JAMB and WAEC Economics questions: Business organisations

29 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

   Show answer

   Explanation and discussion

2. Question 2· Business organisations· WAEC

   A sole proprietorship is common in Nigeria because

   • Ait has limited liability
   • Bit has unlimited capital
   • Cit is owned by government
   • Dit needs small capital and is easy to start

   Show answer

   Explanation and discussion

3. Question 3· Business organisations· WAEC

   Limited liability means shareholders

   • Acannot vote
   • Bare liable for all debts
   • Ccan lose only the amount they invested
   • Dshare no profits

   Show answer

   Explanation and discussion

4. Question 4· Business organisations· WAEC

   Chinedu provides all the capital for his provision shop, takes all decisions and keeps all the profit. His business is a

   • Asole proprietorship
   • Bpartnership
   • Cprivate limited company
   • Dcooperative society

   Show answer

   Explanation and discussion

5. Question 5· 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

   Show answer

   Explanation and discussion

6. Question 6· Business organisations· WAEC

   A major advantage of a public limited company is that it

   • Ahas unlimited liability
   • Bcan raise capital from the public by selling shares
   • Cis owned by government
   • Dkeeps its accounts secret

   Show answer

   Explanation and discussion

7. Question 7· 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

   Show answer

   Explanation and discussion

8. Question 8· Business organisations· WAEC

   The usual maximum number of partners in an ordinary trading partnership is

   • A10
   • B50
   • C7
   • D20

   Show answer

   Explanation and discussion

9. Question 9· 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

   Show answer

   Explanation and discussion

10. Question 10· Business organisations· JAMB

    A private limited company cannot

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

    Show answer

    Explanation and discussion

11. Question 11· 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

    Show answer

    Explanation and discussion

12. Question 12· Business organisations· WAEC

    A public company fails owing ₦5 million. A shareholder who invested ₦100,000 can lose at most

    • A₦5 million
    • B₦100,000
    • Cnothing
    • Dall his personal property

    Show answer

    Explanation and discussion

13. Question 13· 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

    Show answer

    Explanation and discussion

14. Question 14· Business organisations· WAEC

    A sole proprietorship is a business

    • Aowned by shareholders
    • Bowned and controlled by one person
    • Cowned by government
    • Downed by two to twenty partners

    Show answer

    Explanation and discussion

15. Question 15· 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

    Show answer

    Explanation and discussion

16. Question 16· Business organisations· WAEC

    The Nigerian Ports Authority is an example of

    • Aa partnership
    • Ba sole proprietorship
    • Ca public corporation
    • Da cooperative society

    Show answer

    Explanation and discussion

17. Question 17· Business organisations· WAEC

    A business unit in which one person supplies the capital and takes all the decisions is a

    • Apartnership
    • Bpublic company
    • Csole proprietorship
    • Dcooperative

    Show answer

    Explanation and discussion

18. Question 18· Business organisations· WAEC

    A public limited company raises capital mainly by

    • Aborrowing from friends only
    • Bselling shares to the public
    • Cpartners' contributions
    • Dgovernment grants

    Show answer

    Explanation and discussion

19. Question 19· Business organisations· WAEC

    Cooperative societies operate on the principle of

    • Aone share, one vote
    • Bone member, one vote
    • Cprofit maximisation
    • Dgovernment control

    Show answer

    Explanation and discussion

20. Question 20· Business organisations· WAEC

    Public corporations are set up mainly to

    • Amaximise profit
    • Bsell shares abroad
    • Ccompete with sole traders
    • Dprovide essential services

    Show answer

    Explanation and discussion