SECTION A
QUESTION 1
1.1 Various options are provided as answers to the following questions.
Select the correct answer and simply write the letter (A – D) in the block provided alongside each question.
1.1.1 Government budgets and allocations to the various sectors forms part of the ...............
A. Fiscal Policy.
B. Monetary Policy.
C. Micro-lending.
D. REPO rate.
1.1.2 Which of the following are the characteristics of the company Urban Brew Ltd:
i. It’s name ends with proprietary limited ii. The liability of shareholders is limited iii. Meeting of shareholders are required iv. The public are invited to buy shares
v. Shares are freely transferable vi. The are 1 – 10 members Choose the correct combination:
A. i, ii, iii and iv
B. ii, iii, iv and v
C. ii, iii, v and vi
D. i, iii, v and vi
1.1.3 The name of this type of company must end in “Incorporated”.
A. State Owned Company
B. Public Company
C. Personal Liability Company
D. Non-Profit Companies
1.1.4 Which of the following is not considered a reason for international trade?
A. Geographical position
B. Comparative advantage of products
C. Lack of technology in developing countries
D. International economic sanctions
1.1.5 These are the main risk-bearing shares. Holders of these shares receive their dividends out of the profits remaining after the preference shareholders have been paid their fixed dividends.
A. Preference shares
B. Distributable reserves
C. Debentures
D. Ordinary shares
1.1.6 A written guarantee from a bank that it will purchase any shares remaining, in order to make up the minimum subscription.
A. Preliminary expenses B. Minimum subscription C. Underwriting of shares D. None of the above
1.1.7 A protection mechanism for companies to ensure that strategic and critical information on the way the company operates.
A. The Basic Conditions of Employment Act
B. Restraint of trade