The following is a detailed, comprehensive, and SEO-optimized article on the SS 2 Scheme of Work for the second term in Business Studies. This guide will provide you with a clear breakdown of each week’s topic and content, along with examples, ensuring that even novice readers will easily understand the concepts. The article aims to drive clicks, traffic, and site engagement, placing it in front of people actively searching for relevant educational content.
Week 1: Revision
Content:
- Purpose of Revision: The first week of the second term focuses on reviewing the concepts and skills learned in the previous term. It prepares students for more advanced topics and ensures that foundational knowledge is solid.
- Key Areas to Revise:
- Basic Business Concepts (e.g., types of business organizations).
- Functions of Business.
- Financial Statements: Income Statement, Balance Sheet.
- Simple Arithmetic Applications in Business.
Examples:
- What is a sole proprietorship?
- Distinction between a partnership and a company.
- How to calculate profit from sales and expenses.
- Understanding liabilities and assets.
- Different methods of business taxation.
- Key features of financial statements (income statement, balance sheet).
Week 2: Acquisition/Purchases of Business
Content:
- Purchase Consideration: The total price paid to acquire a business. It includes the value of tangible assets (property, equipment) and intangible assets (goodwill).
- Goodwill: The value attached to a business based on its reputation, customer loyalty, and brand recognition.
- Meaning, Reason for Acquisition, Format, and Working Capital: When businesses acquire other businesses, it is often done to gain market share, new assets, or improve efficiency.
- Reason for Acquisition: Increasing market share, eliminating competition, accessing new markets.
- Format of Acquisition: This typically involves negotiations, a purchase agreement, and payment terms.
- Working Capital: The funds needed to operate the day-to-day business activities.
Examples:
- Purchase Consideration: If a business is bought for $1 million, including property and goodwill valued at $300,000, the purchase consideration is $1 million.
- Goodwill Example: The reputation of a local restaurant chain adds $500,000 in goodwill value.
- Reason for Acquisition: A large technology company may acquire a startup to expand its product offerings.
- Acquisition Format: Negotiating the sale price, terms, and payment structures between the buyer and seller.
- Working Capital Example: A business may need an additional $200,000 in working capital to meet daily operational costs.
- Working Capital Ratio: A company with $500,000 in assets and $300,000 in liabilities has a working capital of $200,000.
Week 3: Purchase of Business – Format, Preparation of New Business Account
Content:
- Format of Purchase: Discuss the structure of the purchase agreement and the process of transferring ownership.
- New Business Account: After the acquisition, a new set of financial records must be created for the acquired business.
- Accounting for Business Purchases: Adjustments to assets, liabilities, goodwill, and business expenses.
- Example of Preparation of Accounts: Recording the acquisition price, adjustments for goodwill, and liabilities.
Examples:
- A business purchases another company for $1 million, creating an account for the new purchase.
- Recording the value of tangible and intangible assets in the new business account.
- Adjustments made to goodwill in the business account.
- Liabilities such as debts, loans, and obligations are transferred to the new account.
- Preparing a new business income statement and balance sheet after acquisition.
- Calculating the capital employed after the purchase.
Week 4: Company Amalgamation – Reason, Process, and Working Exercises
Content:
- Definition of Amalgamation: The process of combining two or more companies into a single entity. It can be voluntary or involuntary.
- Reasons for Amalgamation: To create economies of scale, reduce competition, or enhance market share.
- Process of Amalgamation: Involves negotiations, legal processes, and financial restructuring.
- Working Exercises: Students will learn how to prepare accounts for amalgamated companies.
Examples:
- Two smaller technology firms combining to form a larger entity.
- Reason for Amalgamation: A company merges with another to access new markets or technologies.
- Process Example: The legal and financial steps to merge two companies.
- Accounting for Amalgamation: Adjustments in financial statements to reflect the combined business.
- Amalgamation of companies in the banking sector to form a larger, more competitive entity.
- Resolving financial discrepancies during amalgamation.
Week 5: Company Formation – Private and Public Companies, Quoted and Unquoted
Content:
- Company Formation: The process of establishing a new company, including registration, obtaining licenses, and appointing directors.
- Private and Public Companies:
- Private Companies: Limited in number of shareholders, do not offer shares to the public.
- Public Companies: Can offer shares to the public and are listed on the stock exchange.
- Quoted and Unquoted Companies:
- Quoted: Listed on the stock exchange.
- Unquoted: Not listed but may have shares that are privately traded.
