Neco Model Questions Vol1 2020 Commerce Question 7

Practice essay / theory question 7 from the 2020 Neco Model Questions Vol1 Commerce examination. This question covers Business Organizations .

Neco Model Questions Vol1 2020 Commerce Essay / Theory

Topic: Business Organizations

Question 7 NECO_MODEL_QUESTIONS_VOL1 • 2020 • COMMERCE • essay

A group of three recent graduates intends to start a technology‑driven business that will develop mobile applications. The venture will require substantial start‑up capital, the founders want to limit their personal liability, and they anticipate seeking external investors in the near future.

Question Parts

( a )

Define each of the following forms of business organization as recognised in Nigeria: (i) Sole proprietorship, (ii) Partnership, (iii) Private limited company (Ltd).

( b )

State three advantages and three disadvantages of each of the three business forms identified in part (a).

( c )

Based on the scenario, recommend the most suitable form of business organization for the graduates. Justify your recommendation by referring to (i) liability, (ii) ability to raise capital, and (iii) management control.

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About This Question

This is Neco Model Questions Vol1 2020 Commerce Question 7. It is one of the essay questions from the 2020 Neco Model Questions Vol1 Commerce examination.

The question covers Business Organizations .

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