Commerce Questions and Answers
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
The par value of a share is also known as its
premium price
market price
discount price
nominal price
Correct answer is D
Nominal value of a security, often referred to as face or par value, is its redemption price and is normally stated on the front of that security.
Which of the following is not a principle of insurance
Insurable interest
Subrogation
Surrender value
Proximate cause
Correct answer is C
There are seven basic principles that create an insurance contract between the insured and the insurer:
amount permitted to be withdrawn in excess of one's deposit
excessive cash withdrawn by commercial banks from the Central Bank
credit balance standing in the name of a customer
special deposits made by commercial banks
Correct answer is A
The term bank overdraft refers to a withdrawal of money that is greater than the available balance in an account.
A document issued to the public by a company to advertise its share is known as
prospectus
tender
share certificate
trading certificate
Correct answer is A
A prospectus is a formal document that is required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public.
The total assets of a business less its total liability is known as
capital owned
share capital
issued capital
working capital
Correct answer is A
Capital owned: This is the excess of value of asset of a business over its liability. It is the net worth of a business.
Capital owned = assets - liabilities