Business Enterprises

Question 1

What is a Business enterprise

Answer 1

It is an organization set up by an individual or group of individuals, government or it’s agencies for the purpose of making profit and providing goods and services for the satisfaction of human wants

Question 2

Types of business enterprises

Answer 2

Private enterprise

Public enterprise

Question 3

Examples of private enterprises

Answer 3

Sole proprietorship
Partnership
Private limited liability company
Public limited liability company

Question 4

Characteristics of private enterprises

Answer 4

It is owned by private individuals
Private individuals provide the capital 
Objective is to make profit
Owner bears all the risks
Accountability is to the owner

Question 5

Characteristics of partnership

Answer 5

It is owned by 2 to 20 persons
The partners have unlimited liability
The life span depends on the agreement signed by the partners
It is not a separate legal entity

Question 6

Sources of capital for partnership

Answer 6

Personal contributions from partners
Loans and overdraft
Admission of a new partner
Undistributed profit

Question 7

Examples of private enterprises

Answer 7

Nigerian port Authority
Nigerian Television Authority
Nigerian Railway Co operation