CHAPTER 1.
- The economy of Philippine is the
World’s largest by 34 Nominal GDP
- It I the 13th largest in Asia and the 3rd
largest in the ASEAN.
- Southeast sixth (6th) richest per capital
values
- Newly industrialized country
- $1.980 trillion purchasing power
- 6.5% higher GDP growth
GNP – Defined as the total market value of
goods and services produced by a country in
any given period, (Usually, quarterly, Semi
Annually, Annually)
WORKERS – Wages and Incentives
OWNERS OR STOCKHOLDERS – Dividend
MANAGEMENT – Professional enumeration &
Profit participation
CUSTOMERS & CLIENTS – Reasonable prices /
quality of goods and services
ECONOMICS – Study of how a society produces
and distribute its desired goods and services. It
deals with how society uses its resources to produce
goods and services.
THE RESOURCE ARE CALLED FACTOR OF
PRODUCTION
LAND – All natural resources (Materials)
LABOR – Physical and Mental output of the people
who produce the goods and services (Manpower)
CAPITAL – Amount he used to provide good and
services (Money)
ENTREPRENEUR – Buys and organize these
three factors of production to be able to gain profit.
(Management skills)
REASON WHY PEOPLE ENGAGE IN
BUSINES
1. Want to earn profit
2. Serve the community
3. Achieve his goals and motives
ABRAHAM W. MASLOW – Motivational factors
postulated ABRAHAM W. MASLOW (Maslows
Hierarchy of needs)
FIVE (5) NEED OF MEN that are to be
SATIFIED CONTINUALLY in the following
order:
1. PHYSIOLOGICAL OR BIOLOGICAL NEEDS
(PROFIT)
- Need for foods, clothing, shelter etc.
2. SAFETY NEED (PROTECTION)
- Desire for security, stability, against danger
3. SOCIAL NEED (POPULARITY)
- Need for group belongingness, affection, love and
friendship
4. EGO OR SELF-ESTEEM (PRESTIGE)
- Need for self-recognition or group satisfaction
5. SELF FULFILLMENT OR SELF
ACTUALIZATION (POWER)
- Need for the realization of personal goal or
ambition.
BUSINESS – Is any lawful activity concerned with
the production and for distribution of goods or
service for profit. Profit is the difference between
the income the entrepreneur receive from the sales
of goods and services and the expense he incurs to
produce them
FIVE (5) PHASES OF BUSINES
DEVELOPMENT IN THE PHILIPPINES
1. HUNTING AND FISHING PHASE
- Obtained food by hunting and fishing taken
directly from mountains, seas and bounties of nature
2. PASTORAL PHASE
- The creation of groups and the presence of a large
number of livestock have made us settle in an area
for a longer period of time
3. HANDICRAFT PHASE
- Items or objects were made by skilled and manual
laborers, sculptures, tapestries, jewelries, musical
instrument, furniture and etc.
4. AGCULTURAL PHASE
- Man needs of a continuous supply of food led to
the development of agriculture and the concept of
land ownership
5. INDUSTRIAL PHASE
- Presence of manufacturing companies in certain
areas like manila
CHAPTER 2
BUSINESS are consist of three main
divisions: COMMERCE, INDUSTRY AND
SERVIICES
1. COMMERCE – Engage in the buying and
selling of services and goods.
EX. Supermarkets, Dry goods, Peddlers, Sari-
sari stores
2. INDUSTRY – Mainly concerned with
Production
CONSUMERS GOODS – Good produced are
those which maybe intended for ultimate
consumption
PRODUCERS GOODS – Intended for use of
business and industry
INDUSTRY MAY BE CLASSIFIED INTO
THE FOLLOWING:
A. GENETIC INDUSTRIES – Involved in
agriculture, forestry, and forest culture.
B. EXTRACTIVE INDUSTRIES – Extraction
of goods from natural resources (Mining,
lumbering, hunting, fishing)
C. MANUFACTURING INDUSTRIES –
Convert raw material into finished good.
D. CONSTRUCTION INDUSTRIES –
Engaged in building infrastructure (Airport,
Seaports, Dam, Highways, houses)
3. SERVICES – Sell services to the buyers
A. RECREATION – Movie house, televisions,
Radio station, and the likes.
B. PERSONAL – Restaurant, Barber shops,
Transportations, Hotels, Tailoring shops.
C. FINANCE – Banks, Insurance Companies,
Investment houses, Financing institution, Credit
unions.
OBJECTIVES OF BUSINESS
1. Political Influence
2. Family Control
3. Community involvement
BUSINESS FIRMS MUST ATTAIN THE
FOLLOWING OBJECTIVES:
1. Provisions of products and services to the
community
2. Satisfaction of personal objectives
3. Protection and enhancement of the human
and physical resource of society
4. Economy and effectiveness of operation
KINDS OF ECONOMIC SYSTEM
1. CAPITALISM – Production are owned and
operated by private individuals.
2. SOCIALISM – Ownership of production
and capital are owned and operated by the
government and the regulation of society as a
whole.
3. COMMUNISM – Collective ownership by
the government of consumption of goods and
productions of goods way of organizing the
productive forces of society.
LEGAL FORMS OF BUSINESS
OWNERSHIP
1. SOLE PROPRIETORSHIP – Organized
and managed by one person.
2. PARTNERSHIP – Two or more person
contribute money, property or talent to carry on
a business.
3. CORPORATION – An artificial being
created by the operation of law having the right
of succession and the powers.
OTHER FORMS OF BUSINESS
OWNERSHIP
1. LIMITED LIABILITY COMPANY –
Hybrid form of business that has the
characteristics of both corporation and
partnership.
2. COOPERATIVE – Owned by group of
individuals and is operated by their mutual
benefit.
3. SUBCHAPTER S CORPORATION –
Treat the earnings and profit a distribution
4. JOINT VENTURE – Acts like general
partnership, but I clearly limited period of time
or a single project.