In Business and Economics: The Foundation of Business

There is hardly a day that our lives are not touched by business. The products and resources that business firms confront us every minute.

Even the future of a nation like the Philippines is affected by business activities.

Although, we may have a general idea of what business is and maybe some knowledge of how they operate, it is important for us to have a more comprehensive view of our nation and our own financial health.

What is Business?

Business

• it is a general term which includes all profit-seeking activities of the enterprises that provide goods and services necessary to an economic system.
• it is a way of making profit
• it is a structure, a process

Profit

• it is the money that remains after a firm deducts its expenses (e.g., production costs and direct costs).

Private Enterprise System

• it is a feature of our market economy, where individuals are vested with the right of operate enterprise for private gain.

Features of Private Enterprise System

1. That institution of private property bestows on owners a property.
2. The right to use, exchange or exploit their properties.
3. The right of inheritance, whatever financial gains accruing to the firm automatically transfers to the heirs including the enterprise.
4. The private enterprise system made possible to a large extent the growth of output and income in industrialized countries if only the system will be utilized economic growth in the Philippines will be easier to achieve.

Characteristics of Private Enterprise System

1. operation of the business
2. assurance that the efforts will not be wasted.
3. economic growth