount requested from the shareholders by the company is called?

A.

issued capital

B.

Called-up capital

C.

paid-up capital

D.

capital owned

E.

borrowed

Correct answer is B

No explanation has been provided for this answer.

700.

The total assets of Ogo Plc is #16,000 and the liabilities included loan #2,000, creditors #1,000 and electricity bill #2,000. Calculate the capital owned by the company?

A.

#21,000.00

B.

#18,000.00

C.

#17,000.00

D.

#16,000.00

E.

#11,000.00

Correct answer is E

No explanation has been provided for this answer.