module fundamentals of business and economics

8/8/2019 Module Fundamentals of Business and Economics

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MODULE

FUNDAMENTALS OF BUSINESS AND ECONOMICS

What this module is about

Hello! We see each other again, my dear student! I hope you willfind this module interesting. This module will gain your knowledge aboutENTREPRENEURSHIP it is a career in business that offers wide range of opportunities. Develop your personality and traits for entrepreneurshipand you are ready to face the road of success.

What you are expected to learn

In this module you are expected to

1. Know the meaning of business.2. Identify the profit organization and non-profit organization.3. Identify the goods-producing business and service business.4. Know the meaning of economics.

5. Identify the microeconomics and macroeconomics.6. Discuss the types of economic system.

How to learn from this module

Id like you to picture out in your mind that you have a company. Do you have astrong desire to build up your own company?


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In this module you will know the fundamentals of business and economics for you to know what is the basic in taking up into business world. These will help you togain more knowledge.

Answer the activities and self-check exercises honestly. Do not look at the key tocorrection. Always remember that Honesty is the best policy. Let us work and helpeach other!

Pretest

Direction: Read each item carefully and select the best answer by writing its letter in your paper.

________1. It is exist to fulfill a need, and provide investors a return from company

income after expenses and taxes are paid.

a. profit

b. business

c. economics

d. microeconomics

________2. In every business must have one or more owners whose primary role is to

invest money in the business.


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a. participants

b. management

c. operations

d. marketing

________3. _________ involves planning for, obtaining, and managing a companys

funds.

a. finance

b. accounting

c. marketing

d. operations

________4. It is an organization that does not distribute its surplus funds to owners or

shareholders, but instead uses them to help pursue its goals.

a. profit organizationb. macroeconomics

c. business

d. non-profit organization

_______5. It is a businesss create, build, or produce objects of all sizes and forms.

a. service producing

b. retailer

c. ecommerce

d. goods-producing
http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Organization


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LESSON 1

FUNDAMENTTALS OF BUSINESS AND ECONOMICS

Businesses exist to fulfill a need, and provide investors a return from company income

after expenses and taxes are paid. This remaining money is profit .

A business is any activity that provides goods or services to consumers for the purpose of

making a profit. When Steve Jobs and Steve Wozniak created Apple Computer in Jobss family

garage, they started a business. The product was the Apple I, and the companys founders hoped

to sell their computers to customers for more than it cost to make and market them. If they were

successful, theyd make a profit .

Before we go on, lets make a couple of important distinctions concerning the terms in our

definitions. First, whereas Apple produces and sells goods (iPhone, iPod, Mac), many businesses

provide services . Your bank is a service company, as is your Internet provider. Airlines, law

firms, movie theaters, and hospitals are also service companies. Many companies provide bothgoods and services. For example, your local car dealership sells goods (cars) and also provides

services (automobile repairs).

Second, some organizations are not set up to make profits. Many are established to provide

social or educational services. Such not-for-profit (or nonprofit) organizations include the

United Way of America, Habitat for Humanity, the Boys and Girls Clubs, the Sierra Club, the

American Red Cross, and many colleges and universities. Most of these organizations, however,

function in much the same way as a business. They establish goals and work to meet them in an

effective, efficient manner. Thus, most of the business principles introduced in this text also

apply to nonprofits.


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Business Participants and Activities

Participants

Every business must have one or more owners whose primary role is to invest money in the

business. When a business is being started, its generally the owners who polish the

business idea and bring together the resources (money and people) needed to turn the

idea into a business. The owners also hire employees to work for the company and

help it reach its goals. Owners and employees depend on a third group of participants customers . Ultimately, the goal of any business is to satisfy the needs of its

customers.

Functional Areas of Business

Hospitals specialize in an intangible producthealth care.

The activities needed to operate a business can be divided into a number of functional areas :

management, operations, marketing, accounting, and finance. Lets briefly explore each of these

areas.

Management

Managers are responsible for the work performance of other people. Management involves

planning for, organizing, staffing, directing, and controlling a companys resources so that it can


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achieve its goals. Managers plan by setting goals and developing strategies for achieving them.

