{"id":3823,"date":"2023-10-05T19:35:53","date_gmt":"2023-10-05T19:35:53","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=3823"},"modified":"2023-10-05T19:37:12","modified_gmt":"2023-10-05T19:37:12","slug":"week-3-and-4-ss3-first-term-book-keeping-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-3-and-4-ss3-first-term-book-keeping-notes\/","title":{"rendered":"Week 3 and 4 – SS3 First Term Book Keeping Notes"},"content":{"rendered":"

\u00a0WEEK THREE AND FOUR (3 & 4)
\n<\/strong>A.\u00a0\u00a0\u00a0\u00a0THE SOLE TRADER
\n<\/strong>The sole trader or the sole proprietor is a person who owns and runs a business i.e by himself and for himself.<\/p>\n

\u00a0FEATURES OF THE SOLE TRADER
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Ownership: The business enterprise is owned by one person.
\n2.\u00a0\u00a0\u00a0\u00a0Objective: The main objective of the one man business is to make profit.
\n3.\u00a0\u00a0\u00a0\u00a0Source of capital: The capital required to set up and run the business is provided by the proprietor.
\n4.\u00a0\u00a0\u00a0\u00a0Liability: The sole proprietor has unlimited liability.
\n5.\u00a0\u00a0\u00a0\u00a0Legal entity: It is not a legal entity as the owner is not separated from the business.
\n6.\u00a0\u00a0\u00a0\u00a0Management: The business is controlled and managed by the sole proprietor himself.
\n7\u00a0\u00a0\u00a0\u00a0Life span: The span depends on the owner. The enterprise can fold up any time.<\/p>\n

\u00a0ADVANTAGES OF SOLE PROPRIETORSHIP
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0It involves small capital.
\n2.\u00a0\u00a0\u00a0\u00a0It is easy to establish.
\n3.\u00a0\u00a0\u00a0\u00a0Taking of quick decision.
\n4.\u00a0\u00a0\u00a0\u00a0It is easy to manage.
\n5.\u00a0\u00a0\u00a0\u00a0It requires small operation.
\n6.\u00a0\u00a0\u00a0\u00a0All profits belong to the owner.
\n7.\u00a0\u00a0\u00a0\u00a0It can thrive in all business environment.
\n8.\u00a0\u00a0\u00a0\u00a0There is privacy conducting business affairs.
\n9.\u00a0\u00a0\u00a0\u00a0There is a close relationship between owner and employee.
\n10.\u00a0\u00a0\u00a0\u00a0There is a close relationship between owner and customers.<\/p>\n

\u00a0DISADVANTAGES OF SOLE PROPRIETORSHIP
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Problem of continuity.
\n2.\u00a0\u00a0\u00a0\u00a0Inadequate capital.
\n3.\u00a0\u00a0\u00a0\u00a0He bears all risks alone.
\n4.\u00a0\u00a0\u00a0\u00a0It has unlimited liability.
\n5.\u00a0\u00a0\u00a0\u00a0It is not a separate legal entity.
\n6.\u00a0\u00a0\u00a0\u00a0He leads specialization.
\n7.\u00a0\u00a0\u00a0\u00a0There is limitation in expansion.<\/p>\n

\u00a0
\n\u00a0B.\u00a0\u00a0\u00a0\u00a0THE PARTNERSHIP<\/strong>
\n\t\tA Partnership is an association of two to twenty persons (or two to ten in the case of banking business), coming together for the purpose of business with a view to making profits.<\/p>\n

\u00a0FEATURES OF A PARTNERSHIP
\n<\/strong>(i)\u00a0\u00a0\u00a0\u00a0A partnership contract between the partner is the basis of the business.
\n(ii)\u00a0\u00a0\u00a0\u00a0Objective: The main objective of the partnership is to make profit.
\n(iii)\u00a0\u00a0\u00a0\u00a0Source of Capital: The capital required to set-up the business is provided by the partners based on legal agreement.
\n(iv)\u00a0\u00a0\u00a0\u00a0Liability: The partners have unlimited liability.
\n(v)\u00a0\u00a0\u00a0\u00a0Life span: The life span of the partnership depends on the agreement signed by the partners involved.
\n(vi)\u00a0\u00a0\u00a0\u00a0Legal entity: It is not a legal entity as the partners are not separated from the business.
\n(vii)\u00a0\u00a0\u00a0\u00a0Management: The business is controlled and managed by the partners.<\/p>\n

