JAMB Economics questions: Business organisations

15 questions with answers and explanations. Tap an option to check yourself.

1. Question 1· Business organisations· JAMB

   A major disadvantage of a sole proprietorship is

   • Akeeping all profits
   • Bquick decision-making
   • Cunlimited liability
   • Dclose contact with customers

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   Explanation and discussion

2. Question 2· Business organisations· JAMB

   An advantage of a partnership over a sole proprietorship is

   • Amore capital and shared skills
   • Blimited liability for all partners
   • Cperpetual existence
   • Dno need for agreement

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3. Question 3· Business organisations· JAMB

   A partnership's main advantage over a sole proprietorship is

   • Amore capital and shared skills
   • Blimited liability for all
   • Cperpetual succession
   • Dno disagreements

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4. Question 4· Business organisations· JAMB

   Co-operative societies are run on the principle of

   • Aone member, one vote
   • Bone share, one vote
   • Cthe largest shareholder decides
   • Dgovernment control

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5. Question 5· Business organisations· JAMB

   A private limited company cannot

   • Aborrow money
   • Bhave shareholders
   • Cmake profit
   • Doffer its shares to the general public

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6. Question 6· Business organisations· JAMB

   Perpetual succession means a company

   • Adies with its owner
   • Bcontinues to exist despite changes in owners
   • Cmust close yearly
   • Dhas one owner

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7. Question 7· Business organisations· JAMB

   Limited liability means that shareholders

   • Acan lose only the money they invested in the company
   • Bmust pay all the company's debts
   • Ccannot sell their shares
   • Dmanage the company daily

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8. Question 8· Business organisations· JAMB

   The shares of a public limited company can be

   • Atransferred only with government approval
   • Bheld by only one person
   • Csold only to family members
   • Dsold to the general public through the stock exchange

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9. Question 9· Business organisations· JAMB

   Public corporations are owned by

   • Aa single individual
   • Bshareholders on the stock exchange
   • Cthe government
   • Dpartners

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10. Question 10· Business organisations· JAMB

    Public enterprises are set up mainly to

    • Aprovide essential services
    • Bmaximise private profit only
    • Cpay dividends to shareholders
    • Dcompete abroad

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11. Question 11· Business organisations· JAMB

    A public limited company can raise capital by

    • Aissuing shares to the public
    • Bprinting money
    • Ccollecting taxes
    • Dfixing prices

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12. Question 12· Business organisations· JAMB

    The profits of a public corporation are mainly used for

    • Apaying private shareholders
    • Bimproving services or paid to government
    • Cadvertising
    • Dpaying taxes abroad

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13. Question 13· Business organisations· JAMB

    A holding company is one that

    • Aholds only cash
    • Bowns controlling shares in other companies
    • Cis owned by the government
    • Ddoes not trade

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14. Question 14· Business organisations· JAMB

    The main source of capital for a sole proprietor is

    • Adebentures
    • Bthe sale of shares
    • Chis personal savings
    • Dgovernment grants

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15. Question 15· Business organisations· JAMB

    A producer cooperative is formed by

    • Aproducers who pool resources to produce and market goods
    • Bconsumers only
    • Cbanks
    • Dgovernment

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    Explanation and discussion