They organize activities and resources to ensure that company goals are met. They staff the

organization with qualified employees and direct them to accomplish organizational goals.

Finally, managers design controls for assessing the success of plans and decisions and take

corrective action when needed.

Operations

All companies must convert resources (labor, materials, money, information, and so forth) into

goods or services. Some companies, such as Apple, convert resources

into tangible productsiPhones, iPods, Macs. Others, such as hospitals, convert

resources into intangible productshealth care. The person who designs and oversees

the transformation of resources into goods or services is called an operations

manager . This individual is also responsible for ensuring that products are of high

quality.

Marketing

Marketing consists of everything that a company does to identify customers needs and design

products to meet those needs. Marketers develop the benefits and features of products, including

price and quality. They also decide on the best method of delivering products and the best means

of promoting them to attract and keep customers. They manage relationships with customers and

make them aware of the organizations desire and ability to satisfy their needs.

Accounting

Managers need accurate, relevant, timely financial information, and accountants provide it.

Accountants measure, summarize, and communicate financial and managerial information and

advise other managers on financial matters. There are two fields of accounting. Financial

accountants prepare financial statements to help users, both inside and outside the organization,


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assess the financial strength of the company. Managerial accountants prepare information, such

as reports on the cost of materials used in the production process, for internal use only.

Finance

Finance involves planning for, obtaining, and managing a companys funds. Finance managers

address such questions as the following: How much money does the company need? How and

where will it get the necessary money? How and when will it pay the money back? What should

it do with its funds? What investments should be made in plant and equipment? How much

should be spent on research and development? How should excess funds be invested? Good

financial management is particularly important when a company is first formed, because new

business owners usually need to borrow money to get started.

Business and Its Environment


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External Forces That Influence Business Activities

Apple and other businesses dont operate in a vacuum: theyre influenced by a number of

external factors. These include the economy, government, consumer trends, and public pressure

to act as good corporate citizens. Figure Business and Its Environment sums up the

relationship among the participants in a business, its functional areas, and the external forces that

influence its activities. One industry thats clearly affected by all these factors is the fast food

industry. A strong economy means people have more money to eat out at places where food

standards are monitored by a government agency, the Food and Drug Administration.

Preferences for certain types of foods are influenced by consumer trends (eating fried foods

might be okay one year and out the next). Finally, a number of decisions made by the industry

result from its desire to be a good corporate citizen . For example, several fast-food chains have

responded to environmental concerns by eliminating Styrofoam containers.

Profit organization


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A business or other organization whose primary goal is making money (a profit ), as opposed to

a non profit organization which focuses a goal such as helping the community and is concerned

with money only as much as necessary to keep the organization operating .

Most companies considered to be businesses are for profit organizations ; this includes anything

from retail stores to restaurants to insurance companies to real estate companies.

The goal of earning a profit is a profit motive . Without a chance to earn a profit businesses have

no incentive for innovation and improvement.

A non-profit organization (abbreviated as NPO , also known as a not-for-profit organization )

is an organization that does not distribute its surplus funds to owners or shareholders, but instead

uses them to help pursue its goals. Examples of NPOs include charities (i.e. charitable

organizations ), trade unions and public arts organizations. Most governments and government

agencies meet this definition, but in most countries they are considered a separate type of

organization and not counted as NPOs. They are in most countries exempt from

income and property taxation. Nonprofit organizations include schools, libraries, government

agencies, and museums. They do not have a profit motive, but they bring in revenue just like thefor-profit businesses. Fund raising, donations, and grants are some of ways nonprofit

organizations receive revenue. Both nonprofit and profit-seeking companies must have resources

to produce goods and services. There are five economic resource types, also called factors of

production , used to produce goods and services: natural resources , human resources capital,

entrepreneurs, and knowledge .

