1. After studying and working on all activities in
this module, you will be able to:
Identify and explain the various socioeconomic
factors affecting business and industry
(ABM_AE12II-e-g-11)
Analyze and evaluate the viability of a business
and its impact on the community (ABM_AE12II-e-
g-12)
Formulate recommendations and strategies on
how to minimize and maximize a business’s
negative impact and positive impact, respectively
01
02
03
5. SOCIO-ECONOMIC
FACTORS
• include all transactions that the
business has to interact with
comprising land, labor, capital, and
technology.
• also includes the practice of consumer
in using new products and services
8. Payment of Government
Taxes
• Taxes paid by business
enterprise are considered a
component of production cost
because it is added to capital
outlay of the business in the
operation.
9. Mode of the International
Trade
• Some businesses especially
the medium and large scale
enterprises are usually affected
by the dollar exchange rate in
the economic transactions.
10. 2. How are You
Going to Determine
the Socio-Economic
Status of
Consumers as a
Factor Affecting
11. Consumer’s Behavior and
Its Significance on
Business
Determining the Socio-
Economic Status of
Consumers and Its
Effects on Industry
01
02
12. Consumptions refer to the use of
goods and services to satisfy the
basic needs and wants of
consumers.
Consumers are the persons who
buy the products business offers for
Consumer’s Behavior and Its
Significance on Business
01
14. The following are the main
parameters of socio-economic
status of consumers or buyers:
INCOM
E
EDUCATI
ON/SKILL
S
OCCUPATIO
N
15. 1. Income - when income
is scarce, customers tend
to restrict their spending to
essential items;
16. 2. Education/Skills - A society
that has it that a well-educated
and skilled population flourishes
because individuals are
employable in well-paying jobs;
17. 3. Occupation - refers to the
type of jobs people perform
by virtue of their skills,
experiences or choice.
18. Fill in the Blanks. Write the most
APPROPRIATE WORD OR
STATEMENT referred to in the
following definitions on the space
provided before each number.
19. __________________1. Factors that include all
transactions that the business has to interact with
comprising land, labor, capital, technology, among
others.
__________________2. An activity which makes
one’s living or makes money by manufacturing,
developing, buying and selling products (goods &
services)?
__________________3. . Taxes paid by business
enterprise which are considered a component of
production cost because it is added to capital outlay
20. __________________4. The dollar
exchange rate in the economic
transactions directly affect the exports
and imports cost of products.
__________________5. refer to the use
of goods and services to satisfy human
wants directly
