Neco 2023 Commerce Question 7

Practice essay / theory question 7 from the 2023 Neco Commerce examination. This question covers Business Organizations .

Neco 2023 Commerce Essay / Theory
Topic: Business Organizations
Question 7 NECO • 2023 • COMMERCE • essay

Three friends, Ada, Bayo and Chidi, intend to start a business selling electronic accessories. They each have different amounts of capital and wish to limit personal liability. They are considering three forms of business organization: sole proprietorship, partnership, and private limited company.

Question Parts

( a )
Explain the key legal characteristics of each of the three forms of business organization, focusing on ownership, liability and continuity of existence.
( b )
Using the scenario, evaluate which form of business organization would best suit the friends' objectives. In your evaluation consider capital requirements, profit sharing, decision‑making and liability.
( c )
The friends decide to register a private limited company with a total share capital of ₦1,200,000, divided equally among them.
( ) Calculate the amount of share capital each must contribute.
( ) Discuss two statutory compliance requirements the company must fulfil in its first year of operation.

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About This Question

This is Neco 2023 Commerce Question 7. It is one of the essay questions from the 2023 Neco Commerce examination.

The question covers Business Organizations .

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