Non- profit distinction

Ownership is the quantitative difference between for- and not-for-profit organizations. For-profit

organizations can be privately owned and may re-distribute taxable wealth to employees

and shareholders . By contrast, not-for-profit organizations do not have private owners. They

have controlling members or boards, but these people cannot sell their shares to others or

personally benefit in any taxable way.
http://www.businessdictionary.com/definition/business.htmlhttp://www.businessdictionary.com/definition/primary.htmlhttp://www.businessdictionary.com/definition/goal.htmlhttp://www.businessdictionary.com/definition/money.htmlhttp://www.businessdictionary.com/definition/profit.htmlhttp://www.investorwords.com/3331/non_profit_organization.htmlhttp://www.businessdictionary.com/definition/community.htmlhttp://www.investorwords.com/3455/operating.htmlhttp://www.businessdictionary.com/definition/company.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.investorwords.com/4228/retail.htmlhttp://www.businessdictionary.com/definition/stores.htmlhttp://www.investorwords.com/6843/insurance_company.htmlhttp://www.businessdictionary.com/definition/real-estate.htmlhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Charitable_organizationhttp://en.wikipedia.org/wiki/Charitable_organizationhttp://en.wikipedia.org/wiki/Trade_unionhttp://en.wikipedia.org/wiki/Arthttp://en.wikipedia.org/wiki/Income_taxhttp://en.wikipedia.org/wiki/Property_taxhttp://en.wikipedia.org/wiki/Workerhttp://en.wikipedia.org/wiki/Shareholdershttp://www.businessdictionary.com/definition/business.htmlhttp://www.businessdictionary.com/definition/primary.htmlhttp://www.businessdictionary.com/definition/goal.htmlhttp://www.businessdictionary.com/definition/money.htmlhttp://www.businessdictionary.com/definition/profit.htmlhttp://www.investorwords.com/3331/non_profit_organization.htmlhttp://www.businessdictionary.com/definition/community.htmlhttp://www.investorwords.com/3455/operating.htmlhttp://www.businessdictionary.com/definition/company.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.investorwords.com/4228/retail.htmlhttp://www.businessdictionary.com/definition/stores.htmlhttp://www.investorwords.com/6843/insurance_company.htmlhttp://www.businessdictionary.com/definition/real-estate.htmlhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Charitable_organizationhttp://en.wikipedia.org/wiki/Charitable_organizationhttp://en.wikipedia.org/wiki/Trade_unionhttp://en.wikipedia.org/wiki/Arthttp://en.wikipedia.org/wiki/Income_taxhttp://en.wikipedia.org/wiki/Property_taxhttp://en.wikipedia.org/wiki/Workerhttp://en.wikipedia.org/wiki/Shareholders


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While they are able to earn a profit, more accurately called a surplus, such earnings must be

retained by the organization for its self-preservation, expansion and future plans. Earnings may

not benefit individuals or stake-holders. While some nonprofit organizations put substantial

funds into hiring and rewarding their internal corporate leadership, middle-management

personnel and workers, others employ unpaid volunteers and even executives may work for no

compensation. However, since the late 1980s there has been a growing consensus that nonprofits

can achieve their corporate targets more effectively by using some of the same methods

developed in for-profit enterprises. These include effective internal management, ensuring

accountability for results, and monitoring the performance of different divisions or projects in

order to better benefit from their capital and workers. Those require satisfied management andthat, in turn, begins with the organization's mission.

Nature and goals

NPOs are often charities or service organizations; they may be organized as a not-for-profit

corporation or as a trust , a cooperative , or they may be purely informal. Sometimes they are also

called foundations, or endowments that have large stock funds . A very similar organization

called the supporting organization operates like a foundation, but they are more complicated to

administer, they are more tax favored, and the public charities that receive grants from themmust have a specially determined relationship. Foundations give out grants to other NPOs, or

fellowships and direct grants to participants. However, the name foundations may be used by

any not-for-profit corporation even volunteer organizations or grass roots groups. Applying

Germanic or Nordic law (e.g., Germany, Sweden, Finland ), NPOs typically are voluntary

associations , although some have a corporate structure (e.g. housing cooperatives ). Usually a

voluntary association is founded upon the principle of one-person-one-vote.

