1.

It is an entity or organization that is intended for

commercial, Industrial, or any professional activities. Its main
objective is to earn profit for the owners. A business is just a
small portion of an industry.
- BUSINESS

FORMS OF BUSINESS ORGANIZATIONS

2. This form of business organization consists of one person

who runs a business. Among all business organizations, this
takes the simplest method to set-up and even to dissolve.
Carry the whole responsibility for all the debts.
- SOLE PROPRIETORSHIP
3. Consists of two or more people who combine their
resources and run the business together with an aim to gain
profit. There must be a partnership agreement and profits are
divided among partners according to the terms of agreement.
- PARTNERSHIP
2 TYPES OF PARTNERSHIP

1. All partners have unlimited liability wherein their personal

properties might be used just to pay for the debts of the
company.
- GENERAL PARTNERSHIP

2. These are the partners who contribute only capital and do

not take part in the management of the business.
- LIMITED PARTNERSHIP

FORMS OF BUSINESS ORGANIZATIONS

4. It is a legal entity that is separate from the owners of the

corporation or the shareholders. Board of Directors and the
highest officers may bear liability for their environment with the
corporation. The shareholders have limited liability.
Corporations have unlimited commercial life for they can exist
 for 50 years and it is renewable for another 50 years. Among
all forms of business organizations, corporations are heavily
taxed and regulated by the government.
- CORPORATION

