Business- any legal and lawful activity undertaken by man or institution

3 Objectives of BUSINESS:
1. To earn profit
2. To expand the business as an economic entity
3. To improve the quality of life of beneficiaries

Business is any legal and lawful activity undertaken by man or institution to

earn profit, to expand the business as an economic entity, and to improve the
quality of life of all beneficiaries.

Beneficiaries of Business:
● Customers- they consume or use products and services intended to
other purpose
● Owners and Employees
● Community- the community where the business is situated
● Backward linkages - suppliers, banks and financial institutions.
● Forward linkages - different channels of distribution. They are the
wholesalers, retailers, authorized distributors, transporters,
employment agencies.
● National Government

Legal Business Activities:

● Service- intangible, the practice of profession
- practicing certain knowledge or skills.
● Trading - or merchandising, buy and sell.
● Manufacturing- tangible
- you produce your own product.

3 Business organization
● Sole proprietorship- man or 1 owner
● Partnership- institution, minimum of 3
● Corporation- institution, minimum of 5
● *Cooperative- 15 or more

Undertaken by MAN or INSTITUTION - pertains to the form of business

Undertaken by MAN - for SOLE PROPRIE TORSHIP
Undertaken by INSTITUTION - the business has separate or different
juridical personality from its owners.

Product- anything that satisfy human wants,

MICRO business- composed of 1-9 employees
SMALL business- 10 employees

A business must be legal and lawful. It must be registered with government

agencies

Legal and lawful= Legal procedures in organizing a business:

1. DTI (Department of Trade and Industry)- SOLE
PROPRIETORSHIPS
*legal age, Filipino citizen, Police clearance, NBI
SEC (Securities and Exchange Commission)- PARTNERSHIP and
CORPORATON
*legal age
*Partnership- need articles of agreement partnership
*Corporation- need articles of incorporation= all details
*60%/40%- Filipino investors/ citizen except media
CDA (Cooperative Development Authority- COOPERATIVE= 15 or
more

2. BIR (Bureau of Internal Revenue)- to secure TIN (Tax Identification

Number)

3. SSS (Social Security System)- national insurer of private sector

PAG-IBIG (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya
at Gobyerno)- for housing loans, house purchase,
multipurpose loans.
- repayment depends on income and age
PHILHEALTH (Philippine Health Insurance Corporation)- all
business must be registered.

4. DOLE (Department of Labor and Employment)

MSMEs (Micro, Small and Medium enterprises)
Micro-1-9 employees
Small business- 10 employees.
*70/30 means 70> of your employees should be a resident within
your barangay.
*DOLE lends extra capital to MSMEs

5. Government Regulatory Agency - all business supervised by GRA. It

depends on type of business. Example:
▪ LTO (Land Transportation Office)
 ▪ CHED (Commission on Higher Education)
▪ LTFRB (Land Transportation Franchising and Regulatory
Board)

6. Mayor's office/ Municipal/ City business licensing office- for securing

MAYOR'S PERMIT.

Entrepreneurship- is about disrupting existing business

- it is about innovating business in any of aspects of
business operations.
7Ms- Aspects (resources):
1. Men- HRM
2. Money- FM
3. Materials- OM
4. Machines- OM
5. Methods and processes- OM
6. Market segmentation- Marketing Management
7. Moment- Time Management

Operative Functions - functions that are inherent in certain aspects of business.

5 Universal Functions - POSDICON

7Ms- Resources of a BUSINESS:

a. Men - or People or Human Resource. (HRM)
Operative Functions:
1. Procurement- process of recruitment, selection, and placement of
personnel.
● Recruitment- process of inviting /finding applicants to apply
for any vacant position in the organization.
● Selection- getting the best or the most qualified from the rest
of the applicants.
● Placement - putting the right man on the right job.
2. Training and Development
3. Compensation
4. Integration- placement
5. Maintenance
*to earn profit, minimize expense

b. Money- for capital, it is the lifeblood of any organization= (FM) financial

management.
Operative Functions:
 1. Allocation of funds (budget)
2. Sourcing of funds
3. Efficient and effective utilization of funds
c. Materials- raw material
d. Machines- equipment
e. Methods and processes- technology (Operation Management)
Operative Functions:
- TO CREATE PRODUCT (G/S)
- to come up with something new, to improve, it encompasses
improvement.
- to create product:
1. In right quantity
2. In right quality
3. At the right time
4. In the most economical way
f. Market- customers, marketing (MM) -to help the business to transfer the
product to your target market
Operative Functions:
1. Quality product
2. Reasonable Price
3. Accessible Place
4. Effective Promotion
g. Moment- Time Management- is corporated with all principles of
management

Management- is a distinct process of PLANNING, ORGANIZING,

STAFFING, DIRECTING, and CONTROLLING.
- Performed to set and attain objectives through the use of people
and other resources of the business.

*IRA- Internal Revenue Allotment

*Business- Backbone of the economy

POSDICON
PLANNING- setting things in order.
- It is an executive effort by which you put things first in order
before doing anything else in the business.
OUTPUTS of PLANNING.
● Vision
● Mission
● Goals and Objective
 ● Rules
● Policy
● Procedure
● Marketing Plan
● Operational Plan
● HRM Plan
● Budget

*the basis of controlling is planning.

ORGANIZING- put into systematic relationship all of the resources of

business or elements of management.
STAFFING - about recruitment, selection and placement
DIRECTING- motivation, communication and leadership
CONTROLLING- measurement of performance. It is a process to control and
exercise control function management

Technopreneurship- innovating the business in technology based

Business/ firm- basic producing unit

Customers- basic consuming unit