Legal aspects

There is a wide diversity of structures and purposes in the NPO landscape. For legal

classification and eventual scrutiny, there are, nevertheless, some structural elements of prime

legal importance:

Economic activity
http://en.wikipedia.org/wiki/Charitable_organizationshttp://en.wikipedia.org/wiki/Charitable_Trusthttp://en.wikipedia.org/wiki/Cooperativehttp://en.wikipedia.org/wiki/Foundation_(charity)http://en.wikipedia.org/wiki/Financial_endowmenthttp://en.wikipedia.org/wiki/Stock_fundhttp://en.wikipedia.org/wiki/Supporting_organization_(charity)http://en.wikipedia.org/wiki/Grant_(money)http://en.wikipedia.org/wiki/Foundation_(charity)http://en.wikipedia.org/wiki/Volunteerhttp://en.wikipedia.org/wiki/Grass_rootshttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Voluntary_associationhttp://en.wikipedia.org/wiki/Voluntary_associationhttp://en.wikipedia.org/wiki/Housing_cooperativehttp://en.wikipedia.org/wiki/Charitable_organizationshttp://en.wikipedia.org/wiki/Charitable_Trusthttp://en.wikipedia.org/wiki/Cooperativehttp://en.wikipedia.org/wiki/Foundation_(charity)http://en.wikipedia.org/wiki/Financial_endowmenthttp://en.wikipedia.org/wiki/Stock_fundhttp://en.wikipedia.org/wiki/Supporting_organization_(charity)http://en.wikipedia.org/wiki/Grant_(money)http://en.wikipedia.org/wiki/Foundation_(charity)http://en.wikipedia.org/wiki/Volunteerhttp://en.wikipedia.org/wiki/Grass_rootshttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Voluntary_associationhttp://en.wikipedia.org/wiki/Voluntary_associationhttp://en.wikipedia.org/wiki/Housing_cooperative


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Supervision and management provisions

Representation

Accountability and Auditing provisions

Provisions for the amendment of the statutes or articles of incorporation

Provisions for the dissolution of the entity

Tax status of corporate and private donors

Tax status of the foundation

Some of the above must be, in most jurisdictions, expressed in the document of establishment.

Others may be provided by the supervising authority at each particular jurisdiction.

While affiliations will not affect a legal status, they may be taken into consideration in legal

proceedings as an indication of purpose.

Most countries have laws which regulate the establishment and management of NPOs, and which

require compliance with corporate governance regimes. Most larger organizations are required to

publish their financial reports detailing their income and expenditure for the public. In many

aspects they are similar to business entities though there are often significant differences. Both

non-profit and for-profit entities must have board members, steering committee members, or trustees who owe the organization a fiduciary duty of loyalty and trust. A notable exception to

this involves churches , which are often not required to disclose finances to anyone, including

church members.

Tax exemption

In many countries, nonprofits may apply for tax exempt status , so that the organization itself may

be exempt from income tax and other taxes. In the United States, to be exempt from federal

income taxes the organization must meet the requirements set forth by the Internal Revenue

Service .

Goods-producing businesses create, build, or produce objects of all sizes and forms. Examples

of goods-producing businesses are Dell, Sara Lee, and Pulte Homes. Goods-producing

businesses often require a large initial investment in materials, equipment, and facilities;
http://en.wikipedia.org/wiki/Corporate_governancehttp://en.wikipedia.org/wiki/Business_entityhttp://en.wikipedia.org/wiki/Fiduciary_dutyhttp://en.wikipedia.org/wiki/Church_(building)http://en.wikipedia.org/wiki/Tax_exempt_statushttp://en.wikipedia.org/wiki/Internal_Revenue_Servicehttp://en.wikipedia.org/wiki/Internal_Revenue_Servicehttp://en.wikipedia.org/wiki/Corporate_governancehttp://en.wikipedia.org/wiki/Business_entityhttp://en.wikipedia.org/wiki/Fiduciary_dutyhttp://en.wikipedia.org/wiki/Church_(building)http://en.wikipedia.org/wiki/Tax_exempt_statushttp://en.wikipedia.org/wiki/Internal_Revenue_Servicehttp://en.wikipedia.org/wiki/Internal_Revenue_Service


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therefore, they are called capital-intensive businesses. Capital is the input needed to create a

product or service. It can take the form of money, computers, machines, tools, or buildings.

The goods-producing sector includes all businesses that produce tangible goods.

Generally speaking, companies in this sector are involved in manufacturing, construction,

and agriculture.

