Entrepreneurship and Nigeria's Industrialization Policy
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Questions and Answers

What is NOT typically covered in a deed of partnership?

  • How to add new partners
  • Business name and type
  • Employee benefits policies (correct)
  • How profits and losses will be shared

    • Which type of partner is involved in the daily operations of the business?

  • Nominal Partner
  • Limited Partner
  • Active Partner (correct)
  • Dormant Partner

    • Which circumstance would typically require the use of a deed of partnership?

  • Several individuals agreeing on the rules for a business venture (correct)
  • Friends forming a partnership without investments
  • Two individuals entering an informal handshake agreement
  • A solo entrepreneur looking to start a business

    • What is a characteristic of a dormant partner?

    <p>Invests money but is not involved in operations (D)</p> Signup and view all the answers

    Why is it considered beneficial to have a deed of partnership in writing?

    <p>It helps prevent future disputes or misunderstandings (D)</p> Signup and view all the answers

    What is a defining characteristic of a sole proprietorship?

    <p>It is not a separate legal entity. (C)</p> Signup and view all the answers

    Which of the following is an advantage of operating a sole proprietorship?

    <p>Ease of formation and closure. (C)</p> Signup and view all the answers

    In a sole proprietorship, who is liable for business debts?

    <p>The owner is personally liable. (C)</p> Signup and view all the answers

    Which practice, advocated by Steve Jobs, can help enhance creativity?

    <p>Open-monitoring training meditation. (D)</p> Signup and view all the answers

    What is a key advantage of a sole proprietorship?

    <p>Direct control over customer interactions (C)</p> Signup and view all the answers

    What is one key risk associated with a sole proprietorship?

    <p>Unlimited personal liability. (C)</p> Signup and view all the answers

    What type of decision-making authority does a sole proprietor have?

    <p>Complete control over business decisions. (B)</p> Signup and view all the answers

    Which of the following is a disadvantage of a partnership?

    <p>Disagreements between partners can lead to closure (D)</p> Signup and view all the answers

    How does the ownership structure of a sole proprietorship differ from that of a partnership?

    <p>In a sole proprietorship, one individual owns the business and assumes all risks. (B)</p> Signup and view all the answers

    What does unlimited liability in a sole proprietorship imply?

    <p>The owner is personally responsible for all debts (A)</p> Signup and view all the answers

    What is the primary reason many new entrepreneurs choose a sole proprietorship?

    <p>The ease and low cost of establishment. (A)</p> Signup and view all the answers

    According to the Partnership Act 1890, how is a partnership defined?

    <p>People working together to make a profit (B)</p> Signup and view all the answers

    What is one disadvantage of sole proprietorships that is not present in partnerships?

    <p>It can be difficult to raise sufficient capital (D)</p> Signup and view all the answers

    Which of the following is a feature of limited partnerships?

    <p>Some partners have limited liability based on their investment (A)</p> Signup and view all the answers

    What can be a potential fallout of disagreements between partners?

    <p>Closure of the business (D)</p> Signup and view all the answers

    Which of the following advantages is associated with partnerships?

    <p>Ability to continue after a partner leaves (D)</p> Signup and view all the answers

    Signup and view all the answers

    Flashcards

    Entrepreneurial Creativity

    The ability to generate innovative ideas and solutions in business.

    Steve Jobs

    Co-founder of Apple, known for his creative innovations in technology.

    Meditation for Creativity

    Practicing mindfulness techniques to enhance divergent thinking.

    Sole Proprietorship

    A business owned and managed by one individual, bearing all risks.

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    Ownership in Sole Proprietorship

    The business is entirely owned by a single person.

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    Unlimited Liability

    The owner is personally responsible for all business debts.

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    Advantages of Sole Proprietorship

    Benefits include ease of formation and low cost to start.

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    No Separate Legal Entity

    The owner and business are considered the same legally.

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    Partnership

    A business operated by two or more individuals pooling resources for profit.

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    Max Partners in Partnership

    A partnership can have a maximum of 20 partners as per the Partnership Act 1890.

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    Advantages of Partnership

    Benefits include better decision-making, easy setup, and easier fundraising compared to sole proprietorship.

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    Limited Partnership

    A partnership where some partners have limited liability based on their investment, while others have unlimited liability.

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    Disadvantages of Partnership

    Challenges like personal debt responsibility and potential disagreements impacting the business stability.

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    Deed of Partnership

    An agreement outlining how the partnership operates.

