Business Organizations
Economics · 50 practice questions
Private enterprises (sole proprietorship, partnership, limited liability companies, cooperative societies) and their problems; public enterprises and their problems; funding and management of business organizations; factors determining firm size; privatization and commercialization as solutions to public-enterprise problems.
- Compare the types and basic features of private business organizations.
- Identify the features and problems of public enterprises.
- Identify the factors determining the size of firms.
- Differentiate between privatization and commercialization and compare their advantages/disadvantages.
Try a few questions
- Practice question 1
A business's "goodwill" as an intangible asset mainly reflects
- A.the total cash held in its bank account
- B.the value of its reputation and established customer relationships
- C.the value of its physical machinery and buildings
- D.the amount of tax it owes government
Show the answer
B. the value of its reputation and established customer relationships
Goodwill captures reputational and relationship value beyond physical assets.
- Practice question 2
A limited liability company differs from a sole proprietorship because
- A.the owner has unlimited personal liability
- B.it cannot raise capital from the public
- C.it has only one owner by law
- D.shareholders' liability is limited to their share investment
Show the answer
D. shareholders' liability is limited to their share investment
Limited liability caps shareholders' loss at their investment.
- Practice question 3
Three partners share profit equally. If total profit is ₦180,000, each partner receives
- A.₦90,000
- B.₦45,000
- C.₦180,000
- D.₦60,000
Show the answer
D. ₦60,000
Equal share = 180,000 ÷ 3 = 60,000.
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