bece model questions vol1 2018 business_studies | Practical

Prepare for your exams with bece model questions vol1 questions? Reviewing past/model questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 business_studies (Practical) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1 View Details
Three friends – Aisha, Bayo and Chinedu – decide to start a business together. Each contributes capital as shown below and they intend to share profit in proportion to their capital contributions. The business will be run by the partners themselves and they are prepared to assume unlimited personal liability for the debts of the business.
Question Parts
(a)
State the type of business organization that best fits the description and give one reason for your choice.
(b)
Prepare a simple partnership agreement table showing for each partner: (i) capital contributed, (ii) profit‑sharing ratio (as a percentage), and (iii) liability status.
(c)
If the partnership earned a total profit of ₦240,000 for the year, calculate the amount of profit each partner will receive.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 2 View Details
You are the office clerk of a small trading firm. The firm records its sales on credit and receives cash payments from customers. The following information was recorded for the month of March 2024.
Question Parts
(a)
Prepare a cash book for March 2024. The cash book should show: - Opening cash balance of ₦10,000, - Each cash receipt entry (date, receipt number and amount), - Total cash receipts for the month, - Closing cash balance. Use the data provided.
(b)
Determine the difference between total credit sales for the month and the cash actually received. Suggest two plausible reasons for this shortfall.
(c)
The manager has asked you to draft a formal memorandum to all staff reminding them of the company’s credit policy. The policy states that credit sales must be settled within 30 days and that any late payment attracts a 2 % monthly interest charge. Write the memorandum in the correct format, including heading, date, subject, body and signature.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 3 View Details
A small retail shop sold three different products during the month of May. The details of the sales are as follows: - Product A: 20 units sold at a selling price of ₦150 per unit. - Product B: 15 units sold at a selling price of ₦200 per unit. - Product C: 10 units sold at a selling price of ₦250 per unit. The shop offers a flat discount of 5 % on the total sales value before tax. After applying the discount, a Value Added Tax (VAT) of 7.5 % is charged on the discounted amount. The cost price per unit for the three products are: - Product A: ₦100 per unit - Product B: ₦130 per unit - Product C: ₦180 per unit Using the information above, answer the following questions:
Question Parts
(a)
Prepare a sales invoice that shows the calculation of the total amount payable by the customer. Include the subtotal, discount, VAT, and grand total.
(b)
State the total profit earned on the sales and express it as a percentage of the total cost.
(c)
Identify two possible sources of error that could arise when preparing the invoice.
(d)
Suggest two improvements that would make the invoice clearer for the customer.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 4 View Details
You are given the following memorandum circulated by the Operations Manager of a manufacturing firm: --- **To:** All Production Staff **From:** Mr. Adewale Okonkwo, Operations Manager **Date:** 28 April 2024 **Subject:** Introduction of New Shift Schedule Effective 1 June 2024 Dear Team, In order to meet the increased demand for our products, the management has decided to introduce a new three‑shift system starting from 1 June 2024. The details are as follows: - **Morning Shift:** 06:00 hrs – 14:00 hrs (8 hours work, 1 hour lunch break) - **Afternoon Shift:** 14:00 hrs – 22:00 hrs (8 hours work, 1 hour dinner break) - **Night Shift:** 22:00 hrs – 06:00 hrs (8 hours work, 1 hour supper break) All staff will be rotated weekly to ensure fairness. Attendance will be recorded electronically, and overtime will be paid at the rate of 1.5 times the basic hourly wage for any work beyond the scheduled 8 hours. Please acknowledge receipt of this memo and direct any queries to the HR department by 5 May 2024. --- Based on the memorandum above, answer the following:
Question Parts
(a)
State the main purpose of the memorandum in one concise sentence.
(b)
Draft a reply email from a production staff member acknowledging the memo and requesting clarification on the break timings for the night shift.
(c)
Identify two potential barriers that could hinder effective communication of the new shift schedule to all staff.
(d)
Propose two measures the management could adopt to improve the clarity and reception of such important communications in the future.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer
Question 5 View Details
A small trading business applies for a term loan from XYZ Bank. The bank offers a loan of ₦500,000 at a nominal annual interest rate of 12% payable monthly. A processing fee of 2% of the loan amount is charged at disbursement. The loan is to be repaid in equal monthly instalments over 24 months. The business expects a steady monthly net cash inflow of ₦30,000 from its operations.
Question Parts
(a)
Calculate the amount of the processing fee and the net amount the business will actually receive.
(b)
Determine the monthly instalment amount the business must pay to the bank. Show the formula you use.
(c)
Compute the total amount the business will have paid to the bank at the end of the loan period and state the total cost of the loan (interest plus fee).
(d)
Assess the loan in terms of effective cost and affordability.
() Calculate the effective annual interest rate that reflects the processing fee as part of the cost of borrowing.
() State whether the loan is affordable, given that the business wants the monthly cash inflow to exceed the instalment by at least 20%.
Detailed Essay Solution & Marking Scheme Available

Get the step-by-step mathematical proofs, key points required by examiners, and a comprehensive breakdown from our AI Tutor.

Reveal Answer

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support