Operating a state owned enterprise with the intention of making more profit is

• A. nationalization
• B. deregulation
• C. privatization
• D. commercialization

If a partnership deed is silent on how profits are to be shared, partners share profits

• A. in the ratio of the value of business secured by each partner for the partnership
• B. in the ratio of partner capital contributions
• C. in an equal proportion irrespective of partners's capital contributons
• D. according to duties performed by each partner

A group of companies formed to carry out an activity that is beyond the ability of any individual company is

• A. a subsidiary
• B. a merger
• C. a consortium
• D. an acquisition

Use the information below to answer question 39 and 40. Musa rented a room to adamu for N1,500 and N1,000 part-payment was made. Adamu brought Audu and Jacob his friends to stay in the room. The two friends later paid balance of N500 to Musa. Who are the parties to the contract of renting the room?

• A. Musa and Jacob
• B. Musa and Audu
• C. Adamu and Musa
• D. Audu and Jacob

When a firm speaker of stock appreciation, it refers to

• A. change in the value of its stocks resulting from price movement
• B. increase in the price of it shared quoted on the stock exchange
• C. an unexpected increase in the demand of its stock
• D. the value of its stock in the stock exchange

An artificial barrier to international trade is?

• A. political unrest
• B. culture of the people
• C. units of measurement
• D. custom duties

(a)Distinguish between Authorized Capital and Called-up Capital

(b) Use the following information to answer the questions that follow: XYZ Limited is a trading company. The following transactions took place in the month of February:

Purchase of goods -

32 suitcases at N3,500 each

42 shirts at N800 each.

Additional information:

(i) The cost of transporting goods to the firm's premises was #2,500

(ii) Two workers of the firm were paid wages and salaries of 4,500 each.

(iii) Total sales revenue was N180,000. You are required to calculate the: (a) gross profit (b) net profit.

Mr. Taju entered into a contract to let a car to Mr. Funbi for his wedding for two days. However, the car had an accident before the first day. Mr. Funbi attempted to Claim damages but failed. This implies that the contract was terminated by

• A. bankruptcy
• B. breach
• C. lapse of time
• D. frustration

If a company is described as listed it means

• A. its shares can be traded on the stock exchange
• B. It is about to be voluntarily liquidated
• C. it is duly registered by the registrar of companies
• D. it has been blacklisted

When the buyer of an existing share is to receive the pending dividend, the price is

• A. cum div
• B. ex-div
• C. at par
• D. at a discount