L1; The Nature and Forms of Business Organizations Flashcards
an organization or entrepreneurial entity engaging in commercial, industrial, or professional activity.
Business
Businesses can be?
for-profit or non-profit enterprises
business dedicated to a charity goal or a social cause.
non-profit enterprises
is a system of moral principles
Ethics
it governs how people make decisions and lead their lives.
Ethics
the study of proper company rules and procedures on potentially contentious matters such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility, and fiduciary responsibilities is referred to as?
business ethics.
what are the potentially contentious matters
(enumerate)
- corporate governance,
- insider trading,
- bribery,
- discrimination,
- corporate social responsibility, and
- fiduciary responsibilities
is a type of self-regulation of a business that aims to contribute to societal goals in the best interests of the environment and society as a whole.
Social Responsibility
what is the aim of Social Responsibility
aims to
- contribute to societal goals in the best interests of the environment and society as a whole.
FORMS OF BUSINESS ORGANIZATIONS
(enumerate)
- SOLE PROPRIETORSHIP
- PARTNERSHIP
- CORPORATION
- COOPERATIVE
one person; the simplest, and the most common form of business organization own a form of business.
SOLE PROPRIETORSHIP
this form of business is not separate from the owner.
SOLE PROPRIETORSHIP
The business and the owner are inseparable.
SOLE PROPRIETORSHIP
what do you call the owner in a sole proprietorship?
proprietor/proprietress.
a form of business owned by two or more persons.
PARTNERSHIP
The details of the arrangement between the partners are outlined in a written document called
articles of partnership
what happens to the profit in a partnership?
Profits are divided among partners based on their agreed sharing.
The owner of a partnership is called a?
partner
an enterprise chartered by law with most of the legal rights of a person including to conduct a business, own and sell property, borrow money, sue, and be sued.
CORPORATION
Corporations are chartered by law with most of the legal rights of a person which includes?
(enumerate)
- to conduct a business,
- own and sell property,
- borrow money,
- sue, and
- be sued.
is a business organization that has a separate legal personality from its owners.
CORPORATION
What represents ownership in a (stock) corporation?
Shares of stock represent ownership in a stock corporation.
is a duly registered association of persons with a common bond of, voluntarily joining to achieve their social, economic, and cultural needs.
COOPERATIVE
How many people manage a cooperative?
There are 15 persons or more managing it.
The owners of a cooperative are called?
members who contribute equitably to the capital of the cooperative.
To know the nature of a business, one has to determine what?
one has to determine what kind of business it is and what is the main product or service it delivers.
TYPES OF BUSINESSES
(enumerate)
- Service Business
- Merchandising Business
- Manufacturing Business
- Hybrid Business
services are also called?
intangible products
give examples of professional skills
law firms, accounting firms, schools
give examples of technical skills
repairs shops, salons
it provides services also called intangible products. These products may be in the form of professional skills or technical skills.
Service Business
In the service type of business, products may be in the form of?
professional skills or technical skills.
it is also known as a “buy and sell” business
Merchandising Business
Products are not changed.
Merchandising Business
it buys raw materials, combines them with labor, and transforms them into finished goods.
(raw materials + labor = finished goods)
Manufacturing Business
They gain profit by placing an additional cost on materials, labor, and factory overhead.
Manufacturing Business
most businesses today are of this type.
Hybrid Business
They combine being a manufacturer of a good and sell it either on a wholesale or retail basis or a service provider that manufacturers its needed products for the provision of its service.
Hybrid Business
Examples of this are restaurants, salons, computer shops, and other related businesses.
Hybrid Business
TWO PERSPECTIVES OF BUSINESS
(enumerate)
- Individual perspective
- Social perspective
businesses exist to provide income, the satisfaction of needs and wants that provide prestige and power to the person, specifically to gain profit for the continuous exchange of goods and services for money.
Individual perspective
efficient production of goods and services is meant to sustain the society and environment through the economics of production, and consumption of goods and services because men and society cannot exist without the basic necessity of life.
Social perspective
