NECO Past Questions and Answers - Page 57

281.

Which holder receives interest?

A.

cumulative preference

B.

debenture

C.

non-cumulative

D.

ordinary share

E.

preference shares

Correct answer is B

No explanation has been provided for this answer.

282.

When one party to a contract refuses to perform the obligations assumed under the contract, there is

A.

breach of contract

B.

frustration

C.

operational law

D.

performance

E.

voluntary agreement of the parties

Correct answer is A

No explanation has been provided for this answer.

283.

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

Correct answer is B

No explanation has been provided for this answer.

284.

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

Correct answer is D

No explanation has been provided for this answer.

285.

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

Correct answer is B

No explanation has been provided for this answer.