1
A syndicate is an/a
- A. association formed by the joining together of firms which were previously independent
- B. association of firms at the same stage of production, formed for the purpose of keeping up prices
- C. association of firms for the regulation of output and prices
- D. combination of firm which carry on the same kind of business such as retailing
- E. company that controls one or more other companies by holding majority of their shares
2
What is a statement of account? It is a/an
- A. note to inform the customer of an addition to his business transaction
- B. original letter sent to customer asking them to settle their bills
- C. statement of acceptance of credit facilities to a customer
- D. summary of customer’s transactions for a given period
- E. summation of goods sold to a customer for a particular item
3
What best explains the principle of subrogation in insurable?
- A. Both parties of the insurance contract must deal openly and honestly with each other and disclose all relevant facts
- B. The right that a person has to stand in the place of another and enjoy all the rights and remedies of that other person
- C. There must be a close connection between the risk insured against and the cause of the loss
- D. The insurer who insures the same risk with more than one insurer can only recover to the extent of the loss and nothing more, in the occurrence of the event
- E. The insured discloses all the material facts which would affect the premium which the insurer charges
4
What best explains the principle of subrogation in insurable?
- A. Both parties of the insurance contract must deal openly and honestly with each other and disclose all relevant facts
- B. The right that a person has to stand in the place of another and enjoy all the rights and remedies of that other person
- C. There must be a close connection between the risk insured against and the cause of the loss
- D. The insurer who insures the same risk with more than one insurer can only recover to the extent of the loss and nothing more, in the occurrence of the event
- E. The insured discloses all the material facts which would affect the premium which the insurer charges
5
………. is NOT a principle of insurance
- A. utmost good faith
- B. particular average
- C. indemnity
- D. subrogation
- E. insurable interest
6
………. is NOT a principle of insurance
- A. utmost good faith
- B. particular average
- C. indemnity
- D. subrogation
- E. insurable interest
7
The reward of capital as a factor of production is
- A. dividend
- B. interest
- C. profit
- D. rent
- E. wages
8
The reward of capital as a factor of production is
- A. dividend
- B. interest
- C. profit
- D. rent
- E. wages
9
ln partnership business, the maximum number of persons for its formation is
- A. five
- B. fifteen
- C. ten
- D. twenty
- E. twenty five
10
What is NOT an instrument of credit?
- A. bills of exchange
- B. cheque
- C. money order
- D. postal order
- E. source document
11
What is NOT a supplementary service of banks?
- A. agents for payment
- B. custody of valuables
- C. dealing in foreign exchange
- D. investments
- E. referees
12
What is NOT a supplementary service of banks?
- A. agents for payment
- B. custody of valuables
- C. dealing in foreign exchange
- D. investments
- E. referees
13
lf the price of a good falls and the demand for that good also fall, then that good is …….
- A. a normal good
- B. an inferior good
- C. a supper good
- D. an expensive good
- E. none
14
lf the price of a good falls and the demand for that good also fall, then that good is …….
- A. a normal good
- B. an inferior good
- C. a supper good
- D. an expensive good
- E. none
15
What is NOT a lecture of a co-operative society?
- A. banks easily lend money to them
- B. it is a corporate body with a right to sue and be sued
- C. members have to buy shares to form the initial capital
- D. members have equal opportunity in the control of the society
- E. there is no liability after shareholding is fully paid
16
What is NOT a lecture of a co-operative society?
- A. banks easily lend money to them
- B. it is a corporate body with a right to sue and be sued
- C. members have to buy shares to form the initial capital
- D. members have equal opportunity in the control of the society
- E. there is no liability after shareholding is fully paid
17
The term ‘caveat emptor’ means ‘let the
- A. account be settled’
- B. buyer beware’
- C. debtor be careful’
- D. manufacturer beware'
- E. seller beware'
18
What is the OBJECT of a co-operative society?
- A. diversify the members’ produce tor international purpose
- B. gain freedom in marketing the members’ produce
- C. indulge in large scale production and earn huge profits
- D. popularize government policies among the members
- E. provide an agency for meeting the economic needs of members
19
What is NOT a characteristic of a Private Limited Liability Company?
- A. a shareholder is not free to transfer his shares to someone without the permission of others
- B. its shares cannot be offered to the public through the stock market
- C. the liability of shareholders is not limited to the amount of shams taken up
- D. the minimum and maximum number of shareholders is seven and infinity respectively
- E. the minimum and maximum number of shareholders is two and fifty respectively
20
What is NOT a characteristic of a Private Limited Liability Company?
- A. a shareholder is not free to transfer his shares to someone without the permission of others
- B. its shares cannot be offered to the public through the stock market
- C. the liability of shareholders is not limited to the amount of shams taken up
- D. the minimum and maximum number of shareholders is seven and infinity respectively
- E. the minimum and maximum number of shareholders is two and fifty respectively
21
What is NOT a principle of an insurance contract?
- A. contribution
- B. indemnity
- C. insurable interest
- D. premium
- E. subrogation