Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
1766 - 1834
In the last third of the eighteenth century two great problems occupied the attention of most
thinking people in England: one was widespread poverty; the other was how many Englishmen there
were. Socialists called attention to the poverty problem with a promise of a Utopian world – a paradise –
in which all would be well. The population problem had prompted Adam Smith to remark in his Wealth
of Nation (1776) that “No society can surely be flourishing and happy, of which the far greater part of
the members are poor and miserable.”
Were England’s resources adequate to bring about a fulfillment of the socialists’ dreams? A
hitherto unknown English clergyman, Thomas Robert Malthus, thought not in 1798
he published a treatise of fifty thousand words entitled An Essay on the Principle of Population, as
it affects the Future Improvement of Society. The essay was based on his observations and travel
in various countries. From these he expounded his famous rule that “population, when unchecked, goes
on doubling every twenty – five years or increase in a geometric ratio.” but the means of subsistence can
only increase in an arithmetic ratio.
Malthus became a professor of history, and published a revision of his essay in 1803. In this he
moderated his rigid “formula” and spoke more of a tendency of population to outrun the supply of food.
Human beings he concluded were destined to misery and poverty unless the rate of population growth is
retarded either by: (1) preventive checks such as moral restraint, late marriages, and celibacy or if these
fail then by (2) positive checks such as wars, famine, and disease.
Malthus and his population theory were severely criticized by people in nearly every walk of life
– politicians, clergymen, philosophers, and journalists – all of who raised cries of heresy. Some, like the
Quarterly Review (July, 1987), admitted that it was easier simply “to disbelieve Mr. Malthus than to
refute him.” And some, notably Ricardo and other classical economists, made Malthus’ s theory the basis
o their own theories o wages and rent.
The generalizations expressed by Malthus have been recognized by governments throughout the
world, and by the United Nations in its efforts to assist the overpopulated, underdeveloped countries.
Although there may be a tendency to dismiss the gloomy forebodings of the Malthusian theory, its
warnings cannot be pushed aside. They are a stark reality or millions of people in many nations today.
In addition to his population theory, Malthus made outstanding contributions to economics,
notably in his Principles of Political Economy (1820). He was an intimate friend of David Ricardo,
and it is impossible to disassociate their economic views, even though the two men were often in
substantial disagreement. For one thing, Ricardo was as incapable of grasping the pragmatic and
empirical approach of Malthus, as Malthus was incapable of appreciating the rigor and subtle deductive
reasoning of Ricardo.
Among the notable contributions that Malthus made to economic thought was the concept of
“effective demand,” which he defined as the level of aggregate demand necessary to maintain continuous
production. More than a century was to pass before the problem of effective demand would rise again to
public notice: In this General Theory, John Maynard Keynes paid tribute to the pioneering work of
Malthus on his subject.
The second and third solutions, in varying degrees, have occurred and are continuing to occur in the
economic development of some of today’s advanced nations. The third approach, that of raising the
subsistence level to an aspiration level, is based on a fascinating assumption – one which suggest a
connection between population growth and living standards that may be applicable to the over populated,
underdeveloped countries. It can be called – facetiously – the hot – baths hypothesis:
There may be significant relationship between fecundity and “hot bath.” That is, once a society
reaches a certain minimum level of living at which it has reasonable creature comforts of life – i.e.,
adequate food, clothing, housing, sanitation, etc. – its desire for more and better material things as
measured by its aspiration level continually rises. If this is true, the society’s population will tend
automatically to seek its economically optimum size, provided its living conditions can first be brought
(probably with outside help from other nations) to this minimum
threshold level.
The subsistence theory of wages in the classical model of a stationary state implies the existence of a
subsistence theory of profits as well.
For example, the model of population growth which was developed in exhibits 3 may be adopted
to serve as a model o the growth o nonhuman capital including buildings, machines, inventories, etc. This
can be doe by measuring the rate of interest along the vertical axis and the total stock of capital along the
horizontal. For simplicity, we may ignore the existence of risk, so that the rate of interest is the same as
the rate of profit. (Can you explain why?). The curve LL is the profit curve of capital, which result from
applying different amounts capital to a fixed quantity of other resources.
When looked at in this way, the model indicates the capital is accumulated in anticipation of
future interest returns or profits. Thus when the stock of capital in the economy is relatively low, the
anticipated return on capital is high, thereby encouraging further accumulation. As capital is accumulated,
however, the law of diminishing returns eventually sets in. If we suppose that OS represents the
“subsistence rate” of profits, capital accumulation will proceed to OM.
John Stuart Mill Was an eminent philosopher and social scientist, and the leading economist of the mid –
nineteenth century. In many ways, he was one of the most unusual men who ever lived.
Any discussion of Mill must make mention of his remarkable education, based on the experience
reported in his famous Autobiography. He was the son of James Mill was also an intimate friend of
David Ricardo and of the great utilitarian philosopher Jeremy Bentham. This intellectual background
exercised a profound influence on the younger Mill, who was educated at home by his father.
Thus, at the age of three, before most children can even recite the alphabet, John Stuart was
reading English fluently and began the study of Greek. By the time he was seven, he had read the
dialogue of Plato, the great books of the ancient Greek historians Herodotus and Xenophon, the
philosophical writings of Diogenes, and most of the nearly eighty works of the second century Greek
prose writer Lucian. At the age of eight he took up the study of Latin. Before he was twelve years old, he
had already digested, among other things, the major writings of Aristotle, Aristophanes, Horace,
Lucretius, Sallust, and Socrates; made a comprehensive survey of algebra, calculus, and geometry;
embarked on a serious study of logic through the writings of the early seventeenth – century British
philosopher Thomas Hobbes; and written, in addition to some verses, a “history of Holland,” and the
“Abridged Ancient Universal History.”
At the age of thirteen, his father to the books of Smith, Ricardo, and Malthus introduced John
Stuart. Thus began his education political economy – an education that eventually established him as one
of the abler critics of classical economic liberalism. For although Mill as an economist is considered a
member of the classical school, he actually repudiated some of its most basic premises. In contrast to
Smith, for example, he did not believe that laissez – fair led to the best of all possible worlds. Instead he
advocated social reforms. These included the taxation and redistribution of wealth, a shorter working
day, abolition of the wage system, and the establishment of democratic producers’ cooperatives in which
the workers would own the factories and elect the managers to run them. It should be emphasized,
however, that Mill believed too strongly in individual freedom ever to go far as a socialist. He distrusted
the power of the state, and his reason for favoring producers’ cooperatives was not to exalt the laboring
class, but to assure the individual worker the fruits of his labor.
Mills’ chief contribution to economics was his collection and systemization of its literature. His
major two – volume work, the Principles of Political Economy, published in 1848, was considered to
be a masterful synthesis of post – Ricardian economic writings. The book offered a calm prescription for
peaceful progress and served as a standard text in economics for several decades. It is a noteworthy
coincidence that in the same year, an incendiary pamphlet entitled the Communist Manifesto was
published by a then relatively unknown prophet of socialism, Karl Marx, whose ideas ultimately shook
the world.
As for Mill himself, few individuals were ever held in higher esteem. Like the great and beloved
Greek philosopher Plato of some 2,200 years earlier, Mill was selfless man with a gentle, kind and
reasonable manner that endeared him to every one. He was regarded with the deepest affection and
respect indeed, he was regarded with the deepest affection and respect indeed, and he was almost
worshiped – by his contemporaries throughout the world. And like Plato, when he died an entire nation
mourned his passing. .
It is custody among economists to refer to an increase in the stock of capital relative to other
resources, especially labor, as capital deepening. What are the effects of such a deepening, assuming that
there are no changes in techniques? Clearly, with the operation of the inexorable law of diminishing
returns, the interest or profit rate on capital must decline, while the real wages o labor must rise as this
resource becomes more and more scarce relative to the growing stock o capital.
CONCLUSION: THE CLASSICAL VIEW OF GROWTH
What are the long – Run Trends?
What factors that Determine Economic Growth?