\u00a0ADVANTAGES OF THE PARTNERSHIP
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0More capital as a result of pooling of resources.
\n2.\u00a0\u00a0\u00a0\u00a0Possibility of expansion resulting from increased resources.
\n3.\u00a0\u00a0\u00a0\u00a0Division of labour\/specialization among partners with sense of commitment.
\n4.\u00a0\u00a0\u00a0\u00a0Better credit-standing as creditors tend to be more confident in partnership than individuals.
\n5.\u00a0\u00a0\u00a0\u00a0Initiative and contribution of new ideas as each partner gives in his best.
\n6.\u00a0\u00a0\u00a0\u00a0Shared strain.
\n7.\u00a0\u00a0\u00a0\u00a0Shared losses.
\n8.\u00a0\u00a0\u00a0\u00a0Ensured continued success of the business.
\n9.\u00a0\u00a0\u00a0\u00a0Privacy as regards partners’ accounts.<\/p>\n

\u00a0DISADVANTAGES OF THE PARTNERSHIP
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Unlimited liability.
\n2.\u00a0\u00a0\u00a0\u00a0Difficulty of dissolution or withdrawal of funds invested in the partnership.
\n3.\u00a0\u00a0\u00a0\u00a0Disagreement among partners as to who is the boss and on issues concerning the interpretation of partnership deed.
\n4.\u00a0\u00a0\u00a0\u00a0Death, resignation, retirement or bankruptcy of a partner leads to dissolution of the partnership.
\n5.\u00a0\u00a0\u00a0\u00a0Difficulty of admitting new partners.
\n6.\u00a0\u00a0\u00a0\u00a0Difficulty of management as a result of shared control based on collective judgments.
\n7.\u00a0\u00a0\u00a0\u00a0Limit to size of the business as it is a partnership.<\/p>\n

\u00a0C.\u00a0\u00a0\u00a0\u00a0LIMITED LIABILITY COMPANY
\n<\/strong>\u00a0\u00a0\u00a0\u00a0<\/strong>A Limited liability company is an association of individuals who contribute money or money’s worth to a common stock and employs it in some trade or business and share the profit or loss arising there from.<\/p>\n

\u00a0TYPES OF COMPANIES
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0The private Company and
\n2.\u00a0\u00a0\u00a0\u00a0The Public Company.<\/p>\n

\u00a01.\u00a0\u00a0\u00a0\u00a0The Private Company can be formed by not less than two but the maximum must not exceed fifty, excluding past and present employees of the company.
\nA shareholder in a private company is not permitted to transfer his shares without the consent of the company.
\nThe company cannot invite the general public to subscribe for shares.
\n2.\u00a0\u00a0\u00a0\u00a0The Public Company can be formed by at least seven shareholders. There is no maximum limit to the number of shareholders. To successfully achieve incorporation, the promoters must apply to the corporate affair commission Abuja and lodge the required documents with the registrar of companies.<\/p>\n

\u00a0ADVANTAGES OF PRIVATE LIMITED LIABILITY COMPANY
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Large capital.
\n2.\u00a0\u00a0\u00a0\u00a0It has legal entity.
\n3.\u00a0\u00a0\u00a0\u00a0Shareholders have limited liability.
\n4.\u00a0\u00a0\u00a0\u00a0Continuity of existence.
\n5.\u00a0\u00a0\u00a0\u00a0Efficient Management
\n6.\u00a0\u00a0\u00a0\u00a0Large profits.
\n7.\u00a0\u00a0\u00a0\u00a0Possibility of expansion.<\/p>\n