5. Is a business owned and managed by its members. The

main goal is to meet members’ shared needs, not just to earn
profit. Members share profits and decision-making. Each
member usually has one vote, no matter how much money
they invest.
- COOPERATIVE
Common types:
1. Farmers work together to buy/sell goods.
- FARMERS COOPERATIVE
2. Members own shops or services for better prices.
- CONSUMERS COOPERATIVE
3. Workers own and manage the business.
- WORKERS COOPERATIVE
10 Principles in creating a Business
1. Business which has a potential to grow. For some
instances people are growing their business by aligning their
strategy/efforts on the present situation. •A business must be
scalable for it to be successful. Scalability is the capability of a
company to sustain or improve its performance in terms of
profitability or efficiency when its sales volume increases.
- SCALABILITY
2. Greater opportunities, in creating your business big ideas
plays a vital role, adopting to abrupt changes, planning and
aligning people to fit in the business. Every business begins
with an idea. Business ideas come from many sources.
Hobbies, interests, and business experiences often give
people ideas for new business. The success of one's business
is through collaboration of ideas.
- BIG IDEAS
3. Recognizing small and big parts contributes success and
failures to the business, everybody should fit in from the owner
 to its employee, resources and equipment. In making
plan/decision one should be align to the other. A business is a
system in which all parts contribute to the success or failure of
the whole. In this system, everything must work together from
employee to president; from equipment to resources.
- SYSTEMS
4. A business must be powerful able to harness all economic
conditions, in all market settings, providing positive and
meaningful quality results to its customers. Such differentiated
result is the key to survive. A business must be dynamic - able
to thrive through all economic conditions, in all markets,
providing meaningful highly differentiated results to all of its
customers.
- SUSTAINABILITY
5. All businesses need to grow, especially internally. When
you are a beginner in a business, it is like a school where your
employees are students that need your guidance, with your
intention and determination that the business will grow. Is
 essential in business. Without continued growth, operations
will stagnate. This can result in lowered standards of quality for
products or services, decreased customer service, and poor
employee morale.
- GROWTH
6. Is about seeing and planning for the future knowing where
the business could be in the next 5, 10, or more years by
identifying future opportunities or potential disruptions in the
industry and environment. Vision helps in defining the strategic
goals of a company, guiding how resources should be
allocated to seize new opportunities and drive growth in
response to shifts in the industry or environment.
- VISION
7. Refers to the fundamental reason why a business or
organization exists — its core mission or driving force. It goes
beyond making profits and focuses on the values, goals, and
impact the company seeks to achieve. Purpose helps guide
 decision-making, shapes the company's culture, and provides
a sense of direction for all stakeholders (employees,
customers, investors, etc.).
- PURPOSE
8. Refers to the ability to make decisions independently and
to have control over one's actions or processes without being
overly influenced or directed by others. It’s about having the
freedom and authority to act on one's own judgment or within
a set framework, whether in an individual, organizational, or
business context.
AUTONOMY
9. Refers to the ability of a business or organization to
generate profits relative to its revenue, assets, or equity over a
specific period of time. It is a key measure of a company's
financial health and success, indicating how well the business
is able to turn its revenues into actual profit.
PROFITABILITY
10. Refer to established criteria, guidelines, or specifications
that define the expected level of quality, performance, or
behavior in a given industry, process, or product. They are
used to ensure consistency, safety, and reliability across
products, services, or practices, and they help align
businesses with legal, ethical, or industry-specific
expectations.
STANDARDS
11. Involves assessing external and internal factors that affect
an organization or business. It helps in understanding market
trends, identifying opportunities and threats, and making
strategic decisions. The PESTEL framework is a common tool
used for environmental analysis, examining Political,
Economic, Social, Technological, Environmental, and Legal
factors.
ENVIRONMENTAL ANALYSIS
12. Is a strategic tool used to analyze the macro-environmental
factors affecting an organization. It stands for: Political,
Economic, Social, Technological, Environmental, Legal each
of these categories helps businesses understand external
influences that can impact performance and strategic planning.
PESTEL ANALYSIS
13. Affect how a business runs based on what the government
does. These can help or hurt a business depending on the
situation.
POLITICAL FACTORS
14. Are things related to money and the overall economy. They
affect how businesses make money, how much people spend,
and how easy or hard it is to grow.
ECONOMIC FACTORS
15. If a government is stable and doesn’t change often,
businesses feel safer to invest. Example: A country with a
 strong, peaceful government is more likely to attract
businesses.
Government Stability and Regulations
16. This means how much tax businesses and people have to
pay. Example: Lower taxes mean businesses keep more
money and may grow faster.
Tax Policies
17. These are rules and fees for buying or selling products
from other countries. Example: High tariffs on imported goods
make them more expensive, helping local products sell more.
Trade Restrictions and Tariffs
18. Corruption means dishonest actions by government
officials.
Corruption Levels
19. These are rules for trading with other countries.
Foreign Trade Policies
20. These are rules about workers’ rights, such as working
hours, wages, and safety.
Labor Laws
21. Sometimes, the government helps certain industries grow
with support, money, or policies.
Political Support for Specific Industries
22. This shows how fast a country's economy is growing.
Economic Growth Rates
23. Inflation is when prices go up over time. Interest rates are
the cost of borrowing money.
Inflation and Interest Rates
24. This is how much one country’s money is worth compared
to another's.
Exchange Rates
25. This shows how many people don’t have jobs.
Unemployment Levels
26. This is about how much people can afford to buy with their
money.
Consumer Purchasing Power
27. These are big economic changes around the world that
can affect local businesses.
Global Economic Trends
28. Are your consumers. You need to look at buying habits,
emotional needs, and consumer behavior in this section.
Because these are the people who directly influence your
sales.
SOCIAL FACTORS
29. Can be directly involved with company products, like
manufacturing technologies.
TECHNOLOGICAL FACTORS
30. Have to do with geographical locations and other related
environmental factors that may influence upon the nature of
 The trade you’re in. For example, agri-businesses hugely
depend on this form of analysis.
ENVIRONMENTAL FACTORS
31. Have to do with all the legislative and procedural
components in an economy. Also, this takes into account
certain standards that your business might have to meet in
order to start production/promotion.
LEGAL FACTORS
32. It stands for Strength, Weaknesses, Opportunities and
Threats It is a framework that is used to seek business
opportunities and evaluate new business ventures. It helps to
identify the company's challenges and risks of doing business.
A helpful tool to assess the internal and external factors
affecting the business.
SWOT ANALYSIS
FOUR TYPES OF COMPETITION
33. It is characterized by many firms selling similar but not
identical products. Firms have limited control over product
price.
Monopolistic Competition
34. Markets dominated by a few large firms. Firms offered
identical or differentiated products.
Oligopoly
35. There is only one firm who provides services and
dominates the market like water and electricity. Firms have
great control over product price.
Monopoly
36. Very large number of firms. Identical products are offered
for sale. Buyers and sellers are able to enter leave the market.
Perfect Competition
37. Is an individual or business that purchases the goods or
services produced by a business. Attracting customers is the
 primary goal of most facing businesses, because it is the
customer who creates demand for goods and services.
CUSTOMER
38. Are the ones who provide inputs to the business like raw
materials, tools, equipment and other inputs needed in
producing goods.
SUPPLIERS
39. Are businesses or organizations that operate in the same
industry and target the same customer base as your company.
They provide similar products or services, creating rivalry for
market share, customers, and profits. Example: In the
smartphone industry, companies like Apple, Samsung, and
Huawei are competitors, as they produce similar devices and
target the same customer segment.
COMPETITORS
40. These companies offer the same or very similar products
or services. They target the same customers. Example:
McDonald's vs. Burger King (offering similar fast food).
 Direct Competitors

