Topics in Business StudiesBusiness Studies: What is Business Studies and Business? Management: Elements of Management What is Management? Importance of Management Advantages and Disadvantages of Air Transport Advantages and Disadvantages of Rail Transport Methods of Payment: Cheque - What is a Cheque? Cheque: Types of Cheque Cheque: Characteristics of Cheque Advantages and Disadvantages of Cheque Advertising and Types of Advertising Advantages and Disadvantages of Road Transport Advantages and Disadvantages of Water Transport Consumer Protection - Agencies of Consumer Protection Consumer Right and Protection Methods of Payment: Credit Cards and Debit Cards Methods of Payment: Bank Notes and Coins | Characteristics of Legal Tender Scope and Importance of Business Studies Business Structures: Sole Proprietorship, Advantages and Disadvantages Clerical Staff: Grades, Qualities and Functions of a Clerical Staff Principle of Double Entry: Characteristics, Advantages, Disadvantages
Academic Questions in Business Studies
Which of the following is not a Right of Consumer Protection?
Which of the following is NOT a government agency of consumer protection?
Define Consumer Protection.
In buying and selling, the retailer will usually operate from the stall while the wholesaler operates from the _____.
A business structure is a type of organization that is legally backed and recognized within a country or state.
Before starting a business, one will need to choose the best possible structure for his or her intended business. The larger the business structure, the larger the sum of money required to start and run such business. The type of business structure will also reflect the amount of tax to be paid on the business.
Note: One of the characteristics of a Government is the generation of income through taxation from various business structures.
Oftentimes people start (a business) with a small business structure; let’s say sole proprietorship for instance because it requires a small capital. As the business grows, one may wish to change the structure of the business in order to accommodate its growth. This change as a result of business growth will also result in an increased tax liability.
Below are the various types of business structure:
This is a one man or one woman business. If the man or woman is married, both parties (husband and wife) can still be considered as a sole proprietorship.
Sole Proprietorship happens to be the easiest business structure to start because the business capital is not necessarily huge.
The taxation of a sole proprietor is significantly lower when compared to other forms of business structure.
The sole traders have got total control over their business because all decisions concerning the business is made by them. On the other hand, they are liable for all the loss and debt incurred in the business.
Nowadays, obtaining loans to begin a sole proprietorship business structure is easier compared to the past where one will need to depend on their personal income or the use of collaterals.
Partnership consists of people (2 - 20 people and not including married couples) coming together with the intentions to utilize their money and skills for the purpose of building a business together.
A member in the partnership may take loan on behalf of the partnership business structure provided the legal agreement permits it.
Partnership can be of two forms:
1. General partnership
2. Limited partnership
In general partnership, all the partners contributes their money and skill to manage the business. They equally share the profit from the partnership business structure and bear the loss together. They will also share equally any debt incurred in their business.
A limited partnership may consist of both a general partnership and the limited partnership.
The limited partners are actually limited in the business because they have no control over the business.
Limited partners serve only as investors in the business and accept a lesser liability when things go wrong in such business; unlike the general partners who operate the business and will accept a greater liability.
The Limited Liability Company business structure combines the advantages of sole proprietorship and partnership.
It is formed by a group of people who have legally agreed to the general management of the business.
Tax payment applies to each member of the Limited Liability Company.
A corporation is a legal entity where a group of people (called investors) buy shares which becomes the evidence of being a member of the corporation.
The cooperation be profit or nonprofit oriented.
The nonprofit corporation will usually have a specific goal outside making profit. These goals are usually of benefit to a certain group of people in the society, for instance, the widows, less privileged, physically challenged and so on.
In a profit oriented corporation, the liabilities and benefits goes beyond a single individual.
For a franchise to be established, the go-ahead is often given by a parent company (called the franchisor) before the other person or group (called the franchisee) can carry out related commercial activity on behalf of the franchisor.
As an instance, a parent company (the franchisor) that produces drugs may require an individual or a group or another company (the franchisee) to become the official distributor for the franchisor’s product.
Note: A franchisee is a individual or company that has been liscensed to do business on behalf of another company called the franchisor.
The franchisee will have to purchase a franchise from the franchisor.
This form of business structure will enable two or more persons acquire the same business space.
Although two or more persons share a business space, it is important to understand that each person is solely responsible for his or her own profit and loss during the business activity.
As an instance, two persons may share a shop with the purpose of uniquely running their respective business in it.
In another example, two unrelated persons can buy a house after which they both live with their families in different apartments or quarters within the same house.
A trust business structure is based on trust and will often require a legal structure to begin with.
The trustee is assigned with the privilege of managing the business or property of another person referred to as the beneficiary.
An association is a group of people coming together with the intentions of supporting each other.
The members of an association are usually of similar occupation. For instance, we may have the Association of Barbers, Associations of Tailors, Manufacturer Association of Nigeria (MAN and so on.
The members generally contribute to the growth of the association.
This business structure is formed by two or more persons (or organizations) only for a limited time frame.
They carry out their business within the stipulated time before going their separate ways.
This is a public corporation established by the local government.
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Amazing facts in Business Studies
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NOTABLE POINTS IN Business Studies
Consumer protection refers to the ways or methods through which consumers enjoy maximum satisfaction from the goods they buy and services rendered to them.
The agencies of consumer protection assists in protecting the consumer rights. These agencies may also be referred to as the organs of consumer protection. Basically, we have three of them, they are:
One of the responsibilities of the government of every nation is to set up agencies or organizations that will protect the interest of the consumers and invariably, the people.
Below are some of the Government Agencies of consumer protection
- National Drug Law Enforcement Agency (NDLEA)
- National Agency for Food, Drug Administration and Control (NAFDAC)
- Consumer Protection Council (CPC)
- Rent Tribunal
- Ministry of Health
- Ministry of Commerce
- Ministry of Transportation
- Ministry of Environment
- National Wages and Salaries Commission