Goods-Producing Sector

The largest areas of the goods-producing sector are construction and manufacturing.

Construction businesses are often started by skilled workers, such as electricians, painters, plumbers, and home builders. They tend to be small and generally work on local projects.

Though manufacturing is primarily the domain of large businesses, there are exceptions.

BTIO/Realityworks, for example, is a manufacturing enterprise (components come from Ohio

and China, and assembly is done in Wisconsin).

Another small manufacturer is Reveal Entertainment, which was founded in 1996 to make and

distribute board games. Founder Jeffrey Berndt started with a single award-winning gamea

three-dimensional finance and real estate game called Tripolyand now boasts a product line

of dozens of board games. There are strategy games, like Squad Seven, which uses a CD

soundtrack to guide players through a jungle in search of treasure; childrens games, like

Portfolio Junior, which teaches kids the rudiments of personal finances; and party games, like

So Sue Me, in which players get to experience the fun side of suing their neighbors and taking

their possessions.

Service-producing businesses market knowledge and/or labor that enhance, explain, or deliver

goods. Wells Fargo, KPMG, and FedEx are examples. For approximately sixty years, service

businesses have comprised more than 50% of the U.S. businesses; now they comprise 74%.

There are five key factors that have contributed to this growth: consumers have more disposable

income, services target changing demographics and lifestyles, services need to support complex

goods and new technology like e-commerce , companies are increasingly seeking professional


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advice, and the barriers to entry are relatively low. There are four key service sectors: finance,

insurance, and real estate; wholesale and retail trade; transportation and utilities; and other

services, the largest sector with 25% of U.S. economic output. Goods producing companies are

often capital-intensive , so they require large amounts of money or equipment to begin and

maintain a business. Service companies are often labor-intensive . In labor-intensive businesses,

human resource costs are the highest.

The service-producing sector includes all businesses that provide services but dont

make tangible goods. They may be involved in retail and wholesale trade, transportation,

communications, finance, insurance, real estate, and such professional activities as health

care, advertising, accounting, and personal services.

Service-Producing Sector

Many small businesses in this sector are retailers they buy goods from other firms and sell

them to consumers, in stores, by phone, through direct mailings, or over the Internet. In fact,

entrepreneurs are turning increasingly to the Internet as a venue for start-up ventures. Take Tony

Roeder, for example, who had a fascination with the red Radio Flyer wagons that many of todays adults had owned as children. In 1998, he started an online store through Yahoo! to sell

red wagons from his home. In three years, he turned his online store into a million-dollar

business. Internet entrepreneurship was also attractive to Sean Lundgren and Todd Livdahltwo

computer engineers who gave up successful careers at Disney to turn their fascination with video

games and DVDs into an online business. To their delight, their small start-up venture, a CD and

DVD retailer that they call Sneetch.com, generated sales of $1.2 million during its first year of

operation.

Other small business owners in this sector are wholesalersthey sell products to businesses that

buy them for resale or for company use. A local bakery, for example, is acting as a wholesaler

when it sells desserts to a restaurant, which then resells them to its customers. A small business


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that buys flowers from a local grower (the manufacturer) and resells them to a retail store is

another example of a wholesaler.

Economics is the study of how scarce resources are used to produce outputsgoods and

servicesto be distributed among people.

Resources are the inputs used to produce outputs . Resources may include any or all of the

following:

Land and other natural resources Labor (physical and mental) Capital, including buildings, equipment, and money Entrepreneurship


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Resources are combined to produce goods and services. Land and natural resources provide the

needed raw materials. Labor transforms raw materials into goods and services. Capital

(equipment, buildings, vehicles, cash, and so forth) are needed for the production process.

Entrepreneurship provides the skill and creativity needed to bring the other resources together to

capitalize on an idea.

Because a business uses resources to produce things, we also call these resources factors of

production . The factors of production used to produce a shirt would include the following:

The land that the shirt factory sits on, the electricity used to run the plant, and the raw

cotton from which the shirts are made The laborers who make the shirts The factory and equipment used in the manufacturing process, as well as the money

needed to operate the factory The entrepreneurship skill used to coordinate the other resources to initiate the production

process

Input and Output Market

Many of the factors of production (or resources) are provided to businesses by households.

