BUSINESS
~Defined as all PROFIT-SEEKING activities and enterprises that provides GOODS AND SERVICES (Product) necessary to an economic system.
PROFIT
~The residual amount after deducting all expenditure to the revenue.
~Refers to the rewards for business persons who take the risks involved in producing and marketing goods and services.
~Considered as the PRIMARY GOAL and reasons of /for business.
KINDS OF BUSINESS
1. Commerce
2. Industry
3. Services
COMMERCE
~Business firms, which are engaged in buying and selling of goods and services.
~Some Classification
-Trading
- Merchandising
- Marketing
Ø Sample business
o Supermarkets
o Dry good stores]
o Peddlers
o Sari-sari stores
o Importers
INDUSTRY
~Industries are those, which are mainly engaged in production
~Some Types of Good Produced:
1 Consumer Goods
§ Goods which are intended for the final and ultimate consumption.
2 Producers Goods
§ Goods intended for use of business and industry.
Ø Some Classification
~Genetic industries
§ Those involved in agriculture. Forestry and fish culture.
3 Extractive Industries
§ Those involved in the extraction of goods from natural resources, which includes mining, lumbering, hunting, and fishing.
4 Manufacturing Industries
§ Those involved in the conversion of RAW MATERIAL to finished product.
5 Construction industries
§ Those engaged in building infrastructure like airports, seaports, highways and the likes.
SERVICES
Ø Those which sell service to the buyers.
Ø It is considered as INTANGIBLE PRODUCTS.
Ø Same Classification
o Recreation
§ Those engaged in giving entertainment and pleasure.
§ Example
· Movie houses
· Resorts
· Televisions and radio station
o Personal
§ Those who renders services directly to the consumers
§ Example
· Restaurants
· Barbers shops
· Transportation
o Finance
§ Those who provides financial advices, consultancy and services.
§ Example
· Banks
· Insurance
· Investment firms
· Accounting firms
