Reviewer in ECONOMICS In Economics, is the purchase of goods that

FINALS are not consumed today but are used in the

future to create wealth
Lesson 8
In Finance, is a monetary asset purchased
Market Structure – best defined as the
with the idea that the asset will provide income
organizational and other characteristics of a
in the future or appreciate and be sold at a
market.
higher price
FOUR BASIC TYPES OF MARKET
STRUCTURE
THE MAIN DETERMINANTS OF
1. PURE MONOPOLY
INVESTMENT
Market Concentration – one seller
Market Power – very high market power 1. The expected return on the Investment
Product Offering – highly differentiated 2. Business Confidence
Profitability – very high profit 3. Changes in National Income
Market Barriers – highly restricted (scale 4. Interest Rates
& legal; government barriers; capital 5. General Expectations
requirement) 6. Corporation Tax
Market Information – very limited 7. The Level of Savings
information
Accelerator Effect – states that investment
2. PERFECT COMPETITION
level are related the rate of change in Gross
MC – many sellers
Domestic Product. An increase in the rate of
MP – no market power
economic growth will cause a correspondingly
PO – homogenous
larger increases in the level of investment and
P – normal profit
vice versa.
MB – no barriers to entry & exit
MI – perfect knowledge THREE CAHLLENGES FOR THE FILIPINO
3. OLIGOPOLY ENTREPRENEURS
MC – few sellers but large scale
1. Government Licensing and Permits
MP – limited
2. Prohibitive Rental Rates and other
PO – slightly differentiated
Clauses in Malls
P – medium profit
3. There are Many Who have no jobs
MB – restricted
O – limited CURRENT PROBLEMS OF FILIPINO
4. MONOPOLISTIC COMPETITION ENTREPRENEURS
MC – few sellers but not in large scale
1. Inadequate access to technology
MP – limited
2. Financing capital
PO – differentiated
3. Marketing advice and
P – medium profit
4. Logistical problems in setting up and
MB – restricted
maintaining their competitiveness in
O – limited
their community
Lesson 9
Study by the Center for Asia Pacfic Studies
Investment reveals, “ out of every 100 children enrolled
every year, 66 will complete elementary
education, 42 will finish higscholl and only 14 1. Inadequate Incomes
will earn a college degree” 2. Low Wages
3. High Prices
Smart Communications adds, “ only 7.7% of
4. Substandard Products
graduates get employed”
5. Product Unavailability and Continuation
TYPES OF BUSINESS TAXES 6. Poverty and High Crime
1. Value-Added Tax – 12% Vat must be PRINCIPLES IN CREATING A BUSINESS
collected and are remitted to BIR on
1. Purpose – small business is the fruit of
quarterly or monthly basis and should be
a higher aim in the mind of the person
reflected in sales invoice and receipts
2. Vision – small business must manifest
2. Salary and Wages Taxes – a business
the higher purpose upon which it was
owner must remit their employees to the
seeded
proper government agencies employee
3. Big Ideas – small business is no more
income withholding taxes, SSS premium,
effective than the idea upon which it is
Pag-ibig, and Medicare. An employee must
built
also contribute and remit employer’s
4. Scalability – capability of a system,
portion to the SS and other benefits
network, or process to handle a growing
3. Amusement Taxes – tax for amusement
amount of work
businesses such as cockpits, movie
5. Growth – determination to grow
houses, cabarets, night and day club,
6. Systems – all parts contribute to the
concerts and etc.
success or failure of the whole
4. Excise Tax – business involves the
7. Sustainability – a business must be
manufacture of alcohol, tobacco, and
dynamic—able to thrive through all
petroleum products; importing of
economic conditions, in all markets,
automobile or jewelry, and mining, need to
providing meaningful, highly
pay special excise taxes.
differentiated results to all of its
5. Import Taxes – business that involves
customers
importation of good as part of the raw
8. Autonomy – business is not part of the
materials
owner’s life, but is, in fact, its own entity
6. Individual Income Taxes – personal
9. Profitability – creates an economic
income are included in the individual tax
certainty for the communities in which it
return (sole proprietorship and partnership
thrives
are also included)
10. Standards – small business creates a
7. Corporate Income Taxes – corporation
standard against which all small
pays its own income taxes as if it is a
businesses are measured as either
separate tax-paying entity
successful, or not
8. Real Estate Taxes – businesses that
owns a real estate or land must pay real SEVEN STEPS IN EFFECTIVE DECISION-
estate taxes on a quarterly basis MAKING
9. Estate or Inheritance Taxes – when you
1. Identify the Decision to be made
passed away, your heirs pay inheritance
2. Gather Relevant Information
taxes on money and property that you
3. Identify Alternatives
leave to them
4. Weigh Evidence
