Lesson 1&2 Flashcards
Kind of Business
Commerce, Industry and Services
Business firms which are engaged in the buying and selling goods and services are classified
Commerce
this kind of business are supermarket, dry goods stores, peddlers, sari-sari stores, importers, and many others.
Commerce
which an mainly concerned with production.
Industry
Industry may be further classified into the following:
Genetic Industries
Extractive Industries
Manufacturing Industries
Construction Industries
this businesses involved in agriculture,
forestry, and fish culture.
Genetic Industries
businesses involved in the extraction of goods from natural resources which include mining, lumbering, hunting, and fishing.
Extractive Industries
which convert raw materials into finished products. (Examples of these are firms engaged in the drugs, plastics, food, liquor, footwear, motor cars, tools, office supplies, household appliances, and many others.)
Manufacturing Industries
consist of firms engaged in building infrastructures like airports, seaports, dams, and highways.
Construction Industries
this business is one which sells services to buyers.
Services
refers to discovery and exploration of a business opportunity with the purpose of converting it into a going concern.
Business Promotion
the multiple objectives of business are:
(1)the provision of products and services to the. community;
(2) the satisfaction of personal objectives;
(3) the protection and enhancement of the human and physical resources of society; and
(4) economy and effectiveness of operation.
lawful organization that seeks profit by providing needed goods and services.
Business
is the person responsible for the formation of a
company. He sees the opportunity for a new business; interests other people in it; makes the business’ blueprint; arranges for the initial funds, labor, and skills required; and sets the business going.
Promoter
they are those whose main occupation is business promotion;
Professional promoter
they are persons who perform promotion activities occasionally;
Side-line promoter
they are banking institutions which provide business promotion services to their clients;
Banking promoter
they consist of investment houses engaged in the promotion of certain business ventures through the sale of securities;
Financial Promoter
they are those engaged in the development of new subdivisions.
Subdivision promoter
The promoter undertakes to pursue his job with the capacity of a temporary trustee. He cannot legally bind the firm into contracts and deeds unless approved by the owners or the board of directors.
Liability of promoters
The entrepreneur functions are:
- to supply the capital of the firm;
- to organize production by buying and combining inputs;
- to decide on the rate of output in the light of his
expectations about demand; and to bear the risk involved in these activities
To engage in business, the options are:
(1) to buy an existing business; and
(2) to create a new business
Objectives of Business
- political influence;
- family control of the business; and
- community involvement.
organize of the business
- provision of employment to people
- profit
- service to the community
- personal satisfaction
- means to earn a living
- achievements of power
- protection of oneself and family