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    Active Partners

    Partners who work daily and manage the business.

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    Dormant Partners

    Partners who invest but do not participate in daily activities.

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    Nominal Partners

    Partners who lend their name but invest little.

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    Business Name and Type

    Part of the deed specifying the partnership's identity and nature.

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    Study Notes

    Entrepreneurship

    • Entrepreneurship is crucial for economic progress, not just for small businesses, but for national advancement.
    • Successful economies like the USA, France, Japan, and Germany effectively utilize entrepreneurial concepts for job creation, capital efficiency, and essential goods production.
    • Many developing nations, including Nigeria, have underutilized entrepreneurial approaches, leading to slower economic progress.

    Nigeria's Industrialization Policy (1962-1968)

    • Nigeria's first national development plan prioritized large-scale, capital-intensive industries, aiming for import substitution.
    • This strategy was flawed, creating negative impacts:
      • Heavy reliance on imported raw materials, machinery, and equipment (45% of annual import bills by 1998).
      • Limited job creation due to high capital requirements.
      • Limited use of local raw materials, reducing economic benefits.
      • Manufacturing's contribution to GDP fell to 8.5% by 1993.
      • Poor integration between agriculture and industry.
      • Neglect of exports hindered local technical development.
      • Overlooking the potential of local resources.
      • Insufficient focus on local innovation and supporting indigenous entrepreneurs.
    • The 1980s oil glut and global recession highlighted the flaws in this approach, pushing Nigeria among the world's poorest nations.

    A Shift Towards Indigenous Entrepreneurship

    • Nigeria shifted its focus from large-scale industrial policy towards small-scale entrepreneurship as a sustainable path to economic development.
    • The Third National Development Plan (1975-1980) prioritized:
      • Mobilizing local resources effectively.
      • Creating more job opportunities.
      • Spreading enterprises across Nigeria.

    Entrepreneur and Entrepreneurship

    • An entrepreneur identifies and exploits business opportunities, manages risks, allocates resources effectively, and ensures venture success.
    • Key definitions include:
      • McClelland (1966) - entrepreneurs discover opportunities, manage operations, provide leadership, and adapt to dynamic environments.
      • Amit et al. (1993) - entrepreneurs create opportunities, combine resources, and innovate for profit in uncertain environments.
      • Ogundele (2000) - entrepreneurs are innovators who initiate and grow businesses, navigating early struggles.
      • Kuratko & Hodgetts (2001) - entrepreneurs identify opportunities amid chaos and confusion, driving economic and industrial growth.
      • Fadahunsi (1992) - entrepreneurs are "path-breakers" who drive economic and industrial growth.

    Key Elements of Entrepreneurship Development

    • Identifying and pursuing opportunities.
    • Establishing a business.
    • Taking calculated risks.
    • Earning rewards from entrepreneurial activities.

    Entrepreneurial Functions

    • Search for and discover new information
    • Translate information into markets, products, and techniques
    • Identify economic opportunities
    • Evaluate identified opportunities
    • Mobilize necessary financial resources
    • Establish and manage time-sensitive plans
    • Manage the enterprise effectively
    • Motivate the workforce
    • Lead and coordinate the workgroup
    • Take responsibility for risks and uncertainties

    Characteristics of Entrepreneurship

    • Key traits include long-term commitment, self-confidence, total involvement, persistence, goal-orientation, calculated risk-taking, courage, strong organizational skills, initiative, personal responsibility, decision-making, leadership abilities, and achievement-drive.

    Factors That Promote Entrepreneurship Development

    • Free enterprise systems, diverse investment options, environmental choices conducive to decision-making, and incentives for innovation.

    Types of Entrepreneurships

    • Routine entrepreneurship.

    Entrepreneurial Needs

    • Need for Power (n/PWR).
    • Need for Affiliation (n/AFF).
    • Need for Achievement (n/ACH).

    Role of Entrepreneurs in Society

    • Develop new skills, ideas, and products.
    • Provide leadership, motivation, and direction.
    • Take responsibility for organizational structures and operations.

    Entrepreneurship and Intrapreneurship

    • Refers to creating new ventures within existing organizations.
    • Emphasizes internal innovation, competition, and satisfying human needs.

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    Description

    This quiz explores the significance of entrepreneurship in economic progress, focusing on its role in developed countries and the challenges faced by Nigeria. It covers Nigeria's early industrialization policies and their impacts on the economy, including import reliance and job creation issues.

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