QUANTITY AND QUALITY OF HUMAN RESOURCES
QUANTITY AND QUALITY OF “NATURAL” RESOURCES
ACCUMULATION OF CAPITAL
SPECIALIZATION AND SCALE OF PRODUCTION
RATE OF TECHNOLOGICAL PROGRESS
ENVIRONMENTAL FACTORS
CONCLUSION: THE PROBLEM OF MEASUREMENT
A SIMPLE GROWTH MODEL
THE CAPITAL – OUTPUT RATIO
Investment and the Growth of Capacity at full Employment
FULL EMPLOYMENT GROWTH RATE
The Full Employment Rate of Economic Growth
SUMMARY OF IMPORTANT IDEAS
FOR HOMEWORK AND DISCUSSION
COST OF PRODUCTION
These were the words with which the great English economist JEVONS introduced his major work
in economics; a book entitled Theory of Political Economy
JEVONS is one of the towering figures in the development of economic thought. He made many
significant contributions to value and distribution theory, capital theory, and to statistical research
in economics. But he is perhaps best known as a leading contributor to marginal utility analysis.
In one of the key passages of his book, he points out that exchange between two individuals will
cease when “ the ratio of exchange o any two commodities is … the reciprocal o the ratio of the
final degrees of utility of the quantities of commodity available or consumption,” which is just a
clumsy way of saying that in equilibrium marginal utilities will be proportionate to prices.
JEVONS was educated in England; he majored in chemistry and the natural sciences, but
maintained a strong interest in philosophy, science, logic, mathematics, and political economy. He
served as a professor at Owens College. His main work, however, was Theory of Political
Economy, mentioned above, in which he made clear his desire to develop economics as a
mathematical science.
“It is clear that Economics, if it is to be a science at all, must be a mathematical science. There
exists much prejudice against attempts to introduce the methods and language of mathematics into
any branch of the moral sciences. Many persons seem to think that the physical sciences form the
proper sphere o mathematical method, and that the moral sciences demand some other method – I
know not what. My theory of Economics, however, is purely mathematical in character. Nay,
believing that the quantities with which we deal must be subject to continuous variation. I do not
hesitate to use the appropriate branch of mathematical science , involving though it does the
fearless consideration of infinitely small quantities. The theory consists in applying the differential
calculus to the familiar notions of wealth, utility, value, demand, supply, capital, interest , labor and
all the other quantitative notions belonging to the daily operations of industry.
JEVONS also did pioneering work in statistics and business forecasting. He formulated statistical
correlations and forecasts of business and economic data which he sold to businessman.
THORSTEIN BUNDE VEBLEN
1857- L929
The Great Iconoclast-Institutionalist
Historically, Veblen was part of what is known as the institutionalist school of economic thought.
He believed that human behavior could best be understood in terms of the practices and customs of
society, its methods of doing things, and its ways of thinking about things, all of which composed
“settled habits of thought common to the generality of men”. These habits become institutions-
deeply ingrained patterns of thought and action on which
All material civilization is built.
Institutions are not permanent. They unfold and grow into new patterns o change. In this sense,
socioeconomic behavior is more evolutionary and dynamic than it is mechanistic-more like biology
than physics-because it is devoid of the natural, normal, controlling principles that are found in the
writing of marginal utility theorists and other classical economist
The Theory of Leisure Class is often required reading even today for students taking courses in
sociology. In this book he coined a famous phrase, conspicuous consumption, by which he meant
the tendency of those above the subsistence level, i.e. the leisure class, to be mainly concerned with
impressing others through standards of living, taste, and dress- that is, through what he called
”pecuniary emulation”- which is the hallmark of society. This Veblen argued, was a “commonly
observed pattern of behavior” which was contrary to marginal utility theory, for it could clearly
could imply that people may sometimes buy more of a good at higher prices than at lower prices in
order to impress others.
1818-1883
If it is true that a man is ultimately judged by the influence of his ideas, then Karl Marx surely
ranks as one of the most important individuals who ever lived. For his thoughts have
shaped the policies of nations and have affected the lives of millions of people.
During the 1840’s while Marx was still in his twenties, he spent short period in Germany, France
and Britain, always one step ahead of the police who continually sought to expel him because of his
incendiary articles in newspapers and other periodicals extolling communism and revolution, and
his attacks against religion and utopian socialism. “ Religion,” he once wrote in a quotation that
has since become famous,” is the sight of the oppressed creature,… the opium of the people
Ecology is concerned with the management of the household of nature, whereas economics deals
with the management of the household of man. Both disciplines have certain features in common
including concepts of population, equilibrium, exchange, development and policy.
Economic growth has given us a rising standard of living, but it has also caused pollution.
However, it is not likely that a planned reduction in the rate of growth would be an acceptable
weapon in the war against pollution. A much more effective method would be for society to
evaluate the costs of using various parts of the environment, and to assign appropriate prices for
these resour5ces instead of making them available free.
The growth of population has also been a cause of pollution. However, the problem is much more
complex than population figures alone would indicate. Many ecologists point out that the level and
growth rate of population in Asia and Latin America are far higher than in the United States, yet
the average American as a consumer is a much greater burden on the total environment than the
average Asian of Latin
American.
Some people contend that the composition of GNP is a third cause of pollution because too few
public goods and too many private goods are produced. It is doubtful very much can be
accomplished by changing the composition, because: a) a large proportion of public goods consists
of material goods rather than just services; and) there is ample evidence that a free society is not
willing top sacrifice very much in the way of consumer goods in order to get more services.
MANAGEMENT ECONOMICS 2
ADVANCED MACROECONOMICS
The balance of payments is a statement of the money value of all transactions that take place
between a nation and the rest of the world during a given period. These transaction may consist of
imports and exports of goods and services, and movements of short-term and long-term
investments, gifts, currency, and gold; they may be classified for convenience into several
categories: current account, capital account, unilateral transfer account, and gold account.
Jim Rutledge had been impressive in his quest to land a sales job with Scientific Research Services
(SRS), a national firm specializing in consumer opinion surveys for the toy industry. Dave Ryan,
district sales manager for SRS, would be Rutledge’s immediate supervisor if he came to work for
SRS. Ryan had been one of six SRS executives to interview Rutledge, and like the others, he found
the candidate to be articulate, quick-witted, engaging, and immediately likable. On paper,
Rutledge also appeared to be an ideal candidate. He met or exceeded all of the stated job
qualifications regarding education and prior experience.
Among his qualifications, Rutledge had an undergraduate degree in marketing from Arizona State
University and three years’ sales experience with Mattel. He was nearing completion of an MBA
degree from Tulane University, which he had been pursuing on a part-time basis over the past
three years.
SRS has decided to offer Jim Rutledge n sales position. Dave Ryan has spoken with Rutledge on
the telephone and advised him that a formal offer letter was mailed earlier in the day. He verbally
outlined the offer to Rutledge, who seemed excited and agreed to accept the offer, pending receipt
of the written offer.
After getting off the phone with Rutledge, Ryan began calling the individuals that Rutledge had
listed as references. He called the company Rutledge had worked for prior to Mattel but did not
get much information. Basically, the contact confirmed Rutledge’s dates of employment and
indicated that Rutledge would receive positive consideration if he should reapply for a job with the
company. Next, he called a marketing professor at Arizona State University. When he reached the
marketing department, however, he was told that no such professor was now or had ever been on
the marketing faculty at the university.
Puzzled, Ryan called the next individual on the reference listing, Dr. Basin, head of the MBA
program at Tulane University. Dr. Baskin informed Ryan that he had no recollection of any
student by the name of Jim Rutledge, but he checked the enrollment records to be certain. Dr.
Baskin called Ryan back within the hour with the news – no student by the name of Jim Rutledge
had ever been a student at Tulane. Dave Ryan hung up the phone and began pondering his next
move.
QUESTIONS;
1. Explain the critical role of recruitment and selection in building and maintaining a
production salesforce. Recruitment and selection of salespeople can be an expensive
process, characterized by uncertainty and complicated by legal considerations. If the
procedures are not properly conducted, a multitude of managerial problems can rise, the
worst of which being that salesforce performance is sub optimal. The sales manager is the
key person in the recruitment and selection process, although other managers in the hiring
firm may share responsibilities for staffing the salesforce.
2. Identify the key activities in planning and executing a program for salesforce recruitment
and selection. There are three steps in the process: planning, recruitment, and selection.
