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WAEC Commerce 1991 (August) Question 90

Question 90

Business Units

The most important factor influencing the form of a business unit is

  1. A.expansion possibility
  2. B.business integrity
  3. C.the amount of capital available
  4. D.adequate number of skilled employees
  5. E.the number of competing firms in the industry
Show the answer and explanation

Answer: C (the amount of capital available)

Explanation

How much capital is needed and available largely decides whether one starts a sole trade, partnership or company.