Neco Model Questions Vol1 2024 Commerce Question 7

Practice essay / theory question 7 from the 2024 Neco Model Questions Vol1 Commerce examination. This question covers Business Organizations .

Neco Model Questions Vol1 2024 Commerce Essay / Theory
Topic: Business Organizations
Question 7 NECO_MODEL_QUESTIONS_VOL1 • 2024 • COMMERCE • essay

A group of three entrepreneurs – Ada, Bayo and Chidi – plan to start a manufacturing venture. Ada will contribute ₦30 million, Bayo ₦20 million and Chidi ₦10 million. Ada wants full control over day‑to‑day decisions, Bayo is risk‑averse and prefers limited personal liability, while Chidi is interested mainly in profit sharing and is willing to accept moderate risk. They are considering the following forms of business organisation in Nigeria: a partnership, a private limited company (Ltd) and a cooperative society.

Question Parts

( a )
Identify three major forms of business organisation in Nigeria and state one key characteristic of each.
( b )
Based on the entrepreneurs’ preferences and capital contributions, recommend the most suitable form of organisation for the venture. Justify your recommendation with at least four relevant criteria.
( c )
Outline the procedural steps required to register a private limited company with the Corporate Affairs Commission (CAC) in Nigeria and discuss the principal ongoing compliance obligations of such a company.
( d )
Explain how the chosen form (private limited company) influences the owners’ personal liability and the venture’s ability to obtain finance.

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About This Question

This is Neco Model Questions Vol1 2024 Commerce Question 7. It is one of the essay questions from the 2024 Neco Model Questions Vol1 Commerce examination.

The question covers Business Organizations .

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