Business Economics Aldus is concerned with economic issue and strategy. Issues and problems such as the following: an explanation of why firms emerge and exist: why they expand: horizontally, vertically and specially; the role of entrepreneurs and entrepreneurship; the significance of organizational structure; the relationship of firms with employees, the employees, the providers of capital, the customers, the government; the interactions between firms and the business environment.

            Business Economics is used in a variety of ways. Sometimes it is used as synonymously with industrial Economics, Industrial Organization-Managerial Economics- economics for business. Industrial economics is the most closely over-lapping of these terms whilst there may be more substantial differences with economics for business and managerial economics. One view of the distinctions between these would be that business economics is wider in its scope than industrial economics in that it would be concerned not only with “industry” but also businesses in the service sector and that it also takes seriously the insights of the “business strategy” literature.
Economics for business looks at the major principles of economics but focuses on applying these economic principles to the real would of business.
            Types Of Business Economics/Enterprises        
Business enterprises of the modern time differ in terms of capital requirement, nature and volume of operation. So also the capabilities of the various entrepreneurs using their initiatives and influence tend to influence or modify the business enterprises. The various forms of businesses can generally be classified into two major known which can easily be recognized by the type of ownership. The two forms of business enterprises are privately owned and publicly owned business enterprises.
            Privately owned and publicly owned business enterprises are considered mainly into two economic systems i.e. capitalist or free economy. Within these two categories of economic systems private individuals or bodies are allowed to own and control large business enterprises and also control the factors of production just like the government with the exception of certain areas. Our country Nigeria falls within this group of capitalist economy but due to the fact that we practice it in a very raw way, it is called mixed  economy hence the government usually monopolies some forms of business. The other type of economic system is the socialist form in which case the government owns and controls all forms of activities are centrally organized and planned. In summary, business enterprises are to two major forms.
(1)       THE SOLE PROPRIETORSHIP:-Majority of business enterprises in Nigeria are one man enterprises. As the name implies, sole proprietorship which means it is being organized, sponsored, financed and controlled by one man sole proprietorship requires only small capital to start operating.
Advantages of one man business enterprises include:-
·        Unnecessary bureaucracy or red-tapism is entirely not present or is reduced. Because of the independence the sole proprietor enjoys, he controls, manages his business and owns full responsibilities for his business.
·        Decision of a sole proprietor are very quick because he does not need to procrastinate or consult anybody or party before acting. Delay causes a lot of set backs in some businesses especially in joint business when action will not be taken by one man even if the other party is away to a distant place.
·        Profits of the one man’s business are controlled by just the owner of the business. He does not declare dividends to shareholders since he has no shareholders involved in the business.
·        Simplicity of one man business i.e. no legal conditions attached, the sole proprietor winds up whenever he wants. He adheres to the general laws and regulations as stipulated by the government.
·        Capital requirement. It unlike large scale businesses where large is needed to finance it unlike large to extensive borrowing, but that of one man business which is not entirely necessarily.
·        Privacy on business. A sole proprietor does not have to submit his balance sheet to registrars of companies yearly for inspection and as such he enjoys privacy and no one knows the profit he makes annually, unlike other large scale businesses.
However, a one man business enterprise is not devoid of disadvantages entirely. Some of these includes:-
        I.      Limited amount of capital makes it very difficult for a small scale business of a sole proprietor to expand. Banks and other financial institutions find it very difficult to lend one man business owners’ money because in most cases they don’t have collateral securities which are very vital to making loans available.
     II.      The management problems. At times, if the sole proprietor lacks managerial acumen, his business will collapse. Also, the business may grow rapidly that the owner may not effectively manage it and at this condition he will be forced to look for partners to team-up with and manage the business and failure to do this, the business will die-off.
   III.      Limited liability benefits are not enjoyed by a one man small scale business enterprise because he may spend all he has to settle debts if the business collapses.
  IV.      Untimely death of a sole proprietor of a business leads to the end or collapse of that business enterprise, unlike a jointly owned business where the business still goes on even after the death of a partner, there is always lack of continuity when the owner dies and this is another important disadvantage in one man business.
    V.      Risk bearing: when the business fails to realize profit the owner alone bears the risk. For instance, when the products of a one man business are being conveyed from an area of production to proprietor suffers the loss especially if the business is not covered by a comprehensive insurance policy.
  VI.      Radically decisions are usually taken by a one man business without which consideration and this may militate against the progress of the business. In a joint business, before a decision is taken it must be well considered (i.e. the pros and cons) and it takes fairly good deliberations because joint decision is better than a sole (single) decision. This goes by the saying that two good head are better than one good head.
Partnership is when two or more people assemble together to carry on a business with the aim of making profits. The partners in the business agree to share the assets and liabilities of the business jointly. By the name partnership it means that the business is owned jointly by partners, and the partners have equal rights and responsibilities. Any members of the partnership have right to making binding contract on behalf of their business.

Partnership Deed              
Partnership deed is nothing but the agreement that unites all the members of the partners, the agreement inter alia includes;
1.      Composition of membership and their various individual contributions    
2.      Title or name of business and location.
3.      Decision on a deceased member
4.      Incentive or remuneration of active members
5.      Modality of sharing profits
6.      Admission of new members (i.e. conditions0
7.      Dissolution or winding up of business
            Usually there are two types; ordinary partnership and limited partnership.
Ordinary Partnership: In this type of partnership, all members takes equal risk jointly, have equal right, equal privilege, enjoy equal powers and they possess unlimited liability. This means that, if say 2 or 5 persons enter into ordinary business partnership and there is a case of some debt to be settled form the assets of the business which the asset cannot settle, the personal assets of, the partnership will be sold by their creditors. And of course if any member has no assets to be sold, the other remaining 4 members should bear the full responsibility of the debt.
Limited Partnership:-  Limited partnership only differs from ordinary partnership in that not all members have unlimited liabilities in which case their liabilities are limited to the amount of capital each contributed. However, the law provides that at least one member must be an unlimited or ordinary or a general partner who should now bear the full risk of the business enterprise.
Kinds of Partners:- Usually partners consist of three types, Active, sleeping and general partners. Let us examine each of them.

