Test: Industry and Industrialization - 2 - JAMB MCQ

Bank loan is an external source of funding because it involves borrowing money from a financial institution, which is not generated internally by the business itself. Retained earnings (a) are internal funds generated from profits. Equity capital (c) refers to funds raised by issuing shares to shareholders, which can be both internal and external. Trade credit (d) is a form of financing extended by suppliers to the business.

Planning is the management function that involves setting goals, objectives, and strategies, and determining the most effective ways to achieve them. Organizing (b) involves arranging resources and tasks to accomplish the goals. Directing (c) involves guiding and motivating employees to achieve the organizational objectives. Controlling (d) involves monitoring performance and taking corrective actions.

Government regulations. Government regulations do not directly determine the size of firms. While regulations can influence certain aspects of a firm's operations, they are not considered a primary determinant of the firm's size. Availability of capital (a), market demand (b), and technological advancements (c) are factors that can impact the size of firms.

A sole proprietorship is a business organization that is owned and operated by a single individual. The owner has complete control over the business and assumes all the risks and rewards. A corporation (a) is a separate legal entity owned by shareholders. A partnership (b) is a business owned by two or more individuals. A cooperative (c) is an association of individuals who voluntarily cooperate to meet their common economic, social, and cultural needs.

Trade credit is a short-term source of financing provided by suppliers to a business organization. It allows the organization to purchase goods or services on credit and make payment at a later date. Equity shares (a) represent long-term ownership in a company. A long-term bank loan (b) is a form of long-term financing. Retained earnings (d) are internal funds generated from profits.

Organizing is the process of combining and organizing resources, such as human resources, physical assets, and financial capital, to achieve the goals and objectives of an organization. Planning (a) involves setting goals and determining the best way to achieve them. Directing (c) involves guiding and motivating employees. Controlling (d) involves monitoring performance and taking corrective actions.

Retained earnings are a source of internal financing for a business organization. They represent the portion of profits that is reinvested in the business rather than distributed to shareholders as dividends. Bank loan (a), trade credit (b), and equity shares (d) are external sources of financing.

The size of firms in an industry is primarily influenced by market demand. If there is high demand for products or services, firms tend to expand in order to meet the demand. Government regulations (a) can impact certain aspects of a firm's operations, but they do not directly determine the size of firms. Technological advancements (c) can influence the efficiency and productivity of firms. Availability of skilled labor (d) is also a factor that can affect the size of firms.

A corporation offers limited liability to its owners. The shareholders of a corporation are not personally liable for the debts and obligations of the corporation. In contrast, both sole proprietorship (a) and partnership (b) do not offer limited liability to their owners. A cooperative (d) is a different type of organization where members have joint ownership and limited liability.

Controlling is the management function that involves evaluating performance against predetermined goals and taking corrective actions if necessary. Planning (a) involves setting goals and determining the best way to achieve them. Organizing (b) involves arranging resources and tasks. Directing (c) involves guiding and motivating employees to achieve the goals.