Economics Practice Test – Business Organisations


Hello and Welcome to Economics Practice Tests – Business Organisations

  1. You are to attempt 5 random objectives questions ONLY.
  2. Supply Your Full Name and Location in the text box below and begin immediately.
  3. You can attempt as many times as possible


When a government owns enterprises a number of advantages arise. Which of the following is NOT one of such advantages?  

A. More capital is provided
B. Pricing policy may be in the interest of Consumers
C. Government workers may be indifferent towards the public
D. Infrastructures are rapidly developed


Unlimited liability means ________ (JAMB 1981) 

A. the government can tax a company without limit
B. the debts of a company must be paid out of its assets
C. a company ceases to exist at the death of one of its owners
D. a firm must pay its debts from business as well as private funds


Limited liability means _______ (JAMB 1985) 

A. the debts of a company can only be paid from its own assets
B. the debts of the company are paid from business as well as private funds of the owners
C. government cannot tax the company.
D. the debts of the company must be paid from private funds only


A typical corporate form of business organization is owned by _____ (JAMB 1979) 

A. president of the country.
B. shareholders
C. the general manager and the executives of the business concern
D. a local government


A company is said to be highly geared if the _______ (JAMB 1989)

A. value of fixed interest loans s high compared with share capital
B. value of share capital is high compared with fixed interest loans
C. dividend rate is high
D. interest rate is high


 



error: Content is protected !!