WAEC Past Questions and Answers - Page 17

81.

A person's deliberate decision to reduce the value of her currency is called

A.

deregulation

B.

inflation

C.

devaluation

D.

revaluation

Correct answer is C

Devaluation; the reduction in the official value of a currency in relation to other currencies.

82.

Which of the following is an advantage of a sole trader?

A.

Guaranteed profit

B.

Quick decision-making

C.

Unlimited liabilty

D.

Buying on credit

Correct answer is B

Sole traders maintain full control of their business. Running it how they please without the interference of others. Decisions are made quicker and faster without having to go through the approval of the board

83.

The money issued by Ola Maro and Co Ltd. in running the day to day activities of the business is represented by

A.

fixed capital

B.

capital employed

C.

paid-up capital

D.

working capital

Correct answer is D

Working capital is the capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.

84.
85.

The difference between current assets and current liabilities is

A.

Issued capital

B.

capital employed

C.

working capital

D.

nominal capital

Correct answer is C

 The difference between current asset and current liability is known as working capital which represents operating capital