Correct Answer: B. chain stores

Correct Answer: D) Owners private property can be used to settle business debt

Explanation

In this question, the correct option is D: Owners private property can be used to settle business debt. This means that if a business has unpaid debts, the owner's personal property can be taken and sold to pay off those debts.

The other options are incorrect. Option A states that the risk of the owner is limited only to the amount invested, which is not true for businesses with unlimited liability. Option B suggests that debts are paid with subventions, which is not related to unlimited liability. Option C states that the property of the owners should not be used to secure loans, which is also not related to unlimited liability.

It is important for business owners to understand the concept of unlimited liability because it means that their personal assets are at risk if the business fails or accumulates debt. It is one of the factors that entrepreneurs should consider when deciding on the legal structure of their business.

To learn more about this, please read the relevant sections of the recommended textbooks.

Correct Answer: D. a liquidator

Correct Answer: C. indemnity insurance

Explanation

indemnity insurance is an insurance in which the insurer promises to make the insured party whole again for any covered loss in exchange for premiums the policyholder pays.

Correct Answer: D. share

Correct Answer: C) Debentures preference shareholders

Explanation

Ordinary shareholders are the regular shareholders who hold common shares in a company. They have voting rights and are entitled to dividends after all other obligations are met.

Preference shareholders are shareholders who hold preference shares in a company. These shares have certain preferential rights, such as receiving dividends before ordinary shareholders and having a fixed dividend rate.

Debentures preference shareholders are shareholders who hold preference shares that are secured by debentures. Debentures are a type of long-term debt instrument issued by a company to raise funds. In this case, the debentures preference shareholders have a higher priority in receiving payment than ordinary shareholders and preference shareholders.

Cumulative preference shareholders are preference shareholders who are entitled to receive any unpaid dividends from previous years before ordinary shareholders receive their dividends.

Based on this information, the correct answer to the question is Option C: Debentures preference shareholders. They are paid first when a firm liquidates because their shares are secured by debentures, giving them a higher priority in receiving payment.

It's important to note that the order of payment may vary depending on the specific circumstances and agreements of the company. However, in general, debentures preference shareholders have a higher priority in receiving payment compared to other shareholders. To learn more about this topic, please refer to the relevant sections of your Commerce textbooks.

Explanation

(a) Functions of a cartel:

Regulation of production and price: A cartel regulates the production and raises the price of their products/services.

Regulation of production: The organization, to a large extent, has succeeded in allocating production quotas to member states.

Restriction of output Members of a cartel can also agree to prevent, restrict or limit the goods or services they are buying or selling or the goods or services that would likely be bought and sold.

Bid rigging: A cartel does this through an agreement among its members about who should win a bid among them.-

Market sharing: This occurs when businesses collude to carve up markets as regards the sale of a specific product, a geographical area, or a specific type of customer or consumer. among them.

(b)Advantages of public enterprises:

i. Provision of infrastructural facilities: Public enterprises provide infrastructural facilities such as roads, schools, railways, electricity, etc. to the populace.

ii. Availability of large capital: Since public enterprises are owned by the government, there is always availability of sufficient capital to ensure the expansion of the enterprises.

iii. There is continuity: Public enterprises can last for a long period of time. In other words, there is perpetual existence.

iv. Development of capital projects: The establishment of public enterprises can ensure the development of capital projects, e.g. rural electrification.

v. Avoidance of exploitation of consumers: Public enterprises are consumer-conscious as they ensure that the exploitation of consumers is greatly reduced.

vi. Creation of higher standards: The government enters into business in order to ensure higher standards, e.g provision of educational facilities.

vii. Accountability to the public: Public enterprises are accountable to the public because they have to submit their annual reports to the parliament.

viii. They cater for the interest of workers: in public enterprIses, the interest of the workers is catered for and the employees have a great sense of security

ix. Provision of employment opportunities: Public enterprises provide employment opportunities for the teeming number of the unemployed.

x. Generation of revenue: Revenue is generated by the government from public enterprises, e.g. water rate or electricity bill, to finance other projects

Disadvantages of public enterprises:

i. Large capital requirement: The cost of establishing a public Corporation is very high, i.e. large capital is involved.

ii. Government interference: Government can interfere in the activities of public enterprises through the appointment of unqualified and incompetent people as board members.

iii. Inefficiency in operation: Lack of competition can bring about inefficiency in business operations.

iv. Danger of monopoly: Public enterprises are monopolistic in nature, e.g. NEPA (now PHCN); hence, it can abuse the privileged.

v. Bureaucratic tendencies and red-tapism: Decision making may be slow because it has to pass through many people or channels before approval

vi. Corruption and mismanagement: Many public enterprises In Nigeria have become the major areas for embezzlement and mismanagement of the nation's resources

vii. Wastage: In public enterprises, wastages are usually recorded, and the taxpayers bear the brunt.

Correct Answer: A. profit-making

Correct Answer: D. factor

Correct Answer: C. stock