#2.3 : Socioeconomic Impact & Starting a Business Flashcards
They determine what kinds of products and services to be produced.
Consumers
Products and services are developed by identifying what customers needs and also by their __________ with existing products and services.
feedback
Consumers’ consumption creates ___________ _______.
additional jobs.
They contribute to consumption through the act of buying goods and services.
Households
Economic resources that households bring to firms
land, labor, capital, and entrepreneurship
Savings in the banks are sources of ___________.
investment
The level of wealth, comfort, and material goods available to an individual, community, or social class in a certain geographic area.
Standard of Living
As one’s income and productivity increase, their _________ _______ change,
consumption patterns
The quality and quantity of consumption are determined by the _______ ___ _____ and _______ by firms.
delivery of goods and services
They are the sources of raw materials used in producing goods/services.
Suppliers
3 stages of goods/services
Raw material goods, intermediate goods, and final goods
Difference of raw material and intermediate goods
Raw material goods are materials for the product that has no process done. While, intermediate goods is when the raw material is semi-processed to use for the final good.
Entities that act as financial sources of businesses with the intention of gaining profits.
Investors
The initial capital or money a business needs to facilitate its costs. ; It is used to put up a business.
Start-up capital
It is used for the expansion of the business, adding to the size of the factory, buying more equipment, or adding laborers.
Add-up Capital
Difference of Foreign Portfolio Investment and Foreign Direct Investment
FOREIGN PORTFOLIO INVESTMENT - When foreign entities invest in local companies
FOREIGN DIRECT INVESTMENT - When foreign businesses operate in local or domestic markets.
How do businesses influence suppliers and investors?
As a producer, a franchise holder, and an exclusive distributor, a firm can manipulate its suppliers because the supplier’s profit is dependent on the firm’s output.
They provide basic social services to its citizens like health services, free education, and security
Government
The government’s process of collecting fees from individuals and businesses
Taxation
THE STATE’S INHERENT POWERS
Power of Taxation, Police Power, and Eminent Domain
It is to impose & collect revenues to defray the necessary government expenditures.
Power of Taxation
These are government projects funded and operated by private firms or entities. In exchange, the government guarantees that the private counterpart gets the value of its investment plus a reasonable interest.
PUBLIC-PRIVATE PARTNERSHIPS (PPP)
Why do businesses partner with the government?
- As a source of tax revenue
- Poverty alleviation
- Provision of services
It is the field of study which examines how economic activity and social processes affect each other.
SOCIOECONOMICS
It is a type of systematic analysis used to identify and evaluate the potential effects a proposed development may have on the social and economic aspects of the lives of the members of a community.
SOCIOECONOMIC IMPACT STUDY
The SI should seek to address known ________.
problems
The researcher must gather as much ________ ________ on the topic as possible.
related literature (RRL)
The study should be within the boundaries of socioeconomic issues with a solid _________ _________.
theoretical framework
There should be identified _________ & __________ variables
independent & dependent
The study’s scope should neither be too broad that its _______ can no longer be achieved.
objectives
The study’s scope nor should its limitations be too narrow such that it is no longer _______.
viable
An entity engaged in commerce and trade, usually having a profit motive
BUSINESS
The people who conceptualized the firm are not synonymous with it. The entities are ________ of one another.
independent
One who combines the primary factors of production (land, labor, capital)
Entrepreneur
1st step in starting a business
Identifying the type of business
2nd step in starting a business
Getting the initial capitalization
3rd step in starting a business
Selecting the initial capitalization
4th step in starting a business
Directing operations and managemnet
Last step in starting a business
Getting profits (long-run and short-run adjustments) and losses (shutdown/graceful exit)
5 functions of management
planning, organizing, staffing, drafting/leading, and controlling
