Sources of finance - Jamb Commerce Past Questions and Answers

Question 6:

• JAMB 1999

A company which issues a promissory note in lieu of payment for goods purchased

A. Can refuse to pay ondue date since it is only a promise
B. Is bound to redeem the note for cash on due date
C. Is not bound to renew the note before payment
D. Can return the goods purchase and refuse to pay

Question 7:

• JAMB 2000

Bank overdraft as a short term source of fund is

A. An overdrawn account
B. Granted to a newly opened account
C. Repayable after more than a year
D. A current liability

Question 8:

• JAMB 2000

The major condition for obtaining loan in thrift, credit and loans cooperative societies is

A. Provision of collateral security
B. A high level of education
C. Possesssion of a large business
D. An approved project plan

Question 9:

• JAMB 2001

(i) Personal Savings
(ii)Retained Earnings
(iii)Accrued taxes
Which of the items above constitute internal sources of financing for companies?

A. I and ii
B. I and iii
C. Ii and iii
D. I, ii and iii

Question 10:

• JAMB 2003

A source of short-term finance to companies is?

A. Share capital
B. Debentures
C. Retained earnings
D. Corperate tax