WAEC Past Questions and Answers - Page 59

A sole proprietorship business is a business enterprise owned and run by one man.

Some major features of a sole proprietorship are that it is simple to set up and operate, has a sole owner who does not need to share the profits, has unlimited liability, and minimal formalities.

By unlimited liability, we mean that in the event of the business folding up, the sole proprietor will be required to settle all business debts, even if it means using his personal assets and properties to settle creditors.

A consignment note is a document containing particulars of goods for shipment and which provides proof that the goods have been received by the carrier for delivery.

It simply shows the details of goods that have been sent from a seller to a buyer, and the carrier transporting the goods.

The rate of turnover is the number of times a firm sells all of its goods and it is gotten by dividing the total sales revenue in a period by the average inventory in that period.

Nationalization involves the transfer of privately owned companies or industries from private individuals to government control

A standing order is an instruction given to a bank by an account holder, to make periodic payments to a named payee on a specific date. The bank makes the payment on behalf of the drawer (account holder). Here, the bank is referred to as the drawee.