WAEC Economics questions: Business organisations

14 questions with answers and explanations. Tap an option to check yourself.

1. Question 1· Business organisations· WAEC

   A sole proprietorship is common in Nigeria because

   • Ait has limited liability
   • Bit has unlimited capital
   • Cit is owned by government
   • Dit needs small capital and is easy to start

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   Explanation and discussion

2. Question 2· Business organisations· WAEC

   Limited liability means shareholders

   • Acannot vote
   • Bare liable for all debts
   • Ccan lose only the amount they invested
   • Dshare no profits

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   Explanation and discussion

3. Question 3· Business organisations· WAEC

   Chinedu provides all the capital for his provision shop, takes all decisions and keeps all the profit. His business is a

   • Asole proprietorship
   • Bpartnership
   • Cprivate limited company
   • Dcooperative society

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   Explanation and discussion

4. Question 4· Business organisations· WAEC

   A major advantage of a public limited company is that it

   • Ahas unlimited liability
   • Bcan raise capital from the public by selling shares
   • Cis owned by government
   • Dkeeps its accounts secret

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   Explanation and discussion

5. Question 5· Business organisations· WAEC

   The usual maximum number of partners in an ordinary trading partnership is

   • A10
   • B50
   • C7
   • D20

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6. Question 6· Business organisations· WAEC

   A public company fails owing ₦5 million. A shareholder who invested ₦100,000 can lose at most

   • A₦5 million
   • B₦100,000
   • Cnothing
   • Dall his personal property

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   Explanation and discussion

7. Question 7· Business organisations· WAEC

   A sole proprietorship is a business

   • Aowned by shareholders
   • Bowned and controlled by one person
   • Cowned by government
   • Downed by two to twenty partners

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   Explanation and discussion

8. Question 8· Business organisations· WAEC

   The Nigerian Ports Authority is an example of

   • Aa partnership
   • Ba sole proprietorship
   • Ca public corporation
   • Da cooperative society

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   Explanation and discussion

9. Question 9· Business organisations· WAEC

   A business unit in which one person supplies the capital and takes all the decisions is a

   • Apartnership
   • Bpublic company
   • Csole proprietorship
   • Dcooperative

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   Explanation and discussion

10. Question 10· Business organisations· WAEC

    A public limited company raises capital mainly by

    • Aborrowing from friends only
    • Bselling shares to the public
    • Cpartners' contributions
    • Dgovernment grants

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    Explanation and discussion

11. Question 11· Business organisations· WAEC

    Cooperative societies operate on the principle of

    • Aone share, one vote
    • Bone member, one vote
    • Cprofit maximisation
    • Dgovernment control

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    Explanation and discussion

12. Question 12· Business organisations· WAEC

    Public corporations are set up mainly to

    • Amaximise profit
    • Bsell shares abroad
    • Ccompete with sole traders
    • Dprovide essential services

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    Explanation and discussion

13. Question 13· Business organisations· WAEC

    Shareholders of a limited liability company can lose at most

    • Atwice their investment
    • Ball their personal property
    • Cnothing at all
    • Dthe amount they invested

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    Explanation and discussion

14. Question 14· Business organisations· WAEC

    A public corporation is owned by

    • Athe government
    • Bshareholders on the stock exchange
    • Cpartners
    • Dcooperative members

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    Explanation and discussion