Waec Model Questions Vol1 2023 Commerce Question 7

Practice essay / theory question 7 from the 2023 Waec Model Questions Vol1 Commerce examination. This question covers Business Organizations, Legal Forms, Partnership, Company Law .

Waec Model Questions Vol1 2023 Commerce Essay / Theory
Topics: Business Organizations Legal Forms Partnership Company Law
Question 7 WAEC_MODEL_QUESTIONS_VOL1 • 2023 • COMMERCE • essay

Four friends – Ada, Bayo, Chidi and Damilola – intend to start a business manufacturing eco‑friendly bags. They are evaluating different forms of business organization available in Nigeria.

Question Parts

( a )
Identify and briefly describe three possible forms of business organization they could adopt in Nigeria, highlighting the key legal characteristics of each.
( b )
Assuming they want to limit personal liability and have the ability to raise capital from the public, which form would be most suitable? Justify with at least two reasons.
( c )
If they choose a partnership, explain how profit sharing could be arranged if Ada contributes 40% of capital, Bayo 30%, Chidi 20% and Damilola 10%, but Bayo also brings managerial expertise valued at ₦200,000. Propose a fair profit‑sharing ratio and show the calculation.
( d )
Discuss two major challenges that the chosen form of organization (from part b) might face in the Nigerian business environment, and suggest one mitigation strategy for each.

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About This Question

This is Waec Model Questions Vol1 2023 Commerce Question 7. It is one of the essay questions from the 2023 Waec Model Questions Vol1 Commerce examination.

The question covers Business Organizations, Legal Forms, Partnership, Company Law .

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