A business becomes a separate legal entity after it has
A) started operation
B) been incorporated
C) been insured
D) been accepted by the public
Correct Answer: B) been incorporated
Explanation
This Commerce question is asking when a business becomes a separate legal entity. The options are: A) started operation, B) been incorporated (which is the correct answer), C) been insured, and D) been accepted by the public.
To answer this question, we need to understand what a separate legal entity is. A separate legal entity means that a business is considered a legal person, separate from its owners. This means that the business can enter into contracts, sue and be sued, and own property in its own name.
Now, to become a separate legal entity, the business needs to be incorporated. Incorporation is the process of legally forming a corporation, which creates a separate legal entity. This process involves filing documents with the government, such as articles of incorporation, and paying fees.
Starting operation, being insured, or being accepted by the public are not the correct answers. Starting operation simply means the business has begun operating, but it does not necessarily mean it has become a separate legal entity. Being insured means the business has obtained insurance, but this does not relate to its legal status. Being accepted by the public is also not related to its legal status.
Therefore, the correct answer to this Commerce question is Option B: been incorporated.
View Discussion (0)POST UTME OAU
1292
An example of a trade association is?
A. ALGON
B. NLC
C. NURTW
D. NULGE
Correct Answer: A. ALGON
View Discussion (0)JAMB 2011
1293
Which of the following must be submitted to the Registrar of Companies before the company is incorporated?
A. Articles of Association and Certificate of Incorporation
B. Memorandum of Association and Certificate of Incorporation
C. Articles of Association and Memorandum of Association
D. Memorandum of association and Prospectus
Correct Answer: C. Articles of Association and Memorandum of Association
View Discussion (0)WAEC 1991 OBJ
1294
The term Plc implies that the are available
A. to the public at the company
B. privately on the stock exchange
C. publicly on the stock exchange
D. publicly in commericial banks
Correct Answer: C. publicly on the stock exchange
View Discussion (0)JAMB 2000
1295
Use the diagram to answer the question below.
X represent
A) action
B) transmission
C) receiver
D) ideation
Correct Answer: C) receiver
View Discussion (0)POST UTME OAU
1296
In the case of a voluntary liquidation of a business the receivers is appointed by the by the
A. creditors
B. debtors
C. directors
D. shareholders
Correct Answer: A. creditors
View Discussion (0)JAMB 1995
1297
The abbreviation phrase E & OE is usually printed on?
A. an invoice
B. a cheque
C. a delivery note
D. a debit note
Correct Answer: A. an invoice
View Discussion (0)WAEC 2000 OBJ
1298
Chibuzor agreed to make a dress for Hauwa with september 20, 1995 as a delivery date, if the dress was not ready on that date, Hauwa could
A. sue chibuzor for specific performance
B. seize another gown from chibuzor's shop
C. regard the contract between then as terminated
D. sue chibuzor for damage
Correct Answer: A. sue chibuzor for specific performance
View Discussion (0)JAMB 2021
1299
which of the following is a disadvantage of retailing
A. selling on credit
B. lower prices of goods
C. selling in smaller quantities
D. located at convenient places
Correct Answer: A. selling on credit
View Discussion (0)WAEC 2015 OBJ
1300
The process of putting goods in attractive packets to arouse the interest of customers is
