Problems of Business Financing In Nigeria - SS1 Economics Past Questions & Answers - page 1

1

What is one of the main challenges facing businesses in Nigeria in accessing finance?

A

Low-interest rates

B

Limited access to finance

C

High financial literacy

D

Strong government policies

 

CORRECT OPTION: b
2

What is the impact of high-interest rates on businesses in Nigeria?

A

It makes it easier for businesses to access affordable financing

B

It makes it difficult for businesses to access affordable financing

C

It reduces the risk of default for lenders

D

It encourages more investment in the economy

 

CORRECT OPTION: b
3

What is one of the reasons why some business owners in Nigeria struggle with financial management?

A

 Lack of access to finance

B

High financial literacy

C

Limited understanding of financial management

D

Strong regulatory frameworks

 

CORRECT OPTION: c
4

What is the impact of inconsistent government policies on business financing in Nigeria?

A

 It creates a stable economic environment

B

It creates uncertainty for investors

C

It leads to a reduction in corruption

 

D

It improves financial literacy among business owners

CORRECT OPTION: b
5

What is the impact of corruption on business financing in Nigeria?

A

It reduces the cost of borrowing

B

It makes it easier for businesses to access finance

C

It can affect business financing as some lenders may demand bribes before granting loans

 

D

It improves the regulatory framework

CORRECT OPTION: c
6

What are some of the challenges facing small and medium-sized enterprises (SMEs) in Nigeria in accessing finance?

 

Some SMEs struggle to access finance due to their lack of collateral or credit history.

7

How can limited financial literacy affect businesses in Nigeria?

 

Limited financial literacy can affect businesses in Nigeria by making it difficult for business owners to prepare financial statements or understand loan terms.

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