{"id":3113,"date":"2023-10-04T11:06:40","date_gmt":"2023-10-04T11:06:40","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=3113"},"modified":"2023-10-04T11:07:45","modified_gmt":"2023-10-04T11:07:45","slug":"week-3-and-4-ss2-second-term-commerce-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-3-and-4-ss2-second-term-commerce-notes\/","title":{"rendered":"Week 3 and 4 – SS2 Second Term Commerce Notes"},"content":{"rendered":"

\u00a0WEEK THREE AND FOUR \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Date: ____________
\n<\/strong>TOPIC: PUBLIC ENTERPRISES
\n<\/strong>CONTENT
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Features of Public Enterprises
\n2.\u00a0\u00a0\u00a0\u00a0Reasons for government ownership of Public Enterprises
\n3.\u00a0\u00a0\u00a0\u00a0Advantages and Disadvantages of Public Enterprises
\n4.\u00a0\u00a0\u00a0\u00a0Sources of Capital\/Finance for Public Enterprises.<\/p>\n

\u00a0PUBLIC ENTERPRISES<\/strong>
\n\t\tPublic Enterprises are business organizations established, owned, managed and controlled by the government. They are also referred to as Public Corporations or Statutory Corporations.
\nExamples of Public Enterprises in Nigeria are PHCN, NNPC, NRC, NPA e.t.c.<\/p>\n

\u00a0METHODS OF FORMATION OF PUBLIC ENTERPRISES<\/strong>
\n\t\t1.\u00a0\u00a0\u00a0\u00a0Creation by Act of Legislature or a Decree
\n2.\u00a0\u00a0\u00a0\u00a0Nationalization of private industries
\nNationalization is the bringing of ownership and management of private industries under the control of the government. Nationalized industries are therefore industries taken over from private owners by the government.<\/p>\n

\u00a0FEATURES OF PUBLIC ENTERPRISES <\/strong>
\n\t\t1.\u00a0\u00a0\u00a0\u00a0They are owned and financed by the government
\n2.\u00a0\u00a0\u00a0\u00a0They render essential social services
\n3.\u00a0\u00a0\u00a0\u00a0Profit making is not the main motive of their establishment.
\n4.\u00a0\u00a0\u00a0\u00a0They are usually monopolies
\n5.\u00a0\u00a0\u00a0\u00a0They are established by Acts of Parliament or Decrees
\n6.\u00a0\u00a0\u00a0\u00a0They are managed by appointed Board of Directors
\n7.\u00a0\u00a0\u00a0\u00a0Their employees are public servants
\n8.\u00a0\u00a0\u00a0\u00a0Huge amount of capital is involved in their establishment.
\n9.\u00a0\u00a0\u00a0\u00a0They are separate legal entities
\n10.\u00a0\u00a0\u00a0\u00a0Their services are restricted
\n11.\u00a0\u00a0\u00a0\u00a0They enjoy perpetual existence <\/p>\n

\u00a0REASONS WHY GOVERNMENT OWN PUBLIC ENTERPRISES<\/strong>
\n\t\t1.\u00a0\u00a0\u00a0\u00a0The large capital requirement which is needed in some business cannot be provided by private interests
\n2.\u00a0\u00a0\u00a0\u00a0For price control and consumer protection purposes i.e. to prevent exploitation of consumers
\n3.\u00a0\u00a0\u00a0\u00a0To control or curtail private monopoly powers
\n4.\u00a0\u00a0\u00a0\u00a0For strategic and security reasons
\n5.\u00a0\u00a0\u00a0\u00a0To generate revenue for the government
\n6.\u00a0\u00a0\u00a0\u00a0To prevent foreign dominance of the economy
\n7.\u00a0\u00a0\u00a0\u00a0To provide essential services to the citizens at affordable prices.
\n8.\u00a0\u00a0\u00a0\u00a0To avoid wasteful duplication of facilities and services inherent in market competition.
\n9.\u00a0\u00a0\u00a0\u00a0To provide employment opportunities to the people
\n10.\u00a0\u00a0\u00a0\u00a0To ensure even distribution of income.
\n11.\u00a0\u00a0\u00a0\u00a0To ensure constant supply of goods and services and checkmate the activities of hoarders of goods
\n12.\u00a0\u00a0\u00a0\u00a0To control vital economic activities eg. NNPC, FAAN.
\n13.\u00a0\u00a0\u00a0\u00a0To promote rapid and even economic development of the whole country eg. Rural industrialization
\n14.\u00a0\u00a0\u00a0\u00a0To encourage research and development activities.
\n15.\u00a0\u00a0\u00a0\u00a0To provide a model of efficient management in some social and economic activities eg. State farms, universities, schools, hospitals etc.<\/p>\n

\u00a0EVALUATION
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0List and explain six reasons for government ownership of enterprises.
\n2.\u00a0\u00a0\u00a0\u00a0State and explain five feature which are common to public corporation and public limited companies <\/p>\n

\u00a0ADVANTAGES OF PUBLIC ENTERPRISES
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0They ensure steady supply of essential services
\n2.\u00a0\u00a0\u00a0\u00a0They prevent exploitation of consumers
\n3.\u00a0\u00a0\u00a0\u00a0They provide employment opportunities for people
\n4.\u00a0\u00a0\u00a0\u00a0They generate revenue for the government
\n5.\u00a0\u00a0\u00a0\u00a0They enhance the provision of infrastructural facilities
\n6.\u00a0\u00a0\u00a0\u00a0They check duplication of the facilities and wasteful competition
\n7.\u00a0\u00a0\u00a0\u00a0They ensure the development of critical capital intensive projects eg. Steel industry.
\n8.\u00a0\u00a0\u00a0\u00a0They provides essential services at reasonable costs
\n9.\u00a0\u00a0\u00a0\u00a0They check foreign domination of the economy
\n10.\u00a0\u00a0\u00a0\u00a0They uphold and strengthen national security
\n11.\u00a0\u00a0\u00a0\u00a0The are accountable to the public \u2013 they have to submit their annual reports\/accounts to the Parliament
\n12.\u00a0\u00a0\u00a0\u00a0They ensure availability of enough capital for projects <\/p>\n

