You are on page 1of 14

KWARA STATE UNIVESITY

(KWASU)
MALETE, KWARA STATE
College of Education
DEPARTMENT OF Entrepreneurship
Education

NAME:

oguntusi hafeez

olamilekan
LEVEL:
MATRIC NO:

200L
15/37EE/056

Course Title:

Business Practical 1

Course code:

EED219

1.

What is business, with relevant example?

Definition
According to well-known professors William Pride, Robert Hughes, and Jack
Kapoor, business is 'the organized effort of individuals to produce and sell, for a
profit, the goods and services that satisfy society's needs.' A business, then, is an
organization which seeks to make a profit through individuals working toward
common goals. The goals of the business will vary based on the type of business
and the business strategy being used. Regardless of the preferred strategy,
businesses must provide a service, product, or good that meets a need of society in
some way.
There are three key characteristics that must be met to have a business. First
businesses must be the result of individuals working together in an organized way.
Second, businesses must satisfy a societal need. Third, businesses must seek to
make a profit.
NOTE: businesses are comprised of individuals working together in an organized
way in order to be successful. Businesses are organized around the resources
needed to be successful, as well as the type of business that is being operated.
Some businesses may be organized in a way that requires constant cooperation and
communication with other employees. Other businesses may not require as much
contact with other employees but may instead rely on automated workflows. They
must decide the best way to be organized based on their individual goals.
Businesses must also satisfy a need for society. For example, a grocery store
satisfies the need to be able to purchase food for ourselves and our families.
Another example of satisfying a societal need is a gas station that provides needed
fuel for most cars to operate.
Businesses must carefully consider what need they are meeting for society in order
to strategically plan for success. For example, society may have a limited interest in
purchasing a personal hovercraft for travel. Travel needs are currently met in other
ways, so a business focused solely on personal hovercraft may struggle more than
the gas station at meeting a definite need.
Finally, businesses are organizations which are profit-seeking, meaning that they
are not the same as non-profit organizations. Whereas non-profit organizations seek
donations and funding to meet a mission, such as feeding the homeless in a city, a
business organization's goal will be centered on profit. For example, a business
organization might be seeking to become the first four-star hotel in a city.

2.
1
2

What are the characteristic of a successful


business?
Leadership
Business Culture

3
4
5
6
7
8
1.

Financial Literacy
Structure and Systems
Skill development
Everyone sells
Work environment
Compensation
Leadership: First and foremost, the owner of a successful business

functions as a businessperson. This means that the owner is engaged, accountable


and drives performance by paying attention to the business. That being said, its
easy to identify owners that are so engrossed in their non-leadership work that the
business is essentially free-floating without direction, structure or systems. This is
the equivalent of trying to run a business by remote control. It just doesnt work.
2.

Business Culture: The culture of a business represents the collective

behavior of its leaders and employees. Businesses that possess well-defined


cultures stand out from the crowd because theyre a joy to interact with. Customer
points of contact at the front desk, retail areas, and service departments everything
throughout the business feels natural yet orchestrated. What you dont see are
employees that are indifferent and disengaged. Great business cultures require
leadership, systems, training, coaching, accountability and commitment.
3.

Financial Literacy: Financial literacy is a non-negotiable skill in

business. This doesnt mean that the owner needs to be an accountant or have the
skills of a bookkeeper, but it does mean that the owner knows how to read and
understand financial reports and use them to make the best possible business
decisions. More importantly, the owner is capable of building a cash-flow plan to
project service and retail sales goals complete with a budget to manage expenses.
The result is a business that is fiscally solid and has the cash and resources to fund
growth. What you dont see are owners in a perpetual state of financial stress with
difficulty paying bills and retail shelves that have more room for dust than they do
products to sell. Cash is the fuel of business. Successful businesses learn and
master the skills to be financially responsible in order to ensure that they will have
enough fuel to achieve their goals.
4.

Structure and Systems: If your intent is to grow a dynamic, efficient,

quality-driven business, structure is non-negotiable. Structure ensures efficiency,

productivity, consistency and predictability. Systems produce predictable results.


Lack of structure and the absence of systems all but ensure inconsistency in how
work is done, conflicting agendas, dissension, stagnancy and, worst of all,
uncertainty. Call it leadership, accountability, systems, standards of performance, or
policies and procedures; it all refers to the structure that supports success. Anything
less than a deliberate and structured approach to business infuses mediocrity into all
activities. Mediocrity never wins in business.
5.

