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An underwriter for a company's share is paid

Accounts - Principles of Accounts
WAEC 2012

An underwriter for a company's share is paid

  • A. interest
  • B. commision
  • C. dividend
  • D. salary
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Correct Answer: Option B
Explanation

Underwriting commission is the compensation that an underwriter receives for offering underwriting services. a fee is paid as a return for the implicit risk involved in the underwriting contract.

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Post UTME Past Questions Agent
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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WAEC and NECO CBT App for Mobile Devices - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts