Correct Answer: D. deed of partnership

Correct Answer: D. Advertising

Correct Answer: A. Government does not nationalize businesses owned by its citizens

Correct Answer: A. Post Office Box

Explanation

(a) Problems of rail transport in Nigeria are:

(I) The train may be slower on short routes.

(ii) The cost of running rail transport is enormous.

(iii) Rail transport is characterised by delays and so may be unsuitable where goods are needed to be delivered very fast.

(iv) Trains cannot deliver directly to the customer. It usually has to rely on road transport to deliver goods to the final destination goods to the final destinations.

(v) Trains cannot move into warehouses or factory premises to collect goods.

(b)(i) Tramp liners; have no defined route and do not run on schedule. They are used as cargo taxi cabs in water transport and are smaller in size than ocean liners. They can be used in carrying goods anywhere they are found.

(ii) Ocean liners; include passenger and cargo liners. Cargo liners are ships used in carrying goods along high seas and oceans. Cargo liners operate on schedule and they have specific routes. Passenger liners are ships used in carrying passengers on high seas and oceans. They operate on schedule and have specific routes also.

Correct Answer: B. government

Explanation

(a) Sources of Capital for a public limited company are:

(i) Sale of shares to the public.

(ii) Bank loan and overdrafts.

(iii) Debentures.

(iv) Equipment leasing.

(v) Ploughing back of profit.

(vi) Hire purchases.

(vii) Bill of Exchange.

(b) Advantages of public limited company are:

(i) The business will become a legal entity: It can sue and be sued as a corporate body.

(ii) The company enjoys limited liability: The shareholder's liability is limited to the amount of shares held, or agreed to purchase.

(iii) The public limited company has ability to raise large capital by offering shares of various types to the public.

(iv) The public limited company has a continuous existence independent of its members. The death of even the largest shareholders does not affect its existence.

(v) The public limited company operates on a large scale and therefore enjoys the economies of large scale.

(vi) It can easily raise loans e.g debentures.

(vii) It has enough capital to engage specialists.

Disadvantages of converting a business into a public limited company are:

(I) The law requires several formalities to be performed before a limited liability company is created. These formalities cost quite a lot of money.

(ii) It is slower to make decisions in a limited company than in the case of a sole trading business. This is simply because more people are involved in decision making processes.

(iii) The management of the company are not the actual owners of the business.

(iv) There is very little privacy in its affairs as it is required to publish its account to the public.

(v) Unlike the case of the partnership, owners of a limited company do not have a personal touch with their business.

Correct Answer: C. privatization

Correct Answer: C. circulating capital

Correct Answer: D. receive dividends after other shareholders