Business Ethics

Sole Proprietorship

A business owned and operated by one person.

Partnership

A business owned by two or more people who share profits and responsibilities.

General Partnership

All partners share management duties and liabilities.

Limited Partnership

Partners have limited liability based only on their investment.

Joint Venture

A temporary partnership for a specific project or period.

Corporation

A legal business entity separate from its owners.

C-Corporation

A corporation legally separate and taxed independently from its owners.

S-Corporation

A corporation taxed like a partnership, avoiding double taxation.

Limited Liability Company (LLC)

A business structure that protects owners’ personal assets from liabilities.

Cooperative

A business owned and managed by its members for their mutual benefit.

Producer Cooperative

Members produce and market products together.

Worker Cooperative

Owned and operated by employees.

Consumer Cooperative

Owned by customers who buy goods/services from it.

Credit Union

A cooperative providing savings and loan services to members.

Retail/Purchasing Cooperative

Members buy goods in bulk to get discounts.

Housing Cooperative

Members collectively own housing units.

Conglomerate

A company that owns several unrelated businesses.

Franchise

A business model where a company allows another to sell its product or service.

Government Departments

Government-run organizations providing public services.

Local & Municipal Authorities

Local government bodies run by elected officials.

Multinational Company

A corporation operating in multiple countries.

Nationalized Industries

Industries owned and controlled by the government.

Service Business

A business that provides services instead of goods.

Merchandising Business

Buys goods and sells them without changing their form.

Manufacturing Business

Converts raw materials into finished products.

Business

An organization that provides goods and services to satisfy needs and wants.

Economy

A system that manages and distributes resources in a society.

Third World Countries

Developing nations with lower income and resources.

Developing Economies

Countries with average income and literacy lower than developed nations.

Barter

Trading goods or services without using money.

Firms

Producers that create goods and services.

Government (in economy)

Sets laws, provides services, and regulates businesses and households.

Households

Consumers who buy goods and services from firms.

Money

Anything accepted as payment for goods and services.

Acceptable

Widely approved for payment.

Convertible

Can be easily exchanged for goods/services.

Divisible

Can be broken into smaller units (₱1, ₱5, ₱10, etc.).

Durable

Long-lasting and not easily damaged.

Homogeneous

Uniform in appearance (all ₱100 bills look the same).

Scarce

Limited in supply to maintain value.

Portable

Easy to carry and transfer.

Measure of Value

Shows the worth or price of goods.

Medium of Exchange

Used for buying and selling.

Standard for Deferred Payment

Used to pay debts over time.

Store of Wealth

Can be saved for future use.

Near Money

Assets easily convertible to cash.

Bank Draft

A guaranteed check issued by a bank.

Bill of Exchange

A written order used in international trade to pay for goods on credit.

Cheque

A written order instructing the bank to pay a specific amount.

Credit/Debit Card

Cards allowing electronic payments without cash.

E-commerce

Buying and selling goods online.

Electronic Transfer

Moving funds electronically instead of using paper methods.

Internet Banking

Bank transactions done through the internet.

Money Order

A prepaid document used for payments locally or overseas.

Tele-Banking

Banking services done through a telephone.

Stockholder / Shareholder

The owner of a corporation who holds shares of stock.

Department of Trade and Industry (DTI)

The government agency where sole proprietorship businesses are registered.

Securities and Exchange Commission (SEC)

The agency where partnerships and corporations are registered.

Cooperative Development Authority (CDA)

The agency where cooperatives are registered.

Articles of Incorporation

A set of formal documents submitted to the SEC to legally establish a corporation.