Nature of Business
Quarter 3 – Lesson 1
What is
Business?
Business
Business also known as an enterprise, agency, or firm,
is an entity involved in the provision of goods and/or
services to consumers. Business can refer to a particular
organization or to an entire market sector, e.g. “the
music business”
What is
Business Ethics?
Ethics
Ethics is the study of morals and moral choices. It
focuses on standards rules and code of conduct that
govern the behavior of individuals and groups. They
give us idea about what is right or wrong, true or false,
fair or unfair.
Business Ethics
Business ethics is a specialized study of moral, right or
wrong in a business. It defines written and unwritten
codes of principles and values that govern decisions and
actions within a company. In the business world the
organizations culture sets standards for determining the
difference between good and bad decision making and
behavior.
Profit
Profit refers to the difference between the amount
received and the amount spent on something purchased,
produced, or manufactured.
THREE TYPES
OF BUSINESS
ORGANIZATIONS
THREE TYPES OF BUSINESS ORGANIZATIONS
Service Businesses
Merchandising
Businesses
Manufacturing
Businesses
THREE TYPES OF BUSINESS ORGANIZATIONS
Service Businesses
Service businesses provide services to customers rather
than products.
Examples: computer repair, laundry services, tutoring,
delivery services, wellness (such as gym or spa), etc.
THREE TYPES OF BUSINESS ORGANIZATIONS
Merchandising Business
Merchandising businesses sell to customers products
they buy from other businesses.
Examples: sari-sari stores, bookstores, department
stores, groceries, supermarkets, etc.
THREE TYPES OF BUSINESS ORGANIZATIONS
Manufacturing Business
Manufacturing businesses turn basic inputs into
products which are sold to consumers.
Examples: shoe manufacturing, baked goods, candle
manufacturing, cosmetics manufacturing, wine
production, etc.
Developing Economies
Developing economies are described as
those with average income earned, rate
of literacy and health services lower
than industrialized/developed nations.
They are so characterized because they
have a high potential for growth and for
achieving the status of developed
countries.
Early Caribbean
Economies
Early Caribbean Economies
Early Caribbean economies dated from the Taino and Kalinago Indians
are examples of a system of economics because although they lived
simple lives, this communities were ruled by a leader who organized all
economic activities.
Taino
The Taíno people, an indigenous Caribbean group, had a complex
economy based on agriculture, hunting, fishing, and trade.
Barter
The Taino people of the Caribbean engaged in a vibrant system of trade
and exchange. Barter is the exchange of goods and services for other
good or services.
Problems with the Barter System
A common measure value did not exists.
Therefore some person felt cheated, as what is being exchanged is more valuable
that what is received.
A double coincidence of wants may not exists
The wants of both persons wishing to trade must coincide with what is being offered by each
other.