entrepreneurship

Man (People)

The workers or employees who do the tasks and run the business. Example: Manager, staff, laborers.

Machine

The tools, equipment, or technology used to produce goods or services. Example: Computers, factory machines.

Material

The raw items or supplies needed to make the product. Example: Ingredients, wood, cloth.

Method

The process or way of doing the work efficiently and correctly. Example: Production steps, quality control, procedures.

Product

What the business sells; goods or services offered to meet customer needs. Example: Phone, haircut, food.

Price

The amount customers pay for the product or service. Example: Discounts, pricing strategy.

Place

Where and how the product is distributed or sold. ➡Example: Stores, online shops, delivery.

Promotion

How you communicate or advertise to attract customers

People

Everyone involved in delivering the product or service. Example: Employees, customer service

Process

The steps or systems used to deliver the product/service efficiently. Example: Order process, service method

Physical Evidence

Tangible proof that a service or product exists. Example: Receipts, packaging, store layout, website design.

Balance Sheet

A financial statement that shows what a business owns (assets) and owes (liabilities), and the owner’s equity (capital) at a specific time. Formula: Assets = Liabilities + Capital (Equity) Elements of Balance Sheet: Assets – What the business owns Liabilities – What the business owes Capital/Equity – Owner’s share or investment –

Income Statement

A report that shows the business’s profit or loss over a period of time. Formula: Income (Net Profit) = Revenue – Expenses Elements of Income Statement: Revenue – Money earned from sales or services Expenses – Costs of running the business Net Income (or Loss) – Profit after deducting expenses

Skimming

Setting a high price at first when a new product is launched, then lowering it later as competition increases. Goal: Maximize profit from early buyers.

Tangible

Something you can touch or see; has physical form. Example: Phone, chair, clothes.

Intangible

• Something you cannot touch or see, but still has value. Example: Service, brand reputation. --- Product vs. Service Product (Definition): –
  

•  A tangible item made to satisfy a need or want. Example: Laptop, food, shoes. Service (Definition): –
  

•  An intangible activity or benefit offered to satisfy a need or want. Example: Haircut, delivery, education

Revenue

Money earned from selling goods or services. Example: Sales from your product.

Asset

Anything the business owns that has value. Example: Cash, equipment, buildings.

Expense

Costs spent to run the business. Example: Rent, salaries, electricity.  

Liabilities

What the business owes to others. Example: Loans, accounts payable

Capital / Equity

Owner’s investment or share in the business after liabilities. Formula: Assets – Liabilities = Equity

Variable Cost

Changes with the level of production. Example: Materials, packaging.

Fixed Cost

Stays the same even if production changes. Example: Rent, insurance.

Operation

(in Income Statement) – Business activities that generate profit (main transactions). Example: Sales, cost of goods, operating expenses.

Production Department

The production department is responsible for creating the products or services offered by the business. Marketing Department The marketing department promotes the business and attracts customers to buy products or services.

Finance Department

The finance department manages the company’s money, ensures proper budgeting, and monitors financial performance.

Human Resource Management (HRM

Department The HRM department manages employees and ensures a productive and healthy work environment. Duties and Responsibilities:

Gross Profit

The money left after subtracting the Cost of Goods Sold (COGS) from Sales (Revenue). Formula: Gross Profit = Revenue – Cost of Goods Sold (COGS) Example: If sales = ₱10,000 and COGS = ₱6,000 → Gross Profit = ₱4,000

Cost of Goods Sold (COGS

The total cost of producing or buying the goods sold. Example: Raw materials, labor, and shipping costs

Net Profit (or Net Income

The final profit after all expenses (rent, salaries, tax, etc.) are deducted. Formula: Net Profit = Gross Profit

Operating Expenses

Costs of running the business daily that are not part of production. Example: Rent, salaries, utilities

Profit Margin

The percentage of profit from total sales. Formula: Profit Margin = (Net Profit ÷ Revenue) × 100