Welcome great EduPodian, here is your Third Term SS1 Commerce Lesson Note excerpt.
Scheme of Work
1 Business Organizations – Sole Proprietorship
2 Partnership
3 Partnership
4 Money
5 Central Bank
6 Commercial Bank
7-8 The Cheque System
9 Negotiable Instruments – Bills of Exchange etc.
10 Other Financial Institutions
11 Revision
Week 1:
TOPIC: FORMS OF BUSINESS UNITS
CONTENTS
1. Definition
2. Types (forms) of business units
3. Sole proprietorship
FORMS OF BUSINESS UNITS
Business units can be divided into two broad classes namely, the private sector or private enterprise and the public sector or public enterprise. The private sector or enterprise is made up of all the business enterprises owned and controlled by private individuals whereas the public sector or enterprise covers all enterprises owned and controlled by the government.
There are five main forms of business units under the private sector or enterprise, namely:
1. The sole proprietorship – i.e. the sole Trader or One-man business
2. The Partnership
3. The Private Limited Liability Company
4. The Public Limited Liability Company
5. The Co-operative Society
Public enterprises (also called Public Corporations or Statutory Corporations) as mentioned earlier are owned, controlled and financed by the government.
FACTORS INFLUENCING THE FORM A BUSINESS UNIT WILL TAKE
1. The amount of capital available for setting up the business
2. Personal ability or experience/skill of the entrepreneur
3. Type or nature of the business
4. Size or extent of the market (i.e. the demand for the products of the business
5. Degree of risk or uncertainty involved in the business
6. Personal interest/motive/objective of the entrepreneur
7. Government policies – i.e. the economic legal social and industrial policies of the government.
SOLE PROPRIETORSHIP
This is a business established and being controlled by a person who provides all the capital. It is a type of business unit in which one person provides the capital bears the risks and takes full responsibility for the firm. Sole proprietorship is… Click here to order the complete Commerce Lesson Note for SS1 third term
Week 2:
TOPIC: PARTNERSHIP
CONTENTS
1. Definition, features, advantages and disadvantages
2. Business conditions suitable for partnership
3. Formation formalities, documentations
4. Rights of partners
5. Sources of finance
6. Dissolution of partnership
PARTNERSHIP
A partnership is defined as the relationship that exists between two or more (but more than twenty) persons carrying on a business in common for the purpose of making profits.
A partnership is the relationship that exist when two or more persons contribute skill, moneys’ worth in order to establish, own and manage business organization with the sole aim of making profit.
CONDITIONS SUITABLE FOR THE FORMATION OF PARTNERSHIP
1. Partnership is suitable for executing short term venture
2. Partnership is suitable where the ownership and control should not be extended outside the family or friends
3. Partnership is suitable where the success of the business requires the skill or knowledge of experience members of the partnership e.g. solicitors
4. Partnership is suitable where large amount of capital is not necessary for a business as in a limited liability company.
5. Partnership is suitable where the partners have contractual capacity
FORMATION OF PARTNERSHIP
A partnership may be established without any special formalities. However a written agreement called a partnership deed is usually drawn up.
PARTNERSHIP DEED: This is… Click here to order the complete third term Commerce Lesson Note for SS1
Week 3:
TOPIC: PARTNERSHIP
CONTENTS
1. Types of Partnership – features
2. Types of ordinary partners
3. Demerits of a limited partner
TYPES OF PARTNERSHIP
There are two main types of partnership business namely:
a. Ordinary Partnership (or General partnership)
b. The Limited Partnership
THE ORDINARY PARTNERSHIP (GENERAL PARTNERSHIP)
Characteristics or features:
1. Membership/Number of partners: May consist of between 2 to 20 persons. However by the companies Act 1967 this restriction of not more than 20 persons no longer applies to solicitors accountants, jobbers and brokers
2. Formation: No special… Click here to order the complete Lesson Note on Commerce SS1 third term
Week 4:
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