41. Companies that offer alternative solutions that satisfy the

same customer need but are different from what you provide.
Example: Subway (different style of fast food, but still a
competitor in terms of convenience).
Indirect Competitors
42. Companies that are not yet in your market but could enter
in the future and become direct or indirect competitors.
Example: A new healthy fast-food chain entering the market.
Potential Competitors
43. Are products or services from a different industry that
serve the same function or satisfy the same need for
consumers. They are alternatives that can replace your
product or service. Example: For a traditional taxi service,
substitutes could include rideshare services like Uber or Lyft,
or even public transportation.
Substitutes
44. Products that can directly replace another product because
they offer the same benefits.
Close Substitutes
45. Products that provide an alternative, but the substitution is
not as close in terms of usage, features, or customer needs.
Distant Substitutes
46. Is a formal document that presents data, analyses, and
interpretations of economic conditions or trends? It generally
covers a wide range of economic indicators like GDP,
unemployment rates, inflation, interest rates, government
policies, and international trade. The goal of an economic
report is to provide insights into the economic health of a
country, region, or sector, helping stakeholders make informed
decisions.
ECONOMIC REPORT
47. Consumers' behavior towards new products and services
is a multifaceted area that explores how individuals and
 groups make decisions to adopt, use, and sometimes reject
innovations in the marketplace.
CONSUMERS
48. Are individuals or businesses that provide goods or
services to another business. They are a crucial part of the
supply chain, ensuring companies have the necessary
resources to operate and produce their own products or
services.
SUPPLIERS
49. Provide specific goods or services to businesses in
exchange for payment. They are external partners who do not
usually hold ownership stakes in the companies they supply.
SUPPLIERS
50. On the other hand, provide capital—such as money or
assets—with the expectation of earning a future return, such
as profits or an increase in equity. Investors typically become
partial owners of the business and share in both its risks and
rewards.
 INVESTORS
51. Often need capital to operate their own businesses. This
includes funds for: Purchasing raw materials, Investing in
equipment, Paying employees, Managing business operations.
SUPPLIERS
52. The payments suppliers receive from their customers (i.e.,
the businesses they supply) contribute to their working capital.
Likewise, businesses may use capital—either raised from
investors or earned from revenues—to pay their suppliers.
CAPITAL
53. Suppliers generate income by selling their goods or
services to other businesses. This income allows them to:
Cover operational costs, Reinvest in their businesses, Earn
profit.
SUPPLIERS - INCOME
54. The IS the system or group of people that governs an
organized community, often in the form of a state. It creates
 and enforces laws, provides public services, and ensures
social and economic order.
GOVERNMENT
55. refers to the funds collected by the government from
various forms of taxation, including: Income and profit taxes,
Social security contributions, Taxes on goods and services,
Payroll taxes, Property ownership and transfer taxes, Other
statutory taxes.
TAX REVENUES
56. Refers to a set of economic and humanitarian strategies
aimed at permanently lifting people out of poverty. These
strategies are applied in both developing and developed
countries.
POVERTY ALLEVIATION
57. Emphasis is placed on strengthening policies and
institutional frameworks that promote equitable access,
particularly for the poor. Areas of focus include: Water and
 sanitation, urban waste management, urban mobility and
transportation, urban energy systems.
BASIC SERVICES
58. Refers to a group of people— usually a family— who live
together and share their income and expenses. Better income
opportunities through stable jobs and businesses surely
improve people’s standard of living.
HOUSEHOLD
59. Is the most important component of aggregate demand. It
can be broken down into several categories, covering major
spending items such as transport, food, fuel, holidays, and
clothing. The pattern of spending changes over time due to
various factors such as household income, taxation and
subsidies, and relative prices.
HOUSEHOLD SPENDING
60. Generally refers to the level of wealth, comfort, goods, and
necessities available to a certain socioeconomic class within a
specific geographic area. It is typically evaluated based on
 factors such as income, and the quality and availability of
employment.
STANDARD OF LIVING
61. Based on what the public says is needed for an acceptable
standard of living.
STANDARD MIS
The Standard of Living Includes Factors Such as:
1. Income
2. Quality and Availability of Employment
3. Quality and Availability of Education
4. Poverty Rate

