SS 3 Commerce (1st, 2nd & 3rd Term)

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 To raise money through taxes e.g. V.A.T. Education tax etc 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. To ensure uniformity in commercial practices. To protect employers and employees and ensure industrial peace To ensure conformity to international law and protocols e.g. IATA guidelines in the aviation sector. To facilitate even development of all parts of the country or to promote some critical sectors of the economy. To promote general improvement of the economy. METHODS OF GOVERNMENT REGULATION OF BUSINESS The various ways by which government regulates business include: Registration of business: Government register business organization in order to have accurate and up to… Read More »GOVERNMENT REGULATION OF BUSINESS

EMPLOYER / EMPLOYEE RELATIONSHIP | DUTIES, RIGHTS

DUTIES OF THE EMPLOYER To pay wages – i.e. enumeration To provide work which the employee will handle To give holidays to the employee Duty to take reasonable care for his employee’s safety Indemnity – The employee must reimburse the employee for any expense / loss incurred on behalf of the employee. Duty to provide the employee with necessary tools to work with Duty to accept responsibility for any personal injuries sustained by the employee in the course of performing his duties DUTIES OF THE EMPLOYEE Duty of care and diligence: Duty to act reasonably or to perform his duties in a reasonable manner Personal service Obedience Secrecy – duty not to divulge the employer’s confidential information to third parties Good faith – The employee must not allow his interest to conflict with his duties Duty not to make secret profit RIGHTS OF EMPLOYER AND EMPLOYEE The rights of the… Read More »EMPLOYER / EMPLOYEE RELATIONSHIP | DUTIES, RIGHTS

SALE OF GOODS ACT / HIRE PURCHASE ACT

SALE OF GOODS A contract of sale of goods is a contract whereby the seller transfer the property in goods to the buyer for a money consideration called the price. The parties to this contract are known as the seller (vendor or transferor) and the buyer (vendee or transferee). The seller must be either the owner of the goods or his duly authorized agent. The relevant law is the Sale of Goods Act 1893. This law does not cover the buying and selling of immovable or real property like land and houses. The Sale of Goods Act deals with only the rules and regulation which governs the buying and selling of personal movable property like motor vehicle, future, machinery, food, clothing and other similar commodities. PROVISION OF THE SALE OF GOODS ACT (1893) A seller has the legal rights to offer goods for sale The sample goods offered to the… Read More »SALE OF GOODS ACT / HIRE PURCHASE ACT

TYPES OF AGENTS And AUCTIONEER

An agent could belong to one of the following classification: Universal Agent – An agent given unlimited or unrestricted power to enter into any type of business contract on behalf of the principal. General Agent – An agent that has authority to act in all matters relating to a particular business. A Commissioned Agent – Buy and sell goods at competitive prices on behalf of the principal in return for a commission linked to sales figures posted. He can deduct his commission when remitting sales money to his principal and equally add his commission to the cost of goods bought on behalf of the principal. Broker – A commercial agent who has the following features: Does not have possession of goods A commission agent He does not sell in his own name His main job is to link his principal with potential customers He cannot pledge the goods He has… Read More »TYPES OF AGENTS And AUCTIONEER

AGENCY | METHODS, DUTIES, PRINCIPLES, PARTIES, AGENTS

Agency is the relationship which arises whenever one person (the agent) acts on behalf of another person (the principal) and has power to affect the principal’s legal position with regard to a third party. In practice, the two most important function of an agent are: Making contracts on his principal’s behalf Disposing of his principal’s property There are three parties to the contract of agency Principal Agent Third party (parties) Methods of Creation of Agency By agreement or consent of the parties either express or implied Necessity – by the operation of the law under the doctrine of agency of necessity. By Ratification – retrospectively approving what someone has done on one’s behalf without prior authority. By Estoppel – Where a person having information that someone has been parading himself as his agent without his authority and failing to stop him; will subsequently be prevented from denying that such a… Read More »AGENCY | METHODS, DUTIES, PRINCIPLES, PARTIES, AGENTS

