Business Organization - Limited Liability Companies

Public Limited Liability Companies

The people involved in the formation of new companies are called

(a)members (b)directors (c)shareholders (d)promoters

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The right that a debenture holder has on the earnings of a company is

(a)lien (b)dividend (c)interest (d)rent

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public enterprises are financed mainly by

(a)shareholders (b)commercial banks (c)government grants (d)world bank

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The operation of a private company is guided by the

(a)Deed (b)Certificate of trading (c)Certificate of incorporation (d)Company act

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Which of the following gets extra dividend after its due fixed of dividend?

(a)preference share (b)cumulative preference share (c)ordinary shares (d)participating preference share

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A private company is one which _____

(a)Must publish its audited account (b)Floats its shares on the stock exchange market (c)restricts the rights to transfer shares (d)is owned by a maximum of twenty members

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Which of the following is used to advertise the shares of a limited liability companies to the public

(a)Memorandum of association (b)Articles of association (c)Certificate of incorporation (d)Prospectus

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A public limited liability company can enter into contracts because it

(a)has many employes (b)has shareholders (c)is a legal entity (d)is allowed to take out debentures

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An advantage of a public limited company over a private one is the

(a)limited liability of shareholders (b)easy transfer-ability of shares (c)access to retained earnings (d)less taxation by government

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If the amount of dividend paid varies according to the level of output, what type of shares is involved?

(a)cumulative preference share (b)preference share (c)deferred share (d)ordinary share

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when a business has unlimited liability

(a)the owners are not responsible for all its financial debits (b)all its profits can be taxed by the government (c)the owners are responsible for all it financial debts (d)it ceases to exists at the death of one of its owners

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In the event of a limited liability going into liquidation, each shareholder

(a)may lose maximum of the amount he has invested (b)loses nothing (c)may have an unlimited liability (d)will lose the amount he has invested plus a proportion of his bank account

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Which of the following is not a public company

(a)Twitter (b)Cocacola (c)Nestle (d)YBNL

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In a sole proprietorship, decisions are made by the

(a)government (b)owner (c)management (d)board of directors

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A stockholder partakes in the profits of a limited liability business by receiving

(a)shares (b)profits (c)interest (d)dividends

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When people buy shares in a company they

(a)lend money to the company (b)become part owners of the company (c)become entitled to some of the product (d)receive interest on shares

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The reward for debenture is

(a)Shares (b)Interest (c)Dividend (d)Profit

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In a public joint stock company, the shareholders is responsible for

(a)buying raw materials (b)personnel management (c)bearing risks (d)manufacturing capital equipment

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A business organization with unlimited liability is ____

(a)a branch of a multinational corporation (b)a partnership (c)a private joint stock company (d)public joint stock company

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Which of the following business organization enjoys greatest flexibility?

(a)joint stock company (b)statutory corporation (c)co-operative (d)sole proprietorship

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A business which is owned by the government with private investors is known

(a)Co-operative (b)Statutory corporation (c)Joint stock company (d)Partnership

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In joint-stock company, shareholders earn

(a)profits (b)interest (c)dividends (d)bonuses

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Separation of ownership and control is possible in

(a)partnership (b)Sole proprietorship (c)co-operative enterprise (d)Public limited liability company

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Joint-stock companies have been necessitated by

(a)specialization (b)the establishment of stock exchange (c)the desire for limited liability (d)large scale production

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Which of the following business units have freely transferable shares?

(a)public corporations (b)partnership (c)private limited liability companies (d)public limited liability companies

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All the following are sources of finance to a joint stock company except

(a)Bank loan (b)Equity shares (c)Debentures (d)Co-operative thrifts

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A firm is said to be a Public joint- stock company when it

(a)is owned by the government (b)operates as a public corporation (c)is a limited liability company (d)sells its shares to member of the public

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The reward of a debenture holder of a public company is a fixed rate of

(a)interest (b)return (c)dividend (d)allowance

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Limited liability in Economics means

(a)a shareholder liability in the event of debt or bankruptcy is limited to the amount he has invested (b)a shareholder liability for the company debt is dependent on how much he is owing (c)shareholders cannot be asked to pay for the debts of the company (d)shareholders want all debts paid equally

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You'll have 20 seconds to answer each question.

Time's Up
Your fingernails and hair keep growing after you die

Result

Total Questions: 9

Attempt: 8

Correct : 3

Wrong: 5

Percentage: 33%

Ralph - O
Ralph - O A lover of tacit change.

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