Applied Economics (finals)

• Industry - aggregation of different businesses engaged in same kind of undertaking.
• Business - undertaking by a person or group of persons, and small portion of industry.
• Types of Business Organization

  • Sole Proprietorship
  • Partnership
  • Corporation
  • Cooperative
• SWOT- it is essential that an industry analysis first be made.
• Sole Proprietorship - owned by a single person.
• Partnership - agreement in two or more person
• Two Kinds of Partnership

  • The general partnership
  • The limited Partnership
• General Partnership - all owners share the management of the business
• The Limited Partnership - some members are general partner who control the business
• According to Nature of contribution to the Partnership

  1. Capitalist Partner
  2. Industrial Partner
• Capitalist Partner - contributes money or property
• Industrial Partner - contributes industry or personal service
• Corporation - legal entity that is separate from its owner, gives an individual identity of its own. it is also normally exist for a life of 50 years
• Cooperative - entity organized by people with similar needs
• Strength and Weakness - refers to the internal factors
• Opportunities and threats - refers to the external forces.