Applied Economics

Viability and Impacts of

Business on the Community
 What I Need to Know
This module was designed for you to be able to learn how to evaluate the viability
The lessons are arranged to follow the standard sequence of the course. But the order in
which you read them can be changed to correspond with the textbook you are now using.
The module has one lesson, namely:
Lesson 1: Evaluate the Viability and Impacts of Business on the Community
After going through this module, you are expected to:
 identify and explain the effects of the various socio-economic factors affecting business and
industry and
 identify and evaluate the viability and impacts of business in the community.

What I Know
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.

What’s In

In the previous lesson, you have learned about how business and industry
affects various socioeconomic factors. As you start a new lesson about evaluate the
viability of the business and impacts of business in the community, I want you to do an
activity. Complete the Concept Map below by writing the words Viable Business and
write the qualities of a viable business
 What’s New
Now, to understand the lesson about other socio economic factors affecting
business and industry and lastly, business viability and its effect in the
community, let us read the lyrics of the famous song of Asin, legendary Pinoy Rock
Band in 1970 entitled “ Masdan Mo ang Kapaligiran “.

Wala ka bang napapansin

Sa iyong mga kapaligiran?
Kay dumi na ng hangin
Pati na ang mga ilog natin
Hindi na masama ang pag-unlad
At malayu-layo na rin ang ating narating
Ngunit masdan mo ang tubig sa dagat
Dati'y kulay asul ngayo'y naging itim
Ang mga duming ating ikinalat sa hangin
Sa langit huwag na nating paabutin
Upang kung tayo'y pumanaw man
Sariwang hangin sa langit natin matitikman

Activity. Think Beyond. Answer the following questions.

1. What is the message of the song?
________________________________________________________________________
________________________________________________________________________
2. If you are the owner of a business industry, what can you recommend
about the environmental problem because of industry?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
 What is It
This part of the module is the lesson proper. Now, I want you to be ready and we
will now begin the lesson:
 What’s More
To gain better understanding about the lesson, l want you to answer the activities
below:
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.
 a. HHI f. Socioeconomic Factors
b. Income g. Technology
c. Viability h. Taxes
d. Education i. Entrepreneurs
e. Economic j. Sustainable

_______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

Activity 2. Essay Questions.(15 pts/ 5 points each)

Rubrics: (Focus-3 pts; organization-2pts.)
Explain the effects of business and industry on the following socioeconomic
factors?
1. Education-

2. Income-

3. Occupation-
 What I Have Learned
Now, after discussing the lesson. I want you to answer the make a Reflection Paper
to test your in depth understanding about the lesson.
Rubric: 12 pts. Reflective Thinking (4-1pt.);Analysis (4-1 pt.); Making Connections (4-1pt.)

What I Can Do
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.
APPLICATION. Research on business opportunities. Look for a business where the
industry is not yet saturated with so many firms. You can apply the Herfindahl –
Hirschman Index discussed in the chapter. Once you have identified a business,
prepare a simple Business Proposal.
The BUSINESS PROPOSAL should include the following:
a. Introduction/Company background
b. Vision Statements
c. A description of the good or service to be offered;
d. Target market of your product
e. Proposed location and reason for the choice of this location;
f. Long – term objectives of the business;
g. Estimated capital requirements;
h. Sources of the capital;
i. Form of business organization: Sole proprietorship, Partnership, or
Corporation
j. Suggested pricing for the product or service;
k. Mode of promotion or advertising used;
l. Technical requirements: Machines, Building, Tools needed; and
 m. Socio economic Impact: Positive Effects of the Project and Negative Effects of
the Project.

RUBRIC FOR SCORING

Excellent- Very Good Good Poor
5 4-3 2 1-0
Introductory Elements
Vision
Statements/Objectives
Business Description
Products/Services
Marketing
Industry Analysis
Technical
Requirement
Socio Economic
Impact
Writing Skills

Assessment
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
 Additional Activities
You are now on the last part of the module. Congratulations! You only have
one task left in finishing the module: enrichment activity. You can start now!
COMMUNITY ICONS
Directions. Choose an entrepreneur who is well known for his/her advocacies
and write a report in a short bond paper. Below are guide questions for your
reference.
GUIDE QUESTIONS
1. Tell me about yourself?
2. How did the idea of your business came about?
3. How do build a successful business?
4. What is your advocacy? Why is this important?
5. What do you consider your most noteworthy accomplishments?
RUBRIC 20 pts
Excellent (5) Very Good (4-3) Good (2) Poor(1-0)
Completeness
Knowledge
Analysis
Writing Skill
 Answer Key

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)