Chapter 1

OVERVIEW OF
BUSINESS

Gabriel M. Catabay
Instructor
What comes into your
mind?
BUSINESS
What is Business?
any lawful activity (legal) concerned with the
production and distribution of goods and services for
profit.
- Whether or not it actually makes profits is
immaterial, an entity is still a business if its objective
is to make profits.
- taxable
Largely responsible in bringing
into the market a wide array of
products and services which
were not previously available.
Which of the following maybe classified as business? Why?

• A tailoring shop
• A scholarship foundation
• An ice cream parlor
• A university owned by church
• An agricultural farm
• A consumer’s cooperative
• A marijuana plantation
• A firm engaged in reproduction of VCD movies without
license from the original copy
KINDS OF BUSINESS

C I S

COMMERCE INDUSTRY SERVICE

 COMMERCE
business firms which are engaged in the buying and
selling of goods and services.

Also included are trading, merchandising and marketing.

supermarket, dry goods store, peddlers, sari-sari stores

importers.
 INDUSTRY
are those which are mainly concerned
with production.
Goods produced are those intended for ultimate
consumption which is called Consumers Good
those intended for use of business and industry
which are called producers goods
 KINDS OF INDUSTRY

involved in agriculture,
Genetic
forestry and fish culture.

involved in the extraction of

Extractive goods from natural resources

those which convert raw

Manufacturing
materials into finished
products.
Construction consist of firms engaged in
building infrastructures
 SERVICE

business which sells service to

the buyers.
Recreation movie houses, television and
radio stations
restaurants, barber shops,
Personal transportations, hotels,
tailoring shops
Finance banks, insurance companies, investment
houses, financing institution.
Multiple objectives of Business

01 Provision of products and services

to the community

Personal Satisfaction
02
Protection and enhancement of the
03 human and physical resources of
society
Economy and effectiveness of
04 operation
Reasons why people engage in business
Provision of employment to people
Profits
Service to the community
Personal Satisfaction

Means to earn a living

Achievement of power
Protection of one’s self and family
Common Reasons of Business Failure

03
02 Poor
Inadequate
Marketing
Location 04
Failure to invest in
new product
01 and efficient
technology
Bad or improper 05
management Lack of
adequate
financing