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Commerce Past Questions and Answers

Commerce Questions

Question 136:
A distinguishing characteristics of a limited liability company is that it
  • A Is a collection of many sole proprietors
  • B Is a multiple partnership
  • C Can sue and be sued
  • D Has limited resources
View Answer & Explanation
Question 137:
Which of the following takes place when firms producing at different stages in the same industry combine?
  • A Conglomeration
  • B Vertical integration
  • C Horizontal integration
  • D Cartel
View Answer & Explanation
Question 138:
Which of the following groups is paid first when a firm liquidates?
  • A Preference shareholders
  • B Debenture holders
  • C Ordinary shareholders
  • D Cumulative preference shareholders
View Answer & Explanation
Question 139:
Compulsory dissolution of a business can arise from
  • A An agreement by the owners
  • B A declaration by a court of law
  • C The termination of its life
  • D An unfavourable economic climtate
View Answer & Explanation
Question 140:
What are fixtures and fittings in a balance sheet?
  • A Liquid capital
  • B Current assets
  • C Fixed assets
  • D Working capital
View Answer & Explanation