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SS 3 Ciommerce (1st Term)

Commerce (SS)


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

Commerce (SS)


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

Commerce (SS)


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

Commerce (SS)


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

Commerce (SS)


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

Commerce (SS)


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

Commerce (SS)


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

Commerce (SS)


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

Commerce (SS)


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

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