Explanation

Reasons why small scale firms are common in West Africa.

(i) Where the work is done by craftsmen to satisfy tastes

(ii) Small firms are easy to set up because of small capital requirements.

(iii) General economic boom The economy as a whole may be growing with new opportunities of expansion being created open to both large and small rims, hence there is room for small firms.

(iv) The self motive. Some people like to remain their own boss, to enjoy the pride of ownership. They therefore remain because expanding may mean inviting partners

and so sharing ownership

(v) For security sake It may be risk to depend only on one large supplier, Therefore orders may be placed with small firms regularly just to keep them in business.

(vi) The size of the business unit tends to be small where the work involves the provision of direct services.

(vii) Fear of the risk: The nature of the product may be such that there are frequent changes in demand e.g. in the fashion trade, production will be on small scale so as to minimize loss if there is a fall in demand.

(viii) Government policy. Governments may institute anti-monopoly polices or policies to assist small firms.

(ix) Where the market size is small, production must be on a small scale.

(x) Small firms are easy to manage and control/ inadequate expertise in managing large scale enterprise

(xi) Small firms require small legal and administrative procedures to set up.

Correct Answer: A. Capitalism

Correct Answer: B. component bar charts

Correct Answer: C. a situation in which local industries are set up to produce goods formerly imported

Correct Answer: A. liabilities

Correct Answer: D. manufacturers

Correct Answer: D. level of income

Explanation

(a)Trade by barter can be defined as a system in which people directly exchange one commodity for another.

(b) The main problems of trade by barter are:

(i) The problem of double co-incidence of wants

(ii) No unit of exchange and no common standard of value

(iii) The problem of storing goods discourages large scale production.

(iv) Indivisibility of bulky goods.

(v) No standard for deferred payment.

(vii) It does not make possible installment payments.

(viii) Non-portability of bulky goods.

Correct Answer: B. Mono- product economy

Explanation

Mono- product economy ( an economy that produces one product or commodity) is not a characteristics of developing country. The characteristics are: high level of illiteracy, dependence on agriculture, low savings and investment, low standard of living, population explosion, high death rate etc.

Correct Answer: D. cheques