Skill development: Success is the result of acquiring knowledge and

mastering the skills to use that knowledge to the best of your ability. A commitment to
training and education is non-negotiable for both technical and non-technical skill
development. And the ultimate measurement of a companys commitment to training
and education is found in its first-time client retention rate (the percentage of firsttime clients that return for a second visit within approximately 90 days). Skill
development is an investment in your brand and quality assurance. Getting better
is a company value. Got it?
6.

Everyone sells: When it comes to the topic of selling, there is always a

love/hate relationship. The love part is that selling is what every business is all
about. Everyone recognizes this. The hate part is best summed up by the fact that
not all people are comfortable with the concept of selling. Some people are natural
at it while others feel their gut twisting when in close proximity to a sales situation.
The process of selling is just like producing a hit Broadway show. There are writers,
choreographers, set designers, lighting and sound technicians, an orchestra and
the actors. The applause and success is earned by the collective efforts of all. It
doesnt matter what an individuals role is in a company his or her paycheck
depends on the companys collective ability to sell.
7.

Work environment: Success has a look. Its common for owners to ask

me, Whats the first and most important thing I can do to turn my business around?
More often than not, my response is, Clean it, paint it and refurbish it. Front door to
back door, everything about the facility should communicate and support its brand
identity. Every piece of equipment should work. Lighting fixtures should be
functioning. Walls, dcor, posters, pictures, bathrooms and dressing rooms should

be spotless. Reception areas should look organized and professional. Dress for
success applies to work environments too.
8.

Compensation: Compensation is perhaps one of the most hotly debated

topics for owners and leaders. Commission, Team-Based Pay, fixed rate, sliding
scales, product/service charges, or independent contractor there is no one right way
that will serve the needs of all. But when all the debating is done, a compensation
program must achieve three goals.

3.

What is Regulatory Agency? And discuss two


type of it.

A regulatory agency is a governmental body that is created by a legislature to body


implement and enforce specific laws. An agency has quasi-legislative functions,
executive functions, and judicial functions. It can also be defined as a
Government body formed or mandated under the terms of a legislative act (statute)
to ensure compliance with the provisions of the act, and in carrying out its purpose.
Also called regulatory authority or regulatory body
The Role of Regulatory Agencies
If you own a business, you probably know it is subject to a cornucopia of laws. Your
business is subject to laws that govern social and economic matters, including
income taxation, payroll taxation, environmental laws, occupational health and safety
laws, real estate law, employment laws, criminal laws, and laws that are specifically
related to your particular industry, such as insurance or transportation. The list can
go on and on. So, what does this have to do with regulatory agencies?
Regulatory agencies serve two primary functions in government: they implement
laws and they enforce laws. Regulations are the means by which a regulatory
agency implements laws enacted by the legislature. You can think of regulations as
formal rules based upon the laws enacted by a legislature that govern specific social
or economic activities.

Implementing Laws

Regulatory agencies use a specific procedure to create and implement regulations.


We'll use the federal process as an example:
1. Advance notice
2. Proposed regulation
3. Public comments
4. Review of comments
5. Final regulation

Enforcing Laws
Regulatory enforcement is the other primary role filled by regulatory agencies.
Agencies have a responsibility to monitor businesses to ensure they are complying
with regulations. Agencies vary on how they perform their enforcement
responsibilities, but we can take a look at a generalized process
1. Investigation
2. Decision
3. Appeal
Types of regulatory agency
1. NAFDAC
2. RMBC

NAFDAC
The National Agency for Food and Drug Administration and Control (NAFDAC)
is a Nigerian federal agency under the Federal Ministry of Health that is responsible
for regulating and controlling the manufacture, importation, exportation,
advertisement, distribution, sale and use of food, drugs, cosmetics, medical
devices, chemicals and packaged water. The organization was formed to checkmate
illicit and counterfeit products in Nigeria in 1993 under the country's health and safety
law. Adulterated and counterfeit drugs are a problem in Nigeria. In one 1989 incident,
over 150 children died as a result of paracetamol syrup containing diethylene glycol.
The problem of fake drugs was so severe that neighbouring countries such

