Merits and demerits 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 2019

One of the disadvantages of Sole Proprietorship is__________

A. It requires small operations
B. It involves small capital
C. It lacks specialization
D. Grants from government

Question 3:

• 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 4:

• JAMB 1998

One advantage the co-operative society has over the company is that the

A. The latter pays tax while the former does not
B. Former attract more capitals than the later
C. Members of the former is usually morethan the latter
D. Former, unlike the latter, has limited liabities

Question 5:

• JAMB 2000

Which of these is both merit and demerit in partnership?

A. The number of partners
B. It unlimited nature
C. The bearing of risk
D. The withdrawal of a major partner