Instructions:

- Form a group of 5 students.

- Page limits:- 10-15 pages
- Maximum mark:- 20%
1. How would you distinguish traders from ordinary persons?
2. Financial business in Ethiopia is not only reserved to nationals but also can only be
undertaken in the form of Share Company. Why such a restriction?
3. “Private limited companies in Ethiopia have the combined virtues of privacy of
partnerships and permanence of share companies”. Explain.
4. Joint ventures are secret profit-making institutions so much so that they do not have legal
personality. What purpose does the law contemplate when it recognizes such form of
business organizations?
5. Insurance is an indispensable social service sector. Discuss the rationale behind the
emergence of an insurance scheme.
6. What requirements must be met for an instrument to be negotiable?
7. A note has two original parties. What are they? A cheque has three original parties. What
are they?
8. What are the differences between instruments to bearer and to order?
9. The following note is written by Admassu Kibebew on the back of an envelope: “I,
Admassu Kibebew, promise to pay Maeregu Tesfaye or bearer Birr 1000 on demand.’ Is
this a negotiable instrument? Discuss fully.