Reviewer in Applied Economics

Industry is the aggregation of the different business engaged in the same line of undertaking.
Sole proprietorship. It is the simplest way to form a business. It is owned by a single individual who is singly
responsible for running the business and is accountable for all debts and obligations of the business.
Partnership. Partnership is defined under Article 1767 of the New Civil Code of the Philippines, to wit: ARTICLE
1767. By the contract of partnership two or more persons bind themselves to contribute money, property, or
industry to a common fund, with the intention of dividing the profits among themselves.
Corporation. It is an artificial being created by operation of law, having the right of succession and the powers
and attributes and properties expressly authorized by law or incident to its existence.
Cooperative. A cooperative is an association of persons (organization) that is owned and controlled by the
people to meet their common economic, social, and/or cultural needs and aspirations through a jointly-owned
and democratically controlled business (enterprise).
Characteristics of Sole Proprietorship

1. Single ownership
2. One man control
3. No legal entity
4. Unlimited liability
5. No profit sharing
6. No legal formalities
7. Small size
Characteristics of Partnership
1. Two or more persons
2. Agreement
3. Lawful business
4. Sharing of profits
5. Unlimited liability
6. Mutual agency
7. Utmost good faith
8. Restriction on transfer of interest
Characteristics of Corporation
1. Separate legal existence
2. Continuous life
3. Ability to acquire capital
4. Transferability
5. Limited liability
6. Taxation

Characteristics of cooperative
 According to the Commission, cooperatives have several defining characteristics:
1. They are open and voluntary associations.
2. They have a democratic structure, with each member having one vote.
3. They have an equitable and fair distribution of economic results based on the volume of operations
made through them.

SWOT ANALYSIS. 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
(Irwin 1969).
● It is an analytical framework that can help a company meet its challenges and identify new markets.
● It is a technique for assessing these four aspects of your business.
● Is a tool that can help you to analyze what your company does best now, and to devise a successful
strategy for the future.

● It is also a means of identifying the internal and external forces that may affect the business.
INTERNAL FACTORS
S (strengths) and W (weaknesses) actually refer to the internal factors, and these are the resources and
experiences readily available to the business proponent. Usually included as internal factors are:
1. Financial resources such as money and sources of funds of investment;
2. Physical resources, such as the company’s location, facilities, machinery, and equipment
3. Human resources consisting of employees;
4. Access to natural resources, trademarks, patents, and copyrights; and
5. Current processes, such as employee programs, department hierarchies and software systems, sales and
distribution capabilities, marketing programs, etc.
EXTERNAL FACTORS
On the other hand, when we speak of external forces, these are those that affect a company, an organization,
an individual, and those outside their control. These may include:
1. Economic trends including local, national and international financial trends, developments in the country’s
stock market, reforms in the banking system, growth of the Gross Domestic Product;
2. Market trends, such as new products or technology or evolving buyers’ profiles, including changes in tastes
and lifestyle behavior;
3. National and local laws and statutes as well as political, environmental, and economic regulations;
4. Demographic characteristics of the target market such as the age, the gender, the culture of the customers;
5. Relationships with suppliers and co-owners; and
6. Competitive threats

Porter’s Five Forces of Competitive Position Analysis

Another analytical tool that can be used to assess a business is Porter’s Five Forces of Competitive Position
Analysis. It was developed in 1979 by Michael E. Porter of Harvard Business School as a framework or a guide
for assessing and evaluating the competitive strength and position of a business organization.

INDUSTRY
Industry refers to the production of goods and services by converting the inputs into outputs and or creation
of utilities to costumers. Goods produced by an industry are used either by consumers to satisfy their wants
and needs or by other industries for further production.
The industries, which produce finished goods by the use of materials and supplies taken from the primary
industries are known as secondary industries.

Analytical industry
This industry relates to the analyzing and separating different components from a single material. For
example, crude oil processed and separated into petrol, diesel, kerosene, etc.
Synthetic industry
This industry relates to the putting of various raw materials together to make a final product. Examples are
cement which is produced by mixing concrete, gypsum, coal etc. together.
Processing industry
An industry, which produces the final products by using raw materials and semi raw materials through
different stages of production is known as processing industry. Textile industry, paper and sugar mills etc. are
some examples.
Assembling industry
It refers to that industry which assembles various component parts that are already manufactured to make a
new product. Manufacturing vehicles, electric equipment etc. are some examples of this type of industry.
Service industry
Service industries are those industries, which do not produce physical goods but create utility services and sell
them for a price. Nursing home services, film industries, traveling etc. are examples of service industries.