CULTURAL, SOCIAL AND

POLITICAL INSTITUTION
ECONOMIC INSTITUTIONS
ECONOMIC ORGANIZATIONS

 Defined as the act of coordinating the other factors of production – land,

labor and capital.
 It is performed by the entrepreneur as the “captain of industry”.
 ASPECTS OF THE ECONOMIC SYSTEM
 PROPERTY
 It is socially acknowledge as right rather than as a material object. It involves the right of ownership which differs from
a simple possession over goods or commodities.
 ECONOMIC EXCHANGE
 The process by which an individuals and organizations give each other valuable goods and services in return for different
goods and services.
 DIVISION OF LABOR
 Refers to the distribution of work in reference to age, gender, skill or qualification.
 ASPECTS OF THE ECONOMIC SYSTEM
 Economic Socialization
 The process by which people learn the values and behaviour needed to fill positions in the economic community.
 Price
 Refers to the monetary value of goods and services.
 Law of Supply and Demand
 States that when demand is greater than supply, the price increases; and when supply is greater than demand, price
decreases.
 TYPES OF ECONOMIC ORGANIZATIONS
 SOLE PROPRIETORSHIP
 Known as a “one-man business”.
 PARTNERSHIP
 Type of economic organization where business is carried on by two or more men called partners.
 CORPORATION
 Is a legal entity that is separate and distinct from its owners.
 COOPERATIVE
 Is a business organization which is established for the purpose of providing services on a non-profit basis to its
shareholders or members who own and control it.
TYPES OF COOPERATIVES IN THE
PHILIPPINES
 CREDIT COOPERATIVE
 One that promotes and undertakes savings and lending services among its
members.
 CONSUMER’S COOPERATIVE
 One the primary purpose of which is to procure and distribute commodities to
members and non-members.
 PRODUCER’S COOPERATIVE
 One that undertakes a joint production whether agricultural or industrial
TYPES OF COOPERATIVES IN THE
PHILIPPINES
 MARKETING COOPERATIVE
 One which engages in the supply of production inputs to members and markets
their products.
 SERVICE COOPERATIVE
 One which engages in medical and dental care, hospitalization, transportation,
insurance, housing, labor, electric, light and power, communication, professional
and other services.
 MULTIPURPOSE COOPERATIVE
 One which combines two (2) or more of the business activities of these different
types of cooperatives.