When a share with a nominal value of #50 is quoted at #70, it is being sold
- A. cum div
- B. ex-div
- C. at a discount
- D. at a premium
One of the functions of a trade association is to
- A. pay members salaries
- B. promote members' welfare
- C. provide loans to members
- D. provide employment for members
A cheque is specially crossed if
- A. the name of the account holder is written between two parallel lines drawn across it
- B. it could be paid over the counter
- C. the name of the bank is written between two parallel lines drawn across it
- D. only two parallel lines are drawn across it
A document used to ensure correct payment of duty at the importing country is
- A. documentary credit
- B. consular invoice
- C. certificate of origin
- D. bill of lading
Central banks sell treasury bills to the public to
- A. increase cash in the banking system
- B. raise revenue for commerical banks
- C. raise revenue for private investors
- D. reduce cash in circulation
Which of the following is not a characteristic of a commercial bank?
- A. Established as limited liability company
- B. Established by individuals or organizations
- C. Established to issue bank notes
- D. Established with the view of making profit
Dealers in stock exchange such as bulls, bears and stags are categorized as
- A. actuaries
- B. promoters
- C. speculators
- D. underwriter
The principle which prevents an insured from receiving a claim that is more than the value of the loss, if the property is insured by more than one company is
- A. indemnity
- B. contribution
- C. proximate cause
- D. uberrimae fidei
The incentive given to a buyer to encourage prompt payment is
- A. cash discount
- B. seasonal discount
- C. quantity discount
- D. trade discount
A document that instructs an agent to buy goods from a named firm is
- A. proforma invoice
- B. open indent
- C. consular invoice
- D. closed indent
One of the functions of commerical banks that cannot be performed by central banks is
- A. collection of old notes
- B. collection of deposits from the public
- C. issuance of treasury bills
- D. printing of bank notes
The quality of money which makes it possible to buy goods in small quantities is
- A. portability
- B. homogeneity
- C. divisibility
- D. durability
A country’s visible balance of payment is made up of
- A. interest on loans to foreign countries
- B. profit from investment abroad
- C. earnings from goods exported
- D. dividend earned from companies
A retail store that sells a single product from a particular manufacturer is a
- A. tied shop
- B. shopping mail
- C. hypermarket
- D. chain store
Which of the following groups would advocate for the supply of constant electricity to households?
- A. Consumer's association
- B. Credit union
- C. Employer's association
- D. Labour union
A partner who contributes only his name to the formation of a partnership is
- A. a nominal partner
- B. a limited partner
- C. a general partner
- D. an active partner
Use the information below to answer questions 13 and 14
| # | |
| Sales | 50,000.00 |
| Debtors | 10,000.00 |
| Cash in hand | 5,000.00 |
| Opening stock | 30,000.00 |
| Creditors | 8,000.00 |
| Purchases | 16,000.00 |
| Overdraft | 12,000.00 |
| Closing stock | 10,000.00 |
- A. #35,000.00
- B. #20,000.00
- C. #15,000.00
- D. #14,000.00
Use the information below to answer questions 13 and 14
| # | |
| Sales | 50,000.00 |
| Debtors | 10,000.00 |
| Cash in hand | 5,000.00 |
| Opening stock | 30,000.00 |
| Creditors | 8,000 |
- A. #35,000.00
- B. #20,000.00
- C. #5,000.00
- D. #14,000.00
An internal source of finance to an enterpreneur is
- A. trade
- B. retained earning
- C. overdraft
- D. debenture
Which of the following documents would a shareholder inspect to know his voting rights?
- A. Articles of Association
- B. Certificate of Incorporation
- C. Certificate of Trading
- D. Memorandum of Association
A retail business that sells goods by post, using catalogue is a
- A. chain store
- B. department store
- C. mail order firm
- D. shopping mail