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GOVERNMENT REGULATION OF BUSINESS

This refers to the various ways by which government controls the activities of business organization to ensure social and economic order in the society.

 REASONS FOR GOVERNMENT REGULATION OF BUSINESS

  1. To raise money through taxes e.g. V.A.T. Education tax etc
  2. To protect consumers against exploitation by producers and middle-men eg by ensuring quality products or by ensuring regular supply of essential goods and services.
  3. To ensure uniformity in commercial practices.
  4. To protect employers and employees and ensure industrial peace
  5. To ensure conformity to international law and protocols e.g. IATA guidelines in the aviation sector.
  6. To facilitate even development of all parts of the country or to promote some critical sectors of the economy.
  7. To promote general improvement of the economy.

 METHODS OF GOVERNMENT REGULATION OF BUSINESS

The various ways by which government regulates business include:

  1. Registration of business: Government register business organization in order to have accurate and up to date statistics on the number and types of business organization operating in the country for example, Limited Liability Companies are registered by the Corporate Affairs Commission.
  2. Patents (Patent Rights): This is the right or privilege granted by law to an inventor of machine or processes of production to enable him enjoy the benefits of his effort for a given period of time. Subsequent to this given time, other person may now copy or imitate the invention or process.
  3. Trade Marks: This is an identification, distinctive symbol design or special marks used in distinguishing products made by a particular company or business organization. The trade mark is registered by the owner and confers on him the exclusive rights to use such identification on his product. The essence (importance) of trade marks becomes obvious when products are to be advertised or promoted e.g. Coca-cola continuous Ribbon; Mercedes Benz Star etc.
  4. Copy rights: This is the sole right accruing or granted to the owner or producer of literary, artistic, dramatic or musical works to reproduce his works and enjoy the financial benefits thereof for a specific period of time. Another person cannot reproduce such work without a written permission from the copy right owner. The copy right usually subsist for some definite periods (50 years for musical copy right) after which it expires.
  5. Approval of Business Location: Government is sometime involved in giving approval for the location of business enterprises. An example of this is the directive of CBN to bank to open their branches in rural areas.
  1. Through the activities of government agencies established to monitor and enforce quality, prices standard or law e.g. SON, NAFDAC, FEPA, KAI etc.
  2. Regulations over ownership of Business: Ownership of business can also be regulated through some policies like indigenization, commercialization and privatization.
  3. Statutory Obligation like payment of Corporation Tax, publication of accounts etc.
See also  Contract | Definition, Parties, Types. Elements

 EVALUATION

  1. Explain four ways by which government regulates business.
  2. State four reasons why government regulates business activities in Nigeria.

 GENERAL EVALUATION QUESTIONS

  • Give five reasons why manufacturers pre – package their products
  • State any four disadvantages of pre- packaging
  • State six distinguishing features of a mail order business
  • Give four advantages of mail order business
  • State six contents of a bill of lading

 READING ASSIGNMENT

Comprehensive commerce for SSS by J. U. Anyaole page 470 – 471

 WEEKEND ASSIGNMENT         

  1. The agency in Nigeria which ensures that products conform to government quality specification is the (a) MAN (b) FBPA (c) SON (d) NLC
  2. An aspect of the law which allows an exclusive right for a limited number of years is (a) patent (b) Trade mark (c) Ratification (d) Proxy
  3. Which of the following has powers to order withdrawal of a particular food item from circulation (a) SON (b) NAFDAC (c) Ministry of Agriculture (d) Ministry of Health
  4. The right of ownership with respect to goods or property is (a) Certificate of occupancy (b) Title (c) Right of occupancy (d) proxy
  5. An author’s exclusive right his published and unpublished work is known as (a) Patent right (b) Author’s right (c) Copy right (d) Constitutional right.
See also  SALE OF GOODS ACT / HIRE PURCHASE ACT

 THEORY

  1. State three reasons why the government regulates the activities of business enterprises in your country.
  2. State three ways by which government regulate business activities.

 

See also

EMPLOYER / EMPLOYEE RELATIONSHIP | DUTIES, RIGHTS

SALE OF GOODS ACT / HIRE PURCHASE ACT

TYPES OF AGENTS And AUCTIONEER

Contract | Definition, Parties, Types. Elements

PUBLIC RELATIONS / CUSTOMERS SERVICES | FUNCTIONS, IMPORTANCE, MEDIA

 

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