Waec Model Questions Vol1 2017 Commerce Question 7

Practice essay / theory question 7 from the 2017 Waec Model Questions Vol1 Commerce examination. This question covers Business Organizations .

Waec Model Questions Vol1 2017 Commerce Essay / Theory
Topic: Business Organizations
Question 7 WAEC_MODEL_QUESTIONS_VOL1 • 2017 • COMMERCE • essay

A group of entrepreneurs is planning to start a new venture called EcoTech Ltd. The venture will involve manufacturing of eco‑friendly packaging materials. The entrepreneurs need to decide on the most suitable form of business organization and also need to allocate the profit for the first year of operation.

Question Parts

( a )
State three major types of business organisations in Nigeria and give one key characteristic of each.
( b )
Considering the nature of EcoTech Ltd (high capital requirement, need for limited liability and ability to raise large funds), recommend the most appropriate form of business organisation and justify your choice with at least three reasons.
( c )
A partnership of three partners A, B and C invests capital of ₦200,000, ₦300,000 and ₦500,000 respectively. They agree that profit will be shared in proportion to capital contributed and that partner C will receive an additional 5 % of the total profit for managing the business. If the total profit for the year is ₦120,000, calculate the amount each partner receives.
( d )
Identify two potential disadvantages of the private limited company recommended in part (b) and suggest one mitigation strategy for each disadvantage.

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About This Question

This is Waec Model Questions Vol1 2017 Commerce Question 7. It is one of the essay questions from the 2017 Waec Model Questions Vol1 Commerce examination.

The question covers Business Organizations .

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