Unit A Evaluation of Business Performance 1 of 4 Handouts

IS1231 | Evaluation of Business 29/08/2023
Performance
INTRODUCTION TO
BUSINESS
IS1231 | Evaluation of Business Performance
LEARNING OBJECTIVES
At the end of the lesson the students be able to:
1 Identify and explain the various definitions of business;
2 Explain the nature, concepts, and structure of business;
3 Differentiate the different forms of business organizations; and
4 Explain the relationship of business and technology.
A. INTRODUCTION TO BUSINESS
Prepared by: Jerico D. Quinzon 1

Performance
TABLE OF CONTENTS
01 02
DEFINITION, NATURE,
CONCEPTS, AND FORMS OF BUSINESS
STRUCTURES OF ORGANIZATIONS
BUSINESS
03 TYPES OF BUSINESS AND

BUSINESS ACTIVITIES 04 RELATIONSHIP OF
BUSINESS AND
TECHNOLOGY
01
DEFINITION, NATURE, CONCEPTS,
AND STRUCTURES OF
BUSINESS

Performance
DEFINITION OF
BUSINESS
“BUSINESS”
A business is defined as an organization or entity involved in commercial, industrial,
or professional activities providing goods or services to the public.
Profit Non-Profit
An organizations whose primary goal is to earn An organizations developed to serve a social
income and profit for its founders, leaders and purpose. Non-profit organizations do not earn
employees. profits from their services, as all earned profits
are used in achieving social objectives
CONCEPT OF
BUSINESS
A business concept is a statement representing a business idea. It includes

all the key elements – what it offers, target market, Unique Selling
Proposition (USP), and feasibility of succeeding. It explains why the
businesses’ USP provides itself with a competitive advantage in the
market. A developed business concept is then added to the business plan
for the successful implementation of the concept.

Performance
NATURE OF
BUSINESS
Regular Process Economic Activity Utility Creation
Capital Requirement Goods or Services Risk
Profit Earning Motive Satisfaction of Consumer’s Needs Buyers and Sellers
Social Obligations
NATURE OF
BUSINESS
Regular Economic Utility

Process Activity Creation
The profit- Activities that a kind of utility
generating maximize profit. the goods or
processes that services create
are regularly for the consumer,
repeated. such as time
utility, place
utility, etc.

Performance
NATURE OF
BUSINESS
Capital Goods or
Requirement Services Risk
The amount of Types of goods The risk factor
funding required (tangible or related to
for the business. intangible) business
offered by the
business
NATURE OF
BUSINESS
Satisfation of
Profit Earning Consumers’ Buyers and
Motive Needs Sellers
The businesses’ Based on the The type of
profit-earning consumers’ buyers and sellers
motive satisfaction involved in the
business

Performance
NATURE OF
BUSINESS
Social
Obligations
All businesses have
corporate social
responsibilities to undertake
STRUCTURE OF
BUSINESS
Public Sector Private Sector International Sector
Technological Sector Sole Proprietorship Partnership
Corporation Limited Liability Company Limited Liability Partnership
Service Business Merchandising Business Manufacturing Business
Hybrid Business For-Profit Organizations Non-Profit Organizations

Performance
STRUCTURE OF
BUSINESS
Public Private International

Sector Sector Sector
this sector this sector this sector
consists of only consists of includes exports
the government privately from foreign
and companies (individually or countries.
controlled by the collectively) run
Government. businesses that
are run for profit.
STRUCTURE OF
BUSINESS
Technological Sole
Sector Proprietorship Partnership
this sector relates this sector includes this sector
to the research, businesses run by a includes
development, or single person. There businesses run by
is no legal
distribution of two or more
distinction between
technologically the owner and the people under a
based goods and business entity. legal agreement.
services.

Performance
STRUCTURE OF
BUSINESS
Limited Limited
Liability Liability
Corporation Company Partnership
this sector this sector includes business
includes a large a business structure structure wherein
company or a wherein the owners all partners have
are not personally
group of limited liability
liable for the debts
companies acting or liabilities of the towards the
like one. business. business.
STRUCTURE OF
BUSINESS
Service Merchandising Manufacturing

Business Business Business
this sector includes this sector includes this sector includes
businesses that offer businesses that buy businesses that buy
intangible products to products at wholesale products and use them
their customers. They prices and sell them at as raw materials to
cater to their retail prices. Such produce their end
product. The end
customers by providing businesses earn profit
product is then sold to
professional advice, by selling products at a
the customer.
skills and expertise. price higher than their
cost price.

Performance
STRUCTURE OF
BUSINESS
Hybrid For-Profit Non-Profit

Business Organizations Organizations
this sector includes this sector includes organizations use
businesses practicing businesses that aim the money they
all three activities. For to create a profit receive towards the
example, a car
manufacturer sells
through their betterment of the
cars, buys old cars and operations. Such organization. They
sells them for a higher businesses are are publicly owned.
price after repair, and privately owned.
offers repairs for faulty
car parts.

Unit A Evaluation of Business Performance 1 of 4 Handouts

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IS1231 | Evaluation of Business 29/08/2023

1 Identify and explain the various definitions of business;

2 Explain the nature, concepts, and structure of business;

3 Differentiate the different forms of business organizations; and

4 Explain the relationship of business and technology.

Prepared by: Jerico D. Quinzon 1

03 TYPES OF BUSINESS AND

Prepared by: Jerico D. Quinzon 2

A business concept is a statement representing a business idea. It includes

Prepared by: Jerico D. Quinzon 3

Regular Process Economic Activity Utility Creation

Capital Requirement Goods or Services Risk

Profit Earning Motive Satisfaction of Consumer’s Needs Buyers and Sellers

Regular Economic Utility

Prepared by: Jerico D. Quinzon 4

Prepared by: Jerico D. Quinzon 5

Public Sector Private Sector International Sector

Technological Sector Sole Proprietorship Partnership

Corporation Limited Liability Company Limited Liability Partnership

Service Business Merchandising Business Manufacturing Business

Hybrid Business For-Profit Organizations Non-Profit Organizations

Prepared by: Jerico D. Quinzon 6

Public Private International

Prepared by: Jerico D. Quinzon 7

Service Merchandising Manufacturing

Prepared by: Jerico D. Quinzon 8

Hybrid For-Profit Non-Profit

Prepared by: Jerico D. Quinzon 9

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