1.                  A partnership has a greater prospect of raising capital and expanding its business than the sole proprietorship.
2.                  The partners have equal rights and therefore the actions of one partner are borne by all members and are jointly liable for all debts and risks rather than one man in the sole proprietorship.
3.                  A partnership lasts much longer than a sole proprietorship because unlike the sole proprietorship, the death of any member of the partnership does not make the partnership to collapse.
4.                  Management functions may be assigned to members according to their skills and their areas of  specializations.
5.                  There is flexibility which makes it easier to admit new members with good and new idea that will help the business to grow.
6.                  Profits in partnership are shared according to laid down rules i.e. personal efforts and capital contributions are the common criteria in sharing profits.
7.                  There is good division of labour in partnership
8.                  There is close cordial relationship between partners and customers.
9.                  Talents and creative are pulled together because in the management and decision making every member of the partnership brings out his own ideas and opinions which are well considered.
10.             Profits are not declared or published as such partnership enjoys degree of privacy.

Disadvantages: The disadvantages inherent in partnership are as follows:
1.                  The actions of one partner are borne by all members, which means that multiplicity of risks could be prevalent.
2.                  A partnership does not enjoy a quick decision taking may be difficult to get all partners to make decisions
3.                  Profits are shared by many people quite unlike the sole proprietorship where one man owns the total profits.
4.                  One major problem of a partnership as a business organization is assets can be sold by a creditor.
5.                  There is a serious danger when lazy and dishonest members are admitted.
6.                  The membership is not more than twenty as such this can limit more capital flow into the business.
7.                  The success and continues existence of the partnership is threatened because the business depends on upon the ability of partners to work harmoniously with each other, but the harmony is not guaranteed

A private company is a type of business organization with a range of membership from two to fifty and each member is liable to the tune of the nominal value of the shares he holds in the company. As a result of this, the private company is a limited liability company and this is the major advantage over partnership business enterprise.
Features Of Private Limited Liability Company     
1.                  The formation is quite easy, i.e. but needs just two or more people not exceeding fifty in number.
2.                  It enjoys limited liability rights and has a decisive advantages over partnership business organization
3.                  It is compulsory on a private company to submit audited accounts for the interest of the public
4.                  Shares of a private company are not transferable except with the general consent of other share holders
Advantage Of Private Limited Liability Company            
1.                  Since a private company is a limited liability company it enjoys the full rights of limited liability company (i.e. in case of debt settlement by the company, the private personal assets of members are not tampered with).
2.                  Private company can with full privileges afford a couple being or making up the board of director of the business.
3.                  Legal restrictions are limited because it does not require the company issuing company prospectus.
4.                  There is continuity of the company even with the death of a shareholder.
Disadvantages of Private Limited Liability Company            
1.      A private company cannot offer its shares for sale to the public by a rule and therefore cannot appeal to the public to increase its share capital.
Advantages Of Joint Stock Company
1.      In joint stock companies, huge amount of capital is raised as a result of a large number of shareholders and debenture holders shares, and debenture are advertised in joint stock companies and this attracts the public.
2.      Liabilities of shareholders are limited to the amount they invested in the company.
3.      Shares are sold to the public so as to acquire more capital unlike other business units like sole proprietorship, partnership and cooperative societies that do not sell shares.
4.      Joint stock company can easily borrow money from many sources because they posses a lot collateral securities.
5.      Continuity of business at the death of a shareholder, the business will continue to exist. 
1.                  Public companies have no much problem with capital because of her privilege, she can appeal to the public for funds and through this means, it raises large sums of money.
2.                  Credit facilities are easily available to public companies in addition to being in a position to raise funds from its numerous subscribers (shareholders) and it can easily attract loan from banks.
3.                  Expansion and economics of scale is easily observed in public companies. As a result of this, public companies always expand easily and they enjoy economics of scale.
4.                  Due to huge influence and capital funds that the public company possesses, they can easily employ the services of specialists in various fields and departments of the enterprise.
5.                  In public company, any person with small capital and people without any form of business experience can invest in public company.
1.                  The formation initially is difficult because it involves a lot of legal processes and costs.
2.                  The usual separation of ownership from management of the company may diminish sense of commitments and efficiency in the company.
3.                  There is much bureaucracy with the consequent loss of personal touch in the affairs of the public company.
4.                  As the ownership is district from the management, there may arise confect between management who will only be interested in their salaries and wages and the shareholders who are only interested in enormous profits, and or, increasing their dividends.

1.   Sole Proprietorship: Proprietorships source of existence are his personal income and borrowing. Bank loans are not always given to them.
2. Public limited Liability Company: there major source of existence is from the unlimited number of member and also, they can raise capital from the public through issues of shares 3.           Partnership: capital can be raised with the help of the unlimited partners (up to twenty persons) and the sleeping partner that invests only his capitals.
4.         Private Limited Liability Company: Capital be raised with the help of the members which has a minimum of two and maximum of fifty members.
5.         Joint stock company: capital can raised through initial savings, sales of shares, debentures, banks loans, ploughing back profits and credit purchase.     
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