The document outlines key socioeconomic factors that affect businesses and industries, including availability of resources, government taxes, and international trade practices. It discusses how socioeconomic factors influence consumer behavior and the viability of businesses. Methods are presented for analyzing a business's socioeconomic impact on its community and formulating strategies to maximize positive impacts and minimize negative impacts.

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

2. Various Socio-
economic Factors
Affecting Business
and Industry

3. 1. What are the
socioeconomic
factors and how
these affect
businesses and
industry in general?

4. BUSINES

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

6. SOCIO-ECONOMIC
FACTORS
• The impact of the availability of
raw materials or supply for
business is another thing that
affects business.

7. Other factors affecting
business may include the
following:
a. Payment of Government
Taxes
b. Mode of the International
Trade

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

13. Determining the Socio-
Economic Status of
Consumers and Its Effects on
Industry
02

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