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Business in General

Chapter 1

+Development of Our Business Culture• People have engaged in business activities since the

earliest beginnings of community existence.

• From simple beginnings in the dim reaches of man’s prehistoric past, business grew and proliferated, until it cam to dominate the over all culture of human society

• The Code of Hammurabi promulgated around 2,000 B.C. Had provisions governing commercial transactions.

• The Roman empire had a clearly defined wage system.

• Devices of business control like accounting and business functions like insurance and banking date back to the middle ages.

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Business in the Philippines reaches back into pre-historic times,

In 9th century, Arab traders were already visiting the islands.

By 12th century , Chinese traders took over most of the Philippine trade and even established training communities in the Philippines.

In 18th century Galleon Trade, trade between Manila and Acapulco in Mexico, was carried on.

The Filipinos were the menials and the tillers of the soil; the Spaniards were the governors and the Chinese and Sangley mestizos were the distributors, tradesmen, capitalists and the entrepreneurs.

+Business is capitalistic if we have: Production for private

account

Private ownership of non-personal means of production

Voluntary savings and the institution of bank credit

+Attributes of the Term Business Business has been defined as an organization of the

people with varied skills, which uses property or talents, to produce goods or services, which can be sold to others for more than their costs.

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A fundamental characteristic of business that distinguishes it from other economic activities is the fact that the goods produced or the service created , are not primarily for the consumption, could not according to this characteristics of business, be considered a businessman, the the modern farmer who produces for the market is , in a very real sense, a businessman.

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The distinguishing characteristics of the private professional man is that he deals almost entirely with persons and sells his special skill or service on a personal basis.

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Business includes any lawful activity carried on continuously, which involves buying and selling , or manufacturing , or financing , or the rendering of a service for money.

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The objective of the businessman is to sell

his product or service in such a manner as to

recover not only what it actually costs him, but

also something in excess of costs to provide a

reward personal effort and risk.

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CommerceIndustryService

Kinds of Business

+Commerce

Commerce refers to the transfer or exchange of goods and services with the movement of goods from point of production to point of consumption. It covers buying, selling and marketing and merchandising , which are directly involved in the transfer of goods.

Trade may be either retail or wholesale, domestic or foreign.

+Industry Industry is primarily

concerned with the creation of form utility or the production of goods that are used either by the consumer and are, therefore , called consumer’s goods or by other industries in the further production of other goods and , therefore, called producers’ goods.

Industries could be subdivided into Genetic Extractive Manufacturing Construction Industries