For example, households provide businesses with labor (as workers), land and buildings (as

landlords), and capital (as investors). In turn, businesses pay households for these resources by

providing them with income, such as wages, rent, and interest. The resources obtained from

households are then used by businesses to produce goods and services, which are sold to the

same households that provide businesses with revenue. The revenue obtained by businesses is

then used to buy additional resources, and the cycle continues. This circular flow is described infigure The Circular Flow of Inputs and Outputs, which illustrates the dual roles of households

and businesses

Households not only provide factors of production (or resources) but also consume goods

and services.


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Businesses not only buy resources but also produce and sell both goods and services

The Circular Flow of Inputs and Outputs

Microeconomics and Macroeconomics

Microeconomics studies behavior among consumers, businesses, and industries that

collectively determine the quality of goods and services demanded.

Microeconomics the forces of supply and demand.


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Macroeconomics studies the role that individuals and government play in allocated a societys

resources. Macroeconomics studies the role that individuals and government play in allocated a

societys resources.

Macroeconomics issues for the entire economy.


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Economic Systems

Economic system the means by which a society (households, businesses, and

government) makes decisions about allocating resources to produce products and aboutdistributing those products. The degree to which individuals and business owners, as opposed to

the government, enjoy freedom in making these decisions varies according to the type of

economic system. Generally speaking, economic systems can be divided into two

systems: planned systems and free market systems .

Planned Systems

In a planned system , the government exerts control over the allocation and distributionof all or some goods and services. The system with the highest level of government control

is communism . In theory, a communist economy is one in which the government owns all or

most enterprises. Central planning by the government dictates which goods or services are

produced, how they are produced, and who will receive them. In practice, pure communism is

practically nonexistent today, and only a few countries (notably North Korea and Cuba) operate

under rigid, centrally planned economic systems.

Under socialism , industries that provide essential services, such as utilities, banking, and health

care, may be government owned. Other businesses are owned privately. Central planning

allocates the goods and services produced by government-run industries and tries to ensure that

the resulting wealth is distributed equally. In contrast, privately owned companies are operated

for the purpose of making a profit for their owners. In general, workers in socialist economies


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work fewer hours, have longer vacations, and receive more health, education, and child-care

benefits than do workers in capitalist economies. To offset the high cost of public services, taxes

are generally steep. Examples of socialist countries include Sweden and France.

Free Market System

The economic system in which most businesses are owned and operated by individuals is

the free market system , also known as capitalism . As we will see next, in a free

market, competition dictates how goods and services will be allocated. Business is conducted

with only limited government involvement. The economies of the United States and other

countries, such as Japan, are based on capitalism.

How Economic Systems Compare

In comparing economic systems, its helpful to think of a continuum with communism at one end

and pure capitalism at the other, as in Figure The Spectrum of Economic Systems. As you

move from left to right, the amount of government control over business diminishes. So, too,

does the level of social services, such as health care, child-care services, social security, andunemployment benefits.

The Spectrum of Economic Systems

Mixed Market Economy


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Though its possible to have a pure communist system, or a pure capitalist (free market) system,

in reality many economic systems are mixed. A mixed market economy relies on both markets

and the government to allocate resources. Weve already seen that this is what happens in

socialist economies in which the government controls selected major industries, such as

transportation and health care, while allowing individual ownership of other industries. Even

previously communist economies, such as those of Eastern Europe and China, are becoming

more mixed as they adopt capitalistic characteristics and convert businesses previously owned by

the government to private ownership through a process called privatization .

Now that you the fundamentals of business and economics. Lets go do some activity.

Activity 1

The activity called pick pack boom

The class will be divided into four (4) groups and choose four representative to play the pick

pack boom.

Mechanics: The group has their own assign names which are for group 1 business, group 2

economics, group 3 microeconomics or micro and group 4 macroeconomics or macro. When the

discussant Say: pick pack boom business the assign group will say the word pick pack boom,

the person that is assign in the word pack will be the one to stand and say the word pack and so

on and the 4th

person assign is to say the other group name. The winning group will have a prizefor the activity.

Example: discussant: pick pack boom macro

Group 4: pick pack boom economics


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and so on.

