A public limited company could finance its operations through
Government taxes
Equity shares
Dividend payments
Import duties
Correct answer is B
Public limited company can finance its operation by raising equity capital with initial public offering This is done by issuing new shares to the public or the existing shareholders can sell off their shares to other people without raising any fresh capital.
One reason why small scale businesses are very common in West Africa is that
They can easily float shares
Their management boards are easily formed
Their initial capital is easy to rise
Their dividend payments are very regular
Correct answer is C
Because they require minimal capital for start up. Most small businesses rely on loans and grants from family and friends, personal savings and plough back profit as their initial start up capital.
An arrangement in which the debts of a company can only be paid from its own assets implies
Unlimited liability
Transferred liability
Limited liability
Capital liability
Correct answer is C
Limited liability is a kind of legal protection whereby owners and shareholders have no personal responsibility for their company's debts and financial losses.. In other words, investor's and owner's of private assets are not at risk if the company fails.
All of its fixed cost and variable cost
All of its fixed cost and part of variable cost
All of its variable cost and part of fixed cost
Part of its fixed cost and part of varible cost
Correct answer is A
No explanation has been provided for this answer.
In the firm's production process, marginal cost
Falls continuously throughout
Falls and later rises
Remains unchanged throughout
Rises and later falls
Correct answer is D
Marginal cost is the cost additional cost incurred by producing one additional unit of a product or service. In the production process, the cost would usually rise and the fall in the long run when the firm starts enjoying economies of scale. That is, higher outputs, minimal cost.