WAEC Commerce Past Questions & Answers - Page 35

171.

Which of the following pieces of information would be found in a typical debit note

A.

Customer code

B.

Date of invoice

C.

Brief reason for the debit

D.

E & O.E

Correct answer is C

No explanation has been provided for this answer.

172.

Rights issue is the

A.

individual's right to be issued shares n subscription

B.

right of shareholders to voteon issues

C.

preferntial right to returns on shares

D.

shares offered to existing shareholders at a cheaper price

Correct answer is D

Right isues is an issue of shares offered at a special price by a company to its existing shareholders in proportion to their holding of old shares.

173.

The relationship which subsists between between two or more persons carrying on a business with a view to profit" is

A.

cooperative society

B.

partnership

C.

public limited company

D.

credit union

Correct answer is B

A partnership is an arrangement between two or more people to oversee business operations and share its profits and liabilities.

174.

Liquid capital in a business means the

A.

movable assets of the business

B.

authorised capital

C.

issued capital

D.

assets easily convertible to cash

Correct answer is D

Liquid capital, or fluid capital is a readily convertible asset, such as money or other bearer economic instruments, as opposed to a long term asset like real estate.  It is the asset that is easily converted to cash

175.

Trade as a division of commerce is usually classified into

A.

retail and whole sale

B.

import and export

C.

home and foreign

D.

visible and invisible

Correct answer is C

Trade is divided into;
- Home or domestic trade
- Foreign or international trade