UCSP REVIEWER(economic organization)

=Economic Organization refers to the act of coordinating various factors of production – land, labor, and
capital.

*Kinds of economic org

•sole proprietorship-The oldest form of business organization, sole proprietorship is something of

a “one-man business”.

•partnership-This type of business organization is carried on by two or more men. Small scale businesses
that have expanded to the point that it may be beyond control of one man develop partnerships to
ensure better management.

•cooperative organization-Cooperative organization comes in a variety of forms. There are consumers’

cooperative, producers’ cooperatives, etc.
This form of economic organization is similar with Joint Stock Company in a
way that the capital is supplied by a large number of persons who receive
interest on other shares.

=reciprocity-the practice of exchanging things with others for mutual benefit, especially privileges
granted by one country or organization to another

Generalized reciprocity refers to an exchange that incurs no calculation of value or immediate

repayment of the goods or services. This usually happens among close kin and friends

Balanced reciprocity involves calculation of value and repayment of the goods or services
within a specified time frame
Negative reciprocity occurs when one party attempts to get more out of the exchange than the
other party.
=market transaction-Exchange of goods and services through a market is called market
transaction.

•Open-market transaction refers to a transaction in which an order is placed by an insider, after filing all
appropriate documentation, to buy or sell restricted securities openly on an exchange.

•closed-market transaction This also requires filing of appropriate

documentation to ensure the legality of the process.

☼ The Market and the state are inevitably related to one another. The
decisions made by either one of them will definitely affect the other.

☼ Redistribution economics refers to the theory, policy, or practice of

lessening or reducing inequalities in income.

☼ Transfers-payments or simply transfers are one-way payment of money for which no money, good, or
service is received in exchange.