SENIOR HIGH SCHOOL

Applied Economics
Viability and Impacts of
Business on the Community

Writer:
CINDY M. RONQUILLO
T-III, SHS IN APALIT (STAND ALONE 1), Cluster VI
Editors:
JANE P. VALENCIA, EdD – Math/ABM Supervisor
CHAIRMAN
KARINA B. HERNANDEZ – Teacher III
 What I Need to Know

This module was designed for you to be able to learn how to evaluate the viability
The lessons are arranged to follow the standard sequence of the course. But the order in
which you read them can be changed to correspond with the textbook you are now using.

The module has one lesson, namely:

Lesson 1: Evaluate the Viability and Impacts of Business on the Community

After going through this module, you are expected to:

 identify and explain the effects of the various socio-economic factors affecting business and
industry and
 identify and evaluate the viability and impacts of business in the community.

What I Know

Choose the letter of the best answer. Write the chosen letter on a separate sheet of paper.

1. The amount of money individuals earn from their daily economic activities, be it
employment, business or investments:
a. Income c. Wage
b. Salary d. All of the above
2. This is the goal of most enterprise which is to be environmentally sound and socially
responsible
a. Flexibility c. Sustainability
b. Profitability d. Viability
3. It is defined as the ability to survive which linked to financial performance.
a. Flexibility c. Stability
b. Durability d. Viability
4. This relates to changes in government influence means _______________.
a. Economic Change c. Environmental Change
b. Political Change d. Government
5. They are the key contributor to innovation and product development.
a. Entrepreneurs c. Importer
b. Exporter d. Supplier
6. This includes geographical location, the climate, weather and other factors that affect
industry.
a. Environmental Factor c. Government
b. Political Change d. Changes in Technology
7. A viable business has great effects to the community; which of the following statement
is not true?
 a. It provides jobs to the community
b. It produces taxable income
c. It does not provide opportunities for the people in services such as social welfare
d. It improves community life
8. The creation of new technology in terms of databases and electronic communications
allowed vast quantities of information to be shared and quickly distributed enabled the
company to reduce cost and improve service, this is the effects on business in terms of:
a. Environmental Factor c. Government
b. Political Change d. Changes in Technology
9. Across the globe, businesses expect companies to maintain strong _________________.
a. Ethical Standards c. Norms and Rules
b. Mode of Conduct d. Regulations
10.This factors affecting industry includes social relate to pattern of behavior, tastes and
lifestyles.
a. Environmental Factor c. Government
b. Economic Changes d. Social Environment
11.The following are major contributions of business and industry to society. Which of the
following statements is not true?
a. It provides jobs in the community
b. It produces taxable income to for the community
c. It does not helps in the improvement of community life
d. It does not support long term social development
12. Viability is defined as the ability to survive. In the business sense, that ability to
survive is not linked to financial performance and position.
a. Both statements are True.
b. Both statement are False.
c. The first statement is True; the second statement is False.
d. The first statement is False; the second statement is True
13. Refers to the type of jobs people perform by virtue of their skills, experiences and
choices.
a. Blue Collar c. Occupation
b. White Collar d. Profession
14.These are characteristics that define the quality of life in a society.
a. Government Factor c. Political Factors
b. Economic Factors d. Socioeconomic Factors
15.Business and industries are affected through regulations and policies set by
______________.
a. Consumer c. Supplier
b. Government d. Households
 Lesson Evaluate the Viability and
1 Impacts of Business on the
Community
Business plays a huge role in the society. It not only takes up the most amount of
time in people lives but it also help create innovations and make important
technological advancements. It makes forward thinkers and dreamers turn visions
into reality. Making people lives easier.
Only when companies are profitable can they contribute effectively to society by
creating jobs and economic development. It cannot be assume that companies adopt
a responsible business conduct. However, corporate social responsibility can
contribute to the success of business and betterment of society.
As you go through the lesson you will learn how business affects society. In turn,
evaluate business viability and its effect on the community.

