Topics in Business StudiesFranchise Business Structure: Types, Advantages and Disadvantages What is Corporation? Types, Advantages and Disadvantages of Corporations What is Limited Liability Company? Its Advantages and Disadvantages Partnership in Business: Types, Advantages and Disadvantages Business 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
Academic Questions in Business Studies
Which of the following is NOT a characteristics of business?
A. The buyer and seller must always come into a contract agreement
B. Risk from unforseen circumstances is involved
C. They are subject to policies made by the government
D. All business transaction is aimed at making profit
E. It requires a discontinuous transaction between the buyer and the seller
F. Investments are required to begin a business
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 _____.
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Just as we have two sides to a coin, so also are there two sides to every transaction. For instance, in order to purchase a phone from a local store, you will need to pay some money to the store attendant before you can own the phone.
The above simple transaction has two sides from the perspective of the buyer (you) and the seller (store attendant). From the transaction, your money would have been decreased by the amount you paid for the phone while the seller would be short of a phone. Conversely, you will own a new phone while the seller’s cash balance would have increased by the amount you paid for the phone.
If the two parties were to take a record of the transaction, each of their record will have two sides.
From the buyer's record (you); one half (called the debit side of the account) will reflect an increase in expense because you paid out money to own the phone while the other half (credit side of the account) will reflect an increase in asset because the phone becomes yours and you may use it for whatever purpose you wish. (The phone becomes an asset for the buyer).
From the seller’s record, one half (debit side of the account) will reflect an increase in labiality due to the resultant absence of the phone from its sale while the other half (credit side of the account) will reflect an increase in income because money was received from the sale of the phone.
Asset accounts are debited when they are increasing while Liability accounts are credited when they are increasing.
Expenses accounts are debited when they are increasing while Income accounts are credited when they are increasing.
Also, think of credit as 'getting paid'. For instance, if your bank account is credited, that will imply that money has been paid into it.
Think of debit as 'spending money'. For instance, whenever you purchase something, your account will be debited.
From the above explanations, a transaction involving two corresponding parties of account is termed Dual Entry of Transaction.
On the debit side (Dr) is the account receiving the benefit while that which gives the benefit appears on the credit side (Cr) of the account.
The process of keeping an account with a debit and credit side is referred to as the Double Entry System.
An accounting system that is based on this principle; 'that for every debit entry made, there must always be a corresponding credit entry' is known as the Principle of Double Entry or Duality Principle. This principle ensures that whatever is present on the debit must equal that of the credit; that is 'Debit = Credit'.
Note: Without the concept of double entry, account records will only present or show a partial view.
Sometimes, the confusing aspect of writing the dual entry account is the uncertainly of what to write on the debit and credit sides. This should not be a problem because an understanding of the characteristics or features of debit and credit sides of accounts will put you through.
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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