WEEK 6

PRIVATE LIMITED LIABILITY COMPANY

A private limited liability company is defined as one which by its activities
restricts the rights to transfer its shares, limits the number of its
shareholders from two to fifty, and prohibits any invitation to the public
to subscribe for its shares and the name of the private liability company
must end with the abbreviation of limited. e g. Bluebird Nigeria limited,
Ausmer Nigeria limited etc.
FEATURES OR CHARACTERTERTICS OF PRIVATE LIMITED LIABILITY
COMPANY
1. It is owned by two to fifty: the number of people that can form a private company
should be between two and fifty.
2. Restriction of shares: there is restriction on the transfer of its shares. The shares of a
private company are not easily transferable.
3. Limited liability: In the event of liquidation the shareholders lose only the total money
invested in the business. The liability does not extend to their private property.
4. Perpetual existence: The withdrawal or death of a shareholder may not affect the
existence of the companies.
5. Legal entity: it is recognized as a legal personality in law. It is quite district from the
owners in the eyes of the law. The business can sue or be sued in its own name, without
involving the owner.
6. Shares are not quoted on the stock market: its shares are not quoted on the market.
Therefore they cannot be bought or sold on the stock market.
7. Objective: the major aim of private limited company is to make profit.
ADVANTAGES OF PRIVATE LIMITED LIABILITY COMPANY
1. LARGE CAPITAL: Private Limited Liability Company can easily raise capital as a
result of many shareholders that form the business.
2. Shareholder have limited liability
3. It has legal entity
4. Continuity of existence
5. Possibility of expression
6. Large profit
DISADVANTAGES OF PRIVATE LIMITED LIABILITY COMPANY
1. LIMITED CAPITAL: The capital available in a private company is not as large as that of
a public company because they cannot appeal to the public for extra capital through the issuing
of shares.
2. Shares are not easily transferred.
3. Delay in decision making.
4. Lack of privacy: Financial statements are usually submitted to the registrar of companies
annually.
5. It prohibits invitation to shares: it does not allow the public to subscribe to its shares.
PUBLIC LIMITED LIABILITY COMPANY
Public limited liability companies are owned by private individuals and organizations. In this
types of company, the minimum number of person that can form it is seven, while it has no
maximum number. Public is used here in the sense that any member of the public is free to
purchase shares in the business when shares are advertised for sale and the name of the public
limited company must end with the abbreviation ‘Plc’.
FEATURES OR CHARACTERTERISTICS OF PUBLIC LIMITED LIABILITY
COMPANY
1. The number of shareholder range from seven to infinity.
2. The business is a separate legal entity.
3. The shareholders enjoy limited liability
4. The business has a perpetual existence.
5. Capital is raise through the issuing of shares i.e. shares are advertised for sale to the
general public. Capital can also be raised by issuing debentures and by borrowing from banks.
6. Shares are easily transferable: Any shareholder is free to sell his shares in the business
any time he likes. Since the shares are quoted on the stock

ADVANTAGES OF PUBLIC LIMITED LIABILITY COMPANIES (PLC)

1. The business has large resources of capital because of the large number of shareholders in
the company.
2. Shareholders enjoy limited liability.
3. The business risks are shared among a large number of persons
4. The business has perpetual existence.
5. The shares of the company are easily transferable for cash
6. The company has the ability to secure efficient managers and other skilled personnel
7. The business is a separate legal entity.
DISADVANTAGES OF PUBLIC LIMITED LIABILITY COMPANY
1. Lack of privacy in financial reporting.
2. There is delay in taking decisions
3. It is also difficult to set up a joint-stock company
4. Large capital requirement
5. The shareholders cannot control the business
6. There is lack of personal contract between the management and employees and between
the company and its customers.
SHARES, BOUNDS AND DEBENTURES
SHARES: A share can be defined as a unit of capital of a company allocated to an individual.
DEBENTURE: This is a document given under a seal by a company in acknowledgement of a
debt undertaking to repay the stated sum on or certain date and to pay a fixed rate of interest.

