WARNING: The questions provided here are selected from previously and Frequently Asked Questions on EBS121 and should NOT be taking for questions that will be asked in your CA. Using the FAQ analysis in selecting the questions, there are possibilities though of coming across similar questions here in your CA BUT our aim is to give everyone the opportunity to practice and understand the subject under discuss rather than relying on EXPOnents for your success.

The following are various federal tax forms that a  sole proprietor need to file EXCEPT

a) form 1040

b) form 4562

c) form 8829

d) form 1050

Which of the forms is referred to as  depreciation  and armornization

a) Form 4562

b) Form 1040

c) Form 8829

d) Form 1050

Form 1065 is also called

a) Individual income tax form

b) Supplemental income cost

c) Partnership return on income

d) Self-employment tax

Which of these represents partner's share of income, credit, deduction?

a) Form 1040 E5

b) Form 1065 k -  1

c) Form 1040

d) Form 4562

When a member�s liability is limited by the constitution of the company to the amount the member has agreed to contribute to the company if the company winds up and goes into liquidation, the company is limited by 

a) share

b) bond

c) guarantee

b) both share and guarantee

Which of the following is not true about a private limited liability company?

 a) lack of privacy

b)  Large operating economies

c) Easy transfer of shares

d) Free from legal restrictions

A company�s charter which defines the limit to the company�s powers is the

a) memorandum of association

b) articles of association

c) certificate of incorporation

d) prospectus

The certificate of incorporation is issued by one of the following bodies

a) Manufacturers Association of Nigeria

b) Chambers of  Commerce

c) Corporate Affairs Commission

d) Nigerian Stock Exchange

The strategy in which investment in a given line of business is cut because the revenue earned from further investment would not warrant the expense is called

a) re-couping

b) harvest strategy

c) liquidation

d) foreclosure

The word entrepreneur  means to

a) undertake

b) wind up

c) comply

d) form alliance

Gathering of information and building alliances is a form of

a) Negotiation skills

b) Implementation skills

c) Networking skills

d) Resource skills

One of the following is not among the 4S�S  finance concerns itself with

a) Anticipation

b) Acquisition

c) Allocation

d) Assimilation

The paying off of debt with a fixed repayment schedule in regular installments over a period of time is called

a) depreciation

b) liquidation

c) amortization

d) over invoicing

In partnership business, a partner who contributes capital attends regular meetings and awaits periodic declaration and sharing of profits but does not participate in the day-to-day running of business can be described as

a) nominal partner

b) senior-janitor partner

c) dormant partner

d) quasi partner

Which of the following statements are incorrect?

(Select Two Options)

a) Articles of Association are subordinate and controlled  by the memorandum of association

b) Memorandum of association is subordinate to and controlled by the article of association

c) Article s of association are independent of memorandum of association

In which of these documents is a specimen of  articles of association included?

a) Standards Organization of Nigeria�s Journal

b) Companies and allied matters Decree

c) prospectus

d) Corporate Affairs Commission�s publication

Which of the following authorizes a company to commence business?

a) Prospectus

b) Certificate of Incorporation

c) Articles of Association

d) Memorandum of Association

A copyright is considered essential for the following items except

a) Computer software

b) Model

c) Songs

d) Medical equipments

Distinctive word, slogan or image that identifies a product and its origin is called

a) copyright

b) trade secret

c) trade name

d) trademark

The expression �Life is Good�  as found on some products is a form of

a) trade name

b) trade mark

c) patent right

d) trade secret

A contractual agreement between two parties where  one party has proprietary right over some information, processes or know-how agrees to give its rights for use of the intellectual property in return for a royalty is called

a) patent

b) licensing

c) outsourcing

d) partnering

Which of these applies only to public limited liability companies at registration?

a) Prospectus

b) Articles of Association

c) Memorandum of Association

d) Certificate of Incorporation

Which of the following requires that some assets shall be used as collateral?

a) Equity capital

b) Debt capital

c) Bond capital

d) Premium

Which of these is not a stage in the selection process?

a) Recruitment

b) Employment test

c) References

d) Medical examination

One of the following stage in the selection process is the most biased stage where discrimination, favouratism and other vices can be most experienced and exercised.

a) Interview

b) Medical examination

c) Employment test

d) References

One of these is not an internal source of financing entrepreneurial ventures

 a) personal fund

b) retained earnings

c) commercial credits

d) selling fairly

Which of these involves vendors or suppliers dealing goods and forming services before payment is received from the customers on credits?

a) credit cards

b) customers financing

 c) factoring

d) commercial credit

In which of the following types of lease are more rentals charged in the initial year and less in the latter years of the contract?

a) operating lease

b) fiscal lease

c) back ended lease

d) up-fronted lease

In which of the following lease arrangement is the lessor responsible for maintenance and insurance?

 a) financial lease

b) operating lease

c) up-fronted lease

d) back-ended lease

Which of the following in a hire purchase is transferred agreement by the finances before full payment for the asset is made?

a) title

b) possession

c) ownership

d) all of the above

The art of financing short term investment  opportunity at a profit with funds meant for workers� salaries and settlement of other bills by the deliberately delaying  payment is called

a) trade credits

b) accruals

c) venture capiles

d) term loan

When a sale invoice reads �40 days, net 4�, it implies that the

a) entrepreneur will pay 4%  increase should payment be made after 30 days of purchase

b) entrepreneur will pay 40% discount if he settles his  bill before or on the 30th day after purchase

c) entrepreneur is not allowed 4% discount and he is expected to make full payment within 30 days

d) entrepreneur will pay a fine of 4% if he fails to settle his bills within 30 days.

A trade is also known as

a) bill of exchange

b) credit

c) trade credit

d) venture capital

Which of the following is a good example of venture capital in Nigeria?

a) PAT

b) SMEEIS

c) SMEDAN

d) NESREA

 Which of these is drawn by a seller of goods or  services addressed and sent to a buyer for acceptance?

a) Promissory note

b) Bill of exchange

c) Trade bill

d) Invoice

The offer of stocks to a few private investors rather to the public by a company is known as

a) outsourcing

b) leveraging

c) initial public offering

d) private placement

The following are legal forms of business in Nigeria except

a) Partnership

b) Sole proprietorship

c) Cooperative society

d) All of the above

The use of positive language, rewards and financial communication to convey a positive outlook of performance is known as

a) diplomacy

b) Sagacity

c) benchmarking

d) thematic manipulation

Sustainable entrepreneurship is also known as

a) green entrepreneurship

b) social entrepreneurship

c) impression management

d) net-working

The process and skill used in the management of a firm interaction with people, organizations and institutions outside of its boundary is called

a) external relations

b) networking

c) social capital

d) interdependence

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