MATH11 ABM Applied Economics Q2 Module10 Viability and Impacts of Business On The Community
MATH11 ABM Applied Economics Q2 Module10 Viability and Impacts of Business On The Community
Applied Economics
Viability and Impacts of
Business on the Community
The module has one lesson, namely:
Lesson 1: Evaluate the Viability and Impacts of Business on the Community
PRE ASSESSMENT
Choose the letter of the best answer. Write the chosen letter on a separate sheet of paper.
1. The amount of money individuals earn from their daily economic activities,
be it employment, business or investments:
a. Income c. Wage
b. Salary d. All of the above
2. This is the goal of most enterprise which is to be environmentally sound and
socially responsible
a. Flexibility c. Sustainability
b. Profitability d. Viability
3. It is defined as the ability to survive which linked to financial performance.
a. Flexibility c. Stability
b. Durability d. Viability
4. This relates to changes in government influence means _______________.
a. Economic Change c. Environmental Change
b. Political Change d. Government
5. They are the key contributor to innovation and product development.
a. Entrepreneurs c. Importer
b. Exporter d. Supplier
6. This includes geographical location, the climate, weather and other factors
that affect industry.
a. Environmental Factor c. Government
b. Political Change d. Changes in Technology
7. A viable business has great effects to the community; which of the following
statement is not true?
a. It provides jobs to the community
b. It produces taxable income
c. It does not provide opportunities for the people in services such as
social welfare
d. It improves community life
8. The creation of new technology in terms of databases and electronic
communications allowed vast quantities of information to be shared and
quickly distributed enabled the company to reduce cost and improve service,
this is the effects on business in terms of:
a. Environmental Factor c. Government
b. Political Change d. Changes in Technology
9. Across the globe, businesses expect companies to maintain strong
_________________.
a. Ethical Standards c. Norms and Rules
b. Mode of Conduct d. Regulations
10. This factors affecting industry includes social relate to pattern of behavior,
tastes and lifestyles.
a. Environmental Factor c. Government
b. Economic Changes d. Social Environment
11. The following are major contributions of business and industry to society.
Which of the following statements is not true?
a. It provides jobs in the community
b. It produces taxable income to for the community
c. It does not helps in the improvement of community life
d. It does not support long term social development
12. Viability is defined as the ability to survive. In the business sense, that
ability to survive is not linked to financial performance and position.
a. Both statements are True.
b. Both statement are False.
c. The first statement is True; the second statement is False.
d. The first statement is False; the second statement is True
13. Refers to the type of jobs people perform by virtue of their skills, experiences
and choices.
a. Blue Collar c. Occupation
b. White Collar d. Profession
14. These are characteristics that define the quality of life in a society.
a. Government Factor c. Political Factors
b. Economic Factors d. Socioeconomic Factors
15. Business and industries are affected through regulations and policies set by
______________.
a. Consumer c. Supplier
b. Government d. Households
Lesson Evaluate the Viability and
1 Impacts of Business on the
Community
Business plays a huge role in the society. It not only takes up the most
amount of time in people lives but it also help create innovations and
make important technological advancements. It makes forward thinkers
and dreamers turn visions into reality. Making people lives easier.
Only when companies are profitable can they contribute effectively to
society by creating jobs and economic development. It cannot be assume
that companies adopt a responsible business conduct. However,
corporate social responsibility can contribute to the success of business
and betterment of society.
As you go through the lesson you will learn how business affects society.
In turn, evaluate business viability and its effect on the community.
This part of the module is the lesson proper. Now, I want you to be ready and we
will now begin the lesson:
Income
Income is the amount of money individuals earn from their daily economic
activities, be it employment, business or investments. The availability of disposable
income (net income after tax) influences spending habits. Your customers are likely
to purchase expensive or luxurious items whenever there is an increase in their
disposable incomes. However, when income is scarce, customers tend to restrict
their spending to essential items.
Education
Education equips members of the society with the skills and knowledge they
require to be employed in different jobs and professions. The standards of
education in your society depend on the availability and accessibility of educational
amenities. A society that has a well– educated population flourishes because
individuals are employable in well–paying jobs. Education further determines the
availability of skilled workforce when seeking employees for your small business.
Occupation
Occupation refers to the type of jobs people perform by virtue of their skills,
experiences or choices. You may be self–e mployed or work as an employee of an
individual or organizational entity. The different types of occupation dictate the
income earned by people in the society. High salaried individuals are normally
associated with skilled occupations such as, doctors, engineers, lawyers and
accountants. Self – employed individuals owning successful businesses also
generate huge amounts of income. Unskilled occupations such as menial labor do
not pay much. Therefore, the ability of customers to afford the different products
you offer in your business depends on types of their occupation.
Aside from the different factors mentioned above here under are other factors
affecting businesses and industry.
A viable business has great effects to the community. Some of this are:
1. It provides community jobs in the business sector;
2. It produces taxable income for the community from both the
business establishment and the workers,
3. Government continuously makes improvement in the community
infrastructures such as bridges, roads, sewers, water or electric to
entice other business to invest in the community;
4. It helps in the establishment of better schools, more business and
even more jobs for its citizens.
