Post Utme Rhema University 2021 Commerce Question 7

Practice objective / multiple choice question 7 from the 2021 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2021 Commerce Objective / Multiple Choice
Question 7 POST_UTME_RHEMA_UNIVERSITY • 2021 • COMMERCE • objective

A company's articles of association state that the company must maintain a minimum of ₦500,000 in its reserve fund. What is the purpose of this reserve fund?

Answer Options

A. To provide a source of funds for the company's operational expenses.
Correct Answer B. To ensure the company's solvency and stability.
C. To provide a source of funds for the company's dividend payments.
D. To provide a source of funds for the company's expansion plans.
Correct Answer
B
Correct Option:
To ensure the company's solvency and stability.

About This Question

This is Post Utme Rhema University 2021 Commerce Question 7. It is one of the objective questions from the 2021 Post Utme Rhema University Commerce examination.

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