EFFECTS OF HIGH TAXES ON BUSINESS 5. Choose among alternatives
 6. Take Action
7. Review Decision and consequences
DECISION MAKING TOOLS
1. Decision Matrix – used to evaluate all
the options of a decision
2. T-Chart – used when weighing the
plusses and minuses of the options
METHODS OF COMPETITIVE ADVANTAGE
3. Decision Tree – involves contemplating
each option and the outcomes of each
4. Multivoting – used when multiple
people are involved in making a
decision. It helps whittle down a large
list of option into smaller one
5. Pareto Analysis – used when a large
number of decisions need to be made
6. Cost-benefit – used when weighing the
financial ramifications of each possible
alternative as a way to come to a final
decision that makes the most sense
from an economic perspective
7. Conjoint Analysis – used by business
leaders to determine consumer
preferences when making decisions
TOOLS AND TECHNIQUES IN MAKING
AN EFFICIENT BUSINESS
1. Use technology to speed up workflow
2. Shorter meetings fuel efficiency
3. Smart office space pays
4. Small changes, big savings
5. Manage staff expenses
6. Keep a firm grip on cash flow
7. Stay connected on the move
8. Use time more efficiently
9. Get the best deal on insurance
10. Do not be lax with the legal
 Weak competitions is one the
fundamental factors that explain limited
growth, productivity, and employment in
the economy
TECHICAL MARKETING TECHNIQUES
1. Create utility and Usefulness with your
product
2. Change your pricing
3. Emphasize your product’s key benefit to
the customer
4. Deliver true valued of your product to
your customer
 COST LEADERSHIP
- First competitive adv businesses
often attempt to gain
- When a business is able to offer the
same quality product as its
competitors, but at a lower price
- May be classified as an offensive
strategy
 DIFFERENTATION
- Second strategy businesses often use
to set themselves apart from
competitors.
- Low cost is only one of many possible
factors that may set aside a business
from others
- Conducting a research to determine
which things consumer find most
important
 DEFENSIVE STRATEGIES
- It allows the business to further
distance itself from its competition
by, in some snese, maintaining a
competitive advantage it has gained
- Closely related to the first two strategy
because it is a method used by
businesses to keep those
advantages in place once they have
been attained
 ALLIANCES
- Businesses that seek strategic
alliances with other businesses in
related industries
- Collusion occurs when businesses
within the same industry work
together to artificially control prices
TYPES OF BUSINESS COMPETITION LIST OF AGRIBUSINESS IN THE
PHILIPPINES
 PERFORMANCE COMPETITION
 HEAD-TO-HEAD COMPETITION 1. Hog Raising
- Controlling supplies 2. Poultry Raising
- Advertising 3. Cattle Raising
- Distribution 4. Goat Raising
 PREDATORY COMPETITION 5. Rice Farming
- Suppliers 6. Vegetable Farming
7. Fish Pens
IMPACT OF SUPPLIERS TO BUSINESS 8. Corn Farming
1. Quality – supplier can positively or Manufacturing – process of converting raw
negatively affect the quality of your materials, components, or parts into finished
product goods that meet a customer’s expectations or
2. Timeliness – their timely deliveries are specifications
crucial to how customers view your
reliability SOME BEST MANUFACTURING IDEAS
3. Competitiveness – they can give the 1. Furniture Making
one-up on your competition based on 2. Drinking Water Business
their pricing, quality, reliability, 3. Soap Manufacturing Business
technological breakthroughs and 4. Commercial Bread Baking
knowledge of industry trends
4. Innovation – they can make major MANUFACTURING THE FUTURE
contributions to your new product 1. Manufacturing’s role is changing
development 2. Manufacturing is not Monolithic
5. Finance – ability to tap into your 3. Manufacturing is entering a dynamic
suppliers from additional financing once new phase
you hit growth mode
Retail – is the process of selling consumer
Agribusiness – tends to be large-scale goods or services to customers through
business operation and may experiment in multiple channel of distribution to earn a profit
farming, processing and manufacturing and/or
the packaging and distribution of products TYPES OF RETAIL PRODUCTS

- About 12 million Filipino work in 1. Food products

Agricultural sector
- Among Indonesia, Malaysia, Thailand,
and Vietnam, only the Philippines
imported more agricultural goods
than it exported
- Four leading agribusiness provinces
are Bulacan, Laguna, Batangas
and Pampanga. Out ward
expansions are in Cavite, Rizal,
Tarlac, Pangasinan, and Quezon
2. Hard goods or durable goods hardline
retailers
3. Soft goods or consumables
4. Arts
International Trade – is the exchange of
capital, goods, and services across
international borders or territories, which could
involve the activities of the government and
individual
- Represents a significant share of gross
domestic products