English 2023 Q44: This question is based on ‘The Lekki Headmaster’. What action does the board take to mitigate the risks posed by the…

JAMB English Language 2023 195 views
Source: JAMB · 2023

This question is based on ‘The Lekki Headmaster’. What action does the board take to mitigate the risks posed by the cooperative’s large loans?

  1. They reduce the loan amounts and impose stricter controls. ✓
  2. They dissolve the cooperative entirely.
  3. They offer staff better repayment terms.
  4. They allow staff to borrow more money for larger purchases.
Explanation

In Chapter 5, Mrs Gloss learns that the staff cooperative holds N95 million and has loaned out N50 million. The staff used it to buy cars. The board is alarmed by this large, independent pool of money.

It responds by cutting what staff can borrow and tightening control. Loans are capped at N250,000, and the MD must personally approve every request. The board does not dissolve the cooperative or let staff borrow more.

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