Examples:
- Private Company Example: A family-owned business with limited shareholders.
- Public Company Example: Microsoft, listed on the stock exchange, with shares available to the public.
- Quoted Company Example: A company listed on the Nigerian Stock Exchange (NSE).
- Unquoted Company Example: A small startup that chooses not to list on the stock exchange.
- Private vs. Public: A private company may have fewer regulatory requirements compared to a public company.
- The process of registering a company with the Corporate Affairs Commission (CAC) in Nigeria.
Week 6: Nigeria Financial System – Meaning, Components, Features, Operators, Money Market and Capital Market Functions
Content:
- Financial System: The framework for managing money, investments, and credit in a country.
- Components: Banks, insurance companies, pension funds, and investment firms.
- Money Market: Short-term borrowing and lending (e.g., treasury bills).
- Capital Market: Long-term investments, such as stocks and bonds.
- Operators: Banks, stockbrokers, and financial advisors.
- Functions: Mobilization of funds, facilitating investments, and promoting economic growth.
Examples:
- Money Market Example: Government bonds, treasury bills.
- Capital Market Example: The Nigerian Stock Exchange (NSE), where shares are bought and sold.
- Components of the Financial System: Central Bank of Nigeria (CBN), commercial banks, insurance companies.
- Operators Example: Investment firms that offer financial advice to investors.
- Role of the CBN in controlling inflation and promoting economic stability.
- The impact of the capital market on Nigeria’s economy.
Week 7: Types of Shares, Issue of Shares, Distinction Between Shares – Issue of Shares at Par, Discount, and Premium
Content:
- Types of Shares: Ordinary shares, preference shares, and redeemable shares.
- Issuing Shares: The process of offering shares to the public or private investors.
- Issue of Shares at Par, Discount, and Premium:
- At Par: When shares are issued at their nominal value.
- At Discount: When shares are issued below their nominal value.
- At Premium: When shares are issued above their nominal value.
Examples:
- Ordinary Shares: A company issues 100,000 shares at $1 each.
- Preference Shares: Shares offering fixed dividends, paid before ordinary shares.
- Issue at Par: A company issues 1,000 shares at a nominal value of $10.
- Issue at Discount: A company issues shares worth $10 each at $8 to attract investors.
- Issue at Premium: A company issues shares at $15 each when the nominal value is $10.
- Distinction Example: The difference between shares at par and at a discount is based on the market’s perception of the company’s value.
Week 8: Preparation of Accounts for Issue of Shares at Par, Discount, Premium, Bonus Shares, Right Issues
Content:
- Issue of Shares: The process of preparing financial accounts for different types of share issues.
- Bonus Shares and Right Issues:
- Bonus Shares: Free shares given to existing shareholders, often to reward them for their investment.
- Right Issues: Existing shareholders are given the right to buy additional shares at a discounted price.
Examples:
- Preparing a company’s balance sheet after issuing shares at par, discount, or premium.
- Bonus Shares Example: A company gives 1 free share for every 5 shares owned.
- Right Issues Example: A company offers its shareholders the chance to buy additional shares at a lower price.
Week 9: Loan Capital – Debenture Type, Distinction Between Shares and Debentures
Content:
- Loan Capital: Borrowed funds that must be repaid, such as debentures.
- Distinction Between Shares and Debentures:
- Shares: Represent ownership in a company.
- Debentures: Represent debt and are a form of loan capital.
Examples:
- Debenture Example: A company raises capital by issuing debentures worth $1 million.
- Difference between shares (ownership) and debentures (loan).
Week 10: Capital Market – Requirements for Enlisting in the Capital Market, Second-Tier Security Market
Content:
- Capital Market: A market for long-term securities.
- Second-Tier Security Market: A secondary market for trading securities.
- Advantages of Capital Market: It provides a way for individuals, investors, government, and the economy to grow.
Examples:
- A company lists its shares on the capital market to raise funds.
- The benefits of the capital market for individual investors.
- Government bonds as an investment tool.
Week 11: Revision & Exams
Content: A final week of review before exams, revisiting key topics and reinforcing the understanding of the entire second-term syllabus.
Conclusion
This detailed guide for the SS 2 Scheme of Work for the second term in Business Studies has provided a structured overview of each week’s content and topic. Each subject is explained clearly, with practical examples to ensure that students understand the material. With these explanations and insights, students will be well-prepared to excel in their exams and develop a solid understanding of business concepts.