WEEK 7: CO-OPERATIVE SOCIETIES

A co-operative society is defined as a voluntary business organization in which a group of
individuals with common interest pool their resources together to promote the economic welfare
of their members in production, distribution and consumption of goods and services.
TYPES OF CO-OPERATIVE SOCIETIES
1. CONSUMERS CO-OPERATIVE SOCIETY: A consumers’ co-operative society is an
association of consumers. They buy goods in bulk at wholesale prices from manufactures and
sell them at retail prices to both members and non-members of the co-operative. The by-pass the
middlemen in order to get these goods at cheaper rates and then distributes them to their
members.
2. PRODUCERS CO-OPERATIVE SOCIETY: This is the association of producers of
similar products who have come together in order to promote the production and sale of their
products. Members of this society like farmers and other producers contribute money in order to
buy or hire equipment, machinery and raw material at reduced rates meant for the promotion of
their productive activities e.g. agricultural cooperatives society.
3. CREDIT AND THRIFT CO-OPERATIVE SOCIETY: This is one of the
commonest co-operative societies found in our present day society. In
 this society, members are encouraged to save their money together, of
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FEATURES OF CO-OPERATIVE SOCIETY

1. There is usually no limit to the size of its membership.
2. It is usually open to persons with identical interests who wish to join.
3. Profit or dividends are shared according to the purchase from or sales to the society
within a given trading year.
4. All the members bear the risks of the business jointly.
5. The aim of setting up a co-operative society is to maximize the welfare of the members
who have pooled their resources.
6. Management and control is democratic.
7. Co-operative societies are owned by two persons to any number.
8. Co-operative societies are owned by people with common interest.
9. They are not necessarily formed to make profit but to promote the economic activities
and welfare of their members.
10. Capital is raised through voluntary contributions from the members.
11. The liability of members is limited to the amount contributed to the society.
12. A co-operative society is similar to a limited liability company, as it can exist in
perpetuity.
ADVANTAGES OF CO-OPERATIVE SOCIETY
1. ENCOURAGEMENT OF SOCIETY: Co-operative societies encourage saving habits
among their members.
2. Provision of loan facilities to members: Members find it very easy to obtain loans from
the society, which would have been difficult to get from financial institutions.
3. Improve members’ standard of living: They improve the standard of living of their
members by providing goods when they cannot buy on their own. e g. land, electronic, etc.
4. Encourage Joint Marketing of Products: They organize joint marketing,
5. Pooling of resources for investments: They pool resources together to t visits.
6. Perpetual existence: Co-operative society can exist for a long period of time

DISADVANTAGES OF CO-OPERATIVE SOCIETY

1. Insufficient capital: The capital available for investment is very low. Most of the
members are low income earners.
2. High rate of embezzlement: Most of the leaders in co-operative society are highly
corrupt, some often embark on embezzlement and misuse of funds belonging to the societies.
3. Problem of loan recovery: The society may not be able to recover loans given to
members. This may destabilize the society.
4. High level of illiteracy: There is wide spread illiteracy among members which makes
their education and training very difficult
5. A major problem for co-operative society is the difficulty of finding experienced person
to manage the business.
PUBLIC ENTERPRISES
Public Enterprises, also known as public corporations are government or state owned business
organizations which are usually set up by Act of legislation with the main aim of maximizing
public welfare. Examples in Nigeria include the Federal Radio Corporation of Nigeria (F.R.C.N),
The Nigeria Ports Authority
(N.P.A), The Nigeria Railway Corporation (N.R.C), etc
FEATURES OF PUBLIC ENTERPRISES
1. They are owned by the government usually set up byAct of Legislation or Act of
parliament
2. The government provides the capital for setting up the business.
3. They are established purposely to provide essential services for the generality of the
people.
4. The business is controlled by a board of directors appointed by the
government.
5. The management of the business is accountable to the government that
.
6. Public enterprise is a legal entity or a corporate body.
 ADVANTAGES OF PUBLIC ENTERPRISES
1. Provision of infrastructural facilities
2. Availability of large capital
3. There is continuity
4. Development of capital project
5. Avoidance of exploitation of consumers
6. Creation of higher standards of living
7. Accountability to the public
8. Provision of employment opportunities
DISADVANTAGES OF PUBLIC ENTERPRISES
1. Lack of privacy
2. Delay in decision- making process
3. Corruption and embezzlement
4. Danger of government interference
5. Inadequacy of funds
6. Not profit oriented
7. Danger of monopoly
REASONS FOR PUBLIC ENTERPRISES
1. Provision of essential and infrastructural facilities
2. For security and strategic reasons
3. Limitation of foreign controls of the economy
4. Safeguard economic and political interest
5. Large capital requirement
6. Control of monopoly
7. Employment opportunities.
WEEK 8: POPULATION
Population refers to the total number of people living within a geographical area or country at a
particular time.
FACTORS AFFECTING POPULATION GROWTH
There are three major factors which determine the size and rate of growth of a country’s
population. These can be summarized in the following formula;
r = Birth Rate – Death Rate + Net Migration
r = is the rate of growth of population.
Net Migration – is the different between the number of immigrants and emigrants. The major
factors affecting population size and growth are therefore birth rate, death rate and migration
BIRTH RATE
This is referred to as the total number of birth per thousands of people in a particular year.
It is determined by the following factors:

1. EARLY MARRIAGE: The birth rate will be higher if people marry at earlier ages.
2. HEALTH OF THE PEOPLE: As a result of improved medical services, death rate has
reduced while birth rate has been boosted.
3. RATIO OF WOMEN OF CHILDBEARING AGE: The greater the numbers of women
who are of childbearing age the higher the birth rate.
4. RELIGIOUS BELIEF: The religious belief of the people may also play a role. For
example, Islam allows polygamy and that can leads to a high birth rate.
5. Desire for large families
6. Improved standard of living.
DEATH RATE
This refers to the number of deaths per thousands of the population in a year.
FACTORS AFFECTING DEATH RATE
1. Availability of health and medical facilities
2. Standard of personal hygiene and environmental sanitation
3. Standard of living
4. Incidence of epidemics, wars, famine, and people, natural disasters such as floods and
earthquakes
5. Age distribution of the population: if there are many elderly people, there may be
tendency for death rate to be high.
MIGRATION
Migration is defined as the movement of people from one place to another, involving permanent
or temporary residence or settlement.
TYPES OF MIGRATION
.1. EMIGRATION: This is the movement of people from their country to
2. IMMIGRATION: This is the movement of people into a country.
The difference between the number of immigrants and emigrants is called NET MIGRATION.
Immigration increases the population while emigration decreases.
FACTORS RESPONSIBLE FOR INCREASE IN POPULATION
1. Increase in birth rate
2. Decrease in death rate
3. Medical improvement
4. Early marriage
5. The population of women
6. Illiteracy
7. Immigration
8. Absence of family planning.
CONSEQUENCES OR IMPLICATIONS OF RAPIDLY GROWING POPULATION
1. There will be an enlarged market: The total demand for goods and services will be
higher.
2. The Dependency ratio will increase: Workers will have more dependents (especially
children) to cater for.
3. Heavy pressure on infrastructural facilities.
4. May lead to unemployment
5. Urban congestion
6. The cost of living will be high
7. Low standard of living and fall in per capita income.
8. Increase in government expenditure
9. Problems of overpopulation.

AGEING OR DECLINING POPULATION

 An ageing population is also referred to as a decreasing population or stationary
population or static population.
FACTORS RESPONSIBLE FOR AGEING POPULATION
1. Decrease in birth rate
2. Increase in death rate
3. Emigration
4. War
5. Diseases
6. Natural disasters
ADVANTAGES OF DECLING OR DECREASING POPULATION
1. Reduction in government expenditure
2. Increase in government savings
3. Increase or high standard of living
4. It may lead to under-population
5. Creation of job
DISADVANTAGES OF DECLING OR DECREASING POPULATION
1. Reduction in labour force
2. It discourage investment
3. Rise in prices of goods and services
4. It may lead to under-population
5. High dependency ratio
6. It discourages foreign aid
QUESTIONS
2. Use the information in the table and answer the following questions.

