Lesson 1

Question 1

an organization or entrepreneurial entity engaging in commercial, industrial, or professional activity.

Answer 1

Business

Question 2

Businesses can be for-profit or non-profit enterprises dedicated to a charity goal or a social cause.

Answer 2

Business

Question 3

is a system of moral principles that govern how people make decisions and lead their lives.

Answer 3

Ethics

Question 4

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.

Answer 4

Business Ethics

Question 5

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.

Answer 5

Social Responsibility

Question 6

FORMS OF BUSINESS ORGANIZATIONS

Answer 6

1. Sole Proprietorship
2. Partnership
3. Corporation
4. Cooperative

Question 7

one person; the simplest, and the most common form of business organization owns a form of business.

Answer 7

Sole Proprietorship

Question 8

It is not separate from the owner.

Answer 8

Sole Proprietorship

Question 9

The business and the owner are inseparable. The owner is called a proprietor/ proprietress.

Answer 9

Sole Proprietorship

Question 10

a form of business owned by two or more persons.

Answer 10

Partnership

Question 11

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.

Answer 11

Partnership

Question 12

The owner is called a partner.

Answer 12

Partnership

Question 13

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.

Answer 13

Corporation

Question 14

is a business organization that has a separate legal personality from its owners. Shares of stock represent ownership in a stock corporation.

Answer 14

Corporation

Question 15

is a duly registered association of persons with a common bond of, voluntarily joining to achieve their social, economic, and cultural needs.

Answer 15

Cooperative

Question 16

There are15 persons or more managing it. The owners are called members who contribute equitably to the capital of the cooperative.

Answer 16

Cooperative

Question 17

TYPES OF BUSINESSES

Answer 17

1. Service Business
2. Merchandising Business
3. Manufacturing Business
4. Hybrid Business

Question 18

it provides services also called intangible products.

Answer 18

Service Business

Question 19

These products may be in the form of professional skills (law firms, accounting firms, schools) or technical skills (repairs shops, salons).

Answer 19

Service Business

Question 20

it is also known as a “buy and sell” business. Products are not changed.

Answer 20

Merchandising Business

Question 21

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.

Answer 21

Manufacturing Business

Question 22

most businesses today are of this type.

Answer 22

Hybrid Business

Question 23

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.

Answer 23

Hybrid Business

Question 24

TWO PERSPECTIVES OF BUSINESS

Answer 24

• Individual Perspective
• Social Perspective

Question 25

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.

Answer 25

Individual Perspective

Question 26

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.

Answer 26

Social Perspective