Contract | Definition, Parties, Types. Elements

A Contract is an agreement between two or more parties which creates legal rights and obligations as between the parties involved. Parties to a Contract This is the identity given to the persons who have made an agreement that is recognized by law as a valid contract e.g. Landlord and Tenant Insurer and Insured Bank and Customer Vendor and Vendee Essential elements of a contract A contract must satisfy certain basic requirements in order to be enforceable at law. These are: Offer and Acceptance Valuable Consideration Intention to create legal relationship € Legal capacity of the parties Genuine Assent Legal Object Offer and Acceptance An Offer is a definite statement by one party called the OFFEROR of the terms under which he will enter into contract with the party to whom it is made called the OFFEREE. An Acceptance occurs when the party to whom an offer is made agrees… Read More »Contract | Definition, Parties, Types. Elements

PUBLIC RELATIONS / CUSTOMERS SERVICES | FUNCTIONS, IMPORTANCE, MEDIA

Public relation is the image building done by an organization to give the public favourable impression about its aims and policies. FUNCTIONS OR IMPORTANCE OF PUBLIC RELATIONS It ensures the maintenance of a favourable relationship between an organisation and the general public It helps to increase the goodwill of a company or business It is a source of useful advice to the management of a business It helps in advertising the products or services of the organisation It helps in building the image of the organisation It creates confidence and understanding between the firm and the public Company policies are well explained and understood by the public It helps in maintaining good company / employees relationship MEDIA OF PUBLIC RELATIONS Exhibitions i.e. display of products of the firm to members of the public at selected places Trade Fairs usually large national or international exhibition which are held annually and where… Read More »PUBLIC RELATIONS / CUSTOMERS SERVICES | FUNCTIONS, IMPORTANCE, MEDIA

ADVERTISING | TYPES. FACTORS, FUNCTIONS, ADVANTAGES, DISADVANTAGES

Advertising is the branch of commerce which deals with promoting sales of goods, services or ideas through messages that are meant to inform, educate and persuade the general public by means of various methods such as newspaper, radio, television. FUNCTIONS OF ADVERTISING Creation of demand for goods and services Informing customers about the existence of new products in the market Persuading customers to buy particular products Educating the public about the uses of a particular product Used to promote the image of firm as producers/sellers of high quality goods and providers of efficient and reliable services It helps in creating brand loyalty It improves the quality of the products TYPES OF ADVERTISING Informative Advertising: This is aimed at informing consumers about the existence/arrival of products. It also gives information about the benefits and uses of a product Persuasive Advertising: This type of advertising uses convincing words/strategies to persuade the customers… Read More »ADVERTISING | TYPES. FACTORS, FUNCTIONS, ADVANTAGES, DISADVANTAGES

INTRODUCTION TO MARKETING | DEFINITION, FUNCTIONS, CONCEPT

Marketing may be defined as the process of assessing consumer needs, wants, preferences and demand; designing and producing goods and services that will satisfy such wants and moving such gods and services to the final consumer at a profit to an organisation. Importance of Marketing to the Economy It encourages mass- production which leads to lower unit cost of goods and services It promotes competition and efficiency It improves the standard of living of people by making modern goods available to them It creates employment opportunities for the practitioners It ensures consumers satisfaction It increases productivity (GDP) and is the key to economic growth Functions of Marketing Exchange function Buying function Selling function Storage function Transportation function Financing function Risk bearing function Pricing function Standardizing and grading of goods Market information and research Production planning and development Determining the level of production EVALUATION QUESTIONS What is Marketing Explain five functions… Read More »INTRODUCTION TO MARKETING | DEFINITION, FUNCTIONS, CONCEPT

