Business Studies

Business Structure: What is a business structure?

len Alfred Ajibola - 09th April, 2021 @ 12:00 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 Business Structure?

A business structure is a type of organization that is legally backed and recognized within a country, state or a given jurisdiction within that country or state. Also, a business structure is characterized by the legal definitions present within that country, state or jurisdiction.

The legality of a business structure will significantly enhance the economic and social activities of such business. For instance, a legally registered business can easily obtain huge amounts of loan from various financial institutions. Also, they can legitimately run social and empowerment programs in the jurisdiction where they are present. In addition, their tax payments can be easily calculated by the appropriate tax agencies within their region of presence.

Please read on the concept of business in business studies here.


Essentially, the guidelines on how a business should be managed are dependent on the type of business structure. As an instance, one who intends to be a sole proprietor (which is a type of business structure) is expected to know how this type of business (sole proprietorship) functions, the amount of capital needed to start it, the level of supervision required, its pros, cons and so on.

Please read more on sole proprietorship business structure here.

 

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 and profit margin of a business structure will also reflect the amount of tax to be paid regarding the business.

Note: One of the characteristics of government is the generation of income through taxation from various business structures.

You can read on the concept and definitions of government here.


Oftentimes, people begin their businesses with a small business structure; sole proprietorship for instance. This is true because the sole proprietorship business structure requires little capital. As the business grows, the entrepreneur may wish to change the structure of his or her business in order to accommodate its resultant growth. This change emanating from a business' growth will also result in an increased tax liability.

 

We have various types of business structures. Some of these are recognized in a given country, state or jurisdiction while others are non-functional. Below are types of business structures:

 

Generally, a business structure aids in providing vital information for the business in view. These includes:

  1. The owner(s) of the business or company.

  2. Distribution of profits from the business.

  3. How tasks are apportioned and performed by members of the business. This will imply the level of responsibilities for owners, managers and staff respectively.
    You can read on your responsibilities, duties and obligations as a citizen here.

  4. Management of tax and liabilities.

 

Understand that anyone who intends to go into a business should become knowledgeable on the legality of such business. For this reason, having a business structure is extremely important for potential business owners and entrepreneurs.

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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