Business Organization 3

Multiple Choice

What is the main source of capital for a sole proprietorship business?

• Personal savings or loans from family and friends and banks

• Credit card debt
• Government grants
• Venture capital funding

Multiple Choice

What is the maximum number of shareholders in a private limited liability company?

• 100
• 50
• 10
• 30

Multiple Choice

What is the main disadvantage of a partnership business structure?

• Slow decision-making
• Ease of establishment
• Pride of ownership
• Limited liability

Multiple Choice

What document regulates the internal relationships between the members of a limited liability company?

• Memorandum of Partnership
• Deed of Incorporation
• Shareholder Agreement
• Articles of Association

Multiple Choice

What can lead to the dissolution of a partnership business?

• Greater capital base
• Disagreement among partners
• Ease of establishment
• Ability to issue debentures

Multiple Choice

What are public enterprises also known as?

• Government corporations
• Non-profit organizations
• International corporations
• Private businesses

Multiple Choice

Which of the following is an example of a public corporation in Nigeria?

• Nigeria Railway Corporation
• Toyota
• ExxonMobil
• McDonald’s

Multiple Choice

What is the main source of capital for public enterprises?

• Grants from the government
• Personal savings
• Foreign aid
• Venture capital

Multiple Choice

Why does the government own public enterprises?

• To provide essential services to citizens
• To maximize profits
• To avoid competition with private firms
• To exploit citizens for wealth

Multiple Choice

What is an advantage of multinationals for the country?

• Creation of more jobs
• Decrease in foreign investment
• Increase in unemployment
• Increase in government's tax revenue

Multiple Choice

Why do firms become multinationals?

• To avoid taxes
• To expand into different markets
• To increase importation
• To reduce costs

Multiple Choice

What is a disadvantage of multinationals for the country?

• Increase in GDP
• Benefit from economies of scale
• Creation of more jobs
• Influence on government and economy

Multiple Choice

What is a category of public enterprises?

• Public-private partnerships
• Multinational companies
• Private corporations
• Quasi-Government Departments