Investment a product that people buy with the hope that they will be beneficial or will generate income

in the future

Appreciation refers to an increase over time in the valuation of an object.

LONG-TERM INVESTMENTS

these are long-term assets or company properties that they keep longer than one year

SHORT-TERM INVESTMENTS

investments acquired by a firm that can be easily converted into cash within one year.

The Philippine Stock Exchange

a place where traders buy and sell stocks for profit.

Exchange rate is the value of a currency for the purpose of conversion to another

Inflation is the general rise in prices that arises every year and the decrease in the money's buying
power.

Interest rate is the amount a lender charges for the utilization of assets expressed as a percentage of the
principal.

The rate of interest is usually noted on an annual basis referred to as the annual percentage rate (APR).

Interest rate does not take account of the inflation rate because of the Purchasing Power of Peso (PPP)
or the value of money to buy a product/service decreases.

Banks determine interest rates today by the interaction of the money market supply and demand for
funds

Nominal rate- Commonly known as fixed interest rate.

Effective interest rate = This is the interest rate received or charged on an investment, loan or other
financial transaction owing to the compounding result for a defined period of time.

Rent is the revenue arising from land ownership and other free gifts of nature.

Big capital investment - Renting a property might be less costly than purchasing a property; however,
rentals would also require a large capital investment because there are payment terms and conditions
that vary from property to property.

Location - Considering the location of your business is essential if you want to attract a good number of
tenants. Peace and order, which translate to safety and security of the business, is also a consideration in
choosing a location.

Population - Looking at a location's demographic is critical for businesses because it creates a target
market for people who are willing to rent. Understanding the characteristics of a particular population
helps individuals generate sound business decisions related to their renting activities.
Risk - Any form of risk, big or small, should be considered in deciding to proceed with a rental. In the
business setting, higher capital translates to higher risk because potential losses become greater should
the business fail.

Minimum wage is the minimum amount of compensation that an employer is required to pay its
workers for work performed within a particular time.

Minimum wages are intended to protect employees from unreasonably small wages.

Wage Rationalization Act (RA 6727) - States that there should be different minimum wage rates per
region for agricultural and non-agricultural workers.

Migration to Urban Areas - High minimum wage rates in urban areas can create an influx of job seekers
from neighboring cities who are seeking opportunities to have a higher paying job.

Taxes are compulsory charges by the government to fund its different operations. These are levied on
individuals, companies, and the goods people consume.

Capital Gains Tax - Tax levied on earnings that the purchaser gained from non-inventory asset

Documentary Stamp Tax - Tax on papers, instruments, loan agreements, and documentation showing the
approval, assignment, settlement, or change of a contract or right.

Donor’s Tax - Tax on a donation or gift and is imposed on the free transfer of property between two or
more persons living at the time of the transfer

Value-Added Tax - A sales tax levied on the consumption of the sale of goods, services, properties, and
imported goods

Income Tax - Tax on personal income. Usually levied to employees and entities and is based on
respective profit or income

Business

it is an entity or organization that is intended for commercial, industrial or any professional activities its
main objective is to earn profit for the owners”

Industry

it is a group of companies or businesses that carry on the same line of business activities or undertaking

Sole Proprietorship - Typically the smallest businesses, run and operated by a single person. No legal
distinction between the business and the owner. As such, the owner has unlimited liability.

Partnerships - Similar to a sole proprietorship, but is run by multiple owners. The business itself is its
own legal entity. The level of liability that owners have is dependent on the type of partnership

General partnerships mean that business owners have unlimited liability to the firm.

Limited partnerships mean that business owners are only liable up to the extent that they contributed.
Industrial Partners - contributes personal service to the partnership

Capitalist Partners - provides money or propert

General Partners - have unlimited liability

Capitalist Partners - liability only extends to their contributions

Silent Partners - does not actively participate in operations

Managing Partners - involved in day to day operations

Corporation - The largest of the business organizations. Has a large number of owners who consist of the
shareholders. They gain ownership through the purchase of the company’s stocks.