Business Studies

Corporation explained with its types

len Alfred Ajibola - Wed, 06th May, 2020 @ 3:28 PM

Topics in Business Studies

What is an Office? Qualities of a good office layout Small office explained with its characteristics Large office: Characteristics of large office Advantages and disadvantages of small office Advantages and disadvantages of large office Advantages and Disadvantages of Corporations Advantages and Disadvantages of Limited Liability Company Advantages and Disadvantages of Partnership Credit card and Debit card explained with their similarities and differences Business Structure: What is a business structure? Advantages and Disadvantages of Franchise What is a franchise? Types of franchise Corporation explained with its types What is Limited Liability Company? What is Partnership Business? Types of Partnership What is business studies? Concept of business Elements of Management What is Management? Importance of Management Advantages and Disadvantages of Air Transport Advantages and Disadvantages of Rail Transport

Academic Questions in Business Studies

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A one-man business is termed _____.

  • A. Proprietorship

  • B. Sole Proprietorship

  • C. Individual Entrepreneurship

  • D. Sole Trader

  • E. All of the Above

  • F. None of the Above

Which of the following is not a function of the wholesaler?

  • A. They distribute goods

  • B. They store goods

  • C. Specialization of goods

  • D. They bring about price variability in goods

  • E. They act as shock absorbers during the movement of goods

  • F. Packaging of goods

A person employed by an organization to carry out the everyday duties of a typical office, and at the same time perform a couple of other functions for their company which may vary from one company to another, is termed a _____.

  • A. Secretary

  • B. Personal Assistant (P.A)

  • C. Secretary General

  • D. Clerical Staff

  • E. Supervisor

  • F. Bookkeeper

Dual Entry System - Len Academy

The above image best describes the _____.

  • A. Ledger system

  • B. Journal system

  • C. Double entry system

  • D. Balance sheet system

  • E. Principles of accounting system

  • F. Balanced accounting system

An accounting system focused primarily on a balanced debit and credit side is termed _____.

  • A. Ledger system

  • B. Journal system

  • C. Double entry system

  • D. Balance sheet system

  • E. Principle of accounting system

  • F. Balanced accounting system

With regards to money, which of the following statement is incorrect?

  • A. Money is crucial for the survival of every human being

  • B. Money is completely advantageous

  • C. Money is defined as anything that is generally accepted as a medium of exchange

  • D. Monopoly is said to exist when money and wealth exists in the hands of a few

  • E. Excess money in an economy can lead to inflation

  • F. When a person receives money that isn't commensurate with the job he or she had done, then that's underemployment

Which of the following statement is wrong with regards to business?

  • A. Business involves the exchange of something for another thing or money

  • B. Business is an economic activity

  • C. In business, profit goes beyond money

  • D. Businesses do not have social responsibilities to their customers

  • E. The exchange of services is an aspect of business

  • F. Businesses can be affected by government policies

Consumer _____ are the laws and methods put in place by various agencies so that consumers can enjoy maximum satisfaction on the goods they buy and services rendered to them.

  • A. Protection
  • B. Policy
  • C. Rights
  • D. Defence
  • E. Guide
  • F. Safety

What is a Corporation?

A corporation is a business structure and legal entity whereby a group of people (called investors) buy shares as an evidence of being a member of the corporation. In simple terms, the corporation is a business structure owned by shareholders and managed by a Board of Directors (BoD). The shareholders own shares and stocks in the company (corporation).

Please read the introduction to business structure here.

Corporation can be profit or nonprofit oriented.

The nonprofit or not-for-profit corporation will always 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 and physically challenged. These may all be beneficiaries of a nonprofit corporation like the religious corporation. However, other nonprofit corporations may focus on education and human empowerment.

You can read on pressure group and types of pressure group here.

The nonprofit corporation is typically seen in Non Governmental Organizations (NGOs) that render humanitarian and empowerment services to the less privileged in the society. These nonprofit corporations must be legally recognized by the state where they are present.

Please read on sole proprietorship here.

A nonprofit corporation does not pay income tax to the state or federal government on the money it generates while carrying out various services. It is important to state that the money generated from an NGO must be used for community services. It should not be siphoned by its founding members for their respective personal interests.

You can read on community service and it's benefits here.

In a profit oriented corporation, its main goal is to make profit and such profits (and possible liabilities) goes beyond a single individual. In this case, it covers all the shareholders who own shares, buy shares, as well as sell shares.

Please read on limited liability company here.

Types of Corporation

Corporations usually exist in two types or forms. These are:

  1. C Corporation

  2. S Corporation

Please read on the advantages and disadvantages of corporation here.

The C Corporation is the more common form of corporation. It can be owned by an unlimited number of shareholders; and they exist as the large, publicly traded companies present in various cities around the world.

Note: The C corporation cost more in its formation and typically, there is double taxation on the business profits.

You can read on the concept and types of cost here.

The S Corporation shares most of the features of a C Corporation. However, it employs a better tax structure for the shareholders when compared to the C Corp.

The owners making up an S corporation are limited to a maximum of 100 shareholders. In addition, the type of shareholders are limited in the S corporation.

Please read on partnerships, types advantages and disadvantages.

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Amazing facts in Business Studies

Utrecht - Len Academy

According to the Global Bicycle Index, Utrecht in Netherlands is the most bike-friendly city in the world

The world's 100 richest people earned enough money in 2012 to end global poverty four times over

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:

  1. Government Agencies

  2. Independent Agencies

  3. Legislation

Please read on consumer protection here

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

Please read on the government agencies of consumer protection here