HomeJSS 1Business Studies JSS 1Business Ownership Types Business Studies JSS 1 Second Term Lesson Notes Week 7

Business Ownership Types Business Studies JSS 1 Second Term Lesson Notes Week 7

Subject: Business Studies

Class: JSS 1

Term: Second Term

Week: 7

Topic: Introduction to Business Ownership

Sub-topic: Types of Business Ownership

Duration: 45 minutes

Entry Behaviour: Students are expected to have a basic understanding of businesses and their functions.

Key Words: Business Ownership, Sole Proprietorship, Partnership, Corporation, Limited Liability, Unlimited Liability.

Behavioural Objectives:

  • By the end of the lesson, students should be able to define business ownership.
  • Students should identify and explain the characteristics of sole proprietorship, partnership, and corporation.
  • Students should understand the concept of limited liability.

Embedded Core Skills: Critical thinking, Communication, Decision-making.

Learning Materials:

  • Business Studies Textbook Book 1 by Bolujo et al.
  • Whiteboard and markers.
  • Visual aids (charts, diagrams).
  • Examples of businesses of each type.

Reference Books: Lagos State Scheme of Work, Business Studies Textbook Book 1 by Bolujo et al.

Content:

  • Definition of business ownership.
  • Characteristics of sole proprietorship, partnership, and corporation.
  • Explanation of limited and unlimited liability.
  1. (i) PHCN – Power Holding Company of Nigeria
  2. (ii) LTD – Limited
  3. (iii) NPA – Nigerian Ports Authority
  4. (iv) PLC – Public Limited Company

 

Rewards for Factors of Production JSS 1 Business Studies

a. Sole Proprietorship: Sole proprietorship refers to a business structure owned and operated by a single individual. In this type of business, the owner is solely responsible for all aspects of the business, including its operations, finances, and decision-making.

b. Advantages of Sole Proprietorship:

  1. Ease of Formation: Setting up a sole proprietorship is simple and involves minimal legal formalities.
  2. Direct Control: The owner has complete control over the business operations and decision-making processes.
  3. Flexibility: Sole proprietors have the flexibility to make quick decisions and adapt to changing market conditions without the need for approval from others.
  4. Retention of Profits: All profits generated by the business belong to the owner, providing full control over income distribution and reinvestment.

 

Class Activity Discussion :

  1. What is PHCN and what does it do?
    • Answer: PHCN stands for Power Holding Company of Nigeria. It is responsible for the generation, transmission, and distribution of electricity in Nigeria.
  2. What does LTD mean in a company’s name?
    • Answer: LTD stands for Limited. It indicates that the company is a private limited liability company, where the liability of its members is limited to their shares in the company.
  3. What is the role of NPA in Nigeria?
    • Answer: NPA refers to the Nigerian Ports Authority, which oversees the management and operation of ports in Nigeria, facilitating maritime trade and transportation.
  4. What distinguishes a PLC from other types of companies?
    • Answer: PLC stands for Public Limited Company. It is a type of company where shares are traded publicly on the stock exchange, allowing for more extensive ownership and investment opportunities.
  5. Who owns a sole proprietorship?
    • Answer: A sole proprietorship is owned and operated by a single individual, known as the proprietor.
  6. What are the legal requirements for starting a sole proprietorship?
    • Answer: There are minimal legal formalities required to start a sole proprietorship, such as obtaining necessary licenses and permits depending on the nature of the business.
  7. Can a sole proprietor hire employees?
    • Answer: Yes, a sole proprietorship can hire employees to assist with business operations.
  8. Is a sole proprietor personally liable for business debts?
    • Answer: Yes, in a sole proprietorship, the owner is personally liable for all business debts and obligations.
  9. What happens to a sole proprietorship if the owner passes away?
    • Answer: In the event of the owner’s death, the sole proprietorship may be dissolved, unless arrangements have been made for its continuation, such as passing it on to a designated successor.
  10. Can a sole proprietorship be converted into another type of business structure?
    • Answer: Yes, a sole proprietorship can be converted into a partnership, corporation, or other business entity if desired, depending on the owner’s goals and circumstances.

