Commercialization | Meaning, Advantages, Disadvantages & Reasons

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Meaning of Commercialization Commercialization, in essence, represents a fundamental shift in the operational ethos of government enterprises. It marks a strategic transformation from a predominantly service-driven orientation to one that is firmly profit-centric. This metamorphosis is emblematic of a dynamic process where the core objectives and motivations guiding these enterprises evolve significantly. At its core, … Read more

Introduction to Business Management | Resources, Functions & Departments

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Meaning of Business: Business refers to the organized effort of individuals to produce, sell, or buy goods and services with the aim of generating a profit. It involves various activities such as production, marketing, sales, finance, and operations, all geared towards achieving financial success and sustaining the enterprise. Meaning of Management: Management involves the coordination … Read more

COMMUNICATION

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Communication is the act of sending and receiving message/information from one person or place to another. Communication could be oral, written or visual.   IMPORTANCE OF COMMUNICATION TO COMMERCE It facilitates contacts between businessmen It creates awareness for goods and services thereby increasing demand for goods/sales It facilitates the settlement of business debts e.g. Mail … Read more

STOCK EXCHANGE

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A stock exchange is a specialized market where investors can buy and sell existing securities like shares, stocks, debentures and gill edge securities. It is a part of the capital market.   FUNCTIONS (IMPORTANCE) OF THE STOCK EXCHANGE It is a market for buying and selling of hand securities. it assists companies to raise capital … Read more

THE FINANCIAL POSITION OF BUSINESS FIRMS

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DETERMINATION OF THE VIABILITY OF A BUSINESS To determine whether or not a business is viable an investigation into the following sources of information must be made. Trading, Profit and Loss Account. Balance Sheet Annual Reports of Limited companies. Stock Exchange Report relating to quoted companies. Financial Ratios prepared by accountants and investment analysts.   … Read more

PROFIT

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The profit of a business firm could be either Gross Profit or Net Profit.   GROSS PROFIT This is the total sales less Cross Price: It is the same as mark-up which is the amount a seller adds to his cost or buying price to determine his selling price. i.e. Gross Profit   =  Sales  –  … Read more

CAPITAL

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Capital in business refers to all the assets and property of a firm.   TYPES OF CAPITAL FIXED CAPITAL: This refers to the assets of a firm which the business is carried on, and which are used continuously in the process of earning income e.g. Buildings, machinery fixtures and fittings CIRCULATING OR FLOATING CAPITAL: This … Read more

INSURANCE IV

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PROCEDURES OF INSURANCE CONTRACT The various processes involved in obtaining an insurance are: An Inquiry- i.e. finding out about the insurance either directly from the insurance company or agents(brokers) Proposal Form – This is issued by the insurance company. It must be completed truthfully and honestly (i.e. with utmost good faith) by the person seeking … Read more

INSURANCE III

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FORMS OF LIFE POLICY Whole life Assurance: Premiums are paid throughout the lifetime of the assured and the sum assured is payable only when death of the holder of the policy occurs. This policy is taken for the benefit of dependants like children , wife and relations Term assurance: This is to cover the life … Read more

INSURANCE II

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PRINCIPLES OF INSURANCE There are six main principles which underlie insurance contracts and which must be present for the contract to have validity. These principles are: INSURABLE INTEREST: The person who takes an out insurance policy (i.e. the insured) must have an interest in the subject matter of the insurance policy. This means that so … Read more

INSURANCE

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Insurance is a contract whereby an insurer or underwriter agrees to compensate the insurer in the event of his suffering a loss, in return for the payment of a premium by the insured. Insurance is indeed a contractual agreement between the insured (the individual or entity seeking insurance coverage) and the insurer or underwriter (the … Read more

INDUSTRIAL COMBINATIONS/INTEGRATION

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INDUSTRIAL COMBINATION Industrial combination (or integration) is the coming together of two or more firms in order to form one large economically stable firm.  REASONS FOR INDUSTRIAL COMBINATION Firms may integrate in order to fight economic recession The desire to reap the advantage of monopoly To obtain stable prices. To obtain raw materials from direct … Read more

TRADE ASSOCIATION/CHAMBERS OF COMMERCE

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TRADE ASSOCIATIONS Trade Association is an association of traders or producers engaged in the same line of trade whose major aim is to protect and safeguard the interest of their members as well as their business. Examples are M.O.A.L.S (Motorcycle Operators Association of Lagos State) FEATURES OF TRADE ASSOCIATION Membership is voluntary They are regionally … Read more

PUBLIC ENTERPRISES

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PUBLIC ENTERPRISES Public Enterprises are business organizations established, owned, managed and controlled by the government. They are also referred to as Public Corporations or Statutory Corporations. Examples of Public Enterprises in Nigeria are PHCN, NNPC, NRC, NPA e.t.c.  METHODS OF FORMATION OF PUBLIC ENTERPRISES Creation by Act of Legislature or a Decree Nationalization of private … Read more

CO-OPERATIVE SOCIETIES

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A co-operative society is a voluntary association of persons, businessmen, traders or organization with common needs and interests. The resources of members of are pooled together to promote the economic and welfare interest of the members.  PRINCIPLES OF CO-OPERATIVE SOCIETIES Co-operative societies are based on the following principles. Open and Voluntary membership Democratic management and … Read more

INTRODUCTION TO DATA PROCESSING

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Data Processing is the process of producing meaningful information from raw data.  It describes the series of actions taken to produce useful information by collecting all items of data together and performing operations on them.  The aim of data processing is to convert raw data into information. Data: Data represent the raw unprocessed input element … Read more

TERMS OF TRADE

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SPECIAL TRADE TERMS AND MEANS OF PAYMENT TERMS OF QUOTING PRICE. CIF (Cost, Insurance and Freight): A price quoted CIF simply means that it includes the cost of goods insurance, carriage to the port of destination but exclude delivery from the dock to the purchaser’s premises. The importer is responsible for other charges. FOB (Free … Read more

BUYING AND SELLING DOCUMENTS

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Documents used in buying and selling of goods. When business transactions occur, certain documents are drawn up and passed from one person to another. These documents are used to effect transactions between buyers and sellers. The documents are explained below;   TRADE JOURNAL: This is a publication devoted to a particular branch of retail and … Read more