• Usually refers to a company or a
corporation, and may refer to a
particular trade, such as a “computer
business”, or a “restaurant business”.
• A business is a legal entity, recognized
in an economically free country, and
may come in the form of a single
proprietorship, partnership, or
• Business community –
usually refers collectively to
the totality of businesses in a
• Is a collection or grouping of
businesses that have a common
or similar manner of generating
profits, such as the “car
industry”, or “publishing
TYPES OF BUSINESS
1. Agriculture and Mining
These deal with
the production of raw
materials, such as
plants, timber, fuel, or
minerals, which are then
processed by other businesses.
2. Manufacturers – these businesses
process raw materials or parts to
come up with a final product.
3. Service Businesses – these offer
intangible goods, and not actual or
physical goods. These type of
business generate profits by
providing services which depend on
the “talent” or capacity of their
4. Financial Service Business – these are
forms of service businesses which cater
specifically in providing financial
service or management.
5. Retailers and Distributors – these act
as the link between manufacturers and
the customers. They get products from
manufacturers and delivers them to
customers, generating a profit as a
6. Real Estates – these are businesses
which do selling and development of
land, buildings, and other properties.
Companies that develop subdivisions
and homes are into this type of
7. Information Businesses – are those
that sell intellectual property in the
form of data and information,
databases, and knowledge bases.
8. Transportation Businesses – these
deliver people or products from one
point to another, and charge a
particular cost for that service.
9. Utilities – these companies provide
basic necessities, such as electricity
and water, and are usually regulated
by the government in certain
Large and organized groups that work
a common goal.
• A business organization already has the
factors of production ready – the land or
building is there, equipment or capital is set
up, personnel are prepared, and the
entrepreneurial ability already exists in the
way the business has been organized by its
How Businesses are Organized?
Businesses, specifically companies and
corporations, are usually managed by a
Board of Directors for the company to
follow. The Board also selects various
people to occupy key posts within a
company, from the president to the lowest
top-level managers. Middle managers and
lower managers are usually hired by the
top-level officers and not by the Board.
Companies perform various
functions in order to meet its needs.
These function are performed by
specific departments, which may
include the following:
Procurement or Purchasing – this
involves the acquisition of goods and
services necessary for the business, such
as raw materials for production, and
supplies needed by personnel during the
manufacturing or processing stage.
Production or Service – this function
turns the raw materials into goods or
services that can be sold or delivered.
Marketing and Sales – this takes care
of selling the goods and services to the
customers, and includes advertising
and distribution functions.
Human Resources – this is responsible
for the overall management of
personnel in the organization.
Finance and Accounting – this handles
the financial aspects of a business,
specifically its bookkeeping and
financial controls, management of
funds, and the raising of capital or
money to run the business.
Information Technology – most
businesses use computer and information
technology for various aspects of its
operations. Data on employees, sales, and
customers are now stored and accessed
quickly using computers.
Corporate Affairs – this takes care of
internal and external communications,
public relations, events management, and
corporate social responsibility.
– this provide various
administrative and logical support to
an organization, such as typing,
janitorial services, building
administration, & others.
Internal Audit – this is an
independent function that checks how
the different departments are
performing and then reports their
findings to the top management of an
BUSINESS AND INDUSTRY
To be employed in a company, an
individual has to have specific skills
suited to be able to perform a
particular function in a company.
• Human Resources Department –
managing personnel or human resources.
• Persons who will work in a firm’s
auditing department should have training
and education in accounting.
• Those to be in-charge of sales should
have marketing skills.
• Businesses run for the purpose of profit.
But each business performs differently.
Some gain great profits while others get
modest returns only. While others have
no profit at all and even have losses.
Businesses experience swings in profit
and gains, which are connected to