as Ghana and Sierra Leone officially banned the sale of drugs, foods and beverages
products made in Nigeria. Such problems led to the establishment of NAFDAC, with
the goal of eliminating counterfeit pharmaceuticals, foods and beverages products
that are not manufactured in Nigeria and ensuring that available medications are
safe and effective. The formation of NAFDAC was inspired by a 1988 World Health
Assembly resolution requesting countries' help in combating the global health threat
posed by counterfeit pharmaceuticals.
In December 1992, NAFDAC's first governing council was formed. The council was
chaired by Tanimu Saulawa. In January 1993, supporting legislation was approved
as legislative Decree No. 15 of 1993. On January 1, 1994 NAFDAC was officially
established as a parastatal of the Federal Ministry of Health. NAFDAC replaced an
earlier Federal Ministry of Health body, the Direc

Functions of NAFDAC
NAFDAC has various basic functions. According to the requirements of its enabling
decree, the Agency was authorized to:

Regulate and control the importation, exportation, manufacture,


advertisement, distribution, sale and use of drugs, cosmetics, medical devices,
packaged water and chemicals

Conduct appropriate tests and ensure compliance with standard specifications


designated and approved by the council for the effective control of quality of food,
drugs, cosmetics, medical devices, packaged water, and chemicals.

Undertake appropriate investigation into the production premises and raw


materials for food, drugs, cosmetics, medical devices, bottled water and
chemicals and establish a relevant quality assurance system, including
certification of the production sites and of the regulated products

Undertake inspection of imported foods, drugs, cosmetics, medical devices,


bottled water, and chemicals and establish a relevant quality assurance system,
including certification of the production sites and of the regulated products.

Compile standard specifications, regulations, and guidelines for the


production, importation, exportation, sale and distribution of food, drugs,
cosmetics, medical devices, bottled water, and chemicals

Undertake the registration of food, drugs, medical devices, bottled water and
chemicals

Control the exportation and issue quality certification of food, drugs, medical
devices, bottled water and chemicals intended for export

Establish and maintain relevant laboratories or other institutions in strategic


areas of Nigeria as may be necessary for the performance of its functions.

NAFDAC envisions that by making these functions known, that its actions will be
apparent in all sectors that deal with food, cosmetics, medical devices, bottled
water, and chemicals to the extent of instilling extra need for caution and compulsion
to respect and obey existing regulations both for healthy, living and knowledge of
certain sanctions or default. Despite the establishment of NAFDAC, the sale and use
of fake drugs did not end.
Achievements
NAFDAC has made several achievements over the years, including

The creation of six zonal and 36 state offices for easier accessibility, which are
being equipped to function effectively,

Organization of workshops to enlighten various stakeholders, such as (a) pure


water producers (b) the Patent and Proprietary Medicine Dealers Association
(PPMDA), and (c) the National Union of Road Transport Workers and National
Association of Road Transport Owners (NURTW & NARTO),

Raising awareness not just in Nigeria, also in other countries


like India, China, Pakistan, Indonesia, and Egypt,

Holding meetings, in concert with the Chairman, House Committee on Health


and his members, with Ambassadors of countries identified with exporting fake
drugs into Nigeria and solicited their support to stop the trend,

Achieving excellent results in the fight against counterfeit drugs, as evidenced


by the public destruction of about 2 billion Naira worth of drugs from four sources,
namely those handed over by repentant traders, those found in secret
warehouses on tip off by the drug sellers and the public, and those seized by the
drug sellers' internal task forces and NAFDAC task forces,

Launch of anti-counterfeiting technologies by the Nigerian presidency

RMBC
Historical background
The Rwanda Medical and Dental Council is the authority responsible for
regulation of medical and dental practice in Rwanda. The Rwanda Medical and
Dental Council was established on May 31st 2003 following the promulgation of law
number 30/2001 of the 12th June 2001, which changed to the Law N 44/2012 of
14/02/2013 outlining the organization, functioning, and competence of the Medical
and Dental Council. The Rwanda Medical and Dental Council is a professional,
administrative and jurisdictional institution.

Functions of the Rwanda Medical and Dental Council


The Council is in charge of registering and licensing all medical and dental practicing
or intending to practice medicine in Rwanda.
The Council is the guardian of the ethical rules, the honor and dignity of the medical
and dental profession and oversees the practice of the medical and dental
profession to ensure that moral principles, honesty and devotion, which are essential
for the practice of medicine are upheld by all medical doctors and dentists.