Planning consists of conducting job analysis, determining job qualifications, writing a job
description, setting objectives, and formulating a strategy. Recruitment involves locating
prospective job candidates from one or more sources within or outside the hiring firm. The
third step, selection, entails an evaluation of the candidates culminating in a hiring decision.
Major methods of evaluating candidates include resume and job-application analysis,
interviewing, testing, assessment centers, background investigation, and physical
examination.
3. Discuss the legal consideration in salesforce recruitment and selection. Every step of the
recruitment and selection process has the potential to illegally discriminate against some job
candidates.
4. Discuss the ethical concerns of salesforce recruitment and selection. Two primary ethical
concerns are 1) misrepresentation of the job to be filled and 2) utilizing stress interviews in
the selection stage.
5. Some special issues in recruitment and selection are 1) the increasing usage of part-time
salespeople, 2) the use of market bonuses, and 3) assisting cooperative channel members in
recruiting and selecting their salespeople.
6. Socialization, the process by which salespeople adjust to their jobs, begins when the hiring
firm first contacts the recruit. Two stages of socialization should be accomplished during
recruitment and selection: achieving realism and achieving congruence. Realism means
giving the recruit an accurate portrayal of the job. Congruence refers to the matching
process that should occur between the needs of the organization and the capabilities of the
recruit. If realism and congruence can be accomplished, future job satisfaction,
involvement, should be improved…
TRAINING OBJECTIVES:
General Approach:
- Developed standard method for performing each job
- Selected workers with appropriate abilities for each job
- Trained workers in standard method
- Supported workers by planning their work and eliminating interruptions
- Provided wage incentives to workers for increased output.
Contributions:
- Demonstrated the importance of compensation for performance
- Initiated the careful study of tasks and jobs
- Demonstrated the importance of personnel selection and training.
Criticisms:
- Did not appreciate the social context of work and higher needs of workers
- Did not acknowledge variance among individuals
- Tended to regard workers as uninformed and ignored their ideas and suggestions.
What managers do in practice must reflect and be modified by the contingencies and situations of
human factor they face.
There is no basic distinction made among managers, executives, administrators or supervisors. To
be sure, the environment of each may differ, the scope of authority held may vary, and the types of
problems dealt with may be considerably different. A person in a managerial role may also act as a
salesperson, engineer or financier. But the fact remains that, as managers, all who obtain results
by establishing an environment for effective and efficient performance with individuals operating
in groups undertake the same basic functions.
In all kinds of enterprises, whether business or non-business, the logical and social goals o all
managers must be surplus – by which it is meant that they must establish an environment in which
individuals, working together in groups, can accomplish purposes or objectives with the least
amount of such inputs as time, money, materials, and dissatisfaction, or in which they can achieve
as much as possible of a desired mission or objective with the resources available.
In 1993 the Bank of America reported in its publication, small business reporter. In the final
analysis 90% of the business failures are due to managerial incompetence and inexperience.
Strategies – general program of action and deployment of emphasis and resources to attain
comprehensive objectives, the program of objectives of an organization and their changes,
resources used to attain these objectives and policies governing.
Manager development concerns the means by which a person cultivates skill whose application
will improve the efficiency and effectiveness with which the anticipated results of a particular
segment are achieved.
A skilled manager makes wise decision, selective listening, attention to appropriate detail,
conceptualizing problems and analyzing them, seeing them in the total environment, encouraging
people to work with zeal, interpersonal cooperation, assessing the present and future, timing and
intuition are a few o them.
Economic enterprises are designed to produce goods and services to satisfy people’s materials
wants. Their manager’s responsibility is efficiency in the use of resources to produce economic
wealth. Second is to accomplish this purpose in such a way that no restriction is placed upon the
legal rights and interest of any person. Third is to observe by word and deed, the ethical standards
of society.
MOTIVATION
The primary task of managers is to get people to contribute activities, which help to achieve
the mission and goals of an enterprise or of any department or other organized unit within it.
2. Economic Growth alone will cure poverty, that a rising tide will lift all boats. Defying gravity,
recent economic tides have flowed uphill, primarily helping those who were already on top. There
is, therefore, a need for a deeper examination of the economic theory of the causes, and cures for
inequality. Comment.
3. GIVEN;
Q TFC TVC
0 75,000 0
1 75,000 50,000 REQUIRED;
2 75,000 75,000
3 75,000 85,000 1. Compute for
4 75,000 100,000 a. Total Cost or TC
5 75,000 125,000 b. Marginal Cost = MC
6 75,000 130,000 c. Average Fixed Cost = AFC
7 75,000 150,000 d. Average Variable Cost = AVC
8 75,000 165,000 e. Average Total Cost = ATC
9 75,000 185,000
10 75,000 200,000
11 75,000 220,000
12 75,000 240,000
13 75,000 270,000
14 75,000 290,000
15 75,000 300,000
Chapter 13 COMMERCIAL BANKS
A commercial bank derives its name from the fact that its business is confined largely to
transactions with businessmen and business firms. Loans made by commercial banks, as largely
indicated extend to short periods ranging from thirty to ninety days.
1. Depository function
2. Loan and discount function
3. Remittance and collection function
4. Trust or fiduciary function
5. Miscellaneous services
Bank deposit to refer only to an entry in the books of a bank recording its obligation to its
customer.
1. Money
2. Checks issued by banks
3. Items for collection from banks and others
4. Proceeds of loans and discounts left on deposit
5. Traveler’s checks
6. Drafts
7. Promissory notes
8. Money orders
Classification of deposits;
A. According to source of deposit. This includes from the private sector and from
the government sector
B. According to terms of withdrawal. This includes time deposit, savings deposit,
time certificates of deposit
1. The money being deposited in a bank is doubtless safe and moreover could be easily
transferred very conveniently by the depositor simply by writing checks.
2. Corollary to the first, monetary obligations could be easily discharged by checks.
3. The check stubs provide a convenient record of deposits, withdrawal, as well as, of
course bank balances.
4. A checking account helps to enhance one’s personal and business standing
For the benefit of depositors, Republic Act No. 1405 was enacted which expressly prohibits
banks from disclosing deposits made by an individual, partnership or corporation with them.
The law sets four conditions, which may allow banks to reveal deposits;
1. When the depositor himself in writing to the bank gives such authority.
2. If the deposit is brought up in impeachment cases.
3. If the money deposited is the subject of litigation
4. Upon order of a competent court, a bank deposit may be examined if the case
involves bribery, dereliction of duty or one that arises from violation of the anti-
graft and corrupt practices Act.
Presidential Decree.
Another important step taken for the benefit of bank depositors is that presidential
decree which amended the General Banking Act. It now reads in part;
No director or officer of any banking institution shall, either directly or indirectly, for
himself or the representative or agent of others, borrow any of the deposits of funds of such bank,
nor shall he become a guarantor, endorser, or surety for loans from such bank to others, or in any
manner be an obligor for money borrowed from the bank or loaned by it, except with the written
approval of the majority of the directors of the bank, excluding the director himself.
TYPES OF LOANS;
Demand loan is sometimes termed as call loan, since it is subject to the call of the bank,
as its option. Under the conditions of this loan, the bank exercises the right to call or collect the
loan obligation from the borrower anytime as need for it on the part of the bank may arise. As
such, the borrower is, legally and morally speaking, obligated to pay his loan when requested or
directed to do so.
Time loan. As the term suggest its meaning, there is a specific period of time in which
the loan would mature and therefore become due and payable. Time-loan may be of short duration
as in the case of short-term loan or it may be medium-term. In some cases it may cover a long
period of time ranging from ten years or upwards as when the loans are intended for
developmental purposes.
Secured or Unsecured loan. Loans, which the creditor company requires to be backed
up by collaterals. Such collaterals may be in the form of corporate securities like bonds and stocks,
instruments of ownership of commodities or manufactured goods, like for instance, bills of lading
and trust receipts.
The idea of having a clearinghouse originated in London, England in the year 1773.
In 1833, Albert Gallatin, a prominent banker of his time and able economist suggested to his
banking associates to establish a clearing house in New York similar to that one in England.
However, the idea did not come to realization till 20 years later, that is, in 1853.