Pollution statistics of a country in 1980 and 1996 preferences ou may

 Year 1980
1996
No of Birth in Million —— 48
No of death in Million ——- 12
No of Immigration in Million ——- 10
No of Emigration in Million ——– 4
Total population in Million 56 98 Calculate;
1. The natural increase of the population in 1996
2. Determine the Net migration within the period
3. The rate of growth of the population in 1996
4. Calculate the population of the country in 1996
5. What is the percentage increase in the population of the country from 1980 to 1996?
WEEK 9: POPULATION CENSUS
A population census refers to the head – count of the people.
It is the process by which the number of people living in a country or a given geographical area
is counted.
It developed countries it is carried out by the government at regular intervals, usually every ten
years.

TYPES OF POPULATION CENSUS

1. DE-FACTO POPULATION CENSUS: This is a system of counting only those who are
physically present during census.
2. DE-JURE POPULATION CENSUS: In this type of census, person who are regular
residents in a particular place are counted irrespective of the place they are residing temporarily.
It does not matter whether the person is present or not. This is the population census commonly
referred to as counting by PROSY
IMPORTANCE OF THE POPULAITON CENSUS
1. POPULATION SIZE: Population census helps the government to know the number of
people living in the country.
2. REVENUE ESTIMATES: It also helps in the determination of the taxable adults so as to
know the amount of revenue expected.
3. FORECASTS FUTURE ECONOMIC NEEDS: The population census also enable the
country to forecast her future economic needs e.g. housing, schools, food etc.
4. FORUMULATION OF ECONOMIC POLICIES: The number of people in a country is
used to formulate economic policies
5. DISTRIBUTION OF RESOURCES: Population census assists the government in the
distribution of resources e.g. area of high population like Lagos and Kano will get more
resources than area of low population
6. A population census enables the government to obtain adequate and relevant statistics
which will serve as a basis for economic planning.
PROBLEMS ASSOCIATED WITH POPULATION CENSUS
1. HIGH COST: Huge amount of money is involved in the conduct of population census.
2. SHORTAGE OF CENSUS PERSONNEL: Trained personnel like demographers are not
easily available hence the use of untrained personnel in the conduct of census lead to inaccurate
result.
3. HIGH DEGREE OF ILLITERACY: As a result of the high level of illiteracy in many
developing countries, it has become very difficult to conduct a successful population census as
these people do not know how to read and write. This makes self-enumeration difficult.
4. PROHIBITIVE CUSTOMARY AND RELIGIOUS BELIEFS: Some types of custom
and religion make census taking difficult. For example in the Muslim areas women are not
allowed to appear freely in public. For this reason, they may not be seen by census enumerators.
5. INADEQUATE MEANS OF TRANSPORT AND COMMUNICATION: Many rural
areas have no motorable road and adequate means of sending and receiving messages. These
problems hamper easy movement of census officials.
6. POOR REGIONAL PLANNING: Most town and villages are not planned. QUESTIONS
1. What is population census? Of what importance is it to the government?
2. What are the problems of population census?
3. State the implications of i. Optimum population ii. overpopulation
WEEK 10: THEORIES OF POPULATION
THE MALTHUSIAN THEORY OF POPULATION
The Malthusian theory of population is the outcome of an essay title ‘An essay
on population written in 1798 by Reverend Thomas Robert Malthus, an
 Anglican clergyman and a well-known political economist. The essay he wrote
In his essay, he highlighted the relationship between population and means of subsistence.
THE MAIN FEATURES OF MALTHUSIAN THEORY

