JAMB and WAEC Economics questions: Business organisations

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

1. Question 21· Business organisations· JAMB

   Public corporations are owned by

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

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   Explanation and discussion

2. Question 22· Business organisations· WAEC

   Shareholders of a limited liability company can lose at most

   • Atwice their investment
   • Ball their personal property
   • Cnothing at all
   • Dthe amount they invested

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   Explanation and discussion

3. Question 23· 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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   Explanation and discussion

4. Question 24· 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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   Explanation and discussion

5. Question 25· 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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   Explanation and discussion

6. Question 26· 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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   Explanation and discussion

7. Question 27· 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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   Explanation and discussion

8. Question 28· Business organisations· WAEC

   A public corporation is owned by

   • Athe government
   • Bshareholders on the stock exchange
   • Cpartners
   • Dcooperative members

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   Explanation and discussion

9. Question 29· 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