What’s In

In the previous lesson, you have learned about how business and industry
affects various socioeconomic factors. As you start a new lesson about evaluate the
viability of the business and impacts of business in the community, I want you to do an
activity. Complete the Concept Map below by writing the words Viable Business and
write the qualities of a viable business

Viable Business
 Notes to the Teacher
The teacher should encourage the learners to read books in
Economics. This will help them to easily understand the lesson.

What’s New
Now, to understand the lesson about other socio economic factors affecting
business and industry and lastly, business viability and its effect in the
community, let us read the lyrics of the famous song of Asin, legendary Pinoy Rock
Band in 1970 entitled “ Masdan Mo ang Kapaligiran “.

Wala ka bang napapansin

Sa iyong mga kapaligiran?
Kay dumi na ng hangin
Pati na ang mga ilog natin

Hindi na masama ang pag-unlad

At malayu-layo na rin ang ating narating
Ngunit masdan mo ang tubig sa dagat
Dati'y kulay asul ngayo'y naging itim

Ang mga duming ating ikinalat sa hangin

Sa langit huwag na nating paabutin
Upang kung tayo'y pumanaw man
Sariwang hangin sa langit natin matitikman

Activity. Think Beyond. Answer the following questions.

1. What is the message of the song?
________________________________________________________________________
________________________________________________________________________
2. If you are the owner of a business industry, what can you recommend
about the environmental problem because of industry?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
 What is It

This part of the module is the lesson proper. Now, I want you to be ready and we
will now begin the lesson:

Socioeconomic Factors Affecting Business and Industry

Socioeconomic factors are characteristics that define the quality of life in a
society. They influence the behaviours, attitudes, trends, tastes and lifestyles of
individuals. In fact, the different class segments of the society – that is, upper
class, middle class, lower class, - are attributable to the socioeconomic factors.
Education, income and occupation are the main parameters of socioeconomic
status, according to the American Psychological Association.
Income
Income is the amount of money individuals earn from their daily economic
activities, be it employment, business or investments. The availability of disposable
income (net income after tax) influences spending habits. Your customers are likely
to purchase expensive or luxurious items whenever there is an increase in their
disposable incomes. However, when income is scarce, customers tend to restrict
their spending to essential items.
Education
Education equips members of the society with the skills and knowledge they
require to be employed in different jobs and professions. The standards of
education in your society depend on the availability and accessibility of educational
amenities. A society that has a well– educated population flourishes because
individuals are employable in well–paying jobs. Education further determines the
availability of skilled workforce when seeking employees for your small business.
Occupation
Occupation refers to the type of jobs people perform by virtue of their skills,
experiences or choices. You may be self–employed or work as an employee of an
individual or organizational entity. The different types of occupation dictate the
income earned by people in the society. High salaried individuals are normally
associated with skilled occupations such as, doctors, engineers, lawyers and
accountants. Self – employed individuals owning successful businesses also
generate huge amounts of income. Unskilled occupations such as menial labor do
not pay much. Therefore, the ability of customers to afford the different products
you offer in your business depends on types of their occupation.
Note:
Other It is important
Factors AffectingtoBusiness
considerand
the Industry
implications of these socioeconomic factors on
your small business. Your decisions should be sensitive to the prevailing economic
Aside from thewhen
conditions different factors
pricing and mentioned above
stocking your here under are other factors affecting
business.
businesses and industry.

1. Economic Conditions- Before creating business plans or when evaluating existing

ones it is important to ‘scan’ the external environment. Is the environment
Business Viability and Its Impacts on the Community
The goal of community sustainability is to establish local economies that are
economically viable, environmentally sound and socially responsive. Achieving this goal
requires participation from all sectors of the community, both to determine community
needs and to identify and implement innovative and appropriate solutions. Business
sustainability is a goal for most enterprises. Sustainability in business generally
addresses two main categories which are the effect business has on the environment and
HERFINDAHL – HIRSCHMAN INDEX (HHI)
As a final note to help guide the proponents of a business proposal in choosing what type
of industry to enter, the use of the Herfindahl – Hirschman Index – HHI would be useful
since it helps the proponent identify markets are highly competitive and saturated and
those markets with high market concentration.
The HHI is a commonly accepted measure of market concentration. It is calculated
 What’s More

