Theory question 104
Government and BusinessCommerce 2 (answer five questions)
(a) Mention and explain the four business resources.
(b) Explain four ways by which government regulates business.
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(a) Four resources (factors of production): land/natural resources – sites, raw materials, minerals, water; labour – human effort, physical and mental, used in production; capital – money and man-made aids such as machines, buildings, vehicles; entrepreneur/management – the person who organises the other resources, takes decisions and bears the risk. (Accept also money, materials, machines and men/manpower as the four Ms.)
(b) Any four, explained: legislation – laws on registration of businesses, companies (CAMA), contracts, sale of goods, hire purchase; consumer protection laws and agencies – standards (SON), food and drugs (NAFDAC), price control, weights and measures; licensing and registration – permits and licences before trading; taxation and tariffs – company tax, excise and customs duties, import bans and quotas; monetary policy through the Central Bank – interest rates, credit control; indigenisation, nationalisation and privatisation policies; labour laws – minimum wage, safety at work, trade union rules; environmental and zoning laws on where firms may locate.
Name each resource and say what it contributes; in (b) give the means and its effect on business.