Question 1. Defination of Business, people from the core of business.

Answer: Business- The exchange of goods, services, or money for mutual benefit or profit.
People from the core of business
The human element is the core of business. Business needs people as owners, managers,
employees, and consumers. People need business for the production of goods and services and the
creation of jobs. Whether business is transacted in Mexico, Canada, or Nigeria does not matter.
a. Owners
People who own a business, as well as those who invest money in one and have right on the
business property, do so because they expect to earn profit. e.g. GM 1.2 million shareholders
(owners) and huge number of students.
b. Managers
The person responsible for operating the business may be the owner (an owner-manager
also called an entrepreneur) or a professional manager employed by the owner. Both types of
managers seek to achieve profit, growth, survival, and social responsibility.
*The owner-manager sets his or her own objectives
*A professional manager attempts to achieve objectives set by others. They are accountable to the
owners of the business who judge the managers performance by how well their objectives have
been accomplished over a period of time.
c. Employees
Employees supply the skills and abilities needed to provide a product or service and to
earn a profit - expect equitable wage and favorable working condition.
d. Consumers
A person or business who purchases a good or service for personal or organizational use.
– Expect quality, fair price, and reliability.
Question:2 Defination of partnership, describe characteristics or features of partnership.
Partnership
A business owned by two or more people, who agree to share in its profits, is considered a
partnership. Like sole proprietorships, the laws do not distinguish between the business and its
owners. The Partners should have a legal agreement that sets forth how decisions will be made,
profits will be shared, disputes will be resolved, how future partners will be admitted to the
partnership, how partners can be bought out, or what steps will be taken to dissolve the partnership
when needed.
Main characteristics or features of partnership:
1. Agreement: Without agreement partnership cannot be formed. The agreement may be
 written or oral. But it must be written on settle the disputes.
2. Registration: It is not necessary that a partnership may be registered. But in case of
registered firm many problems can be created.
3. Number of Partners: In a partnership there should be at least two partners. In ordinary
business the partners must not exceed the twenty. In case of banking not more ten.
4. Profit and Loss Distribution: The basic aim of partnership is to earn profit. This profit is
distributed among the partners according their agreement. In case of loss also all the
partners share in it.
5. Business: The object of the partnership it to carry on the business. It may be
production or trading. It should be according the laws of the state.
6. Unlimited Liability: The liability of the partner is not limited to his invested amount. In
case of loss the private property of the partner also used to pay the business obligations.
7. Entity: Law has not granted it any legal entity; it is not independent from the partners. It has
not separate entity from its members.
8. Share in Capital: According to the agreement every partner contributes his share. It is not
necessary all the partners should contribute equally. Some people provide only skill and ability to
become a partner.
9. Management: All the partners can participate actively in the business management.
Sometimes only few persons are allowed to handle the business affairs.
10. Payment of Tax: Every partner pays the tax on his share of profit individually.
11. Co-Operation: For the successful partnership mutual co-operation and mutual confidence is
an important factor.
12. No Audit: In the partnership there is no restriction for the audit of accounts. So this type of
organization may operate freely.
13. Partners are Agent: Every partner stand as an agent and principal to one another. In the
position of an agent one can do contract with other parties on behalf of the firm.
14. Transferability of Shares: No one partner can transfer his share to any other person without
the consent of the existing partners.
15. Dissolution: It is a temporary form of business. It operates at the pleasure of the partners. It is
dissolved if a partner leaves, dies or declared bankrupt or insane. Partners can also dissolve it by
obtaining the degree from the court.

Question:3 i) Joint venture ii) Franchising iii) Merger iv)Entrepreneur v) Business plan
Answer: Joint Venture
In a joint venture, two or more companies form an alliance to pursue a specific project, usually for
a specified time period. There are many reasons for joint ventures. The project may be too large
for one company to handle on its own, and joint ventures also afford companies access to new
markets, products, or technology. Both large and small companies can benefit from joint ventures.
Franchising
Franchising is a form of business organization that involves a franchisor, the company supplying
the product or service concept, and the franchisee, the individual or company selling the goods or
services in a certain geographic area. The franchisee buys a package that includes a proven
product or service, proven operating methods, and training in managing the business. Offering a
way to own a business without starting it from scratch and to expand operations quickly into new
geographic areas with limited capital investment, franchising is one of the fastest growing
segments of the economy. If you are interested in franchising, food companies represent the largest
number of franchises.
Merger
A merger occurs when two or more firms combine to form one new company. In an acquisition, a
corporation or investor group finds a target company and negotiates with its board of directors to
purchase it.
Entrepreneur
The entrepreneur is defined as someone who has the ability and desire to establish, administer and
succeed in a startup venture along with risk entitled to it, to make profits. The best example of
entrepreneurship is the starting of a new business venture. The entrepreneurs are often known as
a source of new ideas or innovators, and bring new ideas in the market by replacing old with a
new invention.
Business Plan
A business plan is a strategic document that outlines a company's goals, strategies for achieving
them, and the time frame for their achievement. It covers aspects like market analysis, financial
projections, and organizational structure, serving as a roadmap for business growth and a tool to
secure funding.