Finance 100
Chapter X : Overview of Business Finance
• In the olden days knowledge is acquired through apprenticeship. • Today, business ability is acquired through classroom instructions and study of textbooks.
What is business? • Business’ purpose – production and marketing of every possible article and service that will help human wants at the most convenient and reasonable manner at a profit. • Main purpose of businessman – make profit out of which to support himself and his dependants.
Categories of Business • Industrial Business – Manufacture of goods, the physical and chemical transformation of raw materials into finished goods and extraction of minerals. • Commercial Business – Distribution of goods: retailing and wholesale traders. • Servicing Business – Concerned with rendering services.
Why People go to business? • Presence of business opportunity. • Availability of idle funds. • Advancement of technology. • To raise standard of living. • Employment for others. • Opportunity from by-products. • Presence in various businesses. • Social and business prestige. • Challenge brought by competitors.
Succesful businessmen: • John Gokongwei ▪ Robinsons Galleria ▪ Asia Brewery ▪ Asia Pacific Airlines • Henry Sy ▪ SM Department Store ▪ Cebu Pacific • Lucio Tan ▪ Latondenna Distelleria Inc. ▪ Philippine Airlines ▪ University of the East
Factors Necessary for a Successful Business Venture • Enough Capital Resources • Efficient Management • Able to create demand • Effective advertisement
2 Important Functions of Business • Production • Marketing
• Funds – refer to anything that could be used in business which consists of money and credit instruments. • Credit money – credit instrument that is widely acceptable in payment for goods and services in the settlement of existing debts and obligations. • Mercantile Credit – credit obtained for
• In the olden days knowledge is acquired through apprenticeship. • Today, business ability is acquired through classroom instructions and study of textbooks.
What is business? • Business’ purpose – production and marketing of every possible article and service that will help human wants at the most convenient and reasonable manner at a profit. • Main purpose of businessman – make profit out of which to support himself and his dependants.
Categories of Business • Industrial Business – Manufacture of goods, the physical and chemical transformation of raw materials into finished goods and extraction of minerals. • Commercial Business – Distribution of goods: retailing and wholesale traders. • Servicing Business – Concerned with rendering services.
Why People go to business? • Presence of business opportunity. • Availability of idle funds. • Advancement of technology. • To raise standard of living. • Employment for others. • Opportunity from by-products. • Presence in various businesses. • Social and business prestige. • Challenge brought by competitors.
Succesful businessmen: • John Gokongwei ▪ Robinsons Galleria ▪ Asia Brewery ▪ Asia Pacific Airlines • Henry Sy ▪ SM Department Store ▪ Cebu Pacific • Lucio Tan ▪ Latondenna Distelleria Inc. ▪ Philippine Airlines ▪ University of the East
Factors Necessary for a Successful Business Venture • Enough Capital Resources • Efficient Management • Able to create demand • Effective advertisement
2 Important Functions of Business • Production • Marketing
• Funds – refer to anything that could be used in business which consists of money and credit instruments. • Credit money – credit instrument that is widely acceptable in payment for goods and services in the settlement of existing debts and obligations. • Mercantile Credit – credit obtained for