Business Units
Commerce · 50 practice questions
Forms and features of business units (sole proprietorship, partnership, limited liability companies, public corporations, cooperative societies); registration of businesses; business mergers; determination of choice of business unit; dissolution and liquidation; merits and demerits.
- Identify the forms and features of business units.
- Analyse the procedures for registering businesses.
- Appraise the forms of and reasons for business mergers.
- Examine the factors determining the choice of business unit.
- Differentiate between dissolution and liquidation of a business.
Try a few questions
- Practice question 1
'Liquidation' of a company refers to the process of
- A.Winding up the company's affairs, selling its assets, and distributing proceeds to settle debts and any remaining balance to owners
- B.Changing the company's name only
- C.Merging with another company
- D.Increasing the company's share capital
Show the answer
A. Winding up the company's affairs, selling its assets, and distributing proceeds to settle debts and any remaining balance to owners
Liquidation is the process of winding up a company, selling assets, settling debts and distributing any remainder.
- Practice question 2
The registration of a business name or company in Nigeria is typically handled by the
- A.Nigerian Stock Exchange
- B.Central Bank of Nigeria
- C.Federal Inland Revenue Service
- D.Corporate Affairs Commission (CAC)
Show the answer
D. Corporate Affairs Commission (CAC)
The Corporate Affairs Commission (CAC) handles business name and company registration in Nigeria.
- Practice question 3
A public corporation is a business unit that is typically
- A.Owned and controlled entirely by a single private individual
- B.Owned exclusively by foreign investors
- C.Established and owned by government to provide essential goods or services to the public
- D.Illegal under Nigerian law
Show the answer
C. Established and owned by government to provide essential goods or services to the public
A public corporation is established and owned by government to provide essential public goods or services.
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