GROUP-1-INTRODUCTION-TO-BUSINESS.pptx

REPORTERS
ENOPIA, PAMELA
GIOLAGA, MARYJOY
BALABAT, MAY
MARINO, RENZO
INTRODUCTION
TO BUSINESS

WHAT IS BUSINESS?
Traditionally, It meant that it is an exchange or trade for things people wanted or needed.
As of today, it has more technical definition.
Is the production, distribution and sale of goods and services for a profit.
It is an entity that offers goods and/or services to customers. Business do not produce
primarily on their own needs or work exclusively for their families and friends needs, but for
someone else: for their customers.
Business usually charge a price for their goods and services so that they get something in
return.

TYPES OF BUSINESS OWNERSHIP
FACTORS TO CONSIDER
1.) In setting up your business, do you want to minimize the
costs of getting started? Do you hope to
avoid complex government regulations and reporting
requirements?
2) How much control would you like? How much responsibility
for running the business are you
willing to share? What about sharing the profits?
3) Do you want to avoid special taxes?
4) Do you have all the skills needed to run the business?

6
Types of business owners
2 PARTNERSHIP
1 SOLE
PROPRIETORSHIP
3 Unlimited
Liability and the
Part
4 Limited
Partnership
6 NOT-FOR-PROFIT
CORPORATION
5 Corporation

TYPES OF BUSINESS OWNERSHIP
FACTORS TO CONSIDER
5) Are you likely to get along with your co-owners over an extended period of time?
6) Is it important to you that the business survive you?
7) What are your financing needs and how do you plan to finance your company?
8) How much personal exposure to liability are you willing to accept? Do you feel uneasy about
accepting personal liability for the actions of fellow owners?

SOLE PROPRIETORSHIP
In a sole proprietorship, as the owner, you have complete control over your
business. You make all important decisions and are generally responsible for all day-to-
day activities.
In exchange for assuming all this responsibility, you get all the income earned by the
business.
Profits earned are taxed as personal income, so you don’t have to pay any special
federal and state income taxes

Disadvantages of Sole Proprietorship
• When you’re gone, business dissolves
• You also have to rely on your own resources for financing: in effect, you are the
business and any money borrowed by the business is loaned to you personally
• Unlimited liability
• You can lessen your risk with insurance, yet your liability exposure can be substantial

PARTNERSHIP
Is a business owned jointly by two or more people.
About 10 percent of U.S. businesses are partnerships2 and though the vast
majority are small, some are quite large. For example, the big four public
accounting firms are partnerships.
The Partnership Agreement : The impact of disputes can be lessened if the
partners have executed a well-planned partnership agreement that specifies
everyone’s rights and responsibilities. The agreement might provide such details
as the following:

6
Types of business owners
2
Division of
partnership
income (or loss
1
Amount of cash
and other
contributions to
be made by each
part
3 Division of
partnership
income (or loss
4
Conditions under
which a partner
can sell an interest
in the com
6
Conditions for
settling disputes
5 Conditions for
dissolving the
partnership

UNLIMITED LIABILITY
A major problem with partnerships, as with sole proprietorships. In
this case, each partner is personally liable not only for his or her own
actions but also for the actions of all the partners. If your partner in an
architectural firm makes a mistake that causes a structure to collapse,
the loss your business incurs impacts you just as much as it would him
or her.

LIMITED LIABILITY
The law permits business owners to form a limited partnership which
has two types of partners: a single general partner who runs the
business and is responsible for its liabilities, and any number of limited
partners who have limited involvement in the business and whose losses
are limited to the amount of their investment

Advantages and Disadvantages of Partnerships
• it brings together a diverse group of talented individuals
• it makes financing easier:
• continuity needn’t be an issue because partners can agree legally to
allow the partnership to survive if one or more partners die.

CORPORATION
differs from a sole proprietorship and a partnership because it’s a
legal entity that is entirely separate from the parties who own it. It can
enter into binding contracts, buy and sell property, sue and be sued, be
held responsible for its actions, and be taxed.

6
COMPOSITION OF CORPORATION
2 Benefits of
Incorporation
1
Ownership and
Stock
3
Limited Liability
4
Financial
Resources 6
Continuity and
Transferability
5 Specialized
Management
7
Drawbacks to
Incorporation

● Not-for-profit corporation (sometimes called a
nonprofit) is an organization formed to serve some
public purpose rather than for financial gain. As long as
the organization’s activity is for charitable, religious,
educational, scientific, or literary purposes, it can be
exempt from paying income taxes.
Other Types of Business
Ownership:

Business Ethics
Business ethics is a practice that determines
what is right, wrong, and appropriate in the
workplace. Business ethics is often guided by
laws, and these principles keep companies
and individuals from engaging in illegal activity
such as insider trading, discrimination and
bribery.

