Introduction to Business

Question 1

What is a business and what are its functions?

Answer 1

A business is an organization involved in cormecial,insdustrial, proffession activities, that exchanges products and/or
services to customers in return for profits. It’s functions include the Production and Marketing of goods and services, Finance i.e Money management, Human resources
i.e employee management and developement, and Operations i.e. Managing the day-to-day activities of the organization.

Question 2

What are the different forms of business ownership?

Answer 2

There are serveral types of business ownerships that include
1. Sole Propietorships and Partnerships: Both of them are defined by their number of owners, dececison makers, risk bearers, and profit enjoyers. For sole proprietorship
all this is handled by a single individual, for partnerships this responsibilities are handled by multiple individuals

2. Coporations: These are business entities seperate from their owners, and provide their owners limited liability
3. Cooperatives: These are business owned and operated by multiple individuals for mutual benefit

Question 3

What are the 4 types of Partnerships under OHADA?

Answer 3

They include
1. Ordiniary partnerships: These are business organizations that are formed through a contract between two or more individuals, the gorvement does not restrict its
maximum number of members nor place a minimum capital requirement on them. Every partner in the organization is liable to the full extent of the business debts.

2. Limited Partnerships: These are partnerships with two types of members, 1. active partners that handle the day to day activities of the business and have unlimited
   liability, and sleeping partners, who have liability limited to their investment in the business.
3. Limited Liability Parnerships: These are partnerships where partners are not directly liable for the business debts, but instead they are liable only to the extent
   of their invesment in business.
4. Joint ventures: It is a temporal partnership between businesses to realise a project.

Question 4

What are the 4 possible types of partners in a partnership?

Answer 4

-> Active partners who invest in the business and take part in its day-to-day activities
-> Sleeping partners who invest in the business but do not take part in its day to day activities
-> Norminal partners who do not invest in the buisness but lend it their name, for its benefit
-> Partners by Estopel, who are not partners, but act in way thay may lead to someone beleiving they are