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WAEC Economics 2022 Theory — Question 4

Question 4 of 9 from the West African Examinations Council (WAEC) Economics 2022 Theory paper, with the correct answer and a full explanation.

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3(c) Outline three sources of finance available to sole proprietorship.

Model answer

Sources of finance available to sole proprietorship: (i) Personal savings. (ii) Borrowing from family and friends. (iii) Loans from financial institutions. (iv) Plough back profits. (v) Trade credit. (vi) Grants/loans from government. (vii) Inheritance. (viii) Sale of assets. (ix) Hire purchase. (x) Leasing of assets. (xi) Assistance from family and friends.

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