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Chapter 1

The Nature and Aims of Business

.The Philippine Economy • Always been saddled with difficulties which appeared to be insurmountable: • • • • Low productivity in the workplace Graft and corruption in the government Declining value of peso Unfavorable balance of trade • In spite of the great obstacles hampering the economic growth. the Philippine economy continues to slowly grow but it does not fare well if compared with other countries in the Far East.

.The Philippine Economy • Business success has always been associated with economic growth. • A major reason for business failure is the businessman’s lack of sufficient skills in managing finance.

• Business continues to provide mankind with the basic necessities like food and shelter. .The Roles of Business • Business is largely responsible for bringing into the market a wide array of products and services which were not previously available. • Business entities are means to develop a countries economy.

.Business Defined • Business is any lawful economic activity concerned with the production and/or distribution of goods or services for profit.

Kinds of Business • Commerce • Industry • Services .

Kinds of Business Business Commerce Industry Services Trading Buy and Sell Merchandising Marketing Genetic Finance Assembling of Goods Extractive Recreation Grading Manufacturing Personal Warehousing Construction Transportation Insurance and Financing .

and highways. forestry. dams.Kinds of Business Industry • Genetic industries are businesses involved in • • agriculture. and fish culture. and fishing. Extractive industries are businesses involved in the extraction of goods from natural resources which includes mining. lumbering. hunting. Construction industries consist of firms engaged in building infrastructures like airports. • . Manufacturing industries are those which convert raw materials into finished products. seaports.

) • Finance (i.Kinds of Business Services • Recreation (i. television and radio stations. credit unions. barber shops. restaurants. theater for drama and stage presentations. investment houses. insurance companies. etc. etc.e.e. transportations. tailoring shops. savings and loans associations. movie houses. etc. such as banks. hotels.) • Personal (i. financing institutions.) .e.

Objectives of Business • Primary objective is for profit. 3. Political influence Family control of the business Community involvement . 2. • Other goals could be: 1.

The satisfaction of personal objectives like: Profits for owners Adequate salaries and compensation for executives and employees Psychic income for all. Protection and enhancement of the human and physical resources of society Economy and effectiveness of operation . b. including pride in work. c. security.Objectives of Business • To survive and grow. recognition. businesses must attain the following objectives: 1. and acceptance 3. 4. 2. The provision of products and services to the community. a.

Medina Quiz Review on Chapter 1 Assignment 1.Next Meeting Readings Chapter 2 of Business Finance. Why do persons engage in business? 2. How do you determine the feasibility of a business? . Second Edition by Roberto G.