WAEC Commerce Past Questions & Answers - Page 15

71.

A term which describes the value of business connections made by a company over the years is known as

A.

patent

B.

copyright

C.

goodwill

D.

trade mark

Correct answer is C

Goodwill; the established reputation of a business regarded as a quantifiable asset and calculated as part of its value when it is sold.

72.

A person who undertakes responsibility for forming a new company is

A.

auditor

B.

solicitor

C.

registrar

D.

promoter

Correct answer is C

 Registrar of Companies is a government official whose duty is to ensure that companies are properly registered, and that, when registered, they file accounts and other information correctly.

73.

The process of winding up a public limited company by a court order is known as

A.

termination

B.

dissolution

C.

voluntary liquidation

D.

compulsory liquidation

Correct answer is D

Compulsory liquidation is a formal insolvency procedure which results in a limited company being forcibly shutdown by way of a court order.

74.

A country is said to achieve a trade surplus when total

A.

visible exports exceed total visible imports

B.

invisible exports exceed total invinsible imports

C.

visible exports exceed total invisible imports

D.

visible imports exceed total visible exports

Correct answer is A

Trade surplus is achieved When the amount by which the value of a country's exports exceeds the cost of its imports.

75.

A physical restriction placed on the quantity of goods thaa quotat can be imported is

A.

a ban

B.

a quota

C.

an excise duty

D.

an import tax

Correct answer is B

A quota; a limited quantity of a particular product which under official controls can be produced, exported, or imported.