4. WHAT IS FINANCIAL AGENCIES IN BUSINESS?


And discuss two?
What is Financial Agencies?

Financial institutions are organizations that process monetary transactions,


including business and private loans, customer deposits, and investments. They're
key to the financial intermediation process, whereby financial institutions transfer
funds from those who save money to those who borrow money. Let's take a look at

the three main types of financial institutions: depository, non- depository, and
investment.

Private (shareholder-owned) or public (government-owned) organizations that,


broadly speaking, act as a channel between savers and borrowers of funds
(suppliers and consumers of capital). Two main types of financial institutions (with
increasingly blurred dividing line) are:
1) Depository banks and credit unions which pay interest on deposits from the
interest earned on the loans, and
(2) Non-depository insurance companies and mutual funds (unit trusts) which collect
funds by selling their policies or shares (units) to the public and provide returns in the
form periodic benefits and profit payouts.

TYPES OF FINANCIAL AGENCIES


1. COMMERCIAL BANK
2. INSURANCE COMPANY

COMMERCIAL BANK
The Central Bank of Nigeria was established by the CBN Act of 1958 and
commenced operations on July 1, 1959. The major regulatory objectives of the bank
as stated in the CBN Act are to: maintain the external reserves of the country,
promote monetary stability and a sound financial environment, and to act as a
banker of last resort and financial adviser to the federal government. The central
bank's role as lender of last resort and adviser to the federal government has
sometimes pushed it into murky regulatory waters. After the end of imperial rule the
desire of the government to become pro-active in the development of the economy
became visible especially after the end of the Nigerian civil war, the bank followed
the government's desire and took a determined effort to supplement any short falls in
credit allocations to the real sector. The bank soon became involved in lending
directly to consumers, contravening its original intention to work through commercial
banks in activities involving consumer lending. However, the policy was an offspring
of the indigenization policy at the time. Nevertheless, the government through the
central bank has been actively involved in building the nation's money and equity

centers, forming securities regulatory board and introducing treasury instruments into
the capital market.

Authorizing legislation
In 1948, an inquiry under the leadership of G.D Paton was established by the
colonial administration to investigate banking practices in Nigeria. Prior to the inquiry,
the banking industry was largely uncontrolled. The G.D Paton report, an offshoot of
the inquiry became the cornerstone of the first banking legislation in the country: the
banking ordinance of 1952. The ordinance was designed to prevent non viable
banks from mushrooming, and to ensure orderly commercial banking. The banking
ordinance triggered a rapid growth in the industry, with growth also came
disappointment. By 1958, a few numbers of banks had failed. To curtail further
failures and to prepare for indigenous control, in 1958, a bill for the establishment of
Central Bank of Nigeria was presented to the House of Representatives of Nigeria.
The Act was fully implemented on July 1, 1959, when the Central Bank of Nigeria
came into full operation. In April 1960, the Bank issued its first treasury bills. In May
1961 the Bank launched the Lagos Bankers Clearing House, which provided
licensed banks a framework in which to exchange and clear checks rapidly. By July
1, 1961 the Bank had completed issuing all denominations of new Nigerian notes
and coins and redeemed all of the West African Currency Board's previous money.

The History of Insurance Companies in


Nigeria
The first insurance policy may be traced back to the time of the ancient Babylonian
King Hammurabi who introduced the Hammurabi Code. This code established the
practice of forgiving a debtor his loans in the event of a personal catastrophe such as
death, disability or loss of property.
The Marine Insurance business came up in the 14 thcentury and has been referred to
as the oldest form of organized insurance. The practice of insurance then spread to
the United Kingdom in the 16th century, though it was still quite informal and was
carried out in the House of Lloyds. After marine insurance, fire insurance came up
after the Great fire of London and then life and accident insurance was developed.
Upon colonialism and trade on the Western Coast of Africa by Europeans, modern
insurance was introduced to Nigeria and this was at the beginning of the twentieth