In the Philippines, the first clearing house was established in Manila before the outbreak of
the first world war. This was known as the Manila Clearing House. With the enactment of
Republic Act Number 265 (Central Bank Act), the central Bank has provided for facilities for
interbank clearing and settlement under Section 107.
BANK HOLIDAY The term is used to refer to the declaration by the head of a state suspending all
bank transactions for a specified period. During such period, banks are closed for business.
The most well-known bank holiday within living memory occurred in the United States when on
March 6, l933 President Franklin D. Roosevelt ordered all banks closed in a proclamation he issued
under the powers of wartime act of October 6, l917, which authorized the President to regulate
transactions in foreign exchange and the export or hoarding of gold or silver coin bullion.
BANK RUN in its popular usage means that the bank has become insolvent to the extent that it
cannot meet its deposit obligations to its depositors. A bank run need not necessarily mean that
The bank is in an actual state of bankruptcy although this is the most common cause behind it.
Such a situation might have been brought about by poor bank management combined with fraud
and violation of banking laws generally classified under the heading internal causes.
CHAPTER 14 CENTRAL BANKING
A Central Bank is a financial institution vested by the state with the function of regulating the
supply, cost and use of money with a view to promoting national and international economic
stability and welfare.
The bank in any country to which has been entrusted the duty of regulating the volume of
currency and credit in that country.
Historical Background. As early as the year l939, or some ten years before the Central Bank
of the Philippines came into being, there was already a desire as well as an attempt to establish a
central bank in this country. During that time, while the Philippines was still a commonwealth a
Central Bank Act was passed by the National assembly – a unicameral law-making body of this
country
The Central Bank of the Philippines came into existence as a result of the approval by Pres.
Elpedio Quirino of Republic Act No 265, otherwise known as the Central Bank Act on June l5,
1948. However, actual operations id not commence until January 3, 1949 when the Bank opened its
doors for business in the old Intendencia Building located at Intramuros, Manila
Basic Objectives:
1. To maintain monetary stability in the Philippines;
2. To preserve the international value of the peso and the convertibility of the peso into
other freely convertible currencies
3. to promote the rising level of production, employment, and real income in the
Philippines.
1. Prepare and issue such rules and regulations, as it considers necessary for the
effective discharge of the responsibilities and exercise of the powers assigned to the
Monetary Board and to the Central Bank.
2. Direct the management, operations, and administration of the Central Bank and
prepare such rules and regulations as it may deem necessary or convenient for this
purpose;
3. On the recommendation of the governor, appoint, fix the remunerations, and remove
all officers and employees of the Central Bank, with the exception of the governor;
4. Authorize such expenditures by the Central Bank as are in the interest of the
effective administration operation of the bank.
TAXATION - the process or means by which the sovereign, through its law-making body, raises
income to defray the necessary expenses of the government. It is merely apportioning the cost of
government among those who in some measures are privileged to enjoin its benefits and, therefore,
must bear its burden.
Purpose of Taxation.
The primary purpose of taxation on the part of the government is to provide funds or
property with which to promote the general welfare and protection of its citizens.
TAXES - are enforced contribution from persons and property levied by the law-making body of
the state by virtue of its sovereignty for the support of the government and all public needs.
1. It is an enforced contribution.
2. It is generally payable in money
3. It is proportionate in character
4. It is levied on persons or property
5. It is levied by the state which has jurisdiction over the person or property
6. It is levied by the law-making body of the state.
7. It is levied for public purpose.
CLASSIFICATION OF TAXES
3. as to determination of amount
4. As to purpose:
6. As to graduation or rate;
Terms defined;
1. Toll has been defined as a sum of money for the use of something, generally applied to
the consideration which is paid for the use of a road, bridge or the like, of a public
nature
2. Penalty is any sanction imposed as a punishment for violation of law or acts deemed
injurious. Thus, the violation of tax laws may give rise to imposition of penalty.
3. Special assessment is an enforced proportional contribution from owners of lands
especially or peculiarly benefited by public improvements.
4. License or permit fee is a charged imposed under the police power for purposes of
regulation. It is the legal compensation or reward of an officer for specific services.
5. Subsidy it is a pecuniary aid directly granted by the government to an individual or
private commercial enterprise.
6. Revenue it refers to all the funds or income derived by the government, whether from
tax or from whatever source and whatever manner.
7. Internal revenue it refers to taxes imposed by the legislature other than duties on
imports and exports.
8. Customs duties – they are taxes imposed on goods exported from or imported into a
country.
9. Tariff - are duties payable on goods imported or exported.
10. Power of eminent domain is the power of the state or those to whom the power has
been delegated to take private property for public use upon paying to the owner a just
compensation to be ascertained according to law.
11. Police power has been referred to as the power of the state to enact such laws in
relation to persons and property as may promote public health, public morals, public
safety and the general prosperity and welfare of the inhabitants. Examples of police
power laws are those requiring a license for the practice of medicine, punishing
vagrancy and prostitution; regulating the use of traffic on roads; requiring a license
for the right to drive motor vehicles, providing for zoning regulations; regulating
prices of commodities and rents of apartments; and authorizing the removal of
billboards offensive to sight.
12. Tax Evasion is the use by the taxpayer of illegal or fraudulent means to defeat or
lessen the payment of a tax. It is also mean tax dodging. It is punishable by law.
Examples; deliberate failure to report taxable income or property; deliberate
reduction of income that has been received.
13. Tax Avoidance is the use by the taxpayer of legally permissible alternative tax rates or
methods of assessing taxable property or income in order to avoid or reduce tax
liability. It is also called tax minimization. The term may be extended to include
situations where a person refrains from engaging in some activity or enjoying some
privilege in order to avoid the incidental taxation.
1. Exempted to pay from property tax are charitable institutions, churches and
parsonages or convents, mosques, and non-profit cemeteries, and all lands, buildings,
and improvements actually, directly, and exclusively used for religious, charitable, or
educational purposes.
2. Exempted from taxes and duties all revenues and assets of non-stock, non-profit
educational institutions used actually, directly, and exclusively for educational
purposes and subject top conditions prescribed by law, all grants, endowments,
donations, or contributions used actually, directly and exclusively for educational
purposes.
The following tax exemptions are among others, specifically provided for in the National Internal
Revenue Code;
LEADERSHIP
The two terms leadership and team building are not foreign to us. In fact, all of us are respected
leaders in our own right. And as leaders, we have been involved in team-building which is an
essential component of leadership development.
The primary purpose of this paper is to present a review of some definitions and concepts of
leadership and discuss the basic process of team building. It will also present a conceptual
framework on leadership and team building in any field.
According to George Terry (1977), leadership is a process of influencing the actions of an organized
group in goal setting and accomplishment; also as an influence under which the followers accept
willingly the direction and control by another person or the leader. Haiman views leadership as a
process whereby an individual directs, guides, influences, or controls the thoughts, feelings or
behavior of other human beings. Tead, as cited by Ruiz (l972), defines leadership as the activity of
influencing people to compete toward some goals which they come to find desirable. From the
definitions, it appears that two words, influence and interaction; are bases in any discussion of
leadership. At this point, it is advantageous to distinguish some types of leaders.
A democratic leader is one who epitomizes the values and norms of his group. He
Evolves out of the group of which he is a part, rather than by creating a following of his own. Te
democratic leader puts the well-being of the group ahead of his own desires where they conflict.
Whereas, a dictatorial leader is one who has complete autocratic control over his men.
4. Passive leader is one who has developed a following because he happens to possess certain
talents or skill, or traits which are admired, not by a deliberate effort toward leadership on
his part
5. Personal power or charismatic leader is one who achieves his role almost entirely through
personal magnetism or attractiveness.
6. Transformational leader builds on man’s need for meaning and is oriented toward meeting
long-term goals without compromising human values and principles.
7. Transactional leader builds on man’s need to get a job and to make a living and is
preoccupied with power and position and politics.
There are still other types of leaders, like change or role-oriented leader and strategic leades.
But who is a good leader? Lao Tse, one of the greatest Chinese philosophers in his time wrote that
“ A leader is best when people barely know that he exists,
Of a good leader, who talks little.
When his work is done his aim fulfilled,
They will say, “ We did this ourselves.”
