Lesson 1 Flashcards
an organization or entrepreneurial entity engaging in commercial, industrial,
or professional activity.
Business
Businesses can be for-________ or _______enterprises dedicated to
a charity goal or a social cause.
profit or non-profit
is a system of moral principles that govern 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
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
Forms of Business Organizations
-Sole proprietorship
-Partnership
-Corporation
-Cooperative
one person; the simplest, and the most common form of
business organization own a form of business. It is not separate from the owner. The
business and the owner are inseparable.
Sole Properietorship
In a sole proprietorship The owner is called a
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
PARTNERSHIP – a form of business owned by two or more persons. The details of
the arrangement between the partners are outlined in a written document called
articles of partnership. Profits are divided among partners based on their agreed
sharing. The owner 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
is a business organization that has a separate legal
personality from its owners.
Corporation
represent ownership in a stock
corporation.
Shares of stock
is a duly registered association of persons with a common bond
of, voluntarily joining to achieve their social, economic, and cultural needs.
Cooperative
COOPERATIVE – is a duly registered association of persons with a common bond
of, voluntarily joining to achieve their social, economic, and cultural needs. There
are __ persons or more managing it.
15 ppersons
The owners are called _____ who
contribute equitably to the capital of the cooperative.
members
Type of businesses
- Service business
- Merchandising Business
- Manufacturing business
- Hybrid Business
it provides services also called intangible products. These
products may be in the form of professional skills (law firms, accounting firms,
schools) or technical skills (repairs shops, salons).
Service business
– it is also known as a “buy and sell” business. Products are
not changed.
Merchandising Business
it buys raw materials, combines them with labor, and
transforms them into finished goods. They gain profit by placing an additional cost
on materials, labor, and factory overhead.
Manufacturing Business
most businesses today are of this type. 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
Example of Hybrid Business
restaurants, salons, computer shops, and other related
businesses.
Two perspective of business
- 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