century. It was introduced to help reduce the burden of possible risk involved in trade
and as a result of this; it was initially indulged in by foreigners and not Nigerian
citizens. The increase in trade and commerce led to an increase in shipping and
banking activities, thus, making it necessary for there to be some form of risk back
up handled locally. The insurance companies in Europe appointed agents
(Merchants) to arrange insurance cover for their trading concerns. These agents had
the power of attorney to accept risks, but claims were still referred to the parent
company, thereby making the merchants insignificant. These agencies and the few
Nigerians employed in them had little or no knowledge of the insurance practice as
they were not exposed to insurance practice before then. The Royal Exchange
Assurance Company which was a London based body opened a branch office in
Lagos in 1921 and this was the first insurance company in Nigeria headed by Late
George Golding. It enjoyed monopoly as the only insurance company for a period of
about twenty-eight years when three others came up. (These three were the Legal
and General Assurance Society, Norwich Union Fire Insurance Society and the
Tobacco Insurance Company). By 1960, there were twenty-five insurance companies
in Nigeria. Of the twenty-five insurance companies in Nigeria by 1960, twenty-two
were foreign owned and three were indigenous. Patronage was however, quite low
as most Nigerians were not aware of insurance and its importance. With the lack of
proper legislation and awareness about the industry, there was a rapid and rather
unhealthy increase in the number of insurance companies after independence,
bringing the number of insurance companies in Nigeria to eighty by 1975. The first
legislation for the insurance industry was the Insurance Companies Act of
1961 which required registration with the Registrar, but was not effective in
implementation and was therefore easily breached. It was amended in 1964 by the
Insurance (Miscellaneous Provisions) Act 1964 and by 1976, both Acts were
repealed.
The insurance companies have, over the years, experienced certain challenges that
gave rise to the need for reforms and transformations. These challenges had
hampered the growth of the industry and had adverse effect of its efficacy to handle
the risk of those under its policy, thereby destroying the little faith the Nigerian people
had in the industry.

Challenges of Insurance Companies


There were several challenges which faced the insurance industry and threatened its
existence. These challenges needed to be tackled and this was what eventually
gave rise to insurance reforms. Some of these challenges include:
1. The insurance system was not as developed as it should have been to handle
the needs and risks of a country like Nigeria and its ever rising population.
2. At the initial stage of insurance in Nigeria, Nigerians were used as mere
agents who did not understand the industry and its workings and therefore did
not have so much to offer the public that needed insurance.
3. Poor regulatory framework was also a problem that plagued the insurance
company at the early stages. The institution came before the regulation and
even at the advent of the legislations; they were quite puerile and therefore
unable to meet the needs of the fast growing insurance industry.
4. The contribution of the insurance industry to Nigerias Gross Domestic
Product (GDP) at a point was below 1 per cent and this was very
dissatisfactory as the growth and efficiency of the insurance industry leads to
development in the countrys financial sector.
5. Focus at the time was essentially placed on health insurance companies, not
just to bring about re-organisation of the industry but to help Nigerias health
program.
6. Ultimately, there was no confidence of the people in the industry. This led to a
situation whereby the public was hesitant to insure their property and this had
adverse effect on the industry.
7. There was also low awareness of the need for insurance due to low level of
education and economic activities among Nigerian indigenes.
8. Some of the people who contracted with insurance companies did not pay
premium as it was not a condition precedent for insurance cover at the time.
Insurance companies therefore lacked the capital to function as efficiently as
they should have.

REFERENCES
About NAFDAC. 2005. Retrieved on 2006-03-27
^ Jump up to: a b NAFDAC: Battle against fake drugs. 2003-03-04. Retrieved on
2006-03-25
Jump up ^ The Director General: Prof. Dora Nkem Akunyili (OFR) Biography.
NAFDAC Nigeria. Retrieved on 2007-07-25
Jump up ^ Achievements. (2005). Retrieved on March 31, 2006, from
http://www.nafdacnigeria.org/achievements.html
E. O. Oloyede, The Bank Customer and Banking Law in Nigeria, Journal of African
Law, Vol. 19, No. 1/2, Spring, 1975
G. O. Nwankwo, Bank Lending in a Developing Economy: The Nigerian Experience,
Journal of African Law, Vol. 19, Spring, 1975
"Foreign reserves down, bank lending up as economy falters", Financial Times,
November 29, 1982
Ugo A. Okoroafor "Currency Restructuring in the CBN", cenbank.org, September 20,
2012