Private enterprises - Jamb Economics Past Questions and Answers

Question 21:

• JAMB 1985

Which of the following is NOT a part of the fixed costs of a limited liability company?

A. Interest on loans
B. Rent on buildings
C. Depreciation reserves
D. Management expenditure
E. Wages

Question 22:

• JAMB 1986

The most important advantage of co-operative societies is?

A. Their high degree of democracy
B. The increase inthe cost of marketing
C. That member are encouraged to save money
D. The possibility of raising loans for the members

Question 23:

• JAMB 1986

Which of the following is a characteristic of private limited liability company?

A. Its shares can be sold to the public
B. The number of shareholders ranges from fifty to one hundred
C. All shareholders have equal powers and responsibilities
D. The number of shareholders ranges from two to fifty

Question 24:

• JAMB 1986

One of the advantages of a partnership over a sole proprietorship is that?

A. It is the most popular form of business organization
B. The patern can easy withdraw from business
C. It makes an increase in the capital of the business possible
D. There is no limit to the number of people who may bring in capital

Question 25:

• JAMB 1987

The liability of the sole trader is?

A. Indeterminable
B. Unlimited
C. Transferable
D. Limited