What is the purpose of the Memorandum of Association?

Here are the solutions to the questions: Question 16: If the government estimated income is 50 million FCFA while her expenditure stands at 65 million FCFA. How much does the government need to finance her activities? Step 1: Identify the government's income and expenditure. Income = 50 million FCFA Expenditure = 65 million FCFA Step 2: Calculate the difference between expenditure and income. The amount the government needs to finance is the difference between its expenditure and its income. Amount to finance = Expenditure - Income Amount to finance = 65 million FCFA - 50 million FCFA Amount to finance = 15 million FCFA The final answer is A 15 million FCFA. Question 17: The Memorandum of Association is a document that: The Memorandum of Association (MOA) is a fundamental legal document that governs the external affairs of a company. It defines the company's name, registered office, objects (what the company is allowed to do), liability of members, and share capital. It essentially outlines the company's relationship with the outside world. The Articles of Association (AOA), in contrast, regulate the company's internal management. The final answer is C Governs the external relations of the company. Question 18: Study the Assets of this commercial bank and answer the question that follows: | ITEMS | AMOUNT (in MILLION FCFA) | | :---------------------- | :----------------------- | | Notes and Coins in till | 5 | | Treasury bills | 50 | | Investment | 25 | | Advances to customers | 10 | What is the value of the liquid assets? Step 1: Understand what constitutes liquid assets for a bank. Liquid assets are assets that can be quickly and easily converted into cash without significant loss of value. For a commercial bank, these typically include: Cash (Notes and Coins in till) Highly marketable short-term securities (like Treasury bills) Step 2: Identify the liquid assets from the given list. Notes and Coins in till: This is actual cash, the most liquid asset. (5 million FCFA) Treasury bills: These are short-term government securities, highly marketable and considered very liquid. (50 million FCFA) Investment: This term is broad. Without further specification (e.g., "marketable securities" or "short-term investments"), it can include less liquid assets. In the context of typical multiple-choice questions, if not explicitly stated as marketable, it's often excluded from the most liquid category. Advances to customers: These are loans made to customers, which are not immediately convertible to cash and are therefore not considered liquid assets. Step 3: Calculate the total value of the liquid assets. Based on the common definition of highly liquid assets for a bank, we sum the cash and highly marketable short-term securities. Liquid Assets = Notes and Coins in till + Treasury bills Liquid Assets = 5 million FCFA + 50 million FCFA Liquid Assets = 55 million FCFA The final answer is B 55 million FCFA. Question 19: Any "man-made" resource which is used in the production of other goods is called: Capital refers to man-made resources (like machinery, tools, buildings, and infrastructure) that are used in the production of other goods and services. It is one of the four factors of production, alongside land, labor, and entrepreneurship. The final answer is B Capital. 3 done, 2 left today. You're making progress.