(a) List five types of business units in Nigeria.... | WAEC SSCE - Commerce - 1989

Question 1 Report

(a) List five types of business units in Nigeria.

(b) Give five main differences between a retail co-operative society and a public limited liability company.

Answer

(a) Five types of business units in Nigeria

Sole proprietorship (one-man business).
Partnership.
Private and public limited liability companies.
Co-operative societies.
Public corporations (state-owned enterprises).

(b) Five differences between a retail co-operative society and a public limited liability company

Retail co-operative society	Public limited liability company
Formed and owned by consumers who join voluntarily to buy goods cheaply.	Formed by investors (shareholders) to carry on business for profit.
Membership is open and each member has one vote, regardless of the number of shares held.	Voting power depends on the number of shares held; a large shareholder has more votes.
Surplus is shared among members as dividend in proportion to their purchases (patronage).	Profit is shared among shareholders as dividend in proportion to shares held.
Its main aim is the welfare and mutual benefit of members, not maximum profit.	Its main aim is to maximise profit for the shareholders.
Capital is usually small, raised from members' subscriptions and shares.	Capital is large, raised by selling shares and debentures to the public.

(A further difference: shares in a co-operative are not freely transferable and cannot be sold on the stock exchange, whereas shares of a public company are freely transferable and quoted on the stock exchange.)

Read lesson note on Financing Business (JAMB)

Read lesson note on Business Capital And Profits (WAEC)

Read lesson note on Trade Associations (WAEC)

Read lesson note on Business Units (JAMB)

Read lesson note on Business Units (WAEC)

Answer Details

(a) Five types of business units in Nigeria

Sole proprietorship (one-man business).
Partnership.
Private and public limited liability companies.
Co-operative societies.
Public corporations (state-owned enterprises).

(b) Five differences between a retail co-operative society and a public limited liability company

Retail co-operative society	Public limited liability company
Formed and owned by consumers who join voluntarily to buy goods cheaply.	Formed by investors (shareholders) to carry on business for profit.
Membership is open and each member has one vote, regardless of the number of shares held.	Voting power depends on the number of shares held; a large shareholder has more votes.
Surplus is shared among members as dividend in proportion to their purchases (patronage).	Profit is shared among shareholders as dividend in proportion to shares held.
Its main aim is the welfare and mutual benefit of members, not maximum profit.	Its main aim is to maximise profit for the shareholders.
Capital is usually small, raised from members' subscriptions and shares.	Capital is large, raised by selling shares and debentures to the public.

Read lesson note on Financing Business (JAMB)

Read lesson note on Business Capital And Profits (WAEC)

Read lesson note on Trade Associations (WAEC)

Read lesson note on Business Units (JAMB)

Read lesson note on Business Units (WAEC)

Financing Business

Business Capital And Profits

Trade Associations

Business Units

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(a) List five types of business units in Nigeria. (b) Give five main differences between a retail co-operative society and a public limited liability compan...

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(a) List five types of business units in Nigeria. (b) Give five main differences between a retail co-operative society and a public limited liability compan...

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