Doing business ethics means providing reasons for how things ought
to be in the economic world. This requires the following;
 Arranging values to guide decisions. There needs to be a clearly defined
and well-justified set of priorities about what’s worth seeking and
protecting and what other things we’re willing to compromise or give up.
 Understanding the facts. To effectively apply a set of values to any
situation, the situation itself must be carefully defined
 Constructing arguments. This shows how, given the facts, one action
serves our values better than other actions. While the complexities of
real life frequently disallow absolute proofs, there remains an absolute
requirement of comprehensible reasoning

The Environment and Personality Type
Production Marketing
of goods
and services
Distribution Earning
profits

Business denotes organized activities
related to industry, commerce and
profession. It is carried on by owners and it
has some objective to be achieved. The
objectives of business can be profit,
growth, survival, leadership, efficiency and
social responsibility. Business is a system.
A system is an integrated whole. It
operates within the environment.
Business environment is the
surroundings where business firm grow
up.

Business is environment specific. It operates in a dynamic environment.
Environmental adaptation is the essence of business survival and growth. The
aggregate name of factors and forces that influence business and business
related activities is business environment. Business environment consists of
sum total of all factors forces, events and institutions that surround business.

Types of Business
Environment:
1. The Internal Environment
2. The External Environment

Internal Environment
The one and only fully
controllable environment by the
business organization is internal
environments.
Internal environment
consists of condition, factors and
forces within the business
organization that affect its
performance and outcomes. It
defines the scope of business
organization, and provides
strength and weakness to the
organization

External Environment
Generally, business environment is
regarded as external environment.
External environment consist of conditions
and forces outside the business that
influence its performance, development
and outcomes. It cannot be controlled by
business. It provides opportunities and
threats that are lying in the outside the
business organization.

FIVE PERSONALITY TRAITS OF
AN ENTREPRENEUR
PASSION
For those uninitiated,
entrepreneurs are not in it
for the money. While there
have been some icons who
have made more cash than
most of us we’ll dream

OPPORTUNITIES
What are your goals?
Are demands shifting? How can it be improved?
O
THREATS
What are the blockers you're facing?
What are factors outside of your control?
T
RESILIENCE
As an entrepreneur, you’re going to fail. That’s just an
unfortunate fact. While something that drastic would be too
much for most people to handle, Instead of giving up, an
entrepreneur will learn from their failures. What went
wrong?How can I succeed next time? These are the type of
questions an entrepreneur will ask themselves. An
entrepreneur doesn’t stay down when times get rough. They’re
resilient and thrive off of the negativity.

STRONG SENSE OF SELF
Any entrepreneur will tell that there are
numerous problems to overcome.
A cooperative (also known as a co-op) is
a business owned and controlled by those
who use its services. Individuals and firms
who belong to the cooperative join together
to market products, purchase supplies, and
provide services for its members.
Whether it be not securing enough
funding, proving the naysayers wrong or
facing the competition head on, it’s not easy
being an entrepreneur. And, being
passionate and resilient can only go so far.
Which is why entrepreneurs also have an
extremely strong sense of self.

FLEXIBILITY
Being able to adapt to changes
and challenges is crucial for any
business. In fact, most entrepreneurs
will inform you that their idea or
business plan is drastically different
than when it began. An idea may be
brilliant, but in reality it isn’t effective.
Entrepreneurs are flexible enough to
make the adjustments to make that
idea feasible. Furthermore,
entrepreneurs are prepared and
willing to modify their plan when new
information arrives and when there
are changes in circumstances.

VISION
Entrepreneurs see opportunity
everywhere. They’re innovators who
are always on the lookout to either
develop a new idea or improve an
existing product or service. And,
chances are that’s the main reason
why they became an entrepreneur in
the first place. At some point in their
lives they noticed something that could
be better. But, instead of just saying
that something could be better wasn’t
enough.

GROUP-1-INTRODUCTION-TO-BUSINESS.pptx

GROUP-1-INTRODUCTION-TO-BUSINESS.pptx

More Related Content

Similar to GROUP-1-INTRODUCTION-TO-BUSINESS.pptx

Recently uploaded

GROUP-1-INTRODUCTION-TO-BUSINESS.pptx