a) State five features each of the following... | WAEC SSCE - Commerce - 2016 (Essay)

Question 1 Report

a) State five features each of the following business units:

b) Explain five ways by which partnership could be brought to an end.

Answer

(a) Five features each of the following business units

Cooperative Society

Open and voluntary membership: Anyone who is willing may join, and members are free to leave.
Democratic control: Each member has one vote regardless of the number of shares held (one member, one vote).
Ownership by members: The society is owned and financed by its members through shares and contributions.
Distribution of surplus by patronage: Profits are shared among members in proportion to their patronage or dealings, not according to shares held.
Service motive: Its main aim is to promote the welfare of members rather than to maximise profit.

Mail Order Business

Selling by post/online: Goods are ordered and delivered through the post office or courier without the buyer visiting a shop.
Use of catalogues and advertisements: Customers select goods from catalogues, price lists or advertisements.
No shop or showroom is needed: The trader operates from a warehouse or office, saving rent on a prime shop.
Wide geographical coverage: It reaches customers in distant and rural areas who have no access to large shops.
Payment before or on delivery: Customers usually pay in advance or on delivery (cash on delivery).

(b) Five ways by which a partnership could be brought to an end (dissolved)

Death of a partner: The partnership is dissolved on the death of a partner unless the agreement provides otherwise.
Bankruptcy/insolvency of a partner: If a partner becomes bankrupt, the firm may be dissolved.
Mutual agreement: The partners may agree among themselves to end the business.
Expiry of the agreed term or completion of the venture: A partnership formed for a fixed period or for a particular project ends when the time expires or the project is completed.
By order of the court: The court may dissolve the firm where a partner becomes insane, is guilty of misconduct, or the business can only be carried on at a loss.

(Other valid ways: withdrawal or retirement of a partner, and the business becoming illegal.)

Answer Details

(a) Five features each of the following business units

Cooperative Society

Open and voluntary membership: Anyone who is willing may join, and members are free to leave.
Democratic control: Each member has one vote regardless of the number of shares held (one member, one vote).
Ownership by members: The society is owned and financed by its members through shares and contributions.
Distribution of surplus by patronage: Profits are shared among members in proportion to their patronage or dealings, not according to shares held.
Service motive: Its main aim is to promote the welfare of members rather than to maximise profit.

Mail Order Business

Selling by post/online: Goods are ordered and delivered through the post office or courier without the buyer visiting a shop.
Use of catalogues and advertisements: Customers select goods from catalogues, price lists or advertisements.
No shop or showroom is needed: The trader operates from a warehouse or office, saving rent on a prime shop.
Wide geographical coverage: It reaches customers in distant and rural areas who have no access to large shops.
Payment before or on delivery: Customers usually pay in advance or on delivery (cash on delivery).

(b) Five ways by which a partnership could be brought to an end (dissolved)

Death of a partner: The partnership is dissolved on the death of a partner unless the agreement provides otherwise.
Bankruptcy/insolvency of a partner: If a partner becomes bankrupt, the firm may be dissolved.
Mutual agreement: The partners may agree among themselves to end the business.
Expiry of the agreed term or completion of the venture: A partnership formed for a fixed period or for a particular project ends when the time expires or the project is completed.
By order of the court: The court may dissolve the firm where a partner becomes insane, is guilty of misconduct, or the business can only be carried on at a loss.

(Other valid ways: withdrawal or retirement of a partner, and the business becoming illegal.)

a) State five features each of the following business units: Cooperative Society; Mail Order Business. b) Explain five ways by which partnership could be br...