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WAEC Commerce 2025 Theory — Question 7

Question 7 of 24 from the West African Examinations Council (WAEC) Commerce 2025 Theory paper, with the correct answer and a full explanation.

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2(b)(ii) State four reasons Saul may be reluctant to accept the merger proposal.

Model answer

i. If the capital contribution of the other partner is deemed insignificant. ii. If the other business does not have a sufficient customer base to improve the revenue of the partnership. iii. If Saul does not see Abu's business as a threat to his own, he may decline the proposal. iv. If Saul has many alternative sources of capital to fund his business, he may also decline the proposal.

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