1. The Nature and Aims of Business
BUSINESS FINANCE
The Nature and Aims of Business
By: Mrs. Belen Apostol

2. The Philippine Economy
Business success has always been associated with economic growth. Adequate capital is a prerequisite to the existence of business firms.
Business success is highly dependent on the available capital.
Proper management is a key ingredient in the survival and growth of business.
The major reason for business failure is the businessman’s lack of sufficient skills in managing finance.

3. The Role of Business
The growth of economy lies in the ability of private individuals to achieve economic objectives
The quest for profit is usually undertaken by engagement in business activities.
Business firms and government are oriented towards the provision of goods and services in the society.

4. The Role of Business
The standard of living is raised or lowered depending to a large extent on the performance of business firms.
Business is largely responsible for bringing into the market a wide array of products and services which were not previously available.

5. The Philippine Economy
Concerns affecting the Philippine Economic Development
Low Productivity in the workplace
Graft and corruption in the government
The declining value of peso
Unfavorable balance of trade

6. Business Defined
Business is any lawful economic activity concerned with the production and/ or distribution of goods or services for profit.

7. Kinds of Business
Business may be classified as to the nature of principal activity performed as follows:
Commerce
Industry
Services

8. Commerce
are business firms engaged in buying and selling of goods and services.

9. Industry
Are those which are mainly concerned with production. Consumer’s goods – are goods produced intended for ultimate consumption Producer’s goods – goods intended for business

10. Industry
Industry may be classified as: Genetic industries – business involved in agriculture, forestry, and fish culture. Extractive industries – business involved in the extraction of goods from natural resources which include mining, lumbering, hunting and fishing.

11. Industry
Manufacturing industries – are those which convert raw materials into finished products. Construction industries – consist of firms engaged in building infrastructures like airports, seaports, dams and highways.

12. Services A service business is one which sells services to buyers.
Service may be classified as:
Recreation – movie houses, television and radio stations, theaters
Personal – restaurants, barber shops, hotels
Finance – banks, insurance, credit union,

13. OBJECTIVES OF BUSINESS
A business firm is established primarily for profit.
Short term and long term profits are sacrificed in order to attain goals such as:
Political influence
Family control of the business
Community involvement

14. OBJECTIVES OF BUSINESS
To survive and grow, business firms must attain the following multiple objectives:
The provision of products and services to the community;
The satisfaction of personal objectives like:
Profits for owners
Adequate salaries and compensation for executives and employees
Psychic income for all, including pride in work, security, recognition, and acceptance

15. OBJECTIVES OF BUSINESS
3. Protection and enhancement of the human and physical resources of society; and 4. Economy and effectiveness of operation