1. Persuasion – includes sharing reasons and rationale, making a strong case for our
position or desire while maintaining genuine respect for followers ideas and
perspective committing to stay in the communicative process until mutually
beneficial and satisfying outcomes are reached.
2. Patience – staying committed to the goals in the face of short-term obstacles and
resistance.
3. Gentleness – not harshness, hardness or forcefulness when dealing with disclosures
and feelings followers might express.
4. Teachableness – a leader does not have all the answers, all the insights and valuing
the different viewpoints, judgments and experiences followers may have.
5. Acceptance – withholding judgment, giving the benefit of the doubt.
6. Kindness – sensitive, caring, thoughtful and remembering the little things in
relationships.
7. Openness – giving full consideration to the followers’ intentions, desires, values and
goals rather than focusing exclusively on their behavior.
8. Compassionate confrontation – acknowledging error mistakes, and the need for
followers to make “course corrections” in a context of genuine care, concern, and
warmth.
9. Consistency – degree of firmness and ability to be assertive together without
contradiction.
10. Integrity – honestly matching words and feelings with thoughts and action;
correlating between what I value and believe and what I do not.
A leader cannot exist without problems. What are these problems? According to Stephen
Covey, these are chronic problems of leaders, as follows:
Let us reflect for a moment: What kind of leaders are we? Do we have the skills required of a
good leader? What have we done to solve the problems we have encountered? It is only we
ourselves who can answer all these questions.
In the 1960’s, Diana Baumrind first applied Lewins three styles of leadership to
families. She called these parenting styles authoritarian, permissive, and authoritative.
Subsequent research identified a fourth parenting style – neglectful.
Control and support are the two main aspects of the parent-child relationship that are
the key to its success or failure.
Control also described who is in charge in the family – the parents or the children.
The vertical line represents the support aspect of parenting. Support can range
from showing strong acceptance and responsiveness to being unresponsive and rejecting at the
other extreme.
Supportive parents are child centered. They understand that children or students
have special needs because they are immature. Supportive parents encourage independence and
individuality. They talk with their children a lot; the children understand the reasons for family
standards. Parents treat their children with warmth and love.
EMOTIONAL CLIMATE
The results tend to be negative. Young people may out-and-out rebel and reject
parental values. Others become overly compliant – they can’t face tough decisions, and need an
authority to tell them what to do.
If the adult children remain religious, they often seek the security of the legalistic
approach to Christianity. Since they did not experience grace, it is difficult to grasp. They see God
as wrathful, a vengeance-seeking judge ready to zap anyone who does not measure up\
Neglectful parents may be classic abusive parents who do not supply their children
with their daily needs for food, shelter, and clothing. On the other hand, they may be well-
educated, career-conscious men and women who are also involved in their own lives they have no
time left to support to guide their family emotionally. Parents do not want to sacrifice their own
convenience for their child’s emotional needs.
Faraway God – Children from neglectful homes often react in the same way that
children from authoritarian homes do – they rebel and embrace negative values. They may have
deep emotional problems related to the neglect they have experienced.
Carolyn goes to church but is not serious about religion. To her God is a distant
ruler of the universe who is not involved in people’s everyday lives. She sees God as one who really
does not care what happens on earth.
Permissive parents are warm and caring, but they do not encourage mature
behavior. They have few rules. Permissive parents tend to avoid authority, controls or restrictions.
Pull a $10- bill from your pocket and you will see the face of Alexander Hamilton on the front.
By merit of his accomplishments, Hamilton should be one of the United States’ greatest national
heroes. Consider his contributions to America:
Yet, despite displaying the greatest blend of legal, political and financial knowledge of the
founding fathers, Hamilton does not rank among the foremost heroes of our country’s history.
Why? Pride.
Hamilton’s self-importance and inability to take an insult alienated those around him and
sabotaged his career. His ego literally killed him. Far too vain to patch up differences with fellow
politicians, Aaron Burr, Hamilton was shot and killed by Burr in a duel at the age of 49.
LEADING CULPRIT
Before diving into the body of this lesson, I’d like to credit my friend Dave Anderson, founder
of LearntoLead.com. Many of his thoughts resonate throughout this edition of LW.
I agree with Dave when he suggests pride is the leading culprit of managerial ineffectiveness.
“There are many reasons managers fall. For some, the organization outgrows them. Others
don’t change with the times. Some spread themselves too thin and work long and hard but not
smart. Many abandon the priorities and disciplines that once made them great and never get back
to them. A few make poor character choices… But all these causes for management failure have
their root in one common cause: Pride. In the simple terms, pride is devastating. I’m not talking
about the pride one has in their work or their accomplishments. I’m indicting the pride that
inflates your sense of self-worth and distorts your perspective of reality”. – Dave Anderson.
There are two kinds of pride, both good and bad. “Good pride” represents our dignity and
self-respect. “Bad pride” is the deadly sin of superiority that reeks of conceit and arrogance.
When you look at the word pride, notice the middle letter is “I”.
When you are full of pride on the inside, it makes you stiff, stubborn and creates strife with
others.
PROBLEMS OF PRIDE
Prideful leaders readily contract “Superman Syndrome” and devalue the benefits of
teamwork. They rely on their own powers to solve problems and advance the
organization. Blinded by their self-centeredness, arrogant leaders are unable to
appreciate the strengths in others.
Leaders who are assured they know everything don’t bother about personal growth.
Their ego convinces them that they have arrived, and they quit searching for life’s
lessons in the people and circumstances around them,
Pride deafens us to the advice or warnings of those around us. As Stephen Covey has
said, “It takes humility to seek feedback. It takes wisdom to understand it, analyze it
and appropriately act on it.” Without humility, we care about only one opinion---our
own.
The Duke of Wellington once haughtily drew himself up to his full height and
thundered to one of his staff officers, “God knows I have many faults, but being wrong
is not one of them!”
Pride won’t allow for failure. The egotistical leader blames mistakes on others, justifies
them as inevitable, or refuses to acknowledge them.
Pride will cause leaders to pledge allegiance to the status quo rather than opening
themselves to change; especially if the change alters a system they built. Since leaders
have emotional equity in their own work, they will justify living with broken systems
rather than changing them.
As flawed human beings, we all fall into prideful traps from time to time. However,
failing to recognize the error of pride and change course will doom our leadership.
Pride is a fatal character flaw and leaders that leave legacies have their character in
tact. Leaders who fail to prune their pride will meet demise. That’s not a guess, it’s a
guarantee. With pride, it’s a matter of “if” we will fall but “when.” There are no
exceptions.
For leaders to reach full potential, they must be aware of areas in which they can
improve. Unfortunately, pride blocks honest self-assessment and prevents leaders from
finding the path to better performance.
The opposite of loving others is not hating others but rather obsessing over oneself.
When we become self-absorbed, we cut ourselves off from the enjoyment of the
relationships in our life.
What I call “ The Celebration Principle” says that the true test of relationships is not
how loyal we are when friends fail, but how thrilled we are when they succeed. If we
can’t get excited about the accomplishments of our friends, we had better do some
soul-searching.
Constantly viewing life through the lens of selfish ambition colors a leader’s outlook.
Many problems in business are caused by the ego interfering with judgment. Choices
that should be clear to the leader become clouded by an obsession with self-
advancement.
“If anyone would like to acquire humility, I can, I think, tell him the first step.
The first step is to realize that one is proud. And a biggish step, too. At least,
nothing whatever can be done before it. If you think you are not conceited, you
are very conceited indeed.”
“There is perhaps not one of our natural passions so hard to subdue as pride.
Beat it down, stifle it, mortify it as much as one pleases, it is still alive. Even if I
could conceive that I had completely overcome it, I should probably be proud of
my humility” – Benjamin Franklin
“ A proud man is seldom grateful man, for he never thinks he gets as much as he
deserves.”
“Blessed are they that laugh at themselves, they shall never cease to be
entertained.
CONCEPT OF LOYALTY
Before the practice of labor contractualization became popular in this country, I would say that
individual productivity was higher among employees, because most of them had permanent status,
meaning that they had regular benefits on top of a retirement package. Actually, I think that the
“Herrera Law” had the good intentions of protecting laborers so that they would be entitled to
permanent status if their employment exceeded six months. Unfortunately however, the reverse situation
happened when employers started to limit employment terms to only five months, as a deliberate move to
go around the law.
