JAMB Past Questions and Answers

1.

A put option in the stock exchange is an option

A.

to sell

B.

not to sell

C.

to buy

D.

not to buy

Correct answer is A

A put or put option is a stock market device which gives the owner the right, but not the obligation, to sell an asset at a specified price by a predetermined date (the expiry or maturity) to a given party (the seller of the put).

2.

which of the following statement is true of a debenture?

A.

its holders receive interest

B.

it forms part of a company's authorized capital

C.

its owners are co-owners of the company

D.

its owners control the company

Correct answer is A

In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term "debenture" originally referred to a document that either creates a debt or acknowledges it.

A debenture is thus like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company's capital structure, it does not become share capital.

3.

multilateral trade is carried out 

A.

between two countries only

B.

within many countries

C.

among many countries

D.

between neighbouring countries only

Correct answer is C

Multilateral trade agreements are commerce treaties between three or more nations. The agreements reduce tariffs and make it easier for businesses to import and export. Since they are among many countries, they are difficult to negotiate. That same broad scope makes them more robust than other types of trade agreements once all parties sign.

4.

one disadvantage of a sole proprietorship is?

A.

quick decision making

B.

unlimited liability

C.

pride of ownership

D.

unlimited source of capital

Correct answer is B

The main disadvantages to being a sole proprietorship are: Unlimited liability: Your small business, in the form of a sole proprietorship, is personally liable for all debts and actions of the company. This means that, in the event of winding up, the personal properties of the sole proprietor would be used the settle the debts of the business.

5.

one example of of a product of a construction industry is a

A.

chair

B.

bag of cement

C.

piece of cloth

D.

television

Correct answer is A

Construction is the process of constructing a building or infrastructure. Construction is a general term meaning the art and science to form objects, systems, or organizations. A chair is shaped, fine- tuned and put together and the process of putting all the required material to form a tangible piece, is construction.