Correct Answer: C. the policy

Correct Answer: D. buyer

Correct Answer: A. called-up capital

Explanation

(a) The type of merger is vertical merger: lt is a merger where companies in the same line of business and at different levels of production come together to form a new company. This is when a company producing new raw materials merges with the one using the raw materials.

(b) Reasons that would have Necessitated the Formation of the Merger: (i) The merger could have resulted from the need for introduction of additional capital to avoid liquidation. (ii) There could be the desire by the firms to maintain stable prices. (iii) The decision to merge could have resulted from the need to achieve economies of scale. (iv) Reduction of overhead cost as a result of removal of duplicated staff could have necessitated the merger. (v) The desire to have regular supply of raw materials could have led to the merger. (vi) The merger could also arise due to the need to reduce the cost of production and increase profit. (vii) The firms could also merge because of the need to check competition and remove its undesirable consequences/achieve large share of the market.

(c) Sources of Finance Available to the Company: (i) Issue of shares:- This is where a newly formed company calls for subscriptions to shares. (ii) Issue of debenture: A debenture is a document conferring a long-term loan to a company. The holder becomes a creditor to the company and he is entitled to a fixed rate of interest whether or not the company makes profit. (iii) Bank loan: Banks advance loans to companies that satisfy the conditions for the loan. A loan is payable with interest at regular intervals (iv) Leasing:- An equipment or property could be rented for use by the new company for a specific number of years. (v) Hire purchase:- This facility is extended to companies to enable them own properties by making a down payment and the balance settled through installments. (vi) Overdraft:- The new company can arrange with the bank to withdraw more than what it has in the account.

Correct Answer: C. assist companies to exchange their securities into cash

Correct Answer: B) I and III only

Explanation

The first factor is the size of the undertakings. This refers to how big or small the business is in terms of its physical and financial resources. For example, a small grocery store would be considered a small-scale undertaking, while a multinational corporation like Coca-Cola would be a large-scale undertaking.

The second factor is the profits generated. This refers to the amount of money a business earns after deducting all the expenses. Businesses aim to make a profit as it indicates their success and sustainability. Profitable businesses can reinvest their earnings to expand and grow.

The third factor is the forms of ownership. This refers to who owns and controls the business. There are different forms of ownership, such as sole proprietorship, partnership, and corporation. Each form has its own advantages and disadvantages in terms of liability, decision-making, and taxation.

The fourth factor is the location of the undertakings. This refers to where the business is situated geographically. The location can affect the success of a business due to factors like proximity to customers, access to resources, and competition. For example, a retail store located in a busy shopping mall may have more customers compared to one located in a remote area.

Based on these factors, the correct answer to the question is Option B: I and III only, which means that the size of the undertakings and the forms of ownership are the factors used to distinguish commercial undertakings.

It's important to note that while profits generated and the location of the undertakings are relevant factors in evaluating businesses, they are not the specific factors mentioned in the question.

Correct Answer: A. Checking smuggling activities

Explanation

i) interest and profit: is the reward earned from the use of capital while profit is the reward for entrepreneurship

ii) Share and debenture: A share shows part ownership of a company while a debenture is debt owned by a company OR A share earns dividend earnss fixed interest

iii) Ordinary Share and Preference share: Ordinary share is a share whose holder is paid after all other shareholders have received their dividends while preference share has no voting right.

iv) Cumulative preference share and participating preference share: Cumulative preference share is a share whose owner is entitled to payment of unpaid dividend during future years when profit is made while a participating preference share is one whose holder is entitled to extra dividend if certain level of profit is attained.

v) Cum div and ex div: If a person buys shares cum div it means that the dividend that is about to be paid will be his; on the other hand, if a person buys shares ex div it means that the dividend that is to be paid will not be paid to him but to the previous owner.

Correct Answer: C. listed for sale on the exchange

Explanation

A listed security is a financial instrument that is traded through a the stock exchange market. when a company is quoted, it means it can be traded in the stock exchange for public subscription.

Correct Answer: B. visible imports exceeds Visible exports