UNIVERSITY OF MAKATI

J.P. Rizal Extension, Brgy. West Rembo, Makati City

www.umak.edu.ph

Positive and Negative Factors

in Relation to Financial State
As Viewed by UMAK
Concessionaires 2019 - 2020

APPSUB2

Practical Research 2

Mrs. Ayson

By:

Barbosa, Aby Rose

Castillo, Rose Mariel

Garcia, Casey Keith

Gellido, Catherine Roze

Magliquian, Eloisa
 CHAPTER I

BACKGROUND OF THE STUDY

Knowing the Positive and Negative Factors in Relation to Financial State in University of

Makati Concessionaires is not just like nothing. It can help students or Entrepreneurs who has a

plan to open up their business. And one of the most important thing to know before opening a

business is to find out what are the effective ways to raise profit and the other one of course, to

find out the preventive measures or threats that may cause their business down fall. According to

Mason, M.K. (2011) Starting a small business is always risky, and the chance of success is slim,

so that entrepreneurs should be ready in everything that may happen to their business, it may be

positive or negative. While Poirot, K. (2014) stated that “Success awaits those who steadfastly

commit to any requisite sacrifice.”

Researchers selected this kind of study because, they want to find out what are the

positive and negative factors affecting the financial state of university of Makati Concessionaires

and of course to make a solution on the negative factors of it, because according to the U.S.

Small Business Administration, over 50% of small businesses fail in the first year and 95% fail

within the first five years.

As stated by Hanks, G. (2019) The profit and loss table is among the most significant

financial documents included in a standard business plan. The profit and loss table informs

potential investors and credit sources about how a business generates its income and manages its

costs. The statement furnishes information about a company's income, costs, overhead and, most

importantly, its net profit.

 Researches also focuses on the positive factors affecting the financial state of stores in

University of Makati, because this study can inform and help entrepreneurs in effective ways to

raise profit. As mentioned by Ward, S. (2019) one of the least riskiest (and least costly) ways to

successfully increase their business income is to make better use of their existing assets and

resources. Examples of assets and resources are business premises, intellectual property,

products, services, customers, and employees that may or may not be producing as much income

for entrepreneurs as they could. Bring more revenue for their business without spending a lot of

money to do something. Often the ways our businesses could make more money are right in

front of us; we just have to recognize them. One of the other ways you can increase profits is to

cut expenses, and there are many ways to do so.

Negative factors affecting financial state of a business such as lack of capital, personal

use of business funds, lack of sales, poor services, poor management, many competitors,

financial problems like bankruptcy, the product is too expensive, product is not good, product is

not seasonable, the product does not fit the location, communication issues, there are few people

in the location where you sell, no business plan or poor planning, failure to understand the

customer behaviour, inventory mismanagement, pricing and cost issues, leadership failure,

premature scaling, poor financial management, lack of focus, overexpansion, no succession plan,

and wrong partnership.

Positive factors affecting financial state of a business such as make a plan, entrepreneurs

should have core values, have mission statement, know who are the customers, involve

customers in product development, find an in investor, take action, stay profitable, manage cash

properly, get paid in advance, be very selective in offering credit to customers, increase sales,

secure loans for emergencies, proper financial management, and right pricing of products.
 Researchers can conduct this study by not asking the whole business income of an

entrepreneur. Researchers will ask only, what are the negative and positive factors affecting their

financial statement, if they don’t agree with what the researchers ask for, it’s just fine.

Researcher will find other way, they can survey or interview the customers, they can go to

market and check the price of that products that is selling around university of Makati. They can

ask other entrepreneurs that are willing to share their experiences, and many others.

STATEMENT OF THE PROBLEM

This study aims to determine the positive and negative Factors in Relation to Financial State As

Viewed by UMAK Concessionaires 2019 - 2020

Specifically, this study seeks to answer the following research questions:

1. What are the preventive ways against losses?

2. What are the effective ways to raise profit?

3. What is the significance of knowing if the business have a profit or losses?

SIGNIFICANCE OF THE STUDY

Nowadays, a lot of students and entrepreneurs don’t value what are the negative and

positive factors that can affect their businesses. They are satisfied already as long as they know

they're making money, so that in this study they can learn more what they don’t know. Hence

the researchers felt the need to conduct this study regarding factors affecting their financial

state and how it will affect their business.

 The aim of this study is to further understand the factors that will affect the financial

state of the entrepreneurs. It will also help entrepreneurs to be educated on how to properly

manage their businesses. This research will open our eyes and it will serves as awareness in

this radiant matter.

Benefits of this study will be gained by the following people:

Entrepreneurs – it will help entrepreneurs to have some guides and information who has a plan

to open up a business. In this study they can find out the positive and negative factors that can

affect their financial state, and also they can find out the preventive ways against losses an d

effective ways to manage their own business.

Students – it will help the students to have some guides and information who has a plan to sell

online and to start a new business. In this study they can find out how to properly manage a

business and it help them to be ready in everything that may happen, it may be positive or

negative they already have an idea how to manage it properly.

Parents – If their child/children has a plan to open up a business, they can properly guide them

about it. If there is a problem in their business, the parents can easily help or guide its

child/children. Parents must know first what do their children planning to do in their lives. This

study will be a very big help for them.

Future Researchers – This study will serve as a guide or reference for future researchers if they

plan to conduct a research concerning factors affecting financial state of a business.

HYPOTHESIS

1. Positive factors affecting the financial state of the UMAK concessionaires is

significant.

2. Negative factors affecting the financial state of the UMAK concessionaires is not

significant.

3. Positive factors affecting the financial state of the UMAK concessionaires is not

significant.

4. Negative factors affecting the financial state of the UMAK concessionaires is

significant.

REFERENCES:

http://www.moyak.com/papers/small-business-failure.html

http://www.moyak.com/

https://commons.wikimedia.org/wiki/File:Mentor_Me_by_Ken_Poirot_Book_Quotes_18.jpg

https://smallbusiness.chron.com/importance-profit-loss-table-64761.html

https://www.thebalancesmb.com/business-money-makers-2948297

https://www.successharbor.com/why-some-businesses-fail-while-others-succeed-02132015/