BUSINESS

IN

GENERAL
Development of our
Business Culture:
▹ Pre-historic times - ▹ Business in the
Arab traders and Philippines and in other
Chinese traders countries of the free
established trading world is basically
communities in the capitalistic in nature. 2
Philippines. (Means that society
▹ The Galleon trade was entrusts the workings of
the trade between the business process to
Manila and Acapulco in the guidance of the
Mexico during the 18th private businessman.)
century. The Spanish
community in Manila
dominates Philippine
products.
Business is capitalistic if
we have the following:
▹ Private ownership of non-personal means of
production, land, industrial plants, equipment,
factories, transportation facilities, and other
capital goods, or at least the larger part of the 3

community’s capital goods are owned by

individual persons or by private corporations
and not the state.
▹ Production for private account.
▹ Voluntary savings and the institution of bank
credit.
 “
In every economy, certain basic
functions have to be
accomplished-the determination
of what, how, how much and for
whom to produce, the allocation
of the goods and services
produced, further growth of the
economy, the distribution of
economic benefits and
maintenance of relations with
other countries.

4
1. Capitalist Economy/Market Economy- the market evolved as
a result of the exchange between buyers and sellers that led
to the establishment of prices. The forces of supply and
demand are allowed to operate.
2. The Arrival of the Spaniards forced the people to produce
more to support the non-producing Spanish authorities.
3. The Granting of Independence to us led to the emergence of
the entrepreneurs to continue the process of the Philippine
economic development. 5

4. From Capitalism the private ownership exists. Karl Marx

makes certain distinction between socialism and
communism.
▹ In Socialism, goods are not yet sufficiently produced to meet
all the material needs of the members of the society, while in
communism, the said state of abundance has already been
achieved.
▹ In Socialism, man produces as a result of incentives like
wages while in communism production is undertaken without
any prodding since work becomes “natural” to the members.

5. Industrial Revolution-mechanical inventions and mass

production gave rise to expanded industry and trade.

6. Laissez-faire theory- competition became a part of society. 6

Free or private enterprise
STUDY OF
BUSINESS
What is Business?
BUSINESS IS…
▹ An organization of the people with varied skills,
which uses property or talents, to produce goods
or services, which can be sold to others for more
than their costs.
▹ The system through which economic activity is 8

organized and directed by those who seek to

make profit.
▹ Includes any lawful activity carried on
continuously, which involves buying and selling, or
manufacturing, or financing, or the rendering of a
service for money
KINDS OF
BUSINESS COMMERCE

INDUSTRY 9

SERVICES
COMMERCE
Refers to the transfer It covers buying, Other activities, which
or exchange of goods selling, and marketing indirectly concern the
and services with the and merchandising, transfer of goods like
movement of goods which are directly collecting of goods,
10
from point of involved in the grading, warehousing,
production to point of transfer of goods. transportation,
consumption. insurance and
financing of transfers.

Trade is a part of commerce; it may be retail or wholesale, domestic or

foreign. The retail business is represented by a sari-sari store.

INDUSTRY
Primarily concerned with the
creation of form utility or the
production of goods that are used
either by the consumer. Therefore,
called consumer’s goods or by
other industries in the further
production of other goods and
therefore called producer’s goods.
BROAD GROUPING OF INDUSTRY:
1. Genetic Industries- “genesis”-beginning,
include agriculture, forestry and fish
culture.
2. Extractive Industries- includes mining,
lumbering, hunting and fishing.
Characterized by the extraction of goods
from natural resources.
3. Manufacturing Industries- are involved in 11
the changing of raw materials or
secondary products into a more useful
forms. It includes food, beverage and
hundreds of other industries
manufacturing other goods or products.
4. Construction Industries-range from the
building of multi-million peso highways,
airports, and many-storied skyscrapers to
the humbler dwellings and residences
where we live.
SERVICES
These enterprises cater to personal needs of
people, or with the rendering of a personal
service. Businesses engaged in service are not
involved in the buying and selling of goods or the 12

manufacture of products.
 KINDS OF SERVICES
▹ Recreation Services-include motion picture
production and distribution, theatres for drama
and stage presentations, television and the like.
▹ Personal Services-include such businesses such 13

as restaurants, hotels, lodging houses, and

refreshment parlors.
 Why People
go into
Business?
14
1. They may go into
business owners and
employers or as
employee.
2. A person finds no easier
or more satisfactory
way of earning a living.
Values Derived of People
When they go into Business:

Social Approval Profit

The businessman has a The major factor of
high social standing in motivation for going into 15

the community business. Individuals enter

into these activities
because of the anticipation
of a “reward” for their toiling
in the form of monetary
benefits.
Service to the Personal Satisfaction
Community and to It comes about from the
Employees social status conferred
Industrial relations as on those engaged in
a function of business business, the search for
has expanded into self-fulfilment in what he 16

various activities feels is useful activity.

intended for the well-
being of employees.
Livelihood Power Protection
People go into Some people Quite often
business to enter business individuals
earn a living. because they inherit a
expect to rise business, and
up to positions rather than 17

of prestige, suffer a loss

power, and through selling
leadership. it decide to
run the
business
themselves.
Business and its relation
to other Sciences
Statistics Economics Sociology
Deals with Deals with the study Deals with
mathematical tools, of the collection of individual’s
trends and decision scarce resources relationship to 18
theories. for the satisfaction society as a whole.
of human wants.