\u00a0DISADVANTAGES OF PRIVATE LIMITED LIABILITY COMPANY
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Limited Capital.
\n2.\u00a0\u00a0\u00a0\u00a0Shares are not sold to public.
\n3.\u00a0\u00a0\u00a0\u00a0Shares not easily transferable.
\n4.\u00a0\u00a0\u00a0\u00a0Lack of privacy.
\n5.\u00a0\u00a0\u00a0\u00a0Payment of corporate tax.
\n6.\u00a0\u00a0\u00a0\u00a0Lack of personal contact.
\n7.\u00a0\u00a0\u00a0\u00a0Delay in decision.<\/p>\n

\u00a0
\n\u00a0ADVANTAGES OF PUBLIC LIMITED LIABILITY<\/strong>
\n\t\t1.\u00a0\u00a0\u00a0\u00a0Legal entity.
\n2.\u00a0\u00a0\u00a0\u00a0Perpetual existence.
\n3.\u00a0\u00a0\u00a0\u00a0Limited Liability.
\n4.\u00a0\u00a0\u00a0\u00a0Large capital.
\n5.\u00a0\u00a0\u00a0\u00a0 Transferability of shares.
\n6.\u00a0\u00a0\u00a0\u00a0Loan facilities.
\n7.\u00a0\u00a0\u00a0\u00a0Economies of large scale production.
\n8.\u00a0\u00a0\u00a0\u00a0Democracy in management.
\n9.\u00a0\u00a0\u00a0\u00a0Owners are separated from management.
\n10.\u00a0\u00a0\u00a0\u00a0Employees can become co-owners.<\/p>\n

\u00a0DISADVANTAGES OF PUBLIC LIMITED LIABILITY
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Lack of privacy.
\n2.\u00a0\u00a0\u00a0\u00a0Conflict of interest.
\n3.\u00a0\u00a0\u00a0\u00a0Slow decision making.
\n4.\u00a0\u00a0\u00a0\u00a0Separation of owners from control.
\n5.\u00a0\u00a0\u00a0\u00a0Hard to establish.
\n6.\u00a0\u00a0\u00a0\u00a0Payment of large corporate tax.
\n7.\u00a0\u00a0\u00a0\u00a0Lack of flexibility.
\n8.\u00a0\u00a0\u00a0\u00a0Decrease in personal interest.
\n9.\u00a0\u00a0\u00a0\u00a0Large capital requirement.<\/p>\n

\u00a0ASSIGNMENT
\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0What is statutory corporation?
\n2.\u00a0\u00a0\u00a0\u00a0State five (5) features of statutory corporation.
\n3.\u00a0\u00a0\u00a0\u00a0State five each of: (i) Advantages of statutory corporation.
\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (ii) Disadvantages of statutory.
\n4.\u00a0\u00a0\u00a0\u00a0Define cooperative societies.
\n5.\u00a0\u00a0\u00a0\u00a0State four (4) types of cooperative societies you know.
\n6.\u00a0\u00a0\u00a0\u00a0State five (5) each of: (i) Advantages of cooperative societies.
\n (ii) Disadvantages of cooperative societies
\n7.\u00a0\u00a0\u00a0\u00a0Briefly describe the following
\n\u00a0\u00a0\u00a0\u00a0(i)\u00a0\u00a0\u00a0\u00a0Trade Unions
\n\u00a0\u00a0\u00a0\u00a0(ii)\u00a0\u00a0\u00a0\u00a0Chambers of commerce
\n(iii)\u00a0\u00a0\u00a0\u00a0The civil service
\n(iv)\u00a0\u00a0\u00a0\u00a0Cartel
\n(v)\u00a0\u00a0\u00a0\u00a0Consortium
\n(vi)\u00a0\u00a0\u00a0\u00a0Syndicate
\n(vii)\u00a0\u00a0\u00a0\u00a0 Price rings.<\/p>\n

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

\u00a0WEEK THREE AND FOUR (3 & 4) A.\u00a0\u00a0\u00a0\u00a0THE SOLE TRADER The sole trader or the…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,296],"tags":[],"class_list":["post-3823","post","type-post","status-publish","format-standard","hentry","category-posts","category-first-term-ss3-book-keeping"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3823","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=3823"}],"version-history":[{"count":1,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3823\/revisions"}],"predecessor-version":[{"id":3824,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3823\/revisions\/3824"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=3823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=3823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=3823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}