Evaluation :

  1. PHCN stands for ____.
    • a) Power Holding Company of Nigeria
    • b) Public Housing Corporation of Nigeria
    • c) Petroleum Holding Company of Nigeria
    • d) Public Health Care Network of Nigeria
    • Answer: a) Power Holding Company of Nigeria
  2. LTD in a company’s name stands for ____.
    • a) Limited
    • b) Legal
    • c) Logistics
    • d) Loyalty
    • Answer: a) Limited
  3. NPA is responsible for the management of ____.
    • a) Ports
    • b) Roads
    • c) Airports
    • d) Railways
    • Answer: a) Ports
  4. PLC allows shares to be traded ____.
    • a) Publicly
    • b) Privately
    • c) Regionally
    • d) Internationally
    • Answer: a) Publicly
  5. Sole proprietorship is owned and operated by ____.
    • a) Single individual
    • b) Group of individuals
    • c) Government
    • d) Foreign investors
    • Answer: a) Single individual
  6. Legal requirements for starting a sole proprietorship include obtaining necessary ____.
    • a) Licenses and permits
    • b) Land and buildings
    • c) Vehicles and equipment
    • d) Employees
    • Answer: a) Licenses and permits
  7. In a sole proprietorship, the owner is personally liable for all ____.
    • a) Business debts
    • b) Business profits
    • c) Business assets
    • d) Business expenses
    • Answer: a) Business debts
  8. Can a sole proprietorship hire ____.
    • a) Employees
    • b) Customers
    • c) Suppliers
    • d) Competitors
    • Answer: a) Employees
  9. What happens to a sole proprietorship if the owner passes away?
    • a) It may be dissolved
    • b) It continues as before
    • c) It merges with another company
    • d) It becomes a partnership
    • Answer: a) It may be dissolved
  10. PLC stands for ____.
    • a) Public Limited Company
    • b) Private Limited Company
    • c) Personal Limited Company
    • d) Professional Limited Company
    • Answer: a) Public Limited Company
  11. PHCN is responsible for the generation, transmission, and ____.
    • a) Distribution of electricity
    • b) Distribution of water
    • c) Distribution of gas
    • d) Distribution of oil
    • Answer: a) Distribution of electricity
  12. NPA oversees the management and operation of ____.
    • a) Ports
    • b) Airports
    • c) Railways
    • d) Highways
    • Answer: a) Ports
  13. In a PLC, shares are traded ____.
    • a) Publicly
    • b) Privately
    • c) Locally
    • d) Globally
    • Answer: a) Publicly
  14. LTD indicates that the liability of its members is limited to their ____.
    • a) Shares in the company
    • b) Debts in the company
    • c) Assets in the company
    • d) Profits in the company
    • Answer: a) Shares in the company
  15. Sole proprietorship is known for its ____.
    • a) Direct control
    • b) Indirect control
    • c) Shared control
    • d) No control
    • Answer: a) Direct control

Presentation:

  • Step 1: Revision: The teacher revises the previous topic on the functions of a business, emphasizing the importance of understanding different types of businesses.
  • Step 2: Introduction to the New Topic:
    • The teacher introduces the topic of business ownership, explaining its significance in the business world.
  • Step 3: Teacher’s Activities:
    • Defines business ownership and its types: sole proprietorship, partnership, and corporation.
    • Discusses the characteristics of each type of business ownership, such as ownership structure, liability, and decision-making.
    • Explains the concept of limited liability and provides examples to illustrate its importance.
  • Learners’ Activities:
    • Students listen attentively and take notes.
    • Participate in discussions to share their understanding of different types of businesses.
    • Engage in group activities to identify examples of businesses for each type of ownership.

Assessment:

  • The teacher assesses students’ understanding through:
    • Oral questions during the lesson.
    • Group discussions and presentations.
    • Reviewing students’ notes and responses to questions.

Evaluation Questions:

  1. Define business ownership.
  2. What are the three main types of business ownership?
  3. Describe the characteristics of sole proprietorship.
  4. Explain the concept of unlimited liability.
  5. Give an example of a partnership.
  6. What is the primary advantage of a corporation?
  7. What does limited liability mean for shareholders?
  8. How does a sole proprietor differ from a partnership?
  9. Name one characteristic of a corporation.
  10. Why is understanding business ownership important for entrepreneurs?

Conclusion:

  • The teacher goes around to mark students’ work and provide feedback.
  • Students are encouraged to continue exploring the topic of business ownership and its implications in real-world scenarios.

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