Lesson 6

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Cards (20)

  • What are the ages?
    Ancient Age, Middle Age, Modern Age
  • Ancient Age started from the beginning of HUMAN CIVILIZATION and running up to the BARTER SYSTEM.
  • With the start of economic activities, resource-surplus and resource-deficit individuals were general features of the society. As a result, man started EXCHANGE OF COMMODITIES that was known as the BARTER SYSTEM.
  • The Middle Age of business extended from the barter system up to the INDUSTRIAL REVOLUTION (IR) in the 18th century.
  • Small-scale factory, production, and use of technology were general characteristics of the production process.
  • In Modern Age:
    1. Major scientific innovations transformed the manual production process into a MECHANICAL one.
    2. Introduction of CURRENCY and MULTI-NATIONAL company.
    3. ENTREPRENEURS and DIVISION OF LABOR were popularized.
  • Division of labor - is the SEPARATION of TASKS, which allows an individual to be an EXPERT in ONE THING in order to improve efficiency of society.
  • Business organization – a GROUP of individuals SYSTEMATICALLY UNITED for the accomplishment of a common purpose or undertaking for profit.
  • Roles
    1. Provide goods and services.
    2. Provide Employment
    3. Source of Government income (Taxes)
    4. Boost the Philippine Economy
  • Sole Proprietorship is a business owned by a SINGLE individual. The owner supplies his/her own capital and manages the business himself/herself.
  • Partnership is when TWO OR MORE individuals come together, contribute resources to form a business, and agree to divide the profit among them.
  • Corporation is an ENTITY that is legally recognized as SEPARATE and DISTINCT from its owners.
  • Corporations are REQUIRED to disclose their financial information to the PUBLIC by reporting their financial statement.
  • A corporation’s life is LIMITED by law to 50 years, extendible to NOT MORE THAN 50 years for each extension.
  • A stockholder MAY TRANSFER his/her share by sale of stock even without the CONSENT of other stockholders.
  • Consideration in Forming Business Organization
    1. Nature of business
    2. Capital required
    3. Tax liabilities
    4. Risk involved in partnering with people
  • Non-Profit Organization is formed to SERVE the PUBLIC PURPOSE rather than
    for financial gain.
  • Non-Profit Organization is limited to charitable, educational, scientific,
    religious, or literary purposes.
  • Cooperatives is a business owned and controlled by ALL the members of
    the business.
  • Cooperatives are individuals or companies who belong to the cooperative to join together to conduct business: to market their product, to purchase supplies, or to provide services.