ECONOMIC GROUPINGS IN WEST AFRICA

ECONOMIC COMMUNITY OF WEST AFRICAN STATES (ECOWAS) ECOWAS was established on May 28th , 1975 after the treaty establishing it was signed in Lagos, Nigeria. The member countries of ECOWAS are: Sierra Leone 2. Gambia 3.Cape verde 4. Guinea 5. Guinea Bissaau Cote D’ivoire 7. Liberia 8.Burkina Faso 9.Mali 10. Mauritania Niger 12. Nigeria 13.Senegal 14.Benin 15. Togo AIMS AND OBJECTIVES OF ECOWAS Promotion of co-operation and development among member countries. Abolition of trade restriction among member countries. Establishment of common tariff against the rest of the world. Removal of all obstacles to free movement of goods persons and capital among member countries. Harmonization of agricultural policies Implementation of infrastructural schemes and joint developmental projects in the area of transportation, energy etc. Harmonization of monetary policies of member countries Harmonization of economic and industrial policies among member countries To establish a common fund for co-operation, compensation and development.… Read More »ECONOMIC GROUPINGS IN WEST AFRICA

PRIVATIZATION /COMMERCIALIZATION

PRIVATIZATION Privatization is the process whereby ownership and control of the businesses, companies, industries or co-operation are transferred from the Government (public sector) to private individual (private sector) ADVANTAGES OF PRIVATIZATION It promotes efficiency in the business that are commercialized or privatized. Government generates more revenue during the implementation of policies. It leads to competition and innovation as well as improvements in the quality of goods and services. There is great reduction in the level of public expenditure on enterprises that are not viable. It deepens or widens the capital market. It gives the consumers an increases range of choice. DISADVANTAGES OF PRIVATIZATION It leads to uneven distribution of income. It leads to inflation i.e. increase in prices. It leads to mass retrenchment of workers. It leads to the reduction (lowering) of the standard of living of the citizens. Privatization process may not be transparent thereby allowing a… Read More »PRIVATIZATION /COMMERCIALIZATION

INDIGENIZATION

INDIGENIZATION Indigenization is the policy initiated by the government to ensure and accelerate the participation of Nigerian citizens in the ownership and management of business organizations hitherto owned by foreigners. Indigenization transfers ownership of some foreign business operating in Nigeria to indigenous entrepreneurs. The major objective is to reduce the power of control of the economy by foreigners. THE NIGERIAN ENTERPRISES PROMOTION DECREE 1972 This was the first attempt to ensure that Nigerians were participating actively in the economic development of their country, through the ownership and management of enterprises. The federal government promulgated the Nigerian Enterprises Promotion Decree in 1972. The Decree was divided into three schedules or phases. SCHEDULE 1 This covers enterprises or businesses reserved exclusively for Nigerians. These businesses which are small-scale in nature include: Cinemas Hair dressing Retail trade Block making Clearing and forwarding Printing and publishing of newspapers etc. In all about… Read More »INDIGENIZATION

NATIONALIZATION

NATIONALIZATION This is the taking over (or transfer of ownership) of privately owned business enterprises by the government for economic, social and political reasons. Such industries involved are known as NATIONALISED INDUSTRIES and the individual owners of the affected industries are paid compensation by the government. REASONS WHY GOVERNMENT NATIONALIZE INDUSTRY To prevent the exploitation of the consumers. For security, strategic and political considerations. To provide employment for the citizens. To generate revenue that will be used for development. To ensure fair and equitable distribution of social and economic amenities. To break private monopoly power. To provide the large capital required to run some business which private owners may not be able to afford. ADVANTAGES OF NATIONALIZATION It eliminates wasteful competition. It enables the government to provide essential goods and services to consumers at affordable prices. It is used by the Government to control or prevent exploitation of… Read More »NATIONALIZATION

AUTHORITY: SPAN OF CONTROL

AUTHORITY Authority is defined as the right to give orders or command (directive) and enforce compliance (obedience) to the order.Authority may be used directly or delegated. Delegation of Authority: This is a practice whereby decision making powers and authority to handle a particular assignment is transferred to a subordinate by a superior officer.The superior will however assume responsibility for the success or failure of the task undertaken by the subordinate. ADVANTAGES OF DELEGATION OF AUTHORITY It reduces the work load of the superior officer. It prepares or trains the subordinate for higher responsibilities. It quickens decision making. It helps in motivating and boosting the morale of subordinates. It enhances speedy execution of jobs. It enhances communication flow within the organization. It makes smooth succession possible – the subordinates are adequately prepared to take over incase the superior suddenly retires, dies or it transferred. It can lead to cordial… Read More »AUTHORITY: SPAN OF CONTROL