When employees had permanent status, we would naturally expect them to be more productive,
because their level of company loyalty was very high, considering that they had a long term career to
look forward to. Now most of the employees only have contractual status, loyalty is very low, and not
only that, the feeling of job insecurity is very low also. Although we would not really expect employees to
be loyal and productive when they are aced with the prospects of job insecurity, it would still be fair to
say that it is still the duty of employees to give employees their best productivity, because after all, the
employers are paying them for the work that they do.
As we studied the problem of low productivity in line our day to day work at the Inter-Charity
NETWORK, we discovered that the root of the problem is really the lack of proper work ethics among
employees, to produce more than what they are actually producing now. Looking at the practical side,
we also realized that their motivation is hampered by their worries about their basic needs, as they face
the challenge of survival in their day to day lives.
An Academic or Program Head is in the vanguard of development of a school, the vehicle for human
development. As such, he performs administrative functions aimed at attaining quality education to
prepare the learners to become productive and useful citizens of the country. In executing such
functions, he should observe transparency to activate his teachers to cooperate with him in creaming off
learners. The noble task calls for wise and workable decisions about proper utilization of human and
material resources of the school. Taking into consideration that the success of any administration
largely depends upon two sources – the human and material resources.
udents’ learning the program or academic head should puzzle out various means of increasing students’
achievement and o improving his management skills in managing teachers. To attain educational goals
the academic head should group the teachers or instructors according to their field of specialization,
abilities and treat and supervise them accordingly. The program head needs close supervision on
teachers. This followed with the stage of work that needs less supervision
NATIONAL DEVELOPMENT
3. The unit o measure o economic growth representing the sustained increase of real
output of goods and services in the country.
a. net national product b. per capita income c. gross national product d. none
of the above.
4. The application or use of a new knowledge to improve present ways and means of
doing things.
There are at least four reasons why government agencies are in general
insensitive, even indifferent, to citizen concerns. First, the budget of
government agencies is not dependent on citizen satisfaction. Government
agencies do not receive their funds directly from citizens, but from legislative
assembly (Congress) and the treasury (the Department of Budget and
Management). When a business displeases customers, sales decline and profits
plummet. When a government agency delivers services badly, nothing bad
happens to it. Government agencies aim to please, not the customer, but the
bureaucracy and its bosses. There is no incentive to satisfy the citizen as
customer. Second, government agencies are monopolies. They have no
competition that will prod them to be efficient, effective and innovative. Their
employees, in turn, can afford to be arrogant, complacent, and disparaging of
the public. Third, national and local governments (at least those which are
democratic) are only replaced through elections. For the Philippines and other
presidential democracies, the terms of office and the timing of elections are
fixed. Elected government officials cannot be changed in between elections
(save for extraordinary cases). Thus, in between elections, there are no serious
disincentives for officials serve citizens with excellence and innovation.
Fourth, the majorities of citizens have historically been accustomed to the poor
performance of governments and have not developed a culture of complaint for
better service. The long lines in many government offices are accepted as a
matter of fact, the arrogance and incompetence of many government
employees are considered part o the process, and the sloppy and slipshod
services are viewed as something that might as well be accepted. To be served
effectively, many citizens know all too well that “pay-offs” often do the trick.
How does globalization impact on management? It appears to me that there are two simultaneous
globalization processes operating. The first process presents to use the positive interplay of its
economic and political dimensions. With the end of the cold war, and the blurring of what used to
be first, second and third world nations. We see the emergence of transition economies like
Vietnam, China and the former Soviet Union, where the failures of Central Economic planning has
finally forced them to open their markets to the world. This first process promises prosperity – a
global neighborhood of milk and honey. Yet there is a second process that highlights globalization
of finance, for example, that seems to make banks fall like a pack of cards. It has been described as
the “ race to the bottom”, where there is mad scramble to lower prices, the phenomenon of
deflation in the United States, the compromising of labor and product standards, just to capture
the market. There seems to be a nagging hesitation to lower tariff barriers, despite WTO. How
will all these change the functional areas of management as we know them today? How will the
faces in the workforce and the workplace change? Does globalization mean developing more
competencies for greater, tougher competition or do we need to develop new skills of negotiation
and collaboration as we rely more and more on outsourcing, franchising, networking,
subcontracting –the virtual value chain? Are the processes of globalization something we can
control within the firm.
Second, how does governance impact on management? It is even clearer, I believe, that
government cannot govern alone. The rise o regionalism indicates common problems that cut
across national boundaries. GerryCorrigan, Former Chairman of Federal Reserve in New York, in
his analysis of what led to the crisis in Asia, shares insights, for example, about poor credit
decisions by banks and poor regulations by central bank. This shows the interlocking impact of
business and government action and strategy on regions, and argues for a rethinking of mechanism
for economic governance. Should stability a policy objective o both business and government?
Should we even think of business and government as two words with irreconcilable goals? Is
management, as a science and as an art, ready for new mechanics of governance?
Third, how does management education impact on management? How do we help prepare
managers to take greater responsibility for their own learning on the job? Are our schools open to
being enriched by their experiences? Into the next millennium, globalization, governance and
management education will be powerful forces of change. How ready are we? With the pearls of
wisdom we have acquired through the years in the heart of the recent crisis, how prepared can we
really be?
Blessed are
Who lead young people in paths of justice and peace,
For you will shine like a star for all eternity.
6. Which of the following has the largest tenanted area in southern Mindanao
7. The largest percentage of landlords with holdings of seven and more hectares of land is found in
14. The beneficiaries of CARP are entitled to how many hectares of agricultural land
a. 1 b. 3 c. 7 d. l0
l8. The system of landlordism in the Philippines during the Spanish colonial period;
a. caciquism b. feudalism c. manorial system d. none of the above
19. The most important social function of the Agrarian Reform Program
a. redistributes responsibility
b. redistributes wealth among the less privileged
c. gives freedom of management
d. challenges to use potential resources
a. –1 b. 1 c. 15 d. 15
a. 4 b. 2 c. 8 d.6
6. In one section, the ratio of boys to girls is 4:3. If there are 42 students in a class,
How many are girls?
a. 18 b. 6 c. 24 d. 36
7. A hospital charges a patient for P78 for 12 capsules. How much should it be charged for 18
capsules?
a. P111 b. P114 c. P117 d. P120
8. Two people take 12 days to repair a sidewalk. How many people are needed to complete the
repair in 4 days?
a. 2 b. 4 c. 6 d. 8
9. If a certain amount of food will last 50 days for 200 soldiers, how long will it last if 50 soldiers
are added at the end of 20 days.
a. 2% b. 5% c. 20% d. 50%
12. 6.2% of 98 is ?
13. The cost of an electric fan was P1,053 including an 8% sales tax. What was the price of the
electric fan before tax?
14. a jacket on sale at P480 is 60% of the regular price. What is the regular price?
15. If the value of the diamond necklace appreciates exponentially at a yearly rate of 18%, how
much will be its cost in 5 years time if the initial cost of the necklace is P25,000?
16. Maria Tuyhakaw purchased 4 lbs. of mixed nuts at P20 per lb. Rita purchased 2 lbs. of peanut
at p15.00 per lb. What is the average price per pound for the mixture of both purchases?
17. Mr. Gituyok-tuyok paid a total of P12,330 in taxes for income earned in 1995. His tax rate is
34 ¼% of his gross annual income. What is his monthly salary?
18. The female population of a university comprises 30% of the total student population of 6,000
students. This number is equal to the number of students (male and female) enrolled in
teacher education. There are 800 females enrolled in teacher education. How many males are
enrolled in teacher education too?
19. Ruth has a net profit of P760,000 at the end of the month. All her expenses amounted to about
20% of her gross revenue. How much is Ruth’s gross revenue?
Which group of jackets was offered at the greatest rates of discounts from its original price?
1. We all desire success in business ventures but one should know that first and foremost for
entrepreneurs is
2. Lourdes wants to engage in business. On what should Lourdes base the type of business she
wants to engage in?