How do you find the activity? Was it fun to do and all of you are active participating.

Was it interesting? Know that you know about business just enhance your knowledge regarding

in business who knows in the future you will be a businessman and have your own company.

Lets see whether you have learned something from the discussion. Answer the self-

check exercise that follows.

Self-check

Direction: Read each item carefully and select the best answer by writing its letter in your paper.


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________1. It is the government exerts control over the allocation and distribution of all

or some goods and services.

a. planned system

b. mixed market economy

c. free market system

d. none of the above

________2. It is the studies the role that individuals and government play in allocated a

societys resources.

a. microeconomics

b. macroeconomics

c. business

d. economics

________3. It is the studies behavior among consumers, businesses, and industries that


a. economics

b. business

c. microeconomicsd. macroeconomics

________4. It is the study of how scarce resources are used to produce outputs goods and

services to be distributed among people.


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a. business

b. planned system

c. microeconomics

d. economics

_______5. It is the inputs used to produce outputs.

a. resources

b. capital

c. equipment

d. money

Post test

Direction: Read each item carefully and select the best answer by writingits letter in your paper.

________1. It is exist to fulfill a need, and provide investors a return from company

income after expenses and taxes are paid.

a. profit

b. business


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c. economics

d. microeconomics

________2. In every business must have one or more owners whose primary role is to

invest money in the business.

a. participants

b. management

c. operations

d. marketing

________3. _________ involves planning for, obtaining, and managing a companys

funds.

a. finance

b. accounting

c. marketing

d. operations

________4. It is an organization that does not distribute its surplus funds to owners or

shareholders, but instead uses them to help pursue its goals.

a. profit organization

b. macroeconomicsc. business

d. non-profit organization

_______5. It is a businesss create, build, or produce objects of all sizes and forms.
http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Organization


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a. service producing

b. retailer

c. ecommerce

d. goods-producing

________6. It is the government exerts control over the allocation and distribution of all

or some goods and services.

a. planned system

b. mixed market economy

c. free market system

d. none of the above

________7. It is the studies the role that individuals and government play in allocated a

societys resources.

a. microeconomics

b. macroeconomics

c. business

d. economics

________8. It is the studies behavior among consumers, businesses, and industries that



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a. economics

b. business

c. microeconomics

d. macroeconomics

________9. It is the study of how scarce resources are used to produce outputs goods and

services to be distributed among people.

a. business

b. planned system

c. microeconomics

d. economics

_______10. It is the inputs used to produce outputs.

a. resources

b. capital

c. equipment

d. money


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References:

Internet

http://www.businessdictionary.com/definition/for-profit-organization.html#ixzz130fiE0yF

http://en.wikipedia.org/wiki/Non-profit_organization

http://wps.prenhall.com/bp_bovee_eib_rev/0,8591,1072010-,00.html

www.lourdes.edu/Portals/0/Files/Syllabi/Bus/Spring/.../Chapter1.pdf

http://www.web-books.com/eLibrary/NC/B0/B66/040MB66.html
http://www.businessdictionary.com/definition/for-profit-organization.html#ixzz130fiE0yFhttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://wps.prenhall.com/bp_bovee_eib_rev/0,8591,1072010-,00.htmlhttp://www.lourdes.edu/Portals/0/Files/Syllabi/Bus/Spring/.../Chapter1.pdfhttp://www.web-books.com/eLibrary/NC/B0/B66/040MB66.htmlhttp://www.businessdictionary.com/definition/for-profit-organization.html#ixzz130fiE0yFhttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://wps.prenhall.com/bp_bovee_eib_rev/0,8591,1072010-,00.htmlhttp://www.lourdes.edu/Portals/0/Files/Syllabi/Bus/Spring/.../Chapter1.pdfhttp://www.web-books.com/eLibrary/NC/B0/B66/040MB66.html


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Key to correction

Pretest

1. b

2. a

3. a

4. d

5. d

Self-check

1. a

2. b

3. c4. d

5. a

Post test

1. b

2. a

3. a

4. d

5. d

6. a

7. b

8. c

9. d

10. a


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Pelarios Ivy P.

BBTE 3-2

module fundamentals of business and economics

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