THE CONTRIBUTIONS AND EFFECTS OF BUSINESS PARTNERSHIP ON THE NATIONS ECONOMY

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THE CONTRIBUTIONS AND EFFECTS OF BUSINESS PARTNERSHIP ON THE NATIONS ECONOMY. (A CASE STUDY OF MEZUE AND ASSOCIATES ENUGU.)

ABSTRACT

Nigerian Economy is one of the vibrant economies in the world. Although the nation is still regarded as under developed country, but the rate of her involvement in international business cannot be neglected.However, the economic progress and exploits can be attributed to the various forms of business formation available and practiced in Nigerian Economy. These range from; Sole Proprietorship, Partnership, Joint Stock Company to Co-operatives. Among these forms of business establishments, Partnership Business is more predominant in the economy. The reason for this is obvious. Partnership as the name implies is an association of two or more persons  carrying   out  business in common for the sake of profit maximization. This association can be a mixture of academic talents, money, skills, e.t.c of persons. This fusion of efforts and ideas undoubtedly creates room for business growth and success. One therefore cannot proceed to ask the question, “what are the benefits of this enterprise i.e. PARTNERSHIP?” or why do people establish it ?”

Meanwhile, as the researcher proceeds and advances in his research, these questions will receive their most appropriate answers. Also, vague ideas about partnership and its activities will be explained including its pre-historic era.

Above all, the effects and contributions of Business Partnership, which is the core of this research work will be outlined, with recommendations for its improvement, survival and continued growth.

LIST OF TABLES

4.1              GOVERNMENT SUPPORT ON PARTNERSHIP

BUSINESS

4.2              REASONS FOR ITS GROWTH

4.3              CREATION OF EMPLOYMENT

4.4              GROWTH OF PARTNERSHIP IN NIGERIA

FUTURE PARTNERSHIP IN NIGERIA

CHAPTER ONE

INTRODUCTION

The aim of this chapter is to present the introductory they  part of this work, which is sub-divided in the following sub-headings below:

1:1       BACKGROUND OF THE STUDY

Over the years, especially before and immediately after independence (1940’s-1970’s), business activity in Nigeria were dominated by government and public establishments. Little or nothing was known about group business establishments. Few economic association existed in the form of co-operatives and amalgamations. The economy survived this economic state because of the resources it was endowed with, coupled with the fact that there was better management and administration of the nation’s economy. Although, the nation survived economically, there was still a need to increase the number of business concerns in the economy, at least to solve some of the macro-economic problems of the society like unemployment and others.

However, it is pertinent to note that this state is unattainable without accelerated growth of business establishments, which only formation and initiation of enterprises is the antidote. To solve this problem, the Federal government identified and recognized three legal ways by which business can be set up in the economy.

These ways include:

The formation of Private and Public Joint Stock Companies under the Company’s Act of 1961, which was changed to companies, under the companies Allied Matters Decree of 1990 by the Military regime under General Ibrahim Babangida.

Secondly, is the formation of co-operative societies and the last is Partnership Act of 1890.

Meanwhile, the law establishing partnership business was enacted under registration of business names Act of Federal Republic of Nigeria in 1961 and was later revised by the Babangida’s Administration under the companies and Allied matters Decree of 1990. Before this development, Partnership Act was one of the statutes borrowed into our legal system in 1990, being enacted in 1890.

The partnership business came into existence as a result of large capital outlay required in setting up a limited liability company. It was also to maximize the advantages of incorporated companies over smaller ones

At present, partnership business has been noticed to be one of the tools conditionally available to improve the functioning of development which include; creation of jobs, improving the standard of living of Nigerian citizens, developing infrastructural educational facilities, as well as social facilities.

 

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THE CONTRIBUTIONS AND EFFECTS OF BUSINESS PARTNERSHIP ON THE NATIONS ECONOMY. (A CASE STUDY OF MEZUE AND ASSOCIATES ENUGU.)

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