3. They are earnings of corporations which are distributed among the stockholders.
5. When you need information on buyers, sources of raw materials, or exporting, your need is
6. A part of the business plan which provide details on how you will produce the product is
8. It is the part of the business plan which explains how will you manage the business.
10. It states the importance of the project, its objectives and significance.
a. proponent b. location c. rationale d. title
11. When customers pay cash upon delivery of the goods to their homes, this is known as
13. Storekeeping is a busy job. Although tiresome, it is very enjoyable because the owner act as a
host, a store owner, housekeeper, security guard and seller and he is also considered as
a. store owner b. retail salesperson c. manager d. financier
14. If you want to engage in business, what character trait should you possess as a would-be
Entrepreneur?
15. As a new businessman, one is not very sure of the results so he must be aware If his business is
good. He/She can identify a good business through
18. Not everybody can be good in business. The undesirable personal characteristics of an
entrepreneur is/are
20. Agencies which provide counseling to entrepreneurs who have business problems are referred
to as
21. Is an art and science which deals with fundamental business activities of planning,
organizing ,leading, implementing, controlling, evaluating and decision- making which are
verifiable in terms of business practices.
22. A periodical revision of the longer range plans is necessary as the firm moves into the future.
23. The greater the departure of planned changes from accepted ways the greater the potential
resistance by the people involved.
24. Planning must be stated in terms of the relationship between the advantages of flexibility and its
costs
a. Principle of flexibility
b. Planning Communication
c. Principle of positive action
d. Principle of resistance to change
25. Transfer of goods and services from the point of production to the point of consumption.
a. Exchange b. Marketing c. . Trading d. Manufacturing
26. An act or an ability to inspire and influence other people, in order to achieve the vision and
attain excellent results
27. Is an art of recording, classifying, summarizing in a significant manner for transactions and
events which are in part at least of a financial character and interpreting the results thereof.
30. A financial statement that shows the statement of revenue and expenditures for certain
operational period
31. An over-all plan of the organization in safeguarding its assets and other operational means
35. Consumption is
46. The beneficiaries of CARP are entitled to how many hectares of agricultural land?
a. 1 b. 3 c. 7 d. 10
49. Are considered to be the estimates for use in any organization both public and private.
a. disbursements b. budget c. IRA d. subsidy
a. Republic Act. 7716 b. Republic Act 6177 c. R.A. 6717 d. R.A. 7176
Agrarian reform is the redistribution of lands to farmers and regular farmworkers who are landless,
irrespective of tenurial arrangement. Agrarian reform is not just the transfer of lands, it includes a
package support services: economic and physical infrastructure support services, irrigation, roads and
bridges, marketing facilities and human resources and institutional delopment or social infrastructure
building and strengthening.
ehensive Agrarian Reform Program started in 1988 under the administration of president Corazon
Aquino.
The legal basis for CARP is Republic Act 6657 otherwise known as Comprehensive Agrarian Reform
Law signed by Aquino on June 10,1998. It is an act to promote social justice and industrialization,
providing the mechanism for its implementation, and for other purposes.
CARP covers all alienable and disposable lands of the public domain devoted or suitable for
agriculture, all lands of the public domain in excess of the specific limits, all other lands owned by the
government devoted to or suitable for agriculture, and all private lands devoted to or suitable for
agriculture regardless of the agricultural products raised or that can be raised thereon.
Land to the tiller is the essence of land reform. Land distribution secures farmers’ tenure, promotes
social equity, and provides farmers a productive resource toward ensuring their economic viability and
productivity.
Under RA 6657, the Department is vested with the primary jurisdiction to determine and adjudicate
agrarian reform matters and to extend free legal assistance to farmer- beneficiaries affected by
agrarian cases.
There are three types of cases under this program namely: judicial or court cases, quasi-judicial, and
cases related to agrarian law implementation (ALI). The first two types involve representation o
farmers by DLR lawyers before the regular courts and DLR Adjudication Board, respectively. The
third type involves the administrative rendering of decision on exemption, conversion and retention.
Over the years, the DLR has dramatically improved the pace o resolving cases.
The new DLR leadership is committed not only to the speedy delivery of agrarian justice but also to
resolve disputes at the lowest level possible.
Under Manuel L. Quezon (1935-1944), the Rice Tenancy Law or RA 4054 was passed. This is at the
first law on crop-sharing which legalized the 50-50 share between landlord and tenant and also
established a 10 percent maximum ceiling for loans extended to the tenants.
Contracts for a 50-50 sharing arrangement were good only for one year. Frequently, landlords would
simply refuse to renew contracts, which only gave the landlords a vehicle to legally dismiss the
tenants. While this law was enacted in 1933, it took effect only in 1946 or 13 years later.
During the administration of Manuel A. Roxas (1964-1953), Republic Act No. 34 was enacted . It
established a 70-30 sharing arrangement between tenant and landlord.
On October 23, 1950, President Elpidio Quirino created the Land Settlement Development
Corporation to accelerate the resettlement program which was launched shortly before World War II.
These measures, however, were not fully implemented. Huk rebellion continued and drew more
support from the peasantry.
When Ramon Magsaysay became President, he realized the urgency of implementing a more vigorous
land reform legislations, hence Agriculture Tenancy Act of l954 RA 1199 and the Land Reform Act of
1955. RA 1199 was the first land reform law which regulated all forms and aspects of tenure
relations, except civil lease. Magsaysay tried to provide the basic support services for farmers, such as
feeder roads, irrigation, credit, and farmer’s cooperatives.
President Diosdado Macapagal sought the outright abolition of share tenancy with the passage of
Agricultural Land Reform Code (RA 3844) which aimed to make the farmers owners o the land they
tilled. It lowered the retention limit from 300 to 75 hectares. This code abolished share tenancy and
instituted the leasehold system. It also incorporated some of the features of the previous land reform
laws.
One of the law’s basic objectives was to establish owner-cultivatorship and the economic family-sized
farm as the basis o Philippine agriculture and as a consequence, divert landlord capital in agriculture
to industrial development.
When President Ferdinand Marcos was elected President in 1965, he announced that he would
convert 350,750 share tenants into lessees by 1970. In his first few year, he concentrated mainly on his
green revolution program which benefited the large agricultural producers.
In 1971, peasant organizations and student groups joined forces to pressure the government and
Congress for a separate administrative agency for agrarian reform. In response to this, the
Department of Agrarian Reform (DAR) was created under RA 6389. The Macapagal code was
amended by the Marcos government. Through PD 2 passed by Congress, he declared share tenancy to
be illegal and named the entire country an agrarian reform area.
The 1986 revolution once again raised the expectations of the peasantry on land reform. When
President Corazon Aquino came to power she proclaimed that land reform would be the centerpiece
program of her government.
Aquino formed the Cabinet Action Committee on AR which drafted the necessary legislations. Four
presidential issuances were formulated: Proclamation 131, EO 228,, EO 229 and EO 129-A.
The CARL or RA 6657 emerged nearly after a year o debates, pressure demonstrations and deadlocks
between interest groups, It was signed by President Aquino on June 10, 1988 and took effect on June
15, 1988.
When President Fidel V. Ramos took over 1992, his administration committed itself to “fairer, faster
and more meaningful implementation of the agrarian reform program.”
Early in the administration of President Ramos, land acquisition guidelines were amended to simplify
the procedure for the acquisition of lands. formulas for computing land values were also revised since
this has been a chief cause for landowner resistance on the program.
The passage of RA 8435 also known as the Agriculture and Fisheries Modernization Act ( AFMA)
plugged legal loopholes in land use conversion.
The Ramos administration succeeded in having the Agrarian reform Fund (ARF) Bill approved into
law as RA 8532 which provided an additional P50 billion for CARP and extended its implementation
or another 10 years.
President Joseph Estrada launched the Magkabalikat para sa Kaunlarang Agraryo or MAGSASAKA.
This was designed to make FBs competitive through the forging of joint ventures. Creation o a
farmer’s trust was also initiated (EO151). This allowed the voluntary consolidation of small farm
operation into medium and large scale integrated enterprise that can access long term capital.
