CHAPTER 2

NATURE OF BUSINESS

Reporter: Sharmaiynne Lou M. Dampil

BUSINESS AS A ECONOMIC FUNCTION
• Business is seen as an economic
function, that is, constituting
functional areas where the
fundamental social process is given
expression.
• Business encompasses subjects such
as the concept of scarcity, product
factors, distribution, and
consumption.
• This is the integration of economic
theory with business practice for the
purpose of facilitating decision
making and forward planning by
management.
BUSINESS AS A CORPORATE ACTIVITY

• Business as a corporate level has a

two role . The role as a company to
provide its core services and human
need satisfaction. And the role as
businessman to provide his personal
core service in order to achieve his
ultimate goal which is to earn profit.
 BUSINESS
NOTIONS FROM
THE
PHILOSOPHERS
PLATO ( 427-347 B.C.)

• HIS REAL NAME IS ARISTOCLES.

• HE WAS A POET, A PLAYWRIGHT, AN
OBSERVANT TRAVELER, A PHILOSOPHER
AND A LITERARY STYLIST
• HE IS A STUDENT OF SOCRATES

“A STATE ARISES, AS I CONCEIVE, OUT OF THE

NEEDS OF MANKIND; NO ONE IS SELF-
SUFFICING, BUT ALL OF US HAVE MANY
WANTS.”
ARISTOTLE ( 384 – 322 B.C.)

• A STUDENT OF PLATO.
• TEACHER OF ALEXANDER THE GREAT.
• FOUNDED THE LYCEUM.

“THE MOST HATED SORT, AND THE MOST UNNATURAL

MODE ,IS USURY, WHICH MAKES A GAIN OUT OF
MONEY ITSELF, AND NOT FROM THE NATURAL OBJECT
OF IT. FOR MONEY WAS INTENDED TO BE USED IN
EXCHANGE, BUT NOT TO INCREASE AT INTEREST.”
ST. THOMAS AQUINAS (1225 – 1274)

“A TRADESMAN IS ONE WHOSE BUSINESS CONSISTS

IN THE EXCHANGE OF THINGS”

1. THE NATURAL EXCHANGE IS WHERE ONE

COMMODITY IS EXCHANGED FOR ANOTHER, OR
MONEY TAKEN IN EXCHANGE FOR THE
COMMODITY IN ORDER TO SATISFY THE NEEDS OF
LIFE.

2. THE OTHER KIND OF EXCHANGE IS EITHER OF

MONEY FOR MONEY OR OF COMMODITY FOR
MONEY , NOT ON ACCOUNT OF THE NECESSITIES
OF LIFE BUT FOR PROFIT.