The main views or features of the Malthusian theory about population are;
1. That population was growing at a geometric progression such as 2, 4, 8, 16, 32 etc. while
food production or supply was growing at an arithmetic progression such as 1, 2, 3, 4, 5, etc.
2. That there is a tendency for all living things to grow beyond the food available to them
3. That unless population increase is matched with means of subsistence, negative and
positive checks will come in to force.
4. That the checks can be war, diseases, epidemics and famine.
5. That population is essentially limited by the means of subsistence
DEMOGRAPHIC TRANSITION THEORY
Demographic transition theory is concerned with the historical population growth of a society. It
attempts to explain the relationship between fertility and mortality on population grow. The
theory explains how all developed countries in contemporary times have passed through three
identical stages of population history.
STAGE OF THE THEORY
STAGE 1 (PRE-TRANSITION PHASE OR STAGE)
This stage is characterized by high fertility (birth) rate and high mortality (death) rate.
In this stage the population is fairly stable, static or decreasing or increasing at a low rate. It is a
feature of the pre-industrial society.
STAGE II (TRANSITIONAL STAGE OR PHASE)
In this stage both fertility and mortality are declining. Fertility declines less
It is a period of population explosion as a result of high
birth rates and low death rate. It is a feature of developing economy.
STAGE III (POST-TRANSITION PHASE OR STAGE)
Both fertility and mortality are low and under control at this stage. The growth rate is controlled
as population remains, more or less stable i.e. it is a period of low birth rate, and low death rates
which leads to little or no population growth. It is a feature of advance economy.
UNDER POPULATION
Under population may be defined as the type of population that is less than the available
resources of a country.
Under population exists if the people within the country are too few in number to supply enough
labour to tap the available resources fully given the existing level of technical knowledge.
In such a situation where the resources of the country will not efficiently utilized as a result of
the small size of the population. The standard of living will fall.
CONSEQUENCES OF UNDER POPULAITON
1. The supply of labour will be relatively low
2. The size of the market will be relatively small
3. The level of production will be low
4. The level of income per capital and the standard of living will be low
5. The low productive capacity will mean that the size of export will decreases
6. Savings and investments will be low.
CAUSES OF UNDER POPULATION
1. A decrease in birth rate t visits.
2. An increase in death rate
3. High level of emigration
OPTIMUM POPULATION
The word optimum means best.
Optimum population refers to the best size of the population.
It is that size of the population which is given the available natural resources, technical
knowledge, capital and organization, will yield the highest output per head.
There will be a high standard of living since the size of the population is adequate to tap the
available resources fully.
WHY OPTIMUM POPULATION IS THE BEST POPULATION
1. Optimum population is neither to a large nor too small but equal to the available
resources in the country.
2. It yields as maximum returns per head
3. Optimum population is the type of population that is not difficult to control or manage
4. Highest standard of living is attained in a country that has optimum population
5. Optimum population does not pose a problem to a country’s economy.
OVER POPULATION
Over population is defined as a situation where a country has more people than this physical and
human resources can support with adequate living standards.
In other words, over population refers to a situation where there population exceeds the available
resources of the country.
CONSEQUENCES OF OVER POPULATION
[Link] will be congestion on land and pressure on other resources, including social services.
2. There will be a fall in per capita income
3. The demand for goods and service will be relatively high than what is available
4. There will be increased imports and greater balance of payment problems
5. There will be high level of unemployment and under employment
6. They will be a high level of government spending
7. There may be a high dependency ratio
CONTROL OF OVER POPULATION
1. Family planning
2. Discouragement of early marriage
3. Encouragement of monogamy
4. Provision of gain full employment for women
5. Encouragement of emigration
POPULATION DISTRIBUTION OR STURCTURE
Population distribution refers to the ways in which the population of a given country is
distributed into certain categories such as age, sex, occupation and geographical distribution.
AGE DISTRIBUTION
This refers to the breakdown of the population of a particular country into age groups. This age
distribution which varies from country to country is derived from population census figures.
However, the population of a country can be divided into the following age groups. These are:
