TERMS TO REMEMBER – CHAPTER 3

1. Agriculture, Fishery and Forestry sector – reaps the fruits of natural resources like the soil,
water, and forests.
2. ASEAN – Association of Southeast Asian Nations (Brunei, Cambodia, Indonesia, Laos, Malaysia,
Philippines, Singapore, Thailand and Vietnam)
3. Business firm – which is the basic producing unit, delivers the goods and services to the
household for its consumption.
4. Business – is an undertaking by a person or a group of persons who are partners, or of
stockholders who own a juridical entity known as a corporation whose main objective is to earn
profit for the owners.
5. Competition – is an act or process of trying to get or win something over one’s rivals.
6. Cooperative – is an entity organized by people with similar needs to provide themselves with
goods o9r services or to jointly use available resources to improve their incomes.
7. Corporation - is a legal entity that is separate from its owners, the shareholders. No shareholder
is personally liable for the debts, obligations or acts of the corporation.
8. Distributors – are wholesalers or brokers who buy in big quantities from manufacturers, add
mark-up to their purchase price and sell to retailers.
9. Environmental analysis – refers to an evaluation of the possible or probable effects of external
forces and conditions on the survival and growth of the business.
10. Exports – are domestically produced goods sold to foreign countries.
11. Final goods – are goods that are ready for direct consumption and are then sold customers for
their use.
12. Financial Flow – refers to the flow of money among the households and the business firms.
13. Household – which is the basic consuming unit, makes use of goods and services which are
available in the economy.
14. Imports – refers to the goods purchased from a foreign country.
15. Industrial sector – processes raw materials from agriculture, fishery and forestry into intermediate
products which are further processed into final products.
16. Industry Analysis – studies the conditions in an industry at a particular time, including the
behavior of and relations between competitors, suppliers, and customers.
17. Industry – is an aggregation of the different businesses engaged in the same kind of undertaking.
18. Infrastructure – the basic facilities, services and installations needed for the functioning of a
community or a society (e.g. roads, transportation, communication, power)
19. Intermediate goods – are semi-processed goods which are not ready for final use by the
consumer, which have undergone some processing but need to go through additional processing
before they can be actually used by the consumer. These are supplied to final good firms for
conversion into goods in their finished stage.
20. Liberalization policies – policies allowing foreign investment and goods to freely enter the
country by removing trade restrictions (e.g. taxes)
21. Medium business – is one with total assets worth from P15,000,001 to P60,000,000. Large scale
business is one with total assets in excess of P60,000,000.
22. Micro business – is a business with total assets worth below P1,500,001.
23. Partnership – is a form of business organization in which two or more persons combine their
resources in a business with a view to making profit.
24. Physical Flow – refers to the flow of goods and resources among the households and the
business firms.
25. Policy – principle or body of principles to guide decisions and achieve rational outcomes.
26. Productivity/Efficiency – Maximum output with minimum input (e.g. labor, machine) measured as
output per unit of input.
27. Raw materials – are unprocessed goods like raw materials, logs, and wheat, they are materials
extracted from their sources and do not undergo any process of production.
28. Service Sector – produces the intangibles supporting and complementing production in the other
sectors as well as among its own industries.
29. Small business – is one with total assets worth from P1,500,001 to P15,000,000.
30. Sole Proprietorship – is a form of business organization that is owned by a single individual who
is singly responsible for running the business and is accountable for all debts and obligations
related to the business.
31. Suppliers – are a business’ source of raw materials, intermediate goods or final products and
services.
32. SWOT analysis – is a tool that lists the strengths, weaknesses, opportunities, and threats that
face the business.
33. Target market – refers to the group of customers the business aims to cater to.
34. Technology – the application of practical science to industry and commerce.
35. The Circular Flow of Economic Activity – is a neoclassical economic model depicting how
money and output flow through the economy.
36. Tourism – the business of providing tours and services to tourists.
37. Tourists – a person who travels for pleasure