Nature of Business Quarter 3 – Lesson 1 What is Business? Business Business also known as an enterprise, agency, or firm, is an entity involved in the provision of goods and/or services to consumers. Business can refer to a particular organization or to an entire market sector, e.g. “the music business” What is Business Ethics? Ethics Ethics is the study of morals and moral choices. It focuses on standards rules and code of conduct that govern the behavior of individuals and groups. They give us idea about what is right or wrong, true or false, fair or unfair. Business Ethics Business ethics is a specialized study of moral, right or wrong in a business. It defines written and unwritten codes of principles and values that govern decisions and actions within a company. In the business world the organizations culture sets standards for determining the difference between good and bad decision making and behavior. Profit Profit refers to the difference between the amount received and the amount spent on something purchased, produced, or manufactured. THREE TYPES OF BUSINESS ORGANIZATIONS THREE TYPES OF BUSINESS ORGANIZATIONS Service Businesses Merchandising Businesses Manufacturing Businesses THREE TYPES OF BUSINESS ORGANIZATIONS Service Businesses Service businesses provide services to customers rather than products. Examples: computer repair, laundry services, tutoring, delivery services, wellness (such as gym or spa), etc. THREE TYPES OF BUSINESS ORGANIZATIONS Merchandising Business Merchandising businesses sell to customers products they buy from other businesses. Examples: sari-sari stores, bookstores, department stores, groceries, supermarkets, etc. THREE TYPES OF BUSINESS ORGANIZATIONS Manufacturing Business Manufacturing businesses turn basic inputs into products which are sold to consumers. Examples: shoe manufacturing, baked goods, candle manufacturing, cosmetics manufacturing, wine production, etc. Developing Economies Developing economies are described as those with average income earned, rate of literacy and health services lower than industrialized/developed nations. They are so characterized because they have a high potential for growth and for achieving the status of developed countries. Early Caribbean Economies Early Caribbean Economies Early Caribbean economies dated from the Taino and Kalinago Indians are examples of a system of economics because although they lived simple lives, this communities were ruled by a leader who organized all economic activities. Taino The Taíno people, an indigenous Caribbean group, had a complex economy based on agriculture, hunting, fishing, and trade. Barter The Taino people of the Caribbean engaged in a vibrant system of trade and exchange. Barter is the exchange of goods and services for other good or services. Problems with the Barter System A common measure value did not exists. Therefore some person felt cheated, as what is being exchanged is more valuable that what is received. A double coincidence of wants may not exists The wants of both persons wishing to trade must coincide with what is being offered by each other.
