WAEC Past Questions and Answers - Page 46

226.

Which of the following is used for a single payment of many people at the same time through a bank instead of writing separate cheques?

A.

Debit transfer

B.

Credit transfer

C.

Certified cheque

D.

Crossed cheque

Correct answer is B

Credit transfer is a direct payment of money from one bank account to another that can be made to multiple accounts simultaneously

227.

Which of the following is not an advantage of partnership?

A.

Diversified managerial talents

B.

Greater financial resources

C.

Freedom to terminate business

D.

Account is not made public

Correct answer is C

Advantages of a partnership include that:

  • two heads (or more) are better than one.
  • your business is easy to establish and start-up costs are low.
  • more capital is available for the business.
  • you'll have greater borrowing capacity.
  • high-calibre employees can be made partners.

228.

Which of the following is not a source of fund for sole-proprietorship?

A.

Personal savings

B.

Borrowing from friends and relatives

C.

Borrowing from financial institution

D.

Government bonds

Correct answer is D

Sole proprietorships are not companies – you cannot sell shares to investors to raise capital.  Most times, you'll be relying on your own resources, such as savings and retained profits, borrowing and grants from friends, as well as bank loans and credit cards to raise the money you need.

229.

Which of these qualities guarantees the keeping of money for a long period?

A.

Acceptability

B.

Divisibility

C.

Durability

D.

Homogenity

Correct answer is C

Durability is critical for money to perform the related functions of medium of exchange and store of value.  An item must be able to withstand being used repeatedly.

230.

Sole proprietorship is a form of business owned by

A.

an individual

B.

two or more persons

C.

a registered business subsidiary

D.

the government

Correct answer is A

A sole proprietorship, also known as the sole trader, individual entrepreneurship is a form of business organization, wherein a single person owns, manages and controls, all the business activities