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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

  1. 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.

  2. 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.

  3. 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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