\u00a0DISADVANTAGES OF PUBLIC ENTERPRISES <\/strong>
\n\t\t1.\u00a0\u00a0\u00a0\u00a0Their operations involve very large capital requirements.
\n2.\u00a0\u00a0\u00a0\u00a0Very slow decision making process, bureaucracy and red tapism
\n3.\u00a0\u00a0\u00a0\u00a0Prevalence of large scale fraud, corruption and mismanagement.
\n4.\u00a0\u00a0\u00a0\u00a0Frequent government\/political interference of its activities and management
\n5.\u00a0\u00a0\u00a0\u00a0Politicization of appointments.
\n6.\u00a0\u00a0\u00a0\u00a0Inefficiency of its operation e.g poor and irregular services.
\n7.\u00a0\u00a0\u00a0\u00a0Poor and epileptic funding by the government.
\n8.\u00a0\u00a0\u00a0\u00a0Diseconomies of large scale production
\n9.\u00a0\u00a0\u00a0\u00a0Non-challant attitude, lack of commitment, laziness, negligence on the part of workers.
\n10.\u00a0\u00a0\u00a0\u00a0Dependency on the public treasury for funds. Public enterprises are usually chronic loss-makers and as such constitute a drain on public funds.
\n11.\u00a0\u00a0\u00a0\u00a0It lacks privacy.<\/p>\n

\u00a0SOURCES OF CAPITAL\/FINANCE FOR PUBLIC ENTERPRISES
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Grants and subvention from the government.
\n2.\u00a0\u00a0\u00a0\u00a0Grants from foreign countries or international organizations.
\n3.\u00a0\u00a0\u00a0\u00a0Internally generated revenue\/retained profits
\n4.\u00a0\u00a0\u00a0\u00a0Loans from banks or other financial institutions
\n5.\u00a0\u00a0\u00a0\u00a0Trade credits (i.e. credit purchases)
\n6.\u00a0\u00a0\u00a0\u00a0Hire purchase
\n7.\u00a0\u00a0\u00a0\u00a0Equipment leasing
\n8.\u00a0\u00a0\u00a0\u00a0Sale of Assets<\/p>\n

\u00a0EVALUATION
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Explain five difference between public limited companies and public corporations
\n2.\u00a0\u00a0\u00a0\u00a0State six disadvantages of public corporation<\/p>\n

\u00a0GENERAL EVALUATION QUESTIONS
\n<\/strong><\/p>\n

    \n
  1. \n
    State three uses of capital as a factor of production\n<\/div>\n<\/li>\n
  2. \n
    State four uses of land as a factor of production\n<\/div>\n<\/li>\n
  3. \n
    State five features of a partnership business\n<\/div>\n<\/li>\n
  4. \n
    Explain five reasons why government participate in business\n<\/div>\n<\/li>\n
  5. \n
    State five advantages of a public limited company\n<\/div>\n<\/li>\n<\/ol>\n

    \u00a0WEEKEND ASSIGNMENT
    \n<\/strong>1.\u00a0\u00a0\u00a0\u00a0The most common form of business unit in West Africa is (a) Co-operative society (b) Joint stock company (c) Sale proprietorship (d) Public corporation.
    \n2.\u00a0\u00a0\u00a0\u00a0Which of the following would not affect the form of a business unit (a) Availability of raw materials (b) The type of business (c) Number of persons involved (d) The capital size.
    \n3.\u00a0\u00a0\u00a0\u00a0The functions of public corporations include the following except (a) Providing even development (b) Providing employment opportunities (c) Providing essential services to the public (d) Maximizing profits for the board members
    \n4.\u00a0\u00a0\u00a0\u00a0Which of the following is established to provide essential facilities to the citizens (a) Public limited company (b) Public corporation (c) Sole proprietorship (d) Co-operative society
    \n5.\u00a0\u00a0\u00a0\u00a0Which of the following is a public monopoly (a) Lever Brother Nigeria Plc (b) PZ Nigeria Plc (c) National Electric Power Authority (d) United African Company Ltd<\/p>\n

    \u00a0THEORY
    \n<\/strong>1.\u00a0\u00a0\u00a0\u00a0List the Sources of finance available to a Public corporation.
    \n2.\u00a0\u00a0\u00a0\u00a0State four advantages and two disadvantages of public corporations<\/p>\n

    \u00a0READING ASSIGNMENT
    \n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Essential Commerce for SSS by O. A. Longe Page 173 \u2013 177
    \n2.\u00a0\u00a0\u00a0\u00a0Comprehensive commerce for SSS by J. U. Anyaele Page 311 \u2013 316<\/p>\n

    \t\t\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

    \u00a0WEEK THREE AND FOUR \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Date: ____________ TOPIC: PUBLIC ENTERPRISES CONTENT 1.\u00a0\u00a0\u00a0\u00a0Features of Public Enterprises 2.\u00a0\u00a0\u00a0\u00a0Reasons…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,250],"tags":[],"class_list":["post-3113","post","type-post","status-publish","format-standard","hentry","category-posts","category-second-term-ss2-commerce"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/comments?post=3113"}],"version-history":[{"count":1,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3113\/revisions"}],"predecessor-version":[{"id":3114,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3113\/revisions\/3114"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=3113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=3113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=3113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}