1.0-17 years include the infants, children, pupils in nursery, primary, secondary and tertiary
institution. This age group is called dependent population
2.18-60 years is popularly referred to as the active population or working population or labor
force. (Independent population).
3.60 years and above is the old age (dependent population).
The summary, the age distribution of any given population can be grouped as follows;
1.0-17 years is children (dependent population)
2.18-60 years is adult (working population or labour force)
3.60 years and above: old age (dependent population)
ECONOMIC IMPLICATIONS OR EFFECTS OF INCREASE IN THE POPULATION
OF DEPENDANTS
[Link] will be high demand for goods and service required by the dependent population
[Link] will increase
[Link] in government expenditure
[Link] will be full in standard of living
[Link] will be low savings and low investments
OCCUPATIONAL DISTRIBUTION
Occupational distribution of a population refers to the classification of the working population
into different types of work they engage in. The occupation distribution in any population is
influence by a number of facts.
These include
1. The level of education
2. Availability of natural resources
3. The level of technology
4. They types of productive activities
However, occupational as a whole can be classified into four major principal divisions namely;
extractive, manufacturing and constructive, commercial, direct and indirect services.
SEX DISTRIBUTION OF POPULATION
Sex distribution of population refers to the classification of the population according to sex or
gender (i.e. male and female).
Sex distribution can easily be obtained from a population census of a given country which shows
the total number of males and the total number of females.
Knowledge of the total number of males and females in a country will assist the government to
make the necessary plans to cater for the population.
GEOGRAPHICAL DISTRIBUTION OF POPULATION
Geographical distribution of a given population refers to how people are spread over a given
geographical area in term of where they live.
In Nigeria for examples, the population is not equally spread or distributed. Some areas are high
populated while others are poorly populated.
QUESTIONS
[Link] examine the economic consequences of a rapid growth in the population of your
country.
[Link] outline the views of Thomas Malthus about population.
[Link] two major views of [Link] Malthus in population theory.
WEEK 11: LABOUR MARKET
Labour force can be defined as the total number of people of working age in a country/All
country who are gainfully employed and those who fall within the age bracket, may becapable
and willing to work by law but have no work to do in a country at a particular period of time.
Labour force is the working population and it comprises all persons who have jobs and who are
seeking for jobs in the labour market. They are between the age of 18 years and 60 years.
Working population varies from one country to another.
FACTORS AFFECTING THE SUPPLY OF LABOUR OR SIZE OF LABOUR FORCE
(WORKING POPULATION)
1. THE SIZE OF POPULATION: The higher the size of the population, the higher the
working population and vice versa.
2. OFFICIAL SCHOOL LEAVING AGE: If the school leaving age is low, the proportion
of labour force will be high and vice versa
3. OFFICIAL AGE OF RETIREMENT: If the age of retirement is raised the supply of
labour will tend to increase because more people will be available for work
4. LEVEL OF REMUNRATION OR THE WAGE RATE: The extent of salaries, wages
and other remunerations paid to the workers determines the number of people who may be
willing to work.
5. MIGRATION: Immigration will increase and emigration will decrease the supply of
labour.
MOBILITY OF LABOUR
The mobility of labour refers to the ease with which workers or labour can move from one
occupation to another or from one geographical area to another.
TYPES OF LABOUR MOBILITY
1. OCCUPATIONAL MOBILITY OF LABOUR: This refers to the ease with which
workers can move from one job to another. For instance, a messenger can easily change to
become a cleaner or a farmer.
2. GEOGRAPHICAL MOBILITY OF LABOUR: This refers to the ease with which
workers can move from one geographical location to another.e.g Port Harcourt to Jos.
3. INDUSTRIAL MOBILITY OF LABOUR: This refers to the ease with which workers
can move within the same industry or from one industry to another.
Industrial mobility of labour has two aspect; vertical industrial mobility of labour and horizontal
industrial mobility of labour.
Vertical mobility of labour usually takes the form of promotion with the same.
For example, the Vice-Principal of a school could be promoted Principal.
Horizontal or lateral mobility of labour takes place when a worker move from one industry to
another but still performs the same task occupies the same rank. For example, an Accountant can
leave the Star Beer factory at Aba for the textile mills at Aba.
CAUSES OF MOBILITY OF LABOUR OR FACTORS INFLUENCING MOBILITY
OF LABOUR
1. Unfavorable working condition
2. Marriage
3. Irregular payment of salaries
4. Promotion 5 bad management 6. Climate [Link] of job security