REVISION OF ENTERPRENEURSHIP

Sole Proprietorship…. Refers to business owned by one person who carry out a business with a view
of making profit.

ADVANTAGES

1.Easy to raise a profit

2.Owners Makes Independent decision

3.The owner of the business have complete control over the business

4.The owner have personal contact with the employees and customers

5.Owners enjoy all the profit

DISADVANTAGES

1.The success of the business depend on the entrepreneur’s hard work.

2.Bussiness operation can be affected by the owners

3.The owner bares all the loses

4.The business have little protection against personal liability, personal assert, such as the owner’s
land.

Partner…. Is association or business of two or more person who come together to carry out a
business with a view of making profit.

WHAT WILL THE AGREEMENT TO BE SIGNED IN PARTNERSHIP STATE

 The effective date the business will start

 The business name of the partnership
 How the business process and profit will be shared
 How a partner will withdraw from the partnership

ADVANTAGES

1. Work is divided among the partners

2. Better combination of skills and talent
3. Loses of liability is shared among the partners
4. The business can easily expand
5. Formation of the business is simple

DISADVANTAGES

1. The liability of the business is unlimited

2. The partners are likely to disagree in various problem affecting the business
3. If one partner makes problem in the business, other partners suffer the consequences
4.If the business lies heavily on one person and the other partners leave or dies the firm can easily
collapse.

Private limited company…. It is formed by a minimum of two share holders and a maximum of 50
people.

FORMATION OF PARTNERSHIP

A partnership business may come into existence through the following ways

 Orally
 By action of person concern
 By simply put in written
 By partnership deeds

CIRCUMSTANCE UNDER WHICH PARTNERSHIP CAN BE ILLEGAL

 If the partnership has been established for illegal purpose

 If the partnership contains more than 20 members
 If the partnership is formed and the partners don’t meet the minimum qualifications

REQUIREMENTS FOR BUSSINESS NAME REGISTRATION

The business names

The general nature of the business

The principal place of the location of the business

The nationality of each business

Any other occupation the business

TYPES OF PARTNERS

General Partners…These are the most active partners in partnership

Limited Partners…Are type of partners who are limited to amount of capital contributed to the
partnership business

CONDITION TO BE MEET FOR A LIMITED PARTNERSHIP TO BE FORMED

 The partnership should not consist of more than 20 partners

 The partnership should consist of one or more general partners

Active Partners…Are partners who take the active part in the running of the business

Dormant partners…Are partners who don’t take part on the day-to-day management but contribute
capital, shares, profits and reliable for the business debt.
Nominal partners…Type of partner who don’t take any part in contribution of capital but allows his
name to be used in the business

SOURCES OF BUSSINESS FINANCE

Owners Capital

These type of capital wen invested is often quickly turned into long term fix assert