Waec Model Questions Vol1 2018 Commerce Question 7

Practice essay / theory question 7 from the 2018 Waec Model Questions Vol1 Commerce examination. This question covers Business Organizations .

Waec Model Questions Vol1 2018 Commerce Essay / Theory

Topic: Business Organizations

Question 7 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • essay

ABC Enterprises is planning to formalise its business structure as it expands its operations.

Question Parts

( a )

Compare a partnership and a private limited company in terms of (i) liability of owners, (ii) registration requirements, and (iii) ability to raise capital.

( b )

The owners intend to limit personal risk while still being able to attract external investors. Based on the comparison in part (a), recommend the most appropriate form of business organization and justify your choice.

( c )

If the owners decide to register as a private limited company, the Companies and Allied Matters Act requires a minimum authorized share capital of ₦10,000,000 and that at least 25 % of this be paid up. The registration fee is 0.5 % of the authorized capital. Calculate the minimum paid‑up capital and the total amount that must be paid to the Corporate Affairs Commission at the time of registration.

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About This Question

This is Waec Model Questions Vol1 2018 Commerce Question 7. It is one of the essay questions from the 2018 Waec Model Questions Vol1 Commerce examination.

The question covers Business Organizations .

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