Sole-proprietorship - Jamb Economics Past Questions and Answers

Question 1:

• JAMB 2018

Among the disadvantages of the one-man business is the fact that______

A. Its capital may not be increased without government permission
B. The proprietor is personally liable for the firm's debts
C. The proprietor is not able to obtain credit
D. The proprietor may not sue for bad debts

Question 2:

• JAMB 1978

The advantage of sole proprietorship is as follow

A. It is always successful
B. Continuity is no problem
C. Control and supervision is under one man
D. Funds are easy to obtain
E. Inter-generational equity is assured

Question 3:

• JAMB 1980

Which would you NOT consider an advantage of one-man business?

A. Freedom of action
B. Limited liabiities
C. Quick decision-making
D. Personal contact with customers
E. None o the albove

Question 4:

• JAMB 1983

In a sole proprietorship, the decisions are made by the?

A. Governmnet
B. Borad of directors
C. Management
D. Shareholders'conference
E. Owner

Question 5:

• JAMB 1984

One disadvantage of sole proprietorship is its?

A. Limited libility
B. High profits
C. High sense of ownership
D. Low credit rating
E. Low failure rate