Economics MCQs For Lectureship CSS PMS And NTS Part III

11 The excess of purchase price over net assets is considered as

Goodwill

12 What is a preliminary expense?

A fictitious asset

13 What divisible profits do not include?

Profits on revaluation of assets

14 When dividends are usually paid?

On the paid-up capital

15 The process when two or more companies dissolved and form a new company, it is called

Amalgamation

16 When absorption take place?

Two or more companies dissolved to be taken over by an existing company

17 What type of relation exist between normal rate of return and P/E ratio?

Inverse

18 What is the minimum percentage of the shareholding of government in a government company?

51%

19 Demand for machinery is an

Economic flow

20 What is a closed economy?

One which does not trade with other countries

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