Dissolution and liquidation of business units - Jamb Commerce Past Questions and Answers

Question 1:

• JAMB 1994

Commerce is defined as the study of how

A. Man utilizes the resources in his physical environment
B. Man produces, distributes and consumes his goods and services
C. Man buys, sells and distributes goods and services
D. Raw materials are changed into finished goods

Question 2:

• JAMB 1994

Which of the following groups is paid first when a firm liquidates?

A. Preference shareholders
B. Debenture holders
C. Ordinary shareholders
D. Cumulative preference shareholders

Question 3:

• JAMB 2019

A partnership may be automatically dissolved due to the following factors except________

A. Court verdict
B. Joint decision
C. Admission of new partners
D. Bankruptcy of a partner

Question 4:

• JAMB 2019

The process of winding up or bringing a company to an end is________

A. Dissolution
B. Liquidation
C. Integrating
D. Merger

Question 5:

• JAMB 1994

Compulsory dissolution of a business can arise from

A. An agreement by the owners
B. A declaration by a court of law
C. The termination of its life
D. An unfavourable economic climtate