eco

2. TERMINOLOGIES

3. INDUSTRY
Is an aggregation of the different
businesses engaged in the same kind of
undertaking.
BUSINESS
Is an undertaking by a person or a group
of persons who are partners, or of
stockholders who own a juridical entity known
as a corporation whose main objective is to
earn profit for the owners. It is just a small
portion of an industry.

4. • For a person to put up a business,
it is essential that an industry
analysis first be made. Commonly
used is a system known as the
SWOT analysis, which lists the
strengths, weaknesses,
opportunities, and threats that the
business faces.

5. BUSINESS
ORGANIZATION

6. 1. SOLE PROPRIETORSHIP
• Generally the simplest way to set up a
business.
• Owned by a single individual who is singly
responsible for running the business and is
accountable for all debts and obligations
related to business.
• The sole proprietor enjoys exclusive control
and decision-making as well as gets all profits
earned but also shoulders all losses and has
unlimited liability which means payment of his
loans will extend to his personal assets.

7. 2. PARTNERSHIP
• Is an agreement in which two or more
persons combine their resources in a
business with a view to making profit.
• Partnership agreement is drawn up
and profits are divided among the
partners according to the terms of
agreement.

8. TWO
KINDS OF
PARTNERSHIP

9. 1. THE GENERAL PARTNERSHIP
• All owners share the management of
the business and each is personally
responsible for and must assume the
consequences of the actions of the
other partners.
• All general partners have unlimited
liability which means loan payments
will extend to their personal property.

10. 2. THE LIMITED PARTNERSHIP
• Some members are general partners
who control and manage the business
and may be entitled to a greater share
of the profit while other partners are
limited and contribute only capital,
take no part in control or
management, and are liable for debts
to a specific extent only.

11. KINDS OF
PARTNERS

12. ACCORDING TO LIABILITY FOR
PARTNERSHIP OBLIGATIONS:
1. General Partner – one who, if the
partnership assets are not sufficient to pay
the partnership obligations, his other
properties not invested in the business are
answerable.
2. Limited Partner – one whose liability for
partnership obligations is only to the extend
of his investment in the partnership.

13. ACCORDING TO NATURE OF
CONTRIBUTIONS TO THE
PARTNERSHIP:
1. Capitalist Partner – one who
contributes money or property to the
partnership.
2. Industrial Partner – one who
contributes industry or personal
services to the partnership.

14. 3. CORPORATION
• Is a legal entity that is separate from its owners,
the shareholders. No shareholder is personally
liable for the debts, obligations, or acts of the
corporation. Directors and officers can bear
liability for their involvement with the corporation.
The legal entity of the corporation gives it an
individual identity of its own.
• Normally can exists for a life of 50 years, which is
renewable for another 50 years. Owners have
limited liabilities. However, corporations are
burdened by heavy taxes.

15. 4. COOPERATIVE
• Is an entity organized by people with similar
needs to provide themselves with goods or
services or to jointly use available resources to
improve their income.
• Cooperative members have an equal say in
decision-making with one vote per member
regardless of number of shares held, there is
open and voluntary membership and surplus
earning is returned to the members according
to the amount of their patronage.

16. TOOLS IN
EVALUATING
A BUSINESS

17. The key factors that must be considered
in analyzing the industry are the
following:
1.The geographic area which your
business will cater.
2.The size and outlook of the industry.
What trends can be identified?
3.Description of the product.
4.The buyers have to be identified.
Who are your target customers?

18. 5. The regulatory environment. Are the
local, national laws that will restrict the
business? One needs to identify government
regulations specific to the chosen industry.
6. The need to identify the leading
businesses in the industry, and to provide
company information on the most
successful businesses that you will be up
against.
7. Factors that will affect the growth of the
business.

19. The
SWOT
Analysis

20. The SWOT analysis was created in the
1960s by business gurus, Edmund P. Learned, C.
Roland Christensen, Kenneth Andrews and
William D. Book in their book, Business, Policy,
Text and Cases.
SWOT, which stands for STRENGTHS,
WEAKNESSES, OPPORTUNITIES AND THREATS, is
an analytical framework that can help a company
meet its challenges and identify new markets.
The framework can help identify the business’s
risk and rewards. It is also a means of identifying
the internal and external forces that may affect
the business.

21. Strengths and Weaknesses – refer to
the internal factors, and these are the
resources and experiences readily
available to the business proponent.
STRENGTHS - Government Incentives
- Low Capital Requirements
- Market Acceptance
- Experienced Leaders

22. WEAKNESSES - Difficulty of
Organization
- Costly Set-up
- Possible Pollution
Problems
- Lack of Training of
Workers

23. OPPORTUNITIES AND THREATS –
refer to the external forces, these are
those that affect a company, an
organization, an individual and those
outside their control.
OPPORTUNITIES
- project may replace imported good
available in the market.
- will improve employees welfare
- improved company reputation
- new technology

24. THREATS
- Entry of competitors
- Time consuming production processes
- Opposition from residents in the
community
- Natural phenomena