Target market refers to the group of customers the business aims to cater to.

True

Production refers to the use of goods and services to satisfy human wants.

False

This involves a look at economic factors such as income of the people, specifically the target
market, economic conditions such as inflation, recession, prosperity, demand, and supply in
the market.
Economic forces

These are domestically produced goods sold to foreign countries.

Exports

The commonly accepted measure of market concentration. It is calculated by squaring the

market share of each firm competing in a market, and then summing the resulting numbers.
HERFINDAHL-HIRSCHMAN INDEX (HHI) 

The Law of Diminishing Marginal Utility states that as additional units of a good are
consumed, the additional utility derived from each additional unit tends to diminish, while
keeping consumption of other goods constant.
True

A principle or body of principles to guide decisions and achieve rational outcomes.

Policy

This includes a look at the population size, the geography of the place where business will
be located, land distribution, climate, and today’s global warming situation, whether or not
the area is prone to flood or earthquake.
Physical environment

A Business with total assets worth from P15,000,001 to P60,000,000. Large scale business is
one with total assets in excess of P60,000,000.
Medium business

Production is the transformation of inputs into outputs of goods & services.

True

An entity organized by people with similar needs to provide themselves with goods or
services or to jointly use available resources to improve their income.
Cooperative

A written estimate of anticipated government revenues and expenditures during a specific

period of time.
National budget

The Law of Diminishing Marginal Returns states that additional output starts to diminish at a
certain point as additional units of a variable input are combined with one or more fixed
inputs.

True.

It refers to goods purchased from a foreign country

Imports

Retailers are wholesalers or brokers who buy in big quantities from manufacturers, add a
mark-up to their purchase price and sell to distributors.
False

A form of business organization in which two or more persons combine their resources in a
business with a view to making profit.
Partnership

These are unprocessed goods like raw materials, logs, and wheat, they are materials
extracted from their sources and do not undergo any process of production.

Raw materials

The combined production of several units of a given set of inputs.

Total product

It refers to the additional utility derived from consuming an additional unit of the good.
Marginal utility
A form of business organization that is owned by a single individual who is singly
responsible for running the business and is accountable for all debts and obligations related
to the business.
Sole proprietorship
It is a legal entity that is separate from its owners, the shareholders. No shareholder is
personally liable for the debts, obligations or acts of the corporation.
Corporation
Consumers are a business’ source of raw materials, intermediate goods or final products
and services.

False
A Business with total assets worth from P1,500,001 to P15,000,000.

Small business
It is a tool that lists the strengths, weaknesses, opportunities, and threats that face the
business.

Swot analysis
It studies the conditions in an industry at a particular time, including the behavior of and
relations between competitors, suppliers, and customers.
Industrial analysis
The additional output produced by an additional unit of the input and is equal to TP/ i.
Marginal product
It refers to the average contribution per unit of input and is equal to TP/i.
Average product
These are semi-processed goods which are not ready for final use by the consumer, which
have undergone some processing but need to go through additional processing before they
can be actually used by the consumer. These are supplied to final good firms for conversion
into goods in their finished stage.
Intermediate goods
Consumer Theory describes how consumers make decisions about what to buy given their
income and prices of goods and services.
True
Goods that are ready for direct consumption and are then sold to customers for their use.
Final goods
A business with total assets worth below P1,500,001.
Micro business
The resources used in the production of goods & services. It refers to the use of economic
resources to create goods and services that will be used to satisfy human wants.
Inputs
It produces the intangibles supporting and complementing production in the other sectors
as well as among its own industries.
Service sector
Those that can be changed easily and on short notice.
Variable Inputs
This sector processes raw materials from agriculture, fishery and forestry into intermediate
products which are further processed into final products.
Industrial sector

Those that cannot be readily changed during the time period under consideration except at
a very great expense.
Fixed Inputs
The product created as a result of the combination of inputs in the production process.
ouput
It refers to the combined utility derived from consuming certain units of a good.
Total utility
A regular payment, usually on an hourly, daily or weekly basis, made by an employer to an
employee, especially for manual labor.
wage
An act or process of trying to get or win something over one’s rivals.
Competition