Business Organizations - Jamb Economics Past Questions and Answers

Question 61:

• JAMB 1989

Which of the business organization listed below is characterized by limited authority and liability of the individual owners?

A. Sole properitorship
B. Partnership
C. Joint stock company
D. Co-operative society

Question 62:

• JAMB 1989

A company is said to be highly geared if the?

A. Value of fixed interest loans is high compared with share capital
B. Value of shared capital is high compared with fixed interest loans
C. Dividend rate is high
D. Interest rate is high

Question 63:

• JAMB 1990

A major difference between a state-owned enterprise and a private enterprise is that the former?

A. Is not expected to cover its costs of production while the latter is
B. Is not always expected to maximize profits while the latter is
C. Has shareholders while the latter does not
D. Has a board of directors while the latter does not

Question 64:

• JAMB 1990

Divorce of ownership from control is a characteristic of?

A. Sole properitorship
B. A limited liability company
C. Partnership
D. A private limited company

Question 65:

• JAMB 1990

Capital provided by individuals to the firm by purchasing stocks is called?

A. Debt capital
B. Fixed capital
C. Circulating capital
D. Equlity capital