Business Units - Jamb Commerce Past Questions and Answers

Question 31:

• JAMB 1995

The merger of two companies producing the same type of products is an example of

A. Vertical integration
B. Horizontal integration
C. Lateral merger
D. An acquisition

Question 32:

• JAMB 1995

One of the implications of the incorporation of a company is that

A. It is more difficult for the company to raise loans
B. The company can sue but cannot be sued
C. The company's property becomes distinguished from that of its members
D. Its members become liable for all the debts of the company

Question 33:

• 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 34:

• 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 35:

• 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