62. Money that an individual or business receives in exchange

for providing a good or service or through investing capital.
INCOME
63. Human resources provide an area in which to configure
employee availability. Availability works hand in hand with the
scheduling application for the generation of schedules.
 Quality and Availability of Employment
64. Is one that provides learners with Capabilities they require
to become economically productive, develop sustainable
livelihoods, contribute to peaceful and democratic societies
and enhance individual well -being.
Quality and Availability of Education
65. The ratio of the number of people (in a given age group)
whose income falls below the poverty line; taken as half of the
median household income of the total population.
Poverty Rate
66. Refers to the exchange of goods and services between
countries. It includes both exports—where a country sells
goods or services to another—and imports—where a country
purchases goods or services from another nation.
INTERNATIONAL TRADE
67. Refer to goods and services purchased by a country’s
residents from other countries. Examples include consumer
goods, raw materials, food, and specialized services.
 IMPORTS
68. Are goods and services produced in one country and sold
to buyers in another. These may include clothing, electronics,
machinery, food, and services such as banking, travel, and
tourism.
EXPORTS
69. Are groups of businesses or organizations that produce
similar types of goods or services. They are part of a country’s
economy and help provide jobs, products, and services to
people.
INDUSTRIES
70. Directly involved with natural resources. Examples: fishing,
farming, etc.
Primary Industries
71. Involve processing and transforming of raw materials
obtained from primary activities or packaging manufactured
goods.
Secondary Industries
 72. Involve selling and exchanging of goods and services
Tertiary Industries
73. Involve handling and processing of information and
knowledge.
Quaternary Industries
PRIMARY INDUSTRIES
74. Involves the catching of sea produce from oceans, rivers,
seas and lakes for sale, Some examples of produce are fish,
prawns, crabs and mussels.
FISHING INDUSTRY
75. Involves the cultivation of crops and rearing of animals for
sale. Some examples. include vegetable farming, cattle
ranching and poultry rearing.
FARMING INDUSTRY
76. Involves the felling of trees in forests for resources,
especially timber. Timber is used for shipbuilding, paper-
making and construction work.
 Forestry Industry
77. Involves the extraction of minerals, such as iron and
diamonds. Also involves the extraction of fossil fuels, such as
petroleum and natural gas.
Mining Industry
78. Process raw materials into finished goods, Transform raw
materials into usable products, Vital for national economic
growth and job creation.
SECONDARY INDUSTRIES
LIGHT AND HEAVY INDUSTRIES
79. Lower capital investment, Higher labor, Smaller, easily
transportable products.
Light Industry
80. Higher capital investment, Larger facilities, Uses large
machinery and equipment
Heavy Industries
 81. Relies heavily on human effort and workers to produce
goods or services, relative to the amount of capital equipment
used. Larger share of cost from wages/salaries.
Labor intensive industry
82. Require substantial upfront investment in physical assets
like equipment, infrastructure to operate and produce goods or
services.
Capital intensive industry

CHARACTERISTICS OF LABOR-INTENSIVE INDUSTRIES

83. Require large numbers of workers for processes
dependent on manual labor or craftsmanship.
High Workforce Requirement
84. Can quickly adjust to product or demand changes due to
the human driven workforce.
Flexibility and Adaptability
 85. Involve minimal investment in machinery and
infrastructure; primary expenses go to wages and labor
management.
Low Capital Investment
EXAMPLES OF LABOR-INTENSIVE INDUSTRIES
86. Tasks like planting and harvesting need significant human
labor, especially in less mechanized areas.
Agriculture
87. Requires hands on labor and skilled craftsmen, even with
growing mechanization.
Construction
88. (partially visible): Cutting, sewing, and finishing tasks are
labor dependent.
Textile Manufacturing
CHARACTERISTICS OF CAPITAL-INTENSIVE INDUSTRIES

89. Depend on costly equipment, automation, and advanced

technology rather than manual labor.
Heavy Machinery Usage
90. Capable of large-scale, precise, and consistent production.
Consistency and Scale
91. Require substantial capital for building or upgrading
facilities with cutting edge systems.
High Initial Investment
92. With the rapid improvements of information and
communication technology, services are increasingly traded
internationally through various modes of supply including cross
border transactions, consumption abroad, commercial
presence, and movement of natural persons.
TERTIARY INDUSTRY
93. Services cover a host of industries including wholesale and
retail industries, transportation communication, and storage
 including warehousing, hotels and restaurants, financial
intermediation, real estate and business activities, education,
and other social services, private and government services.
TERTIARY INDUSTRY
94. Involve handling and processing of information and
knowledge.
QUATERNARY INDUSTRIES
95. Is the process whereby the machine-assisted production of
goods develops greater importance in an economy or a
country.
INDUSTRIALIZATION