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Public Corporation, Stock and Debentures

Total questions: 25

Worksheet time: 21mins

Name
Class
Date
1.

Dividends are_____?

a)

Money shareholders lose in stock.

b)

Money shareholders pay to buy stock.

c)

Stock that splits.

d)

Money shareholders received from stock profits.

2.

What is a Stock

a)

Car

b)

Animals

c)

the capital raised by a business or corporation through the issue and subscription of shares,

d)

Used in cooking

3.

Shareholders run the business

a)

TRUE

b)

FALSE

4.

Shareholders run the business

a)

TRUE

b)

FALSE

5.

What are the characteristics of a corporation?

a)

Seperate legal entity

b)

Perpetual succession

c)

Mutual agency

d)

Limited liability

6.

Which of the following comes under the category of owner’s funds:

a)

Equity shares

b)

Retained earning

c)

Both Equity & retained earning.

d)

None of the above

7.

Preference shares and debentures comes under the category of:

a)

Short term funds

b)

External source of funds

c)

Long term funds

d)

Both external source of funds & long term funds.s

8.

The funds which are required to purchase land, building and furniture comes under:

a)

Fixed capital requirement

b)

Working capital requirement

c)

Further capital requirement

d)

Finance capital requirement

9.

What do you mean by business finance:

a)

It is the requirement of funds by a business to carry out its various activities.

b)

It is the requirement of profits by business to carry out its various activities.

c)

It is the requirement of liabilities by a business to carry out its various activities.

d)

It is the requirement of customers by business to carry out its various activities.

10.

_________is called the lifeblood of any business enterprise:

a)

Profit

b)

Loss

c)

Finance

d)

Assets

11.

Which one of the following is not the feature of preference shares:

a)

Provides fixed rate of return

b)

Provides voting rights

c)

Get Preference over equity shares

d)

Part of owner’s capital

12.

Retained earnings is also known as:

a)

Residual owners of the company

b)

Loan capital of the company

c)

Short term capital of the company

d)

Ploughing back of profits

13.

Preference shareholders are called :

a)

Partners of the company

b)

Owners of the company

c)

Executives of the company

d)

Guardians of the company

14.

All the following statements are true of cooperative societies EXCEPT

a)

they are democratic in nature

b)

they do not make profit

c)

they provide goods and services to members at a reasonable price

d)

members can pool resources either to produce goods and services or purchase consumer goods

15.

The main objective of a public corporation is

a)

make profit

b)

control every industry

c)

issue shares and debentures to the general public

d)

carry out operations for the welfare of the people

16.

All the following are advantages of public enterprises EXCEPT

a)

embezzlement of funds by officials

b)

it takes care of essential projects of large capital requirement

c)

it provides employment

d)

production cost is low and goods and services produced are relatively cheaper

17.

The following are examples of public enterprises EXCEPT

a)

Nigerian Ports Authority

b)

Nigerian National Petroleum Corporation

c)

Nigerian Railway Corporation

d)

United African Company (UAC) Plc

18.

If a public limited company wants to obtain a long-term loan from the general public, it will issue

a)

debit note

b)

debentures

c)

invoice

d)

loan vouchers

19.

Which of the following is not an advantage of a limited company?

a)

Continuity even if a shareholder dies

b)

Separate existence from its owners

c)

Exemption from paying tax to the government

d)

Right to own assets

20.

The letters PLC written after a company's name is called

a)

private limited company

b)

private liability company

c)

public limited company

d)

public liability company

21.

An institution where stocks are bought and sold.

a)

Public Market

b)

Stock Market

c)

Flea Market

d)

Supermarket

22.

An institution where stocks are bought and sold.

a)

Public Market

b)

Stock Market

c)

Flea Market

d)

Supermarket

23.

A business that is owned by one person.

a)

capital

b)

corporation

c)

sole proprietorship

d)

share of stock

24.

When two business enterprises agree to join together for a common objective and mutual gain. it gives rise to

a)

(a) Partnership

b)

(b) Joint venture

c)

(c) Joint stock company

d)

(d) MNC

25.

Which one of the following is NOT a public sector undertaking?

a)

Departmental undertaking

b)

(b) Partnership

c)

(c) Government companies

d)

(d) Statutory corporation