5. It leads to improved business services to the community;
6. It improves community life.
As a final note to help guide the proponents of a business proposal in choosing what type
of industry to enter, the use of the Herfindahl – Hirschman Index – HHI would be useful
since it helps the proponent identify markets are highly competitive and saturated and
those markets with high market concentration.
The HHI number can range from close to zero to 10,000. The HHI is expressed as
HHI = MS² of Firm 1 + MS² of Firm 2 + MS² of Firm 3….. + MS² of Firm n.
The closer a market is to being a monopoly, the higher the market’s concentration
(and the lower its competition). If, for example, there was only one firm in an industry,
that firm would have 100% market share, and the HHI would equal 10,000 (100²), nearly
0% market share, and the HHI would be close to zero, indicating nearly perfect
competition. This means the market is highly competitive and is characterized by the
existence of numerous competitors.
Results of the HHI would indicate the following:
The business proponent should therefore seek to enter an industry where HHI is greater
than 1800 since the market is not characterized by too many firms. (Investopedia, LLC
2015)
Activity 1: Matching Type
Directions: Choose the letter of the correct answer from the list of words in
the box and write it in blank space provided.
_______1. Changes in interest rates, wage rate and inflation rates are example
of _____________ changes.
_______2. Smart phone is an example of _________________.
_______3. Business is _________________ when it is economically viable,
environmentally sound and socially responsible.
_______4. Business contributes to government by paying __________.
_______5. Business ______________ are innovators.
_______6. These influence the behaviours, attitudes, trends, tastes and
lifestyles of individuals.
_______7. It equips members of society with knowledge, skills to be
employed in different jobs.
_______8. It is defined as the ability to survive which linked to financial position.
_______9. The amount of money individuals earn from their work, business
or investments
_______10. Commonly accepted measure of market concentration
1. Education-
2. Income-
3. Occupation-
PERFORMANCE TASK
Since this is you last module on Applied Economics, you are give a task to
apply what you have learned. Please read the instructions carefully.
Choose the letter of the best answer. Write the chosen letter on a separate sheet of
paper.
1. Many climatic changes can alter the trade of industries and how customers
react towards a certain product and this is related to ________________________.
a. Environmental Factor c. Government
b. Political Change d. Changes in Technology
2. A viable business has great effects to the community; which of the following
statements is not true?
a. It provides jobs to the community
b. It produces taxable income
c. It does provide opportunities for the people in services such as social
welfare
d. It does not support government by paying taxes.
3. Technological advancements enabled business to lessen cost and improve
business systems and this is an example of ____________
a. Environmental Factor c. Government
b. Political Change d. Changes in Technology
4. Businesses all over the world are expected to maintain strong _________________.
a. Ethical Standards c. Norms and Rules
b. Mode of Conduct d. Regulations
5. The amount of money a person received from their work, business or
investments:
a. Income c. Wage
b. Salary d. All of the above
6. This is the goal of the business, advocate of positive change in the society.
a. Flexibility c. Sustainability
b. Profitability d. Viability
7. It is defined as the ability of the business to survive and stand pressure which
linked to financial position.
a. Flexibility c. Stability
b. Durability d. Viability
8. This relates to changes in government influence means _______________.
a. Economic Change c. Environmental Change
b. Political Change d. Government
9. They are the proponent of innovation and product development.
a. Entrepreneurs c. Importer
b. Exporter d. Supplier
10. This factors affecting industry includes social factors such as pattern of
behavior, tastes and lifestyles.
a. Environmental Factor c. Government
b. Economic Changes d. Social Environment
11. The following are major contributions of business and industry to society.
Which of the following statements is not true?
a. It provides jobs in the community
b. It evades payment of taxes for the community
c. It does not helps in the improvement of community life
d. It does support long term social development
12. Viability is defined as the ability to survive. In the business sense, that ability
to survive is linked to financial performance and position.
a. Both statements are True.
b. Both statement are False.
c. The first statement is True; the second statement is False.
d. The first statement is True; the second statement is False
13. Refers to a regular activity perform by virtue of their skills, experiences and
choices.
a. Blue Collar c. Occupation
b. White Collar d. Profession
14. These are characteristics that define the quality of life in a society.
a. Government Factor c. Political Factors
b. Economic Factors d. Socioeconomic Factors
15. Business and industries should be flexible enough to withstand the changing
rules and policies regulations and policies set by the ______________.
a. Consumer c. Supplier
b. Government d. Households
Assessment: What's More What I Know
1. A 1. E 1. A
2. C
2. G
2. D
3. J
3. D 4. H 3.D
4. B
5. I
4.A
6. F
5. A 7. D 5.A
6. A
8. C
6.C
9. B
7. C 10. A 7.D
8. D 8.B
9. A 9.A
10.D 10.D
11. D 11.B
12. C 12.A
13. C 13.C
14. D 14.D
15. B 15.B
References:
Dinio and Villasis 2017: Applied Economics. Rex Bookstore, First
Edition.
Leano, Roman D. 2016: Applied Economics for Senior High School.
Mindshapers Co., Inc.
https://en.wikipedia.org/wiki/Asin_(band)