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.
Which of the following attracts only interest but leaves the capital unpaid
a long-term loan
a development bond
a redeemable bond
an irredeemable bond
Correct answer is D
Irredeemable bond; a government bond which has no date of maturity and which therefore provides interest but can never be redeemed at full value.
The document that explains the types of shares available for sale to the public is
a prospectus
an invoice
an open indent
a closed indent
Correct answer is A
prospectus is a document giving details of a share offer for the benefit of investors.
syndicate
merger
cartel
consortium
Correct answer is C
Cartel; is a group of independent market participants, whose goal is to improve their profits and/or market position by reducing their mutual competition.
The coming together of a manufacturing business with a firm that markets its products is
backward integration
a consortium
forward integration
a syndicate
Correct answer is C
Forward integration is a business strategy that involves a form of vertical integration whereby business activities are expanded to include control of the direct distribution or supply of a company's products.
The major aim of establishing a public corporation is to
establish a monopoly
provide essential services
provide employment opportunities
encourage specialization
Correct answer is B
Public corporations are established to provide essential services such as electricity, water and postal services at reduced cost. Public corporations generate funds for the government through the services provided for the citizens.