Jamb Commerce 1995 Past Questions and Answers

Question 36:

• JAMB 1995

The main advantage of a sole trader is the freedom to

A. Employ anyone he likes
B. Seek advice from any source
C. Take quick decisions
D. Plough all the profits back into the business

Question 37:

• JAMB 1995

In the case of a voluntary liquidation of a business the receivers is appointed by the by the

A. Creditors
B. Debtors
C. Directors
D. Shareholders

Question 38:

• JAMB 1995

When a company uses more of loans than equity to finance its business, the company is said to be

A. Bankrupt
B. Solvent
C. Highly geared
D. In a strong liquid position

Question 39:

• JAMB 1995

The nominal value of a share as specified in the Memorandum of Association and the share certificate is the

A. Discounted value
B. Stock value
C. Face value
D. Par value

Question 40:

• JAMB 1995

A public limited company can raise long-term loans through

A. The capital market
B. The money market
C. Bank overdrafts
D. Discount houses