Psychology
Deals with the study
of minds.
The Choice of a Particular
Business
Available Funds Special Aptitude Training, education
and Interest and Experience
Definitely limits the
type of enterprise One must take an Educational
that may be formed inventory of his background and
by an individual, personal aptitudes experience can be 19
partnership or and interests. advantageous.
corporation.

Social status of the The Competitive

Business Situations
Social standing May be so keen that
influences to a the margin of profit
marked degree the is narrow or at
satisfaction than times non-existent.
individual gets from
his business
endeavours.
 “
Successful businessmen
are better organizers, as
they know how to
combine money and
opportunity and brains to
bring about successful
results and a better
management.

20
SHORT QUIZ
Answer the following:
1. Which of these factors-profits,
livelihood or social approval-
21
have greater influence in
motivating the average Filipino
to go into business. Explain.
2. Explain why knowledge of
statistics, economics,
sociology, and psychology is
important in business.
 THE
PRINCIPLES OF
ORGANIZATION
PRINCIPLES
The framework of an 23
organization. It
serves as the
checklist to have a
successful
organization.
 Principle
Principle
of of Analysis
Objectives

THE BASIC Principle

of
Principle of
Centralization

PRINCIPLES Simplicity of Authority

Principle
Principle of of limited
Departmentation Span of
Control

24
Principle of Objectives Principle of Analysis Principle of Simplicity
It serves as the guide of It is the basic thing to The simpler the
the organization into do in an organization. organization the better
what way to serve the If a problem arises the and less confusion in the
clients or they will best thing to do is to part of the
succeed in making their analyse whether the employees/subordinates
organization well. solutions are
beneficiary to the
organization or will
cause its downfall.

Principle of Principle of Principle of limited 25

Centralization of Departmentation Span of Control
Authority It shows here the Although the power of
In this principle it division of powers the head is shared
explains the according to one’s among the department
centralization of capacity. An heads he still has the
authority in an organization maybe power to do their jobs.
organization. It is divided into If the occasion arises,
important because it departments to avoid he also has the
determines the power confusion and to share authority to assign and
of the executives and the power of the head remove them from
its limitations. of the organization. position of they are
proven incompetent.
FUNCTIONS OF MANAGEMENT
Planning

• It is the methodical technique of looking ahead in order to meet work requirements

and to reduce the amount of mental efforts required while the work is being done.
The essence of planning is to remember the value of time, the virtue of patience
and the joy of originating.

Coordinating

• It implies the smooth working together of the different composing elements. It

aims toward a perfect meshing of, or a harmonious adjustment among, the
elements employed

Directing

• It means the pointing of all efforts toward the known objective.

Controlling

• It includes the restraining, checking, and motivating influences exercised by the

management.

26
SYSTEM OF MANAGEMENT
System, A Fundamental in Operating a Business:

In business, planned methods of procedure are called

system. When organizational procedures are
standardized, we have a system. System is one of the
27
most valuable mechanisms or aids of management.

Experience has proved that, in any line of performance, if

a thing is to be done efficiently, it must be done
systematically.
System, if properly utilized, materially aids in securing
the desired results in the best possible way with the
latest expenditure of time and effort.
ADVANTAGES OF PROPER
USE OF SYSTEM
1. System is the introduction of order and method
wherever it is applied.
2. Everyday work becomes routine through a system.
3. System permits those in authority to devote their time 28
and effort to more important work, such as planning,
attending to major problems, searching for new
markets and products, and the like.
4. System aids in the control and reduction of costs.

SUMMARY
Business in general is an
organization of the people with
varied skills, which uses property
or talents, to produce goods or
services, which can be sold to
others for more than their costs.
Business is certain basic
functions have to be
accomplished-the determination
of what, how, how much and for
whom to produce, the allocation
of the goods and services
produced, further growth of the
economy, the distribution of
economic benefits and
maintenance of relations with
other countries.
The kinds of businesses are Commerce, Industry and
Services. There are reasons why people go into business
because they may go into business owners and
employers or as employee and or a person finds no
easier or more satisfactory way of earning a living.
There are values derived of people when they go into
Business, this includes Social Approval, Profit, service
to the community and to employees, Personal 29
Satisfaction, Livelihood, Power, and Protection.
Business has its own relation to other sciences like
Statistics, Economics, Sociology and Psychology.
Successful businessmen are better organizers, as they
know how to combine money and opportunity and
brains to bring about successful results and a better
management.
Principles is the framework of an organization. It serves as
the checklist to have a successful organization. The Basic
Principle of Organization are Principle of Objectives,
Principle of Analysis, Principle of Simplicity, Principle of
Centralization of Authority, Principle of Departmentation
and Principle of limited Span of Control.
While the functions of management in Business
Organization are Planning, Coordinating, Directing and 30
Controlling. And system of management is a fundamental
in operating a business. The advantages of proper use of
system is that every day work becomes routine through a
system while system permits those in authority to devote
their time and effort to more important work, such as
planning, attending to major problems, searching for new
markets and products, and the like and last but not the
least system aids in the control and reduction of costs.
 GROUP1
BFA4B
Balida, Angelica Marie
Borromeo, Bernadette
Dela Cruz, Harp Cris
Dela Cruz, Roma
Enguero, Tiffany
Guansing, Roma
Hernandez, Nicole
Javison, Hyacinth
Lim, Marie Lenn Lim
Nuezca, Alrod Miguel
Paredes. Alizarin
Tizon, Shayra Katrina Mari
31