PRINCIPLES OF

MANAGEMENT

AMABELLE BERNADETTE A. ALCARAZ

INSTRUCTOR
HISTORY AND BACKGROUND
 1570’s – entrepreneurial drive was formalized with
Spanish conquistadores led by Legazpi, according
to Fr. Horacio de la Costa, S. J.
 Chinese were trading with Moslem and natives but
not in an organized manner.
 Manila was turned into a powerful base for
linkages with Cathay in China and Japan.
HISTORY AND BACKGROUND
 Spices and textiles especially silk was in demand
then, that’s why every year bulk of silk were sold
competitively in the open market that is controlled
by Spanish.
 A breed of merchants grew up in Manila with all
tricks and techniques.
 This continued up to 200 years
Spanish Regime
 Gov. Jose Basco y Vargas – founded the Economic
Society in 1781.
 Indigo, cotton, pepper, silk and cinnamon are well
known during this era.
 Teaching and training of people in weaving and
dyeing .
 Tobacco monopoly was established in 1780 and
lasted until 1782.
 Galleon Trade was abolished in 1814.
AMERICAN REGIME
 Opened new economic opportunities in the
Philippines.
 They established the Bureau of Agriculture in
1902 and helped farmers with experimental model
farms.
 The Bureau of Education started gardening/science
classes.
 Agricultural production was expanded in terms of
hectarage planted for palay, abaca, corn and
coconut.
50’s and 60’s
 Government is focused o import substitution as the
way towards industrialization.
 During 1960’s, we were appeared to be more
economically advanced than Singapore,
Indonesia, Thailand and South Korea.
 Middle class are slowly growing due to an open
education system.
70’s

The Philippine economy declined drastically.

Profile of Philippine Management
FORM OF OWNERSHIP
> Single Proprietorship exists when the entire business is
owned by one person;
> Partnership exists when two or more persons have come
together to set up a business contributing money and other
items of value;
> Corporation exist when the legal basis for the
corporations existence is embodied in a set of articles of
incorporation duly registered with the Securities and Exchange
Commission.
SOLE PROPRIETORSHIP
 One person is a sole owner of business.
 Unlimited personal liability for business debts.
 Termination of business upon death of the owner.
 Relative freedom from government control.
 No income tax on business, only on owner.
PARTNERSHIP
 Two or more persons are owners of the business
 Partners rights and duties are defined by partnership
agreement.
 At least one partner must have unlimited liability for the
debts of the firm.
 One of the partners can bind others when acting within scope
of the business.
 No income tax on partnership itself.
CORPORATION
 Stockholders are owners who are distinct and separate from
the corporation.
 There are more opportunities to raise capital.
 Continuity is unaffected by the death or transfer of stock
shares.
 Subject to more government control than other form of
ownership.
 There is income tax on corporate profits and on dividends
after they are paid to stockholders.
COOPERATIVE
All members have equal voting power
irrespective of the amount of their
Click to add text
individual capital contribution.
Origins in terms of Socio-
economic strata
1. “Upper”
2. “Upper Middle”
3. “Lower Middle”
4. “Lower”
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Entrepreneur
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Entrepreneur
 one who organizes, manages, and assumes
the risks of a business or enterprise.

 ENTREPRENEURSHIP - is the ability and

readiness to develop, organize and run
a business enterprise, along with any of its
uncertainties in order to make a profit. The
most prominent example of entrepreneurship
is the starting of new businesses.
Role of Entrepreneur
Promotes the establishment of a new venture;
Raises necessary funds;
Assembles the other factor of production
Identifies the market; and
Sets the business going.

-by Eduardo Taylor

 Registration of New
Enterprise
3. Registration with
the Bureau of Internal
Revenue

1. Securing a 4. Registration with

Mayor’s Permit Securities and
2. Registration with Exchange
the Department of Commission
Trade and Industry
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Any Questions?