President Gloria Macapagal Arroyo having been elected in 2004 has sustained the DLR programs on
beneficiaries development. Most notable of the programs implemented in 2003 before she was elected
in 2004 are the KALAHI Agrarian Reform Zone Partnership Program, GMA or Gulayang
Magsasakang Agraryo, and President Diosdado Macapagal Agrarian Scgolarship Program
(PDMASP). The DLR asked the Congress for the immediate passage of a law on farm as collateral to
enable farmers to mortgage to banks farmlands they acquired under the government’s land reorm
program. Allowing farmers to use their certificates of land ownership award (CLOAS) as security for
bank loans would set them free from clutches of usurers, who lend money at excessive interest rates.
With easy access to credit, farmers will be encouraged to produce more and make the agriculture
industry globally competitive.
As the Congress sits on the “Farmland as Collateral Bill,” the DLR has expanded the nationwide its
support to farmers’ access to credit in a bid to help them augment their income and discourage them
from selling or pawning their farmlands.
The lending program, dubbed “Microfinance Solution Project (Microsol), is now in full swing
nationwide.
LAND DISTRIBUTION – To complete the CARP land distribution mandate by the end o the term of
President Gloria Macapagal Arroyo. The DLR is targeting to distribute at least 100,000 hectares of
Agricultural lan
MARKETING 1
CENTRAL MARKETS ARE CONVENIENT PLACES WHERE BUYERS AND SELLERS CAN
MEET FACE-TO-FACE TO EXCHANGE GOODS AND SERVICES.
1. SELF-SUPPORTING AGRICULTURE
2. PREINDUSTRIAL OR COMMERCIAL
3. PRIMARY MANUFACTURING
4. NONDURABLE AND SEMIDURABLE CONSUMER PRODUCTS MANUFACTURING
5. CAPITAL EQUIPMENT AND CONSUMER DURABLE PRODUCS MANUACURING
6. EXPORTING MANUFACURED PRODUCTS ( iron and steel, watches, cameras, electronic
equipment and processed food)
Functions OF MARKETING
4. EASY CONSUMER CREDIT MAKES PEOPLE BUY THINGS THEY DON’T NEED AND
REALLY CAN NOT AFFORD
5. PACKAGING AND LABELLING ARE OFTEN CONFUSING AND DECEPTIVE
6. MARKETING CREATES INTEREST INPRODUCTS THAT POLLUTE THE
ENVIRONMENT
7. TOO MANY UNNECESSARY PRODUCTS ARE OFFERED
8. MARKETING SERVES THE RICH AND EXPLOITS THE POOR
LAW OF DIMINISHING DEMAND- WHICH SAYS THAT if the price of a product is raised, a
smaller quantity will be demanded and if the price of a product is lowered , a greater quantity will
be demanded.
COMPETITIVE ADVANTAGE - MEANS that a firm has a marketing mix that the target
market sees as better than a competitor’s mix. A competitive advantage may result from efforts
in different areas of the firm – cost-cutting in production, innovative R and D , more effective
purchasing of needed components, or financing for a new distribution facility.
MARKET PENETRATION – means trying to increase sales of a firm’s present product in present
markets – probably through a more aggressive marketing mix. The firm may try to increase the
customers’ rate of use or attract competitors’ customers.
MARKET DEVELOPMENT – means trying to increase sales by selling present products in new
markets. Firms may try advertising in different media to reach new target customer.
PRODUCT DEVELOPMENT – means offering new or improved products for present markets.
DIVERSIFICATION - means moving into totally different lines of business– perhaps entirely
unfamiliar products, markets or even levels in the production-marketing system.
SEGMENTING – as an aggregating process- clustering people with similar needs into a market
segment
THE FIRST OBJECTIVE SAYS THAT THE COMPANY SHOULD DO SOMETHING USEFUL
FOR SOCIETY. BUSINESS CAN NOT EXIST WITHOUT THE APPROVAL OF
CONSUMERS. IF A FIRM ACTIVTIES APPEAR TO BE CONTRARY TO THE CONSUMER
“GOOD” IT CAN BE WIPED OUT ALMOST OVERNIGHT BY POLITICAL OR LEGAL
ACTION – OR CONSUMERS OWN NEGATIVE RESPONSES.
OBJECIVES SHOULD BE “SMART”
THE ECONOMIC ENVIRONMENT – AFFECTS THE WAY FIRM AND THE WHOLE
ECONOMY USE RESOURCES. TH E ECONOMIC ENVIRONMENT CAN – AND DOES –
CHANGE QUITE RAPIDLY. THIS IS EXEMPLIFIED BY THE CHANGE IN
Business Cycles
TYPES OF UNEMPLOYMENT
1. FRICTIONAL UNEMPLOYMENT. A CERTAIN AMOUNT
OF UNEMPLOYMENT, WHICH IS OF A SHORT-RUN
NATURE AND IT EXISTS BECAUSE OF FRICTIONS IN
THE ECONOMIC SYSTEM SUCH AS IMPERFECT LABOR
MOBILITY, IMPERFECT KNOWLEDGE OF JOB
OPPORTUNITIES, AND THE ECONOMY’S INABILITY TO
MATCH PEOPLE WITH JOBS.
TYPES OF INFLATION
1. COST-PUSH INFLATION – EXISTS WHEN PRICES RISE
BECAUSE PRODUCTION COSTS ARE INCREASING
ASTER THAN PRODUCTIVITY OR EFFICIENCY.
SELLERS PRICES ARE DETERMINED BY THEIR
COSTS, AND WAGES ARE THE PRIMARY ELEMENT
OF TOTAL COSTS.
2. DEMAND –PULL INFLATION – TAKES PLACE WHEN
CONSUMERS AND INVESTORS’ AGGREGATE
DEMAND IS RISING WHILE THE AVAILABLE SUPPLY
OF GOODS IS BECOMING INCREASINGLY LIMITED.
Product assortment is the set of all product lines and individual products that a firm
sells.
Consumer products are products meant for the final consumer. This includes
convenience products, shopping products, specialty and unsought products.
Business products are products meant for use in producing other products. This
includes installations, accessories, raw materials, components, professional services,
supplies.
Convenience products are products a consumer needs but isn’t willing to spend
much time or effort shopping for.
Staples are products that are bought often, routinely, and without much thought –
like breakfast cereal, canned soup, and most other packaged foods used almost
everyday.
Impulse products are products that are bought quickly – as unplanned purchases-
because of a strong felt need.
Emergency Products are products that are purchased immediately when the need is
great.
Shopping products are products that a customer feels are worth the time and effort
to compare with competing products. This can be divided into homogeneous and
heterogeneous.
July 30,2007
Honorable John Erlpe M. Amante
Provincial Governor
Province of Agusan del Norte
Capitol Building, Butuan City
VIRGIL E. GUMANOY
Program Head
PACKAGING FUNCTIONS;
1. CONTAINMENT AND PROTECTION – SHIPPING AND STORAGE EVAPORATION –
SPILLING
2. USAGE- MULTIPLE PACKAGING
3. COMMUNICATION – INGREDIENTS AND DIRECTIONS
4. MARKET SEGMENTATION – GIFT BOXES AND ITS APPEAL TO SHOPPERS
5. CHANNEL COOPERATION- UNIVERSAL PRODUCT CODE
6. NEW PRODUCT PLANNING
Questions to be answered:
1. What are the different kinds of retailers?
2. Why did they develop?
3. How do their strategies vary?
4. Why are there differences in retailing from one country to
another?
5. How is retailing changing?
Superstores-very large stores that try to carry not only food, but
all goods and services that the consumer purchases routinely.
Activities of wholesalers:
Kinds of wholesalers
Organizational Structure – the framework in which the organization defines how tasks
are divided, resources are developed, and departments are coordinated.
Work specialization – the degree to which organizational tasks are subdivided into
individual jobs, also called division of labor.
Chain of command – An unbroken line of authority that links all individuals in the
organization and specifies who reports to whom.
Authority – the formal and legitimate right of a manager to make decisions, issue,
orders and allocate resources to achieve organizationally desired outcomes.
Responsibility – the duty to perform the task or activity an employee has been
assigned.
Accountability – the fact that the people with authority and responsibility are subject
to reporting and justifying task outcomes to those above them in the chain of command.
Span of Management – the number of employees who report to a supervisor; also called
the span of control.
Departmentalization – the basis on which individuals are grouped into departments and departments
into total organization.
Functional structure – An organizational structure in which positions are grouped into department
based on similar skills, expertise, and resource use.