STRUCTURE OF A BUSINESS

Organizational structure is the framework by which tasks are divided, grouped and co-ordinated. It entails the division of the activities of a business organization into departments, division, units and sub-units and the allocation of positions, responsibilities and authorities to the official of a business. USES (PURPOSES) OF AN ORGANISATION CHART It shows the line of authority and responsibilities in an organization. It shows the relationship between the various departments and functionaries in an organization. It is used to show the channel of communication/information within the organization. It shows the various positions in an organization. It also shows the status and role of each member of organization. It shows the span of control of each supervisor or manager. The whole organization structure of the form can be seen at a glance. It is easier to analyze and review the structure of the organization when it is represented graphically. ORGANIZATION… Read More »STRUCTURE OF A BUSINESS

DEPARTMENTS IN A BUSINESS ORGANISATION

DEPARTMENTS IN A BUSINESS ORGANISATION Business organizations are usually divided into different departments on the basis of their functions. The typical departments to be found in a business organization include: Personnel Department. Accounts / Finance Department Training & Manpower Development Department Production Department Sales Department Marketing Department Administration Department Maintenance Department Mails Department etc. FUNCTIONS OF THE PERSONNEL DEPARTMENT Recruitment of staff to fill vacant positions. Handling of staff welfare matters including arrangements for medical care, safety etc. Discipline of staff – including suspension, demotion and dismissal. Appraisal, promotion and fixing of the remuneration of employees. Effecting inter and intra departmental transfer of relevant staff. Maintenance of good industrial and labour relations thereby ensuring industrial peace. Liaising with trade unions within and outside the organization. Organizing courses for staff e.g. induction course, seminars, workshops and symposia. Human Resources Planning – i.e. planning and projecting the manpower needs of the… Read More »DEPARTMENTS IN A BUSINESS ORGANISATION

MANAGEMENT OF BUSINESS

Management has been variously defined as follows: The organ of leadership, direction and decision in a business enterprise. The process of preparing, directing, planning and organizing people and material in order to attain business objectives. DUTIES OF A MANAGER He is the departmental head. He is responsible for planning and executing work in his department. Recruitment and training of workers. He is responsible for delegation of duties to his subordinates. He negotiates and transacts business with outsiders on behalf of the firm. Maintenance of cordial relationship between his department and other departments. Supervision, counseling and disciplining of subordinate staff. FUNCTIONS AND IMPORTANCE OF MANAGEMENT Planning: This involves setting objectives for an organization and choosing the best ways to accomplish them. Organizing: This refers to arranging resources in order to achieve the objectives of an organization. Directing: This simply means aiding the employees to perform their duties effectively. It… Read More »MANAGEMENT OF BUSINESS

INTRODUCTION TO BUSINESS MANAGEMENT

Business can be defined as the sum of all activities involved in the creation and distribution of goods and services for profit. Business management is the act of planning, organizing, directing and controlling business resources in order to attain some set objectives. CLASSES OF BUSINESS Primary/Extractive Business Processing/Conversion Business Distributive/Commercial Business Services Business – Concerned with the provision or marketing of intangible benefits to ultimate users such as banking insurance etc. EVALUATION Define the following terms (a) Business (b) Businessman Mention four importance of business to the individual or society RESOURCES OF BUSINESS Money: This includes all the funds available to the business such as cash, shares, working capital etc. Materials: This includes tools, machinery, equipment and raw materials required to operate the business. Management: This is the resource that plans, directs, controls and organizes other resources for operations to take place. Opportunities: These are identified chances… Read More »INTRODUCTION TO BUSINESS MANAGEMENT

SS 3 Commerce (1st, 2nd & 3rd Term)

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