Lesson 1 Flashcards
an organization or entrepreneurial entity engaging in commercial, industrial, or professional activity.
Business
Businesses can be for-profit or non-profit enterprises dedicated to a charity goal or a social cause.
Business
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.
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 owns a form of business.
Sole Proprietorship
It is not separate from the owner.
Sole Proprietorship
The business and the owner are inseparable. The owner is called a proprietor/ proprietress.
Sole Proprietorship
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. Profits are divided among partners based on their agreed sharing.
Partnership
The owner is called a partner.
Partnership
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. Shares of stock represent ownership in a stock corporation.
Corporation
is a duly registered association of persons with a common bond of, voluntarily joining to achieve their social, economic, and cultural needs.
Cooperative
There are15 persons or more managing it. The owners are called members who contribute equitably to the capital of the cooperative.
Cooperative
TYPES OF BUSINESSES
- Service Business
- Merchandising Business
- Manufacturing Business
- Hybrid Business
it provides services also called intangible products.
Service Business
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.
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. Examples of this are restaurants, salons, computer shops, and other related businesses.
Hybrid Business
TWO PERSPECTIVES OF BUSINESS
• Individual Perspective
• Social Perspective