To gain better understanding about the lesson, l want you to answer the activities
below:

Activity 1: Matching Type

Directions: Choose the letter of the correct answer from the list of words in
the box and write it in blank space provided.
 a. HHI f. Socioeconomic Factors
b. Income g. Technology
c. Viability h. Taxes
d. Education i. Entrepreneurs
e. Economic j. Sustainable

_______1. Changes in interest rates, wage rate and inflation rates are example
of _____________ changes.
_______2. Smart phone is an example of _________________.
_______3. Business is _________________ when it is economically viable,
environmentally sound and socially responsible.
_______4. Business contributes to government by paying __________.
_______5. Business ______________ are innovators.
_______6. These influence the behaviours, attitudes, trends, tastes and
lifestyles of individuals.
_______7. It equips members of society with knowledge, skills to be
employed in different jobs.
_______8. It is defined as the ability to survive which linked to financial position.

_______9. The amount of money individuals earn from their work, business
or investments
_______10. Commonly accepted measure of market concentration

Activity 2. Essay Questions.(15 pts/ 5 points each)

Rubrics: (Focus-3 pts; organization-2pts.)

Explain the effects of business and industry on the following socioeconomic

factors?

1. Education-

2. Income-

3. Occupation-
 What I Have Learned

Now, after discussing the lesson. I want you to answer the make a Reflection Paper
to test your in depth understanding about the lesson.

Rubric: 12 pts. Reflective Thinking (4-1pt.);Analysis (4-1 pt.); Making Connections (4-1pt.)

Business Viability and its Impact on the Community

What I Can Do

Since this is you last module on Applied Economics, you are give a task to apply
what you have learned. Please read the instructions carefully.
APPLICATION. Research on business opportunities. Look for a business where the
industry is not yet saturated with so many firms. You can apply the Herfindahl –
Hirschman Index discussed in the chapter. Once you have identified a business,
prepare a simple Business Proposal.
The BUSINESS PROPOSAL should include the following:
a. Introduction/Company background
b. Vision Statements
c. A description of the good or service to be offered;
d. Target market of your product
e. Proposed location and reason for the choice of this location;
f. Long – term objectives of the business;
g. Estimated capital requirements;
h. Sources of the capital;
i. Form of business organization: Sole proprietorship, Partnership, or
Corporation
j. Suggested pricing for the product or service;
k. Mode of promotion or advertising used;
l. Technical requirements: Machines, Building, Tools needed; and
m. Socio economic Impact: Positive Effects of the Project and Negative Effects of
the Project.
RUBRIC FOR SCORING
Excellent- Very Good Good Poor
5 4-3 2 1-0
Introductory Elements
Vision
Statements/Objectives
Business Description
Products/Services
Marketing
Industry Analysis
Technical
Requirement
Socio Economic
Impact
Writing Skills

Additional Activities

You are now on the last part of the module. Congratulations! You only have
one task left in finishing the module: enrichment activity. You can start now!
COMMUNITY ICONS
Directions. Choose an entrepreneur who is well known for his/her
advocacies and write a report in a short bond paper. Below are guide
questions for your reference.
GUIDE QUESTIONS
1. Tell me about yourself?
2. How did the idea of your business came about?
3. How do build a successful business?
4. What is your advocacy? Why is this important?
5. What do you consider your most noteworthy accomplishments?
RUBRIC 20 pts
Excellent (5) Very Good (4-3) Good (2) Poor(1-0)

Completenes
s
Knowledge

Analysis

Writing Skill
 Answer Key

References:
Dinio and Villasis 2017: Applied Economics. Rex Bookstore, First
Edition.
Leano, Roman D. 2016: Applied Economics for Senior High School.
Mindshapers Co., Inc.
https://en.wikipedia.org/wiki/Asin_(band)
 Development Team of the Module
Writers:Cindy M. Ronquillo
Editors:Jane P. Valencia Ed.D, ABM Supervisor
Karina B. Hernandez, Teacher III
Reviewers: Leilane B. Barawid
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