BESR Midterms

• Business


  Activity of making, buying, or selling goods or providing services in exchange for money.
• Business


  Amount of activity that is done by a store, company, factory, and others.
• Business came from the word Bisignes.
• Bisignes


  Care (to care for something), anxiety (to solve problems), occupation (gives occupation).
• Business


  To engage in purposeful activity.
• Business


  Organization or economic system where goods and services are exchanged for another or for money.
• Businesses can be privately owned, not-for-profit, or state-owned.
• Business Organization


  Entity formed for the purpose of carrying on commercial enterprise.
• Business can refer to:

  • An enterprise, agency, or firm
  • A particular organization or an entire market sector
  • An organization that uses economic resources to provide goods or services
• Businessperson

  • Business Aspect
  • Imitators
  • Waits for the innovation
  • Likely to play it safe
  • Motivated by the financial reward
• Entrepreneur

  • Insight Aspect
  • Innovators
  • Very observant
  • Risk-taker
  • Beyond the profit motive
• Sole Proprietorship


  Also known as solo trader or single proprietorship
• Sole Proprietorship


  Business owned by only one person who has complete control and authority.
• Advantages of Sole Proprietorship

  • Ease of formation and dissolution
  • Low startup cost and low operational overhead
  • Subject to fewer regulations and no corporate income tax
• Disadvantages of Sole Proprietorship

  • Unlimited liability
  • Limited life
  • Difficult for an individual to raise money for capital
• Partnership


  A business owned by two or more persons.
• Partnership


  With the intention of dividing the profits between themselves.
• Partnership


  Is a juridical entity registered with the Securities and Exchange Commission (SEC).
• Juridical Entity


  Has a personality distinct and separate from that of its members.
• Three most prevalent types of partnership

  1. General Partnership
  2. Limited Partnership
  3. Limited Liability Partnership
• General Partnership


  Down to the last asset.
• Limited Partnership


  Limited to the assets the business owns.
• For 4 members in a limited partnership, there could only be 3 limited partnership, 1 must be general partnership.
• Limited Liability Partnership


  Assets a business owns. Is a juridical entity.
• Corporation


  Has a separate legal entity from its owners.
• Corporation


  Composed of 5 natural persons and not exceeding 15 persons, technically called incorporators.
• Limited Liability Corporation


  Hybrid forms of business that have characteristics of both a corporation and a partnership.
• Cooperative


  Business organization owned by a group of individuals and is operated for their mutual benefit.
• Basic Classification of Business

  • Service business
  • Merchandising business
  • Manufacturing business
  • Hybrid business
• Service Business


  Provides intangible products. Offers professional skills, expertise, advice, and other similar products.
• Examples of Service Business

  • Service business
  • Financial business
  • Transportation business
  • Utilities
• Merchandising Business


  Buys a product at a wholesale price and sells the same at retail price. Also known as "Buy and Sell".
• Examples of Merchandising Business

  • Retailers
  • Distributors
• Manufacturing Business


  Buys a product with the intention of using them as material in making a new product.
• Examples of Manufacturing Business

  • Agriculture and Mining Businesses
  • Manufacturers
  • Real-estate businesses
  • Information businesses
• Hybrid Businesses


  May be classified in more than type of business.
• Purpose on Establishing Business Enterprise


  Reason you want to pursue your destiny for yourself and for the organization you will creation.
• Four main reasons of putting up a business:

  1. Money
  2. Culture
  3. Adventure
  4. Service
• Money


  A big opportunity to earn money for a successful business.
• Control


  Allows for a more personal control of an owner's financial future.